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string | page_number
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q_Ra109
|
What is the Operating Profit Margin for Honeywell International Inc. for Q1 2024?
|
The Operating Profit Margin for Honeywell International Inc. for the three months ended March 31, 2024, is calculated as follows:
Operating Profit Margin = (Operating Profit / Net Sales) * 100
Operating Profit = Income before taxes + Interest and other financial charges - Other (income) expense
Operating Profit = $1,871 million + $220 million - $231 million = $1,860 million
Operating Profit Margin = (1,860 / 9,105) * 100 = 20.42%
|
Ratio
|
3
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
|
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
|
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
|
q_Ra110
|
Could you provide the EBITDA Margin for Honeywell International Inc. for the three-month period ending March 31, 2024?
|
The EBITDA Margin for Honeywell International Inc. for the three months ended March 31, 2024, is calculated as follows:
EBITDA Margin = (EBITDA / Net Sales) * 100
EBITDA = Operating Profit + Depreciation + Amortization
Operating Profit = $1,860 million
Depreciation = $166 million
Amortization = $125 million
EBITDA = $1,860 million + $166 million + $125 million = $2,151 million
EBITDA Margin = (2,151 / 9,105) * 100 = 23.62%
|
Ratio
|
3, 6
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 6:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
| | | | | | | | |
|---:|:----------------------------------------------------------------------------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | |
| 2 | | 2024 | | 2023 | | | |
| 3 | | (Dollars in millions) | | | | | |
| 4 | Cash flows from operating activities | | | | | | |
| 5 | Net income | $ | 1,475 | | | $ | 1,408 |
| 6 | Less: Net income attributable to noncontrolling interest | 12 | | | 14 | | |
| 7 | Net income attributable to Honeywell | 1,463 | | | 1,394 | | |
| 8 | Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities | | | | | | |
| 9 | Depreciation | 166 | | | 161 | | |
| 10 | Amortization | 125 | | | 122 | | |
| 12 | Repositioning and other charges | 93 | | | 141 | | |
| 13 | Net payments for repositioning and other charges | (124) | | | (41) | | |
| 14 | NARCO Buyout payment | - | | | (1,325) | | |
| 15 | Pension and other postretirement income | (151) | | | (136) | | |
| 16 | Pension and other postretirement benefit payments | (8) | | | (15) | | |
| 17 | Stock compensation expense | 53 | | | 59 | | |
| 18 | Deferred income taxes | 3 | | | 225 | | |
| 20 | Other | (163) | | | (350) | | |
| 21 | Changes in assets and liabilities, net of the effects of acquisitions and divestitures | | | | | | |
| 22 | Accounts receivable | 53 | | | (422) | | |
| 23 | Inventories | (140) | | | (238) | | |
| 24 | Other current assets | 64 | | | 110 | | |
| 25 | Accounts payable | (381) | | | 114 | | |
| 26 | Accrued liabilities | (605) | | | (583) | | |
| 27 | Net cash provided by (used for) operating activities | 448 | | | (784) | | |
| 28 | Cash flows from investing activities | | | | | | |
| 29 | Capital expenditures | (233) | | | (193) | | |
| 30 | Proceeds from disposals of property, plant and equipment | - | | | 11 | | |
| 31 | Increase in investments | (238) | | | (226) | | |
| 32 | Decrease in investments | 155 | | | 386 | | |
| 34 | Receipts (payments) from settlements of derivative contracts | 43 | | | (7) | | |
| 37 | Net cash used for investing activities | (273) | | | (29) | | |
| 38 | Cash flows from financing activities | | | | | | |
| 39 | Proceeds from issuance of commercial paper and other short-term borrowings | 2,223 | | | 4,105 | | |
| 40 | Payments of commercial paper and other short-term borrowings | (2,470) | | | (3,294) | | |
| 41 | Proceeds from issuance of common stock | 144 | | | 37 | | |
| 42 | Proceeds from issuance of long-term debt | 5,710 | | | - | | |
| 43 | Payments of long-term debt | (573) | | | (1,363) | | |
| 44 | Repurchases of common stock | (671) | | | (699) | | |
| 45 | Cash dividends paid | (703) | | | (725) | | |
| 46 | Other | 36 | | | (34) | | |
| 47 | Net cash provided by (used for) financing activities | 3,696 | | | (1,973) | | |
| 48 | Effect of foreign exchange rate changes on cash and cash equivalents | (40) | | | 28 | | |
| 49 | Net increase (decrease) in cash and cash equivalents | 3,831 | | | (2,758) | | |
| 50 | Cash and cash equivalents at beginning of period | 7,925 | | | 9,627 | | |
| 51 | Cash and cash equivalents at end of period | $ | 11,756 | | | $ | 6,869 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
|
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
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TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
| | | | | | | | |
|---:|:----------------------------------------------------------------------------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | |
| 2 | | 2024 | | 2023 | | | |
| 3 | | (Dollars in millions) | | | | | |
| 4 | Cash flows from operating activities | | | | | | |
| 5 | Net income | $ | 1,475 | | | $ | 1,408 |
| 6 | Less: Net income attributable to noncontrolling interest | 12 | | | 14 | | |
| 7 | Net income attributable to Honeywell | 1,463 | | | 1,394 | | |
| 8 | Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities | | | | | | |
| 9 | Depreciation | 166 | | | 161 | | |
| 10 | Amortization | 125 | | | 122 | | |
| 12 | Repositioning and other charges | 93 | | | 141 | | |
| 13 | Net payments for repositioning and other charges | (124) | | | (41) | | |
| 14 | NARCO Buyout payment | - | | | (1,325) | | |
| 15 | Pension and other postretirement income | (151) | | | (136) | | |
| 16 | Pension and other postretirement benefit payments | (8) | | | (15) | | |
| 17 | Stock compensation expense | 53 | | | 59 | | |
| 18 | Deferred income taxes | 3 | | | 225 | | |
| 20 | Other | (163) | | | (350) | | |
| 21 | Changes in assets and liabilities, net of the effects of acquisitions and divestitures | | | | | | |
| 22 | Accounts receivable | 53 | | | (422) | | |
| 23 | Inventories | (140) | | | (238) | | |
| 24 | Other current assets | 64 | | | 110 | | |
| 25 | Accounts payable | (381) | | | 114 | | |
| 26 | Accrued liabilities | (605) | | | (583) | | |
| 27 | Net cash provided by (used for) operating activities | 448 | | | (784) | | |
| 28 | Cash flows from investing activities | | | | | | |
| 29 | Capital expenditures | (233) | | | (193) | | |
| 30 | Proceeds from disposals of property, plant and equipment | - | | | 11 | | |
| 31 | Increase in investments | (238) | | | (226) | | |
| 32 | Decrease in investments | 155 | | | 386 | | |
| 34 | Receipts (payments) from settlements of derivative contracts | 43 | | | (7) | | |
| 37 | Net cash used for investing activities | (273) | | | (29) | | |
| 38 | Cash flows from financing activities | | | | | | |
| 39 | Proceeds from issuance of commercial paper and other short-term borrowings | 2,223 | | | 4,105 | | |
| 40 | Payments of commercial paper and other short-term borrowings | (2,470) | | | (3,294) | | |
| 41 | Proceeds from issuance of common stock | 144 | | | 37 | | |
| 42 | Proceeds from issuance of long-term debt | 5,710 | | | - | | |
| 43 | Payments of long-term debt | (573) | | | (1,363) | | |
| 44 | Repurchases of common stock | (671) | | | (699) | | |
| 45 | Cash dividends paid | (703) | | | (725) | | |
| 46 | Other | 36 | | | (34) | | |
| 47 | Net cash provided by (used for) financing activities | 3,696 | | | (1,973) | | |
| 48 | Effect of foreign exchange rate changes on cash and cash equivalents | (40) | | | 28 | | |
| 49 | Net increase (decrease) in cash and cash equivalents | 3,831 | | | (2,758) | | |
| 50 | Cash and cash equivalents at beginning of period | 7,925 | | | 9,627 | | |
| 51 | Cash and cash equivalents at end of period | $ | 11,756 | | | $ | 6,869 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
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HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 6:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">Cash flows from operating activities</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,475 </td><td></td><td colspan="3"></td><td>$</td><td>1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="2">1,463 </td><td></td><td colspan="3"></td><td colspan="2">1,394 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation</td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">161 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">122 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repositioning and other charges</td><td colspan="2">93 </td><td></td><td colspan="3"></td><td colspan="2">141 </td><td></td></tr><tr><td colspan="3">Net payments for repositioning and other charges</td><td colspan="2">(124)</td><td></td><td colspan="3"></td><td colspan="2">(41)</td><td></td></tr><tr><td colspan="3">NARCO Buyout payment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,325)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement income</td><td colspan="2">(151)</td><td></td><td colspan="3"></td><td colspan="2">(136)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit payments</td><td colspan="2">(8)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td></tr><tr><td colspan="3">Stock compensation expense</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">59 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">225 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other</td><td colspan="2">(163)</td><td></td><td colspan="3"></td><td colspan="2">(350)</td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities, net of the effects of acquisitions and divestitures</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(422)</td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">(140)</td><td></td><td colspan="3"></td><td colspan="2">(238)</td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">110 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(381)</td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">(605)</td><td></td><td colspan="3"></td><td colspan="2">(583)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) operating activities</td><td colspan="2">448 </td><td></td><td colspan="3"></td><td colspan="2">(784)</td><td></td></tr><tr><td colspan="3">Cash flows from investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital expenditures</td><td colspan="2">(233)</td><td></td><td colspan="3"></td><td colspan="2">(193)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of property, plant and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Increase in investments</td><td colspan="2">(238)</td><td></td><td colspan="3"></td><td colspan="2">(226)</td><td></td></tr><tr><td colspan="3">Decrease in investments</td><td colspan="2">155 </td><td></td><td colspan="3"></td><td colspan="2">386 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Receipts (payments) from settlements of derivative contracts</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">(7)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used for investing activities</td><td colspan="2">(273)</td><td></td><td colspan="3"></td><td colspan="2">(29)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of commercial paper and other short-term borrowings</td><td colspan="2">2,223 </td><td></td><td colspan="3"></td><td colspan="2">4,105 </td><td></td></tr><tr><td colspan="3">Payments of commercial paper and other short-term borrowings</td><td colspan="2">(2,470)</td><td></td><td colspan="3"></td><td colspan="2">(3,294)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">144 </td><td></td><td colspan="3"></td><td colspan="2">37 </td><td></td></tr><tr><td colspan="3">Proceeds from issuance of long-term debt</td><td colspan="2">5,710 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="2">(573)</td><td></td><td colspan="3"></td><td colspan="2">(1,363)</td><td></td></tr><tr><td colspan="3">Repurchases of common stock</td><td colspan="2">(671)</td><td></td><td colspan="3"></td><td colspan="2">(699)</td><td></td></tr><tr><td colspan="3">Cash dividends paid</td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(725)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">36 </td><td></td><td colspan="3"></td><td colspan="2">(34)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">3,696 </td><td></td><td colspan="3"></td><td colspan="2">(1,973)</td><td></td></tr><tr><td colspan="3">Effect of foreign exchange rate changes on cash and cash equivalents</td><td colspan="2">(40)</td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="2">3,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,758)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of period</td><td colspan="2">7,925 </td><td></td><td colspan="3"></td><td colspan="2">9,627 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of period</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>6,869 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
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TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
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TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">Cash flows from operating activities</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,475 </td><td></td><td colspan="3"></td><td>$</td><td>1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="2">1,463 </td><td></td><td colspan="3"></td><td colspan="2">1,394 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation</td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">161 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">122 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repositioning and other charges</td><td colspan="2">93 </td><td></td><td colspan="3"></td><td colspan="2">141 </td><td></td></tr><tr><td colspan="3">Net payments for repositioning and other charges</td><td colspan="2">(124)</td><td></td><td colspan="3"></td><td colspan="2">(41)</td><td></td></tr><tr><td colspan="3">NARCO Buyout payment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,325)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement income</td><td colspan="2">(151)</td><td></td><td colspan="3"></td><td colspan="2">(136)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit payments</td><td colspan="2">(8)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td></tr><tr><td colspan="3">Stock compensation expense</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">59 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">225 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other</td><td colspan="2">(163)</td><td></td><td colspan="3"></td><td colspan="2">(350)</td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities, net of the effects of acquisitions and divestitures</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(422)</td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">(140)</td><td></td><td colspan="3"></td><td colspan="2">(238)</td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">110 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(381)</td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">(605)</td><td></td><td colspan="3"></td><td colspan="2">(583)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) operating activities</td><td colspan="2">448 </td><td></td><td colspan="3"></td><td colspan="2">(784)</td><td></td></tr><tr><td colspan="3">Cash flows from investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital expenditures</td><td colspan="2">(233)</td><td></td><td colspan="3"></td><td colspan="2">(193)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of property, plant and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Increase in investments</td><td colspan="2">(238)</td><td></td><td colspan="3"></td><td colspan="2">(226)</td><td></td></tr><tr><td colspan="3">Decrease in investments</td><td colspan="2">155 </td><td></td><td colspan="3"></td><td colspan="2">386 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Receipts (payments) from settlements of derivative contracts</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">(7)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used for investing activities</td><td colspan="2">(273)</td><td></td><td colspan="3"></td><td colspan="2">(29)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of commercial paper and other short-term borrowings</td><td colspan="2">2,223 </td><td></td><td colspan="3"></td><td colspan="2">4,105 </td><td></td></tr><tr><td colspan="3">Payments of commercial paper and other short-term borrowings</td><td colspan="2">(2,470)</td><td></td><td colspan="3"></td><td colspan="2">(3,294)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">144 </td><td></td><td colspan="3"></td><td colspan="2">37 </td><td></td></tr><tr><td colspan="3">Proceeds from issuance of long-term debt</td><td colspan="2">5,710 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="2">(573)</td><td></td><td colspan="3"></td><td colspan="2">(1,363)</td><td></td></tr><tr><td colspan="3">Repurchases of common stock</td><td colspan="2">(671)</td><td></td><td colspan="3"></td><td colspan="2">(699)</td><td></td></tr><tr><td colspan="3">Cash dividends paid</td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(725)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">36 </td><td></td><td colspan="3"></td><td colspan="2">(34)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">3,696 </td><td></td><td colspan="3"></td><td colspan="2">(1,973)</td><td></td></tr><tr><td colspan="3">Effect of foreign exchange rate changes on cash and cash equivalents</td><td colspan="2">(40)</td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="2">3,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,758)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of period</td><td colspan="2">7,925 </td><td></td><td colspan="3"></td><td colspan="2">9,627 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of period</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>6,869 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
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q_Ra111
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What was Honeywell International Inc.’s Debt to Equity Ratio as of March 31, 2024?
|
The Debt to Equity Ratio for Honeywell International Inc. as of March 31, 2024, is calculated as follows:
Debt to Equity Ratio = Total Debt / Shareholders' Equity
Total Debt = Long-term Debt + Current Maturities of Long-term Debt + Commercial Paper and other Short-term Borrowings
Total Debt = $22,183 million + $1,254 million + $1,819 million = $25,256 million
Shareholders' Equity = $17,045 million
Debt to Equity Ratio = 25,256 / 17,045 = 1.48
|
Ratio
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5
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0000773840-24-000051
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PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
q_Ra112
|
How is Honeywell International Inc.’s Interest Coverage Ratio for Q1 2024 determined?
|
The Interest Coverage Ratio for Honeywell International Inc. for the three months ended March 31, 2024, is calculated as follows:
Interest Coverage Ratio = EBIT / Interest Expenses
EBIT = Income before taxes + Interest and other financial charges - Other (income) expense
EBIT = $1,871 million + $220 million - $231 million = $1,860 million
Interest Expenses = $220 million
Interest Coverage Ratio = 1,860 / 220 = 8.45
|
Ratio
|
3
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
|
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
|
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
|
q_Ra113
|
How was the Long-term Debt to Capitalization Ratio for Honeywell International Inc. as of March 31, 2024, calculated?
|
The Long-term Debt to Capitalization Ratio for Honeywell International Inc. as of March 31, 2024, is determined as follows:
Long-term Debt to Capitalization Ratio = Long-term Debt / (Long-term Debt + Shareholders' Equity)
Long-term Debt = $22,183 million
Shareholders' Equity = $17,045 million
Long-term Debt to Capitalization Ratio = 22,183 / (22,183 + 17,045) = 0.57 or 57%
|
Ratio
|
5
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
q_Ra114
|
What is Honeywell International Inc.’s Debt Service Coverage Ratio (DSCR) for Q1 2024?
|
The Debt Service Coverage Ratio (DSCR) for Honeywell International Inc. for the three months ended March 31, 2024, is calculated as follows:
DSCR = Net Operating Income / Debt Service
Net Operating Income = Net Income + Interest and other financial charges + Depreciation + Amortization
Net Income = $1,463 million
Interest and other financial charges = $220 million
Depreciation = $166 million
Amortization = $125 million
Net Operating Income = $1,463 million + $220 million + $166 million + $125 million = $1,974 million
Debt Service = Current Maturities of Long-term Debt + Interest Expenses
Current Maturities of Long-term Debt = $1,254 million
Interest Expenses = $220 million
Debt Service = $1,254 million + $220 million = $1,474 million
DSCR = 1,974 / 1,474 = 1.34
|
Ratio
|
3, 5, 6
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 6:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
| | | | | | | | |
|---:|:----------------------------------------------------------------------------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | |
| 2 | | 2024 | | 2023 | | | |
| 3 | | (Dollars in millions) | | | | | |
| 4 | Cash flows from operating activities | | | | | | |
| 5 | Net income | $ | 1,475 | | | $ | 1,408 |
| 6 | Less: Net income attributable to noncontrolling interest | 12 | | | 14 | | |
| 7 | Net income attributable to Honeywell | 1,463 | | | 1,394 | | |
| 8 | Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities | | | | | | |
| 9 | Depreciation | 166 | | | 161 | | |
| 10 | Amortization | 125 | | | 122 | | |
| 12 | Repositioning and other charges | 93 | | | 141 | | |
| 13 | Net payments for repositioning and other charges | (124) | | | (41) | | |
| 14 | NARCO Buyout payment | - | | | (1,325) | | |
| 15 | Pension and other postretirement income | (151) | | | (136) | | |
| 16 | Pension and other postretirement benefit payments | (8) | | | (15) | | |
| 17 | Stock compensation expense | 53 | | | 59 | | |
| 18 | Deferred income taxes | 3 | | | 225 | | |
| 20 | Other | (163) | | | (350) | | |
| 21 | Changes in assets and liabilities, net of the effects of acquisitions and divestitures | | | | | | |
| 22 | Accounts receivable | 53 | | | (422) | | |
| 23 | Inventories | (140) | | | (238) | | |
| 24 | Other current assets | 64 | | | 110 | | |
| 25 | Accounts payable | (381) | | | 114 | | |
| 26 | Accrued liabilities | (605) | | | (583) | | |
| 27 | Net cash provided by (used for) operating activities | 448 | | | (784) | | |
| 28 | Cash flows from investing activities | | | | | | |
| 29 | Capital expenditures | (233) | | | (193) | | |
| 30 | Proceeds from disposals of property, plant and equipment | - | | | 11 | | |
| 31 | Increase in investments | (238) | | | (226) | | |
| 32 | Decrease in investments | 155 | | | 386 | | |
| 34 | Receipts (payments) from settlements of derivative contracts | 43 | | | (7) | | |
| 37 | Net cash used for investing activities | (273) | | | (29) | | |
| 38 | Cash flows from financing activities | | | | | | |
| 39 | Proceeds from issuance of commercial paper and other short-term borrowings | 2,223 | | | 4,105 | | |
| 40 | Payments of commercial paper and other short-term borrowings | (2,470) | | | (3,294) | | |
| 41 | Proceeds from issuance of common stock | 144 | | | 37 | | |
| 42 | Proceeds from issuance of long-term debt | 5,710 | | | - | | |
| 43 | Payments of long-term debt | (573) | | | (1,363) | | |
| 44 | Repurchases of common stock | (671) | | | (699) | | |
| 45 | Cash dividends paid | (703) | | | (725) | | |
| 46 | Other | 36 | | | (34) | | |
| 47 | Net cash provided by (used for) financing activities | 3,696 | | | (1,973) | | |
| 48 | Effect of foreign exchange rate changes on cash and cash equivalents | (40) | | | 28 | | |
| 49 | Net increase (decrease) in cash and cash equivalents | 3,831 | | | (2,758) | | |
| 50 | Cash and cash equivalents at beginning of period | 7,925 | | | 9,627 | | |
| 51 | Cash and cash equivalents at end of period | $ | 11,756 | | | $ | 6,869 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
|
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
| | | | | | | | |
|---:|:----------------------------------------------------------------------------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | |
| 2 | | 2024 | | 2023 | | | |
| 3 | | (Dollars in millions) | | | | | |
| 4 | Cash flows from operating activities | | | | | | |
| 5 | Net income | $ | 1,475 | | | $ | 1,408 |
| 6 | Less: Net income attributable to noncontrolling interest | 12 | | | 14 | | |
| 7 | Net income attributable to Honeywell | 1,463 | | | 1,394 | | |
| 8 | Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities | | | | | | |
| 9 | Depreciation | 166 | | | 161 | | |
| 10 | Amortization | 125 | | | 122 | | |
| 12 | Repositioning and other charges | 93 | | | 141 | | |
| 13 | Net payments for repositioning and other charges | (124) | | | (41) | | |
| 14 | NARCO Buyout payment | - | | | (1,325) | | |
| 15 | Pension and other postretirement income | (151) | | | (136) | | |
| 16 | Pension and other postretirement benefit payments | (8) | | | (15) | | |
| 17 | Stock compensation expense | 53 | | | 59 | | |
| 18 | Deferred income taxes | 3 | | | 225 | | |
| 20 | Other | (163) | | | (350) | | |
| 21 | Changes in assets and liabilities, net of the effects of acquisitions and divestitures | | | | | | |
| 22 | Accounts receivable | 53 | | | (422) | | |
| 23 | Inventories | (140) | | | (238) | | |
| 24 | Other current assets | 64 | | | 110 | | |
| 25 | Accounts payable | (381) | | | 114 | | |
| 26 | Accrued liabilities | (605) | | | (583) | | |
| 27 | Net cash provided by (used for) operating activities | 448 | | | (784) | | |
| 28 | Cash flows from investing activities | | | | | | |
| 29 | Capital expenditures | (233) | | | (193) | | |
| 30 | Proceeds from disposals of property, plant and equipment | - | | | 11 | | |
| 31 | Increase in investments | (238) | | | (226) | | |
| 32 | Decrease in investments | 155 | | | 386 | | |
| 34 | Receipts (payments) from settlements of derivative contracts | 43 | | | (7) | | |
| 37 | Net cash used for investing activities | (273) | | | (29) | | |
| 38 | Cash flows from financing activities | | | | | | |
| 39 | Proceeds from issuance of commercial paper and other short-term borrowings | 2,223 | | | 4,105 | | |
| 40 | Payments of commercial paper and other short-term borrowings | (2,470) | | | (3,294) | | |
| 41 | Proceeds from issuance of common stock | 144 | | | 37 | | |
| 42 | Proceeds from issuance of long-term debt | 5,710 | | | - | | |
| 43 | Payments of long-term debt | (573) | | | (1,363) | | |
| 44 | Repurchases of common stock | (671) | | | (699) | | |
| 45 | Cash dividends paid | (703) | | | (725) | | |
| 46 | Other | 36 | | | (34) | | |
| 47 | Net cash provided by (used for) financing activities | 3,696 | | | (1,973) | | |
| 48 | Effect of foreign exchange rate changes on cash and cash equivalents | (40) | | | 28 | | |
| 49 | Net increase (decrease) in cash and cash equivalents | 3,831 | | | (2,758) | | |
| 50 | Cash and cash equivalents at beginning of period | 7,925 | | | 9,627 | | |
| 51 | Cash and cash equivalents at end of period | $ | 11,756 | | | $ | 6,869 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 6:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">Cash flows from operating activities</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,475 </td><td></td><td colspan="3"></td><td>$</td><td>1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="2">1,463 </td><td></td><td colspan="3"></td><td colspan="2">1,394 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation</td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">161 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">122 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repositioning and other charges</td><td colspan="2">93 </td><td></td><td colspan="3"></td><td colspan="2">141 </td><td></td></tr><tr><td colspan="3">Net payments for repositioning and other charges</td><td colspan="2">(124)</td><td></td><td colspan="3"></td><td colspan="2">(41)</td><td></td></tr><tr><td colspan="3">NARCO Buyout payment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,325)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement income</td><td colspan="2">(151)</td><td></td><td colspan="3"></td><td colspan="2">(136)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit payments</td><td colspan="2">(8)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td></tr><tr><td colspan="3">Stock compensation expense</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">59 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">225 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other</td><td colspan="2">(163)</td><td></td><td colspan="3"></td><td colspan="2">(350)</td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities, net of the effects of acquisitions and divestitures</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(422)</td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">(140)</td><td></td><td colspan="3"></td><td colspan="2">(238)</td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">110 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(381)</td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">(605)</td><td></td><td colspan="3"></td><td colspan="2">(583)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) operating activities</td><td colspan="2">448 </td><td></td><td colspan="3"></td><td colspan="2">(784)</td><td></td></tr><tr><td colspan="3">Cash flows from investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital expenditures</td><td colspan="2">(233)</td><td></td><td colspan="3"></td><td colspan="2">(193)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of property, plant and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Increase in investments</td><td colspan="2">(238)</td><td></td><td colspan="3"></td><td colspan="2">(226)</td><td></td></tr><tr><td colspan="3">Decrease in investments</td><td colspan="2">155 </td><td></td><td colspan="3"></td><td colspan="2">386 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Receipts (payments) from settlements of derivative contracts</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">(7)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used for investing activities</td><td colspan="2">(273)</td><td></td><td colspan="3"></td><td colspan="2">(29)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of commercial paper and other short-term borrowings</td><td colspan="2">2,223 </td><td></td><td colspan="3"></td><td colspan="2">4,105 </td><td></td></tr><tr><td colspan="3">Payments of commercial paper and other short-term borrowings</td><td colspan="2">(2,470)</td><td></td><td colspan="3"></td><td colspan="2">(3,294)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">144 </td><td></td><td colspan="3"></td><td colspan="2">37 </td><td></td></tr><tr><td colspan="3">Proceeds from issuance of long-term debt</td><td colspan="2">5,710 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="2">(573)</td><td></td><td colspan="3"></td><td colspan="2">(1,363)</td><td></td></tr><tr><td colspan="3">Repurchases of common stock</td><td colspan="2">(671)</td><td></td><td colspan="3"></td><td colspan="2">(699)</td><td></td></tr><tr><td colspan="3">Cash dividends paid</td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(725)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">36 </td><td></td><td colspan="3"></td><td colspan="2">(34)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">3,696 </td><td></td><td colspan="3"></td><td colspan="2">(1,973)</td><td></td></tr><tr><td colspan="3">Effect of foreign exchange rate changes on cash and cash equivalents</td><td colspan="2">(40)</td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="2">3,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,758)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of period</td><td colspan="2">7,925 </td><td></td><td colspan="3"></td><td colspan="2">9,627 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of period</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>6,869 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
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TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
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TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">Cash flows from operating activities</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,475 </td><td></td><td colspan="3"></td><td>$</td><td>1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="2">1,463 </td><td></td><td colspan="3"></td><td colspan="2">1,394 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation</td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">161 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">122 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repositioning and other charges</td><td colspan="2">93 </td><td></td><td colspan="3"></td><td colspan="2">141 </td><td></td></tr><tr><td colspan="3">Net payments for repositioning and other charges</td><td colspan="2">(124)</td><td></td><td colspan="3"></td><td colspan="2">(41)</td><td></td></tr><tr><td colspan="3">NARCO Buyout payment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,325)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement income</td><td colspan="2">(151)</td><td></td><td colspan="3"></td><td colspan="2">(136)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit payments</td><td colspan="2">(8)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td></tr><tr><td colspan="3">Stock compensation expense</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">59 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">225 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other</td><td colspan="2">(163)</td><td></td><td colspan="3"></td><td colspan="2">(350)</td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities, net of the effects of acquisitions and divestitures</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(422)</td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">(140)</td><td></td><td colspan="3"></td><td colspan="2">(238)</td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">110 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(381)</td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">(605)</td><td></td><td colspan="3"></td><td colspan="2">(583)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) operating activities</td><td colspan="2">448 </td><td></td><td colspan="3"></td><td colspan="2">(784)</td><td></td></tr><tr><td colspan="3">Cash flows from investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital expenditures</td><td colspan="2">(233)</td><td></td><td colspan="3"></td><td colspan="2">(193)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of property, plant and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Increase in investments</td><td colspan="2">(238)</td><td></td><td colspan="3"></td><td colspan="2">(226)</td><td></td></tr><tr><td colspan="3">Decrease in investments</td><td colspan="2">155 </td><td></td><td colspan="3"></td><td colspan="2">386 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Receipts (payments) from settlements of derivative contracts</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">(7)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used for investing activities</td><td colspan="2">(273)</td><td></td><td colspan="3"></td><td colspan="2">(29)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of commercial paper and other short-term borrowings</td><td colspan="2">2,223 </td><td></td><td colspan="3"></td><td colspan="2">4,105 </td><td></td></tr><tr><td colspan="3">Payments of commercial paper and other short-term borrowings</td><td colspan="2">(2,470)</td><td></td><td colspan="3"></td><td colspan="2">(3,294)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">144 </td><td></td><td colspan="3"></td><td colspan="2">37 </td><td></td></tr><tr><td colspan="3">Proceeds from issuance of long-term debt</td><td colspan="2">5,710 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="2">(573)</td><td></td><td colspan="3"></td><td colspan="2">(1,363)</td><td></td></tr><tr><td colspan="3">Repurchases of common stock</td><td colspan="2">(671)</td><td></td><td colspan="3"></td><td colspan="2">(699)</td><td></td></tr><tr><td colspan="3">Cash dividends paid</td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(725)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">36 </td><td></td><td colspan="3"></td><td colspan="2">(34)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">3,696 </td><td></td><td colspan="3"></td><td colspan="2">(1,973)</td><td></td></tr><tr><td colspan="3">Effect of foreign exchange rate changes on cash and cash equivalents</td><td colspan="2">(40)</td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="2">3,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,758)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of period</td><td colspan="2">7,925 </td><td></td><td colspan="3"></td><td colspan="2">9,627 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of period</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>6,869 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
|
q_Ra115
|
How is the Quick Ratio calculated for Honeywell International Inc. as of March 31, 2024?
|
Method 1: The Quick Ratio for Honeywell International Inc. as of March 31, 2024, is determined as follows:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Current Assets = $27,434 million
Inventory = $6,318 million
Current Liabilities = $16,488 million
Quick Ratio = (27,434 - 6,318) / 16,488 = 1.28
Method 2:
The Quick Ratio for Honeywell International Inc. as of March 31, 2024, is determined as follows:
Quick Ratio = (Cash and Cash Equivalents + Short-term Investments + Accounts Receivable) / Current Liabilities
Values:
Cash and Cash Equivalents = $11,756 million
Short-term Investments = $249 million
Accounts Receivable = $7,476 million
Current Liabilities = $16,488 million
Quick Ratio = (11,756 + 249 + 7,476) / 16,488
Quick Ratio = 19,481 / 16,488 ≈ 1.18
|
Ratio
|
5
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
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q_Ra116
|
Could you explain how the Working Capital for Honeywell International Inc. as of March 31, 2024, is calculated?
|
The Working Capital for Honeywell International Inc. as of March 31, 2024, is calculated as follows:
Working Capital = Current Assets - Current Liabilities
Current Assets = $27,434 million
Current Liabilities = $16,488 million
Working Capital = 27,434 - 16,488 = $10,946 million
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Ratio
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5
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0000773840-24-000051
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PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
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TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
q_Ra117
|
What is Honeywell International Inc.’s Operating Cash Flow Ratio for Q1 2024?
|
The Operating Cash Flow Ratio for Honeywell International Inc. for the three months ended March 31, 2024, is calculated as follows:
Operating Cash Flow Ratio = Operating Cash Flow / Current Liabilities
Operating Cash Flow = $448 million
Current Liabilities = $16,488 million
Operating Cash Flow Ratio = 448 / 16,488 = 0.03
|
Ratio
|
5, 6
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 6:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
| | | | | | | | |
|---:|:----------------------------------------------------------------------------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | |
| 2 | | 2024 | | 2023 | | | |
| 3 | | (Dollars in millions) | | | | | |
| 4 | Cash flows from operating activities | | | | | | |
| 5 | Net income | $ | 1,475 | | | $ | 1,408 |
| 6 | Less: Net income attributable to noncontrolling interest | 12 | | | 14 | | |
| 7 | Net income attributable to Honeywell | 1,463 | | | 1,394 | | |
| 8 | Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities | | | | | | |
| 9 | Depreciation | 166 | | | 161 | | |
| 10 | Amortization | 125 | | | 122 | | |
| 12 | Repositioning and other charges | 93 | | | 141 | | |
| 13 | Net payments for repositioning and other charges | (124) | | | (41) | | |
| 14 | NARCO Buyout payment | - | | | (1,325) | | |
| 15 | Pension and other postretirement income | (151) | | | (136) | | |
| 16 | Pension and other postretirement benefit payments | (8) | | | (15) | | |
| 17 | Stock compensation expense | 53 | | | 59 | | |
| 18 | Deferred income taxes | 3 | | | 225 | | |
| 20 | Other | (163) | | | (350) | | |
| 21 | Changes in assets and liabilities, net of the effects of acquisitions and divestitures | | | | | | |
| 22 | Accounts receivable | 53 | | | (422) | | |
| 23 | Inventories | (140) | | | (238) | | |
| 24 | Other current assets | 64 | | | 110 | | |
| 25 | Accounts payable | (381) | | | 114 | | |
| 26 | Accrued liabilities | (605) | | | (583) | | |
| 27 | Net cash provided by (used for) operating activities | 448 | | | (784) | | |
| 28 | Cash flows from investing activities | | | | | | |
| 29 | Capital expenditures | (233) | | | (193) | | |
| 30 | Proceeds from disposals of property, plant and equipment | - | | | 11 | | |
| 31 | Increase in investments | (238) | | | (226) | | |
| 32 | Decrease in investments | 155 | | | 386 | | |
| 34 | Receipts (payments) from settlements of derivative contracts | 43 | | | (7) | | |
| 37 | Net cash used for investing activities | (273) | | | (29) | | |
| 38 | Cash flows from financing activities | | | | | | |
| 39 | Proceeds from issuance of commercial paper and other short-term borrowings | 2,223 | | | 4,105 | | |
| 40 | Payments of commercial paper and other short-term borrowings | (2,470) | | | (3,294) | | |
| 41 | Proceeds from issuance of common stock | 144 | | | 37 | | |
| 42 | Proceeds from issuance of long-term debt | 5,710 | | | - | | |
| 43 | Payments of long-term debt | (573) | | | (1,363) | | |
| 44 | Repurchases of common stock | (671) | | | (699) | | |
| 45 | Cash dividends paid | (703) | | | (725) | | |
| 46 | Other | 36 | | | (34) | | |
| 47 | Net cash provided by (used for) financing activities | 3,696 | | | (1,973) | | |
| 48 | Effect of foreign exchange rate changes on cash and cash equivalents | (40) | | | 28 | | |
| 49 | Net increase (decrease) in cash and cash equivalents | 3,831 | | | (2,758) | | |
| 50 | Cash and cash equivalents at beginning of period | 7,925 | | | 9,627 | | |
| 51 | Cash and cash equivalents at end of period | $ | 11,756 | | | $ | 6,869 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
|
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
| | | | | | | | |
|---:|:----------------------------------------------------------------------------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | |
| 2 | | 2024 | | 2023 | | | |
| 3 | | (Dollars in millions) | | | | | |
| 4 | Cash flows from operating activities | | | | | | |
| 5 | Net income | $ | 1,475 | | | $ | 1,408 |
| 6 | Less: Net income attributable to noncontrolling interest | 12 | | | 14 | | |
| 7 | Net income attributable to Honeywell | 1,463 | | | 1,394 | | |
| 8 | Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities | | | | | | |
| 9 | Depreciation | 166 | | | 161 | | |
| 10 | Amortization | 125 | | | 122 | | |
| 12 | Repositioning and other charges | 93 | | | 141 | | |
| 13 | Net payments for repositioning and other charges | (124) | | | (41) | | |
| 14 | NARCO Buyout payment | - | | | (1,325) | | |
| 15 | Pension and other postretirement income | (151) | | | (136) | | |
| 16 | Pension and other postretirement benefit payments | (8) | | | (15) | | |
| 17 | Stock compensation expense | 53 | | | 59 | | |
| 18 | Deferred income taxes | 3 | | | 225 | | |
| 20 | Other | (163) | | | (350) | | |
| 21 | Changes in assets and liabilities, net of the effects of acquisitions and divestitures | | | | | | |
| 22 | Accounts receivable | 53 | | | (422) | | |
| 23 | Inventories | (140) | | | (238) | | |
| 24 | Other current assets | 64 | | | 110 | | |
| 25 | Accounts payable | (381) | | | 114 | | |
| 26 | Accrued liabilities | (605) | | | (583) | | |
| 27 | Net cash provided by (used for) operating activities | 448 | | | (784) | | |
| 28 | Cash flows from investing activities | | | | | | |
| 29 | Capital expenditures | (233) | | | (193) | | |
| 30 | Proceeds from disposals of property, plant and equipment | - | | | 11 | | |
| 31 | Increase in investments | (238) | | | (226) | | |
| 32 | Decrease in investments | 155 | | | 386 | | |
| 34 | Receipts (payments) from settlements of derivative contracts | 43 | | | (7) | | |
| 37 | Net cash used for investing activities | (273) | | | (29) | | |
| 38 | Cash flows from financing activities | | | | | | |
| 39 | Proceeds from issuance of commercial paper and other short-term borrowings | 2,223 | | | 4,105 | | |
| 40 | Payments of commercial paper and other short-term borrowings | (2,470) | | | (3,294) | | |
| 41 | Proceeds from issuance of common stock | 144 | | | 37 | | |
| 42 | Proceeds from issuance of long-term debt | 5,710 | | | - | | |
| 43 | Payments of long-term debt | (573) | | | (1,363) | | |
| 44 | Repurchases of common stock | (671) | | | (699) | | |
| 45 | Cash dividends paid | (703) | | | (725) | | |
| 46 | Other | 36 | | | (34) | | |
| 47 | Net cash provided by (used for) financing activities | 3,696 | | | (1,973) | | |
| 48 | Effect of foreign exchange rate changes on cash and cash equivalents | (40) | | | 28 | | |
| 49 | Net increase (decrease) in cash and cash equivalents | 3,831 | | | (2,758) | | |
| 50 | Cash and cash equivalents at beginning of period | 7,925 | | | 9,627 | | |
| 51 | Cash and cash equivalents at end of period | $ | 11,756 | | | $ | 6,869 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 6:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">Cash flows from operating activities</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,475 </td><td></td><td colspan="3"></td><td>$</td><td>1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="2">1,463 </td><td></td><td colspan="3"></td><td colspan="2">1,394 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation</td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">161 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">122 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repositioning and other charges</td><td colspan="2">93 </td><td></td><td colspan="3"></td><td colspan="2">141 </td><td></td></tr><tr><td colspan="3">Net payments for repositioning and other charges</td><td colspan="2">(124)</td><td></td><td colspan="3"></td><td colspan="2">(41)</td><td></td></tr><tr><td colspan="3">NARCO Buyout payment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,325)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement income</td><td colspan="2">(151)</td><td></td><td colspan="3"></td><td colspan="2">(136)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit payments</td><td colspan="2">(8)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td></tr><tr><td colspan="3">Stock compensation expense</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">59 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">225 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other</td><td colspan="2">(163)</td><td></td><td colspan="3"></td><td colspan="2">(350)</td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities, net of the effects of acquisitions and divestitures</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(422)</td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">(140)</td><td></td><td colspan="3"></td><td colspan="2">(238)</td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">110 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(381)</td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">(605)</td><td></td><td colspan="3"></td><td colspan="2">(583)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) operating activities</td><td colspan="2">448 </td><td></td><td colspan="3"></td><td colspan="2">(784)</td><td></td></tr><tr><td colspan="3">Cash flows from investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital expenditures</td><td colspan="2">(233)</td><td></td><td colspan="3"></td><td colspan="2">(193)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of property, plant and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Increase in investments</td><td colspan="2">(238)</td><td></td><td colspan="3"></td><td colspan="2">(226)</td><td></td></tr><tr><td colspan="3">Decrease in investments</td><td colspan="2">155 </td><td></td><td colspan="3"></td><td colspan="2">386 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Receipts (payments) from settlements of derivative contracts</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">(7)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used for investing activities</td><td colspan="2">(273)</td><td></td><td colspan="3"></td><td colspan="2">(29)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of commercial paper and other short-term borrowings</td><td colspan="2">2,223 </td><td></td><td colspan="3"></td><td colspan="2">4,105 </td><td></td></tr><tr><td colspan="3">Payments of commercial paper and other short-term borrowings</td><td colspan="2">(2,470)</td><td></td><td colspan="3"></td><td colspan="2">(3,294)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">144 </td><td></td><td colspan="3"></td><td colspan="2">37 </td><td></td></tr><tr><td colspan="3">Proceeds from issuance of long-term debt</td><td colspan="2">5,710 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="2">(573)</td><td></td><td colspan="3"></td><td colspan="2">(1,363)</td><td></td></tr><tr><td colspan="3">Repurchases of common stock</td><td colspan="2">(671)</td><td></td><td colspan="3"></td><td colspan="2">(699)</td><td></td></tr><tr><td colspan="3">Cash dividends paid</td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(725)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">36 </td><td></td><td colspan="3"></td><td colspan="2">(34)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">3,696 </td><td></td><td colspan="3"></td><td colspan="2">(1,973)</td><td></td></tr><tr><td colspan="3">Effect of foreign exchange rate changes on cash and cash equivalents</td><td colspan="2">(40)</td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="2">3,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,758)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of period</td><td colspan="2">7,925 </td><td></td><td colspan="3"></td><td colspan="2">9,627 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of period</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>6,869 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
|
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">Cash flows from operating activities</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,475 </td><td></td><td colspan="3"></td><td>$</td><td>1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="2">1,463 </td><td></td><td colspan="3"></td><td colspan="2">1,394 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income attributable to Honeywell to net cash provided by (used for) operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation</td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">161 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">122 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repositioning and other charges</td><td colspan="2">93 </td><td></td><td colspan="3"></td><td colspan="2">141 </td><td></td></tr><tr><td colspan="3">Net payments for repositioning and other charges</td><td colspan="2">(124)</td><td></td><td colspan="3"></td><td colspan="2">(41)</td><td></td></tr><tr><td colspan="3">NARCO Buyout payment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,325)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement income</td><td colspan="2">(151)</td><td></td><td colspan="3"></td><td colspan="2">(136)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit payments</td><td colspan="2">(8)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td></tr><tr><td colspan="3">Stock compensation expense</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">59 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">225 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other</td><td colspan="2">(163)</td><td></td><td colspan="3"></td><td colspan="2">(350)</td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities, net of the effects of acquisitions and divestitures</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(422)</td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">(140)</td><td></td><td colspan="3"></td><td colspan="2">(238)</td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">110 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(381)</td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">(605)</td><td></td><td colspan="3"></td><td colspan="2">(583)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) operating activities</td><td colspan="2">448 </td><td></td><td colspan="3"></td><td colspan="2">(784)</td><td></td></tr><tr><td colspan="3">Cash flows from investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital expenditures</td><td colspan="2">(233)</td><td></td><td colspan="3"></td><td colspan="2">(193)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of property, plant and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Increase in investments</td><td colspan="2">(238)</td><td></td><td colspan="3"></td><td colspan="2">(226)</td><td></td></tr><tr><td colspan="3">Decrease in investments</td><td colspan="2">155 </td><td></td><td colspan="3"></td><td colspan="2">386 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Receipts (payments) from settlements of derivative contracts</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">(7)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used for investing activities</td><td colspan="2">(273)</td><td></td><td colspan="3"></td><td colspan="2">(29)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of commercial paper and other short-term borrowings</td><td colspan="2">2,223 </td><td></td><td colspan="3"></td><td colspan="2">4,105 </td><td></td></tr><tr><td colspan="3">Payments of commercial paper and other short-term borrowings</td><td colspan="2">(2,470)</td><td></td><td colspan="3"></td><td colspan="2">(3,294)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">144 </td><td></td><td colspan="3"></td><td colspan="2">37 </td><td></td></tr><tr><td colspan="3">Proceeds from issuance of long-term debt</td><td colspan="2">5,710 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="2">(573)</td><td></td><td colspan="3"></td><td colspan="2">(1,363)</td><td></td></tr><tr><td colspan="3">Repurchases of common stock</td><td colspan="2">(671)</td><td></td><td colspan="3"></td><td colspan="2">(699)</td><td></td></tr><tr><td colspan="3">Cash dividends paid</td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(725)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">36 </td><td></td><td colspan="3"></td><td colspan="2">(34)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">3,696 </td><td></td><td colspan="3"></td><td colspan="2">(1,973)</td><td></td></tr><tr><td colspan="3">Effect of foreign exchange rate changes on cash and cash equivalents</td><td colspan="2">(40)</td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="2">3,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,758)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of period</td><td colspan="2">7,925 </td><td></td><td colspan="3"></td><td colspan="2">9,627 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of period</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>6,869 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
6 Honeywell International Inc.
|
q_Ra118
|
What is the Inventory Turnover for Honeywell International Inc. for the three months ending March 31, 2024?
|
The Inventory Turnover for Honeywell International Inc. for the three months ended March 31, 2024, is calculated as follows:
Inventory Turnover = Cost of Goods Sold / Average Inventory
Cost of Goods Sold = $5,583 million
Average Inventory = (Inventory at the beginning of the period + Inventory at the end of the period) / 2
Average Inventory = ($6,178 million + $6,318 million) / 2 = $6,248 million
Inventory Turnover = 5,583 / 6,248 = 0.89
|
Ratio
|
3, 5
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
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TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
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TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
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q_Ra119
|
How is Honeywell International Inc.’s Days Sales of Inventory (DSI) for Q1 2024 calculated?
|
The Days Sales of Inventory (DSI) for Honeywell International Inc. for the three months ended March 31, 2024, is determined as follows:
DSI = (Average Inventory / Cost of Goods Sold) * Number of Days
Average Inventory = $6,248 million
Cost of Goods Sold = $5,583 million
Number of Days = 90 (assuming a 3-month period)
DSI = (6,248 / 5,583) * 90 = 100.7 days
|
Ratio
|
7, 9
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 7:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF SHAREOWNERS' EQUITY
(Unaudited)
| | | | | | | | | | | | | | | |
|---:|:--------------------------------------------------------|:----------------------------------------|:-----|:-----|:-------|:--------|:---|:--------|:---------|:---|:--------|:--------|:---|:---------|
| 1 | | Three Months Ended March 31, | | | | | | | | | | | | |
| 2 | | | 2024 | 2023 | | | | | | | | | | |
| 3 | | | | | Shares | | $ | | Shares | $ | | | | |
| 4 | | (In millions, except per share amounts) | | | | | | | | | | | | |
| 5 | Common stock, par value | | | | | 957.6 | | | 958 | | 957.6 | | | 958 |
| 6 | Additional paid-in capital | | | | | | | | | | | | | |
| 7 | Beginning balance | | | | | | | 9,062 | | | | 8,564 | | |
| 8 | Issued for employee savings and option plans | | | | | | | 202 | | | | 151 | | |
| 9 | Stock compensation expense | | | | | | | 53 | | | | 59 | | |
| 10 | Impact of Quantinuum contribution | | | | | | | 36 | | | | - | | |
| 12 | Ending balance | | | | | | | 9,353 | | | | 8,774 | | |
| 13 | Treasury stock | | | | | | | | | | | | | |
| 14 | Beginning balance | | | | | (305.8) | | | (38,008) | | (290.0) | | | (34,443) |
| 15 | Reacquired stock or repurchases of common stock | | | | | (3.4) | | | (671) | | (3.5) | | | (699) |
| 16 | Issued for employee savings and option plans | | | | | 2.8 | | | 135 | | 1.6 | | | 70 |
| 17 | Ending balance | | | | | (306.4) | | | (38,544) | | (291.9) | | | (35,072) |
| 18 | Retained earnings | | | | | | | | | | | | | |
| 19 | Beginning balance | | | | | | | 47,979 | | | | 45,093 | | |
| 21 | Net income attributable to Honeywell | | | | | | | 1,463 | | | | 1,394 | | |
| 22 | Dividends on common stock | | | | | | | (707) | | | | (690) | | |
| 25 | Ending balance | | | | | | | 48,735 | | | | 45,797 | | |
| 26 | Accumulated other comprehensive income (loss) | | | | | | | | | | | | | |
| 27 | Beginning balance | | | | | | | (4,135) | | | | (3,475) | | |
| 28 | Foreign exchange translation adjustment | | | | | | | 78 | | | | (59) | | |
| 29 | Pension and other postretirement benefit adjustments | | | | | | | (5) | | | | (12) | | |
| 30 | Changes in fair value of available for sale investments | | | | | | | - | | | | (6) | | |
| 31 | Changes in fair value of cash flow hedges | | | | | | | 14 | | | | 14 | | |
| 32 | Ending balance | | | | | | | (4,048) | | | | (3,538) | | |
| 33 | Noncontrolling interest | | | | | | | | | | | | | |
| 34 | Beginning balance | | | | | | | 578 | | | | 622 | | |
| 36 | Net income attributable to noncontrolling interest | | | | | | | 12 | | | | 14 | | |
| 37 | Foreign exchange translation adjustment | | | | | | | (24) | | | | 1 | | |
| 38 | Dividends paid | | | | | | | (4) | | | | (41) | | |
| 39 | Contributions from noncontrolling interest holders | | | | | | | 29 | | | | - | | |
| 40 | Ending balance | | | | | | | 591 | | | | 596 | | |
| 41 | Total shareowners' equity | | | | | 651.2 | | | 17,045 | | 665.7 | | | 17,515 |
| 42 | Cash dividends per share of common stock | | | | | | | $ | 1.08 | | | | $ | 1.03 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
7 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 9:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU is effective on January 1, 2023, except for the rollforward, which is effective on January 1, 2024, for annual disclosures. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements.
NOTE 3. ACQUISITIONS AND DIVESTITURES
ACQUISITIONS
On March 27, 2024, the Company announced its intention to acquire Civitanavi Systems S.p.A. in an all-cash transaction for approximately €200 million. The transaction is not subject to any financing condition but is subject to regulatory review and approval, the tender into the offer of at least 95% of Civitanavi Systems S.p.A.'s outstanding shares, and customary closing conditions. The transaction is expected to close by the end of the third quarter of 2024 and the business will be reported within the Aerospace Technologies reportable business segment.
On December 8, 2023, the Company agreed to acquire Carrier Global Corporation's Global Access Solutions business in an all-cash transaction for $5.0 billion. The transaction is subject to regulatory review and approval and customary closing conditions. The transaction is expected to close by the end of the third quarter of 2024, and the business will be reported within the Building Automation reportable business segment.
On August 25, 2023, the Company acquired 100% of the outstanding equity interests of SCADAfence, a provider of operational technology and Internet of Things cybersecurity solutions for monitoring large scale networks, for total consideration of $52 million, net of cash acquired. The business is included in the Industrial Automation reportable business segment. The assets and liabilities acquired with SCADAfence are included in the Consolidated Balance Sheet as of March 31, 2024, including $17 million of intangible assets and $42 million of goodwill, which is not deductible for tax purposes. The purchase accounting is subject to final adjustment, primarily for the value of intangible assets, amounts allocated to goodwill, and tax balances.
On June 30, 2023, the Company acquired 100% of the outstanding equity interests of Compressor Controls Corporation, a turbomachinery services and controls company based in the United States, for total cash consideration of $673 million, net of cash acquired. The business is included in the Industrial Automation reportable business segment. The assets and liabilities acquired with Compressor Controls Corporation are included in the Consolidated Balance Sheet as of March 31, 2024, including $282 million of intangible assets and $350 million allocated to goodwill, which is deductible for tax purposes. The identifiable intangible assets primarily include customer relationships amortized over an estimated life of 15 years using an excess earnings amortization method. The purchase accounting is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances.
DIVESTITURES
For the three months ended March 31, 2024, there were no significant divestitures that closed individually or in the aggregate.
9 Honeywell International Inc.
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TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF SHAREOWNERS' EQUITY
(Unaudited)
| | | | | | | | | | | | | | | |
|---:|:--------------------------------------------------------|:----------------------------------------|:-----|:-----|:-------|:--------|:---|:--------|:---------|:---|:--------|:--------|:---|:---------|
| 1 | | Three Months Ended March 31, | | | | | | | | | | | | |
| 2 | | | 2024 | 2023 | | | | | | | | | | |
| 3 | | | | | Shares | | $ | | Shares | $ | | | | |
| 4 | | (In millions, except per share amounts) | | | | | | | | | | | | |
| 5 | Common stock, par value | | | | | 957.6 | | | 958 | | 957.6 | | | 958 |
| 6 | Additional paid-in capital | | | | | | | | | | | | | |
| 7 | Beginning balance | | | | | | | 9,062 | | | | 8,564 | | |
| 8 | Issued for employee savings and option plans | | | | | | | 202 | | | | 151 | | |
| 9 | Stock compensation expense | | | | | | | 53 | | | | 59 | | |
| 10 | Impact of Quantinuum contribution | | | | | | | 36 | | | | - | | |
| 12 | Ending balance | | | | | | | 9,353 | | | | 8,774 | | |
| 13 | Treasury stock | | | | | | | | | | | | | |
| 14 | Beginning balance | | | | | (305.8) | | | (38,008) | | (290.0) | | | (34,443) |
| 15 | Reacquired stock or repurchases of common stock | | | | | (3.4) | | | (671) | | (3.5) | | | (699) |
| 16 | Issued for employee savings and option plans | | | | | 2.8 | | | 135 | | 1.6 | | | 70 |
| 17 | Ending balance | | | | | (306.4) | | | (38,544) | | (291.9) | | | (35,072) |
| 18 | Retained earnings | | | | | | | | | | | | | |
| 19 | Beginning balance | | | | | | | 47,979 | | | | 45,093 | | |
| 21 | Net income attributable to Honeywell | | | | | | | 1,463 | | | | 1,394 | | |
| 22 | Dividends on common stock | | | | | | | (707) | | | | (690) | | |
| 25 | Ending balance | | | | | | | 48,735 | | | | 45,797 | | |
| 26 | Accumulated other comprehensive income (loss) | | | | | | | | | | | | | |
| 27 | Beginning balance | | | | | | | (4,135) | | | | (3,475) | | |
| 28 | Foreign exchange translation adjustment | | | | | | | 78 | | | | (59) | | |
| 29 | Pension and other postretirement benefit adjustments | | | | | | | (5) | | | | (12) | | |
| 30 | Changes in fair value of available for sale investments | | | | | | | - | | | | (6) | | |
| 31 | Changes in fair value of cash flow hedges | | | | | | | 14 | | | | 14 | | |
| 32 | Ending balance | | | | | | | (4,048) | | | | (3,538) | | |
| 33 | Noncontrolling interest | | | | | | | | | | | | | |
| 34 | Beginning balance | | | | | | | 578 | | | | 622 | | |
| 36 | Net income attributable to noncontrolling interest | | | | | | | 12 | | | | 14 | | |
| 37 | Foreign exchange translation adjustment | | | | | | | (24) | | | | 1 | | |
| 38 | Dividends paid | | | | | | | (4) | | | | (41) | | |
| 39 | Contributions from noncontrolling interest holders | | | | | | | 29 | | | | - | | |
| 40 | Ending balance | | | | | | | 591 | | | | 596 | | |
| 41 | Total shareowners' equity | | | | | 651.2 | | | 17,045 | | 665.7 | | | 17,515 |
| 42 | Cash dividends per share of common stock | | | | | | | $ | 1.08 | | | | $ | 1.03 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
7 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU is effective on January 1, 2023, except for the rollforward, which is effective on January 1, 2024, for annual disclosures. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements.
NOTE 3. ACQUISITIONS AND DIVESTITURES
ACQUISITIONS
On March 27, 2024, the Company announced its intention to acquire Civitanavi Systems S.p.A. in an all-cash transaction for approximately €200 million. The transaction is not subject to any financing condition but is subject to regulatory review and approval, the tender into the offer of at least 95% of Civitanavi Systems S.p.A.'s outstanding shares, and customary closing conditions. The transaction is expected to close by the end of the third quarter of 2024 and the business will be reported within the Aerospace Technologies reportable business segment.
On December 8, 2023, the Company agreed to acquire Carrier Global Corporation's Global Access Solutions business in an all-cash transaction for $5.0 billion. The transaction is subject to regulatory review and approval and customary closing conditions. The transaction is expected to close by the end of the third quarter of 2024, and the business will be reported within the Building Automation reportable business segment.
On August 25, 2023, the Company acquired 100% of the outstanding equity interests of SCADAfence, a provider of operational technology and Internet of Things cybersecurity solutions for monitoring large scale networks, for total consideration of $52 million, net of cash acquired. The business is included in the Industrial Automation reportable business segment. The assets and liabilities acquired with SCADAfence are included in the Consolidated Balance Sheet as of March 31, 2024, including $17 million of intangible assets and $42 million of goodwill, which is not deductible for tax purposes. The purchase accounting is subject to final adjustment, primarily for the value of intangible assets, amounts allocated to goodwill, and tax balances.
On June 30, 2023, the Company acquired 100% of the outstanding equity interests of Compressor Controls Corporation, a turbomachinery services and controls company based in the United States, for total cash consideration of $673 million, net of cash acquired. The business is included in the Industrial Automation reportable business segment. The assets and liabilities acquired with Compressor Controls Corporation are included in the Consolidated Balance Sheet as of March 31, 2024, including $282 million of intangible assets and $350 million allocated to goodwill, which is deductible for tax purposes. The identifiable intangible assets primarily include customer relationships amortized over an estimated life of 15 years using an excess earnings amortization method. The purchase accounting is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances.
DIVESTITURES
For the three months ended March 31, 2024, there were no significant divestitures that closed individually or in the aggregate.
9 Honeywell International Inc.
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HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 7:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF SHAREOWNERS' EQUITY
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="21">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">2024</td><td colspan="3"></td><td colspan="9">2023</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">$</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">$</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="21">(In millions, except per share amounts)</td></tr><tr><td colspan="3">Common stock, par value</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">957.6 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">957.6 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,564 </td><td></td></tr><tr><td colspan="3">Issued for employee savings and option plans</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">151 </td><td></td></tr><tr><td colspan="3">Stock compensation expense </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">59 </td><td></td></tr><tr><td colspan="3">Impact of Quantinuum contribution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">36 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Ending balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,774 </td><td></td></tr><tr><td colspan="3">Treasury stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(305.8)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td><td colspan="3"></td><td colspan="2">(290.0)</td><td></td><td colspan="3"></td><td colspan="2">(34,443)</td><td></td></tr><tr><td colspan="3">Reacquired stock or repurchases of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(3.4)</td><td></td><td colspan="3"></td><td colspan="2">(671)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td><td colspan="3"></td><td colspan="2">(699)</td><td></td></tr><tr><td colspan="3">Issued for employee savings and option plans</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2.8 </td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td><td colspan="3"></td><td colspan="2">1.6 </td><td></td><td colspan="3"></td><td colspan="2">70 </td><td></td></tr><tr><td colspan="3">Ending balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(306.4)</td><td></td><td colspan="3"></td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(291.9)</td><td></td><td colspan="3"></td><td colspan="2">(35,072)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">45,093 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,463 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,394 </td><td></td></tr><tr><td colspan="3">Dividends on common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(707)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(690)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Ending balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">45,797 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(3,475)</td><td></td></tr><tr><td colspan="3">Foreign exchange translation adjustment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">78 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(59)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(5)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(12)</td><td></td></tr><tr><td colspan="3">Changes in fair value of available for sale investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(6)</td><td></td></tr><tr><td colspan="3">Changes in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Ending balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(3,538)</td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">578 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">622 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Foreign exchange translation adjustment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(24)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(41)</td><td></td></tr><tr><td colspan="3">Contributions from noncontrolling interest holders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Ending balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">596 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">651.2 </td><td></td><td colspan="3"></td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">665.7 </td><td></td><td colspan="3"></td><td colspan="2">17,515 </td><td></td></tr><tr><td colspan="3">Cash dividends per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1.03 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
7 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 9:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU is effective on January 1, 2023, except for the rollforward, which is effective on January 1, 2024, for annual disclosures. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements.
NOTE 3. ACQUISITIONS AND DIVESTITURES
ACQUISITIONS
On March 27, 2024, the Company announced its intention to acquire Civitanavi Systems S.p.A. in an all-cash transaction for approximately €200 million. The transaction is not subject to any financing condition but is subject to regulatory review and approval, the tender into the offer of at least 95% of Civitanavi Systems S.p.A.'s outstanding shares, and customary closing conditions. The transaction is expected to close by the end of the third quarter of 2024 and the business will be reported within the Aerospace Technologies reportable business segment.
On December 8, 2023, the Company agreed to acquire Carrier Global Corporation's Global Access Solutions business in an all-cash transaction for $5.0 billion. The transaction is subject to regulatory review and approval and customary closing conditions. The transaction is expected to close by the end of the third quarter of 2024, and the business will be reported within the Building Automation reportable business segment.
On August 25, 2023, the Company acquired 100% of the outstanding equity interests of SCADAfence, a provider of operational technology and Internet of Things cybersecurity solutions for monitoring large scale networks, for total consideration of $52 million, net of cash acquired. The business is included in the Industrial Automation reportable business segment. The assets and liabilities acquired with SCADAfence are included in the Consolidated Balance Sheet as of March 31, 2024, including $17 million of intangible assets and $42 million of goodwill, which is not deductible for tax purposes. The purchase accounting is subject to final adjustment, primarily for the value of intangible assets, amounts allocated to goodwill, and tax balances.
On June 30, 2023, the Company acquired 100% of the outstanding equity interests of Compressor Controls Corporation, a turbomachinery services and controls company based in the United States, for total cash consideration of $673 million, net of cash acquired. The business is included in the Industrial Automation reportable business segment. The assets and liabilities acquired with Compressor Controls Corporation are included in the Consolidated Balance Sheet as of March 31, 2024, including $282 million of intangible assets and $350 million allocated to goodwill, which is deductible for tax purposes. The identifiable intangible assets primarily include customer relationships amortized over an estimated life of 15 years using an excess earnings amortization method. The purchase accounting is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances.
DIVESTITURES
For the three months ended March 31, 2024, there were no significant divestitures that closed individually or in the aggregate.
9 Honeywell International Inc.
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TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF SHAREOWNERS' EQUITY
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="21">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">2024</td><td colspan="3"></td><td colspan="9">2023</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">$</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">$</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="21">(In millions, except per share amounts)</td></tr><tr><td colspan="3">Common stock, par value</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">957.6 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">957.6 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,564 </td><td></td></tr><tr><td colspan="3">Issued for employee savings and option plans</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">151 </td><td></td></tr><tr><td colspan="3">Stock compensation expense </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">59 </td><td></td></tr><tr><td colspan="3">Impact of Quantinuum contribution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">36 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Ending balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,774 </td><td></td></tr><tr><td colspan="3">Treasury stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(305.8)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td><td colspan="3"></td><td colspan="2">(290.0)</td><td></td><td colspan="3"></td><td colspan="2">(34,443)</td><td></td></tr><tr><td colspan="3">Reacquired stock or repurchases of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(3.4)</td><td></td><td colspan="3"></td><td colspan="2">(671)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td><td colspan="3"></td><td colspan="2">(699)</td><td></td></tr><tr><td colspan="3">Issued for employee savings and option plans</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2.8 </td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td><td colspan="3"></td><td colspan="2">1.6 </td><td></td><td colspan="3"></td><td colspan="2">70 </td><td></td></tr><tr><td colspan="3">Ending balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(306.4)</td><td></td><td colspan="3"></td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(291.9)</td><td></td><td colspan="3"></td><td colspan="2">(35,072)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">45,093 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,463 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,394 </td><td></td></tr><tr><td colspan="3">Dividends on common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(707)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(690)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Ending balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">45,797 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(3,475)</td><td></td></tr><tr><td colspan="3">Foreign exchange translation adjustment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">78 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(59)</td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(5)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(12)</td><td></td></tr><tr><td colspan="3">Changes in fair value of available for sale investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(6)</td><td></td></tr><tr><td colspan="3">Changes in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Ending balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(3,538)</td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">578 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">622 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Foreign exchange translation adjustment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(24)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(41)</td><td></td></tr><tr><td colspan="3">Contributions from noncontrolling interest holders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Ending balance</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">596 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">651.2 </td><td></td><td colspan="3"></td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">665.7 </td><td></td><td colspan="3"></td><td colspan="2">17,515 </td><td></td></tr><tr><td colspan="3">Cash dividends per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1.03 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
7 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in tables in millions, except per share amounts)
In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations, to enhance the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU is effective on January 1, 2023, except for the rollforward, which is effective on January 1, 2024, for annual disclosures. The Company adopted this guidance on January 1, 2023, with the exception of the rollforward adopted on January 1, 2024. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the transition away from reference rates expected to be discontinued to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of this guidance to include derivatives. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022, to December 31, 2024. The Company will apply the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company's Consolidated Financial Statements.
NOTE 3. ACQUISITIONS AND DIVESTITURES
ACQUISITIONS
On March 27, 2024, the Company announced its intention to acquire Civitanavi Systems S.p.A. in an all-cash transaction for approximately €200 million. The transaction is not subject to any financing condition but is subject to regulatory review and approval, the tender into the offer of at least 95% of Civitanavi Systems S.p.A.'s outstanding shares, and customary closing conditions. The transaction is expected to close by the end of the third quarter of 2024 and the business will be reported within the Aerospace Technologies reportable business segment.
On December 8, 2023, the Company agreed to acquire Carrier Global Corporation's Global Access Solutions business in an all-cash transaction for $5.0 billion. The transaction is subject to regulatory review and approval and customary closing conditions. The transaction is expected to close by the end of the third quarter of 2024, and the business will be reported within the Building Automation reportable business segment.
On August 25, 2023, the Company acquired 100% of the outstanding equity interests of SCADAfence, a provider of operational technology and Internet of Things cybersecurity solutions for monitoring large scale networks, for total consideration of $52 million, net of cash acquired. The business is included in the Industrial Automation reportable business segment. The assets and liabilities acquired with SCADAfence are included in the Consolidated Balance Sheet as of March 31, 2024, including $17 million of intangible assets and $42 million of goodwill, which is not deductible for tax purposes. The purchase accounting is subject to final adjustment, primarily for the value of intangible assets, amounts allocated to goodwill, and tax balances.
On June 30, 2023, the Company acquired 100% of the outstanding equity interests of Compressor Controls Corporation, a turbomachinery services and controls company based in the United States, for total cash consideration of $673 million, net of cash acquired. The business is included in the Industrial Automation reportable business segment. The assets and liabilities acquired with Compressor Controls Corporation are included in the Consolidated Balance Sheet as of March 31, 2024, including $282 million of intangible assets and $350 million allocated to goodwill, which is deductible for tax purposes. The identifiable intangible assets primarily include customer relationships amortized over an estimated life of 15 years using an excess earnings amortization method. The purchase accounting is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances.
DIVESTITURES
For the three months ended March 31, 2024, there were no significant divestitures that closed individually or in the aggregate.
9 Honeywell International Inc.
|
q_Ra120
|
What was Honeywell International Inc.’s Receivables Turnover for Q1 2024?
|
The Receivables Turnover for Honeywell International Inc. for the three months ended March 31, 2024, is calculated as follows:
Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Net Credit Sales = $9,105 million
Average Accounts Receivable = (Accounts Receivable at the beginning of the period + Accounts Receivable at the end of the period) / 2
Average Accounts Receivable = ($7,530 million + $7,476 million) / 2 = $7,503 million
Receivables Turnover = 9,105 / 7,503 = 1.21
|
Ratio
|
3, 5
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
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TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
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TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
q_Ra121
|
How is the Days Payable Outstanding (DPO) calculated for Honeywell International Inc. for Q1 2024?
|
Method 1: The Days Payable Outstanding (DPO) for Honeywell International Inc. for the three months ended March 31, 2024, is calculated as follows:
DPO = (Accounts Payable / Cost of Goods Sold) * Number of Days
Accounts Payable = $6,468 million
Cost of Goods Sold = $5,583 million
Number of Days = 90 (assuming a 3-month period)
DPO = (6,468 / 5,583) * 90 = 104.3 days
Method 2: The Days Payable Outstanding (DPO) for Honeywell International Inc. for the three months ended March 31, 2024, is calculated as follows:
DPO = (Average Accounts Payable / Cost of Goods Sold) * Number of Days
Step 1: Calculate Average Accounts Payable
Accounts Payable at the beginning of the period (December 31, 2023): $6,849 million
Accounts Payable at the end of the period (March 31, 2024): $6,468 million
Average Accounts Payable = ($6,849 + $6,468) / 2 = $6,658.5 million
Step 2: Calculate Cost of Goods Sold (COGS)
Cost of Products Sold for Q1 2024: $4,035 million
Cost of Services Sold for Q1 2024: $1,548 million
Total COGS = $4,035 million + $1,548 million = $5,583 million
Step 3: Calculate Days Payable Outstanding (DPO)
Number of Days = 90
DPO = (6,658.5 / 5,583) * 90 = 1.192 * 90 ≈ 107.28 days
|
Ratio
|
3, 5
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
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q_Ra122
|
What is the Asset Turnover Ratio for Honeywell International Inc. over the three months ending March 31, 2024?
|
The Asset Turnover Ratio for Honeywell International Inc. for the three months ended March 31, 2024, is calculated as follows:
Asset Turnover Ratio = Net Sales / Average Total Assets
Net Sales = $9,105 million
Average Total Assets = (Total Assets at the beginning of the period + Total Assets at the end of the period) / 2
Average Total Assets = ($61,525 million + $65,645 million) / 2 = $63,585 million
Asset Turnover Ratio = 9,105 / 63,585 = 0.14
|
Ratio
|
3, 5
|
0000773840-24-000051
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PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | | |
|---:|:---------------------------------------------------------|:-----------------------------|:-----|:------------------------------------------------|:------|:------|:---|:------|
| 1 | | Three Months Ended March 31, | | | | | | |
| 2 | | | 2024 | | 2023 | | | |
| 3 | | | | (Dollars in millions, except per share amounts) | | | | |
| 4 | Product sales | | | $ | 6,263 | | $ | 6,310 |
| 5 | Service sales | | | 2,842 | | 2,554 | | |
| 6 | Net sales | | | 9,105 | | 8,864 | | |
| 7 | Costs, expenses and other | | | | | | | |
| 8 | Cost of products sold | | | 4,035 | | 4,068 | | |
| 9 | Cost of services sold | | | 1,548 | | 1,430 | | |
| 10 | Total Cost of products and services sold | | | 5,583 | | 5,498 | | |
| 11 | Research and development expenses | | | 360 | | 357 | | |
| 12 | Selling, general and administrative expenses | | | 1,302 | | 1,317 | | |
| 13 | Other (income) expense | | | (231) | | (260) | | |
| 14 | Interest and other financial charges | | | 220 | | 170 | | |
| 15 | Total costs, expenses and other | | | 7,234 | | 7,082 | | |
| 16 | Income before taxes | | | 1,871 | | 1,782 | | |
| 17 | Tax expense | | | 396 | | 374 | | |
| 18 | Net income | | | 1,475 | | 1,408 | | |
| 19 | Less: Net income attributable to noncontrolling interest | | | 12 | | 14 | | |
| 20 | Net income attributable to Honeywell | | | $ | 1,463 | | $ | 1,394 |
| 21 | Earnings per share of common stock-basic | | | $ | 2.24 | | $ | 2.09 |
| 22 | Earnings per share of common stock-assuming dilution | | | $ | 2.23 | | $ | 2.07 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 3:
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
, HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
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TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
The financial statements and related notes as of March 31, 2024, should be read in conjunction with the financial statements for the year ended December 31, 2023, contained in the Company's 2023 Annual Report on Form 10-K.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31,</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Product sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,263 </td><td></td><td colspan="3"></td><td>$</td><td>6,310 </td><td></td></tr><tr><td colspan="3">Service sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,842 </td><td></td><td colspan="3"></td><td colspan="2">2,554 </td><td></td></tr><tr><td colspan="3">Net sales</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">9,105 </td><td></td><td colspan="3"></td><td colspan="2">8,864 </td><td></td></tr><tr><td colspan="3">Costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of products sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">4,068 </td><td></td></tr><tr><td colspan="3">Cost of services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,548 </td><td></td><td colspan="3"></td><td colspan="2">1,430 </td><td></td></tr><tr><td colspan="3">Total Cost of products and services sold</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">5,583 </td><td></td><td colspan="3"></td><td colspan="2">5,498 </td><td></td></tr><tr><td colspan="3">Research and development expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">360 </td><td></td><td colspan="3"></td><td colspan="2">357 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,302 </td><td></td><td colspan="3"></td><td colspan="2">1,317 </td><td></td></tr><tr><td colspan="3">Other (income) expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(231)</td><td></td><td colspan="3"></td><td colspan="2">(260)</td><td></td></tr><tr><td colspan="3">Interest and other financial charges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">220 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Total costs, expenses and other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,234 </td><td></td><td colspan="3"></td><td colspan="2">7,082 </td><td></td></tr><tr><td colspan="3">Income before taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,871 </td><td></td><td colspan="3"></td><td colspan="2">1,782 </td><td></td></tr><tr><td colspan="3">Tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">396 </td><td></td><td colspan="3"></td><td colspan="2">374 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,475 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Less: Net income attributable to noncontrolling interest</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Net income attributable to Honeywell</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>1,463 </td><td></td><td colspan="3"></td><td>$</td><td>1,394 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-basic</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.24 </td><td></td><td colspan="3"></td><td>$</td><td>2.09 </td><td></td></tr><tr><td colspan="3">Earnings per share of common stock-assuming dilution</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>2.23 </td><td></td><td colspan="3"></td><td>$</td><td>2.07 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
3 Honeywell International Inc.
,
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
q_Ra123
|
What was the Current Ratio for Honeywell International Inc. as of March 31, 2024?
|
The Current Ratio for Honeywell International Inc. as of March 31, 2024, is calculated as follows:
Current Ratio = Current Assets / Current Liabilities
Current Assets = $27,434 million
Current Liabilities = $16,488 million
Current Ratio = 27,434 / 16,488 = 1.66
|
Ratio
|
5
|
0000773840-24-000051
|
PART I. FINANCIAL INFORMATION
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------|:----------------------|:-------|:------------------|:---------|:---|:-------|
| 1 | | March 31, 2024 | | December 31, 2023 | | | |
| 2 | | (Dollars in millions) | | | | | |
| 3 | ASSETS | | | | | | |
| 4 | Current assets | | | | | | |
| 5 | Cash and cash equivalents | $ | 11,756 | | | $ | 7,925 |
| 6 | Short-term investments | 249 | | | 170 | | |
| 7 | Accounts receivable, less allowances of $324 and $323, respectively | 7,476 | | | 7,530 | | |
| 8 | Inventories | 6,318 | | | 6,178 | | |
| 9 | Other current assets | 1,635 | | | 1,699 | | |
| 10 | Total current assets | 27,434 | | | 23,502 | | |
| 11 | Investments and long-term receivables | 975 | | | 939 | | |
| 12 | Property, plant and equipment-net | 5,698 | | | 5,660 | | |
| 13 | Goodwill | 17,985 | | | 18,049 | | |
| 14 | Other intangible assets-net | 3,136 | | | 3,231 | | |
| 15 | Insurance recoveries for asbestos-related liabilities | 164 | | | 170 | | |
| 16 | Deferred income taxes | 374 | | | 392 | | |
| 17 | Other assets | 9,879 | | | 9,582 | | |
| 18 | Total assets | $ | 65,645 | | | $ | 61,525 |
| 19 | LIABILITIES | | | | | | |
| 20 | Current liabilities | | | | | | |
| 21 | Accounts payable | $ | 6,468 | | | $ | 6,849 |
| 22 | Commercial paper and other short-term borrowings | 1,819 | | | 2,085 | | |
| 23 | Current maturities of long-term debt | 1,254 | | | 1,796 | | |
| 24 | Accrued liabilities | 6,947 | | | 7,809 | | |
| 25 | Total current liabilities | 16,488 | | | 18,539 | | |
| 26 | Long-term debt | 22,183 | | | 16,562 | | |
| 27 | Deferred income taxes | 2,063 | | | 2,094 | | |
| 28 | Postretirement benefit obligations other than pensions | 129 | | | 134 | | |
| 29 | Asbestos-related liabilities | 1,467 | | | 1,490 | | |
| 30 | Other liabilities | 6,263 | | | 6,265 | | |
| 31 | Redeemable noncontrolling interest | 7 | | | 7 | | |
| 32 | SHAREOWNERS' EQUITY | | | | | | |
| 33 | Capital-common stock issued | 958 | | | 958 | | |
| 34 | -additional paid-in capital | 9,353 | | | 9,062 | | |
| 35 | Common stock held in treasury, at cost | (38,544) | | | (38,008) | | |
| 36 | Accumulated other comprehensive income (loss) | (4,048) | | | (4,135) | | |
| 37 | Retained earnings | 48,735 | | | 47,979 | | |
| 38 | Total Honeywell shareowners' equity | 16,454 | | | 15,856 | | |
| 39 | Noncontrolling interest | 591 | | | 578 | | |
| 40 | Total shareowners' equity | 17,045 | | | 16,434 | | |
| 41 | Total liabilities, redeemable noncontrolling interest and shareowners' equity | $ | 65,645 | | | $ | 61,525 |
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
HONEYWELL INTERNATIONAL INC 10-Q form for quarterly period ended 2024-03-31, page 5:
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
TABLE OF CONTENTS
HONEYWELL INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3"> </td><td colspan="9">(Dollars in millions)</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Current assets</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,756 </td><td></td><td colspan="3"></td><td>$</td><td>7,925 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Accounts receivable, less allowances of $324 and $323, respectively</td><td colspan="2">7,476 </td><td></td><td colspan="3"></td><td colspan="2">7,530 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,318 </td><td></td><td colspan="3"></td><td colspan="2">6,178 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">1,635 </td><td></td><td colspan="3"></td><td colspan="2">1,699 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">27,434 </td><td></td><td colspan="3"></td><td colspan="2">23,502 </td><td></td></tr><tr><td colspan="3">Investments and long-term receivables</td><td colspan="2">975 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment-net</td><td colspan="2">5,698 </td><td></td><td colspan="3"></td><td colspan="2">5,660 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">17,985 </td><td></td><td colspan="3"></td><td colspan="2">18,049 </td><td></td></tr><tr><td colspan="3">Other intangible assets-net</td><td colspan="2">3,136 </td><td></td><td colspan="3"></td><td colspan="2">3,231 </td><td></td></tr><tr><td colspan="3">Insurance recoveries for asbestos-related liabilities</td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">170 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">9,879 </td><td></td><td colspan="3"></td><td colspan="2">9,582 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>6,468 </td><td></td><td colspan="3"></td><td>$</td><td>6,849 </td><td></td></tr><tr><td colspan="3">Commercial paper and other short-term borrowings</td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">2,085 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,254 </td><td></td><td colspan="3"></td><td colspan="2">1,796 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">6,947 </td><td></td><td colspan="3"></td><td colspan="2">7,809 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">16,488 </td><td></td><td colspan="3"></td><td colspan="2">18,539 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">22,183 </td><td></td><td colspan="3"></td><td colspan="2">16,562 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">2,063 </td><td></td><td colspan="3"></td><td colspan="2">2,094 </td><td></td></tr><tr><td colspan="3">Postretirement benefit obligations other than pensions</td><td colspan="2">129 </td><td></td><td colspan="3"></td><td colspan="2">134 </td><td></td></tr><tr><td colspan="3">Asbestos-related liabilities</td><td colspan="2">1,467 </td><td></td><td colspan="3"></td><td colspan="2">1,490 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">6,263 </td><td></td><td colspan="3"></td><td colspan="2">6,265 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest</td><td colspan="2">7 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td></td></tr><tr><td colspan="3">SHAREOWNERS' EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Capital-common stock issued</td><td colspan="2">958 </td><td></td><td colspan="3"></td><td colspan="2">958 </td><td></td></tr><tr><td colspan="3">-additional paid-in capital</td><td colspan="2">9,353 </td><td></td><td colspan="3"></td><td colspan="2">9,062 </td><td></td></tr><tr><td colspan="3">Common stock held in treasury, at cost</td><td colspan="2">(38,544)</td><td></td><td colspan="3"></td><td colspan="2">(38,008)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(4,048)</td><td></td><td colspan="3"></td><td colspan="2">(4,135)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">48,735 </td><td></td><td colspan="3"></td><td colspan="2">47,979 </td><td></td></tr><tr><td colspan="3">Total Honeywell shareowners' equity</td><td colspan="2">16,454 </td><td></td><td colspan="3"></td><td colspan="2">15,856 </td><td></td></tr><tr><td colspan="3">Noncontrolling interest</td><td colspan="2">591 </td><td></td><td colspan="3"></td><td colspan="2">578 </td><td></td></tr><tr><td colspan="3">Total shareowners' equity</td><td colspan="2">17,045 </td><td></td><td colspan="3"></td><td colspan="2">16,434 </td><td></td></tr><tr><td colspan="3">Total liabilities, redeemable noncontrolling interest and shareowners' equity</td><td>$</td><td>65,645 </td><td></td><td colspan="3"></td><td>$</td><td>61,525 </td><td></td></tr></table>
The Notes to Consolidated Financial Statements are an integral part of this statement.
5 Honeywell International Inc.
|
q_Ra124
|
What is the current ratio of Exxon Mobil for June 30, 2024?
|
The current ratio is calculated as:
Current Assets/Current Liabilities
96,238/ 70,763
=1.36
|
Ratio
|
5
|
0000034088-24-000050
|
Item 1. Financial Statements
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
q_Ra125
|
Calculate the quick ratio for ExxonMobil, excluding inventory, as of June 30, 2024.
|
Method 1: Quick Ratio = (Current Assets − Inventory) / Current Liabilities
Current Assets = $96,238 million
Inventory = $19,685 million (Crude oil, products, and merchandise) + $4,818 million (Materials and supplies) = $24,503 million
Current Liabilities = $70,763 million
Quick Ratio = (96,238 − 24,503) / 70,763
Quick Ratio = 71,735 / 70,763 ≈ 1.01
Method 2: Quick Ratio = (Cash and Cash Equivalents + Marketable Securities + Accounts Receivable) / Current Liabilities
Cash and Cash Equivalents = $25,565 million
Marketable Securities = $36,236 million
Accounts Receivable, net = $22,795 million
Current Liabilities = $131,624 million
Quick Ratio = (25,565 + 36,236 + 22,795) / 131,624
Quick Ratio = 84,596 / 131,624 ≈ 0.64
The quick ratio indicates that Apple Inc. has liquid assets to cover 64% of its short-term liabilities without relying on inventory.
|
Ratio
|
5
|
0000034088-24-000050
|
Item 1. Financial Statements
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
q_Ra126
|
What is ExxonMobil's cash ratio as of June 30, 2024?
|
Cash Ratio= Cash and Cash Equivalents/Current Liabilities
= (26,460+28)/70,763 =0.37
This low cash ratio indicates that cash and cash equivalents alone would not fully cover current liabilities.
|
Ratio
|
5
|
0000034088-24-000050
|
Item 1. Financial Statements
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
q_Ra127
|
What is ExxonMobil's net profit margin for the six months ended June 30, 2024?
|
Net Profit Margin= Net Income/Revenue ×100= 17,460/176,143 ×100=9.91%
This margin shows ExxonMobil’s profitability after all expenses, including taxes and interest.
|
Ratio
|
3
|
0000034088-24-000050
|
Item 1. Financial Statements
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3:
PART I. FINANCIAL INFORMATION
| | |
|---:|:-----------------------------|
| 1 | ITEM 1. FINANCIAL STATEMENTS |
| | |
|---:|:-------------------------------------------|
| 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------|
| 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | |
| 2 | 2024 | 2023 | | 2024 | 2023 | | |
| 3 | Revenues and other income | | | | | | |
| 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 |
| 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 |
| 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 |
| 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 |
| 8 | Costs and other deductions | | | | | | |
| 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 |
| 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 |
| 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 |
| 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 |
| 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 |
| 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 |
| 15 | Interest expense | | 271 | | 249 | 492 | 408 |
| 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 |
| 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 |
| 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 |
| 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 |
| 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 |
| 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 |
| 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 |
| 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | |
3
|
PART I. FINANCIAL INFORMATION
| | |
|---:|:-----------------------------|
| 1 | ITEM 1. FINANCIAL STATEMENTS |
| | |
|---:|:-------------------------------------------|
| 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------|
| 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | |
| 2 | 2024 | 2023 | | 2024 | 2023 | | |
| 3 | Revenues and other income | | | | | | |
| 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 |
| 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 |
| 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 |
| 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 |
| 8 | Costs and other deductions | | | | | | |
| 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 |
| 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 |
| 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 |
| 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 |
| 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 |
| 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 |
| 15 | Interest expense | | 271 | | 249 | 492 | 408 |
| 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 |
| 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 |
| 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 |
| 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 |
| 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 |
| 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 |
| 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 |
| 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | |
3
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3:
PART I. FINANCIAL INFORMATION
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3
|
PART I. FINANCIAL INFORMATION
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3
|
q_Ra128
|
Calculate the asset turnover ratio for ExxonMobil for the six months ended June 30, 2024.
|
Asset Turnover Ratio= Revenue/Total Assets = 176,143/460,707 =0.38
This ratio shows that ExxonMobil generated $0.38 in revenue for every dollar of assets, indicating moderate asset utilization.
|
Ratio
|
3, 5
|
0000034088-24-000050
|
Item 1. Financial Statements
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3:
PART I. FINANCIAL INFORMATION
| | |
|---:|:-----------------------------|
| 1 | ITEM 1. FINANCIAL STATEMENTS |
| | |
|---:|:-------------------------------------------|
| 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------|
| 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | |
| 2 | 2024 | 2023 | | 2024 | 2023 | | |
| 3 | Revenues and other income | | | | | | |
| 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 |
| 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 |
| 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 |
| 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 |
| 8 | Costs and other deductions | | | | | | |
| 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 |
| 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 |
| 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 |
| 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 |
| 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 |
| 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 |
| 15 | Interest expense | | 271 | | 249 | 492 | 408 |
| 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 |
| 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 |
| 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 |
| 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 |
| 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 |
| 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 |
| 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 |
| 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | |
3
, EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
PART I. FINANCIAL INFORMATION
| | |
|---:|:-----------------------------|
| 1 | ITEM 1. FINANCIAL STATEMENTS |
| | |
|---:|:-------------------------------------------|
| 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------|
| 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | |
| 2 | 2024 | 2023 | | 2024 | 2023 | | |
| 3 | Revenues and other income | | | | | | |
| 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 |
| 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 |
| 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 |
| 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 |
| 8 | Costs and other deductions | | | | | | |
| 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 |
| 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 |
| 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 |
| 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 |
| 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 |
| 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 |
| 15 | Interest expense | | 271 | | 249 | 492 | 408 |
| 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 |
| 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 |
| 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 |
| 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 |
| 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 |
| 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 |
| 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 |
| 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | |
3
,
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3:
PART I. FINANCIAL INFORMATION
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3
, EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
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PART I. FINANCIAL INFORMATION
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3
,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
q_Ra129
|
Calculate the receivables turnover ratio for ExxonMobil for the six months ended June 30, 2024.
|
Receivables Turnover Ratio= Revenue/Accounts Receivable =176,143/43,071 =4.09
This ratio implies that ExxonMobil collects its receivables approximately 4 times a year.
|
Ratio
|
3, 5
|
0000034088-24-000050
|
Item 1. Financial Statements
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3:
PART I. FINANCIAL INFORMATION
| | |
|---:|:-----------------------------|
| 1 | ITEM 1. FINANCIAL STATEMENTS |
| | |
|---:|:-------------------------------------------|
| 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------|
| 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | |
| 2 | 2024 | 2023 | | 2024 | 2023 | | |
| 3 | Revenues and other income | | | | | | |
| 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 |
| 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 |
| 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 |
| 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 |
| 8 | Costs and other deductions | | | | | | |
| 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 |
| 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 |
| 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 |
| 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 |
| 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 |
| 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 |
| 15 | Interest expense | | 271 | | 249 | 492 | 408 |
| 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 |
| 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 |
| 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 |
| 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 |
| 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 |
| 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 |
| 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 |
| 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | |
3
, EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
PART I. FINANCIAL INFORMATION
| | |
|---:|:-----------------------------|
| 1 | ITEM 1. FINANCIAL STATEMENTS |
| | |
|---:|:-------------------------------------------|
| 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------|
| 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | |
| 2 | 2024 | 2023 | | 2024 | 2023 | | |
| 3 | Revenues and other income | | | | | | |
| 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 |
| 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 |
| 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 |
| 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 |
| 8 | Costs and other deductions | | | | | | |
| 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 |
| 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 |
| 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 |
| 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 |
| 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 |
| 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 |
| 15 | Interest expense | | 271 | | 249 | 492 | 408 |
| 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 |
| 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 |
| 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 |
| 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 |
| 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 |
| 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 |
| 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 |
| 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | |
3
,
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3:
PART I. FINANCIAL INFORMATION
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3
, EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
PART I. FINANCIAL INFORMATION
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3
,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
q_Ra130
|
What is ExxonMobil’s debt-to-equity ratio as of June 30, 2024?
|
Debt-to-Equity Ratio= Total Debt/Total Equity = (36,565+6,621)/276,266 =0.16
This indicates a low reliance on debt in ExxonMobil’s capital structure.
|
Ratio
|
5
|
0000034088-24-000050
|
Item 1. Financial Statements
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
q_Ra131
|
Calculate ExxonMobil’s ROA for the six months ended June 30, 2024.
|
ROA= Net Income/ Total Assets ×100= 17,460/460,707 ×100=3.79%
ROA indicates ExxonMobil's efficiency in generating profit from its assets.
|
Ratio
|
3, 5
|
0000034088-24-000050
|
Item 1. Financial Statements
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3:
PART I. FINANCIAL INFORMATION
| | |
|---:|:-----------------------------|
| 1 | ITEM 1. FINANCIAL STATEMENTS |
| | |
|---:|:-------------------------------------------|
| 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------|
| 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | |
| 2 | 2024 | 2023 | | 2024 | 2023 | | |
| 3 | Revenues and other income | | | | | | |
| 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 |
| 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 |
| 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 |
| 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 |
| 8 | Costs and other deductions | | | | | | |
| 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 |
| 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 |
| 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 |
| 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 |
| 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 |
| 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 |
| 15 | Interest expense | | 271 | | 249 | 492 | 408 |
| 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 |
| 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 |
| 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 |
| 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 |
| 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 |
| 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 |
| 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 |
| 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | |
3
, EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
PART I. FINANCIAL INFORMATION
| | |
|---:|:-----------------------------|
| 1 | ITEM 1. FINANCIAL STATEMENTS |
| | |
|---:|:-------------------------------------------|
| 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------|
| 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | |
| 2 | 2024 | 2023 | | 2024 | 2023 | | |
| 3 | Revenues and other income | | | | | | |
| 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 |
| 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 |
| 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 |
| 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 |
| 8 | Costs and other deductions | | | | | | |
| 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 |
| 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 |
| 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 |
| 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 |
| 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 |
| 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 |
| 15 | Interest expense | | 271 | | 249 | 492 | 408 |
| 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 |
| 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 |
| 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 |
| 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 |
| 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 |
| 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 |
| 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 |
| 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | |
3
,
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3:
PART I. FINANCIAL INFORMATION
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3
, EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
PART I. FINANCIAL INFORMATION
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3
,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
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q_Ra132
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What is ExxonMobil's ROE as of June 30, 2024?
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ROE= Net Income/Total Equity ×100= 17,460 / 276,266 ×100=6.32%
ROE indicates the return generated on shareholders' equity invested in ExxonMobil.
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Ratio
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3, 5
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0000034088-24-000050
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Item 1. Financial Statements
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3:
PART I. FINANCIAL INFORMATION
| | |
|---:|:-----------------------------|
| 1 | ITEM 1. FINANCIAL STATEMENTS |
| | |
|---:|:-------------------------------------------|
| 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------|
| 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | |
| 2 | 2024 | 2023 | | 2024 | 2023 | | |
| 3 | Revenues and other income | | | | | | |
| 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 |
| 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 |
| 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 |
| 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 |
| 8 | Costs and other deductions | | | | | | |
| 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 |
| 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 |
| 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 |
| 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 |
| 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 |
| 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 |
| 15 | Interest expense | | 271 | | 249 | 492 | 408 |
| 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 |
| 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 |
| 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 |
| 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 |
| 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 |
| 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 |
| 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 |
| 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | |
3
, EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
PART I. FINANCIAL INFORMATION
| | |
|---:|:-----------------------------|
| 1 | ITEM 1. FINANCIAL STATEMENTS |
| | |
|---:|:-------------------------------------------|
| 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------|
| 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | |
| 2 | 2024 | 2023 | | 2024 | 2023 | | |
| 3 | Revenues and other income | | | | | | |
| 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 |
| 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 |
| 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 |
| 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 |
| 8 | Costs and other deductions | | | | | | |
| 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 |
| 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 |
| 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 |
| 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 |
| 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 |
| 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 |
| 15 | Interest expense | | 271 | | 249 | 492 | 408 |
| 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 |
| 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 |
| 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 |
| 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 |
| 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 |
| 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 |
| 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 |
| 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 |
| 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | |
3
,
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3:
PART I. FINANCIAL INFORMATION
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3
, EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
PART I. FINANCIAL INFORMATION
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3
,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
q_Ra133
|
What is ExxonMobil’s debt ratio as of June 30, 2024?
|
Debt Ratio= Total Debt/Total Assets (36,565+6,621)/460,707 =0.094 = 9.4%. This low debt ratio reflects ExxonMobil’s conservative approach to debt.
|
Ratio
|
5
|
0000034088-24-000050
|
Item 1. Financial Statements
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
| | |
|---:|:-------------------------------------|
| 2 | CONDENSED CONSOLIDATED BALANCE SHEET |
| | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------|
| 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | |
| 3 | ASSETS | | | |
| 4 | Current assets | | | |
| 5 | Cash and cash equivalents | 26,460 | | 31,539 |
| 6 | Cash and cash equivalents – restricted | 28 | | 29 |
| 7 | Notes and accounts receivable – net | 43,071 | | 38,015 |
| 8 | Inventories | | | |
| 9 | Crude oil, products and merchandise | 19,685 | | 20,528 |
| 10 | Materials and supplies | 4,818 | | 4,592 |
| 11 | Other current assets | 2,176 | | 1,906 |
| 12 | Total current assets | 96,238 | | 96,609 |
| 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 |
| 14 | Property, plant and equipment – net | 298,283 | | 214,940 |
| 15 | Other assets, including intangibles – net | 18,238 | | 17,138 |
| 16 | Total Assets | 460,707 | | 376,317 |
| 18 | LIABILITIES | | | |
| 19 | Current liabilities | | | |
| 20 | Notes and loans payable | 6,621 | | 4,090 |
| 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 |
| 22 | Income taxes payable | 4,035 | | 3,189 |
| 23 | Total current liabilities | 70,763 | | 65,316 |
| 24 | Long-term debt | 36,565 | | 37,483 |
| 25 | Postretirement benefits reserves | 10,398 | | 10,496 |
| 26 | Deferred income tax liabilities | 40,080 | | 24,452 |
| 27 | Long-term obligations to equity companies | 1,612 | | 1,804 |
| 28 | Other long-term obligations | 25,023 | | 24,228 |
| 29 | Total Liabilities | 184,441 | | 163,779 |
| 31 | Commitments and contingencies (Note 3) | | | |
| 33 | EQUITY | | | |
| 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 |
| 35 | Earnings reinvested | 463,294 | | 453,927 |
| 36 | Accumulated other comprehensive income | (13,187) | | (11,989) |
| 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) |
| 38 | ExxonMobil share of equity | 268,405 | | 204,802 |
| 39 | Noncontrolling interests | 7,861 | | 7,736 |
| 40 | Total Equity | 276,266 | | 212,538 |
| 41 | Total Liabilities and Equity | 460,707 | | 376,317 |
| 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | |
5
|
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
|
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5
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q_Ra134
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What is the Earnings Per Share (EPS) for Apple Inc. for the nine months ended June 29, 2024?
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The Earnings Per Share (EPS) for Apple Inc. for the nine months ended June 29, 2024, is $5.11 (diluted)
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Ratio
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1
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0000320193-24-000081
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Item 1. Financial Statements
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Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:------------------|:-----------|:-------------|:-------|:------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Nine Months Ended | | | | | | | | |
| 2 | | June 29,2024 | | July 1,2023 | | June 29,2024 | | July 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 61,564 | | | $ | 60,584 | | $ | 224,908 | $ | 230,901 |
| 5 | Services | 24,213 | | | 21,213 | | | 71,197 | | 62,886 | | |
| 6 | Total net sales | 85,777 | | | 81,797 | | | 296,105 | | 293,787 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 39,803 | | | 39,136 | | | 140,667 | | 146,696 | | |
| 10 | Services | 6,296 | | | 6,248 | | | 18,634 | | 18,370 | | |
| 11 | Total cost of sales | 46,099 | | | 45,384 | | | 159,301 | | 165,066 | | |
| 12 | Gross margin | 39,678 | | | 36,413 | | | 136,804 | | 128,721 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 8,006 | | | 7,442 | | | 23,605 | | 22,608 | | |
| 16 | Selling, general and administrative | 6,320 | | | 5,973 | | | 19,574 | | 18,781 | | |
| 17 | Total operating expenses | 14,326 | | | 13,415 | | | 43,179 | | 41,389 | | |
| 19 | Operating income | 25,352 | | | 22,998 | | | 93,625 | | 87,332 | | |
| 20 | Other income/(expense), net | 142 | | | (265) | | | 250 | | (594) | | |
| 21 | Income before provision for income taxes | 25,494 | | | 22,733 | | | 93,875 | | 86,738 | | |
| 22 | Provision for income taxes | 4,046 | | | 2,852 | | | 14,875 | | 12,699 | | |
| 23 | Net income | $ | 21,448 | | | $ | 19,881 | | $ | 79,000 | $ | 74,039 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.40 | | | $ | 1.27 | | $ | 5.13 | $ | 4.69 |
| 27 | Diluted | $ | 1.40 | | | $ | 1.26 | | $ | 5.11 | $ | 4.67 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,287,521 | | | 15,697,614 | | | 15,401,047 | | 15,792,497 | | |
| 31 | Diluted | 15,348,175 | | | 15,775,021 | | | 15,463,175 | | 15,859,263 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:------------------|:-----------|:-------------|:-------|:------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Nine Months Ended | | | | | | | | |
| 2 | | June 29,2024 | | July 1,2023 | | June 29,2024 | | July 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 61,564 | | | $ | 60,584 | | $ | 224,908 | $ | 230,901 |
| 5 | Services | 24,213 | | | 21,213 | | | 71,197 | | 62,886 | | |
| 6 | Total net sales | 85,777 | | | 81,797 | | | 296,105 | | 293,787 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 39,803 | | | 39,136 | | | 140,667 | | 146,696 | | |
| 10 | Services | 6,296 | | | 6,248 | | | 18,634 | | 18,370 | | |
| 11 | Total cost of sales | 46,099 | | | 45,384 | | | 159,301 | | 165,066 | | |
| 12 | Gross margin | 39,678 | | | 36,413 | | | 136,804 | | 128,721 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 8,006 | | | 7,442 | | | 23,605 | | 22,608 | | |
| 16 | Selling, general and administrative | 6,320 | | | 5,973 | | | 19,574 | | 18,781 | | |
| 17 | Total operating expenses | 14,326 | | | 13,415 | | | 43,179 | | 41,389 | | |
| 19 | Operating income | 25,352 | | | 22,998 | | | 93,625 | | 87,332 | | |
| 20 | Other income/(expense), net | 142 | | | (265) | | | 250 | | (594) | | |
| 21 | Income before provision for income taxes | 25,494 | | | 22,733 | | | 93,875 | | 86,738 | | |
| 22 | Provision for income taxes | 4,046 | | | 2,852 | | | 14,875 | | 12,699 | | |
| 23 | Net income | $ | 21,448 | | | $ | 19,881 | | $ | 79,000 | $ | 74,039 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.40 | | | $ | 1.27 | | $ | 5.13 | $ | 4.69 |
| 27 | Diluted | $ | 1.40 | | | $ | 1.26 | | $ | 5.11 | $ | 4.67 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,287,521 | | | 15,697,614 | | | 15,401,047 | | 15,792,497 | | |
| 31 | Diluted | 15,348,175 | | | 15,775,021 | | | 15,463,175 | | 15,859,263 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Nine Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>61,564 </td><td></td><td colspan="3"></td><td>$</td><td>60,584 </td><td></td><td colspan="3"></td><td>$</td><td>224,908 </td><td></td><td colspan="3"></td><td>$</td><td>230,901 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">24,213 </td><td></td><td colspan="3"></td><td colspan="2">21,213 </td><td></td><td colspan="3"></td><td colspan="2">71,197 </td><td></td><td colspan="3"></td><td colspan="2">62,886 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">85,777 </td><td></td><td colspan="3"></td><td colspan="2">81,797 </td><td></td><td colspan="3"></td><td colspan="2">296,105 </td><td></td><td colspan="3"></td><td colspan="2">293,787 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">39,803 </td><td></td><td colspan="3"></td><td colspan="2">39,136 </td><td></td><td colspan="3"></td><td colspan="2">140,667 </td><td></td><td colspan="3"></td><td colspan="2">146,696 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,296 </td><td></td><td colspan="3"></td><td colspan="2">6,248 </td><td></td><td colspan="3"></td><td colspan="2">18,634 </td><td></td><td colspan="3"></td><td colspan="2">18,370 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">46,099 </td><td></td><td colspan="3"></td><td colspan="2">45,384 </td><td></td><td colspan="3"></td><td colspan="2">159,301 </td><td></td><td colspan="3"></td><td colspan="2">165,066 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">39,678 </td><td></td><td colspan="3"></td><td colspan="2">36,413 </td><td></td><td colspan="3"></td><td colspan="2">136,804 </td><td></td><td colspan="3"></td><td colspan="2">128,721 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">8,006 </td><td></td><td colspan="3"></td><td colspan="2">7,442 </td><td></td><td colspan="3"></td><td colspan="2">23,605 </td><td></td><td colspan="3"></td><td colspan="2">22,608 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,320 </td><td></td><td colspan="3"></td><td colspan="2">5,973 </td><td></td><td colspan="3"></td><td colspan="2">19,574 </td><td></td><td colspan="3"></td><td colspan="2">18,781 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,326 </td><td></td><td colspan="3"></td><td colspan="2">13,415 </td><td></td><td colspan="3"></td><td colspan="2">43,179 </td><td></td><td colspan="3"></td><td colspan="2">41,389 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">25,352 </td><td></td><td colspan="3"></td><td colspan="2">22,998 </td><td></td><td colspan="3"></td><td colspan="2">93,625 </td><td></td><td colspan="3"></td><td colspan="2">87,332 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">142 </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">250 </td><td></td><td colspan="3"></td><td colspan="2">(594)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">25,494 </td><td></td><td colspan="3"></td><td colspan="2">22,733 </td><td></td><td colspan="3"></td><td colspan="2">93,875 </td><td></td><td colspan="3"></td><td colspan="2">86,738 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,046 </td><td></td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">14,875 </td><td></td><td colspan="3"></td><td colspan="2">12,699 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>21,448 </td><td></td><td colspan="3"></td><td>$</td><td>19,881 </td><td></td><td colspan="3"></td><td>$</td><td>79,000 </td><td></td><td colspan="3"></td><td>$</td><td>74,039 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.27 </td><td></td><td colspan="3"></td><td>$</td><td>5.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.69 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.26 </td><td></td><td colspan="3"></td><td>$</td><td>5.11 </td><td></td><td colspan="3"></td><td>$</td><td>4.67 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,287,521 </td><td></td><td colspan="3"></td><td colspan="2">15,697,614 </td><td></td><td colspan="3"></td><td colspan="2">15,401,047 </td><td></td><td colspan="3"></td><td colspan="2">15,792,497 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,348,175 </td><td></td><td colspan="3"></td><td colspan="2">15,775,021 </td><td></td><td colspan="3"></td><td colspan="2">15,463,175 </td><td></td><td colspan="3"></td><td colspan="2">15,859,263 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Nine Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>61,564 </td><td></td><td colspan="3"></td><td>$</td><td>60,584 </td><td></td><td colspan="3"></td><td>$</td><td>224,908 </td><td></td><td colspan="3"></td><td>$</td><td>230,901 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">24,213 </td><td></td><td colspan="3"></td><td colspan="2">21,213 </td><td></td><td colspan="3"></td><td colspan="2">71,197 </td><td></td><td colspan="3"></td><td colspan="2">62,886 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">85,777 </td><td></td><td colspan="3"></td><td colspan="2">81,797 </td><td></td><td colspan="3"></td><td colspan="2">296,105 </td><td></td><td colspan="3"></td><td colspan="2">293,787 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">39,803 </td><td></td><td colspan="3"></td><td colspan="2">39,136 </td><td></td><td colspan="3"></td><td colspan="2">140,667 </td><td></td><td colspan="3"></td><td colspan="2">146,696 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,296 </td><td></td><td colspan="3"></td><td colspan="2">6,248 </td><td></td><td colspan="3"></td><td colspan="2">18,634 </td><td></td><td colspan="3"></td><td colspan="2">18,370 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">46,099 </td><td></td><td colspan="3"></td><td colspan="2">45,384 </td><td></td><td colspan="3"></td><td colspan="2">159,301 </td><td></td><td colspan="3"></td><td colspan="2">165,066 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">39,678 </td><td></td><td colspan="3"></td><td colspan="2">36,413 </td><td></td><td colspan="3"></td><td colspan="2">136,804 </td><td></td><td colspan="3"></td><td colspan="2">128,721 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">8,006 </td><td></td><td colspan="3"></td><td colspan="2">7,442 </td><td></td><td colspan="3"></td><td colspan="2">23,605 </td><td></td><td colspan="3"></td><td colspan="2">22,608 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,320 </td><td></td><td colspan="3"></td><td colspan="2">5,973 </td><td></td><td colspan="3"></td><td colspan="2">19,574 </td><td></td><td colspan="3"></td><td colspan="2">18,781 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,326 </td><td></td><td colspan="3"></td><td colspan="2">13,415 </td><td></td><td colspan="3"></td><td colspan="2">43,179 </td><td></td><td colspan="3"></td><td colspan="2">41,389 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">25,352 </td><td></td><td colspan="3"></td><td colspan="2">22,998 </td><td></td><td colspan="3"></td><td colspan="2">93,625 </td><td></td><td colspan="3"></td><td colspan="2">87,332 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">142 </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">250 </td><td></td><td colspan="3"></td><td colspan="2">(594)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">25,494 </td><td></td><td colspan="3"></td><td colspan="2">22,733 </td><td></td><td colspan="3"></td><td colspan="2">93,875 </td><td></td><td colspan="3"></td><td colspan="2">86,738 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,046 </td><td></td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">14,875 </td><td></td><td colspan="3"></td><td colspan="2">12,699 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>21,448 </td><td></td><td colspan="3"></td><td>$</td><td>19,881 </td><td></td><td colspan="3"></td><td>$</td><td>79,000 </td><td></td><td colspan="3"></td><td>$</td><td>74,039 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.27 </td><td></td><td colspan="3"></td><td>$</td><td>5.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.69 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.26 </td><td></td><td colspan="3"></td><td>$</td><td>5.11 </td><td></td><td colspan="3"></td><td>$</td><td>4.67 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,287,521 </td><td></td><td colspan="3"></td><td colspan="2">15,697,614 </td><td></td><td colspan="3"></td><td colspan="2">15,401,047 </td><td></td><td colspan="3"></td><td colspan="2">15,792,497 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,348,175 </td><td></td><td colspan="3"></td><td colspan="2">15,775,021 </td><td></td><td colspan="3"></td><td colspan="2">15,463,175 </td><td></td><td colspan="3"></td><td colspan="2">15,859,263 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
|
q_Ra135
|
What is the Debt Equity Ratio for Apple Inc. as of June 29, 2024?
|
The Debt Equity Ratio for Apple Inc. as of June 29, 2024, is calculated as follows:
Debt Equity Ratio = Total Debt / Shareholders' Equity
Total Debt (June 29, 2024) = $98,310 million (current term debt + non-current term debt)
Shareholders' Equity (June 29, 2024) = $66,708 million
Debt Equity Ratio = 98,310 / 66,708 = 1.47
|
Ratio
|
3
|
0000320193-24-000081
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | June 29,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 25,565 | | | $ | 29,965 |
| 5 | Marketable securities | 36,236 | | | 31,590 | | |
| 6 | Accounts receivable, net | 22,795 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 20,377 | | | 31,477 | | |
| 8 | Inventories | 6,165 | | | 6,331 | | |
| 9 | Other current assets | 14,297 | | | 14,695 | | |
| 10 | Total current assets | 125,435 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 91,240 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 44,502 | | | 43,715 | | |
| 15 | Other non-current assets | 70,435 | | | 64,758 | | |
| 16 | Total non-current assets | 206,177 | | | 209,017 | | |
| 17 | Total assets | $ | 331,612 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 47,574 | | | $ | 62,611 |
| 22 | Other current liabilities | 60,889 | | | 58,829 | | |
| 23 | Deferred revenue | 8,053 | | | 8,061 | | |
| 24 | Commercial paper | 2,994 | | | 5,985 | | |
| 25 | Term debt | 12,114 | | | 9,822 | | |
| 26 | Total current liabilities | 131,624 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 86,196 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,084 | | | 49,848 | | |
| 31 | Total non-current liabilities | 133,280 | | | 145,129 | | |
| 32 | Total liabilities | 264,904 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively | 79,850 | | | 73,812 | | |
| 38 | Accumulated deficit | (4,726) | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,416) | | | (11,452) | | |
| 40 | Total shareholders' equity | 66,708 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 331,612 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | June 29,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 25,565 | | | $ | 29,965 |
| 5 | Marketable securities | 36,236 | | | 31,590 | | |
| 6 | Accounts receivable, net | 22,795 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 20,377 | | | 31,477 | | |
| 8 | Inventories | 6,165 | | | 6,331 | | |
| 9 | Other current assets | 14,297 | | | 14,695 | | |
| 10 | Total current assets | 125,435 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 91,240 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 44,502 | | | 43,715 | | |
| 15 | Other non-current assets | 70,435 | | | 64,758 | | |
| 16 | Total non-current assets | 206,177 | | | 209,017 | | |
| 17 | Total assets | $ | 331,612 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 47,574 | | | $ | 62,611 |
| 22 | Other current liabilities | 60,889 | | | 58,829 | | |
| 23 | Deferred revenue | 8,053 | | | 8,061 | | |
| 24 | Commercial paper | 2,994 | | | 5,985 | | |
| 25 | Term debt | 12,114 | | | 9,822 | | |
| 26 | Total current liabilities | 131,624 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 86,196 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,084 | | | 49,848 | | |
| 31 | Total non-current liabilities | 133,280 | | | 145,129 | | |
| 32 | Total liabilities | 264,904 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively | 79,850 | | | 73,812 | | |
| 38 | Accumulated deficit | (4,726) | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,416) | | | (11,452) | | |
| 40 | Total shareholders' equity | 66,708 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 331,612 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>25,565 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">22,795 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">20,377 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,165 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">14,297 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">125,435 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">91,240 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">44,502 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,435 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">206,177 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>47,574 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">60,889 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,053 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">2,994 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">12,114 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">131,624 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">86,196 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,084 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">133,280 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">264,904 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">79,850 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(4,726)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,416)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">66,708 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>25,565 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">22,795 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">20,377 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,165 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">14,297 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">125,435 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">91,240 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">44,502 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,435 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">206,177 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>47,574 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">60,889 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,053 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">2,994 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">12,114 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">131,624 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">86,196 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,084 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">133,280 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">264,904 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">79,850 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(4,726)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,416)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">66,708 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
q_Ra136
|
What is the Current Ratio for Apple Inc. as of June 29, 2024?
|
The Current Ratio for Apple Inc. as of June 29, 2024, is calculated as follows:
Current Ratio = Current Assets / Current Liabilities
Current Assets (June 29, 2024) = $125,435 million
Current Liabilities (June 29, 2024) = $131,624 million
Current Ratio = 125,435 / 131,624 = 0.95
|
Ratio
|
3
|
0000320193-24-000081
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | June 29,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 25,565 | | | $ | 29,965 |
| 5 | Marketable securities | 36,236 | | | 31,590 | | |
| 6 | Accounts receivable, net | 22,795 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 20,377 | | | 31,477 | | |
| 8 | Inventories | 6,165 | | | 6,331 | | |
| 9 | Other current assets | 14,297 | | | 14,695 | | |
| 10 | Total current assets | 125,435 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 91,240 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 44,502 | | | 43,715 | | |
| 15 | Other non-current assets | 70,435 | | | 64,758 | | |
| 16 | Total non-current assets | 206,177 | | | 209,017 | | |
| 17 | Total assets | $ | 331,612 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 47,574 | | | $ | 62,611 |
| 22 | Other current liabilities | 60,889 | | | 58,829 | | |
| 23 | Deferred revenue | 8,053 | | | 8,061 | | |
| 24 | Commercial paper | 2,994 | | | 5,985 | | |
| 25 | Term debt | 12,114 | | | 9,822 | | |
| 26 | Total current liabilities | 131,624 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 86,196 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,084 | | | 49,848 | | |
| 31 | Total non-current liabilities | 133,280 | | | 145,129 | | |
| 32 | Total liabilities | 264,904 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively | 79,850 | | | 73,812 | | |
| 38 | Accumulated deficit | (4,726) | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,416) | | | (11,452) | | |
| 40 | Total shareholders' equity | 66,708 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 331,612 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | June 29,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 25,565 | | | $ | 29,965 |
| 5 | Marketable securities | 36,236 | | | 31,590 | | |
| 6 | Accounts receivable, net | 22,795 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 20,377 | | | 31,477 | | |
| 8 | Inventories | 6,165 | | | 6,331 | | |
| 9 | Other current assets | 14,297 | | | 14,695 | | |
| 10 | Total current assets | 125,435 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 91,240 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 44,502 | | | 43,715 | | |
| 15 | Other non-current assets | 70,435 | | | 64,758 | | |
| 16 | Total non-current assets | 206,177 | | | 209,017 | | |
| 17 | Total assets | $ | 331,612 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 47,574 | | | $ | 62,611 |
| 22 | Other current liabilities | 60,889 | | | 58,829 | | |
| 23 | Deferred revenue | 8,053 | | | 8,061 | | |
| 24 | Commercial paper | 2,994 | | | 5,985 | | |
| 25 | Term debt | 12,114 | | | 9,822 | | |
| 26 | Total current liabilities | 131,624 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 86,196 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,084 | | | 49,848 | | |
| 31 | Total non-current liabilities | 133,280 | | | 145,129 | | |
| 32 | Total liabilities | 264,904 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively | 79,850 | | | 73,812 | | |
| 38 | Accumulated deficit | (4,726) | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,416) | | | (11,452) | | |
| 40 | Total shareholders' equity | 66,708 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 331,612 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>25,565 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">22,795 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">20,377 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,165 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">14,297 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">125,435 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">91,240 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">44,502 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,435 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">206,177 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>47,574 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">60,889 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,053 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">2,994 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">12,114 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">131,624 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">86,196 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,084 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">133,280 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">264,904 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">79,850 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(4,726)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,416)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">66,708 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>25,565 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">22,795 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">20,377 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,165 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">14,297 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">125,435 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">91,240 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">44,502 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,435 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">206,177 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>47,574 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">60,889 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,053 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">2,994 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">12,114 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">131,624 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">86,196 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,084 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">133,280 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">264,904 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">79,850 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(4,726)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,416)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">66,708 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
q_Ra137
|
What is the Quick Ratio for Apple Inc. as of June 29, 2024?
|
Method 1: The Quick Ratio for Apple Inc. as of June 29, 2024, is calculated as follows:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Current Assets (June 29, 2024) = $125,435 million
Inventory (June 29, 2024) = $6,165 million
Current Liabilities (June 29, 2024) = $131,624 million
Quick Ratio = (125,435 - 6,165) / 131,624 = 0.91
Method 2: The Quick Ratio for Apple Inc. as of June 29, 2024, is calculated as follows:
Quick Ratio = (Cash and Cash Equivalents + Marketable Securities + Accounts Receivable) / Current Liabilities
Values (June 29, 2024):
Cash and Cash Equivalents = $25,565 million
Marketable Securities = $36,236 million
Accounts Receivable, net = $22,795 million
Current Liabilities = $131,624 million
Quick Ratio = (25,565 + 36,236 + 22,795) / 131,624
Quick Ratio = 84,596 / 131,624 ≈ 0.64
The quick ratio indicates that Apple Inc. can cover 64% of its short-term liabilities using only its most liquid assets, excluding inventory.
|
Ratio
|
3
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0000320193-24-000081
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | June 29,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 25,565 | | | $ | 29,965 |
| 5 | Marketable securities | 36,236 | | | 31,590 | | |
| 6 | Accounts receivable, net | 22,795 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 20,377 | | | 31,477 | | |
| 8 | Inventories | 6,165 | | | 6,331 | | |
| 9 | Other current assets | 14,297 | | | 14,695 | | |
| 10 | Total current assets | 125,435 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 91,240 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 44,502 | | | 43,715 | | |
| 15 | Other non-current assets | 70,435 | | | 64,758 | | |
| 16 | Total non-current assets | 206,177 | | | 209,017 | | |
| 17 | Total assets | $ | 331,612 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 47,574 | | | $ | 62,611 |
| 22 | Other current liabilities | 60,889 | | | 58,829 | | |
| 23 | Deferred revenue | 8,053 | | | 8,061 | | |
| 24 | Commercial paper | 2,994 | | | 5,985 | | |
| 25 | Term debt | 12,114 | | | 9,822 | | |
| 26 | Total current liabilities | 131,624 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 86,196 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,084 | | | 49,848 | | |
| 31 | Total non-current liabilities | 133,280 | | | 145,129 | | |
| 32 | Total liabilities | 264,904 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively | 79,850 | | | 73,812 | | |
| 38 | Accumulated deficit | (4,726) | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,416) | | | (11,452) | | |
| 40 | Total shareholders' equity | 66,708 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 331,612 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | June 29,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 25,565 | | | $ | 29,965 |
| 5 | Marketable securities | 36,236 | | | 31,590 | | |
| 6 | Accounts receivable, net | 22,795 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 20,377 | | | 31,477 | | |
| 8 | Inventories | 6,165 | | | 6,331 | | |
| 9 | Other current assets | 14,297 | | | 14,695 | | |
| 10 | Total current assets | 125,435 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 91,240 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 44,502 | | | 43,715 | | |
| 15 | Other non-current assets | 70,435 | | | 64,758 | | |
| 16 | Total non-current assets | 206,177 | | | 209,017 | | |
| 17 | Total assets | $ | 331,612 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 47,574 | | | $ | 62,611 |
| 22 | Other current liabilities | 60,889 | | | 58,829 | | |
| 23 | Deferred revenue | 8,053 | | | 8,061 | | |
| 24 | Commercial paper | 2,994 | | | 5,985 | | |
| 25 | Term debt | 12,114 | | | 9,822 | | |
| 26 | Total current liabilities | 131,624 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 86,196 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,084 | | | 49,848 | | |
| 31 | Total non-current liabilities | 133,280 | | | 145,129 | | |
| 32 | Total liabilities | 264,904 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively | 79,850 | | | 73,812 | | |
| 38 | Accumulated deficit | (4,726) | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,416) | | | (11,452) | | |
| 40 | Total shareholders' equity | 66,708 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 331,612 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>25,565 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">22,795 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">20,377 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,165 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">14,297 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">125,435 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">91,240 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">44,502 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,435 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">206,177 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>47,574 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">60,889 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,053 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">2,994 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">12,114 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">131,624 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">86,196 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,084 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">133,280 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">264,904 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">79,850 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(4,726)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,416)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">66,708 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>25,565 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">22,795 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">20,377 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,165 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">14,297 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">125,435 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">91,240 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">44,502 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,435 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">206,177 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>47,574 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">60,889 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,053 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">2,994 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">12,114 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">131,624 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">86,196 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,084 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">133,280 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">264,904 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">79,850 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(4,726)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,416)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">66,708 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
q_Ra138
|
What is the Inventory Turnover Ratio for Apple Inc. for the nine months ended June 29, 2024?
|
The Inventory Turnover Ratio for Apple Inc. for the nine months ended June 29, 2024, is calculated as follows:
Inventory Turnover = Cost of Goods Sold / Average Inventory
Cost of Goods Sold (June 29, 2024) = $159,301 million
Average Inventory = (Inventory at the beginning + Inventory at the end) / 2
Inventory at the beginning (September 30, 2023) = $6,331 million
Inventory at the end (June 29, 2024) = $6,165 million
Average Inventory = (6,331 + 6,165) / 2 = $6,248 million
Inventory Turnover = 159,301 / 6,248 = 25.50
|
Ratio
|
1, 3
|
0000320193-24-000081
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:------------------|:-----------|:-------------|:-------|:------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Nine Months Ended | | | | | | | | |
| 2 | | June 29,2024 | | July 1,2023 | | June 29,2024 | | July 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 61,564 | | | $ | 60,584 | | $ | 224,908 | $ | 230,901 |
| 5 | Services | 24,213 | | | 21,213 | | | 71,197 | | 62,886 | | |
| 6 | Total net sales | 85,777 | | | 81,797 | | | 296,105 | | 293,787 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 39,803 | | | 39,136 | | | 140,667 | | 146,696 | | |
| 10 | Services | 6,296 | | | 6,248 | | | 18,634 | | 18,370 | | |
| 11 | Total cost of sales | 46,099 | | | 45,384 | | | 159,301 | | 165,066 | | |
| 12 | Gross margin | 39,678 | | | 36,413 | | | 136,804 | | 128,721 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 8,006 | | | 7,442 | | | 23,605 | | 22,608 | | |
| 16 | Selling, general and administrative | 6,320 | | | 5,973 | | | 19,574 | | 18,781 | | |
| 17 | Total operating expenses | 14,326 | | | 13,415 | | | 43,179 | | 41,389 | | |
| 19 | Operating income | 25,352 | | | 22,998 | | | 93,625 | | 87,332 | | |
| 20 | Other income/(expense), net | 142 | | | (265) | | | 250 | | (594) | | |
| 21 | Income before provision for income taxes | 25,494 | | | 22,733 | | | 93,875 | | 86,738 | | |
| 22 | Provision for income taxes | 4,046 | | | 2,852 | | | 14,875 | | 12,699 | | |
| 23 | Net income | $ | 21,448 | | | $ | 19,881 | | $ | 79,000 | $ | 74,039 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.40 | | | $ | 1.27 | | $ | 5.13 | $ | 4.69 |
| 27 | Diluted | $ | 1.40 | | | $ | 1.26 | | $ | 5.11 | $ | 4.67 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,287,521 | | | 15,697,614 | | | 15,401,047 | | 15,792,497 | | |
| 31 | Diluted | 15,348,175 | | | 15,775,021 | | | 15,463,175 | | 15,859,263 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | June 29,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 25,565 | | | $ | 29,965 |
| 5 | Marketable securities | 36,236 | | | 31,590 | | |
| 6 | Accounts receivable, net | 22,795 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 20,377 | | | 31,477 | | |
| 8 | Inventories | 6,165 | | | 6,331 | | |
| 9 | Other current assets | 14,297 | | | 14,695 | | |
| 10 | Total current assets | 125,435 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 91,240 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 44,502 | | | 43,715 | | |
| 15 | Other non-current assets | 70,435 | | | 64,758 | | |
| 16 | Total non-current assets | 206,177 | | | 209,017 | | |
| 17 | Total assets | $ | 331,612 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 47,574 | | | $ | 62,611 |
| 22 | Other current liabilities | 60,889 | | | 58,829 | | |
| 23 | Deferred revenue | 8,053 | | | 8,061 | | |
| 24 | Commercial paper | 2,994 | | | 5,985 | | |
| 25 | Term debt | 12,114 | | | 9,822 | | |
| 26 | Total current liabilities | 131,624 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 86,196 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,084 | | | 49,848 | | |
| 31 | Total non-current liabilities | 133,280 | | | 145,129 | | |
| 32 | Total liabilities | 264,904 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively | 79,850 | | | 73,812 | | |
| 38 | Accumulated deficit | (4,726) | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,416) | | | (11,452) | | |
| 40 | Total shareholders' equity | 66,708 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 331,612 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:------------------|:-----------|:-------------|:-------|:------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Nine Months Ended | | | | | | | | |
| 2 | | June 29,2024 | | July 1,2023 | | June 29,2024 | | July 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 61,564 | | | $ | 60,584 | | $ | 224,908 | $ | 230,901 |
| 5 | Services | 24,213 | | | 21,213 | | | 71,197 | | 62,886 | | |
| 6 | Total net sales | 85,777 | | | 81,797 | | | 296,105 | | 293,787 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 39,803 | | | 39,136 | | | 140,667 | | 146,696 | | |
| 10 | Services | 6,296 | | | 6,248 | | | 18,634 | | 18,370 | | |
| 11 | Total cost of sales | 46,099 | | | 45,384 | | | 159,301 | | 165,066 | | |
| 12 | Gross margin | 39,678 | | | 36,413 | | | 136,804 | | 128,721 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 8,006 | | | 7,442 | | | 23,605 | | 22,608 | | |
| 16 | Selling, general and administrative | 6,320 | | | 5,973 | | | 19,574 | | 18,781 | | |
| 17 | Total operating expenses | 14,326 | | | 13,415 | | | 43,179 | | 41,389 | | |
| 19 | Operating income | 25,352 | | | 22,998 | | | 93,625 | | 87,332 | | |
| 20 | Other income/(expense), net | 142 | | | (265) | | | 250 | | (594) | | |
| 21 | Income before provision for income taxes | 25,494 | | | 22,733 | | | 93,875 | | 86,738 | | |
| 22 | Provision for income taxes | 4,046 | | | 2,852 | | | 14,875 | | 12,699 | | |
| 23 | Net income | $ | 21,448 | | | $ | 19,881 | | $ | 79,000 | $ | 74,039 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.40 | | | $ | 1.27 | | $ | 5.13 | $ | 4.69 |
| 27 | Diluted | $ | 1.40 | | | $ | 1.26 | | $ | 5.11 | $ | 4.67 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,287,521 | | | 15,697,614 | | | 15,401,047 | | 15,792,497 | | |
| 31 | Diluted | 15,348,175 | | | 15,775,021 | | | 15,463,175 | | 15,859,263 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | June 29,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 25,565 | | | $ | 29,965 |
| 5 | Marketable securities | 36,236 | | | 31,590 | | |
| 6 | Accounts receivable, net | 22,795 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 20,377 | | | 31,477 | | |
| 8 | Inventories | 6,165 | | | 6,331 | | |
| 9 | Other current assets | 14,297 | | | 14,695 | | |
| 10 | Total current assets | 125,435 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 91,240 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 44,502 | | | 43,715 | | |
| 15 | Other non-current assets | 70,435 | | | 64,758 | | |
| 16 | Total non-current assets | 206,177 | | | 209,017 | | |
| 17 | Total assets | $ | 331,612 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 47,574 | | | $ | 62,611 |
| 22 | Other current liabilities | 60,889 | | | 58,829 | | |
| 23 | Deferred revenue | 8,053 | | | 8,061 | | |
| 24 | Commercial paper | 2,994 | | | 5,985 | | |
| 25 | Term debt | 12,114 | | | 9,822 | | |
| 26 | Total current liabilities | 131,624 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 86,196 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,084 | | | 49,848 | | |
| 31 | Total non-current liabilities | 133,280 | | | 145,129 | | |
| 32 | Total liabilities | 264,904 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively | 79,850 | | | 73,812 | | |
| 38 | Accumulated deficit | (4,726) | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,416) | | | (11,452) | | |
| 40 | Total shareholders' equity | 66,708 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 331,612 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Nine Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>61,564 </td><td></td><td colspan="3"></td><td>$</td><td>60,584 </td><td></td><td colspan="3"></td><td>$</td><td>224,908 </td><td></td><td colspan="3"></td><td>$</td><td>230,901 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">24,213 </td><td></td><td colspan="3"></td><td colspan="2">21,213 </td><td></td><td colspan="3"></td><td colspan="2">71,197 </td><td></td><td colspan="3"></td><td colspan="2">62,886 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">85,777 </td><td></td><td colspan="3"></td><td colspan="2">81,797 </td><td></td><td colspan="3"></td><td colspan="2">296,105 </td><td></td><td colspan="3"></td><td colspan="2">293,787 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">39,803 </td><td></td><td colspan="3"></td><td colspan="2">39,136 </td><td></td><td colspan="3"></td><td colspan="2">140,667 </td><td></td><td colspan="3"></td><td colspan="2">146,696 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,296 </td><td></td><td colspan="3"></td><td colspan="2">6,248 </td><td></td><td colspan="3"></td><td colspan="2">18,634 </td><td></td><td colspan="3"></td><td colspan="2">18,370 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">46,099 </td><td></td><td colspan="3"></td><td colspan="2">45,384 </td><td></td><td colspan="3"></td><td colspan="2">159,301 </td><td></td><td colspan="3"></td><td colspan="2">165,066 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">39,678 </td><td></td><td colspan="3"></td><td colspan="2">36,413 </td><td></td><td colspan="3"></td><td colspan="2">136,804 </td><td></td><td colspan="3"></td><td colspan="2">128,721 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">8,006 </td><td></td><td colspan="3"></td><td colspan="2">7,442 </td><td></td><td colspan="3"></td><td colspan="2">23,605 </td><td></td><td colspan="3"></td><td colspan="2">22,608 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,320 </td><td></td><td colspan="3"></td><td colspan="2">5,973 </td><td></td><td colspan="3"></td><td colspan="2">19,574 </td><td></td><td colspan="3"></td><td colspan="2">18,781 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,326 </td><td></td><td colspan="3"></td><td colspan="2">13,415 </td><td></td><td colspan="3"></td><td colspan="2">43,179 </td><td></td><td colspan="3"></td><td colspan="2">41,389 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">25,352 </td><td></td><td colspan="3"></td><td colspan="2">22,998 </td><td></td><td colspan="3"></td><td colspan="2">93,625 </td><td></td><td colspan="3"></td><td colspan="2">87,332 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">142 </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">250 </td><td></td><td colspan="3"></td><td colspan="2">(594)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">25,494 </td><td></td><td colspan="3"></td><td colspan="2">22,733 </td><td></td><td colspan="3"></td><td colspan="2">93,875 </td><td></td><td colspan="3"></td><td colspan="2">86,738 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,046 </td><td></td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">14,875 </td><td></td><td colspan="3"></td><td colspan="2">12,699 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>21,448 </td><td></td><td colspan="3"></td><td>$</td><td>19,881 </td><td></td><td colspan="3"></td><td>$</td><td>79,000 </td><td></td><td colspan="3"></td><td>$</td><td>74,039 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.27 </td><td></td><td colspan="3"></td><td>$</td><td>5.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.69 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.26 </td><td></td><td colspan="3"></td><td>$</td><td>5.11 </td><td></td><td colspan="3"></td><td>$</td><td>4.67 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,287,521 </td><td></td><td colspan="3"></td><td colspan="2">15,697,614 </td><td></td><td colspan="3"></td><td colspan="2">15,401,047 </td><td></td><td colspan="3"></td><td colspan="2">15,792,497 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,348,175 </td><td></td><td colspan="3"></td><td colspan="2">15,775,021 </td><td></td><td colspan="3"></td><td colspan="2">15,463,175 </td><td></td><td colspan="3"></td><td colspan="2">15,859,263 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>25,565 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">22,795 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">20,377 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,165 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">14,297 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">125,435 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">91,240 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">44,502 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,435 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">206,177 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>47,574 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">60,889 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,053 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">2,994 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">12,114 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">131,624 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">86,196 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,084 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">133,280 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">264,904 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">79,850 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(4,726)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,416)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">66,708 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Nine Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>61,564 </td><td></td><td colspan="3"></td><td>$</td><td>60,584 </td><td></td><td colspan="3"></td><td>$</td><td>224,908 </td><td></td><td colspan="3"></td><td>$</td><td>230,901 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">24,213 </td><td></td><td colspan="3"></td><td colspan="2">21,213 </td><td></td><td colspan="3"></td><td colspan="2">71,197 </td><td></td><td colspan="3"></td><td colspan="2">62,886 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">85,777 </td><td></td><td colspan="3"></td><td colspan="2">81,797 </td><td></td><td colspan="3"></td><td colspan="2">296,105 </td><td></td><td colspan="3"></td><td colspan="2">293,787 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">39,803 </td><td></td><td colspan="3"></td><td colspan="2">39,136 </td><td></td><td colspan="3"></td><td colspan="2">140,667 </td><td></td><td colspan="3"></td><td colspan="2">146,696 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,296 </td><td></td><td colspan="3"></td><td colspan="2">6,248 </td><td></td><td colspan="3"></td><td colspan="2">18,634 </td><td></td><td colspan="3"></td><td colspan="2">18,370 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">46,099 </td><td></td><td colspan="3"></td><td colspan="2">45,384 </td><td></td><td colspan="3"></td><td colspan="2">159,301 </td><td></td><td colspan="3"></td><td colspan="2">165,066 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">39,678 </td><td></td><td colspan="3"></td><td colspan="2">36,413 </td><td></td><td colspan="3"></td><td colspan="2">136,804 </td><td></td><td colspan="3"></td><td colspan="2">128,721 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">8,006 </td><td></td><td colspan="3"></td><td colspan="2">7,442 </td><td></td><td colspan="3"></td><td colspan="2">23,605 </td><td></td><td colspan="3"></td><td colspan="2">22,608 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,320 </td><td></td><td colspan="3"></td><td colspan="2">5,973 </td><td></td><td colspan="3"></td><td colspan="2">19,574 </td><td></td><td colspan="3"></td><td colspan="2">18,781 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,326 </td><td></td><td colspan="3"></td><td colspan="2">13,415 </td><td></td><td colspan="3"></td><td colspan="2">43,179 </td><td></td><td colspan="3"></td><td colspan="2">41,389 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">25,352 </td><td></td><td colspan="3"></td><td colspan="2">22,998 </td><td></td><td colspan="3"></td><td colspan="2">93,625 </td><td></td><td colspan="3"></td><td colspan="2">87,332 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">142 </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">250 </td><td></td><td colspan="3"></td><td colspan="2">(594)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">25,494 </td><td></td><td colspan="3"></td><td colspan="2">22,733 </td><td></td><td colspan="3"></td><td colspan="2">93,875 </td><td></td><td colspan="3"></td><td colspan="2">86,738 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,046 </td><td></td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">14,875 </td><td></td><td colspan="3"></td><td colspan="2">12,699 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>21,448 </td><td></td><td colspan="3"></td><td>$</td><td>19,881 </td><td></td><td colspan="3"></td><td>$</td><td>79,000 </td><td></td><td colspan="3"></td><td>$</td><td>74,039 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.27 </td><td></td><td colspan="3"></td><td>$</td><td>5.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.69 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.26 </td><td></td><td colspan="3"></td><td>$</td><td>5.11 </td><td></td><td colspan="3"></td><td>$</td><td>4.67 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,287,521 </td><td></td><td colspan="3"></td><td colspan="2">15,697,614 </td><td></td><td colspan="3"></td><td colspan="2">15,401,047 </td><td></td><td colspan="3"></td><td colspan="2">15,792,497 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,348,175 </td><td></td><td colspan="3"></td><td colspan="2">15,775,021 </td><td></td><td colspan="3"></td><td colspan="2">15,463,175 </td><td></td><td colspan="3"></td><td colspan="2">15,859,263 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>25,565 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">22,795 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">20,377 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,165 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">14,297 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">125,435 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">91,240 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">44,502 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,435 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">206,177 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>47,574 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">60,889 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,053 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">2,994 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">12,114 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">131,624 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">86,196 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,084 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">133,280 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">264,904 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">79,850 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(4,726)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,416)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">66,708 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
q_Ra139
|
What is the Receivables Turnover Ratio for Apple Inc. for the nine months ended June 29, 2024?
|
The Receivables Turnover Ratio for Apple Inc. for the nine months ended June 29, 2024, is calculated as follows:
Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Net Credit Sales (June 29, 2024) = $296,105 million
Average Accounts Receivable = (Accounts Receivable at the beginning + Accounts Receivable at the end) / 2
Accounts Receivable at the beginning (September 30, 2023) = $29,508 million
Accounts Receivable at the end (June 29, 2024) = $22,795 million
Average Accounts Receivable = (29,508 + 22,795) / 2 = $26,152 million
Receivables Turnover = 296,105 / 26,152 = 11.32
|
Ratio
|
1, 3
|
0000320193-24-000081
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:------------------|:-----------|:-------------|:-------|:------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Nine Months Ended | | | | | | | | |
| 2 | | June 29,2024 | | July 1,2023 | | June 29,2024 | | July 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 61,564 | | | $ | 60,584 | | $ | 224,908 | $ | 230,901 |
| 5 | Services | 24,213 | | | 21,213 | | | 71,197 | | 62,886 | | |
| 6 | Total net sales | 85,777 | | | 81,797 | | | 296,105 | | 293,787 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 39,803 | | | 39,136 | | | 140,667 | | 146,696 | | |
| 10 | Services | 6,296 | | | 6,248 | | | 18,634 | | 18,370 | | |
| 11 | Total cost of sales | 46,099 | | | 45,384 | | | 159,301 | | 165,066 | | |
| 12 | Gross margin | 39,678 | | | 36,413 | | | 136,804 | | 128,721 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 8,006 | | | 7,442 | | | 23,605 | | 22,608 | | |
| 16 | Selling, general and administrative | 6,320 | | | 5,973 | | | 19,574 | | 18,781 | | |
| 17 | Total operating expenses | 14,326 | | | 13,415 | | | 43,179 | | 41,389 | | |
| 19 | Operating income | 25,352 | | | 22,998 | | | 93,625 | | 87,332 | | |
| 20 | Other income/(expense), net | 142 | | | (265) | | | 250 | | (594) | | |
| 21 | Income before provision for income taxes | 25,494 | | | 22,733 | | | 93,875 | | 86,738 | | |
| 22 | Provision for income taxes | 4,046 | | | 2,852 | | | 14,875 | | 12,699 | | |
| 23 | Net income | $ | 21,448 | | | $ | 19,881 | | $ | 79,000 | $ | 74,039 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.40 | | | $ | 1.27 | | $ | 5.13 | $ | 4.69 |
| 27 | Diluted | $ | 1.40 | | | $ | 1.26 | | $ | 5.11 | $ | 4.67 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,287,521 | | | 15,697,614 | | | 15,401,047 | | 15,792,497 | | |
| 31 | Diluted | 15,348,175 | | | 15,775,021 | | | 15,463,175 | | 15,859,263 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | June 29,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 25,565 | | | $ | 29,965 |
| 5 | Marketable securities | 36,236 | | | 31,590 | | |
| 6 | Accounts receivable, net | 22,795 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 20,377 | | | 31,477 | | |
| 8 | Inventories | 6,165 | | | 6,331 | | |
| 9 | Other current assets | 14,297 | | | 14,695 | | |
| 10 | Total current assets | 125,435 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 91,240 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 44,502 | | | 43,715 | | |
| 15 | Other non-current assets | 70,435 | | | 64,758 | | |
| 16 | Total non-current assets | 206,177 | | | 209,017 | | |
| 17 | Total assets | $ | 331,612 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 47,574 | | | $ | 62,611 |
| 22 | Other current liabilities | 60,889 | | | 58,829 | | |
| 23 | Deferred revenue | 8,053 | | | 8,061 | | |
| 24 | Commercial paper | 2,994 | | | 5,985 | | |
| 25 | Term debt | 12,114 | | | 9,822 | | |
| 26 | Total current liabilities | 131,624 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 86,196 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,084 | | | 49,848 | | |
| 31 | Total non-current liabilities | 133,280 | | | 145,129 | | |
| 32 | Total liabilities | 264,904 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively | 79,850 | | | 73,812 | | |
| 38 | Accumulated deficit | (4,726) | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,416) | | | (11,452) | | |
| 40 | Total shareholders' equity | 66,708 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 331,612 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:------------------|:-----------|:-------------|:-------|:------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Nine Months Ended | | | | | | | | |
| 2 | | June 29,2024 | | July 1,2023 | | June 29,2024 | | July 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 61,564 | | | $ | 60,584 | | $ | 224,908 | $ | 230,901 |
| 5 | Services | 24,213 | | | 21,213 | | | 71,197 | | 62,886 | | |
| 6 | Total net sales | 85,777 | | | 81,797 | | | 296,105 | | 293,787 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 39,803 | | | 39,136 | | | 140,667 | | 146,696 | | |
| 10 | Services | 6,296 | | | 6,248 | | | 18,634 | | 18,370 | | |
| 11 | Total cost of sales | 46,099 | | | 45,384 | | | 159,301 | | 165,066 | | |
| 12 | Gross margin | 39,678 | | | 36,413 | | | 136,804 | | 128,721 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 8,006 | | | 7,442 | | | 23,605 | | 22,608 | | |
| 16 | Selling, general and administrative | 6,320 | | | 5,973 | | | 19,574 | | 18,781 | | |
| 17 | Total operating expenses | 14,326 | | | 13,415 | | | 43,179 | | 41,389 | | |
| 19 | Operating income | 25,352 | | | 22,998 | | | 93,625 | | 87,332 | | |
| 20 | Other income/(expense), net | 142 | | | (265) | | | 250 | | (594) | | |
| 21 | Income before provision for income taxes | 25,494 | | | 22,733 | | | 93,875 | | 86,738 | | |
| 22 | Provision for income taxes | 4,046 | | | 2,852 | | | 14,875 | | 12,699 | | |
| 23 | Net income | $ | 21,448 | | | $ | 19,881 | | $ | 79,000 | $ | 74,039 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.40 | | | $ | 1.27 | | $ | 5.13 | $ | 4.69 |
| 27 | Diluted | $ | 1.40 | | | $ | 1.26 | | $ | 5.11 | $ | 4.67 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,287,521 | | | 15,697,614 | | | 15,401,047 | | 15,792,497 | | |
| 31 | Diluted | 15,348,175 | | | 15,775,021 | | | 15,463,175 | | 15,859,263 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | June 29,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 25,565 | | | $ | 29,965 |
| 5 | Marketable securities | 36,236 | | | 31,590 | | |
| 6 | Accounts receivable, net | 22,795 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 20,377 | | | 31,477 | | |
| 8 | Inventories | 6,165 | | | 6,331 | | |
| 9 | Other current assets | 14,297 | | | 14,695 | | |
| 10 | Total current assets | 125,435 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 91,240 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 44,502 | | | 43,715 | | |
| 15 | Other non-current assets | 70,435 | | | 64,758 | | |
| 16 | Total non-current assets | 206,177 | | | 209,017 | | |
| 17 | Total assets | $ | 331,612 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 47,574 | | | $ | 62,611 |
| 22 | Other current liabilities | 60,889 | | | 58,829 | | |
| 23 | Deferred revenue | 8,053 | | | 8,061 | | |
| 24 | Commercial paper | 2,994 | | | 5,985 | | |
| 25 | Term debt | 12,114 | | | 9,822 | | |
| 26 | Total current liabilities | 131,624 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 86,196 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,084 | | | 49,848 | | |
| 31 | Total non-current liabilities | 133,280 | | | 145,129 | | |
| 32 | Total liabilities | 264,904 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively | 79,850 | | | 73,812 | | |
| 38 | Accumulated deficit | (4,726) | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,416) | | | (11,452) | | |
| 40 | Total shareholders' equity | 66,708 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 331,612 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Nine Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>61,564 </td><td></td><td colspan="3"></td><td>$</td><td>60,584 </td><td></td><td colspan="3"></td><td>$</td><td>224,908 </td><td></td><td colspan="3"></td><td>$</td><td>230,901 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">24,213 </td><td></td><td colspan="3"></td><td colspan="2">21,213 </td><td></td><td colspan="3"></td><td colspan="2">71,197 </td><td></td><td colspan="3"></td><td colspan="2">62,886 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">85,777 </td><td></td><td colspan="3"></td><td colspan="2">81,797 </td><td></td><td colspan="3"></td><td colspan="2">296,105 </td><td></td><td colspan="3"></td><td colspan="2">293,787 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">39,803 </td><td></td><td colspan="3"></td><td colspan="2">39,136 </td><td></td><td colspan="3"></td><td colspan="2">140,667 </td><td></td><td colspan="3"></td><td colspan="2">146,696 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,296 </td><td></td><td colspan="3"></td><td colspan="2">6,248 </td><td></td><td colspan="3"></td><td colspan="2">18,634 </td><td></td><td colspan="3"></td><td colspan="2">18,370 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">46,099 </td><td></td><td colspan="3"></td><td colspan="2">45,384 </td><td></td><td colspan="3"></td><td colspan="2">159,301 </td><td></td><td colspan="3"></td><td colspan="2">165,066 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">39,678 </td><td></td><td colspan="3"></td><td colspan="2">36,413 </td><td></td><td colspan="3"></td><td colspan="2">136,804 </td><td></td><td colspan="3"></td><td colspan="2">128,721 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">8,006 </td><td></td><td colspan="3"></td><td colspan="2">7,442 </td><td></td><td colspan="3"></td><td colspan="2">23,605 </td><td></td><td colspan="3"></td><td colspan="2">22,608 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,320 </td><td></td><td colspan="3"></td><td colspan="2">5,973 </td><td></td><td colspan="3"></td><td colspan="2">19,574 </td><td></td><td colspan="3"></td><td colspan="2">18,781 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,326 </td><td></td><td colspan="3"></td><td colspan="2">13,415 </td><td></td><td colspan="3"></td><td colspan="2">43,179 </td><td></td><td colspan="3"></td><td colspan="2">41,389 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">25,352 </td><td></td><td colspan="3"></td><td colspan="2">22,998 </td><td></td><td colspan="3"></td><td colspan="2">93,625 </td><td></td><td colspan="3"></td><td colspan="2">87,332 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">142 </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">250 </td><td></td><td colspan="3"></td><td colspan="2">(594)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">25,494 </td><td></td><td colspan="3"></td><td colspan="2">22,733 </td><td></td><td colspan="3"></td><td colspan="2">93,875 </td><td></td><td colspan="3"></td><td colspan="2">86,738 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,046 </td><td></td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">14,875 </td><td></td><td colspan="3"></td><td colspan="2">12,699 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>21,448 </td><td></td><td colspan="3"></td><td>$</td><td>19,881 </td><td></td><td colspan="3"></td><td>$</td><td>79,000 </td><td></td><td colspan="3"></td><td>$</td><td>74,039 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.27 </td><td></td><td colspan="3"></td><td>$</td><td>5.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.69 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.26 </td><td></td><td colspan="3"></td><td>$</td><td>5.11 </td><td></td><td colspan="3"></td><td>$</td><td>4.67 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,287,521 </td><td></td><td colspan="3"></td><td colspan="2">15,697,614 </td><td></td><td colspan="3"></td><td colspan="2">15,401,047 </td><td></td><td colspan="3"></td><td colspan="2">15,792,497 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,348,175 </td><td></td><td colspan="3"></td><td colspan="2">15,775,021 </td><td></td><td colspan="3"></td><td colspan="2">15,463,175 </td><td></td><td colspan="3"></td><td colspan="2">15,859,263 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>25,565 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">22,795 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">20,377 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,165 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">14,297 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">125,435 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">91,240 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">44,502 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,435 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">206,177 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>47,574 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">60,889 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,053 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">2,994 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">12,114 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">131,624 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">86,196 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,084 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">133,280 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">264,904 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">79,850 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(4,726)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,416)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">66,708 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Nine Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>61,564 </td><td></td><td colspan="3"></td><td>$</td><td>60,584 </td><td></td><td colspan="3"></td><td>$</td><td>224,908 </td><td></td><td colspan="3"></td><td>$</td><td>230,901 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">24,213 </td><td></td><td colspan="3"></td><td colspan="2">21,213 </td><td></td><td colspan="3"></td><td colspan="2">71,197 </td><td></td><td colspan="3"></td><td colspan="2">62,886 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">85,777 </td><td></td><td colspan="3"></td><td colspan="2">81,797 </td><td></td><td colspan="3"></td><td colspan="2">296,105 </td><td></td><td colspan="3"></td><td colspan="2">293,787 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">39,803 </td><td></td><td colspan="3"></td><td colspan="2">39,136 </td><td></td><td colspan="3"></td><td colspan="2">140,667 </td><td></td><td colspan="3"></td><td colspan="2">146,696 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,296 </td><td></td><td colspan="3"></td><td colspan="2">6,248 </td><td></td><td colspan="3"></td><td colspan="2">18,634 </td><td></td><td colspan="3"></td><td colspan="2">18,370 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">46,099 </td><td></td><td colspan="3"></td><td colspan="2">45,384 </td><td></td><td colspan="3"></td><td colspan="2">159,301 </td><td></td><td colspan="3"></td><td colspan="2">165,066 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">39,678 </td><td></td><td colspan="3"></td><td colspan="2">36,413 </td><td></td><td colspan="3"></td><td colspan="2">136,804 </td><td></td><td colspan="3"></td><td colspan="2">128,721 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">8,006 </td><td></td><td colspan="3"></td><td colspan="2">7,442 </td><td></td><td colspan="3"></td><td colspan="2">23,605 </td><td></td><td colspan="3"></td><td colspan="2">22,608 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,320 </td><td></td><td colspan="3"></td><td colspan="2">5,973 </td><td></td><td colspan="3"></td><td colspan="2">19,574 </td><td></td><td colspan="3"></td><td colspan="2">18,781 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,326 </td><td></td><td colspan="3"></td><td colspan="2">13,415 </td><td></td><td colspan="3"></td><td colspan="2">43,179 </td><td></td><td colspan="3"></td><td colspan="2">41,389 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">25,352 </td><td></td><td colspan="3"></td><td colspan="2">22,998 </td><td></td><td colspan="3"></td><td colspan="2">93,625 </td><td></td><td colspan="3"></td><td colspan="2">87,332 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">142 </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">250 </td><td></td><td colspan="3"></td><td colspan="2">(594)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">25,494 </td><td></td><td colspan="3"></td><td colspan="2">22,733 </td><td></td><td colspan="3"></td><td colspan="2">93,875 </td><td></td><td colspan="3"></td><td colspan="2">86,738 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,046 </td><td></td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">14,875 </td><td></td><td colspan="3"></td><td colspan="2">12,699 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>21,448 </td><td></td><td colspan="3"></td><td>$</td><td>19,881 </td><td></td><td colspan="3"></td><td>$</td><td>79,000 </td><td></td><td colspan="3"></td><td>$</td><td>74,039 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.27 </td><td></td><td colspan="3"></td><td>$</td><td>5.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.69 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.40 </td><td></td><td colspan="3"></td><td>$</td><td>1.26 </td><td></td><td colspan="3"></td><td>$</td><td>5.11 </td><td></td><td colspan="3"></td><td>$</td><td>4.67 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,287,521 </td><td></td><td colspan="3"></td><td colspan="2">15,697,614 </td><td></td><td colspan="3"></td><td colspan="2">15,401,047 </td><td></td><td colspan="3"></td><td colspan="2">15,792,497 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,348,175 </td><td></td><td colspan="3"></td><td colspan="2">15,775,021 </td><td></td><td colspan="3"></td><td colspan="2">15,463,175 </td><td></td><td colspan="3"></td><td colspan="2">15,859,263 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>25,565 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">22,795 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">20,377 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,165 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">14,297 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">125,435 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">91,240 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">44,502 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,435 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">206,177 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>47,574 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">60,889 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,053 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">2,994 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">12,114 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">131,624 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">86,196 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,084 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">133,280 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">264,904 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">79,850 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(4,726)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,416)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">66,708 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>331,612 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q3 2024 Form 10-Q | 3
|
q_Ra140
|
What is the Return on Equity (ROE) for Apple Inc. for the six months ended March 30, 2024?
|
The Return on Equity (ROE) for Apple Inc. for the six months ended March 30, 2024, is calculated as follows:
ROE = (Net Income / Shareholder's Equity) * 100
Net Income (six months ended March 30, 2024) = $57,552 million
Shareholder's Equity (ending balance) = $74,194 million
ROE = (57,552 / 74,194) * 100 = 77.56%
|
Ratio
|
1, 4
|
0000320193-24-000069
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:-----------------|:-----------|:--------------|:-------|:-------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | | |
| 2 | | March 30,2024 | | April 1,2023 | | March 30,2024 | | April 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 66,886 | | | $ | 73,929 | | $ | 163,344 | $ | 170,317 |
| 5 | Services | 23,867 | | | 20,907 | | | 46,984 | | 41,673 | | |
| 6 | Total net sales | 90,753 | | | 94,836 | | | 210,328 | | 211,990 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 42,424 | | | 46,795 | | | 100,864 | | 107,560 | | |
| 10 | Services | 6,058 | | | 6,065 | | | 12,338 | | 12,122 | | |
| 11 | Total cost of sales | 48,482 | | | 52,860 | | | 113,202 | | 119,682 | | |
| 12 | Gross margin | 42,271 | | | 41,976 | | | 97,126 | | 92,308 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 7,903 | | | 7,457 | | | 15,599 | | 15,166 | | |
| 16 | Selling, general and administrative | 6,468 | | | 6,201 | | | 13,254 | | 12,808 | | |
| 17 | Total operating expenses | 14,371 | | | 13,658 | | | 28,853 | | 27,974 | | |
| 19 | Operating income | 27,900 | | | 28,318 | | | 68,273 | | 64,334 | | |
| 20 | Other income/(expense), net | 158 | | | 64 | | | 108 | | (329) | | |
| 21 | Income before provision for income taxes | 28,058 | | | 28,382 | | | 68,381 | | 64,005 | | |
| 22 | Provision for income taxes | 4,422 | | | 4,222 | | | 10,829 | | 9,847 | | |
| 23 | Net income | $ | 23,636 | | | $ | 24,160 | | $ | 57,552 | $ | 54,158 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.53 | | | $ | 1.53 | | $ | 3.72 | $ | 3.42 |
| 27 | Diluted | $ | 1.53 | | | $ | 1.52 | | $ | 3.71 | $ | 3.41 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,405,856 | | | 15,787,154 | | | 15,457,810 | | 15,839,939 | | |
| 31 | Diluted | 15,464,709 | | | 15,847,050 | | | 15,520,675 | | 15,901,384 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 4:
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)
(In millions, except per-share amounts)
| | | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------|:-------------------|:-------|:-----------------|:---------|:--------------|:-------|:-------------|:---|:---------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | | |
| 2 | | March 30,2024 | | April 1,2023 | | March 30,2024 | | April 1,2023 | | | | |
| 3 | Total shareholders' equity, beginning balances | $ | 74,100 | | | $ | 56,727 | | $ | 62,146 | $ | 50,672 |
| 5 | Common stock and additional paid-in capital: | | | | | | | | | | | |
| 6 | Beginning balances | 75,236 | | | 66,399 | | | 73,812 | | 64,849 | | |
| 7 | Common stock issued | 752 | | | 690 | | | 752 | | 690 | | |
| 8 | Common stock withheld related to net share settlement of equity awards | (222) | | | (281) | | | (1,882) | | (1,715) | | |
| 9 | Share-based compensation | 3,049 | | | 2,760 | | | 6,133 | | 5,744 | | |
| 10 | Ending balances | 78,815 | | | 69,568 | | | 78,815 | | 69,568 | | |
| 12 | Retained earnings/(Accumulated deficit): | | | | | | | | | | | |
| 13 | Beginning balances | 8,242 | | | 3,240 | | | (214) | | (3,068) | | |
| 14 | Net income | 23,636 | | | 24,160 | | | 57,552 | | 54,158 | | |
| 15 | Dividends and dividend equivalents declared | (3,746) | | | (3,684) | | | (7,520) | | (7,396) | | |
| 16 | Common stock withheld related to net share settlement of equity awards | (71) | | | (152) | | | (1,089) | | (1,130) | | |
| 17 | Common stock repurchased | (23,722) | | | (19,228) | | | (44,390) | | (38,228) | | |
| 18 | Ending balances | 4,339 | | | 4,336 | | | 4,339 | | 4,336 | | |
| 20 | Accumulated other comprehensive income/(loss): | | | | | | | | | | | |
| 21 | Beginning balances | (9,378) | | | (12,912) | | | (11,452) | | (11,109) | | |
| 22 | Other comprehensive income/(loss) | 418 | | | 1,166 | | | 2,492 | | (637) | | |
| 23 | Ending balances | (8,960) | | | (11,746) | | | (8,960) | | (11,746) | | |
| 25 | Total shareholders' equity, ending balances | $ | 74,194 | | | $ | 62,158 | | $ | 74,194 | $ | 62,158 |
| 27 | Dividends and dividend equivalents declared per share or RSU | $ | 0.24 | | | $ | 0.23 | | $ | 0.48 | $ | 0.46 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 4
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:-----------------|:-----------|:--------------|:-------|:-------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | | |
| 2 | | March 30,2024 | | April 1,2023 | | March 30,2024 | | April 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 66,886 | | | $ | 73,929 | | $ | 163,344 | $ | 170,317 |
| 5 | Services | 23,867 | | | 20,907 | | | 46,984 | | 41,673 | | |
| 6 | Total net sales | 90,753 | | | 94,836 | | | 210,328 | | 211,990 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 42,424 | | | 46,795 | | | 100,864 | | 107,560 | | |
| 10 | Services | 6,058 | | | 6,065 | | | 12,338 | | 12,122 | | |
| 11 | Total cost of sales | 48,482 | | | 52,860 | | | 113,202 | | 119,682 | | |
| 12 | Gross margin | 42,271 | | | 41,976 | | | 97,126 | | 92,308 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 7,903 | | | 7,457 | | | 15,599 | | 15,166 | | |
| 16 | Selling, general and administrative | 6,468 | | | 6,201 | | | 13,254 | | 12,808 | | |
| 17 | Total operating expenses | 14,371 | | | 13,658 | | | 28,853 | | 27,974 | | |
| 19 | Operating income | 27,900 | | | 28,318 | | | 68,273 | | 64,334 | | |
| 20 | Other income/(expense), net | 158 | | | 64 | | | 108 | | (329) | | |
| 21 | Income before provision for income taxes | 28,058 | | | 28,382 | | | 68,381 | | 64,005 | | |
| 22 | Provision for income taxes | 4,422 | | | 4,222 | | | 10,829 | | 9,847 | | |
| 23 | Net income | $ | 23,636 | | | $ | 24,160 | | $ | 57,552 | $ | 54,158 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.53 | | | $ | 1.53 | | $ | 3.72 | $ | 3.42 |
| 27 | Diluted | $ | 1.53 | | | $ | 1.52 | | $ | 3.71 | $ | 3.41 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,405,856 | | | 15,787,154 | | | 15,457,810 | | 15,839,939 | | |
| 31 | Diluted | 15,464,709 | | | 15,847,050 | | | 15,520,675 | | 15,901,384 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)
(In millions, except per-share amounts)
| | | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------|:-------------------|:-------|:-----------------|:---------|:--------------|:-------|:-------------|:---|:---------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | | |
| 2 | | March 30,2024 | | April 1,2023 | | March 30,2024 | | April 1,2023 | | | | |
| 3 | Total shareholders' equity, beginning balances | $ | 74,100 | | | $ | 56,727 | | $ | 62,146 | $ | 50,672 |
| 5 | Common stock and additional paid-in capital: | | | | | | | | | | | |
| 6 | Beginning balances | 75,236 | | | 66,399 | | | 73,812 | | 64,849 | | |
| 7 | Common stock issued | 752 | | | 690 | | | 752 | | 690 | | |
| 8 | Common stock withheld related to net share settlement of equity awards | (222) | | | (281) | | | (1,882) | | (1,715) | | |
| 9 | Share-based compensation | 3,049 | | | 2,760 | | | 6,133 | | 5,744 | | |
| 10 | Ending balances | 78,815 | | | 69,568 | | | 78,815 | | 69,568 | | |
| 12 | Retained earnings/(Accumulated deficit): | | | | | | | | | | | |
| 13 | Beginning balances | 8,242 | | | 3,240 | | | (214) | | (3,068) | | |
| 14 | Net income | 23,636 | | | 24,160 | | | 57,552 | | 54,158 | | |
| 15 | Dividends and dividend equivalents declared | (3,746) | | | (3,684) | | | (7,520) | | (7,396) | | |
| 16 | Common stock withheld related to net share settlement of equity awards | (71) | | | (152) | | | (1,089) | | (1,130) | | |
| 17 | Common stock repurchased | (23,722) | | | (19,228) | | | (44,390) | | (38,228) | | |
| 18 | Ending balances | 4,339 | | | 4,336 | | | 4,339 | | 4,336 | | |
| 20 | Accumulated other comprehensive income/(loss): | | | | | | | | | | | |
| 21 | Beginning balances | (9,378) | | | (12,912) | | | (11,452) | | (11,109) | | |
| 22 | Other comprehensive income/(loss) | 418 | | | 1,166 | | | 2,492 | | (637) | | |
| 23 | Ending balances | (8,960) | | | (11,746) | | | (8,960) | | (11,746) | | |
| 25 | Total shareholders' equity, ending balances | $ | 74,194 | | | $ | 62,158 | | $ | 74,194 | $ | 62,158 |
| 27 | Dividends and dividend equivalents declared per share or RSU | $ | 0.24 | | | $ | 0.23 | | $ | 0.48 | $ | 0.46 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 4
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>66,886 </td><td></td><td colspan="3"></td><td>$</td><td>73,929 </td><td></td><td colspan="3"></td><td>$</td><td>163,344 </td><td></td><td colspan="3"></td><td>$</td><td>170,317 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">23,867 </td><td></td><td colspan="3"></td><td colspan="2">20,907 </td><td></td><td colspan="3"></td><td colspan="2">46,984 </td><td></td><td colspan="3"></td><td colspan="2">41,673 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">90,753 </td><td></td><td colspan="3"></td><td colspan="2">94,836 </td><td></td><td colspan="3"></td><td colspan="2">210,328 </td><td></td><td colspan="3"></td><td colspan="2">211,990 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">42,424 </td><td></td><td colspan="3"></td><td colspan="2">46,795 </td><td></td><td colspan="3"></td><td colspan="2">100,864 </td><td></td><td colspan="3"></td><td colspan="2">107,560 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,058 </td><td></td><td colspan="3"></td><td colspan="2">6,065 </td><td></td><td colspan="3"></td><td colspan="2">12,338 </td><td></td><td colspan="3"></td><td colspan="2">12,122 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">48,482 </td><td></td><td colspan="3"></td><td colspan="2">52,860 </td><td></td><td colspan="3"></td><td colspan="2">113,202 </td><td></td><td colspan="3"></td><td colspan="2">119,682 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">42,271 </td><td></td><td colspan="3"></td><td colspan="2">41,976 </td><td></td><td colspan="3"></td><td colspan="2">97,126 </td><td></td><td colspan="3"></td><td colspan="2">92,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">7,903 </td><td></td><td colspan="3"></td><td colspan="2">7,457 </td><td></td><td colspan="3"></td><td colspan="2">15,599 </td><td></td><td colspan="3"></td><td colspan="2">15,166 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,468 </td><td></td><td colspan="3"></td><td colspan="2">6,201 </td><td></td><td colspan="3"></td><td colspan="2">13,254 </td><td></td><td colspan="3"></td><td colspan="2">12,808 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,371 </td><td></td><td colspan="3"></td><td colspan="2">13,658 </td><td></td><td colspan="3"></td><td colspan="2">28,853 </td><td></td><td colspan="3"></td><td colspan="2">27,974 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">27,900 </td><td></td><td colspan="3"></td><td colspan="2">28,318 </td><td></td><td colspan="3"></td><td colspan="2">68,273 </td><td></td><td colspan="3"></td><td colspan="2">64,334 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">108 </td><td></td><td colspan="3"></td><td colspan="2">(329)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">28,058 </td><td></td><td colspan="3"></td><td colspan="2">28,382 </td><td></td><td colspan="3"></td><td colspan="2">68,381 </td><td></td><td colspan="3"></td><td colspan="2">64,005 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,422 </td><td></td><td colspan="3"></td><td colspan="2">4,222 </td><td></td><td colspan="3"></td><td colspan="2">10,829 </td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>23,636 </td><td></td><td colspan="3"></td><td>$</td><td>24,160 </td><td></td><td colspan="3"></td><td>$</td><td>57,552 </td><td></td><td colspan="3"></td><td>$</td><td>54,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>3.72 </td><td></td><td colspan="3"></td><td>$</td><td>3.42 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.52 </td><td></td><td colspan="3"></td><td>$</td><td>3.71 </td><td></td><td colspan="3"></td><td>$</td><td>3.41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,405,856 </td><td></td><td colspan="3"></td><td colspan="2">15,787,154 </td><td></td><td colspan="3"></td><td colspan="2">15,457,810 </td><td></td><td colspan="3"></td><td colspan="2">15,839,939 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,464,709 </td><td></td><td colspan="3"></td><td colspan="2">15,847,050 </td><td></td><td colspan="3"></td><td colspan="2">15,520,675 </td><td></td><td colspan="3"></td><td colspan="2">15,901,384 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 4:
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)
(In millions, except per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td></tr><tr><td colspan="3">Total shareholders' equity, beginning balances</td><td>$</td><td>74,100 </td><td></td><td colspan="3"></td><td>$</td><td>56,727 </td><td></td><td colspan="3"></td><td>$</td><td>62,146 </td><td></td><td colspan="3"></td><td>$</td><td>50,672 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balances</td><td colspan="2">75,236 </td><td></td><td colspan="3"></td><td colspan="2">66,399 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td><td colspan="3"></td><td colspan="2">64,849 </td><td></td></tr><tr><td colspan="3">Common stock issued</td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">690 </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">690 </td><td></td></tr><tr><td colspan="3">Common stock withheld related to net share settlement of equity awards</td><td colspan="2">(222)</td><td></td><td colspan="3"></td><td colspan="2">(281)</td><td></td><td colspan="3"></td><td colspan="2">(1,882)</td><td></td><td colspan="3"></td><td colspan="2">(1,715)</td><td></td></tr><tr><td colspan="3">Share-based compensation</td><td colspan="2">3,049 </td><td></td><td colspan="3"></td><td colspan="2">2,760 </td><td></td><td colspan="3"></td><td colspan="2">6,133 </td><td></td><td colspan="3"></td><td colspan="2">5,744 </td><td></td></tr><tr><td colspan="3">Ending balances</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">69,568 </td><td></td><td colspan="3"></td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">69,568 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balances</td><td colspan="2">8,242 </td><td></td><td colspan="3"></td><td colspan="2">3,240 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">(3,068)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">23,636 </td><td></td><td colspan="3"></td><td colspan="2">24,160 </td><td></td><td colspan="3"></td><td colspan="2">57,552 </td><td></td><td colspan="3"></td><td colspan="2">54,158 </td><td></td></tr><tr><td colspan="3">Dividends and dividend equivalents declared</td><td colspan="2">(3,746)</td><td></td><td colspan="3"></td><td colspan="2">(3,684)</td><td></td><td colspan="3"></td><td colspan="2">(7,520)</td><td></td><td colspan="3"></td><td colspan="2">(7,396)</td><td></td></tr><tr><td colspan="3">Common stock withheld related to net share settlement of equity awards</td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(152)</td><td></td><td colspan="3"></td><td colspan="2">(1,089)</td><td></td><td colspan="3"></td><td colspan="2">(1,130)</td><td></td></tr><tr><td colspan="3">Common stock repurchased</td><td colspan="2">(23,722)</td><td></td><td colspan="3"></td><td colspan="2">(19,228)</td><td></td><td colspan="3"></td><td colspan="2">(44,390)</td><td></td><td colspan="3"></td><td colspan="2">(38,228)</td><td></td></tr><tr><td colspan="3">Ending balances</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">4,336 </td><td></td><td colspan="3"></td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">4,336 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income/(loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balances</td><td colspan="2">(9,378)</td><td></td><td colspan="3"></td><td colspan="2">(12,912)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td><td colspan="3"></td><td colspan="2">(11,109)</td><td></td></tr><tr><td colspan="3">Other comprehensive income/(loss)</td><td colspan="2">418 </td><td></td><td colspan="3"></td><td colspan="2">1,166 </td><td></td><td colspan="3"></td><td colspan="2">2,492 </td><td></td><td colspan="3"></td><td colspan="2">(637)</td><td></td></tr><tr><td colspan="3">Ending balances</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,746)</td><td></td><td colspan="3"></td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,746)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total shareholders' equity, ending balances</td><td>$</td><td>74,194 </td><td></td><td colspan="3"></td><td>$</td><td>62,158 </td><td></td><td colspan="3"></td><td>$</td><td>74,194 </td><td></td><td colspan="3"></td><td>$</td><td>62,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends and dividend equivalents declared per share or RSU</td><td>$</td><td>0.24 </td><td></td><td colspan="3"></td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>0.48 </td><td></td><td colspan="3"></td><td>$</td><td>0.46 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 4
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>66,886 </td><td></td><td colspan="3"></td><td>$</td><td>73,929 </td><td></td><td colspan="3"></td><td>$</td><td>163,344 </td><td></td><td colspan="3"></td><td>$</td><td>170,317 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">23,867 </td><td></td><td colspan="3"></td><td colspan="2">20,907 </td><td></td><td colspan="3"></td><td colspan="2">46,984 </td><td></td><td colspan="3"></td><td colspan="2">41,673 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">90,753 </td><td></td><td colspan="3"></td><td colspan="2">94,836 </td><td></td><td colspan="3"></td><td colspan="2">210,328 </td><td></td><td colspan="3"></td><td colspan="2">211,990 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">42,424 </td><td></td><td colspan="3"></td><td colspan="2">46,795 </td><td></td><td colspan="3"></td><td colspan="2">100,864 </td><td></td><td colspan="3"></td><td colspan="2">107,560 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,058 </td><td></td><td colspan="3"></td><td colspan="2">6,065 </td><td></td><td colspan="3"></td><td colspan="2">12,338 </td><td></td><td colspan="3"></td><td colspan="2">12,122 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">48,482 </td><td></td><td colspan="3"></td><td colspan="2">52,860 </td><td></td><td colspan="3"></td><td colspan="2">113,202 </td><td></td><td colspan="3"></td><td colspan="2">119,682 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">42,271 </td><td></td><td colspan="3"></td><td colspan="2">41,976 </td><td></td><td colspan="3"></td><td colspan="2">97,126 </td><td></td><td colspan="3"></td><td colspan="2">92,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">7,903 </td><td></td><td colspan="3"></td><td colspan="2">7,457 </td><td></td><td colspan="3"></td><td colspan="2">15,599 </td><td></td><td colspan="3"></td><td colspan="2">15,166 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,468 </td><td></td><td colspan="3"></td><td colspan="2">6,201 </td><td></td><td colspan="3"></td><td colspan="2">13,254 </td><td></td><td colspan="3"></td><td colspan="2">12,808 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,371 </td><td></td><td colspan="3"></td><td colspan="2">13,658 </td><td></td><td colspan="3"></td><td colspan="2">28,853 </td><td></td><td colspan="3"></td><td colspan="2">27,974 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">27,900 </td><td></td><td colspan="3"></td><td colspan="2">28,318 </td><td></td><td colspan="3"></td><td colspan="2">68,273 </td><td></td><td colspan="3"></td><td colspan="2">64,334 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">108 </td><td></td><td colspan="3"></td><td colspan="2">(329)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">28,058 </td><td></td><td colspan="3"></td><td colspan="2">28,382 </td><td></td><td colspan="3"></td><td colspan="2">68,381 </td><td></td><td colspan="3"></td><td colspan="2">64,005 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,422 </td><td></td><td colspan="3"></td><td colspan="2">4,222 </td><td></td><td colspan="3"></td><td colspan="2">10,829 </td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>23,636 </td><td></td><td colspan="3"></td><td>$</td><td>24,160 </td><td></td><td colspan="3"></td><td>$</td><td>57,552 </td><td></td><td colspan="3"></td><td>$</td><td>54,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>3.72 </td><td></td><td colspan="3"></td><td>$</td><td>3.42 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.52 </td><td></td><td colspan="3"></td><td>$</td><td>3.71 </td><td></td><td colspan="3"></td><td>$</td><td>3.41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,405,856 </td><td></td><td colspan="3"></td><td colspan="2">15,787,154 </td><td></td><td colspan="3"></td><td colspan="2">15,457,810 </td><td></td><td colspan="3"></td><td colspan="2">15,839,939 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,464,709 </td><td></td><td colspan="3"></td><td colspan="2">15,847,050 </td><td></td><td colspan="3"></td><td colspan="2">15,520,675 </td><td></td><td colspan="3"></td><td colspan="2">15,901,384 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)
(In millions, except per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td></tr><tr><td colspan="3">Total shareholders' equity, beginning balances</td><td>$</td><td>74,100 </td><td></td><td colspan="3"></td><td>$</td><td>56,727 </td><td></td><td colspan="3"></td><td>$</td><td>62,146 </td><td></td><td colspan="3"></td><td>$</td><td>50,672 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balances</td><td colspan="2">75,236 </td><td></td><td colspan="3"></td><td colspan="2">66,399 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td><td colspan="3"></td><td colspan="2">64,849 </td><td></td></tr><tr><td colspan="3">Common stock issued</td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">690 </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">690 </td><td></td></tr><tr><td colspan="3">Common stock withheld related to net share settlement of equity awards</td><td colspan="2">(222)</td><td></td><td colspan="3"></td><td colspan="2">(281)</td><td></td><td colspan="3"></td><td colspan="2">(1,882)</td><td></td><td colspan="3"></td><td colspan="2">(1,715)</td><td></td></tr><tr><td colspan="3">Share-based compensation</td><td colspan="2">3,049 </td><td></td><td colspan="3"></td><td colspan="2">2,760 </td><td></td><td colspan="3"></td><td colspan="2">6,133 </td><td></td><td colspan="3"></td><td colspan="2">5,744 </td><td></td></tr><tr><td colspan="3">Ending balances</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">69,568 </td><td></td><td colspan="3"></td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">69,568 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balances</td><td colspan="2">8,242 </td><td></td><td colspan="3"></td><td colspan="2">3,240 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">(3,068)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">23,636 </td><td></td><td colspan="3"></td><td colspan="2">24,160 </td><td></td><td colspan="3"></td><td colspan="2">57,552 </td><td></td><td colspan="3"></td><td colspan="2">54,158 </td><td></td></tr><tr><td colspan="3">Dividends and dividend equivalents declared</td><td colspan="2">(3,746)</td><td></td><td colspan="3"></td><td colspan="2">(3,684)</td><td></td><td colspan="3"></td><td colspan="2">(7,520)</td><td></td><td colspan="3"></td><td colspan="2">(7,396)</td><td></td></tr><tr><td colspan="3">Common stock withheld related to net share settlement of equity awards</td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(152)</td><td></td><td colspan="3"></td><td colspan="2">(1,089)</td><td></td><td colspan="3"></td><td colspan="2">(1,130)</td><td></td></tr><tr><td colspan="3">Common stock repurchased</td><td colspan="2">(23,722)</td><td></td><td colspan="3"></td><td colspan="2">(19,228)</td><td></td><td colspan="3"></td><td colspan="2">(44,390)</td><td></td><td colspan="3"></td><td colspan="2">(38,228)</td><td></td></tr><tr><td colspan="3">Ending balances</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">4,336 </td><td></td><td colspan="3"></td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">4,336 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income/(loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beginning balances</td><td colspan="2">(9,378)</td><td></td><td colspan="3"></td><td colspan="2">(12,912)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td><td colspan="3"></td><td colspan="2">(11,109)</td><td></td></tr><tr><td colspan="3">Other comprehensive income/(loss)</td><td colspan="2">418 </td><td></td><td colspan="3"></td><td colspan="2">1,166 </td><td></td><td colspan="3"></td><td colspan="2">2,492 </td><td></td><td colspan="3"></td><td colspan="2">(637)</td><td></td></tr><tr><td colspan="3">Ending balances</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,746)</td><td></td><td colspan="3"></td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,746)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total shareholders' equity, ending balances</td><td>$</td><td>74,194 </td><td></td><td colspan="3"></td><td>$</td><td>62,158 </td><td></td><td colspan="3"></td><td>$</td><td>74,194 </td><td></td><td colspan="3"></td><td>$</td><td>62,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends and dividend equivalents declared per share or RSU</td><td>$</td><td>0.24 </td><td></td><td colspan="3"></td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>0.48 </td><td></td><td colspan="3"></td><td>$</td><td>0.46 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 4
|
q_Ra141
|
What is the Financial Leverage Ratio for Apple Inc. as of March 30, 2024?
|
The Financial Leverage Ratio for Apple Inc. as of March 30, 2024, is calculated as follows:
Financial Leverage Ratio = Total Assets / Shareholders' Equity
Total Assets = $337,411 million
Shareholders' Equity = $74,194 million
Financial Leverage Ratio = 337,411 / 74,194 = 4.55
|
Ratio
|
3
|
0000320193-24-000069
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
q_Ra142
|
What is the Long-term Debt to Capitalization Ratio for Apple Inc. as of March 30, 2024?
|
Long-term Debt to Capitalization Ratio = Long-term Debt / (Long-term Debt + Shareholders' Equity) = 91,831 / (91,831 + 74,194) = 0.55
|
Ratio
|
3
|
0000320193-24-000069
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
q_Ra143
|
What is the Cash Ratio for Apple Inc. as of March 30, 2024?
|
The Cash Ratio for Apple Inc. as of March 30, 2024, is calculated as follows:
Cash Ratio = Cash & Cash Equivalents / Current Liabilities
Cash & Cash Equivalents = $32,695 million
Current Liabilities = $123,822 million
Cash Ratio = 32,695 / 123,822 = 0.26
|
Ratio
|
3
|
0000320193-24-000069
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
q_Ra144
|
What is the Asset Turnover Ratio for Apple Inc. for the six months ended March 30, 2024?
|
The Asset Turnover Ratio for Apple Inc. for the six months ended March 30, 2024, is calculated as follows:
Asset Turnover Ratio = Net Sales / Average Total Assets
Net Sales (six months ended March 30, 2024) = $210,328 million
Average Total Assets = (Total Assets at March 30, 2024 + Total Assets at September 30, 2023) / 2 = ($337,411 million + $352,583 million) / 2 = $344,997 million
Asset Turnover Ratio = 210,328 / 344,997 = 0.61
|
Ratio
|
1, 3
|
0000320193-24-000069
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:-----------------|:-----------|:--------------|:-------|:-------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | | |
| 2 | | March 30,2024 | | April 1,2023 | | March 30,2024 | | April 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 66,886 | | | $ | 73,929 | | $ | 163,344 | $ | 170,317 |
| 5 | Services | 23,867 | | | 20,907 | | | 46,984 | | 41,673 | | |
| 6 | Total net sales | 90,753 | | | 94,836 | | | 210,328 | | 211,990 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 42,424 | | | 46,795 | | | 100,864 | | 107,560 | | |
| 10 | Services | 6,058 | | | 6,065 | | | 12,338 | | 12,122 | | |
| 11 | Total cost of sales | 48,482 | | | 52,860 | | | 113,202 | | 119,682 | | |
| 12 | Gross margin | 42,271 | | | 41,976 | | | 97,126 | | 92,308 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 7,903 | | | 7,457 | | | 15,599 | | 15,166 | | |
| 16 | Selling, general and administrative | 6,468 | | | 6,201 | | | 13,254 | | 12,808 | | |
| 17 | Total operating expenses | 14,371 | | | 13,658 | | | 28,853 | | 27,974 | | |
| 19 | Operating income | 27,900 | | | 28,318 | | | 68,273 | | 64,334 | | |
| 20 | Other income/(expense), net | 158 | | | 64 | | | 108 | | (329) | | |
| 21 | Income before provision for income taxes | 28,058 | | | 28,382 | | | 68,381 | | 64,005 | | |
| 22 | Provision for income taxes | 4,422 | | | 4,222 | | | 10,829 | | 9,847 | | |
| 23 | Net income | $ | 23,636 | | | $ | 24,160 | | $ | 57,552 | $ | 54,158 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.53 | | | $ | 1.53 | | $ | 3.72 | $ | 3.42 |
| 27 | Diluted | $ | 1.53 | | | $ | 1.52 | | $ | 3.71 | $ | 3.41 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,405,856 | | | 15,787,154 | | | 15,457,810 | | 15,839,939 | | |
| 31 | Diluted | 15,464,709 | | | 15,847,050 | | | 15,520,675 | | 15,901,384 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:-----------------|:-----------|:--------------|:-------|:-------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | | |
| 2 | | March 30,2024 | | April 1,2023 | | March 30,2024 | | April 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 66,886 | | | $ | 73,929 | | $ | 163,344 | $ | 170,317 |
| 5 | Services | 23,867 | | | 20,907 | | | 46,984 | | 41,673 | | |
| 6 | Total net sales | 90,753 | | | 94,836 | | | 210,328 | | 211,990 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 42,424 | | | 46,795 | | | 100,864 | | 107,560 | | |
| 10 | Services | 6,058 | | | 6,065 | | | 12,338 | | 12,122 | | |
| 11 | Total cost of sales | 48,482 | | | 52,860 | | | 113,202 | | 119,682 | | |
| 12 | Gross margin | 42,271 | | | 41,976 | | | 97,126 | | 92,308 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 7,903 | | | 7,457 | | | 15,599 | | 15,166 | | |
| 16 | Selling, general and administrative | 6,468 | | | 6,201 | | | 13,254 | | 12,808 | | |
| 17 | Total operating expenses | 14,371 | | | 13,658 | | | 28,853 | | 27,974 | | |
| 19 | Operating income | 27,900 | | | 28,318 | | | 68,273 | | 64,334 | | |
| 20 | Other income/(expense), net | 158 | | | 64 | | | 108 | | (329) | | |
| 21 | Income before provision for income taxes | 28,058 | | | 28,382 | | | 68,381 | | 64,005 | | |
| 22 | Provision for income taxes | 4,422 | | | 4,222 | | | 10,829 | | 9,847 | | |
| 23 | Net income | $ | 23,636 | | | $ | 24,160 | | $ | 57,552 | $ | 54,158 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.53 | | | $ | 1.53 | | $ | 3.72 | $ | 3.42 |
| 27 | Diluted | $ | 1.53 | | | $ | 1.52 | | $ | 3.71 | $ | 3.41 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,405,856 | | | 15,787,154 | | | 15,457,810 | | 15,839,939 | | |
| 31 | Diluted | 15,464,709 | | | 15,847,050 | | | 15,520,675 | | 15,901,384 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>66,886 </td><td></td><td colspan="3"></td><td>$</td><td>73,929 </td><td></td><td colspan="3"></td><td>$</td><td>163,344 </td><td></td><td colspan="3"></td><td>$</td><td>170,317 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">23,867 </td><td></td><td colspan="3"></td><td colspan="2">20,907 </td><td></td><td colspan="3"></td><td colspan="2">46,984 </td><td></td><td colspan="3"></td><td colspan="2">41,673 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">90,753 </td><td></td><td colspan="3"></td><td colspan="2">94,836 </td><td></td><td colspan="3"></td><td colspan="2">210,328 </td><td></td><td colspan="3"></td><td colspan="2">211,990 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">42,424 </td><td></td><td colspan="3"></td><td colspan="2">46,795 </td><td></td><td colspan="3"></td><td colspan="2">100,864 </td><td></td><td colspan="3"></td><td colspan="2">107,560 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,058 </td><td></td><td colspan="3"></td><td colspan="2">6,065 </td><td></td><td colspan="3"></td><td colspan="2">12,338 </td><td></td><td colspan="3"></td><td colspan="2">12,122 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">48,482 </td><td></td><td colspan="3"></td><td colspan="2">52,860 </td><td></td><td colspan="3"></td><td colspan="2">113,202 </td><td></td><td colspan="3"></td><td colspan="2">119,682 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">42,271 </td><td></td><td colspan="3"></td><td colspan="2">41,976 </td><td></td><td colspan="3"></td><td colspan="2">97,126 </td><td></td><td colspan="3"></td><td colspan="2">92,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">7,903 </td><td></td><td colspan="3"></td><td colspan="2">7,457 </td><td></td><td colspan="3"></td><td colspan="2">15,599 </td><td></td><td colspan="3"></td><td colspan="2">15,166 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,468 </td><td></td><td colspan="3"></td><td colspan="2">6,201 </td><td></td><td colspan="3"></td><td colspan="2">13,254 </td><td></td><td colspan="3"></td><td colspan="2">12,808 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,371 </td><td></td><td colspan="3"></td><td colspan="2">13,658 </td><td></td><td colspan="3"></td><td colspan="2">28,853 </td><td></td><td colspan="3"></td><td colspan="2">27,974 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">27,900 </td><td></td><td colspan="3"></td><td colspan="2">28,318 </td><td></td><td colspan="3"></td><td colspan="2">68,273 </td><td></td><td colspan="3"></td><td colspan="2">64,334 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">108 </td><td></td><td colspan="3"></td><td colspan="2">(329)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">28,058 </td><td></td><td colspan="3"></td><td colspan="2">28,382 </td><td></td><td colspan="3"></td><td colspan="2">68,381 </td><td></td><td colspan="3"></td><td colspan="2">64,005 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,422 </td><td></td><td colspan="3"></td><td colspan="2">4,222 </td><td></td><td colspan="3"></td><td colspan="2">10,829 </td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>23,636 </td><td></td><td colspan="3"></td><td>$</td><td>24,160 </td><td></td><td colspan="3"></td><td>$</td><td>57,552 </td><td></td><td colspan="3"></td><td>$</td><td>54,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>3.72 </td><td></td><td colspan="3"></td><td>$</td><td>3.42 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.52 </td><td></td><td colspan="3"></td><td>$</td><td>3.71 </td><td></td><td colspan="3"></td><td>$</td><td>3.41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,405,856 </td><td></td><td colspan="3"></td><td colspan="2">15,787,154 </td><td></td><td colspan="3"></td><td colspan="2">15,457,810 </td><td></td><td colspan="3"></td><td colspan="2">15,839,939 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,464,709 </td><td></td><td colspan="3"></td><td colspan="2">15,847,050 </td><td></td><td colspan="3"></td><td colspan="2">15,520,675 </td><td></td><td colspan="3"></td><td colspan="2">15,901,384 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>66,886 </td><td></td><td colspan="3"></td><td>$</td><td>73,929 </td><td></td><td colspan="3"></td><td>$</td><td>163,344 </td><td></td><td colspan="3"></td><td>$</td><td>170,317 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">23,867 </td><td></td><td colspan="3"></td><td colspan="2">20,907 </td><td></td><td colspan="3"></td><td colspan="2">46,984 </td><td></td><td colspan="3"></td><td colspan="2">41,673 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">90,753 </td><td></td><td colspan="3"></td><td colspan="2">94,836 </td><td></td><td colspan="3"></td><td colspan="2">210,328 </td><td></td><td colspan="3"></td><td colspan="2">211,990 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">42,424 </td><td></td><td colspan="3"></td><td colspan="2">46,795 </td><td></td><td colspan="3"></td><td colspan="2">100,864 </td><td></td><td colspan="3"></td><td colspan="2">107,560 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,058 </td><td></td><td colspan="3"></td><td colspan="2">6,065 </td><td></td><td colspan="3"></td><td colspan="2">12,338 </td><td></td><td colspan="3"></td><td colspan="2">12,122 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">48,482 </td><td></td><td colspan="3"></td><td colspan="2">52,860 </td><td></td><td colspan="3"></td><td colspan="2">113,202 </td><td></td><td colspan="3"></td><td colspan="2">119,682 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">42,271 </td><td></td><td colspan="3"></td><td colspan="2">41,976 </td><td></td><td colspan="3"></td><td colspan="2">97,126 </td><td></td><td colspan="3"></td><td colspan="2">92,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">7,903 </td><td></td><td colspan="3"></td><td colspan="2">7,457 </td><td></td><td colspan="3"></td><td colspan="2">15,599 </td><td></td><td colspan="3"></td><td colspan="2">15,166 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,468 </td><td></td><td colspan="3"></td><td colspan="2">6,201 </td><td></td><td colspan="3"></td><td colspan="2">13,254 </td><td></td><td colspan="3"></td><td colspan="2">12,808 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,371 </td><td></td><td colspan="3"></td><td colspan="2">13,658 </td><td></td><td colspan="3"></td><td colspan="2">28,853 </td><td></td><td colspan="3"></td><td colspan="2">27,974 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">27,900 </td><td></td><td colspan="3"></td><td colspan="2">28,318 </td><td></td><td colspan="3"></td><td colspan="2">68,273 </td><td></td><td colspan="3"></td><td colspan="2">64,334 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">108 </td><td></td><td colspan="3"></td><td colspan="2">(329)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">28,058 </td><td></td><td colspan="3"></td><td colspan="2">28,382 </td><td></td><td colspan="3"></td><td colspan="2">68,381 </td><td></td><td colspan="3"></td><td colspan="2">64,005 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,422 </td><td></td><td colspan="3"></td><td colspan="2">4,222 </td><td></td><td colspan="3"></td><td colspan="2">10,829 </td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>23,636 </td><td></td><td colspan="3"></td><td>$</td><td>24,160 </td><td></td><td colspan="3"></td><td>$</td><td>57,552 </td><td></td><td colspan="3"></td><td>$</td><td>54,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>3.72 </td><td></td><td colspan="3"></td><td>$</td><td>3.42 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.52 </td><td></td><td colspan="3"></td><td>$</td><td>3.71 </td><td></td><td colspan="3"></td><td>$</td><td>3.41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,405,856 </td><td></td><td colspan="3"></td><td colspan="2">15,787,154 </td><td></td><td colspan="3"></td><td colspan="2">15,457,810 </td><td></td><td colspan="3"></td><td colspan="2">15,839,939 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,464,709 </td><td></td><td colspan="3"></td><td colspan="2">15,847,050 </td><td></td><td colspan="3"></td><td colspan="2">15,520,675 </td><td></td><td colspan="3"></td><td colspan="2">15,901,384 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
q_Ra145
|
What is the Days Sales of Inventory (DSI) for Apple Inc. for the six months ended March 30, 2024?
|
DSI = (Average Inventory / Cost of Goods Sold) * Number of Days = ((6,232 + 6,331) / 2) / 113,202 * 180 = 10.03 days
|
Ratio
|
1, 3
|
0000320193-24-000069
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:-----------------|:-----------|:--------------|:-------|:-------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | | |
| 2 | | March 30,2024 | | April 1,2023 | | March 30,2024 | | April 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 66,886 | | | $ | 73,929 | | $ | 163,344 | $ | 170,317 |
| 5 | Services | 23,867 | | | 20,907 | | | 46,984 | | 41,673 | | |
| 6 | Total net sales | 90,753 | | | 94,836 | | | 210,328 | | 211,990 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 42,424 | | | 46,795 | | | 100,864 | | 107,560 | | |
| 10 | Services | 6,058 | | | 6,065 | | | 12,338 | | 12,122 | | |
| 11 | Total cost of sales | 48,482 | | | 52,860 | | | 113,202 | | 119,682 | | |
| 12 | Gross margin | 42,271 | | | 41,976 | | | 97,126 | | 92,308 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 7,903 | | | 7,457 | | | 15,599 | | 15,166 | | |
| 16 | Selling, general and administrative | 6,468 | | | 6,201 | | | 13,254 | | 12,808 | | |
| 17 | Total operating expenses | 14,371 | | | 13,658 | | | 28,853 | | 27,974 | | |
| 19 | Operating income | 27,900 | | | 28,318 | | | 68,273 | | 64,334 | | |
| 20 | Other income/(expense), net | 158 | | | 64 | | | 108 | | (329) | | |
| 21 | Income before provision for income taxes | 28,058 | | | 28,382 | | | 68,381 | | 64,005 | | |
| 22 | Provision for income taxes | 4,422 | | | 4,222 | | | 10,829 | | 9,847 | | |
| 23 | Net income | $ | 23,636 | | | $ | 24,160 | | $ | 57,552 | $ | 54,158 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.53 | | | $ | 1.53 | | $ | 3.72 | $ | 3.42 |
| 27 | Diluted | $ | 1.53 | | | $ | 1.52 | | $ | 3.71 | $ | 3.41 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,405,856 | | | 15,787,154 | | | 15,457,810 | | 15,839,939 | | |
| 31 | Diluted | 15,464,709 | | | 15,847,050 | | | 15,520,675 | | 15,901,384 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:-----------------|:-----------|:--------------|:-------|:-------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | | |
| 2 | | March 30,2024 | | April 1,2023 | | March 30,2024 | | April 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 66,886 | | | $ | 73,929 | | $ | 163,344 | $ | 170,317 |
| 5 | Services | 23,867 | | | 20,907 | | | 46,984 | | 41,673 | | |
| 6 | Total net sales | 90,753 | | | 94,836 | | | 210,328 | | 211,990 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 42,424 | | | 46,795 | | | 100,864 | | 107,560 | | |
| 10 | Services | 6,058 | | | 6,065 | | | 12,338 | | 12,122 | | |
| 11 | Total cost of sales | 48,482 | | | 52,860 | | | 113,202 | | 119,682 | | |
| 12 | Gross margin | 42,271 | | | 41,976 | | | 97,126 | | 92,308 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 7,903 | | | 7,457 | | | 15,599 | | 15,166 | | |
| 16 | Selling, general and administrative | 6,468 | | | 6,201 | | | 13,254 | | 12,808 | | |
| 17 | Total operating expenses | 14,371 | | | 13,658 | | | 28,853 | | 27,974 | | |
| 19 | Operating income | 27,900 | | | 28,318 | | | 68,273 | | 64,334 | | |
| 20 | Other income/(expense), net | 158 | | | 64 | | | 108 | | (329) | | |
| 21 | Income before provision for income taxes | 28,058 | | | 28,382 | | | 68,381 | | 64,005 | | |
| 22 | Provision for income taxes | 4,422 | | | 4,222 | | | 10,829 | | 9,847 | | |
| 23 | Net income | $ | 23,636 | | | $ | 24,160 | | $ | 57,552 | $ | 54,158 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.53 | | | $ | 1.53 | | $ | 3.72 | $ | 3.42 |
| 27 | Diluted | $ | 1.53 | | | $ | 1.52 | | $ | 3.71 | $ | 3.41 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,405,856 | | | 15,787,154 | | | 15,457,810 | | 15,839,939 | | |
| 31 | Diluted | 15,464,709 | | | 15,847,050 | | | 15,520,675 | | 15,901,384 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>66,886 </td><td></td><td colspan="3"></td><td>$</td><td>73,929 </td><td></td><td colspan="3"></td><td>$</td><td>163,344 </td><td></td><td colspan="3"></td><td>$</td><td>170,317 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">23,867 </td><td></td><td colspan="3"></td><td colspan="2">20,907 </td><td></td><td colspan="3"></td><td colspan="2">46,984 </td><td></td><td colspan="3"></td><td colspan="2">41,673 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">90,753 </td><td></td><td colspan="3"></td><td colspan="2">94,836 </td><td></td><td colspan="3"></td><td colspan="2">210,328 </td><td></td><td colspan="3"></td><td colspan="2">211,990 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">42,424 </td><td></td><td colspan="3"></td><td colspan="2">46,795 </td><td></td><td colspan="3"></td><td colspan="2">100,864 </td><td></td><td colspan="3"></td><td colspan="2">107,560 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,058 </td><td></td><td colspan="3"></td><td colspan="2">6,065 </td><td></td><td colspan="3"></td><td colspan="2">12,338 </td><td></td><td colspan="3"></td><td colspan="2">12,122 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">48,482 </td><td></td><td colspan="3"></td><td colspan="2">52,860 </td><td></td><td colspan="3"></td><td colspan="2">113,202 </td><td></td><td colspan="3"></td><td colspan="2">119,682 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">42,271 </td><td></td><td colspan="3"></td><td colspan="2">41,976 </td><td></td><td colspan="3"></td><td colspan="2">97,126 </td><td></td><td colspan="3"></td><td colspan="2">92,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">7,903 </td><td></td><td colspan="3"></td><td colspan="2">7,457 </td><td></td><td colspan="3"></td><td colspan="2">15,599 </td><td></td><td colspan="3"></td><td colspan="2">15,166 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,468 </td><td></td><td colspan="3"></td><td colspan="2">6,201 </td><td></td><td colspan="3"></td><td colspan="2">13,254 </td><td></td><td colspan="3"></td><td colspan="2">12,808 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,371 </td><td></td><td colspan="3"></td><td colspan="2">13,658 </td><td></td><td colspan="3"></td><td colspan="2">28,853 </td><td></td><td colspan="3"></td><td colspan="2">27,974 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">27,900 </td><td></td><td colspan="3"></td><td colspan="2">28,318 </td><td></td><td colspan="3"></td><td colspan="2">68,273 </td><td></td><td colspan="3"></td><td colspan="2">64,334 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">108 </td><td></td><td colspan="3"></td><td colspan="2">(329)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">28,058 </td><td></td><td colspan="3"></td><td colspan="2">28,382 </td><td></td><td colspan="3"></td><td colspan="2">68,381 </td><td></td><td colspan="3"></td><td colspan="2">64,005 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,422 </td><td></td><td colspan="3"></td><td colspan="2">4,222 </td><td></td><td colspan="3"></td><td colspan="2">10,829 </td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>23,636 </td><td></td><td colspan="3"></td><td>$</td><td>24,160 </td><td></td><td colspan="3"></td><td>$</td><td>57,552 </td><td></td><td colspan="3"></td><td>$</td><td>54,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>3.72 </td><td></td><td colspan="3"></td><td>$</td><td>3.42 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.52 </td><td></td><td colspan="3"></td><td>$</td><td>3.71 </td><td></td><td colspan="3"></td><td>$</td><td>3.41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,405,856 </td><td></td><td colspan="3"></td><td colspan="2">15,787,154 </td><td></td><td colspan="3"></td><td colspan="2">15,457,810 </td><td></td><td colspan="3"></td><td colspan="2">15,839,939 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,464,709 </td><td></td><td colspan="3"></td><td colspan="2">15,847,050 </td><td></td><td colspan="3"></td><td colspan="2">15,520,675 </td><td></td><td colspan="3"></td><td colspan="2">15,901,384 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>66,886 </td><td></td><td colspan="3"></td><td>$</td><td>73,929 </td><td></td><td colspan="3"></td><td>$</td><td>163,344 </td><td></td><td colspan="3"></td><td>$</td><td>170,317 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">23,867 </td><td></td><td colspan="3"></td><td colspan="2">20,907 </td><td></td><td colspan="3"></td><td colspan="2">46,984 </td><td></td><td colspan="3"></td><td colspan="2">41,673 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">90,753 </td><td></td><td colspan="3"></td><td colspan="2">94,836 </td><td></td><td colspan="3"></td><td colspan="2">210,328 </td><td></td><td colspan="3"></td><td colspan="2">211,990 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">42,424 </td><td></td><td colspan="3"></td><td colspan="2">46,795 </td><td></td><td colspan="3"></td><td colspan="2">100,864 </td><td></td><td colspan="3"></td><td colspan="2">107,560 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,058 </td><td></td><td colspan="3"></td><td colspan="2">6,065 </td><td></td><td colspan="3"></td><td colspan="2">12,338 </td><td></td><td colspan="3"></td><td colspan="2">12,122 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">48,482 </td><td></td><td colspan="3"></td><td colspan="2">52,860 </td><td></td><td colspan="3"></td><td colspan="2">113,202 </td><td></td><td colspan="3"></td><td colspan="2">119,682 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">42,271 </td><td></td><td colspan="3"></td><td colspan="2">41,976 </td><td></td><td colspan="3"></td><td colspan="2">97,126 </td><td></td><td colspan="3"></td><td colspan="2">92,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">7,903 </td><td></td><td colspan="3"></td><td colspan="2">7,457 </td><td></td><td colspan="3"></td><td colspan="2">15,599 </td><td></td><td colspan="3"></td><td colspan="2">15,166 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,468 </td><td></td><td colspan="3"></td><td colspan="2">6,201 </td><td></td><td colspan="3"></td><td colspan="2">13,254 </td><td></td><td colspan="3"></td><td colspan="2">12,808 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,371 </td><td></td><td colspan="3"></td><td colspan="2">13,658 </td><td></td><td colspan="3"></td><td colspan="2">28,853 </td><td></td><td colspan="3"></td><td colspan="2">27,974 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">27,900 </td><td></td><td colspan="3"></td><td colspan="2">28,318 </td><td></td><td colspan="3"></td><td colspan="2">68,273 </td><td></td><td colspan="3"></td><td colspan="2">64,334 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">108 </td><td></td><td colspan="3"></td><td colspan="2">(329)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">28,058 </td><td></td><td colspan="3"></td><td colspan="2">28,382 </td><td></td><td colspan="3"></td><td colspan="2">68,381 </td><td></td><td colspan="3"></td><td colspan="2">64,005 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,422 </td><td></td><td colspan="3"></td><td colspan="2">4,222 </td><td></td><td colspan="3"></td><td colspan="2">10,829 </td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>23,636 </td><td></td><td colspan="3"></td><td>$</td><td>24,160 </td><td></td><td colspan="3"></td><td>$</td><td>57,552 </td><td></td><td colspan="3"></td><td>$</td><td>54,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>3.72 </td><td></td><td colspan="3"></td><td>$</td><td>3.42 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.52 </td><td></td><td colspan="3"></td><td>$</td><td>3.71 </td><td></td><td colspan="3"></td><td>$</td><td>3.41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,405,856 </td><td></td><td colspan="3"></td><td colspan="2">15,787,154 </td><td></td><td colspan="3"></td><td colspan="2">15,457,810 </td><td></td><td colspan="3"></td><td colspan="2">15,839,939 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,464,709 </td><td></td><td colspan="3"></td><td colspan="2">15,847,050 </td><td></td><td colspan="3"></td><td colspan="2">15,520,675 </td><td></td><td colspan="3"></td><td colspan="2">15,901,384 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
q_Ra146
|
What is the Days Sales Outstanding (DSO) for Apple Inc. for the six months ended March 30, 2024?
|
DSO = (Accounts Receivable / Total Credit Sales) * Number of Days = 21,837 / 210,328 * 180 = 18.69 days
|
Ratio
|
1, 3
|
0000320193-24-000069
|
Item 1. Financial Statements
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:-----------------|:-----------|:--------------|:-------|:-------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | | |
| 2 | | March 30,2024 | | April 1,2023 | | March 30,2024 | | April 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 66,886 | | | $ | 73,929 | | $ | 163,344 | $ | 170,317 |
| 5 | Services | 23,867 | | | 20,907 | | | 46,984 | | 41,673 | | |
| 6 | Total net sales | 90,753 | | | 94,836 | | | 210,328 | | 211,990 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 42,424 | | | 46,795 | | | 100,864 | | 107,560 | | |
| 10 | Services | 6,058 | | | 6,065 | | | 12,338 | | 12,122 | | |
| 11 | Total cost of sales | 48,482 | | | 52,860 | | | 113,202 | | 119,682 | | |
| 12 | Gross margin | 42,271 | | | 41,976 | | | 97,126 | | 92,308 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 7,903 | | | 7,457 | | | 15,599 | | 15,166 | | |
| 16 | Selling, general and administrative | 6,468 | | | 6,201 | | | 13,254 | | 12,808 | | |
| 17 | Total operating expenses | 14,371 | | | 13,658 | | | 28,853 | | 27,974 | | |
| 19 | Operating income | 27,900 | | | 28,318 | | | 68,273 | | 64,334 | | |
| 20 | Other income/(expense), net | 158 | | | 64 | | | 108 | | (329) | | |
| 21 | Income before provision for income taxes | 28,058 | | | 28,382 | | | 68,381 | | 64,005 | | |
| 22 | Provision for income taxes | 4,422 | | | 4,222 | | | 10,829 | | 9,847 | | |
| 23 | Net income | $ | 23,636 | | | $ | 24,160 | | $ | 57,552 | $ | 54,158 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.53 | | | $ | 1.53 | | $ | 3.72 | $ | 3.42 |
| 27 | Diluted | $ | 1.53 | | | $ | 1.52 | | $ | 3.71 | $ | 3.41 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,405,856 | | | 15,787,154 | | | 15,457,810 | | 15,839,939 | | |
| 31 | Diluted | 15,464,709 | | | 15,847,050 | | | 15,520,675 | | 15,901,384 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
| | | | | | | | | | | | | |
|---:|:---------------------------------------------|:-------------------|:-------|:-----------------|:-----------|:--------------|:-------|:-------------|:---|:-----------|:---|:--------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | | |
| 2 | | March 30,2024 | | April 1,2023 | | March 30,2024 | | April 1,2023 | | | | |
| 3 | Net sales: | | | | | | | | | | | |
| 4 | Products | $ | 66,886 | | | $ | 73,929 | | $ | 163,344 | $ | 170,317 |
| 5 | Services | 23,867 | | | 20,907 | | | 46,984 | | 41,673 | | |
| 6 | Total net sales | 90,753 | | | 94,836 | | | 210,328 | | 211,990 | | |
| 8 | Cost of sales: | | | | | | | | | | | |
| 9 | Products | 42,424 | | | 46,795 | | | 100,864 | | 107,560 | | |
| 10 | Services | 6,058 | | | 6,065 | | | 12,338 | | 12,122 | | |
| 11 | Total cost of sales | 48,482 | | | 52,860 | | | 113,202 | | 119,682 | | |
| 12 | Gross margin | 42,271 | | | 41,976 | | | 97,126 | | 92,308 | | |
| 14 | Operating expenses: | | | | | | | | | | | |
| 15 | Research and development | 7,903 | | | 7,457 | | | 15,599 | | 15,166 | | |
| 16 | Selling, general and administrative | 6,468 | | | 6,201 | | | 13,254 | | 12,808 | | |
| 17 | Total operating expenses | 14,371 | | | 13,658 | | | 28,853 | | 27,974 | | |
| 19 | Operating income | 27,900 | | | 28,318 | | | 68,273 | | 64,334 | | |
| 20 | Other income/(expense), net | 158 | | | 64 | | | 108 | | (329) | | |
| 21 | Income before provision for income taxes | 28,058 | | | 28,382 | | | 68,381 | | 64,005 | | |
| 22 | Provision for income taxes | 4,422 | | | 4,222 | | | 10,829 | | 9,847 | | |
| 23 | Net income | $ | 23,636 | | | $ | 24,160 | | $ | 57,552 | $ | 54,158 |
| 25 | Earnings per share: | | | | | | | | | | | |
| 26 | Basic | $ | 1.53 | | | $ | 1.53 | | $ | 3.72 | $ | 3.42 |
| 27 | Diluted | $ | 1.53 | | | $ | 1.52 | | $ | 3.71 | $ | 3.41 |
| 29 | Shares used in computing earnings per share: | | | | | | | | | | | |
| 30 | Basic | 15,405,856 | | | 15,787,154 | | | 15,457,810 | | 15,839,939 | | |
| 31 | Diluted | 15,464,709 | | | 15,847,050 | | | 15,520,675 | | 15,901,384 | | |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
| | | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------|:------------------|:---------|:---|:--------|
| 1 | | March 30,2024 | | September 30,2023 | | | |
| 2 | ASSETS: | | | | | | |
| 3 | Current assets: | | | | | | |
| 4 | Cash and cash equivalents | $ | 32,695 | | | $ | 29,965 |
| 5 | Marketable securities | 34,455 | | | 31,590 | | |
| 6 | Accounts receivable, net | 21,837 | | | 29,508 | | |
| 7 | Vendor non-trade receivables | 19,313 | | | 31,477 | | |
| 8 | Inventories | 6,232 | | | 6,331 | | |
| 9 | Other current assets | 13,884 | | | 14,695 | | |
| 10 | Total current assets | 128,416 | | | 143,566 | | |
| 12 | Non-current assets: | | | | | | |
| 13 | Marketable securities | 95,187 | | | 100,544 | | |
| 14 | Property, plant and equipment, net | 43,546 | | | 43,715 | | |
| 15 | Other non-current assets | 70,262 | | | 64,758 | | |
| 16 | Total non-current assets | 208,995 | | | 209,017 | | |
| 17 | Total assets | $ | 337,411 | | | $ | 352,583 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY: | | | | | | |
| 20 | Current liabilities: | | | | | | |
| 21 | Accounts payable | $ | 45,753 | | | $ | 62,611 |
| 22 | Other current liabilities | 57,298 | | | 58,829 | | |
| 23 | Deferred revenue | 8,012 | | | 8,061 | | |
| 24 | Commercial paper | 1,997 | | | 5,985 | | |
| 25 | Term debt | 10,762 | | | 9,822 | | |
| 26 | Total current liabilities | 123,822 | | | 145,308 | | |
| 28 | Non-current liabilities: | | | | | | |
| 29 | Term debt | 91,831 | | | 95,281 | | |
| 30 | Other non-current liabilities | 47,564 | | | 49,848 | | |
| 31 | Total non-current liabilities | 139,395 | | | 145,129 | | |
| 32 | Total liabilities | 263,217 | | | 290,437 | | |
| 34 | Commitments and contingencies | | | | | | |
| 36 | Shareholders' equity: | | | | | | |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively | 78,815 | | | 73,812 | | |
| 38 | Retained earnings/(Accumulated deficit) | 4,339 | | | (214) | | |
| 39 | Accumulated other comprehensive loss | (8,960) | | | (11,452) | | |
| 40 | Total shareholders' equity | 74,194 | | | 62,146 | | |
| 41 | Total liabilities and shareholders' equity | $ | 337,411 | | | $ | 352,583 |
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 1:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>66,886 </td><td></td><td colspan="3"></td><td>$</td><td>73,929 </td><td></td><td colspan="3"></td><td>$</td><td>163,344 </td><td></td><td colspan="3"></td><td>$</td><td>170,317 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">23,867 </td><td></td><td colspan="3"></td><td colspan="2">20,907 </td><td></td><td colspan="3"></td><td colspan="2">46,984 </td><td></td><td colspan="3"></td><td colspan="2">41,673 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">90,753 </td><td></td><td colspan="3"></td><td colspan="2">94,836 </td><td></td><td colspan="3"></td><td colspan="2">210,328 </td><td></td><td colspan="3"></td><td colspan="2">211,990 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">42,424 </td><td></td><td colspan="3"></td><td colspan="2">46,795 </td><td></td><td colspan="3"></td><td colspan="2">100,864 </td><td></td><td colspan="3"></td><td colspan="2">107,560 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,058 </td><td></td><td colspan="3"></td><td colspan="2">6,065 </td><td></td><td colspan="3"></td><td colspan="2">12,338 </td><td></td><td colspan="3"></td><td colspan="2">12,122 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">48,482 </td><td></td><td colspan="3"></td><td colspan="2">52,860 </td><td></td><td colspan="3"></td><td colspan="2">113,202 </td><td></td><td colspan="3"></td><td colspan="2">119,682 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">42,271 </td><td></td><td colspan="3"></td><td colspan="2">41,976 </td><td></td><td colspan="3"></td><td colspan="2">97,126 </td><td></td><td colspan="3"></td><td colspan="2">92,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">7,903 </td><td></td><td colspan="3"></td><td colspan="2">7,457 </td><td></td><td colspan="3"></td><td colspan="2">15,599 </td><td></td><td colspan="3"></td><td colspan="2">15,166 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,468 </td><td></td><td colspan="3"></td><td colspan="2">6,201 </td><td></td><td colspan="3"></td><td colspan="2">13,254 </td><td></td><td colspan="3"></td><td colspan="2">12,808 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,371 </td><td></td><td colspan="3"></td><td colspan="2">13,658 </td><td></td><td colspan="3"></td><td colspan="2">28,853 </td><td></td><td colspan="3"></td><td colspan="2">27,974 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">27,900 </td><td></td><td colspan="3"></td><td colspan="2">28,318 </td><td></td><td colspan="3"></td><td colspan="2">68,273 </td><td></td><td colspan="3"></td><td colspan="2">64,334 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">108 </td><td></td><td colspan="3"></td><td colspan="2">(329)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">28,058 </td><td></td><td colspan="3"></td><td colspan="2">28,382 </td><td></td><td colspan="3"></td><td colspan="2">68,381 </td><td></td><td colspan="3"></td><td colspan="2">64,005 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,422 </td><td></td><td colspan="3"></td><td colspan="2">4,222 </td><td></td><td colspan="3"></td><td colspan="2">10,829 </td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>23,636 </td><td></td><td colspan="3"></td><td>$</td><td>24,160 </td><td></td><td colspan="3"></td><td>$</td><td>57,552 </td><td></td><td colspan="3"></td><td>$</td><td>54,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>3.72 </td><td></td><td colspan="3"></td><td>$</td><td>3.42 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.52 </td><td></td><td colspan="3"></td><td>$</td><td>3.71 </td><td></td><td colspan="3"></td><td>$</td><td>3.41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,405,856 </td><td></td><td colspan="3"></td><td colspan="2">15,787,154 </td><td></td><td colspan="3"></td><td colspan="2">15,457,810 </td><td></td><td colspan="3"></td><td colspan="2">15,839,939 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,464,709 </td><td></td><td colspan="3"></td><td colspan="2">15,847,050 </td><td></td><td colspan="3"></td><td colspan="2">15,520,675 </td><td></td><td colspan="3"></td><td colspan="2">15,901,384 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
, Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 3:
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">April 1,2023</td></tr><tr><td colspan="3">Net sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td>$</td><td>66,886 </td><td></td><td colspan="3"></td><td>$</td><td>73,929 </td><td></td><td colspan="3"></td><td>$</td><td>163,344 </td><td></td><td colspan="3"></td><td>$</td><td>170,317 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">23,867 </td><td></td><td colspan="3"></td><td colspan="2">20,907 </td><td></td><td colspan="3"></td><td colspan="2">46,984 </td><td></td><td colspan="3"></td><td colspan="2">41,673 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td colspan="2">90,753 </td><td></td><td colspan="3"></td><td colspan="2">94,836 </td><td></td><td colspan="3"></td><td colspan="2">210,328 </td><td></td><td colspan="3"></td><td colspan="2">211,990 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cost of sales:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> Products</td><td colspan="2">42,424 </td><td></td><td colspan="3"></td><td colspan="2">46,795 </td><td></td><td colspan="3"></td><td colspan="2">100,864 </td><td></td><td colspan="3"></td><td colspan="2">107,560 </td><td></td></tr><tr><td colspan="3"> Services</td><td colspan="2">6,058 </td><td></td><td colspan="3"></td><td colspan="2">6,065 </td><td></td><td colspan="3"></td><td colspan="2">12,338 </td><td></td><td colspan="3"></td><td colspan="2">12,122 </td><td></td></tr><tr><td colspan="3">Total cost of sales</td><td colspan="2">48,482 </td><td></td><td colspan="3"></td><td colspan="2">52,860 </td><td></td><td colspan="3"></td><td colspan="2">113,202 </td><td></td><td colspan="3"></td><td colspan="2">119,682 </td><td></td></tr><tr><td colspan="3">Gross margin</td><td colspan="2">42,271 </td><td></td><td colspan="3"></td><td colspan="2">41,976 </td><td></td><td colspan="3"></td><td colspan="2">97,126 </td><td></td><td colspan="3"></td><td colspan="2">92,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">7,903 </td><td></td><td colspan="3"></td><td colspan="2">7,457 </td><td></td><td colspan="3"></td><td colspan="2">15,599 </td><td></td><td colspan="3"></td><td colspan="2">15,166 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">6,468 </td><td></td><td colspan="3"></td><td colspan="2">6,201 </td><td></td><td colspan="3"></td><td colspan="2">13,254 </td><td></td><td colspan="3"></td><td colspan="2">12,808 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">14,371 </td><td></td><td colspan="3"></td><td colspan="2">13,658 </td><td></td><td colspan="3"></td><td colspan="2">28,853 </td><td></td><td colspan="3"></td><td colspan="2">27,974 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating income</td><td colspan="2">27,900 </td><td></td><td colspan="3"></td><td colspan="2">28,318 </td><td></td><td colspan="3"></td><td colspan="2">68,273 </td><td></td><td colspan="3"></td><td colspan="2">64,334 </td><td></td></tr><tr><td colspan="3">Other income/(expense), net</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">108 </td><td></td><td colspan="3"></td><td colspan="2">(329)</td><td></td></tr><tr><td colspan="3">Income before provision for income taxes</td><td colspan="2">28,058 </td><td></td><td colspan="3"></td><td colspan="2">28,382 </td><td></td><td colspan="3"></td><td colspan="2">68,381 </td><td></td><td colspan="3"></td><td colspan="2">64,005 </td><td></td></tr><tr><td colspan="3">Provision for income taxes</td><td colspan="2">4,422 </td><td></td><td colspan="3"></td><td colspan="2">4,222 </td><td></td><td colspan="3"></td><td colspan="2">10,829 </td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>23,636 </td><td></td><td colspan="3"></td><td>$</td><td>24,160 </td><td></td><td colspan="3"></td><td>$</td><td>57,552 </td><td></td><td colspan="3"></td><td>$</td><td>54,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>3.72 </td><td></td><td colspan="3"></td><td>$</td><td>3.42 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.53 </td><td></td><td colspan="3"></td><td>$</td><td>1.52 </td><td></td><td colspan="3"></td><td>$</td><td>3.71 </td><td></td><td colspan="3"></td><td>$</td><td>3.41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shares used in computing earnings per share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">15,405,856 </td><td></td><td colspan="3"></td><td colspan="2">15,787,154 </td><td></td><td colspan="3"></td><td colspan="2">15,457,810 </td><td></td><td colspan="3"></td><td colspan="2">15,839,939 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">15,464,709 </td><td></td><td colspan="3"></td><td colspan="2">15,847,050 </td><td></td><td colspan="3"></td><td colspan="2">15,520,675 </td><td></td><td colspan="3"></td><td colspan="2">15,901,384 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 1
,
Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">March 30,2024</td><td colspan="3"></td><td colspan="3">September 30,2023</td></tr><tr><td colspan="12">ASSETS:</td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>32,695 </td><td></td><td colspan="3"></td><td>$</td><td>29,965 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">34,455 </td><td></td><td colspan="3"></td><td colspan="2">31,590 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">21,837 </td><td></td><td colspan="3"></td><td colspan="2">29,508 </td><td></td></tr><tr><td colspan="3">Vendor non-trade receivables</td><td colspan="2">19,313 </td><td></td><td colspan="3"></td><td colspan="2">31,477 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">6,232 </td><td></td><td colspan="3"></td><td colspan="2">6,331 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">13,884 </td><td></td><td colspan="3"></td><td colspan="2">14,695 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">128,416 </td><td></td><td colspan="3"></td><td colspan="2">143,566 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">95,187 </td><td></td><td colspan="3"></td><td colspan="2">100,544 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">43,546 </td><td></td><td colspan="3"></td><td colspan="2">43,715 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">70,262 </td><td></td><td colspan="3"></td><td colspan="2">64,758 </td><td></td></tr><tr><td colspan="3">Total non-current assets</td><td colspan="2">208,995 </td><td></td><td colspan="3"></td><td colspan="2">209,017 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY:</td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>45,753 </td><td></td><td colspan="3"></td><td>$</td><td>62,611 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">57,298 </td><td></td><td colspan="3"></td><td colspan="2">58,829 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">8,012 </td><td></td><td colspan="3"></td><td colspan="2">8,061 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">1,997 </td><td></td><td colspan="3"></td><td colspan="2">5,985 </td><td></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">10,762 </td><td></td><td colspan="3"></td><td colspan="2">9,822 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">123,822 </td><td></td><td colspan="3"></td><td colspan="2">145,308 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Term debt</td><td colspan="2">91,831 </td><td></td><td colspan="3"></td><td colspan="2">95,281 </td><td></td></tr><tr><td colspan="3">Other non-current liabilities</td><td colspan="2">47,564 </td><td></td><td colspan="3"></td><td colspan="2">49,848 </td><td></td></tr><tr><td colspan="3">Total non-current liabilities</td><td colspan="2">139,395 </td><td></td><td colspan="3"></td><td colspan="2">145,129 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">263,217 </td><td></td><td colspan="3"></td><td colspan="2">290,437 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively</td><td colspan="2">78,815 </td><td></td><td colspan="3"></td><td colspan="2">73,812 </td><td></td></tr><tr><td colspan="3">Retained earnings/(Accumulated deficit)</td><td colspan="2">4,339 </td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(8,960)</td><td></td><td colspan="3"></td><td colspan="2">(11,452)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">74,194 </td><td></td><td colspan="3"></td><td colspan="2">62,146 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>337,411 </td><td></td><td colspan="3"></td><td>$</td><td>352,583 </td><td></td></tr></table>
See accompanying Notes to Condensed Consolidated Financial Statements.
Apple Inc. | Q2 2024 Form 10-Q | 3
|
q_Ra147
|
What is the Return on Assets (ROA) for Coca-Cola for the six months ended June 28, 2024?
|
ROA = (Net Income / Total Assets) * 100 = ($5,588 million / $101,202 million) * 100 = 5.52%
|
Ratio
|
2, 4
|
0000021344-24-000044
|
Item 1. Financial Statements
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
q_Ra148
|
How does Coca-Cola's Net Profit Margin for the six months ended June 28, 2024, compare to the same period in 2023?
|
Net Profit Margin for 2024 = (5,588/ 23,663) *100 = 23.62%, Net Profit Margin for 2023 = (5,654 / 22,952) * 100 = 24.64%. The Net Profit Margin decreased from 24.64% in 2023 to 23.62% in 2024.
|
Ratio
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2
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0000021344-24-000044
|
Item 1. Financial Statements
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
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q_Ra149
|
What is the Interest Coverage Ratio for Coca-Cola for the six months ended June 28, 2024?
|
Interest Coverage Ratio = EBIT / Interest Expenses = $4,773 million / $800 million = 5.97
|
Ratio
|
2
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0000021344-24-000044
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Item 1. Financial Statements
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
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q_Ra150
|
What is the Long-term Debt to Capitalization Ratio for Coca-Cola as of June 28, 2024?
|
Long-term Debt to Capitalization Ratio = Long-term Debt / (Long-term Debt + Shareholders' Equity) = $38,085 million / ($38,085 million + $25,853 million) = 0.60
|
Ratio
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4
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0000021344-24-000044
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Item 1. Financial Statements
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
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q_Ra151
|
How does Coca-Cola's Debt Equity Ratio as of June 28, 2024, compare to December 31, 2023?
|
Debt Equity Ratio as of June 28, 2024 = 1.68, Debt Equity Ratio as of December 31, 2023 = (4,557 + 1,960 + 35,547) / 25,941 = 1.64. The Debt Equity Ratio increased from 1.64 to 1.68.
|
Ratio
|
4
|
0000021344-24-000044
|
Item 1. Financial Statements
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
q_Ra152
|
What is the Working Capital for Coca-Cola as of June 28, 2024?
|
Working Capital = Current Assets - Current Liabilities = $31,599 million - $29,263 million = $2,336 million
|
Ratio
|
4
|
0000021344-24-000044
|
Item 1. Financial Statements
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
q_Ra153
|
What is the Operating Cash Flow Ratio for Coca-Cola for the six months ended June 28, 2024?
|
Operating Cash Flow Ratio = Operating Cash Flow / Current Liabilities = $4,113 million / $29,263 million = 0.14
|
Ratio
|
4, 5
|
0000021344-24-000044
|
Item 1. Financial Statements
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 5:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
| | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----------------|:-------------|:--------|:---|:-------|
| 1 | | Six Months Ended | | | | |
| 2 | | June 28,2024 | June 30,2023 | | | |
| 3 | Operating Activities | | | | | |
| 4 | Consolidated net income | $ | 5,586 | | $ | 5,634 |
| 5 | Adjustments to reconcile consolidated net income to net cash provided by operating activities: | | | | | |
| 6 | Depreciation and amortization | 531 | | 567 | | |
| 7 | Stock-based compensation expense | 140 | | 120 | | |
| 8 | Deferred income taxes | (202) | | (211) | | |
| 9 | Equity (income) loss - net of dividends | (274) | | (467) | | |
| 10 | Foreign currency adjustments | (87) | | 34 | | |
| 11 | Significant (gains) losses - net | (1,398) | | (442) | | |
| 12 | Other operating charges | 2,867 | | 1,375 | | |
| 13 | Other items | (66) | | (225) | | |
| 14 | Net change in operating assets and liabilities | (2,984) | | (1,756) | | |
| 15 | Net Cash Provided by Operating Activities | 4,113 | | 4,629 | | |
| 16 | Investing Activities | | | | | |
| 17 | Purchases of investments | (3,827) | | (2,103) | | |
| 18 | Proceeds from disposals of investments | 2,662 | | 1,608 | | |
| 19 | Acquisitions of businesses, equity method investments and nonmarketable securities | (25) | | (43) | | |
| 20 | Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 2,907 | | 320 | | |
| 21 | Purchases of property, plant and equipment | (792) | | (615) | | |
| 22 | Proceeds from disposals of property, plant and equipment | 21 | | 38 | | |
| 23 | Collateral (paid) received associated with hedging activities - net | (76) | | (15) | | |
| 24 | Other investing activities | 127 | | 44 | | |
| 25 | Net Cash Provided by (Used in) Investing Activities | 997 | | (766) | | |
| 26 | Financing Activities | | | | | |
| 27 | Issuances of loans, notes payable and long-term debt | 6,832 | | 4,638 | | |
| 28 | Payments of loans, notes payable and long-term debt | (4,734) | | (2,366) | | |
| 29 | Issuances of stock | 437 | | 359 | | |
| 30 | Purchases of stock for treasury | (874) | | (1,084) | | |
| 31 | Dividends | (2,184) | | (2,089) | | |
| 32 | Other financing activities | (9) | | (456) | | |
| 33 | Net Cash Provided by (Used in) Financing Activities | (532) | | (998) | | |
| 34 | Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (357) | | 162 | | |
| 35 | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | | | | | |
| 36 | Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 4,221 | | 3,027 | | |
| 37 | Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 9,692 | | 9,825 | | |
| 38 | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period | 13,913 | | 12,852 | | |
| 39 | Less: Restricted cash and restricted cash equivalents at end of period | 205 | | 288 | | |
| 40 | Cash and Cash Equivalents at End of Period | $ | 13,708 | | $ | 12,564 |
Refer to Notes to Consolidated Financial Statements.
5
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
| | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----------------|:-------------|:--------|:---|:-------|
| 1 | | Six Months Ended | | | | |
| 2 | | June 28,2024 | June 30,2023 | | | |
| 3 | Operating Activities | | | | | |
| 4 | Consolidated net income | $ | 5,586 | | $ | 5,634 |
| 5 | Adjustments to reconcile consolidated net income to net cash provided by operating activities: | | | | | |
| 6 | Depreciation and amortization | 531 | | 567 | | |
| 7 | Stock-based compensation expense | 140 | | 120 | | |
| 8 | Deferred income taxes | (202) | | (211) | | |
| 9 | Equity (income) loss - net of dividends | (274) | | (467) | | |
| 10 | Foreign currency adjustments | (87) | | 34 | | |
| 11 | Significant (gains) losses - net | (1,398) | | (442) | | |
| 12 | Other operating charges | 2,867 | | 1,375 | | |
| 13 | Other items | (66) | | (225) | | |
| 14 | Net change in operating assets and liabilities | (2,984) | | (1,756) | | |
| 15 | Net Cash Provided by Operating Activities | 4,113 | | 4,629 | | |
| 16 | Investing Activities | | | | | |
| 17 | Purchases of investments | (3,827) | | (2,103) | | |
| 18 | Proceeds from disposals of investments | 2,662 | | 1,608 | | |
| 19 | Acquisitions of businesses, equity method investments and nonmarketable securities | (25) | | (43) | | |
| 20 | Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 2,907 | | 320 | | |
| 21 | Purchases of property, plant and equipment | (792) | | (615) | | |
| 22 | Proceeds from disposals of property, plant and equipment | 21 | | 38 | | |
| 23 | Collateral (paid) received associated with hedging activities - net | (76) | | (15) | | |
| 24 | Other investing activities | 127 | | 44 | | |
| 25 | Net Cash Provided by (Used in) Investing Activities | 997 | | (766) | | |
| 26 | Financing Activities | | | | | |
| 27 | Issuances of loans, notes payable and long-term debt | 6,832 | | 4,638 | | |
| 28 | Payments of loans, notes payable and long-term debt | (4,734) | | (2,366) | | |
| 29 | Issuances of stock | 437 | | 359 | | |
| 30 | Purchases of stock for treasury | (874) | | (1,084) | | |
| 31 | Dividends | (2,184) | | (2,089) | | |
| 32 | Other financing activities | (9) | | (456) | | |
| 33 | Net Cash Provided by (Used in) Financing Activities | (532) | | (998) | | |
| 34 | Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (357) | | 162 | | |
| 35 | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | | | | | |
| 36 | Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 4,221 | | 3,027 | | |
| 37 | Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 9,692 | | 9,825 | | |
| 38 | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period | 13,913 | | 12,852 | | |
| 39 | Less: Restricted cash and restricted cash equivalents at end of period | 205 | | 288 | | |
| 40 | Cash and Cash Equivalents at End of Period | $ | 13,708 | | $ | 12,564 |
Refer to Notes to Consolidated Financial Statements.
5
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 5:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"> </td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Operating Activities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Consolidated net income</td><td>$</td><td>5,586 </td><td></td><td>$</td><td>5,634 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile consolidated net income to net cash provided by operating activities: </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">531 </td><td></td><td colspan="2">567 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">140 </td><td></td><td colspan="2">120 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(202)</td><td></td><td colspan="2">(211)</td><td></td></tr><tr><td colspan="3">Equity (income) loss - net of dividends</td><td colspan="2">(274)</td><td></td><td colspan="2">(467)</td><td></td></tr><tr><td colspan="3">Foreign currency adjustments</td><td colspan="2">(87)</td><td></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Significant (gains) losses - net</td><td colspan="2">(1,398)</td><td></td><td colspan="2">(442)</td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">2,867 </td><td></td><td colspan="2">1,375 </td><td></td></tr><tr><td colspan="3">Other items</td><td colspan="2">(66)</td><td></td><td colspan="2">(225)</td><td></td></tr><tr><td colspan="3">Net change in operating assets and liabilities</td><td colspan="2">(2,984)</td><td></td><td colspan="2">(1,756)</td><td></td></tr><tr><td colspan="3">Net Cash Provided by Operating Activities</td><td colspan="2">4,113 </td><td></td><td colspan="2">4,629 </td><td></td></tr><tr><td colspan="3">Investing Activities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(3,827)</td><td></td><td colspan="2">(2,103)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of investments</td><td colspan="2">2,662 </td><td></td><td colspan="2">1,608 </td><td></td></tr><tr><td colspan="3">Acquisitions of businesses, equity method investments and nonmarketable securities</td><td colspan="2">(25)</td><td></td><td colspan="2">(43)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of businesses, equity method investments and nonmarketable securities</td><td colspan="2">2,907 </td><td></td><td colspan="2">320 </td><td></td></tr><tr><td colspan="3">Purchases of property, plant and equipment</td><td colspan="2">(792)</td><td></td><td colspan="2">(615)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of property, plant and equipment</td><td colspan="2">21 </td><td></td><td colspan="2">38 </td><td></td></tr><tr><td colspan="3">Collateral (paid) received associated with hedging activities - net</td><td colspan="2">(76)</td><td></td><td colspan="2">(15)</td><td></td></tr><tr><td colspan="3">Other investing activities</td><td colspan="2">127 </td><td></td><td colspan="2">44 </td><td></td></tr><tr><td colspan="3">Net Cash Provided by (Used in) Investing Activities</td><td colspan="2">997 </td><td></td><td colspan="2">(766)</td><td></td></tr><tr><td colspan="3">Financing Activities</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Issuances of loans, notes payable and long-term debt</td><td colspan="2">6,832 </td><td></td><td colspan="2">4,638 </td><td></td></tr><tr><td colspan="3">Payments of loans, notes payable and long-term debt</td><td colspan="2">(4,734)</td><td></td><td colspan="2">(2,366)</td><td></td></tr><tr><td colspan="3">Issuances of stock</td><td colspan="2">437 </td><td></td><td colspan="2">359 </td><td></td></tr><tr><td colspan="3">Purchases of stock for treasury</td><td colspan="2">(874)</td><td></td><td colspan="2">(1,084)</td><td></td></tr><tr><td colspan="3">Dividends</td><td colspan="2">(2,184)</td><td></td><td colspan="2">(2,089)</td><td></td></tr><tr><td colspan="3">Other financing activities</td><td colspan="2">(9)</td><td></td><td colspan="2">(456)</td><td></td></tr><tr><td colspan="3">Net Cash Provided by (Used in) Financing Activities</td><td colspan="2">(532)</td><td></td><td colspan="2">(998)</td><td></td></tr><tr><td colspan="3">Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents</td><td colspan="2">(357)</td><td></td><td colspan="2">162 </td><td></td></tr><tr><td colspan="3">Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period</td><td colspan="2">4,221 </td><td></td><td colspan="2">3,027 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period</td><td colspan="2">9,692 </td><td></td><td colspan="2">9,825 </td><td></td></tr><tr><td colspan="3">Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period</td><td colspan="2">13,913 </td><td></td><td colspan="2">12,852 </td><td></td></tr><tr><td colspan="3">Less: Restricted cash and restricted cash equivalents at end of period</td><td colspan="2">205 </td><td></td><td colspan="2">288 </td><td></td></tr><tr><td colspan="3">Cash and Cash Equivalents at End of Period</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>12,564 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
5
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"> </td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Operating Activities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Consolidated net income</td><td>$</td><td>5,586 </td><td></td><td>$</td><td>5,634 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile consolidated net income to net cash provided by operating activities: </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">531 </td><td></td><td colspan="2">567 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">140 </td><td></td><td colspan="2">120 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(202)</td><td></td><td colspan="2">(211)</td><td></td></tr><tr><td colspan="3">Equity (income) loss - net of dividends</td><td colspan="2">(274)</td><td></td><td colspan="2">(467)</td><td></td></tr><tr><td colspan="3">Foreign currency adjustments</td><td colspan="2">(87)</td><td></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Significant (gains) losses - net</td><td colspan="2">(1,398)</td><td></td><td colspan="2">(442)</td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">2,867 </td><td></td><td colspan="2">1,375 </td><td></td></tr><tr><td colspan="3">Other items</td><td colspan="2">(66)</td><td></td><td colspan="2">(225)</td><td></td></tr><tr><td colspan="3">Net change in operating assets and liabilities</td><td colspan="2">(2,984)</td><td></td><td colspan="2">(1,756)</td><td></td></tr><tr><td colspan="3">Net Cash Provided by Operating Activities</td><td colspan="2">4,113 </td><td></td><td colspan="2">4,629 </td><td></td></tr><tr><td colspan="3">Investing Activities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(3,827)</td><td></td><td colspan="2">(2,103)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of investments</td><td colspan="2">2,662 </td><td></td><td colspan="2">1,608 </td><td></td></tr><tr><td colspan="3">Acquisitions of businesses, equity method investments and nonmarketable securities</td><td colspan="2">(25)</td><td></td><td colspan="2">(43)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of businesses, equity method investments and nonmarketable securities</td><td colspan="2">2,907 </td><td></td><td colspan="2">320 </td><td></td></tr><tr><td colspan="3">Purchases of property, plant and equipment</td><td colspan="2">(792)</td><td></td><td colspan="2">(615)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of property, plant and equipment</td><td colspan="2">21 </td><td></td><td colspan="2">38 </td><td></td></tr><tr><td colspan="3">Collateral (paid) received associated with hedging activities - net</td><td colspan="2">(76)</td><td></td><td colspan="2">(15)</td><td></td></tr><tr><td colspan="3">Other investing activities</td><td colspan="2">127 </td><td></td><td colspan="2">44 </td><td></td></tr><tr><td colspan="3">Net Cash Provided by (Used in) Investing Activities</td><td colspan="2">997 </td><td></td><td colspan="2">(766)</td><td></td></tr><tr><td colspan="3">Financing Activities</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Issuances of loans, notes payable and long-term debt</td><td colspan="2">6,832 </td><td></td><td colspan="2">4,638 </td><td></td></tr><tr><td colspan="3">Payments of loans, notes payable and long-term debt</td><td colspan="2">(4,734)</td><td></td><td colspan="2">(2,366)</td><td></td></tr><tr><td colspan="3">Issuances of stock</td><td colspan="2">437 </td><td></td><td colspan="2">359 </td><td></td></tr><tr><td colspan="3">Purchases of stock for treasury</td><td colspan="2">(874)</td><td></td><td colspan="2">(1,084)</td><td></td></tr><tr><td colspan="3">Dividends</td><td colspan="2">(2,184)</td><td></td><td colspan="2">(2,089)</td><td></td></tr><tr><td colspan="3">Other financing activities</td><td colspan="2">(9)</td><td></td><td colspan="2">(456)</td><td></td></tr><tr><td colspan="3">Net Cash Provided by (Used in) Financing Activities</td><td colspan="2">(532)</td><td></td><td colspan="2">(998)</td><td></td></tr><tr><td colspan="3">Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents</td><td colspan="2">(357)</td><td></td><td colspan="2">162 </td><td></td></tr><tr><td colspan="3">Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period</td><td colspan="2">4,221 </td><td></td><td colspan="2">3,027 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period</td><td colspan="2">9,692 </td><td></td><td colspan="2">9,825 </td><td></td></tr><tr><td colspan="3">Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period</td><td colspan="2">13,913 </td><td></td><td colspan="2">12,852 </td><td></td></tr><tr><td colspan="3">Less: Restricted cash and restricted cash equivalents at end of period</td><td colspan="2">205 </td><td></td><td colspan="2">288 </td><td></td></tr><tr><td colspan="3">Cash and Cash Equivalents at End of Period</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>12,564 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
5
|
q_Ra154
|
What is the Cash Flow to Debt Ratio for Coca-Cola for the six months ended June 28, 2024?
|
Cash Flow to Debt Ratio = Operating Cash Flow / Total Debt = 4,113 / (3,793 + 1,939 + 38,085) = 0.09
|
Ratio
|
4, 5
|
0000021344-24-000044
|
Item 1. Financial Statements
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 5:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
| | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----------------|:-------------|:--------|:---|:-------|
| 1 | | Six Months Ended | | | | |
| 2 | | June 28,2024 | June 30,2023 | | | |
| 3 | Operating Activities | | | | | |
| 4 | Consolidated net income | $ | 5,586 | | $ | 5,634 |
| 5 | Adjustments to reconcile consolidated net income to net cash provided by operating activities: | | | | | |
| 6 | Depreciation and amortization | 531 | | 567 | | |
| 7 | Stock-based compensation expense | 140 | | 120 | | |
| 8 | Deferred income taxes | (202) | | (211) | | |
| 9 | Equity (income) loss - net of dividends | (274) | | (467) | | |
| 10 | Foreign currency adjustments | (87) | | 34 | | |
| 11 | Significant (gains) losses - net | (1,398) | | (442) | | |
| 12 | Other operating charges | 2,867 | | 1,375 | | |
| 13 | Other items | (66) | | (225) | | |
| 14 | Net change in operating assets and liabilities | (2,984) | | (1,756) | | |
| 15 | Net Cash Provided by Operating Activities | 4,113 | | 4,629 | | |
| 16 | Investing Activities | | | | | |
| 17 | Purchases of investments | (3,827) | | (2,103) | | |
| 18 | Proceeds from disposals of investments | 2,662 | | 1,608 | | |
| 19 | Acquisitions of businesses, equity method investments and nonmarketable securities | (25) | | (43) | | |
| 20 | Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 2,907 | | 320 | | |
| 21 | Purchases of property, plant and equipment | (792) | | (615) | | |
| 22 | Proceeds from disposals of property, plant and equipment | 21 | | 38 | | |
| 23 | Collateral (paid) received associated with hedging activities - net | (76) | | (15) | | |
| 24 | Other investing activities | 127 | | 44 | | |
| 25 | Net Cash Provided by (Used in) Investing Activities | 997 | | (766) | | |
| 26 | Financing Activities | | | | | |
| 27 | Issuances of loans, notes payable and long-term debt | 6,832 | | 4,638 | | |
| 28 | Payments of loans, notes payable and long-term debt | (4,734) | | (2,366) | | |
| 29 | Issuances of stock | 437 | | 359 | | |
| 30 | Purchases of stock for treasury | (874) | | (1,084) | | |
| 31 | Dividends | (2,184) | | (2,089) | | |
| 32 | Other financing activities | (9) | | (456) | | |
| 33 | Net Cash Provided by (Used in) Financing Activities | (532) | | (998) | | |
| 34 | Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (357) | | 162 | | |
| 35 | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | | | | | |
| 36 | Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 4,221 | | 3,027 | | |
| 37 | Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 9,692 | | 9,825 | | |
| 38 | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period | 13,913 | | 12,852 | | |
| 39 | Less: Restricted cash and restricted cash equivalents at end of period | 205 | | 288 | | |
| 40 | Cash and Cash Equivalents at End of Period | $ | 13,708 | | $ | 12,564 |
Refer to Notes to Consolidated Financial Statements.
5
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
| | | | | | | |
|---:|:---------------------------------------------------------------------------------------------------------------------|:-----------------|:-------------|:--------|:---|:-------|
| 1 | | Six Months Ended | | | | |
| 2 | | June 28,2024 | June 30,2023 | | | |
| 3 | Operating Activities | | | | | |
| 4 | Consolidated net income | $ | 5,586 | | $ | 5,634 |
| 5 | Adjustments to reconcile consolidated net income to net cash provided by operating activities: | | | | | |
| 6 | Depreciation and amortization | 531 | | 567 | | |
| 7 | Stock-based compensation expense | 140 | | 120 | | |
| 8 | Deferred income taxes | (202) | | (211) | | |
| 9 | Equity (income) loss - net of dividends | (274) | | (467) | | |
| 10 | Foreign currency adjustments | (87) | | 34 | | |
| 11 | Significant (gains) losses - net | (1,398) | | (442) | | |
| 12 | Other operating charges | 2,867 | | 1,375 | | |
| 13 | Other items | (66) | | (225) | | |
| 14 | Net change in operating assets and liabilities | (2,984) | | (1,756) | | |
| 15 | Net Cash Provided by Operating Activities | 4,113 | | 4,629 | | |
| 16 | Investing Activities | | | | | |
| 17 | Purchases of investments | (3,827) | | (2,103) | | |
| 18 | Proceeds from disposals of investments | 2,662 | | 1,608 | | |
| 19 | Acquisitions of businesses, equity method investments and nonmarketable securities | (25) | | (43) | | |
| 20 | Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 2,907 | | 320 | | |
| 21 | Purchases of property, plant and equipment | (792) | | (615) | | |
| 22 | Proceeds from disposals of property, plant and equipment | 21 | | 38 | | |
| 23 | Collateral (paid) received associated with hedging activities - net | (76) | | (15) | | |
| 24 | Other investing activities | 127 | | 44 | | |
| 25 | Net Cash Provided by (Used in) Investing Activities | 997 | | (766) | | |
| 26 | Financing Activities | | | | | |
| 27 | Issuances of loans, notes payable and long-term debt | 6,832 | | 4,638 | | |
| 28 | Payments of loans, notes payable and long-term debt | (4,734) | | (2,366) | | |
| 29 | Issuances of stock | 437 | | 359 | | |
| 30 | Purchases of stock for treasury | (874) | | (1,084) | | |
| 31 | Dividends | (2,184) | | (2,089) | | |
| 32 | Other financing activities | (9) | | (456) | | |
| 33 | Net Cash Provided by (Used in) Financing Activities | (532) | | (998) | | |
| 34 | Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (357) | | 162 | | |
| 35 | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | | | | | |
| 36 | Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 4,221 | | 3,027 | | |
| 37 | Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 9,692 | | 9,825 | | |
| 38 | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period | 13,913 | | 12,852 | | |
| 39 | Less: Restricted cash and restricted cash equivalents at end of period | 205 | | 288 | | |
| 40 | Cash and Cash Equivalents at End of Period | $ | 13,708 | | $ | 12,564 |
Refer to Notes to Consolidated Financial Statements.
5
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 5:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"> </td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Operating Activities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Consolidated net income</td><td>$</td><td>5,586 </td><td></td><td>$</td><td>5,634 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile consolidated net income to net cash provided by operating activities: </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">531 </td><td></td><td colspan="2">567 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">140 </td><td></td><td colspan="2">120 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(202)</td><td></td><td colspan="2">(211)</td><td></td></tr><tr><td colspan="3">Equity (income) loss - net of dividends</td><td colspan="2">(274)</td><td></td><td colspan="2">(467)</td><td></td></tr><tr><td colspan="3">Foreign currency adjustments</td><td colspan="2">(87)</td><td></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Significant (gains) losses - net</td><td colspan="2">(1,398)</td><td></td><td colspan="2">(442)</td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">2,867 </td><td></td><td colspan="2">1,375 </td><td></td></tr><tr><td colspan="3">Other items</td><td colspan="2">(66)</td><td></td><td colspan="2">(225)</td><td></td></tr><tr><td colspan="3">Net change in operating assets and liabilities</td><td colspan="2">(2,984)</td><td></td><td colspan="2">(1,756)</td><td></td></tr><tr><td colspan="3">Net Cash Provided by Operating Activities</td><td colspan="2">4,113 </td><td></td><td colspan="2">4,629 </td><td></td></tr><tr><td colspan="3">Investing Activities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(3,827)</td><td></td><td colspan="2">(2,103)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of investments</td><td colspan="2">2,662 </td><td></td><td colspan="2">1,608 </td><td></td></tr><tr><td colspan="3">Acquisitions of businesses, equity method investments and nonmarketable securities</td><td colspan="2">(25)</td><td></td><td colspan="2">(43)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of businesses, equity method investments and nonmarketable securities</td><td colspan="2">2,907 </td><td></td><td colspan="2">320 </td><td></td></tr><tr><td colspan="3">Purchases of property, plant and equipment</td><td colspan="2">(792)</td><td></td><td colspan="2">(615)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of property, plant and equipment</td><td colspan="2">21 </td><td></td><td colspan="2">38 </td><td></td></tr><tr><td colspan="3">Collateral (paid) received associated with hedging activities - net</td><td colspan="2">(76)</td><td></td><td colspan="2">(15)</td><td></td></tr><tr><td colspan="3">Other investing activities</td><td colspan="2">127 </td><td></td><td colspan="2">44 </td><td></td></tr><tr><td colspan="3">Net Cash Provided by (Used in) Investing Activities</td><td colspan="2">997 </td><td></td><td colspan="2">(766)</td><td></td></tr><tr><td colspan="3">Financing Activities</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Issuances of loans, notes payable and long-term debt</td><td colspan="2">6,832 </td><td></td><td colspan="2">4,638 </td><td></td></tr><tr><td colspan="3">Payments of loans, notes payable and long-term debt</td><td colspan="2">(4,734)</td><td></td><td colspan="2">(2,366)</td><td></td></tr><tr><td colspan="3">Issuances of stock</td><td colspan="2">437 </td><td></td><td colspan="2">359 </td><td></td></tr><tr><td colspan="3">Purchases of stock for treasury</td><td colspan="2">(874)</td><td></td><td colspan="2">(1,084)</td><td></td></tr><tr><td colspan="3">Dividends</td><td colspan="2">(2,184)</td><td></td><td colspan="2">(2,089)</td><td></td></tr><tr><td colspan="3">Other financing activities</td><td colspan="2">(9)</td><td></td><td colspan="2">(456)</td><td></td></tr><tr><td colspan="3">Net Cash Provided by (Used in) Financing Activities</td><td colspan="2">(532)</td><td></td><td colspan="2">(998)</td><td></td></tr><tr><td colspan="3">Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents</td><td colspan="2">(357)</td><td></td><td colspan="2">162 </td><td></td></tr><tr><td colspan="3">Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period</td><td colspan="2">4,221 </td><td></td><td colspan="2">3,027 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period</td><td colspan="2">9,692 </td><td></td><td colspan="2">9,825 </td><td></td></tr><tr><td colspan="3">Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period</td><td colspan="2">13,913 </td><td></td><td colspan="2">12,852 </td><td></td></tr><tr><td colspan="3">Less: Restricted cash and restricted cash equivalents at end of period</td><td colspan="2">205 </td><td></td><td colspan="2">288 </td><td></td></tr><tr><td colspan="3">Cash and Cash Equivalents at End of Period</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>12,564 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
5
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"> </td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Operating Activities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Consolidated net income</td><td>$</td><td>5,586 </td><td></td><td>$</td><td>5,634 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile consolidated net income to net cash provided by operating activities: </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">531 </td><td></td><td colspan="2">567 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">140 </td><td></td><td colspan="2">120 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(202)</td><td></td><td colspan="2">(211)</td><td></td></tr><tr><td colspan="3">Equity (income) loss - net of dividends</td><td colspan="2">(274)</td><td></td><td colspan="2">(467)</td><td></td></tr><tr><td colspan="3">Foreign currency adjustments</td><td colspan="2">(87)</td><td></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Significant (gains) losses - net</td><td colspan="2">(1,398)</td><td></td><td colspan="2">(442)</td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">2,867 </td><td></td><td colspan="2">1,375 </td><td></td></tr><tr><td colspan="3">Other items</td><td colspan="2">(66)</td><td></td><td colspan="2">(225)</td><td></td></tr><tr><td colspan="3">Net change in operating assets and liabilities</td><td colspan="2">(2,984)</td><td></td><td colspan="2">(1,756)</td><td></td></tr><tr><td colspan="3">Net Cash Provided by Operating Activities</td><td colspan="2">4,113 </td><td></td><td colspan="2">4,629 </td><td></td></tr><tr><td colspan="3">Investing Activities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(3,827)</td><td></td><td colspan="2">(2,103)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of investments</td><td colspan="2">2,662 </td><td></td><td colspan="2">1,608 </td><td></td></tr><tr><td colspan="3">Acquisitions of businesses, equity method investments and nonmarketable securities</td><td colspan="2">(25)</td><td></td><td colspan="2">(43)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of businesses, equity method investments and nonmarketable securities</td><td colspan="2">2,907 </td><td></td><td colspan="2">320 </td><td></td></tr><tr><td colspan="3">Purchases of property, plant and equipment</td><td colspan="2">(792)</td><td></td><td colspan="2">(615)</td><td></td></tr><tr><td colspan="3">Proceeds from disposals of property, plant and equipment</td><td colspan="2">21 </td><td></td><td colspan="2">38 </td><td></td></tr><tr><td colspan="3">Collateral (paid) received associated with hedging activities - net</td><td colspan="2">(76)</td><td></td><td colspan="2">(15)</td><td></td></tr><tr><td colspan="3">Other investing activities</td><td colspan="2">127 </td><td></td><td colspan="2">44 </td><td></td></tr><tr><td colspan="3">Net Cash Provided by (Used in) Investing Activities</td><td colspan="2">997 </td><td></td><td colspan="2">(766)</td><td></td></tr><tr><td colspan="3">Financing Activities</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Issuances of loans, notes payable and long-term debt</td><td colspan="2">6,832 </td><td></td><td colspan="2">4,638 </td><td></td></tr><tr><td colspan="3">Payments of loans, notes payable and long-term debt</td><td colspan="2">(4,734)</td><td></td><td colspan="2">(2,366)</td><td></td></tr><tr><td colspan="3">Issuances of stock</td><td colspan="2">437 </td><td></td><td colspan="2">359 </td><td></td></tr><tr><td colspan="3">Purchases of stock for treasury</td><td colspan="2">(874)</td><td></td><td colspan="2">(1,084)</td><td></td></tr><tr><td colspan="3">Dividends</td><td colspan="2">(2,184)</td><td></td><td colspan="2">(2,089)</td><td></td></tr><tr><td colspan="3">Other financing activities</td><td colspan="2">(9)</td><td></td><td colspan="2">(456)</td><td></td></tr><tr><td colspan="3">Net Cash Provided by (Used in) Financing Activities</td><td colspan="2">(532)</td><td></td><td colspan="2">(998)</td><td></td></tr><tr><td colspan="3">Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents</td><td colspan="2">(357)</td><td></td><td colspan="2">162 </td><td></td></tr><tr><td colspan="3">Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period</td><td colspan="2">4,221 </td><td></td><td colspan="2">3,027 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period</td><td colspan="2">9,692 </td><td></td><td colspan="2">9,825 </td><td></td></tr><tr><td colspan="3">Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period</td><td colspan="2">13,913 </td><td></td><td colspan="2">12,852 </td><td></td></tr><tr><td colspan="3">Less: Restricted cash and restricted cash equivalents at end of period</td><td colspan="2">205 </td><td></td><td colspan="2">288 </td><td></td></tr><tr><td colspan="3">Cash and Cash Equivalents at End of Period</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>12,564 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
5
|
q_Ra155
|
What is the Payables Turnover for Coca-Cola for the six months ended June 28, 2024?
|
Payables Turnover = Cost of Goods Sold / Average Accounts Payable = $9,047 million / (($21,909 million + $15,485 million) / 2) = 0.49
|
Ratio
|
2, 4
|
0000021344-24-000044
|
Item 1. Financial Statements
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
q_Ra156
|
What is the Days Payable Outstanding (DPO) for Coca-Cola for the six months ended June 28, 2024?
|
DPO = (Accounts Payable / Cost of Goods Sold) * Number of Days = ((21,909 + 15,485) / 2) / 9,047 * 180 = 360.00 days
|
Ratio
|
2, 4
|
0000021344-24-000044
|
Item 1. Financial Statements
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
q_Ra157
|
How does Coca-Cola's Inventory Turnover for the six months ended June 28, 2024, compare to the same period in 2023?
|
Inventory Turnover for 2024 = 2.00, Inventory Turnover for 2023 = 9,229 / ((4,424 + 4,424) / 2) = 2.09. The Inventory Turnover decreased from 2.09 in 2023 to 2.00 in 2024.
|
Ratio
|
2, 4
|
0000021344-24-000044
|
Item 1. Financial Statements
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------|:-------------------|:-------------|:-----------------|:-------------|:-------------|:-------|:-------|:-------|:---|:-------|
| 1 | | Three Months Ended | | Six Months Ended | | | | | | | |
| 2 | | June 28,2024 | June 30,2023 | | June 28,2024 | June 30,2023 | | | | | |
| 3 | Net Operating Revenues | $ | 12,363 | | $ | 11,972 | | $ | 23,663 | $ | 22,952 |
| 4 | Cost of goods sold | 4,812 | | 4,912 | | | 9,047 | 9,229 | | | |
| 5 | Gross Profit | 7,551 | | 7,060 | | | 14,616 | 13,723 | | | |
| 6 | Selling, general and administrative expenses | 3,549 | | 3,321 | | | 6,900 | 6,506 | | | |
| 7 | Other operating charges | 1,370 | | 1,338 | | | 2,943 | 1,449 | | | |
| 8 | Operating Income | 2,632 | | 2,401 | | | 4,773 | 5,768 | | | |
| 9 | Interest income | 275 | | 224 | | | 521 | 392 | | | |
| 10 | Interest expense | 418 | | 374 | | | 800 | 746 | | | |
| 11 | Equity income (loss) - net | 537 | | 538 | | | 891 | 813 | | | |
| 12 | Other income (loss) - net | 2 | | 91 | | | 1,515 | 706 | | | |
| 13 | Income Before Income Taxes | 3,028 | | 2,880 | | | 6,900 | 6,933 | | | |
| 14 | Income taxes | 627 | | 359 | | | 1,314 | 1,299 | | | |
| 15 | Consolidated Net Income | 2,401 | | 2,521 | | | 5,586 | 5,634 | | | |
| 16 | Less: Net income (loss) attributable to noncontrolling interests | (10) | | (26) | | | (2) | (20) | | | |
| 17 | Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,411 | | $ | 2,547 | | $ | 5,588 | $ | 5,654 |
| 18 | Basic Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.30 | $ | 1.31 |
| 19 | Diluted Net Income Per Share1 | $ | 0.56 | | $ | 0.59 | | $ | 1.29 | $ | 1.30 |
| 20 | Average Shares Outstanding - Basic | 4,309 | | 4,325 | | | 4,309 | 4,325 | | | |
| 21 | Effect of dilutive securities | 10 | | 16 | | | 12 | 18 | | | |
| 22 | Average Shares Outstanding - Diluted | 4,319 | | 4,341 | | | 4,321 | 4,343 | | | |
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
| | | | | | | |
|---:|:------------------------------------------------------------------------------------------------|:-------------|:-----------------|:---------|:---|:-------|
| 1 | | June 28,2024 | December 31,2023 | | | |
| 2 | ASSETS | | | | | |
| 3 | Current Assets | | | | | |
| 4 | Cash and cash equivalents | $ | 13,708 | | $ | 9,366 |
| 5 | Short-term investments | 3,691 | | 2,997 | | |
| 6 | Total Cash, Cash Equivalents and Short-Term Investments | 17,399 | | 12,363 | | |
| 7 | Marketable securities | 1,594 | | 1,300 | | |
| 8 | Trade accounts receivable, less allowances of $502 and $502, respectively | 4,545 | | 3,410 | | |
| 9 | Inventories | 4,763 | | 4,424 | | |
| 10 | Prepaid expenses and other current assets | 3,298 | | 5,235 | | |
| 11 | Total Current Assets | 31,599 | | 26,732 | | |
| 12 | Equity method investments | 18,940 | | 19,671 | | |
| 13 | Other investments | 167 | | 118 | | |
| 14 | Other noncurrent assets | 7,274 | | 7,162 | | |
| 15 | Deferred income tax assets | 1,409 | | 1,561 | | |
| 16 | Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively | 9,508 | | 9,236 | | |
| 17 | Trademarks with indefinite lives | 13,510 | | 14,349 | | |
| 18 | Goodwill | 18,324 | | 18,358 | | |
| 19 | Other intangible assets | 471 | | 516 | | |
| 20 | Total Assets | $ | 101,202 | | $ | 97,703 |
| 21 | LIABILITIES AND EQUITY | | | | | |
| 22 | Current Liabilities | | | | | |
| 23 | Accounts payable and accrued expenses | $ | 21,909 | | $ | 15,485 |
| 24 | Loans and notes payable | 3,793 | | 4,557 | | |
| 25 | Current maturities of long-term debt | 1,939 | | 1,960 | | |
| 26 | Accrued income taxes | 1,622 | | 1,569 | | |
| 27 | Total Current Liabilities | 29,263 | | 23,571 | | |
| 28 | Long-term debt | 38,085 | | 35,547 | | |
| 29 | Other noncurrent liabilities | 4,077 | | 8,466 | | |
| 30 | Deferred income tax liabilities | 2,366 | | 2,639 | | |
| 31 | The Coca-Cola Company Shareowners' Equity | | | | | |
| 32 | Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares | 1,760 | | 1,760 | | |
| 33 | Capital surplus | 19,468 | | 19,209 | | |
| 34 | Reinvested earnings | 75,189 | | 73,782 | | |
| 35 | Accumulated other comprehensive income (loss) | (15,458) | | (14,275) | | |
| 36 | Treasury stock, at cost - 2,731 and 2,732 shares, respectively | (55,106) | | (54,535) | | |
| 37 | Equity Attributable to Shareowners of The Coca-Cola Company | 25,853 | | 25,941 | | |
| 38 | Equity attributable to noncontrolling interests | 1,558 | | 1,539 | | |
| 39 | Total Equity | 27,411 | | 27,480 | | |
| 40 | Total Liabilities and Equity | $ | 101,202 | | $ | 97,703 |
Refer to Notes to Consolidated Financial Statements.
4
|
COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 2:
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
, COCA COLA CO 10-Q form for quarterly period ended 2024-06-28, page 4:
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
|
Item 1. Financial Statements
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">Three Months Ended</td><td colspan="3"></td><td colspan="6">Six Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">June 30,2023</td></tr><tr><td colspan="3">Net Operating Revenues</td><td>$</td><td>12,363 </td><td></td><td>$</td><td>11,972 </td><td></td><td colspan="3"></td><td>$</td><td>23,663 </td><td></td><td>$</td><td>22,952 </td><td></td></tr><tr><td colspan="3">Cost of goods sold</td><td colspan="2">4,812 </td><td></td><td colspan="2">4,912 </td><td></td><td colspan="3"></td><td colspan="2">9,047 </td><td></td><td colspan="2">9,229 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">7,551 </td><td></td><td colspan="2">7,060 </td><td></td><td colspan="3"></td><td colspan="2">14,616 </td><td></td><td colspan="2">13,723 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="2">3,549 </td><td></td><td colspan="2">3,321 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,506 </td><td></td></tr><tr><td colspan="3">Other operating charges</td><td colspan="2">1,370 </td><td></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">2,943 </td><td></td><td colspan="2">1,449 </td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">2,632 </td><td></td><td colspan="2">2,401 </td><td></td><td colspan="3"></td><td colspan="2">4,773 </td><td></td><td colspan="2">5,768 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">275 </td><td></td><td colspan="2">224 </td><td></td><td colspan="3"></td><td colspan="2">521 </td><td></td><td colspan="2">392 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">418 </td><td></td><td colspan="2">374 </td><td></td><td colspan="3"></td><td colspan="2">800 </td><td></td><td colspan="2">746 </td><td></td></tr><tr><td colspan="3">Equity income (loss) - net</td><td colspan="2">537 </td><td></td><td colspan="2">538 </td><td></td><td colspan="3"></td><td colspan="2">891 </td><td></td><td colspan="2">813 </td><td></td></tr><tr><td colspan="3">Other income (loss) - net</td><td colspan="2">2 </td><td></td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">1,515 </td><td></td><td colspan="2">706 </td><td></td></tr><tr><td colspan="3">Income Before Income Taxes</td><td colspan="2">3,028 </td><td></td><td colspan="2">2,880 </td><td></td><td colspan="3"></td><td colspan="2">6,900 </td><td></td><td colspan="2">6,933 </td><td></td></tr><tr><td colspan="3">Income taxes </td><td colspan="2">627 </td><td></td><td colspan="2">359 </td><td></td><td colspan="3"></td><td colspan="2">1,314 </td><td></td><td colspan="2">1,299 </td><td></td></tr><tr><td colspan="3">Consolidated Net Income</td><td colspan="2">2,401 </td><td></td><td colspan="2">2,521 </td><td></td><td colspan="3"></td><td colspan="2">5,586 </td><td></td><td colspan="2">5,634 </td><td></td></tr><tr><td colspan="3">Less: Net income (loss) attributable to noncontrolling interests</td><td colspan="2">(10)</td><td></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="2">(20)</td><td></td></tr><tr><td colspan="3">Net Income Attributable to Shareowners of The Coca-Cola Company</td><td>$</td><td>2,411 </td><td></td><td>$</td><td>2,547 </td><td></td><td colspan="3"></td><td>$</td><td>5,588 </td><td></td><td>$</td><td>5,654 </td><td></td></tr><tr><td colspan="3">Basic Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.30 </td><td></td><td>$</td><td>1.31 </td><td></td></tr><tr><td colspan="3">Diluted Net Income Per Share1</td><td>$</td><td>0.56 </td><td></td><td>$</td><td>0.59 </td><td></td><td colspan="3"></td><td>$</td><td>1.29 </td><td></td><td>$</td><td>1.30 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Basic</td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td><td colspan="3"></td><td colspan="2">4,309 </td><td></td><td colspan="2">4,325 </td><td></td></tr><tr><td colspan="3">Effect of dilutive securities</td><td colspan="2">10 </td><td></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Average Shares Outstanding - Diluted</td><td colspan="2">4,319 </td><td></td><td colspan="2">4,341 </td><td></td><td colspan="3"></td><td colspan="2">4,321 </td><td></td><td colspan="2">4,343 </td><td></td></tr></table>
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
2
,
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions except par value)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">June 28,2024</td><td colspan="3">December 31,2023</td></tr><tr><td colspan="9">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>13,708 </td><td></td><td>$</td><td>9,366 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">3,691 </td><td></td><td colspan="2">2,997 </td><td></td></tr><tr><td colspan="3">Total Cash, Cash Equivalents and Short-Term Investments</td><td colspan="2">17,399 </td><td></td><td colspan="2">12,363 </td><td></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="2">1,594 </td><td></td><td colspan="2">1,300 </td><td></td></tr><tr><td colspan="3">Trade accounts receivable, less allowances of $502 and $502, respectively</td><td colspan="2">4,545 </td><td></td><td colspan="2">3,410 </td><td></td></tr><tr><td colspan="3">Inventories</td><td colspan="2">4,763 </td><td></td><td colspan="2">4,424 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,298 </td><td></td><td colspan="2">5,235 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">31,599 </td><td></td><td colspan="2">26,732 </td><td></td></tr><tr><td colspan="3">Equity method investments</td><td colspan="2">18,940 </td><td></td><td colspan="2">19,671 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">167 </td><td></td><td colspan="2">118 </td><td></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">7,274 </td><td></td><td colspan="2">7,162 </td><td></td></tr><tr><td colspan="3">Deferred income tax assets</td><td colspan="2">1,409 </td><td></td><td colspan="2">1,561 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, less accumulated depreciation of $9,492 and $9,233, respectively</td><td colspan="2">9,508 </td><td></td><td colspan="2">9,236 </td><td></td></tr><tr><td colspan="3">Trademarks with indefinite lives</td><td colspan="2">13,510 </td><td></td><td colspan="2">14,349 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">18,324 </td><td></td><td colspan="2">18,358 </td><td></td></tr><tr><td colspan="3">Other intangible assets</td><td colspan="2">471 </td><td></td><td colspan="2">516 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr><tr><td colspan="9">LIABILITIES AND EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td>$</td><td>21,909 </td><td></td><td>$</td><td>15,485 </td><td></td></tr><tr><td colspan="3">Loans and notes payable</td><td colspan="2">3,793 </td><td></td><td colspan="2">4,557 </td><td></td></tr><tr><td colspan="3">Current maturities of long-term debt</td><td colspan="2">1,939 </td><td></td><td colspan="2">1,960 </td><td></td></tr><tr><td colspan="3">Accrued income taxes</td><td colspan="2">1,622 </td><td></td><td colspan="2">1,569 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">29,263 </td><td></td><td colspan="2">23,571 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">38,085 </td><td></td><td colspan="2">35,547 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">4,077 </td><td></td><td colspan="2">8,466 </td><td></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="2">2,366 </td><td></td><td colspan="2">2,639 </td><td></td></tr><tr><td colspan="3">The Coca-Cola Company Shareowners' Equity</td><td colspan="3"> </td><td colspan="3"> </td></tr><tr><td colspan="3">Common stock, $0.25 par value; authorized - 11,200 shares; issued - 7,040 shares</td><td colspan="2">1,760 </td><td></td><td colspan="2">1,760 </td><td></td></tr><tr><td colspan="3">Capital surplus</td><td colspan="2">19,468 </td><td></td><td colspan="2">19,209 </td><td></td></tr><tr><td colspan="3">Reinvested earnings</td><td colspan="2">75,189 </td><td></td><td colspan="2">73,782 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(15,458)</td><td></td><td colspan="2">(14,275)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost - 2,731 and 2,732 shares, respectively</td><td colspan="2">(55,106)</td><td></td><td colspan="2">(54,535)</td><td></td></tr><tr><td colspan="3">Equity Attributable to Shareowners of The Coca-Cola Company</td><td colspan="2">25,853 </td><td></td><td colspan="2">25,941 </td><td></td></tr><tr><td colspan="3">Equity attributable to noncontrolling interests</td><td colspan="2">1,558 </td><td></td><td colspan="2">1,539 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="2">27,411 </td><td></td><td colspan="2">27,480 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td>$</td><td>101,202 </td><td></td><td>$</td><td>97,703 </td><td></td></tr></table>
Refer to Notes to Consolidated Financial Statements.
4
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q_Ra158
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How much did Tesla's net income increase from 2022 to 2023?
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Tesla's net income increased from $12,587 million in 2022 to $14,974 million in 2023, which is an increase of approximately 18.95%.
|
Ratio
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50
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0001628280-24-002390
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
q_Ra159
|
Compare Tesla's gross profit in 2022 and 2023.
|
Tesla's gross profit decreased from $20,853 million in 2022 to $17,660 million in 2023, which is a decrease of approximately 15.3%.
|
Ratio
|
50
|
0001628280-24-002390
|
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
q_Ra160
|
What was Tesla's return on equity (ROE) for the year 2023?
|
To calculate Tesla's ROE for 2023, we use the formula: ROE = Net Income / Total Stockholders' Equity. For 2023, ROE = $14,974 million / $62,634 million = 23.9%.
|
Ratio
|
49,50
|
0001628280-24-002390
|
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
, Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
, Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
, Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
, Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
q_Ra161
|
What was Tesla's profit margin in 2023?
|
To calculate Tesla's profit margin for 2023, we use the formula: Profit Margin = Net Income / Total Revenues. For 2023, Profit Margin = $14,974 million / $96,773 million = 15.5%.
|
Ratio
|
50
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0001628280-24-002390
|
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
q_Ra162
|
What was Tesla's interest coverage ratio in 2023?
|
To calculate Tesla's interest coverage ratio for 2023, we use the formula: Interest Coverage Ratio = Income from Operations / Interest Expense. For 2023, Interest Coverage Ratio = $8,891 million / $156 million = 57.0.
|
Ratio
|
50
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0001628280-24-002390
|
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
q_Ra163
|
What was the net change in Tesla's total liabilities from 2022 to 2023?
|
The net change in Tesla's total liabilities from 2022 to 2023 was an increase of $6,569 million, which is approximately 18.0%.
|
Ratio
|
49
|
0001628280-24-002390
|
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
|
q_Ra164
|
What was Tesla's current ratio in 2023?
|
To calculate Tesla's current ratio for 2023, we use the formula: Current Ratio = Total Current Assets / Total Current Liabilities. For 2023, Current Ratio = $49,616 million / $28,748 million = 1.73.
|
Ratio
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49
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0001628280-24-002390
|
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
|
q_Ra165
|
What was Tesla's quick ratio in 2022?
|
To calculate Tesla's quick ratio for 2022, we use the formula: Quick Ratio = (Total Current Assets - Inventory) / Total Current Liabilities. For 2022, Quick Ratio = ($40,917 million - $12,839 million) / $26,709 million = 1.05.
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Ratio
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49
|
0001628280-24-002390
|
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
|
q_Ra166
|
What was the net change in Tesla's cash and cash equivalents from 2022 to 2023?
|
The net change in Tesla's cash and cash equivalents from 2022 to 2023 was an increase of $145 million, which is approximately 0.89%.
|
Ratio
|
49
|
0001628280-24-002390
|
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
|
q_Ra167
|
What was Tesla's inventory turnover ratio in 2023?
|
To calculate Tesla's inventory turnover ratio for 2023, we use the formula: Inventory Turnover Ratio = Cost of Revenues / Average Inventory. For 2023, Inventory Turnover Ratio = $79,113 million / (($13,626 million + $12,839 million) / 2) = 6.0.
|
Ratio
|
49,50
|
0001628280-24-002390
|
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
, Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
| | | | | | | | |
|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:-------|:---|:-------|
| 1 | | December 31,2023 | | December 31,2022 | | | |
| 2 | Assets | | | | | | |
| 3 | Current assets | | | | | | |
| 4 | Cash and cash equivalents | $ | 16,398 | | | $ | 16,253 |
| 5 | Short-term investments | 12,696 | | | 5,932 | | |
| 6 | Accounts receivable, net | 3,508 | | | 2,952 | | |
| 7 | Inventory | 13,626 | | | 12,839 | | |
| 8 | Prepaid expenses and other current assets | 3,388 | | | 2,941 | | |
| 9 | Total current assets | 49,616 | | | 40,917 | | |
| 10 | Operating lease vehicles, net | 5,989 | | | 5,035 | | |
| 11 | Solar energy systems, net | 5,229 | | | 5,489 | | |
| 12 | Property, plant and equipment, net | 29,725 | | | 23,548 | | |
| 13 | Operating lease right-of-use assets | 4,180 | | | 2,563 | | |
| 14 | Digital assets, net | 184 | | | 184 | | |
| 15 | Intangible assets, net | 178 | | | 215 | | |
| 16 | Goodwill | 253 | | | 194 | | |
| 17 | Deferred tax assets | 6,733 | | | 328 | | |
| 18 | Other non-current assets | 4,531 | | | 3,865 | | |
| 19 | Total assets | $ | 106,618 | | | $ | 82,338 |
| 20 | Liabilities | | | | | | |
| 21 | Current liabilities | | | | | | |
| 22 | Accounts payable | $ | 14,431 | | | $ | 15,255 |
| 23 | Accrued liabilities and other | 9,080 | | | 8,205 | | |
| 24 | Deferred revenue | 2,864 | | | 1,747 | | |
| 25 | Current portion of debt and finance leases | 2,373 | | | 1,502 | | |
| 26 | Total current liabilities | 28,748 | | | 26,709 | | |
| 27 | Debt and finance leases, net of current portion | 2,857 | | | 1,597 | | |
| 28 | Deferred revenue, net of current portion | 3,251 | | | 2,804 | | |
| 29 | Other long-term liabilities | 8,153 | | | 5,330 | | |
| 30 | Total liabilities | 43,009 | | | 36,440 | | |
| 31 | Commitments and contingencies (Note 15) | | | | | | |
| 32 | Redeemable noncontrolling interests in subsidiaries | 242 | | | 409 | | |
| 33 | Equity | | | | | | |
| 34 | Stockholders' equity | | | | | | |
| 35 | Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding | - | | | - | | |
| 36 | Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 3 | | | 3 | | |
| 37 | Additional paid-in capital | 34,892 | | | 32,177 | | |
| 38 | Accumulated other comprehensive loss | (143) | | | (361) | | |
| 39 | Retained earnings | 27,882 | | | 12,885 | | |
| 40 | Total stockholders' equity | 62,634 | | | 44,704 | | |
| 41 | Noncontrolling interests in subsidiaries | 733 | | | 785 | | |
| 42 | Total liabilities and equity | $ | 106,618 | | | $ | 82,338 |
The accompanying notes are an integral part of these consolidated financial statements.
49
, Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
| | | | | | | | | | | |
|---:|:-------------------------------------------------------------------------------------------------------------------|:------------------------|:-------|:------|:-------|:------|:-------|:-------|:---|:-------|
| 1 | | Year Ended December 31, | | | | | | | | |
| 2 | | 2023 | | 2022 | | 2021 | | | | |
| 3 | Revenues | | | | | | | | | |
| 4 | Automotive sales | $ | 78,509 | | | $ | 67,210 | | $ | 44,125 |
| 5 | Automotive regulatory credits | 1,790 | | | 1,776 | | | 1,465 | | |
| 6 | Automotive leasing | 2,120 | | | 2,476 | | | 1,642 | | |
| 7 | Total automotive revenues | 82,419 | | | 71,462 | | | 47,232 | | |
| 8 | Energy generation and storage | 6,035 | | | 3,909 | | | 2,789 | | |
| 9 | Services and other | 8,319 | | | 6,091 | | | 3,802 | | |
| 10 | Total revenues | 96,773 | | | 81,462 | | | 53,823 | | |
| 11 | Cost of revenues | | | | | | | | | |
| 12 | Automotive sales | 65,121 | | | 49,599 | | | 32,415 | | |
| 13 | Automotive leasing | 1,268 | | | 1,509 | | | 978 | | |
| 14 | Total automotive cost of revenues | 66,389 | | | 51,108 | | | 33,393 | | |
| 15 | Energy generation and storage | 4,894 | | | 3,621 | | | 2,918 | | |
| 16 | Services and other | 7,830 | | | 5,880 | | | 3,906 | | |
| 17 | Total cost of revenues | 79,113 | | | 60,609 | | | 40,217 | | |
| 18 | Gross profit | 17,660 | | | 20,853 | | | 13,606 | | |
| 19 | Operating expenses | | | | | | | | | |
| 20 | Research and development | 3,969 | | | 3,075 | | | 2,593 | | |
| 21 | Selling, general and administrative | 4,800 | | | 3,946 | | | 4,517 | | |
| 22 | Restructuring and other | - | | | 176 | | | (27) | | |
| 23 | Total operating expenses | 8,769 | | | 7,197 | | | 7,083 | | |
| 24 | Income from operations | 8,891 | | | 13,656 | | | 6,523 | | |
| 25 | Interest income | 1,066 | | | 297 | | | 56 | | |
| 26 | Interest expense | (156) | | | (191) | | | (371) | | |
| 27 | Other income (expense), net | 172 | | | (43) | | | 135 | | |
| 28 | Income before income taxes | 9,973 | | | 13,719 | | | 6,343 | | |
| 29 | (Benefit from) provision for income taxes | (5,001) | | | 1,132 | | | 699 | | |
| 30 | Net income | 14,974 | | | 12,587 | | | 5,644 | | |
| 31 | Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries | (23) | | | 31 | | | 125 | | |
| 32 | Net income attributable to common stockholders | $ | 14,997 | | | $ | 12,556 | | $ | 5,519 |
| 34 | Net income per share of common stock attributable to common stockholders | | | | | | | | | |
| 35 | Basic | $ | 4.73 | | | $ | 4.02 | | $ | 1.87 |
| 36 | Diluted | $ | 4.30 | | | $ | 3.62 | | $ | 1.63 |
| 37 | Weighted average shares used in computing net income per share of common stock | | | | | | | | | |
| 38 | Basic | 3,174 | | 3,130 | | 2,959 | | | | |
| 39 | Diluted | 3,485 | | 3,475 | | 3,386 | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 49: Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
, Tesla, Inc. 10-K form for the fiscal year ended 2023-12-31, page 50: Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
Tesla, Inc.
Consolidated Balance Sheets
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>16,398 </td><td></td><td colspan="3"></td><td>$</td><td>16,253 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">12,696 </td><td></td><td colspan="3"></td><td colspan="2">5,932 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net</td><td colspan="2">3,508 </td><td></td><td colspan="3"></td><td colspan="2">2,952 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">13,626 </td><td></td><td colspan="3"></td><td colspan="2">12,839 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">3,388 </td><td></td><td colspan="3"></td><td colspan="2">2,941 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">49,616 </td><td></td><td colspan="3"></td><td colspan="2">40,917 </td><td></td></tr><tr><td colspan="3">Operating lease vehicles, net</td><td colspan="2">5,989 </td><td></td><td colspan="3"></td><td colspan="2">5,035 </td><td></td></tr><tr><td colspan="3">Solar energy systems, net</td><td colspan="2">5,229 </td><td></td><td colspan="3"></td><td colspan="2">5,489 </td><td></td></tr><tr><td colspan="3">Property, plant and equipment, net</td><td colspan="2">29,725 </td><td></td><td colspan="3"></td><td colspan="2">23,548 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">4,180 </td><td></td><td colspan="3"></td><td colspan="2">2,563 </td><td></td></tr><tr><td colspan="3">Digital assets, net</td><td colspan="2">184 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">215 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">194 </td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">6,733 </td><td></td><td colspan="3"></td><td colspan="2">328 </td><td></td></tr><tr><td colspan="3">Other non-current assets</td><td colspan="2">4,531 </td><td></td><td colspan="3"></td><td colspan="2">3,865 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>14,431 </td><td></td><td colspan="3"></td><td>$</td><td>15,255 </td><td></td></tr><tr><td colspan="3">Accrued liabilities and other</td><td colspan="2">9,080 </td><td></td><td colspan="3"></td><td colspan="2">8,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,864 </td><td></td><td colspan="3"></td><td colspan="2">1,747 </td><td></td></tr><tr><td colspan="3">Current portion of debt and finance leases</td><td colspan="2">2,373 </td><td></td><td colspan="3"></td><td colspan="2">1,502 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">28,748 </td><td></td><td colspan="3"></td><td colspan="2">26,709 </td><td></td></tr><tr><td colspan="3">Debt and finance leases, net of current portion</td><td colspan="2">2,857 </td><td></td><td colspan="3"></td><td colspan="2">1,597 </td><td></td></tr><tr><td colspan="3">Deferred revenue, net of current portion</td><td colspan="2">3,251 </td><td></td><td colspan="3"></td><td colspan="2">2,804 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">5,330 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">43,009 </td><td></td><td colspan="3"></td><td colspan="2">36,440 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (Note 15)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests in subsidiaries</td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">409 </td><td></td></tr><tr><td colspan="3">Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; $0.001 par value; 100 shares authorized; no shares issued and outstanding</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock; $0.001 par value; 6,000 shares authorized; 3,185 and 3,164 shares issued and outstanding as of December 31, 2023 and 2022, respectively</td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">34,892 </td><td></td><td colspan="3"></td><td colspan="2">32,177 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(143)</td><td></td><td colspan="3"></td><td colspan="2">(361)</td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">27,882 </td><td></td><td colspan="3"></td><td colspan="2">12,885 </td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">62,634 </td><td></td><td colspan="3"></td><td colspan="2">44,704 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in subsidiaries</td><td colspan="2">733 </td><td></td><td colspan="3"></td><td colspan="2">785 </td><td></td></tr><tr><td colspan="3">Total liabilities and equity</td><td>$</td><td>106,618 </td><td></td><td colspan="3"></td><td>$</td><td>82,338 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
49
, Tesla, Inc.
Consolidated Statements of Operations
(in millions, except per share data)
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td>$</td><td>78,509 </td><td></td><td colspan="3"></td><td>$</td><td>67,210 </td><td></td><td colspan="3"></td><td>$</td><td>44,125 </td><td></td></tr><tr><td colspan="3">Automotive regulatory credits</td><td colspan="2">1,790 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">1,465 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">2,120 </td><td></td><td colspan="3"></td><td colspan="2">2,476 </td><td></td><td colspan="3"></td><td colspan="2">1,642 </td><td></td></tr><tr><td colspan="3">Total automotive revenues</td><td colspan="2">82,419 </td><td></td><td colspan="3"></td><td colspan="2">71,462 </td><td></td><td colspan="3"></td><td colspan="2">47,232 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">6,035 </td><td></td><td colspan="3"></td><td colspan="2">3,909 </td><td></td><td colspan="3"></td><td colspan="2">2,789 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">8,319 </td><td></td><td colspan="3"></td><td colspan="2">6,091 </td><td></td><td colspan="3"></td><td colspan="2">3,802 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">96,773 </td><td></td><td colspan="3"></td><td colspan="2">81,462 </td><td></td><td colspan="3"></td><td colspan="2">53,823 </td><td></td></tr><tr><td colspan="3">Cost of revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Automotive sales</td><td colspan="2">65,121 </td><td></td><td colspan="3"></td><td colspan="2">49,599 </td><td></td><td colspan="3"></td><td colspan="2">32,415 </td><td></td></tr><tr><td colspan="3">Automotive leasing</td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,509 </td><td></td><td colspan="3"></td><td colspan="2">978 </td><td></td></tr><tr><td colspan="3">Total automotive cost of revenues</td><td colspan="2">66,389 </td><td></td><td colspan="3"></td><td colspan="2">51,108 </td><td></td><td colspan="3"></td><td colspan="2">33,393 </td><td></td></tr><tr><td colspan="3">Energy generation and storage</td><td colspan="2">4,894 </td><td></td><td colspan="3"></td><td colspan="2">3,621 </td><td></td><td colspan="3"></td><td colspan="2">2,918 </td><td></td></tr><tr><td colspan="3">Services and other</td><td colspan="2">7,830 </td><td></td><td colspan="3"></td><td colspan="2">5,880 </td><td></td><td colspan="3"></td><td colspan="2">3,906 </td><td></td></tr><tr><td colspan="3">Total cost of revenues</td><td colspan="2">79,113 </td><td></td><td colspan="3"></td><td colspan="2">60,609 </td><td></td><td colspan="3"></td><td colspan="2">40,217 </td><td></td></tr><tr><td colspan="3">Gross profit</td><td colspan="2">17,660 </td><td></td><td colspan="3"></td><td colspan="2">20,853 </td><td></td><td colspan="3"></td><td colspan="2">13,606 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">3,969 </td><td></td><td colspan="3"></td><td colspan="2">3,075 </td><td></td><td colspan="3"></td><td colspan="2">2,593 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative</td><td colspan="2">4,800 </td><td></td><td colspan="3"></td><td colspan="2">3,946 </td><td></td><td colspan="3"></td><td colspan="2">4,517 </td><td></td></tr><tr><td colspan="3">Restructuring and other</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">176 </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,769 </td><td></td><td colspan="3"></td><td colspan="2">7,197 </td><td></td><td colspan="3"></td><td colspan="2">7,083 </td><td></td></tr><tr><td colspan="3">Income from operations</td><td colspan="2">8,891 </td><td></td><td colspan="3"></td><td colspan="2">13,656 </td><td></td><td colspan="3"></td><td colspan="2">6,523 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">1,066 </td><td></td><td colspan="3"></td><td colspan="2">297 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">(156)</td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td><td colspan="3"></td><td colspan="2">(371)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td><td colspan="3"></td><td colspan="2">135 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">9,973 </td><td></td><td colspan="3"></td><td colspan="2">13,719 </td><td></td><td colspan="3"></td><td colspan="2">6,343 </td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="2">(5,001)</td><td></td><td colspan="3"></td><td colspan="2">1,132 </td><td></td><td colspan="3"></td><td colspan="2">699 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">12,587 </td><td></td><td colspan="3"></td><td colspan="2">5,644 </td><td></td></tr><tr><td colspan="3">Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td></tr><tr><td colspan="3">Net income attributable to common stockholders</td><td>$</td><td>14,997 </td><td></td><td colspan="3"></td><td>$</td><td>12,556 </td><td></td><td colspan="3"></td><td>$</td><td>5,519 </td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per share of common stock attributable to common stockholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>4.73 </td><td></td><td colspan="3"></td><td>$</td><td>4.02 </td><td></td><td colspan="3"></td><td>$</td><td>1.87 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>4.30 </td><td></td><td colspan="3"></td><td>$</td><td>3.62 </td><td></td><td colspan="3"></td><td>$</td><td>1.63 </td><td></td></tr><tr><td colspan="3">Weighted average shares used in computing net income per share of common stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">3,174</td><td colspan="3"></td><td colspan="3">3,130</td><td colspan="3"></td><td colspan="3">2,959</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">3,485</td><td colspan="3"></td><td colspan="3">3,475</td><td colspan="3"></td><td colspan="3">3,386</td></tr></table>The accompanying notes are an integral part of these consolidated financial statements.
50
|
q_Ra168
|
What is the Return on Assets (ROA) for Nike in fiscal year 2018?
|
Net Income (Fiscal Year 2018): $1,933 million
Total Assets at the end of Fiscal Year 2018: $22,536 million
Total Assets at the end of Fiscal Year 2017: $23,259 million
To calculate Average Total Assets:
Average Total Assets = (Total Assets at 2018 + Total Assets at 2017) / 2
Average Total Assets = (22,536 + 23,259) / 2 = 22,897.5 million
To calculate ROA (Return on Assets):
ROA = (Net Income / Average Total Assets) × 100
ROA = (1,933 / 22,897.5) × 100 ≈ 8.44%
|
Ratio
|
44, 46
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
q_Ra169
|
What is Nike's Current Ratio for fiscal year 2018, and how is it calculated?
|
To calculate Nike's current ratio for 2018, we use the formula:
Current Ratio = Total Current Assets / Total Current Liabilities
From the document:
Total Current Assets for 2018 = $15,134 million
Total Current Liabilities for 2018 = $6,040 million
Substituting the values:
Current Ratio = 15,134 / 6,040 ≈ 2.51
Thus, Nike's current ratio for 2018 is approximately 2.51.
|
Ratio
|
46
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
q_Ra170
|
What is Nike's Quick Ratio for fiscal year 2018?
|
Method 1: To calculate Nike's Quick Ratio for 2018, we use the formula:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Data from the document:
Total Current Assets (2018) = $15,134 million
Inventory (2018) = $5,261 million
Total Current Liabilities (2018) = $6,040 million
Substituting the values:
Quick Ratio = (15,134 - 5,261) / 6,040
Quick Ratio = 9,873 / 6,040 ≈ 1.63
Thus, Nike's Quick Ratio for 2018 is approximately 1.63
Method 2: To calculate Nike's Quick Ratio for fiscal year 2018, we use the formula:
Quick Ratio = (Cash and Equivalents + Short-term Investments + Accounts Receivable) / Total Current Liabilities
Data from the document:
Cash and Equivalents = $4,249 million
Short-term Investments = $996 million
Accounts Receivable, net = $3,498 million
Total Current Liabilities = $6,040 million
Substituting the values:
Quick Ratio = (4,249 + 996 + 3,498) / 6,040
Quick Ratio = 8,743 / 6,040 ≈ 1.45
Thus, Nike's Quick Ratio for fiscal year 2018 is approximately 1.45.
|
Ratio
|
46
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0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
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q_Ra171
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What is Nike's Asset Turnover Ratio for fiscal year 2018?
|
To calculate Nike's Asset Turnover Ratio for 2018, we use the formula:
Asset Turnover Ratio = Total Revenue / Average Total Assets
Data from the document:
Total Revenue (2018) = $36,397 million
Total Assets (2018) = $22,536 million
Total Assets (2017) = $23,259 million
Step 1: Calculate Average Total Assets:
Average Total Assets = (Total Assets in 2018 + Total Assets in 2017) / 2
Average Total Assets = (22,536 + 23,259) / 2 = 22,897.5 million
Step 2: Calculate Asset Turnover Ratio:
Asset Turnover Ratio = 36,397 / 22,897.5 ≈ 1.59
Thus, Nike's Asset Turnover Ratio for 2018 is approximately 1.59.
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Ratio
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44, 46
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0000320187-18-000142
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ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
q_Ra172
|
What is Nike's Inventory Turnover Ratio for fiscal year 2018
|
To calculate Nike's Inventory Turnover Ratio for 2018, we use the formula:
Inventory Turnover Ratio = Cost of Goods Sold (COGS) / Average Inventory
Data from the document:
Cost of Goods Sold (COGS) = $20,441 million
Inventory at the end of 2018 = $5,261 million
Inventory at the end of 2017 = $5,055 million
Step 1: Calculate Average Inventory:
Average Inventory = (Inventory at the end of 2018 + Inventory at the end of 2017) / 2
Average Inventory = (5,261 + 5,055) / 2 = 5,158 million
Step 2: Calculate Inventory Turnover Ratio:
Inventory Turnover Ratio = 20,441 / 5,158 ≈ 3.96
Thus, Nike's Inventory Turnover Ratio for 2018 is approximately 3.96
|
Ratio
|
44, 46
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
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NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
q_Ra173
|
What is Nike's Financial Leverage Ratio for fiscal year 2018?
|
To calculate Nike's Financial Leverage Ratio for 2018, we use the formula:
Financial Leverage Ratio = Total Debt / Shareholders’ Equity
Data from the document:
Total Debt (2018) = $3,468 million
Shareholders’ Equity (2018) = $9,812 million
Calculation:
Financial Leverage Ratio = 3,468 / 9,812 ≈ 0.35
Thus, Nike's Financial Leverage Ratio for 2018 is approximately 0.35.
|
Ratio
|
46
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
q_Ra174
|
What is Nike's Accounts Payable Turnover Ratio for fiscal year 2018?
|
To calculate Nike's Accounts Payable Turnover Ratio for fiscal year 2018, we use the formula:
Accounts Payable Turnover Ratio = Cost of Goods Sold (COGS) / Average Accounts Payable
Cost of Goods Sold (COGS) for 2018 = $20,441 million
Accounts Payable at the end of 2018 = $2,279 million
Accounts Payable at the end of 2017 = $2,048 million
Calculate Average Accounts Payable:
Average Accounts Payable = (Accounts Payable at 2018 + Accounts Payable at 2017) / 2
Average Accounts Payable = (2,279 + 2,048) / 2 = $2,163.5 million
Calculate Accounts Payable Turnover Ratio:
Accounts Payable Turnover Ratio = 20,441 / 2,163.5 ≈ 9.45
Thus, Nike's Accounts Payable Turnover Ratio for fiscal year 2018 is approximately 9.45.
|
Ratio
|
44, 46
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
q_Ra175
|
How many days does it take for Nike to sell its inventory (DSI) in fiscal year 2018?
|
To calculate Nike's Days Sales of Inventory (DSI) for 2018:
Formula:
DSI = (Average Inventory / Cost of Goods Sold) × 365
Inventory at the end of 2018 = $5,261 million
Inventory at the end of 2017 = $5,055 million
COGS for 2018 = $20,441 million
Step 1: Calculate Average Inventory:
Average Inventory = (5,261 + 5,055) / 2 = $5,158 million
Step 2: Calculate DSI:
DSI = (5,158 / 20,441) × 365 ≈ 92.13 days
Thus, Nike's DSI for 2018 is approximately 92.13 days.
|
Ratio
|
44, 46
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
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q_Ra176
|
What is Nike's Fixed Asset Turnover Ratio for fiscal year 2018?
|
To calculate Nike's Fixed Asset Turnover Ratio for 2018:
Formula:
Fixed Asset Turnover Ratio = Total Revenue / Average Net Fixed Assets
Data:
Total Revenue (2018) = $36,397 million
Net Fixed Assets (2018) = $4,454 million
Net Fixed Assets (2017) = $3,989 million
Step 1: Calculate Average Net Fixed Assets:
Average Net Fixed Assets = (Net Fixed Assets 2018 + Net Fixed Assets 2017) / 2
Average Net Fixed Assets = (4,454 + 3,989) / 2 = $4,221.5 million
Step 2: Calculate Fixed Asset Turnover Ratio:
Fixed Asset Turnover Ratio = 36,397 / 4,221.5 ≈ 8.63
Interpretation:
Nike's Fixed Asset Turnover Ratio for 2018 is approximately 8.63, indicating that for every dollar invested in fixed assets, Nike generated $8.63 in revenue.
|
Ratio
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44, 46
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0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
q_Ra177
|
What is Nike's Gross Profit Margin for fiscal year 2018?
|
To calculate Nike's Gross Profit Margin for 2018:
Formula:
Gross Profit Margin = (Gross Profit / Total Revenue) × 100
Gross Profit (2018) = $15,956 million
Total Revenue (2018) = $36,397 million
Calculation:
Gross Profit Margin = (15,956 / 36,397) × 100 ≈ 43.84%
|
Ratio
|
44
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
|
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
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NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
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<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
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q_Ra178
|
What is Nike's Interest Coverage Ratio for fiscal year 2018?
|
To calculate Nike's Interest Coverage Ratio for 2018:
Formula:
Interest Coverage Ratio = EBIT / Interest Expense
EBIT (2018) = $4,379 million
Interest Expense (2018) = $54 million
Calculation:
Interest Coverage Ratio = 4,379 / 54 ≈ 81.1
Interpretation:
Nike's Interest Coverage Ratio for 2018 is approximately 81.1, indicating that the company can cover its interest expenses 81.1 times with its earnings before interest and taxes (EBIT). This demonstrates a strong ability to meet interest obligations.
|
Ratio
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0000320187-18-000142
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ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 71:
| | | | | | | | | | | | |
|---:|:----------------------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | REVENUES | | | | | | | | | | |
| 5 | North America | $ | 14,855 | | | $ | 15,216 | | | $ | 14,764 |
| 6 | Europe, Middle East & Africa | 9,242 | | | 7,970 | | | 7,568 | | | |
| 7 | Greater China | 5,134 | | | 4,237 | | | 3,785 | | | |
| 8 | Asia Pacific & Latin America | 5,166 | | | 4,737 | | | 4,317 | | | |
| 9 | Global Brand Divisions | 88 | | | 73 | | | 73 | | | |
| 10 | Total NIKE Brand | 34,485 | | | 32,233 | | | 30,507 | | | |
| 11 | Converse | 1,886 | | | 2,042 | | | 1,955 | | | |
| 12 | Corporate | 26 | | | 75 | | | (86 | ) | | |
| 13 | TOTAL NIKE, INC. REVENUES | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 14 | EARNINGS BEFORE INTEREST AND TAXES | | | | | | | | | | |
| 15 | North America | $ | 3,600 | | | $ | 3,875 | | | $ | 3,763 |
| 16 | Europe, Middle East & Africa | 1,587 | | | 1,507 | | | 1,787 | | | |
| 17 | Greater China | 1,807 | | | 1,507 | | | 1,372 | | | |
| 18 | Asia Pacific & Latin America | 1,189 | | | 980 | | | 1,002 | | | |
| 19 | Global Brand Divisions | (2,658 | ) | | (2,677 | ) | | (2,596 | ) | | |
| 20 | Total NIKE Brand | 5,525 | | | 5,192 | | | 5,328 | | | |
| 21 | Converse | 310 | | | 477 | | | 487 | | | |
| 22 | Corporate | (1,456 | ) | | (724 | ) | | (1,173 | ) | | |
| 23 | Total NIKE, Inc. Earnings Before Interest and Taxes | 4,379 | | | 4,945 | | | 4,642 | | | |
| 24 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 25 | TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 4,325 | | | $ | 4,886 | | | $ | 4,623 |
| 26 | ADDITIONS TO LONG-LIVED ASSETS | | | | | | | | | | |
| 27 | North America | $ | 196 | | | $ | 223 | | | $ | 242 |
| 28 | Europe, Middle East & Africa | 240 | | | 173 | | | 234 | | | |
| 29 | Greater China | 76 | | | 51 | | | 44 | | | |
| 30 | Asia Pacific & Latin America | 49 | | | 59 | | | 62 | | | |
| 31 | Global Brand Divisions | 286 | | | 278 | | | 258 | | | |
| 32 | Total NIKE Brand | 847 | | | 784 | | | 840 | | | |
| 33 | Converse | 22 | | | 30 | | | 39 | | | |
| 34 | Corporate | 325 | | | 387 | | | 312 | | | |
| 35 | TOTAL ADDITIONS TO LONG-LIVED ASSETS | $ | 1,194 | | | $ | 1,201 | | | $ | 1,191 |
| 36 | DEPRECIATION | | | | | | | | | | |
| 37 | North America | $ | 160 | | | $ | 140 | | | $ | 133 |
| 38 | Europe, Middle East & Africa | 116 | | | 106 | | | 85 | | | |
| 39 | Greater China | 56 | | | 54 | | | 48 | | | |
| 40 | Asia Pacific & Latin America | 55 | | | 54 | | | 42 | | | |
| 41 | Global Brand Divisions | 217 | | | 233 | | | 230 | | | |
| 42 | Total NIKE Brand | 604 | | | 587 | | | 538 | | | |
| 43 | Converse | 33 | | | 28 | | | 27 | | | |
| 44 | Corporate | 110 | | | 91 | | | 84 | | | |
| 45 | TOTAL DEPRECIATION | $ | 747 | | | $ | 706 | | | $ | 649 |
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| | | | | | | | | | | | |
|---:|:----------------------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | REVENUES | | | | | | | | | | |
| 5 | North America | $ | 14,855 | | | $ | 15,216 | | | $ | 14,764 |
| 6 | Europe, Middle East & Africa | 9,242 | | | 7,970 | | | 7,568 | | | |
| 7 | Greater China | 5,134 | | | 4,237 | | | 3,785 | | | |
| 8 | Asia Pacific & Latin America | 5,166 | | | 4,737 | | | 4,317 | | | |
| 9 | Global Brand Divisions | 88 | | | 73 | | | 73 | | | |
| 10 | Total NIKE Brand | 34,485 | | | 32,233 | | | 30,507 | | | |
| 11 | Converse | 1,886 | | | 2,042 | | | 1,955 | | | |
| 12 | Corporate | 26 | | | 75 | | | (86 | ) | | |
| 13 | TOTAL NIKE, INC. REVENUES | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 14 | EARNINGS BEFORE INTEREST AND TAXES | | | | | | | | | | |
| 15 | North America | $ | 3,600 | | | $ | 3,875 | | | $ | 3,763 |
| 16 | Europe, Middle East & Africa | 1,587 | | | 1,507 | | | 1,787 | | | |
| 17 | Greater China | 1,807 | | | 1,507 | | | 1,372 | | | |
| 18 | Asia Pacific & Latin America | 1,189 | | | 980 | | | 1,002 | | | |
| 19 | Global Brand Divisions | (2,658 | ) | | (2,677 | ) | | (2,596 | ) | | |
| 20 | Total NIKE Brand | 5,525 | | | 5,192 | | | 5,328 | | | |
| 21 | Converse | 310 | | | 477 | | | 487 | | | |
| 22 | Corporate | (1,456 | ) | | (724 | ) | | (1,173 | ) | | |
| 23 | Total NIKE, Inc. Earnings Before Interest and Taxes | 4,379 | | | 4,945 | | | 4,642 | | | |
| 24 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 25 | TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 4,325 | | | $ | 4,886 | | | $ | 4,623 |
| 26 | ADDITIONS TO LONG-LIVED ASSETS | | | | | | | | | | |
| 27 | North America | $ | 196 | | | $ | 223 | | | $ | 242 |
| 28 | Europe, Middle East & Africa | 240 | | | 173 | | | 234 | | | |
| 29 | Greater China | 76 | | | 51 | | | 44 | | | |
| 30 | Asia Pacific & Latin America | 49 | | | 59 | | | 62 | | | |
| 31 | Global Brand Divisions | 286 | | | 278 | | | 258 | | | |
| 32 | Total NIKE Brand | 847 | | | 784 | | | 840 | | | |
| 33 | Converse | 22 | | | 30 | | | 39 | | | |
| 34 | Corporate | 325 | | | 387 | | | 312 | | | |
| 35 | TOTAL ADDITIONS TO LONG-LIVED ASSETS | $ | 1,194 | | | $ | 1,201 | | | $ | 1,191 |
| 36 | DEPRECIATION | | | | | | | | | | |
| 37 | North America | $ | 160 | | | $ | 140 | | | $ | 133 |
| 38 | Europe, Middle East & Africa | 116 | | | 106 | | | 85 | | | |
| 39 | Greater China | 56 | | | 54 | | | 48 | | | |
| 40 | Asia Pacific & Latin America | 55 | | | 54 | | | 42 | | | |
| 41 | Global Brand Divisions | 217 | | | 233 | | | 230 | | | |
| 42 | Total NIKE Brand | 604 | | | 587 | | | 538 | | | |
| 43 | Converse | 33 | | | 28 | | | 27 | | | |
| 44 | Corporate | 110 | | | 91 | | | 84 | | | |
| 45 | TOTAL DEPRECIATION | $ | 747 | | | $ | 706 | | | $ | 649 |
71
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NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 71:
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>REVENUES</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>14,855</td><td></td><td> </td><td>$</td><td>15,216</td><td></td><td> </td><td>$</td><td>14,764</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">9,242</td><td></td><td> </td><td colspan="2">7,970</td><td></td><td> </td><td colspan="2">7,568</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">5,134</td><td></td><td> </td><td colspan="2">4,237</td><td></td><td> </td><td colspan="2">3,785</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">5,166</td><td></td><td> </td><td colspan="2">4,737</td><td></td><td> </td><td colspan="2">4,317</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">88</td><td></td><td> </td><td colspan="2">73</td><td></td><td> </td><td colspan="2">73</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">34,485</td><td></td><td> </td><td colspan="2">32,233</td><td></td><td> </td><td colspan="2">30,507</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">1,886</td><td></td><td> </td><td colspan="2">2,042</td><td></td><td> </td><td colspan="2">1,955</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">26</td><td></td><td> </td><td colspan="2">75</td><td></td><td> </td><td colspan="2">(86</td><td>)</td></tr><tr><td>TOTAL NIKE, INC. REVENUES</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>EARNINGS BEFORE INTEREST AND TAXES</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>3,600</td><td></td><td> </td><td>$</td><td>3,875</td><td></td><td> </td><td>$</td><td>3,763</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">1,587</td><td></td><td> </td><td colspan="2">1,507</td><td></td><td> </td><td colspan="2">1,787</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">1,807</td><td></td><td> </td><td colspan="2">1,507</td><td></td><td> </td><td colspan="2">1,372</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">1,189</td><td></td><td> </td><td colspan="2">980</td><td></td><td> </td><td colspan="2">1,002</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">(2,658</td><td>)</td><td> </td><td colspan="2">(2,677</td><td>)</td><td> </td><td colspan="2">(2,596</td><td>)</td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">5,525</td><td></td><td> </td><td colspan="2">5,192</td><td></td><td> </td><td colspan="2">5,328</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">310</td><td></td><td> </td><td colspan="2">477</td><td></td><td> </td><td colspan="2">487</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">(1,456</td><td>)</td><td> </td><td colspan="2">(724</td><td>)</td><td> </td><td colspan="2">(1,173</td><td>)</td></tr><tr><td>Total NIKE, Inc. Earnings Before Interest and Taxes</td><td> </td><td colspan="2">4,379</td><td></td><td> </td><td colspan="2">4,945</td><td></td><td> </td><td colspan="2">4,642</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES</td><td> </td><td>$</td><td>4,325</td><td></td><td> </td><td>$</td><td>4,886</td><td></td><td> </td><td>$</td><td>4,623</td><td></td></tr><tr><td>ADDITIONS TO LONG-LIVED ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>196</td><td></td><td> </td><td>$</td><td>223</td><td></td><td> </td><td>$</td><td>242</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">240</td><td></td><td> </td><td colspan="2">173</td><td></td><td> </td><td colspan="2">234</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">76</td><td></td><td> </td><td colspan="2">51</td><td></td><td> </td><td colspan="2">44</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">49</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">62</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">286</td><td></td><td> </td><td colspan="2">278</td><td></td><td> </td><td colspan="2">258</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">847</td><td></td><td> </td><td colspan="2">784</td><td></td><td> </td><td colspan="2">840</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">22</td><td></td><td> </td><td colspan="2">30</td><td></td><td> </td><td colspan="2">39</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">325</td><td></td><td> </td><td colspan="2">387</td><td></td><td> </td><td colspan="2">312</td><td></td></tr><tr><td>TOTAL ADDITIONS TO LONG-LIVED ASSETS</td><td> </td><td>$</td><td>1,194</td><td></td><td> </td><td>$</td><td>1,201</td><td></td><td> </td><td>$</td><td>1,191</td><td></td></tr><tr><td>DEPRECIATION</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>160</td><td></td><td> </td><td>$</td><td>140</td><td></td><td> </td><td>$</td><td>133</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">116</td><td></td><td> </td><td colspan="2">106</td><td></td><td> </td><td colspan="2">85</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">56</td><td></td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">48</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">55</td><td></td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">42</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">217</td><td></td><td> </td><td colspan="2">233</td><td></td><td> </td><td colspan="2">230</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">604</td><td></td><td> </td><td colspan="2">587</td><td></td><td> </td><td colspan="2">538</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">33</td><td></td><td> </td><td colspan="2">28</td><td></td><td> </td><td colspan="2">27</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">110</td><td></td><td> </td><td colspan="2">91</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>TOTAL DEPRECIATION</td><td> </td><td>$</td><td>747</td><td></td><td> </td><td>$</td><td>706</td><td></td><td> </td><td>$</td><td>649</td><td></td></tr></table>
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<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>REVENUES</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>14,855</td><td></td><td> </td><td>$</td><td>15,216</td><td></td><td> </td><td>$</td><td>14,764</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">9,242</td><td></td><td> </td><td colspan="2">7,970</td><td></td><td> </td><td colspan="2">7,568</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">5,134</td><td></td><td> </td><td colspan="2">4,237</td><td></td><td> </td><td colspan="2">3,785</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">5,166</td><td></td><td> </td><td colspan="2">4,737</td><td></td><td> </td><td colspan="2">4,317</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">88</td><td></td><td> </td><td colspan="2">73</td><td></td><td> </td><td colspan="2">73</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">34,485</td><td></td><td> </td><td colspan="2">32,233</td><td></td><td> </td><td colspan="2">30,507</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">1,886</td><td></td><td> </td><td colspan="2">2,042</td><td></td><td> </td><td colspan="2">1,955</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">26</td><td></td><td> </td><td colspan="2">75</td><td></td><td> </td><td colspan="2">(86</td><td>)</td></tr><tr><td>TOTAL NIKE, INC. REVENUES</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>EARNINGS BEFORE INTEREST AND TAXES</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>3,600</td><td></td><td> </td><td>$</td><td>3,875</td><td></td><td> </td><td>$</td><td>3,763</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">1,587</td><td></td><td> </td><td colspan="2">1,507</td><td></td><td> </td><td colspan="2">1,787</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">1,807</td><td></td><td> </td><td colspan="2">1,507</td><td></td><td> </td><td colspan="2">1,372</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">1,189</td><td></td><td> </td><td colspan="2">980</td><td></td><td> </td><td colspan="2">1,002</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">(2,658</td><td>)</td><td> </td><td colspan="2">(2,677</td><td>)</td><td> </td><td colspan="2">(2,596</td><td>)</td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">5,525</td><td></td><td> </td><td colspan="2">5,192</td><td></td><td> </td><td colspan="2">5,328</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">310</td><td></td><td> </td><td colspan="2">477</td><td></td><td> </td><td colspan="2">487</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">(1,456</td><td>)</td><td> </td><td colspan="2">(724</td><td>)</td><td> </td><td colspan="2">(1,173</td><td>)</td></tr><tr><td>Total NIKE, Inc. Earnings Before Interest and Taxes</td><td> </td><td colspan="2">4,379</td><td></td><td> </td><td colspan="2">4,945</td><td></td><td> </td><td colspan="2">4,642</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES</td><td> </td><td>$</td><td>4,325</td><td></td><td> </td><td>$</td><td>4,886</td><td></td><td> </td><td>$</td><td>4,623</td><td></td></tr><tr><td>ADDITIONS TO LONG-LIVED ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>196</td><td></td><td> </td><td>$</td><td>223</td><td></td><td> </td><td>$</td><td>242</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">240</td><td></td><td> </td><td colspan="2">173</td><td></td><td> </td><td colspan="2">234</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">76</td><td></td><td> </td><td colspan="2">51</td><td></td><td> </td><td colspan="2">44</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">49</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">62</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">286</td><td></td><td> </td><td colspan="2">278</td><td></td><td> </td><td colspan="2">258</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">847</td><td></td><td> </td><td colspan="2">784</td><td></td><td> </td><td colspan="2">840</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">22</td><td></td><td> </td><td colspan="2">30</td><td></td><td> </td><td colspan="2">39</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">325</td><td></td><td> </td><td colspan="2">387</td><td></td><td> </td><td colspan="2">312</td><td></td></tr><tr><td>TOTAL ADDITIONS TO LONG-LIVED ASSETS</td><td> </td><td>$</td><td>1,194</td><td></td><td> </td><td>$</td><td>1,201</td><td></td><td> </td><td>$</td><td>1,191</td><td></td></tr><tr><td>DEPRECIATION</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>160</td><td></td><td> </td><td>$</td><td>140</td><td></td><td> </td><td>$</td><td>133</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">116</td><td></td><td> </td><td colspan="2">106</td><td></td><td> </td><td colspan="2">85</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">56</td><td></td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">48</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">55</td><td></td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">42</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">217</td><td></td><td> </td><td colspan="2">233</td><td></td><td> </td><td colspan="2">230</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">604</td><td></td><td> </td><td colspan="2">587</td><td></td><td> </td><td colspan="2">538</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">33</td><td></td><td> </td><td colspan="2">28</td><td></td><td> </td><td colspan="2">27</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">110</td><td></td><td> </td><td colspan="2">91</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>TOTAL DEPRECIATION</td><td> </td><td>$</td><td>747</td><td></td><td> </td><td>$</td><td>706</td><td></td><td> </td><td>$</td><td>649</td><td></td></tr></table>
71
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q_Ra179
|
What is Nike's Operating Profit Margin for fiscal year 2018?
|
To calculate Nike's Operating Profit Margin for 2018:
Formula:
Operating Profit Margin = (Operating Income / Total Revenue) × 100
Operating Income (EBIT, 2018) = $4,379 million
Total Revenue (2018) = $36,397 million
Operating Profit Margin = (4,379 / 36,397) × 100 ≈ 12.03%
|
Ratio
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44, 71
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 71:
| | | | | | | | | | | | |
|---:|:----------------------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | REVENUES | | | | | | | | | | |
| 5 | North America | $ | 14,855 | | | $ | 15,216 | | | $ | 14,764 |
| 6 | Europe, Middle East & Africa | 9,242 | | | 7,970 | | | 7,568 | | | |
| 7 | Greater China | 5,134 | | | 4,237 | | | 3,785 | | | |
| 8 | Asia Pacific & Latin America | 5,166 | | | 4,737 | | | 4,317 | | | |
| 9 | Global Brand Divisions | 88 | | | 73 | | | 73 | | | |
| 10 | Total NIKE Brand | 34,485 | | | 32,233 | | | 30,507 | | | |
| 11 | Converse | 1,886 | | | 2,042 | | | 1,955 | | | |
| 12 | Corporate | 26 | | | 75 | | | (86 | ) | | |
| 13 | TOTAL NIKE, INC. REVENUES | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 14 | EARNINGS BEFORE INTEREST AND TAXES | | | | | | | | | | |
| 15 | North America | $ | 3,600 | | | $ | 3,875 | | | $ | 3,763 |
| 16 | Europe, Middle East & Africa | 1,587 | | | 1,507 | | | 1,787 | | | |
| 17 | Greater China | 1,807 | | | 1,507 | | | 1,372 | | | |
| 18 | Asia Pacific & Latin America | 1,189 | | | 980 | | | 1,002 | | | |
| 19 | Global Brand Divisions | (2,658 | ) | | (2,677 | ) | | (2,596 | ) | | |
| 20 | Total NIKE Brand | 5,525 | | | 5,192 | | | 5,328 | | | |
| 21 | Converse | 310 | | | 477 | | | 487 | | | |
| 22 | Corporate | (1,456 | ) | | (724 | ) | | (1,173 | ) | | |
| 23 | Total NIKE, Inc. Earnings Before Interest and Taxes | 4,379 | | | 4,945 | | | 4,642 | | | |
| 24 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 25 | TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 4,325 | | | $ | 4,886 | | | $ | 4,623 |
| 26 | ADDITIONS TO LONG-LIVED ASSETS | | | | | | | | | | |
| 27 | North America | $ | 196 | | | $ | 223 | | | $ | 242 |
| 28 | Europe, Middle East & Africa | 240 | | | 173 | | | 234 | | | |
| 29 | Greater China | 76 | | | 51 | | | 44 | | | |
| 30 | Asia Pacific & Latin America | 49 | | | 59 | | | 62 | | | |
| 31 | Global Brand Divisions | 286 | | | 278 | | | 258 | | | |
| 32 | Total NIKE Brand | 847 | | | 784 | | | 840 | | | |
| 33 | Converse | 22 | | | 30 | | | 39 | | | |
| 34 | Corporate | 325 | | | 387 | | | 312 | | | |
| 35 | TOTAL ADDITIONS TO LONG-LIVED ASSETS | $ | 1,194 | | | $ | 1,201 | | | $ | 1,191 |
| 36 | DEPRECIATION | | | | | | | | | | |
| 37 | North America | $ | 160 | | | $ | 140 | | | $ | 133 |
| 38 | Europe, Middle East & Africa | 116 | | | 106 | | | 85 | | | |
| 39 | Greater China | 56 | | | 54 | | | 48 | | | |
| 40 | Asia Pacific & Latin America | 55 | | | 54 | | | 42 | | | |
| 41 | Global Brand Divisions | 217 | | | 233 | | | 230 | | | |
| 42 | Total NIKE Brand | 604 | | | 587 | | | 538 | | | |
| 43 | Converse | 33 | | | 28 | | | 27 | | | |
| 44 | Corporate | 110 | | | 91 | | | 84 | | | |
| 45 | TOTAL DEPRECIATION | $ | 747 | | | $ | 706 | | | $ | 649 |
71
|
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
| | | | | | | | | | | | |
|---:|:----------------------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | REVENUES | | | | | | | | | | |
| 5 | North America | $ | 14,855 | | | $ | 15,216 | | | $ | 14,764 |
| 6 | Europe, Middle East & Africa | 9,242 | | | 7,970 | | | 7,568 | | | |
| 7 | Greater China | 5,134 | | | 4,237 | | | 3,785 | | | |
| 8 | Asia Pacific & Latin America | 5,166 | | | 4,737 | | | 4,317 | | | |
| 9 | Global Brand Divisions | 88 | | | 73 | | | 73 | | | |
| 10 | Total NIKE Brand | 34,485 | | | 32,233 | | | 30,507 | | | |
| 11 | Converse | 1,886 | | | 2,042 | | | 1,955 | | | |
| 12 | Corporate | 26 | | | 75 | | | (86 | ) | | |
| 13 | TOTAL NIKE, INC. REVENUES | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 14 | EARNINGS BEFORE INTEREST AND TAXES | | | | | | | | | | |
| 15 | North America | $ | 3,600 | | | $ | 3,875 | | | $ | 3,763 |
| 16 | Europe, Middle East & Africa | 1,587 | | | 1,507 | | | 1,787 | | | |
| 17 | Greater China | 1,807 | | | 1,507 | | | 1,372 | | | |
| 18 | Asia Pacific & Latin America | 1,189 | | | 980 | | | 1,002 | | | |
| 19 | Global Brand Divisions | (2,658 | ) | | (2,677 | ) | | (2,596 | ) | | |
| 20 | Total NIKE Brand | 5,525 | | | 5,192 | | | 5,328 | | | |
| 21 | Converse | 310 | | | 477 | | | 487 | | | |
| 22 | Corporate | (1,456 | ) | | (724 | ) | | (1,173 | ) | | |
| 23 | Total NIKE, Inc. Earnings Before Interest and Taxes | 4,379 | | | 4,945 | | | 4,642 | | | |
| 24 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 25 | TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 4,325 | | | $ | 4,886 | | | $ | 4,623 |
| 26 | ADDITIONS TO LONG-LIVED ASSETS | | | | | | | | | | |
| 27 | North America | $ | 196 | | | $ | 223 | | | $ | 242 |
| 28 | Europe, Middle East & Africa | 240 | | | 173 | | | 234 | | | |
| 29 | Greater China | 76 | | | 51 | | | 44 | | | |
| 30 | Asia Pacific & Latin America | 49 | | | 59 | | | 62 | | | |
| 31 | Global Brand Divisions | 286 | | | 278 | | | 258 | | | |
| 32 | Total NIKE Brand | 847 | | | 784 | | | 840 | | | |
| 33 | Converse | 22 | | | 30 | | | 39 | | | |
| 34 | Corporate | 325 | | | 387 | | | 312 | | | |
| 35 | TOTAL ADDITIONS TO LONG-LIVED ASSETS | $ | 1,194 | | | $ | 1,201 | | | $ | 1,191 |
| 36 | DEPRECIATION | | | | | | | | | | |
| 37 | North America | $ | 160 | | | $ | 140 | | | $ | 133 |
| 38 | Europe, Middle East & Africa | 116 | | | 106 | | | 85 | | | |
| 39 | Greater China | 56 | | | 54 | | | 48 | | | |
| 40 | Asia Pacific & Latin America | 55 | | | 54 | | | 42 | | | |
| 41 | Global Brand Divisions | 217 | | | 233 | | | 230 | | | |
| 42 | Total NIKE Brand | 604 | | | 587 | | | 538 | | | |
| 43 | Converse | 33 | | | 28 | | | 27 | | | |
| 44 | Corporate | 110 | | | 91 | | | 84 | | | |
| 45 | TOTAL DEPRECIATION | $ | 747 | | | $ | 706 | | | $ | 649 |
71
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 71:
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>REVENUES</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>14,855</td><td></td><td> </td><td>$</td><td>15,216</td><td></td><td> </td><td>$</td><td>14,764</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">9,242</td><td></td><td> </td><td colspan="2">7,970</td><td></td><td> </td><td colspan="2">7,568</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">5,134</td><td></td><td> </td><td colspan="2">4,237</td><td></td><td> </td><td colspan="2">3,785</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">5,166</td><td></td><td> </td><td colspan="2">4,737</td><td></td><td> </td><td colspan="2">4,317</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">88</td><td></td><td> </td><td colspan="2">73</td><td></td><td> </td><td colspan="2">73</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">34,485</td><td></td><td> </td><td colspan="2">32,233</td><td></td><td> </td><td colspan="2">30,507</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">1,886</td><td></td><td> </td><td colspan="2">2,042</td><td></td><td> </td><td colspan="2">1,955</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">26</td><td></td><td> </td><td colspan="2">75</td><td></td><td> </td><td colspan="2">(86</td><td>)</td></tr><tr><td>TOTAL NIKE, INC. REVENUES</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>EARNINGS BEFORE INTEREST AND TAXES</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>3,600</td><td></td><td> </td><td>$</td><td>3,875</td><td></td><td> </td><td>$</td><td>3,763</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">1,587</td><td></td><td> </td><td colspan="2">1,507</td><td></td><td> </td><td colspan="2">1,787</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">1,807</td><td></td><td> </td><td colspan="2">1,507</td><td></td><td> </td><td colspan="2">1,372</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">1,189</td><td></td><td> </td><td colspan="2">980</td><td></td><td> </td><td colspan="2">1,002</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">(2,658</td><td>)</td><td> </td><td colspan="2">(2,677</td><td>)</td><td> </td><td colspan="2">(2,596</td><td>)</td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">5,525</td><td></td><td> </td><td colspan="2">5,192</td><td></td><td> </td><td colspan="2">5,328</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">310</td><td></td><td> </td><td colspan="2">477</td><td></td><td> </td><td colspan="2">487</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">(1,456</td><td>)</td><td> </td><td colspan="2">(724</td><td>)</td><td> </td><td colspan="2">(1,173</td><td>)</td></tr><tr><td>Total NIKE, Inc. Earnings Before Interest and Taxes</td><td> </td><td colspan="2">4,379</td><td></td><td> </td><td colspan="2">4,945</td><td></td><td> </td><td colspan="2">4,642</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES</td><td> </td><td>$</td><td>4,325</td><td></td><td> </td><td>$</td><td>4,886</td><td></td><td> </td><td>$</td><td>4,623</td><td></td></tr><tr><td>ADDITIONS TO LONG-LIVED ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>196</td><td></td><td> </td><td>$</td><td>223</td><td></td><td> </td><td>$</td><td>242</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">240</td><td></td><td> </td><td colspan="2">173</td><td></td><td> </td><td colspan="2">234</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">76</td><td></td><td> </td><td colspan="2">51</td><td></td><td> </td><td colspan="2">44</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">49</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">62</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">286</td><td></td><td> </td><td colspan="2">278</td><td></td><td> </td><td colspan="2">258</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">847</td><td></td><td> </td><td colspan="2">784</td><td></td><td> </td><td colspan="2">840</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">22</td><td></td><td> </td><td colspan="2">30</td><td></td><td> </td><td colspan="2">39</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">325</td><td></td><td> </td><td colspan="2">387</td><td></td><td> </td><td colspan="2">312</td><td></td></tr><tr><td>TOTAL ADDITIONS TO LONG-LIVED ASSETS</td><td> </td><td>$</td><td>1,194</td><td></td><td> </td><td>$</td><td>1,201</td><td></td><td> </td><td>$</td><td>1,191</td><td></td></tr><tr><td>DEPRECIATION</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>160</td><td></td><td> </td><td>$</td><td>140</td><td></td><td> </td><td>$</td><td>133</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">116</td><td></td><td> </td><td colspan="2">106</td><td></td><td> </td><td colspan="2">85</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">56</td><td></td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">48</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">55</td><td></td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">42</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">217</td><td></td><td> </td><td colspan="2">233</td><td></td><td> </td><td colspan="2">230</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">604</td><td></td><td> </td><td colspan="2">587</td><td></td><td> </td><td colspan="2">538</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">33</td><td></td><td> </td><td colspan="2">28</td><td></td><td> </td><td colspan="2">27</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">110</td><td></td><td> </td><td colspan="2">91</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>TOTAL DEPRECIATION</td><td> </td><td>$</td><td>747</td><td></td><td> </td><td>$</td><td>706</td><td></td><td> </td><td>$</td><td>649</td><td></td></tr></table>
71
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
,
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>REVENUES</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>14,855</td><td></td><td> </td><td>$</td><td>15,216</td><td></td><td> </td><td>$</td><td>14,764</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">9,242</td><td></td><td> </td><td colspan="2">7,970</td><td></td><td> </td><td colspan="2">7,568</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">5,134</td><td></td><td> </td><td colspan="2">4,237</td><td></td><td> </td><td colspan="2">3,785</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">5,166</td><td></td><td> </td><td colspan="2">4,737</td><td></td><td> </td><td colspan="2">4,317</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">88</td><td></td><td> </td><td colspan="2">73</td><td></td><td> </td><td colspan="2">73</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">34,485</td><td></td><td> </td><td colspan="2">32,233</td><td></td><td> </td><td colspan="2">30,507</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">1,886</td><td></td><td> </td><td colspan="2">2,042</td><td></td><td> </td><td colspan="2">1,955</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">26</td><td></td><td> </td><td colspan="2">75</td><td></td><td> </td><td colspan="2">(86</td><td>)</td></tr><tr><td>TOTAL NIKE, INC. REVENUES</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>EARNINGS BEFORE INTEREST AND TAXES</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>3,600</td><td></td><td> </td><td>$</td><td>3,875</td><td></td><td> </td><td>$</td><td>3,763</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">1,587</td><td></td><td> </td><td colspan="2">1,507</td><td></td><td> </td><td colspan="2">1,787</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">1,807</td><td></td><td> </td><td colspan="2">1,507</td><td></td><td> </td><td colspan="2">1,372</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">1,189</td><td></td><td> </td><td colspan="2">980</td><td></td><td> </td><td colspan="2">1,002</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">(2,658</td><td>)</td><td> </td><td colspan="2">(2,677</td><td>)</td><td> </td><td colspan="2">(2,596</td><td>)</td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">5,525</td><td></td><td> </td><td colspan="2">5,192</td><td></td><td> </td><td colspan="2">5,328</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">310</td><td></td><td> </td><td colspan="2">477</td><td></td><td> </td><td colspan="2">487</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">(1,456</td><td>)</td><td> </td><td colspan="2">(724</td><td>)</td><td> </td><td colspan="2">(1,173</td><td>)</td></tr><tr><td>Total NIKE, Inc. Earnings Before Interest and Taxes</td><td> </td><td colspan="2">4,379</td><td></td><td> </td><td colspan="2">4,945</td><td></td><td> </td><td colspan="2">4,642</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES</td><td> </td><td>$</td><td>4,325</td><td></td><td> </td><td>$</td><td>4,886</td><td></td><td> </td><td>$</td><td>4,623</td><td></td></tr><tr><td>ADDITIONS TO LONG-LIVED ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>196</td><td></td><td> </td><td>$</td><td>223</td><td></td><td> </td><td>$</td><td>242</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">240</td><td></td><td> </td><td colspan="2">173</td><td></td><td> </td><td colspan="2">234</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">76</td><td></td><td> </td><td colspan="2">51</td><td></td><td> </td><td colspan="2">44</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">49</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">62</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">286</td><td></td><td> </td><td colspan="2">278</td><td></td><td> </td><td colspan="2">258</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">847</td><td></td><td> </td><td colspan="2">784</td><td></td><td> </td><td colspan="2">840</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">22</td><td></td><td> </td><td colspan="2">30</td><td></td><td> </td><td colspan="2">39</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">325</td><td></td><td> </td><td colspan="2">387</td><td></td><td> </td><td colspan="2">312</td><td></td></tr><tr><td>TOTAL ADDITIONS TO LONG-LIVED ASSETS</td><td> </td><td>$</td><td>1,194</td><td></td><td> </td><td>$</td><td>1,201</td><td></td><td> </td><td>$</td><td>1,191</td><td></td></tr><tr><td>DEPRECIATION</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>North America</td><td> </td><td>$</td><td>160</td><td></td><td> </td><td>$</td><td>140</td><td></td><td> </td><td>$</td><td>133</td><td></td></tr><tr><td>Europe, Middle East & Africa</td><td> </td><td colspan="2">116</td><td></td><td> </td><td colspan="2">106</td><td></td><td> </td><td colspan="2">85</td><td></td></tr><tr><td>Greater China</td><td> </td><td colspan="2">56</td><td></td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">48</td><td></td></tr><tr><td>Asia Pacific & Latin America</td><td> </td><td colspan="2">55</td><td></td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">42</td><td></td></tr><tr><td>Global Brand Divisions</td><td> </td><td colspan="2">217</td><td></td><td> </td><td colspan="2">233</td><td></td><td> </td><td colspan="2">230</td><td></td></tr><tr><td>Total NIKE Brand</td><td> </td><td colspan="2">604</td><td></td><td> </td><td colspan="2">587</td><td></td><td> </td><td colspan="2">538</td><td></td></tr><tr><td>Converse</td><td> </td><td colspan="2">33</td><td></td><td> </td><td colspan="2">28</td><td></td><td> </td><td colspan="2">27</td><td></td></tr><tr><td>Corporate</td><td> </td><td colspan="2">110</td><td></td><td> </td><td colspan="2">91</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>TOTAL DEPRECIATION</td><td> </td><td>$</td><td>747</td><td></td><td> </td><td>$</td><td>706</td><td></td><td> </td><td>$</td><td>649</td><td></td></tr></table>
71
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q_Ra180
|
What is Nike's Cash Flow to Debt Ratio for fiscal year 2018?
|
To calculate Nike's Cash Flow to Debt Ratio for fiscal year 2018:
Formula:
Cash Flow to Debt Ratio = Operating Cash Flow / Total Debt
Operating Cash Flow (2018) = $4,955 million
Total Debt (Long-term Debt, 2018) = $3,468 million
Calculation:
Cash Flow to Debt Ratio = 4,955 / 3,468 ≈ 1.43
Interpretation:
Nike's Cash Flow to Debt Ratio for 2018 is approximately 1.43, indicating that Nike generates $1.43 in operating cash flow for every dollar of long-term debt.
|
Ratio
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46, 47
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0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:
| | |
|---:|:-------------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Cash Flows |
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------------------------------------------|:-------------------|:------|:-----|:-------|:-----|:------|:-------|:---|:---|:------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Cash provided by operations: | | | | | | | | | | |
| 5 | Net income | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 6 | Adjustments to reconcile net income to net cash provided by operations: | | | | | | | | | | |
| 7 | Depreciation | 747 | | | 706 | | | 649 | | | |
| 8 | Deferred income taxes | 647 | | | (273 | ) | | (80 | ) | | |
| 9 | Stock-based compensation | 218 | | | 215 | | | 236 | | | |
| 10 | Amortization and other | 27 | | | 10 | | | 13 | | | |
| 11 | Net foreign currency adjustments | (99 | ) | | (117 | ) | | 98 | | | |
| 12 | Changes in certain working capital components and other assets and liabilities: | | | | | | | | | | |
| 13 | Decrease (increase) in accounts receivable | 187 | | | (426 | ) | | 60 | | | |
| 14 | (Increase) in inventories | (255 | ) | | (231 | ) | | (590 | ) | | |
| 15 | Decrease (increase) in prepaid expenses and other current and non-current assets | 35 | | | (120 | ) | | (161 | ) | | |
| 16 | Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,515 | | | (158 | ) | | (586 | ) | | |
| 17 | Cash provided by operations | 4,955 | | | 3,846 | | | 3,399 | | | |
| 18 | Cash provided (used) by investing activities: | | | | | | | | | | |
| 19 | Purchases of short-term investments | (4,783 | ) | | (5,928 | ) | | (5,367 | ) | | |
| 20 | Maturities of short-term investments | 3,613 | | | 3,623 | | | 2,924 | | | |
| 21 | Sales of short-term investments | 2,496 | | | 2,423 | | | 2,386 | | | |
| 22 | Investments in reverse repurchase agreements | - | | | - | | | 150 | | | |
| 23 | Additions to property, plant and equipment | (1,028 | ) | | (1,105 | ) | | (1,143 | ) | | |
| 24 | Disposals of property, plant and equipment | 3 | | | 13 | | | 10 | | | |
| 25 | Other investing activities | (25 | ) | | (34 | ) | | 6 | | | |
| 26 | Cash provided (used) by investing activities | 276 | | | (1,008 | ) | | (1,034 | ) | | |
| 27 | Cash used by financing activities: | | | | | | | | | | |
| 28 | Net proceeds from long-term debt issuance | - | | | 1,482 | | | 981 | | | |
| 29 | Long-term debt payments, including current portion | (6 | ) | | (44 | ) | | (106 | ) | | |
| 30 | Increase (decrease) in notes payable | 13 | | | 327 | | | (67 | ) | | |
| 31 | Payments on capital lease and other financing obligations | (23 | ) | | (17 | ) | | (7 | ) | | |
| 32 | Proceeds from exercise of stock options and other stock issuances | 733 | | | 489 | | | 507 | | | |
| 33 | Repurchase of common stock | (4,254 | ) | | (3,223 | ) | | (3,238 | ) | | |
| 34 | Dividends - common and preferred | (1,243 | ) | | (1,133 | ) | | (1,022 | ) | | |
| 35 | Tax payments for net share settlement of equity awards | (55 | ) | | (29 | ) | | (22 | ) | | |
| 36 | Cash used by financing activities | (4,835 | ) | | (2,148 | ) | | (2,974 | ) | | |
| 37 | Effect of exchange rate changes on cash and equivalents | 45 | | | (20 | ) | | (105 | ) | | |
| 38 | Net increase (decrease) in cash and equivalents | 441 | | | 670 | | | (714 | ) | | |
| 39 | Cash and equivalents, beginning of year | 3,808 | | | 3,138 | | | 3,852 | | | |
| 40 | CASH AND EQUIVALENTS, END OF YEAR | $ | 4,249 | | | $ | 3,808 | | | $ | 3,138 |
| 41 | Supplemental disclosure of cash flow information: | | | | | | | | | | |
| 42 | Cash paid during the year for: | | | | | | | | | | |
| 43 | Interest, net of capitalized interest | $ | 125 | | | $ | 98 | | | $ | 70 |
| 44 | Income taxes | 529 | | | 703 | | | 748 | | | |
| 45 | Non-cash additions to property, plant and equipment | 294 | | | 266 | | | 252 | | | |
| 46 | Dividends declared and not paid | 320 | | | 300 | | | 271 | | | |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
,
| | |
|---:|:-------------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Cash Flows |
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------------------------------------------|:-------------------|:------|:-----|:-------|:-----|:------|:-------|:---|:---|:------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Cash provided by operations: | | | | | | | | | | |
| 5 | Net income | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 6 | Adjustments to reconcile net income to net cash provided by operations: | | | | | | | | | | |
| 7 | Depreciation | 747 | | | 706 | | | 649 | | | |
| 8 | Deferred income taxes | 647 | | | (273 | ) | | (80 | ) | | |
| 9 | Stock-based compensation | 218 | | | 215 | | | 236 | | | |
| 10 | Amortization and other | 27 | | | 10 | | | 13 | | | |
| 11 | Net foreign currency adjustments | (99 | ) | | (117 | ) | | 98 | | | |
| 12 | Changes in certain working capital components and other assets and liabilities: | | | | | | | | | | |
| 13 | Decrease (increase) in accounts receivable | 187 | | | (426 | ) | | 60 | | | |
| 14 | (Increase) in inventories | (255 | ) | | (231 | ) | | (590 | ) | | |
| 15 | Decrease (increase) in prepaid expenses and other current and non-current assets | 35 | | | (120 | ) | | (161 | ) | | |
| 16 | Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,515 | | | (158 | ) | | (586 | ) | | |
| 17 | Cash provided by operations | 4,955 | | | 3,846 | | | 3,399 | | | |
| 18 | Cash provided (used) by investing activities: | | | | | | | | | | |
| 19 | Purchases of short-term investments | (4,783 | ) | | (5,928 | ) | | (5,367 | ) | | |
| 20 | Maturities of short-term investments | 3,613 | | | 3,623 | | | 2,924 | | | |
| 21 | Sales of short-term investments | 2,496 | | | 2,423 | | | 2,386 | | | |
| 22 | Investments in reverse repurchase agreements | - | | | - | | | 150 | | | |
| 23 | Additions to property, plant and equipment | (1,028 | ) | | (1,105 | ) | | (1,143 | ) | | |
| 24 | Disposals of property, plant and equipment | 3 | | | 13 | | | 10 | | | |
| 25 | Other investing activities | (25 | ) | | (34 | ) | | 6 | | | |
| 26 | Cash provided (used) by investing activities | 276 | | | (1,008 | ) | | (1,034 | ) | | |
| 27 | Cash used by financing activities: | | | | | | | | | | |
| 28 | Net proceeds from long-term debt issuance | - | | | 1,482 | | | 981 | | | |
| 29 | Long-term debt payments, including current portion | (6 | ) | | (44 | ) | | (106 | ) | | |
| 30 | Increase (decrease) in notes payable | 13 | | | 327 | | | (67 | ) | | |
| 31 | Payments on capital lease and other financing obligations | (23 | ) | | (17 | ) | | (7 | ) | | |
| 32 | Proceeds from exercise of stock options and other stock issuances | 733 | | | 489 | | | 507 | | | |
| 33 | Repurchase of common stock | (4,254 | ) | | (3,223 | ) | | (3,238 | ) | | |
| 34 | Dividends - common and preferred | (1,243 | ) | | (1,133 | ) | | (1,022 | ) | | |
| 35 | Tax payments for net share settlement of equity awards | (55 | ) | | (29 | ) | | (22 | ) | | |
| 36 | Cash used by financing activities | (4,835 | ) | | (2,148 | ) | | (2,974 | ) | | |
| 37 | Effect of exchange rate changes on cash and equivalents | 45 | | | (20 | ) | | (105 | ) | | |
| 38 | Net increase (decrease) in cash and equivalents | 441 | | | 670 | | | (714 | ) | | |
| 39 | Cash and equivalents, beginning of year | 3,808 | | | 3,138 | | | 3,852 | | | |
| 40 | CASH AND EQUIVALENTS, END OF YEAR | $ | 4,249 | | | $ | 3,808 | | | $ | 3,138 |
| 41 | Supplemental disclosure of cash flow information: | | | | | | | | | | |
| 42 | Cash paid during the year for: | | | | | | | | | | |
| 43 | Interest, net of capitalized interest | $ | 125 | | | $ | 98 | | | $ | 70 |
| 44 | Income taxes | 529 | | | 703 | | | 748 | | | |
| 45 | Non-cash additions to property, plant and equipment | 294 | | | 266 | | | 252 | | | |
| 46 | Dividends declared and not paid | 320 | | | 300 | | | 271 | | | |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Cash Flows</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net income</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Depreciation</td><td> </td><td colspan="2">747</td><td></td><td> </td><td colspan="2">706</td><td></td><td> </td><td colspan="2">649</td><td></td></tr><tr><td>Deferred income taxes</td><td> </td><td colspan="2">647</td><td></td><td> </td><td colspan="2">(273</td><td>)</td><td> </td><td colspan="2">(80</td><td>)</td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Amortization and other</td><td> </td><td colspan="2">27</td><td></td><td> </td><td colspan="2">10</td><td></td><td> </td><td colspan="2">13</td><td></td></tr><tr><td>Net foreign currency adjustments</td><td> </td><td colspan="2">(99</td><td>)</td><td> </td><td colspan="2">(117</td><td>)</td><td> </td><td colspan="2">98</td><td></td></tr><tr><td>Changes in certain working capital components and other assets and liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Decrease (increase) in accounts receivable</td><td> </td><td colspan="2">187</td><td></td><td> </td><td colspan="2">(426</td><td>)</td><td> </td><td colspan="2">60</td><td></td></tr><tr><td>(Increase) in inventories</td><td> </td><td colspan="2">(255</td><td>)</td><td> </td><td colspan="2">(231</td><td>)</td><td> </td><td colspan="2">(590</td><td>)</td></tr><tr><td>Decrease (increase) in prepaid expenses and other current and non-current assets</td><td> </td><td colspan="2">35</td><td></td><td> </td><td colspan="2">(120</td><td>)</td><td> </td><td colspan="2">(161</td><td>)</td></tr><tr><td>Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities</td><td> </td><td colspan="2">1,515</td><td></td><td> </td><td colspan="2">(158</td><td>)</td><td> </td><td colspan="2">(586</td><td>)</td></tr><tr><td>Cash provided by operations</td><td> </td><td colspan="2">4,955</td><td></td><td> </td><td colspan="2">3,846</td><td></td><td> </td><td colspan="2">3,399</td><td></td></tr><tr><td>Cash provided (used) by investing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Purchases of short-term investments</td><td> </td><td colspan="2">(4,783</td><td>)</td><td> </td><td colspan="2">(5,928</td><td>)</td><td> </td><td colspan="2">(5,367</td><td>)</td></tr><tr><td>Maturities of short-term investments</td><td> </td><td colspan="2">3,613</td><td></td><td> </td><td colspan="2">3,623</td><td></td><td> </td><td colspan="2">2,924</td><td></td></tr><tr><td>Sales of short-term investments</td><td> </td><td colspan="2">2,496</td><td></td><td> </td><td colspan="2">2,423</td><td></td><td> </td><td colspan="2">2,386</td><td></td></tr><tr><td>Investments in reverse repurchase agreements</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">150</td><td></td></tr><tr><td>Additions to property, plant and equipment</td><td> </td><td colspan="2">(1,028</td><td>)</td><td> </td><td colspan="2">(1,105</td><td>)</td><td> </td><td colspan="2">(1,143</td><td>)</td></tr><tr><td>Disposals of property, plant and equipment</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">10</td><td></td></tr><tr><td>Other investing activities</td><td> </td><td colspan="2">(25</td><td>)</td><td> </td><td colspan="2">(34</td><td>)</td><td> </td><td colspan="2">6</td><td></td></tr><tr><td>Cash provided (used) by investing activities</td><td> </td><td colspan="2">276</td><td></td><td> </td><td colspan="2">(1,008</td><td>)</td><td> </td><td colspan="2">(1,034</td><td>)</td></tr><tr><td>Cash used by financing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net proceeds from long-term debt issuance</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">1,482</td><td></td><td> </td><td colspan="2">981</td><td></td></tr><tr><td>Long-term debt payments, including current portion</td><td> </td><td colspan="2">(6</td><td>)</td><td> </td><td colspan="2">(44</td><td>)</td><td> </td><td colspan="2">(106</td><td>)</td></tr><tr><td>Increase (decrease) in notes payable</td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">327</td><td></td><td> </td><td colspan="2">(67</td><td>)</td></tr><tr><td>Payments on capital lease and other financing obligations</td><td> </td><td colspan="2">(23</td><td>)</td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">(7</td><td>)</td></tr><tr><td>Proceeds from exercise of stock options and other stock issuances</td><td> </td><td colspan="2">733</td><td></td><td> </td><td colspan="2">489</td><td></td><td> </td><td colspan="2">507</td><td></td></tr><tr><td>Repurchase of common stock</td><td> </td><td colspan="2">(4,254</td><td>)</td><td> </td><td colspan="2">(3,223</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends - common and preferred</td><td> </td><td colspan="2">(1,243</td><td>)</td><td> </td><td colspan="2">(1,133</td><td>)</td><td> </td><td colspan="2">(1,022</td><td>)</td></tr><tr><td>Tax payments for net share settlement of equity awards</td><td> </td><td colspan="2">(55</td><td>)</td><td> </td><td colspan="2">(29</td><td>)</td><td> </td><td colspan="2">(22</td><td>)</td></tr><tr><td>Cash used by financing activities</td><td> </td><td colspan="2">(4,835</td><td>)</td><td> </td><td colspan="2">(2,148</td><td>)</td><td> </td><td colspan="2">(2,974</td><td>)</td></tr><tr><td>Effect of exchange rate changes on cash and equivalents</td><td> </td><td colspan="2">45</td><td></td><td> </td><td colspan="2">(20</td><td>)</td><td> </td><td colspan="2">(105</td><td>)</td></tr><tr><td>Net increase (decrease) in cash and equivalents</td><td> </td><td colspan="2">441</td><td></td><td> </td><td colspan="2">670</td><td></td><td> </td><td colspan="2">(714</td><td>)</td></tr><tr><td>Cash and equivalents, beginning of year</td><td> </td><td colspan="2">3,808</td><td></td><td> </td><td colspan="2">3,138</td><td></td><td> </td><td colspan="2">3,852</td><td></td></tr><tr><td>CASH AND EQUIVALENTS, END OF YEAR</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td><td> </td><td>$</td><td>3,138</td><td></td></tr><tr><td>Supplemental disclosure of cash flow information:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash paid during the year for:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Interest, net of capitalized interest</td><td> </td><td>$</td><td>125</td><td></td><td> </td><td>$</td><td>98</td><td></td><td> </td><td>$</td><td>70</td><td></td></tr><tr><td>Income taxes</td><td> </td><td colspan="2">529</td><td></td><td> </td><td colspan="2">703</td><td></td><td> </td><td colspan="2">748</td><td></td></tr><tr><td>Non-cash additions to property, plant and equipment</td><td> </td><td colspan="2">294</td><td></td><td> </td><td colspan="2">266</td><td></td><td> </td><td colspan="2">252</td><td></td></tr><tr><td>Dividends declared and not paid</td><td> </td><td colspan="2">320</td><td></td><td> </td><td colspan="2">300</td><td></td><td> </td><td colspan="2">271</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
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<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
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<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Cash Flows</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net income</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Depreciation</td><td> </td><td colspan="2">747</td><td></td><td> </td><td colspan="2">706</td><td></td><td> </td><td colspan="2">649</td><td></td></tr><tr><td>Deferred income taxes</td><td> </td><td colspan="2">647</td><td></td><td> </td><td colspan="2">(273</td><td>)</td><td> </td><td colspan="2">(80</td><td>)</td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Amortization and other</td><td> </td><td colspan="2">27</td><td></td><td> </td><td colspan="2">10</td><td></td><td> </td><td colspan="2">13</td><td></td></tr><tr><td>Net foreign currency adjustments</td><td> </td><td colspan="2">(99</td><td>)</td><td> </td><td colspan="2">(117</td><td>)</td><td> </td><td colspan="2">98</td><td></td></tr><tr><td>Changes in certain working capital components and other assets and liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Decrease (increase) in accounts receivable</td><td> </td><td colspan="2">187</td><td></td><td> </td><td colspan="2">(426</td><td>)</td><td> </td><td colspan="2">60</td><td></td></tr><tr><td>(Increase) in inventories</td><td> </td><td colspan="2">(255</td><td>)</td><td> </td><td colspan="2">(231</td><td>)</td><td> </td><td colspan="2">(590</td><td>)</td></tr><tr><td>Decrease (increase) in prepaid expenses and other current and non-current assets</td><td> </td><td colspan="2">35</td><td></td><td> </td><td colspan="2">(120</td><td>)</td><td> </td><td colspan="2">(161</td><td>)</td></tr><tr><td>Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities</td><td> </td><td colspan="2">1,515</td><td></td><td> </td><td colspan="2">(158</td><td>)</td><td> </td><td colspan="2">(586</td><td>)</td></tr><tr><td>Cash provided by operations</td><td> </td><td colspan="2">4,955</td><td></td><td> </td><td colspan="2">3,846</td><td></td><td> </td><td colspan="2">3,399</td><td></td></tr><tr><td>Cash provided (used) by investing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Purchases of short-term investments</td><td> </td><td colspan="2">(4,783</td><td>)</td><td> </td><td colspan="2">(5,928</td><td>)</td><td> </td><td colspan="2">(5,367</td><td>)</td></tr><tr><td>Maturities of short-term investments</td><td> </td><td colspan="2">3,613</td><td></td><td> </td><td colspan="2">3,623</td><td></td><td> </td><td colspan="2">2,924</td><td></td></tr><tr><td>Sales of short-term investments</td><td> </td><td colspan="2">2,496</td><td></td><td> </td><td colspan="2">2,423</td><td></td><td> </td><td colspan="2">2,386</td><td></td></tr><tr><td>Investments in reverse repurchase agreements</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">150</td><td></td></tr><tr><td>Additions to property, plant and equipment</td><td> </td><td colspan="2">(1,028</td><td>)</td><td> </td><td colspan="2">(1,105</td><td>)</td><td> </td><td colspan="2">(1,143</td><td>)</td></tr><tr><td>Disposals of property, plant and equipment</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">10</td><td></td></tr><tr><td>Other investing activities</td><td> </td><td colspan="2">(25</td><td>)</td><td> </td><td colspan="2">(34</td><td>)</td><td> </td><td colspan="2">6</td><td></td></tr><tr><td>Cash provided (used) by investing activities</td><td> </td><td colspan="2">276</td><td></td><td> </td><td colspan="2">(1,008</td><td>)</td><td> </td><td colspan="2">(1,034</td><td>)</td></tr><tr><td>Cash used by financing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net proceeds from long-term debt issuance</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">1,482</td><td></td><td> </td><td colspan="2">981</td><td></td></tr><tr><td>Long-term debt payments, including current portion</td><td> </td><td colspan="2">(6</td><td>)</td><td> </td><td colspan="2">(44</td><td>)</td><td> </td><td colspan="2">(106</td><td>)</td></tr><tr><td>Increase (decrease) in notes payable</td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">327</td><td></td><td> </td><td colspan="2">(67</td><td>)</td></tr><tr><td>Payments on capital lease and other financing obligations</td><td> </td><td colspan="2">(23</td><td>)</td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">(7</td><td>)</td></tr><tr><td>Proceeds from exercise of stock options and other stock issuances</td><td> </td><td colspan="2">733</td><td></td><td> </td><td colspan="2">489</td><td></td><td> </td><td colspan="2">507</td><td></td></tr><tr><td>Repurchase of common stock</td><td> </td><td colspan="2">(4,254</td><td>)</td><td> </td><td colspan="2">(3,223</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends - common and preferred</td><td> </td><td colspan="2">(1,243</td><td>)</td><td> </td><td colspan="2">(1,133</td><td>)</td><td> </td><td colspan="2">(1,022</td><td>)</td></tr><tr><td>Tax payments for net share settlement of equity awards</td><td> </td><td colspan="2">(55</td><td>)</td><td> </td><td colspan="2">(29</td><td>)</td><td> </td><td colspan="2">(22</td><td>)</td></tr><tr><td>Cash used by financing activities</td><td> </td><td colspan="2">(4,835</td><td>)</td><td> </td><td colspan="2">(2,148</td><td>)</td><td> </td><td colspan="2">(2,974</td><td>)</td></tr><tr><td>Effect of exchange rate changes on cash and equivalents</td><td> </td><td colspan="2">45</td><td></td><td> </td><td colspan="2">(20</td><td>)</td><td> </td><td colspan="2">(105</td><td>)</td></tr><tr><td>Net increase (decrease) in cash and equivalents</td><td> </td><td colspan="2">441</td><td></td><td> </td><td colspan="2">670</td><td></td><td> </td><td colspan="2">(714</td><td>)</td></tr><tr><td>Cash and equivalents, beginning of year</td><td> </td><td colspan="2">3,808</td><td></td><td> </td><td colspan="2">3,138</td><td></td><td> </td><td colspan="2">3,852</td><td></td></tr><tr><td>CASH AND EQUIVALENTS, END OF YEAR</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td><td> </td><td>$</td><td>3,138</td><td></td></tr><tr><td>Supplemental disclosure of cash flow information:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash paid during the year for:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Interest, net of capitalized interest</td><td> </td><td>$</td><td>125</td><td></td><td> </td><td>$</td><td>98</td><td></td><td> </td><td>$</td><td>70</td><td></td></tr><tr><td>Income taxes</td><td> </td><td colspan="2">529</td><td></td><td> </td><td colspan="2">703</td><td></td><td> </td><td colspan="2">748</td><td></td></tr><tr><td>Non-cash additions to property, plant and equipment</td><td> </td><td colspan="2">294</td><td></td><td> </td><td colspan="2">266</td><td></td><td> </td><td colspan="2">252</td><td></td></tr><tr><td>Dividends declared and not paid</td><td> </td><td colspan="2">320</td><td></td><td> </td><td colspan="2">300</td><td></td><td> </td><td colspan="2">271</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
q_Ra181
|
How did Nike's total revenue in 2018 compare to 2017?
|
Total Revenue (2018) = $36,397 million
Total Revenue (2017) = $34,350 million
Formula:
Percentage Growth = ((Revenue 2018 - Revenue 2017) / Revenue 2017) × 100
Calculation:
Percentage Growth = ((36,397 - 34,350) / 34,350) × 100 ≈ 5.96%
|
Ratio
|
44
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
|
| | |
|---:|:---------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Income |
| | | | | | | | | | | | |
|---:|:-----------------------------------------|:-------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:---|:-------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions, except per share data) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Revenues | $ | 36,397 | | | $ | 34,350 | | | $ | 32,376 |
| 5 | Cost of sales | 20,441 | | | 19,038 | | | 17,405 | | | |
| 6 | Gross profit | 15,956 | | | 15,312 | | | 14,971 | | | |
| 7 | Demand creation expense | 3,577 | | | 3,341 | | | 3,278 | | | |
| 8 | Operating overhead expense | 7,934 | | | 7,222 | | | 7,191 | | | |
| 9 | Total selling and administrative expense | 11,511 | | | 10,563 | | | 10,469 | | | |
| 10 | Interest expense (income), net | 54 | | | 59 | | | 19 | | | |
| 11 | Other expense (income), net | 66 | | | (196 | ) | | (140 | ) | | |
| 12 | Income before income taxes | 4,325 | | | 4,886 | | | 4,623 | | | |
| 13 | Income tax expense | 2,392 | | | 646 | | | 863 | | | |
| 14 | NET INCOME | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 16 | Earnings per common share: | | | | | | | | | | |
| 17 | Basic | $ | 1.19 | | | $ | 2.56 | | | $ | 2.21 |
| 18 | Diluted | $ | 1.17 | | | $ | 2.51 | | | $ | 2.16 |
| 20 | Dividends declared per common share | $ | 0.78 | | | $ | 0.70 | | | $ | 0.62 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Income</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Revenues</td><td> </td><td>$</td><td>36,397</td><td></td><td> </td><td>$</td><td>34,350</td><td></td><td> </td><td>$</td><td>32,376</td><td></td></tr><tr><td>Cost of sales</td><td> </td><td colspan="2">20,441</td><td></td><td> </td><td colspan="2">19,038</td><td></td><td> </td><td colspan="2">17,405</td><td></td></tr><tr><td>Gross profit</td><td> </td><td colspan="2">15,956</td><td></td><td> </td><td colspan="2">15,312</td><td></td><td> </td><td colspan="2">14,971</td><td></td></tr><tr><td>Demand creation expense</td><td> </td><td colspan="2">3,577</td><td></td><td> </td><td colspan="2">3,341</td><td></td><td> </td><td colspan="2">3,278</td><td></td></tr><tr><td>Operating overhead expense</td><td> </td><td colspan="2">7,934</td><td></td><td> </td><td colspan="2">7,222</td><td></td><td> </td><td colspan="2">7,191</td><td></td></tr><tr><td>Total selling and administrative expense</td><td> </td><td colspan="2">11,511</td><td></td><td> </td><td colspan="2">10,563</td><td></td><td> </td><td colspan="2">10,469</td><td></td></tr><tr><td>Interest expense (income), net</td><td> </td><td colspan="2">54</td><td></td><td> </td><td colspan="2">59</td><td></td><td> </td><td colspan="2">19</td><td></td></tr><tr><td>Other expense (income), net</td><td> </td><td colspan="2">66</td><td></td><td> </td><td colspan="2">(196</td><td>)</td><td> </td><td colspan="2">(140</td><td>)</td></tr><tr><td>Income before income taxes</td><td> </td><td colspan="2">4,325</td><td></td><td> </td><td colspan="2">4,886</td><td></td><td> </td><td colspan="2">4,623</td><td></td></tr><tr><td>Income tax expense</td><td> </td><td colspan="2">2,392</td><td></td><td> </td><td colspan="2">646</td><td></td><td> </td><td colspan="2">863</td><td></td></tr><tr><td>NET INCOME</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Earnings per common share:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Basic</td><td> </td><td>$</td><td>1.19</td><td></td><td> </td><td>$</td><td>2.56</td><td></td><td> </td><td>$</td><td>2.21</td><td></td></tr><tr><td>Diluted</td><td> </td><td>$</td><td>1.17</td><td></td><td> </td><td>$</td><td>2.51</td><td></td><td> </td><td>$</td><td>2.16</td><td></td></tr><tr><td> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Dividends declared per common share</td><td> </td><td>$</td><td>0.78</td><td></td><td> </td><td>$</td><td>0.70</td><td></td><td> </td><td>$</td><td>0.62</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
44
|
q_Ra182
|
What is the percentage change in total assets between 2017 and 2018?
|
Assets 2018: $22,536 million
Assets 2017: $23,259 million
Formula:
Percentage Change in Assets = ((Assets 2018 - Assets 2017) / Assets 2017) × 100
Calculation:
Percentage Change = ((22,536 - 23,259) / 23,259) × 100
Percentage Change = (-723 / 23,259) × 100 ≈ -3.11%
Total assets decreased by approximately 3.11% from 2017 to 2018
|
Ratio
|
46
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
q_Ra183
|
What is the percentage change in shareholders' equity between 2017 and 2018?
|
Equity 2018: $9,812 million
Equity 2017: $12,407 million
Formula:
Percentage Change in Equity = ((Equity 2018 - Equity 2017) / Equity 2017) × 100
Calculation:
Percentage Change = ((9,812 - 12,407) / 12,407) × 100
Percentage Change = (-2,595 / 12,407) × 100 ≈ -20.92%
Shareholders' equity decreased by approximately 20.92% from 2017 to 2018.
|
Ratio
|
46
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
| | |
|---:|:---------------------------------------|
| 2 | NIKE, Inc. Consolidated Balance Sheets |
| | | | | | | | |
|---:|:-----------------------------------------------------|:--------|:-------|:-----|:-------|:---|:-------|
| 2 | | May 31, | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | | |
| 4 | ASSETS | | | | | | |
| 5 | Current assets: | | | | | | |
| 6 | Cash and equivalents | $ | 4,249 | | | $ | 3,808 |
| 7 | Short-term investments | 996 | | | 2,371 | | |
| 8 | Accounts receivable, net | 3,498 | | | 3,677 | | |
| 9 | Inventories | 5,261 | | | 5,055 | | |
| 10 | Prepaid expenses and other current assets | 1,130 | | | 1,150 | | |
| 11 | Total current assets | 15,134 | | | 16,061 | | |
| 12 | Property, plant and equipment, net | 4,454 | | | 3,989 | | |
| 13 | Identifiable intangible assets, net | 285 | | | 283 | | |
| 14 | Goodwill | 154 | | | 139 | | |
| 15 | Deferred income taxes and other assets | 2,509 | | | 2,787 | | |
| 16 | TOTAL ASSETS | $ | 22,536 | | | $ | 23,259 |
| 17 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| 18 | Current liabilities: | | | | | | |
| 19 | Current portion of long-term debt | $ | 6 | | | $ | 6 |
| 20 | Notes payable | 336 | | | 325 | | |
| 21 | Accounts payable | 2,279 | | | 2,048 | | |
| 22 | Accrued liabilities | 3,269 | | | 3,011 | | |
| 23 | Income taxes payable | 150 | | | 84 | | |
| 24 | Total current liabilities | 6,040 | | | 5,474 | | |
| 25 | Long-term debt | 3,468 | | | 3,471 | | |
| 26 | Deferred income taxes and other liabilities | 3,216 | | | 1,907 | | |
| 27 | Commitments and contingencies (Note 15) | | | | | | |
| 28 | Redeemable preferred stock | - | | | - | | |
| 29 | Shareholders' equity: | | | | | | |
| 30 | Common stock at stated value: | | | | | | |
| 31 | Class A convertible - 329 and 329 shares outstanding | - | | | - | | |
| 32 | Class B - 1,272 and 1,314 shares outstanding | 3 | | | 3 | | |
| 33 | Capital in excess of stated value | 6,384 | | | 5,710 | | |
| 34 | Accumulated other comprehensive loss | (92 | ) | | (213 | ) | |
| 35 | Retained earnings | 3,517 | | | 6,907 | | |
| 36 | Total shareholders' equity | 9,812 | | | 12,407 | | |
| 37 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 22,536 | | | $ | 23,259 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
46
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
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<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Balance Sheets</td></tr></table>
<table><tr><td colspan="9"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="7">May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td></tr><tr><td>ASSETS</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current assets:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash and equivalents</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td></tr><tr><td>Short-term investments</td><td> </td><td colspan="2">996</td><td></td><td> </td><td colspan="2">2,371</td><td></td></tr><tr><td>Accounts receivable, net</td><td> </td><td colspan="2">3,498</td><td></td><td> </td><td colspan="2">3,677</td><td></td></tr><tr><td>Inventories</td><td> </td><td colspan="2">5,261</td><td></td><td> </td><td colspan="2">5,055</td><td></td></tr><tr><td>Prepaid expenses and other current assets</td><td> </td><td colspan="2">1,130</td><td></td><td> </td><td colspan="2">1,150</td><td></td></tr><tr><td>Total current assets</td><td> </td><td colspan="2">15,134</td><td></td><td> </td><td colspan="2">16,061</td><td></td></tr><tr><td>Property, plant and equipment, net</td><td> </td><td colspan="2">4,454</td><td></td><td> </td><td colspan="2">3,989</td><td></td></tr><tr><td>Identifiable intangible assets, net</td><td> </td><td colspan="2">285</td><td></td><td> </td><td colspan="2">283</td><td></td></tr><tr><td>Goodwill</td><td> </td><td colspan="2">154</td><td></td><td> </td><td colspan="2">139</td><td></td></tr><tr><td>Deferred income taxes and other assets</td><td> </td><td colspan="2">2,509</td><td></td><td> </td><td colspan="2">2,787</td><td></td></tr><tr><td>TOTAL ASSETS</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr><tr><td>LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Current portion of long-term debt</td><td> </td><td>$</td><td>6</td><td></td><td> </td><td>$</td><td>6</td><td></td></tr><tr><td>Notes payable</td><td> </td><td colspan="2">336</td><td></td><td> </td><td colspan="2">325</td><td></td></tr><tr><td>Accounts payable</td><td> </td><td colspan="2">2,279</td><td></td><td> </td><td colspan="2">2,048</td><td></td></tr><tr><td>Accrued liabilities</td><td> </td><td colspan="2">3,269</td><td></td><td> </td><td colspan="2">3,011</td><td></td></tr><tr><td>Income taxes payable</td><td> </td><td colspan="2">150</td><td></td><td> </td><td colspan="2">84</td><td></td></tr><tr><td>Total current liabilities</td><td> </td><td colspan="2">6,040</td><td></td><td> </td><td colspan="2">5,474</td><td></td></tr><tr><td>Long-term debt</td><td> </td><td colspan="2">3,468</td><td></td><td> </td><td colspan="2">3,471</td><td></td></tr><tr><td>Deferred income taxes and other liabilities</td><td> </td><td colspan="2">3,216</td><td></td><td> </td><td colspan="2">1,907</td><td></td></tr><tr><td>Commitments and contingencies (Note 15)</td><td> </td><td colspan="2"></td><td></td><td> </td><td colspan="2"></td><td></td></tr><tr><td>Redeemable preferred stock</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Shareholders' equity:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Common stock at stated value:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Class A convertible - 329 and 329 shares outstanding</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Class B - 1,272 and 1,314 shares outstanding</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">3</td><td></td></tr><tr><td>Capital in excess of stated value</td><td> </td><td colspan="2">6,384</td><td></td><td> </td><td colspan="2">5,710</td><td></td></tr><tr><td>Accumulated other comprehensive loss</td><td> </td><td colspan="2">(92</td><td>)</td><td> </td><td colspan="2">(213</td><td>)</td></tr><tr><td>Retained earnings</td><td> </td><td colspan="2">3,517</td><td></td><td> </td><td colspan="2">6,907</td><td></td></tr><tr><td>Total shareholders' equity</td><td> </td><td colspan="2">9,812</td><td></td><td> </td><td colspan="2">12,407</td><td></td></tr><tr><td>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td><td>$</td><td>22,536</td><td></td><td> </td><td>$</td><td>23,259</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
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q_Ra184
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How did the repurchase of common stock in 2018 compare to 2017?
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Repurchase of Common Stock 2018: $4,254 million
Repurchase of Common Stock 2017: $3,223 million
Formula:
Percentage Change in Repurchase of Common Stock = ((Repurchase 2018 - Repurchase 2017) / Repurchase 2017) × 100
Calculation:
Percentage Change = ((4,254 - 3,223) / 3,223) × 100
Percentage Change = (1,031 / 3,223) × 100 ≈ 31.99%
Answer:
The repurchase of common stock increased by approximately 31.99% from 2017 to 2018. This indicates that Nike accelerated its share buyback program in 2018, which could be a strategy to return more value to shareholders or a signal of confidence in the company's financial stability and future performance.
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Ratio
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0000320187-18-000142
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ITEM 8. Financial Statements and Supplementary Data
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NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:
| | |
|---:|:-------------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Cash Flows |
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------------------------------------------|:-------------------|:------|:-----|:-------|:-----|:------|:-------|:---|:---|:------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Cash provided by operations: | | | | | | | | | | |
| 5 | Net income | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 6 | Adjustments to reconcile net income to net cash provided by operations: | | | | | | | | | | |
| 7 | Depreciation | 747 | | | 706 | | | 649 | | | |
| 8 | Deferred income taxes | 647 | | | (273 | ) | | (80 | ) | | |
| 9 | Stock-based compensation | 218 | | | 215 | | | 236 | | | |
| 10 | Amortization and other | 27 | | | 10 | | | 13 | | | |
| 11 | Net foreign currency adjustments | (99 | ) | | (117 | ) | | 98 | | | |
| 12 | Changes in certain working capital components and other assets and liabilities: | | | | | | | | | | |
| 13 | Decrease (increase) in accounts receivable | 187 | | | (426 | ) | | 60 | | | |
| 14 | (Increase) in inventories | (255 | ) | | (231 | ) | | (590 | ) | | |
| 15 | Decrease (increase) in prepaid expenses and other current and non-current assets | 35 | | | (120 | ) | | (161 | ) | | |
| 16 | Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,515 | | | (158 | ) | | (586 | ) | | |
| 17 | Cash provided by operations | 4,955 | | | 3,846 | | | 3,399 | | | |
| 18 | Cash provided (used) by investing activities: | | | | | | | | | | |
| 19 | Purchases of short-term investments | (4,783 | ) | | (5,928 | ) | | (5,367 | ) | | |
| 20 | Maturities of short-term investments | 3,613 | | | 3,623 | | | 2,924 | | | |
| 21 | Sales of short-term investments | 2,496 | | | 2,423 | | | 2,386 | | | |
| 22 | Investments in reverse repurchase agreements | - | | | - | | | 150 | | | |
| 23 | Additions to property, plant and equipment | (1,028 | ) | | (1,105 | ) | | (1,143 | ) | | |
| 24 | Disposals of property, plant and equipment | 3 | | | 13 | | | 10 | | | |
| 25 | Other investing activities | (25 | ) | | (34 | ) | | 6 | | | |
| 26 | Cash provided (used) by investing activities | 276 | | | (1,008 | ) | | (1,034 | ) | | |
| 27 | Cash used by financing activities: | | | | | | | | | | |
| 28 | Net proceeds from long-term debt issuance | - | | | 1,482 | | | 981 | | | |
| 29 | Long-term debt payments, including current portion | (6 | ) | | (44 | ) | | (106 | ) | | |
| 30 | Increase (decrease) in notes payable | 13 | | | 327 | | | (67 | ) | | |
| 31 | Payments on capital lease and other financing obligations | (23 | ) | | (17 | ) | | (7 | ) | | |
| 32 | Proceeds from exercise of stock options and other stock issuances | 733 | | | 489 | | | 507 | | | |
| 33 | Repurchase of common stock | (4,254 | ) | | (3,223 | ) | | (3,238 | ) | | |
| 34 | Dividends - common and preferred | (1,243 | ) | | (1,133 | ) | | (1,022 | ) | | |
| 35 | Tax payments for net share settlement of equity awards | (55 | ) | | (29 | ) | | (22 | ) | | |
| 36 | Cash used by financing activities | (4,835 | ) | | (2,148 | ) | | (2,974 | ) | | |
| 37 | Effect of exchange rate changes on cash and equivalents | 45 | | | (20 | ) | | (105 | ) | | |
| 38 | Net increase (decrease) in cash and equivalents | 441 | | | 670 | | | (714 | ) | | |
| 39 | Cash and equivalents, beginning of year | 3,808 | | | 3,138 | | | 3,852 | | | |
| 40 | CASH AND EQUIVALENTS, END OF YEAR | $ | 4,249 | | | $ | 3,808 | | | $ | 3,138 |
| 41 | Supplemental disclosure of cash flow information: | | | | | | | | | | |
| 42 | Cash paid during the year for: | | | | | | | | | | |
| 43 | Interest, net of capitalized interest | $ | 125 | | | $ | 98 | | | $ | 70 |
| 44 | Income taxes | 529 | | | 703 | | | 748 | | | |
| 45 | Non-cash additions to property, plant and equipment | 294 | | | 266 | | | 252 | | | |
| 46 | Dividends declared and not paid | 320 | | | 300 | | | 271 | | | |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
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| | |
|---:|:-------------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Cash Flows |
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------------------------------------------|:-------------------|:------|:-----|:-------|:-----|:------|:-------|:---|:---|:------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Cash provided by operations: | | | | | | | | | | |
| 5 | Net income | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 6 | Adjustments to reconcile net income to net cash provided by operations: | | | | | | | | | | |
| 7 | Depreciation | 747 | | | 706 | | | 649 | | | |
| 8 | Deferred income taxes | 647 | | | (273 | ) | | (80 | ) | | |
| 9 | Stock-based compensation | 218 | | | 215 | | | 236 | | | |
| 10 | Amortization and other | 27 | | | 10 | | | 13 | | | |
| 11 | Net foreign currency adjustments | (99 | ) | | (117 | ) | | 98 | | | |
| 12 | Changes in certain working capital components and other assets and liabilities: | | | | | | | | | | |
| 13 | Decrease (increase) in accounts receivable | 187 | | | (426 | ) | | 60 | | | |
| 14 | (Increase) in inventories | (255 | ) | | (231 | ) | | (590 | ) | | |
| 15 | Decrease (increase) in prepaid expenses and other current and non-current assets | 35 | | | (120 | ) | | (161 | ) | | |
| 16 | Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,515 | | | (158 | ) | | (586 | ) | | |
| 17 | Cash provided by operations | 4,955 | | | 3,846 | | | 3,399 | | | |
| 18 | Cash provided (used) by investing activities: | | | | | | | | | | |
| 19 | Purchases of short-term investments | (4,783 | ) | | (5,928 | ) | | (5,367 | ) | | |
| 20 | Maturities of short-term investments | 3,613 | | | 3,623 | | | 2,924 | | | |
| 21 | Sales of short-term investments | 2,496 | | | 2,423 | | | 2,386 | | | |
| 22 | Investments in reverse repurchase agreements | - | | | - | | | 150 | | | |
| 23 | Additions to property, plant and equipment | (1,028 | ) | | (1,105 | ) | | (1,143 | ) | | |
| 24 | Disposals of property, plant and equipment | 3 | | | 13 | | | 10 | | | |
| 25 | Other investing activities | (25 | ) | | (34 | ) | | 6 | | | |
| 26 | Cash provided (used) by investing activities | 276 | | | (1,008 | ) | | (1,034 | ) | | |
| 27 | Cash used by financing activities: | | | | | | | | | | |
| 28 | Net proceeds from long-term debt issuance | - | | | 1,482 | | | 981 | | | |
| 29 | Long-term debt payments, including current portion | (6 | ) | | (44 | ) | | (106 | ) | | |
| 30 | Increase (decrease) in notes payable | 13 | | | 327 | | | (67 | ) | | |
| 31 | Payments on capital lease and other financing obligations | (23 | ) | | (17 | ) | | (7 | ) | | |
| 32 | Proceeds from exercise of stock options and other stock issuances | 733 | | | 489 | | | 507 | | | |
| 33 | Repurchase of common stock | (4,254 | ) | | (3,223 | ) | | (3,238 | ) | | |
| 34 | Dividends - common and preferred | (1,243 | ) | | (1,133 | ) | | (1,022 | ) | | |
| 35 | Tax payments for net share settlement of equity awards | (55 | ) | | (29 | ) | | (22 | ) | | |
| 36 | Cash used by financing activities | (4,835 | ) | | (2,148 | ) | | (2,974 | ) | | |
| 37 | Effect of exchange rate changes on cash and equivalents | 45 | | | (20 | ) | | (105 | ) | | |
| 38 | Net increase (decrease) in cash and equivalents | 441 | | | 670 | | | (714 | ) | | |
| 39 | Cash and equivalents, beginning of year | 3,808 | | | 3,138 | | | 3,852 | | | |
| 40 | CASH AND EQUIVALENTS, END OF YEAR | $ | 4,249 | | | $ | 3,808 | | | $ | 3,138 |
| 41 | Supplemental disclosure of cash flow information: | | | | | | | | | | |
| 42 | Cash paid during the year for: | | | | | | | | | | |
| 43 | Interest, net of capitalized interest | $ | 125 | | | $ | 98 | | | $ | 70 |
| 44 | Income taxes | 529 | | | 703 | | | 748 | | | |
| 45 | Non-cash additions to property, plant and equipment | 294 | | | 266 | | | 252 | | | |
| 46 | Dividends declared and not paid | 320 | | | 300 | | | 271 | | | |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
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NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Cash Flows</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net income</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Depreciation</td><td> </td><td colspan="2">747</td><td></td><td> </td><td colspan="2">706</td><td></td><td> </td><td colspan="2">649</td><td></td></tr><tr><td>Deferred income taxes</td><td> </td><td colspan="2">647</td><td></td><td> </td><td colspan="2">(273</td><td>)</td><td> </td><td colspan="2">(80</td><td>)</td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Amortization and other</td><td> </td><td colspan="2">27</td><td></td><td> </td><td colspan="2">10</td><td></td><td> </td><td colspan="2">13</td><td></td></tr><tr><td>Net foreign currency adjustments</td><td> </td><td colspan="2">(99</td><td>)</td><td> </td><td colspan="2">(117</td><td>)</td><td> </td><td colspan="2">98</td><td></td></tr><tr><td>Changes in certain working capital components and other assets and liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Decrease (increase) in accounts receivable</td><td> </td><td colspan="2">187</td><td></td><td> </td><td colspan="2">(426</td><td>)</td><td> </td><td colspan="2">60</td><td></td></tr><tr><td>(Increase) in inventories</td><td> </td><td colspan="2">(255</td><td>)</td><td> </td><td colspan="2">(231</td><td>)</td><td> </td><td colspan="2">(590</td><td>)</td></tr><tr><td>Decrease (increase) in prepaid expenses and other current and non-current assets</td><td> </td><td colspan="2">35</td><td></td><td> </td><td colspan="2">(120</td><td>)</td><td> </td><td colspan="2">(161</td><td>)</td></tr><tr><td>Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities</td><td> </td><td colspan="2">1,515</td><td></td><td> </td><td colspan="2">(158</td><td>)</td><td> </td><td colspan="2">(586</td><td>)</td></tr><tr><td>Cash provided by operations</td><td> </td><td colspan="2">4,955</td><td></td><td> </td><td colspan="2">3,846</td><td></td><td> </td><td colspan="2">3,399</td><td></td></tr><tr><td>Cash provided (used) by investing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Purchases of short-term investments</td><td> </td><td colspan="2">(4,783</td><td>)</td><td> </td><td colspan="2">(5,928</td><td>)</td><td> </td><td colspan="2">(5,367</td><td>)</td></tr><tr><td>Maturities of short-term investments</td><td> </td><td colspan="2">3,613</td><td></td><td> </td><td colspan="2">3,623</td><td></td><td> </td><td colspan="2">2,924</td><td></td></tr><tr><td>Sales of short-term investments</td><td> </td><td colspan="2">2,496</td><td></td><td> </td><td colspan="2">2,423</td><td></td><td> </td><td colspan="2">2,386</td><td></td></tr><tr><td>Investments in reverse repurchase agreements</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">150</td><td></td></tr><tr><td>Additions to property, plant and equipment</td><td> </td><td colspan="2">(1,028</td><td>)</td><td> </td><td colspan="2">(1,105</td><td>)</td><td> </td><td colspan="2">(1,143</td><td>)</td></tr><tr><td>Disposals of property, plant and equipment</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">10</td><td></td></tr><tr><td>Other investing activities</td><td> </td><td colspan="2">(25</td><td>)</td><td> </td><td colspan="2">(34</td><td>)</td><td> </td><td colspan="2">6</td><td></td></tr><tr><td>Cash provided (used) by investing activities</td><td> </td><td colspan="2">276</td><td></td><td> </td><td colspan="2">(1,008</td><td>)</td><td> </td><td colspan="2">(1,034</td><td>)</td></tr><tr><td>Cash used by financing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net proceeds from long-term debt issuance</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">1,482</td><td></td><td> </td><td colspan="2">981</td><td></td></tr><tr><td>Long-term debt payments, including current portion</td><td> </td><td colspan="2">(6</td><td>)</td><td> </td><td colspan="2">(44</td><td>)</td><td> </td><td colspan="2">(106</td><td>)</td></tr><tr><td>Increase (decrease) in notes payable</td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">327</td><td></td><td> </td><td colspan="2">(67</td><td>)</td></tr><tr><td>Payments on capital lease and other financing obligations</td><td> </td><td colspan="2">(23</td><td>)</td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">(7</td><td>)</td></tr><tr><td>Proceeds from exercise of stock options and other stock issuances</td><td> </td><td colspan="2">733</td><td></td><td> </td><td colspan="2">489</td><td></td><td> </td><td colspan="2">507</td><td></td></tr><tr><td>Repurchase of common stock</td><td> </td><td colspan="2">(4,254</td><td>)</td><td> </td><td colspan="2">(3,223</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends - common and preferred</td><td> </td><td colspan="2">(1,243</td><td>)</td><td> </td><td colspan="2">(1,133</td><td>)</td><td> </td><td colspan="2">(1,022</td><td>)</td></tr><tr><td>Tax payments for net share settlement of equity awards</td><td> </td><td colspan="2">(55</td><td>)</td><td> </td><td colspan="2">(29</td><td>)</td><td> </td><td colspan="2">(22</td><td>)</td></tr><tr><td>Cash used by financing activities</td><td> </td><td colspan="2">(4,835</td><td>)</td><td> </td><td colspan="2">(2,148</td><td>)</td><td> </td><td colspan="2">(2,974</td><td>)</td></tr><tr><td>Effect of exchange rate changes on cash and equivalents</td><td> </td><td colspan="2">45</td><td></td><td> </td><td colspan="2">(20</td><td>)</td><td> </td><td colspan="2">(105</td><td>)</td></tr><tr><td>Net increase (decrease) in cash and equivalents</td><td> </td><td colspan="2">441</td><td></td><td> </td><td colspan="2">670</td><td></td><td> </td><td colspan="2">(714</td><td>)</td></tr><tr><td>Cash and equivalents, beginning of year</td><td> </td><td colspan="2">3,808</td><td></td><td> </td><td colspan="2">3,138</td><td></td><td> </td><td colspan="2">3,852</td><td></td></tr><tr><td>CASH AND EQUIVALENTS, END OF YEAR</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td><td> </td><td>$</td><td>3,138</td><td></td></tr><tr><td>Supplemental disclosure of cash flow information:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash paid during the year for:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Interest, net of capitalized interest</td><td> </td><td>$</td><td>125</td><td></td><td> </td><td>$</td><td>98</td><td></td><td> </td><td>$</td><td>70</td><td></td></tr><tr><td>Income taxes</td><td> </td><td colspan="2">529</td><td></td><td> </td><td colspan="2">703</td><td></td><td> </td><td colspan="2">748</td><td></td></tr><tr><td>Non-cash additions to property, plant and equipment</td><td> </td><td colspan="2">294</td><td></td><td> </td><td colspan="2">266</td><td></td><td> </td><td colspan="2">252</td><td></td></tr><tr><td>Dividends declared and not paid</td><td> </td><td colspan="2">320</td><td></td><td> </td><td colspan="2">300</td><td></td><td> </td><td colspan="2">271</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Cash Flows</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net income</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Depreciation</td><td> </td><td colspan="2">747</td><td></td><td> </td><td colspan="2">706</td><td></td><td> </td><td colspan="2">649</td><td></td></tr><tr><td>Deferred income taxes</td><td> </td><td colspan="2">647</td><td></td><td> </td><td colspan="2">(273</td><td>)</td><td> </td><td colspan="2">(80</td><td>)</td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Amortization and other</td><td> </td><td colspan="2">27</td><td></td><td> </td><td colspan="2">10</td><td></td><td> </td><td colspan="2">13</td><td></td></tr><tr><td>Net foreign currency adjustments</td><td> </td><td colspan="2">(99</td><td>)</td><td> </td><td colspan="2">(117</td><td>)</td><td> </td><td colspan="2">98</td><td></td></tr><tr><td>Changes in certain working capital components and other assets and liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Decrease (increase) in accounts receivable</td><td> </td><td colspan="2">187</td><td></td><td> </td><td colspan="2">(426</td><td>)</td><td> </td><td colspan="2">60</td><td></td></tr><tr><td>(Increase) in inventories</td><td> </td><td colspan="2">(255</td><td>)</td><td> </td><td colspan="2">(231</td><td>)</td><td> </td><td colspan="2">(590</td><td>)</td></tr><tr><td>Decrease (increase) in prepaid expenses and other current and non-current assets</td><td> </td><td colspan="2">35</td><td></td><td> </td><td colspan="2">(120</td><td>)</td><td> </td><td colspan="2">(161</td><td>)</td></tr><tr><td>Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities</td><td> </td><td colspan="2">1,515</td><td></td><td> </td><td colspan="2">(158</td><td>)</td><td> </td><td colspan="2">(586</td><td>)</td></tr><tr><td>Cash provided by operations</td><td> </td><td colspan="2">4,955</td><td></td><td> </td><td colspan="2">3,846</td><td></td><td> </td><td colspan="2">3,399</td><td></td></tr><tr><td>Cash provided (used) by investing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Purchases of short-term investments</td><td> </td><td colspan="2">(4,783</td><td>)</td><td> </td><td colspan="2">(5,928</td><td>)</td><td> </td><td colspan="2">(5,367</td><td>)</td></tr><tr><td>Maturities of short-term investments</td><td> </td><td colspan="2">3,613</td><td></td><td> </td><td colspan="2">3,623</td><td></td><td> </td><td colspan="2">2,924</td><td></td></tr><tr><td>Sales of short-term investments</td><td> </td><td colspan="2">2,496</td><td></td><td> </td><td colspan="2">2,423</td><td></td><td> </td><td colspan="2">2,386</td><td></td></tr><tr><td>Investments in reverse repurchase agreements</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">150</td><td></td></tr><tr><td>Additions to property, plant and equipment</td><td> </td><td colspan="2">(1,028</td><td>)</td><td> </td><td colspan="2">(1,105</td><td>)</td><td> </td><td colspan="2">(1,143</td><td>)</td></tr><tr><td>Disposals of property, plant and equipment</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">10</td><td></td></tr><tr><td>Other investing activities</td><td> </td><td colspan="2">(25</td><td>)</td><td> </td><td colspan="2">(34</td><td>)</td><td> </td><td colspan="2">6</td><td></td></tr><tr><td>Cash provided (used) by investing activities</td><td> </td><td colspan="2">276</td><td></td><td> </td><td colspan="2">(1,008</td><td>)</td><td> </td><td colspan="2">(1,034</td><td>)</td></tr><tr><td>Cash used by financing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net proceeds from long-term debt issuance</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">1,482</td><td></td><td> </td><td colspan="2">981</td><td></td></tr><tr><td>Long-term debt payments, including current portion</td><td> </td><td colspan="2">(6</td><td>)</td><td> </td><td colspan="2">(44</td><td>)</td><td> </td><td colspan="2">(106</td><td>)</td></tr><tr><td>Increase (decrease) in notes payable</td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">327</td><td></td><td> </td><td colspan="2">(67</td><td>)</td></tr><tr><td>Payments on capital lease and other financing obligations</td><td> </td><td colspan="2">(23</td><td>)</td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">(7</td><td>)</td></tr><tr><td>Proceeds from exercise of stock options and other stock issuances</td><td> </td><td colspan="2">733</td><td></td><td> </td><td colspan="2">489</td><td></td><td> </td><td colspan="2">507</td><td></td></tr><tr><td>Repurchase of common stock</td><td> </td><td colspan="2">(4,254</td><td>)</td><td> </td><td colspan="2">(3,223</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends - common and preferred</td><td> </td><td colspan="2">(1,243</td><td>)</td><td> </td><td colspan="2">(1,133</td><td>)</td><td> </td><td colspan="2">(1,022</td><td>)</td></tr><tr><td>Tax payments for net share settlement of equity awards</td><td> </td><td colspan="2">(55</td><td>)</td><td> </td><td colspan="2">(29</td><td>)</td><td> </td><td colspan="2">(22</td><td>)</td></tr><tr><td>Cash used by financing activities</td><td> </td><td colspan="2">(4,835</td><td>)</td><td> </td><td colspan="2">(2,148</td><td>)</td><td> </td><td colspan="2">(2,974</td><td>)</td></tr><tr><td>Effect of exchange rate changes on cash and equivalents</td><td> </td><td colspan="2">45</td><td></td><td> </td><td colspan="2">(20</td><td>)</td><td> </td><td colspan="2">(105</td><td>)</td></tr><tr><td>Net increase (decrease) in cash and equivalents</td><td> </td><td colspan="2">441</td><td></td><td> </td><td colspan="2">670</td><td></td><td> </td><td colspan="2">(714</td><td>)</td></tr><tr><td>Cash and equivalents, beginning of year</td><td> </td><td colspan="2">3,808</td><td></td><td> </td><td colspan="2">3,138</td><td></td><td> </td><td colspan="2">3,852</td><td></td></tr><tr><td>CASH AND EQUIVALENTS, END OF YEAR</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td><td> </td><td>$</td><td>3,138</td><td></td></tr><tr><td>Supplemental disclosure of cash flow information:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash paid during the year for:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Interest, net of capitalized interest</td><td> </td><td>$</td><td>125</td><td></td><td> </td><td>$</td><td>98</td><td></td><td> </td><td>$</td><td>70</td><td></td></tr><tr><td>Income taxes</td><td> </td><td colspan="2">529</td><td></td><td> </td><td colspan="2">703</td><td></td><td> </td><td colspan="2">748</td><td></td></tr><tr><td>Non-cash additions to property, plant and equipment</td><td> </td><td colspan="2">294</td><td></td><td> </td><td colspan="2">266</td><td></td><td> </td><td colspan="2">252</td><td></td></tr><tr><td>Dividends declared and not paid</td><td> </td><td colspan="2">320</td><td></td><td> </td><td colspan="2">300</td><td></td><td> </td><td colspan="2">271</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
q_Ra185
|
What is the difference in purchases of short-term investments between 2017 and 2018?
|
Purchases of Short-term Investments 2018: $4,783 million
Purchases of Short-term Investments 2017: $5,928 million
Formula:
Difference in Purchases = Purchases in 2018 - Purchases in 2017
Calculation:
Difference = (4,783 - 5,928)
Difference = -1,145
Answer: Purchases of short-term investments decreased by $1,145 million from 2017 to 2018.
|
Ratio
|
47
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:
| | |
|---:|:-------------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Cash Flows |
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------------------------------------------|:-------------------|:------|:-----|:-------|:-----|:------|:-------|:---|:---|:------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Cash provided by operations: | | | | | | | | | | |
| 5 | Net income | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 6 | Adjustments to reconcile net income to net cash provided by operations: | | | | | | | | | | |
| 7 | Depreciation | 747 | | | 706 | | | 649 | | | |
| 8 | Deferred income taxes | 647 | | | (273 | ) | | (80 | ) | | |
| 9 | Stock-based compensation | 218 | | | 215 | | | 236 | | | |
| 10 | Amortization and other | 27 | | | 10 | | | 13 | | | |
| 11 | Net foreign currency adjustments | (99 | ) | | (117 | ) | | 98 | | | |
| 12 | Changes in certain working capital components and other assets and liabilities: | | | | | | | | | | |
| 13 | Decrease (increase) in accounts receivable | 187 | | | (426 | ) | | 60 | | | |
| 14 | (Increase) in inventories | (255 | ) | | (231 | ) | | (590 | ) | | |
| 15 | Decrease (increase) in prepaid expenses and other current and non-current assets | 35 | | | (120 | ) | | (161 | ) | | |
| 16 | Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,515 | | | (158 | ) | | (586 | ) | | |
| 17 | Cash provided by operations | 4,955 | | | 3,846 | | | 3,399 | | | |
| 18 | Cash provided (used) by investing activities: | | | | | | | | | | |
| 19 | Purchases of short-term investments | (4,783 | ) | | (5,928 | ) | | (5,367 | ) | | |
| 20 | Maturities of short-term investments | 3,613 | | | 3,623 | | | 2,924 | | | |
| 21 | Sales of short-term investments | 2,496 | | | 2,423 | | | 2,386 | | | |
| 22 | Investments in reverse repurchase agreements | - | | | - | | | 150 | | | |
| 23 | Additions to property, plant and equipment | (1,028 | ) | | (1,105 | ) | | (1,143 | ) | | |
| 24 | Disposals of property, plant and equipment | 3 | | | 13 | | | 10 | | | |
| 25 | Other investing activities | (25 | ) | | (34 | ) | | 6 | | | |
| 26 | Cash provided (used) by investing activities | 276 | | | (1,008 | ) | | (1,034 | ) | | |
| 27 | Cash used by financing activities: | | | | | | | | | | |
| 28 | Net proceeds from long-term debt issuance | - | | | 1,482 | | | 981 | | | |
| 29 | Long-term debt payments, including current portion | (6 | ) | | (44 | ) | | (106 | ) | | |
| 30 | Increase (decrease) in notes payable | 13 | | | 327 | | | (67 | ) | | |
| 31 | Payments on capital lease and other financing obligations | (23 | ) | | (17 | ) | | (7 | ) | | |
| 32 | Proceeds from exercise of stock options and other stock issuances | 733 | | | 489 | | | 507 | | | |
| 33 | Repurchase of common stock | (4,254 | ) | | (3,223 | ) | | (3,238 | ) | | |
| 34 | Dividends - common and preferred | (1,243 | ) | | (1,133 | ) | | (1,022 | ) | | |
| 35 | Tax payments for net share settlement of equity awards | (55 | ) | | (29 | ) | | (22 | ) | | |
| 36 | Cash used by financing activities | (4,835 | ) | | (2,148 | ) | | (2,974 | ) | | |
| 37 | Effect of exchange rate changes on cash and equivalents | 45 | | | (20 | ) | | (105 | ) | | |
| 38 | Net increase (decrease) in cash and equivalents | 441 | | | 670 | | | (714 | ) | | |
| 39 | Cash and equivalents, beginning of year | 3,808 | | | 3,138 | | | 3,852 | | | |
| 40 | CASH AND EQUIVALENTS, END OF YEAR | $ | 4,249 | | | $ | 3,808 | | | $ | 3,138 |
| 41 | Supplemental disclosure of cash flow information: | | | | | | | | | | |
| 42 | Cash paid during the year for: | | | | | | | | | | |
| 43 | Interest, net of capitalized interest | $ | 125 | | | $ | 98 | | | $ | 70 |
| 44 | Income taxes | 529 | | | 703 | | | 748 | | | |
| 45 | Non-cash additions to property, plant and equipment | 294 | | | 266 | | | 252 | | | |
| 46 | Dividends declared and not paid | 320 | | | 300 | | | 271 | | | |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
| | |
|---:|:-------------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Cash Flows |
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------------------------------------------|:-------------------|:------|:-----|:-------|:-----|:------|:-------|:---|:---|:------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Cash provided by operations: | | | | | | | | | | |
| 5 | Net income | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 6 | Adjustments to reconcile net income to net cash provided by operations: | | | | | | | | | | |
| 7 | Depreciation | 747 | | | 706 | | | 649 | | | |
| 8 | Deferred income taxes | 647 | | | (273 | ) | | (80 | ) | | |
| 9 | Stock-based compensation | 218 | | | 215 | | | 236 | | | |
| 10 | Amortization and other | 27 | | | 10 | | | 13 | | | |
| 11 | Net foreign currency adjustments | (99 | ) | | (117 | ) | | 98 | | | |
| 12 | Changes in certain working capital components and other assets and liabilities: | | | | | | | | | | |
| 13 | Decrease (increase) in accounts receivable | 187 | | | (426 | ) | | 60 | | | |
| 14 | (Increase) in inventories | (255 | ) | | (231 | ) | | (590 | ) | | |
| 15 | Decrease (increase) in prepaid expenses and other current and non-current assets | 35 | | | (120 | ) | | (161 | ) | | |
| 16 | Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,515 | | | (158 | ) | | (586 | ) | | |
| 17 | Cash provided by operations | 4,955 | | | 3,846 | | | 3,399 | | | |
| 18 | Cash provided (used) by investing activities: | | | | | | | | | | |
| 19 | Purchases of short-term investments | (4,783 | ) | | (5,928 | ) | | (5,367 | ) | | |
| 20 | Maturities of short-term investments | 3,613 | | | 3,623 | | | 2,924 | | | |
| 21 | Sales of short-term investments | 2,496 | | | 2,423 | | | 2,386 | | | |
| 22 | Investments in reverse repurchase agreements | - | | | - | | | 150 | | | |
| 23 | Additions to property, plant and equipment | (1,028 | ) | | (1,105 | ) | | (1,143 | ) | | |
| 24 | Disposals of property, plant and equipment | 3 | | | 13 | | | 10 | | | |
| 25 | Other investing activities | (25 | ) | | (34 | ) | | 6 | | | |
| 26 | Cash provided (used) by investing activities | 276 | | | (1,008 | ) | | (1,034 | ) | | |
| 27 | Cash used by financing activities: | | | | | | | | | | |
| 28 | Net proceeds from long-term debt issuance | - | | | 1,482 | | | 981 | | | |
| 29 | Long-term debt payments, including current portion | (6 | ) | | (44 | ) | | (106 | ) | | |
| 30 | Increase (decrease) in notes payable | 13 | | | 327 | | | (67 | ) | | |
| 31 | Payments on capital lease and other financing obligations | (23 | ) | | (17 | ) | | (7 | ) | | |
| 32 | Proceeds from exercise of stock options and other stock issuances | 733 | | | 489 | | | 507 | | | |
| 33 | Repurchase of common stock | (4,254 | ) | | (3,223 | ) | | (3,238 | ) | | |
| 34 | Dividends - common and preferred | (1,243 | ) | | (1,133 | ) | | (1,022 | ) | | |
| 35 | Tax payments for net share settlement of equity awards | (55 | ) | | (29 | ) | | (22 | ) | | |
| 36 | Cash used by financing activities | (4,835 | ) | | (2,148 | ) | | (2,974 | ) | | |
| 37 | Effect of exchange rate changes on cash and equivalents | 45 | | | (20 | ) | | (105 | ) | | |
| 38 | Net increase (decrease) in cash and equivalents | 441 | | | 670 | | | (714 | ) | | |
| 39 | Cash and equivalents, beginning of year | 3,808 | | | 3,138 | | | 3,852 | | | |
| 40 | CASH AND EQUIVALENTS, END OF YEAR | $ | 4,249 | | | $ | 3,808 | | | $ | 3,138 |
| 41 | Supplemental disclosure of cash flow information: | | | | | | | | | | |
| 42 | Cash paid during the year for: | | | | | | | | | | |
| 43 | Interest, net of capitalized interest | $ | 125 | | | $ | 98 | | | $ | 70 |
| 44 | Income taxes | 529 | | | 703 | | | 748 | | | |
| 45 | Non-cash additions to property, plant and equipment | 294 | | | 266 | | | 252 | | | |
| 46 | Dividends declared and not paid | 320 | | | 300 | | | 271 | | | |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
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NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Cash Flows</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net income</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Depreciation</td><td> </td><td colspan="2">747</td><td></td><td> </td><td colspan="2">706</td><td></td><td> </td><td colspan="2">649</td><td></td></tr><tr><td>Deferred income taxes</td><td> </td><td colspan="2">647</td><td></td><td> </td><td colspan="2">(273</td><td>)</td><td> </td><td colspan="2">(80</td><td>)</td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Amortization and other</td><td> </td><td colspan="2">27</td><td></td><td> </td><td colspan="2">10</td><td></td><td> </td><td colspan="2">13</td><td></td></tr><tr><td>Net foreign currency adjustments</td><td> </td><td colspan="2">(99</td><td>)</td><td> </td><td colspan="2">(117</td><td>)</td><td> </td><td colspan="2">98</td><td></td></tr><tr><td>Changes in certain working capital components and other assets and liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Decrease (increase) in accounts receivable</td><td> </td><td colspan="2">187</td><td></td><td> </td><td colspan="2">(426</td><td>)</td><td> </td><td colspan="2">60</td><td></td></tr><tr><td>(Increase) in inventories</td><td> </td><td colspan="2">(255</td><td>)</td><td> </td><td colspan="2">(231</td><td>)</td><td> </td><td colspan="2">(590</td><td>)</td></tr><tr><td>Decrease (increase) in prepaid expenses and other current and non-current assets</td><td> </td><td colspan="2">35</td><td></td><td> </td><td colspan="2">(120</td><td>)</td><td> </td><td colspan="2">(161</td><td>)</td></tr><tr><td>Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities</td><td> </td><td colspan="2">1,515</td><td></td><td> </td><td colspan="2">(158</td><td>)</td><td> </td><td colspan="2">(586</td><td>)</td></tr><tr><td>Cash provided by operations</td><td> </td><td colspan="2">4,955</td><td></td><td> </td><td colspan="2">3,846</td><td></td><td> </td><td colspan="2">3,399</td><td></td></tr><tr><td>Cash provided (used) by investing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Purchases of short-term investments</td><td> </td><td colspan="2">(4,783</td><td>)</td><td> </td><td colspan="2">(5,928</td><td>)</td><td> </td><td colspan="2">(5,367</td><td>)</td></tr><tr><td>Maturities of short-term investments</td><td> </td><td colspan="2">3,613</td><td></td><td> </td><td colspan="2">3,623</td><td></td><td> </td><td colspan="2">2,924</td><td></td></tr><tr><td>Sales of short-term investments</td><td> </td><td colspan="2">2,496</td><td></td><td> </td><td colspan="2">2,423</td><td></td><td> </td><td colspan="2">2,386</td><td></td></tr><tr><td>Investments in reverse repurchase agreements</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">150</td><td></td></tr><tr><td>Additions to property, plant and equipment</td><td> </td><td colspan="2">(1,028</td><td>)</td><td> </td><td colspan="2">(1,105</td><td>)</td><td> </td><td colspan="2">(1,143</td><td>)</td></tr><tr><td>Disposals of property, plant and equipment</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">10</td><td></td></tr><tr><td>Other investing activities</td><td> </td><td colspan="2">(25</td><td>)</td><td> </td><td colspan="2">(34</td><td>)</td><td> </td><td colspan="2">6</td><td></td></tr><tr><td>Cash provided (used) by investing activities</td><td> </td><td colspan="2">276</td><td></td><td> </td><td colspan="2">(1,008</td><td>)</td><td> </td><td colspan="2">(1,034</td><td>)</td></tr><tr><td>Cash used by financing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net proceeds from long-term debt issuance</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">1,482</td><td></td><td> </td><td colspan="2">981</td><td></td></tr><tr><td>Long-term debt payments, including current portion</td><td> </td><td colspan="2">(6</td><td>)</td><td> </td><td colspan="2">(44</td><td>)</td><td> </td><td colspan="2">(106</td><td>)</td></tr><tr><td>Increase (decrease) in notes payable</td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">327</td><td></td><td> </td><td colspan="2">(67</td><td>)</td></tr><tr><td>Payments on capital lease and other financing obligations</td><td> </td><td colspan="2">(23</td><td>)</td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">(7</td><td>)</td></tr><tr><td>Proceeds from exercise of stock options and other stock issuances</td><td> </td><td colspan="2">733</td><td></td><td> </td><td colspan="2">489</td><td></td><td> </td><td colspan="2">507</td><td></td></tr><tr><td>Repurchase of common stock</td><td> </td><td colspan="2">(4,254</td><td>)</td><td> </td><td colspan="2">(3,223</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends - common and preferred</td><td> </td><td colspan="2">(1,243</td><td>)</td><td> </td><td colspan="2">(1,133</td><td>)</td><td> </td><td colspan="2">(1,022</td><td>)</td></tr><tr><td>Tax payments for net share settlement of equity awards</td><td> </td><td colspan="2">(55</td><td>)</td><td> </td><td colspan="2">(29</td><td>)</td><td> </td><td colspan="2">(22</td><td>)</td></tr><tr><td>Cash used by financing activities</td><td> </td><td colspan="2">(4,835</td><td>)</td><td> </td><td colspan="2">(2,148</td><td>)</td><td> </td><td colspan="2">(2,974</td><td>)</td></tr><tr><td>Effect of exchange rate changes on cash and equivalents</td><td> </td><td colspan="2">45</td><td></td><td> </td><td colspan="2">(20</td><td>)</td><td> </td><td colspan="2">(105</td><td>)</td></tr><tr><td>Net increase (decrease) in cash and equivalents</td><td> </td><td colspan="2">441</td><td></td><td> </td><td colspan="2">670</td><td></td><td> </td><td colspan="2">(714</td><td>)</td></tr><tr><td>Cash and equivalents, beginning of year</td><td> </td><td colspan="2">3,808</td><td></td><td> </td><td colspan="2">3,138</td><td></td><td> </td><td colspan="2">3,852</td><td></td></tr><tr><td>CASH AND EQUIVALENTS, END OF YEAR</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td><td> </td><td>$</td><td>3,138</td><td></td></tr><tr><td>Supplemental disclosure of cash flow information:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash paid during the year for:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Interest, net of capitalized interest</td><td> </td><td>$</td><td>125</td><td></td><td> </td><td>$</td><td>98</td><td></td><td> </td><td>$</td><td>70</td><td></td></tr><tr><td>Income taxes</td><td> </td><td colspan="2">529</td><td></td><td> </td><td colspan="2">703</td><td></td><td> </td><td colspan="2">748</td><td></td></tr><tr><td>Non-cash additions to property, plant and equipment</td><td> </td><td colspan="2">294</td><td></td><td> </td><td colspan="2">266</td><td></td><td> </td><td colspan="2">252</td><td></td></tr><tr><td>Dividends declared and not paid</td><td> </td><td colspan="2">320</td><td></td><td> </td><td colspan="2">300</td><td></td><td> </td><td colspan="2">271</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Cash Flows</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net income</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Depreciation</td><td> </td><td colspan="2">747</td><td></td><td> </td><td colspan="2">706</td><td></td><td> </td><td colspan="2">649</td><td></td></tr><tr><td>Deferred income taxes</td><td> </td><td colspan="2">647</td><td></td><td> </td><td colspan="2">(273</td><td>)</td><td> </td><td colspan="2">(80</td><td>)</td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Amortization and other</td><td> </td><td colspan="2">27</td><td></td><td> </td><td colspan="2">10</td><td></td><td> </td><td colspan="2">13</td><td></td></tr><tr><td>Net foreign currency adjustments</td><td> </td><td colspan="2">(99</td><td>)</td><td> </td><td colspan="2">(117</td><td>)</td><td> </td><td colspan="2">98</td><td></td></tr><tr><td>Changes in certain working capital components and other assets and liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Decrease (increase) in accounts receivable</td><td> </td><td colspan="2">187</td><td></td><td> </td><td colspan="2">(426</td><td>)</td><td> </td><td colspan="2">60</td><td></td></tr><tr><td>(Increase) in inventories</td><td> </td><td colspan="2">(255</td><td>)</td><td> </td><td colspan="2">(231</td><td>)</td><td> </td><td colspan="2">(590</td><td>)</td></tr><tr><td>Decrease (increase) in prepaid expenses and other current and non-current assets</td><td> </td><td colspan="2">35</td><td></td><td> </td><td colspan="2">(120</td><td>)</td><td> </td><td colspan="2">(161</td><td>)</td></tr><tr><td>Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities</td><td> </td><td colspan="2">1,515</td><td></td><td> </td><td colspan="2">(158</td><td>)</td><td> </td><td colspan="2">(586</td><td>)</td></tr><tr><td>Cash provided by operations</td><td> </td><td colspan="2">4,955</td><td></td><td> </td><td colspan="2">3,846</td><td></td><td> </td><td colspan="2">3,399</td><td></td></tr><tr><td>Cash provided (used) by investing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Purchases of short-term investments</td><td> </td><td colspan="2">(4,783</td><td>)</td><td> </td><td colspan="2">(5,928</td><td>)</td><td> </td><td colspan="2">(5,367</td><td>)</td></tr><tr><td>Maturities of short-term investments</td><td> </td><td colspan="2">3,613</td><td></td><td> </td><td colspan="2">3,623</td><td></td><td> </td><td colspan="2">2,924</td><td></td></tr><tr><td>Sales of short-term investments</td><td> </td><td colspan="2">2,496</td><td></td><td> </td><td colspan="2">2,423</td><td></td><td> </td><td colspan="2">2,386</td><td></td></tr><tr><td>Investments in reverse repurchase agreements</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">150</td><td></td></tr><tr><td>Additions to property, plant and equipment</td><td> </td><td colspan="2">(1,028</td><td>)</td><td> </td><td colspan="2">(1,105</td><td>)</td><td> </td><td colspan="2">(1,143</td><td>)</td></tr><tr><td>Disposals of property, plant and equipment</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">10</td><td></td></tr><tr><td>Other investing activities</td><td> </td><td colspan="2">(25</td><td>)</td><td> </td><td colspan="2">(34</td><td>)</td><td> </td><td colspan="2">6</td><td></td></tr><tr><td>Cash provided (used) by investing activities</td><td> </td><td colspan="2">276</td><td></td><td> </td><td colspan="2">(1,008</td><td>)</td><td> </td><td colspan="2">(1,034</td><td>)</td></tr><tr><td>Cash used by financing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net proceeds from long-term debt issuance</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">1,482</td><td></td><td> </td><td colspan="2">981</td><td></td></tr><tr><td>Long-term debt payments, including current portion</td><td> </td><td colspan="2">(6</td><td>)</td><td> </td><td colspan="2">(44</td><td>)</td><td> </td><td colspan="2">(106</td><td>)</td></tr><tr><td>Increase (decrease) in notes payable</td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">327</td><td></td><td> </td><td colspan="2">(67</td><td>)</td></tr><tr><td>Payments on capital lease and other financing obligations</td><td> </td><td colspan="2">(23</td><td>)</td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">(7</td><td>)</td></tr><tr><td>Proceeds from exercise of stock options and other stock issuances</td><td> </td><td colspan="2">733</td><td></td><td> </td><td colspan="2">489</td><td></td><td> </td><td colspan="2">507</td><td></td></tr><tr><td>Repurchase of common stock</td><td> </td><td colspan="2">(4,254</td><td>)</td><td> </td><td colspan="2">(3,223</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends - common and preferred</td><td> </td><td colspan="2">(1,243</td><td>)</td><td> </td><td colspan="2">(1,133</td><td>)</td><td> </td><td colspan="2">(1,022</td><td>)</td></tr><tr><td>Tax payments for net share settlement of equity awards</td><td> </td><td colspan="2">(55</td><td>)</td><td> </td><td colspan="2">(29</td><td>)</td><td> </td><td colspan="2">(22</td><td>)</td></tr><tr><td>Cash used by financing activities</td><td> </td><td colspan="2">(4,835</td><td>)</td><td> </td><td colspan="2">(2,148</td><td>)</td><td> </td><td colspan="2">(2,974</td><td>)</td></tr><tr><td>Effect of exchange rate changes on cash and equivalents</td><td> </td><td colspan="2">45</td><td></td><td> </td><td colspan="2">(20</td><td>)</td><td> </td><td colspan="2">(105</td><td>)</td></tr><tr><td>Net increase (decrease) in cash and equivalents</td><td> </td><td colspan="2">441</td><td></td><td> </td><td colspan="2">670</td><td></td><td> </td><td colspan="2">(714</td><td>)</td></tr><tr><td>Cash and equivalents, beginning of year</td><td> </td><td colspan="2">3,808</td><td></td><td> </td><td colspan="2">3,138</td><td></td><td> </td><td colspan="2">3,852</td><td></td></tr><tr><td>CASH AND EQUIVALENTS, END OF YEAR</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td><td> </td><td>$</td><td>3,138</td><td></td></tr><tr><td>Supplemental disclosure of cash flow information:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash paid during the year for:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Interest, net of capitalized interest</td><td> </td><td>$</td><td>125</td><td></td><td> </td><td>$</td><td>98</td><td></td><td> </td><td>$</td><td>70</td><td></td></tr><tr><td>Income taxes</td><td> </td><td colspan="2">529</td><td></td><td> </td><td colspan="2">703</td><td></td><td> </td><td colspan="2">748</td><td></td></tr><tr><td>Non-cash additions to property, plant and equipment</td><td> </td><td colspan="2">294</td><td></td><td> </td><td colspan="2">266</td><td></td><td> </td><td colspan="2">252</td><td></td></tr><tr><td>Dividends declared and not paid</td><td> </td><td colspan="2">320</td><td></td><td> </td><td colspan="2">300</td><td></td><td> </td><td colspan="2">271</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
q_Ra186
|
What is the percentage change in depreciation expense from 2017 to 2018?
|
Depreciation Expense 2018: $747 million
Depreciation Expense 2017: $706 million
Formula:
Percentage Change in Depreciation = ((Depreciation 2018 - Depreciation 2017) / Depreciation 2017) × 100
Calculation:
Percentage Change = ((747 - 706) / 706) × 100
Percentage Change = (41 / 706) × 100 ≈ 5.81%
Answer: Depreciation expense increased by approximately 5.81% from 2017 to 2018.
|
Ratio
|
47
|
0000320187-18-000142
|
ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:
| | |
|---:|:-------------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Cash Flows |
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------------------------------------------|:-------------------|:------|:-----|:-------|:-----|:------|:-------|:---|:---|:------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Cash provided by operations: | | | | | | | | | | |
| 5 | Net income | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 6 | Adjustments to reconcile net income to net cash provided by operations: | | | | | | | | | | |
| 7 | Depreciation | 747 | | | 706 | | | 649 | | | |
| 8 | Deferred income taxes | 647 | | | (273 | ) | | (80 | ) | | |
| 9 | Stock-based compensation | 218 | | | 215 | | | 236 | | | |
| 10 | Amortization and other | 27 | | | 10 | | | 13 | | | |
| 11 | Net foreign currency adjustments | (99 | ) | | (117 | ) | | 98 | | | |
| 12 | Changes in certain working capital components and other assets and liabilities: | | | | | | | | | | |
| 13 | Decrease (increase) in accounts receivable | 187 | | | (426 | ) | | 60 | | | |
| 14 | (Increase) in inventories | (255 | ) | | (231 | ) | | (590 | ) | | |
| 15 | Decrease (increase) in prepaid expenses and other current and non-current assets | 35 | | | (120 | ) | | (161 | ) | | |
| 16 | Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,515 | | | (158 | ) | | (586 | ) | | |
| 17 | Cash provided by operations | 4,955 | | | 3,846 | | | 3,399 | | | |
| 18 | Cash provided (used) by investing activities: | | | | | | | | | | |
| 19 | Purchases of short-term investments | (4,783 | ) | | (5,928 | ) | | (5,367 | ) | | |
| 20 | Maturities of short-term investments | 3,613 | | | 3,623 | | | 2,924 | | | |
| 21 | Sales of short-term investments | 2,496 | | | 2,423 | | | 2,386 | | | |
| 22 | Investments in reverse repurchase agreements | - | | | - | | | 150 | | | |
| 23 | Additions to property, plant and equipment | (1,028 | ) | | (1,105 | ) | | (1,143 | ) | | |
| 24 | Disposals of property, plant and equipment | 3 | | | 13 | | | 10 | | | |
| 25 | Other investing activities | (25 | ) | | (34 | ) | | 6 | | | |
| 26 | Cash provided (used) by investing activities | 276 | | | (1,008 | ) | | (1,034 | ) | | |
| 27 | Cash used by financing activities: | | | | | | | | | | |
| 28 | Net proceeds from long-term debt issuance | - | | | 1,482 | | | 981 | | | |
| 29 | Long-term debt payments, including current portion | (6 | ) | | (44 | ) | | (106 | ) | | |
| 30 | Increase (decrease) in notes payable | 13 | | | 327 | | | (67 | ) | | |
| 31 | Payments on capital lease and other financing obligations | (23 | ) | | (17 | ) | | (7 | ) | | |
| 32 | Proceeds from exercise of stock options and other stock issuances | 733 | | | 489 | | | 507 | | | |
| 33 | Repurchase of common stock | (4,254 | ) | | (3,223 | ) | | (3,238 | ) | | |
| 34 | Dividends - common and preferred | (1,243 | ) | | (1,133 | ) | | (1,022 | ) | | |
| 35 | Tax payments for net share settlement of equity awards | (55 | ) | | (29 | ) | | (22 | ) | | |
| 36 | Cash used by financing activities | (4,835 | ) | | (2,148 | ) | | (2,974 | ) | | |
| 37 | Effect of exchange rate changes on cash and equivalents | 45 | | | (20 | ) | | (105 | ) | | |
| 38 | Net increase (decrease) in cash and equivalents | 441 | | | 670 | | | (714 | ) | | |
| 39 | Cash and equivalents, beginning of year | 3,808 | | | 3,138 | | | 3,852 | | | |
| 40 | CASH AND EQUIVALENTS, END OF YEAR | $ | 4,249 | | | $ | 3,808 | | | $ | 3,138 |
| 41 | Supplemental disclosure of cash flow information: | | | | | | | | | | |
| 42 | Cash paid during the year for: | | | | | | | | | | |
| 43 | Interest, net of capitalized interest | $ | 125 | | | $ | 98 | | | $ | 70 |
| 44 | Income taxes | 529 | | | 703 | | | 748 | | | |
| 45 | Non-cash additions to property, plant and equipment | 294 | | | 266 | | | 252 | | | |
| 46 | Dividends declared and not paid | 320 | | | 300 | | | 271 | | | |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
| | |
|---:|:-------------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Cash Flows |
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------------------------------------------|:-------------------|:------|:-----|:-------|:-----|:------|:-------|:---|:---|:------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Cash provided by operations: | | | | | | | | | | |
| 5 | Net income | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 6 | Adjustments to reconcile net income to net cash provided by operations: | | | | | | | | | | |
| 7 | Depreciation | 747 | | | 706 | | | 649 | | | |
| 8 | Deferred income taxes | 647 | | | (273 | ) | | (80 | ) | | |
| 9 | Stock-based compensation | 218 | | | 215 | | | 236 | | | |
| 10 | Amortization and other | 27 | | | 10 | | | 13 | | | |
| 11 | Net foreign currency adjustments | (99 | ) | | (117 | ) | | 98 | | | |
| 12 | Changes in certain working capital components and other assets and liabilities: | | | | | | | | | | |
| 13 | Decrease (increase) in accounts receivable | 187 | | | (426 | ) | | 60 | | | |
| 14 | (Increase) in inventories | (255 | ) | | (231 | ) | | (590 | ) | | |
| 15 | Decrease (increase) in prepaid expenses and other current and non-current assets | 35 | | | (120 | ) | | (161 | ) | | |
| 16 | Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,515 | | | (158 | ) | | (586 | ) | | |
| 17 | Cash provided by operations | 4,955 | | | 3,846 | | | 3,399 | | | |
| 18 | Cash provided (used) by investing activities: | | | | | | | | | | |
| 19 | Purchases of short-term investments | (4,783 | ) | | (5,928 | ) | | (5,367 | ) | | |
| 20 | Maturities of short-term investments | 3,613 | | | 3,623 | | | 2,924 | | | |
| 21 | Sales of short-term investments | 2,496 | | | 2,423 | | | 2,386 | | | |
| 22 | Investments in reverse repurchase agreements | - | | | - | | | 150 | | | |
| 23 | Additions to property, plant and equipment | (1,028 | ) | | (1,105 | ) | | (1,143 | ) | | |
| 24 | Disposals of property, plant and equipment | 3 | | | 13 | | | 10 | | | |
| 25 | Other investing activities | (25 | ) | | (34 | ) | | 6 | | | |
| 26 | Cash provided (used) by investing activities | 276 | | | (1,008 | ) | | (1,034 | ) | | |
| 27 | Cash used by financing activities: | | | | | | | | | | |
| 28 | Net proceeds from long-term debt issuance | - | | | 1,482 | | | 981 | | | |
| 29 | Long-term debt payments, including current portion | (6 | ) | | (44 | ) | | (106 | ) | | |
| 30 | Increase (decrease) in notes payable | 13 | | | 327 | | | (67 | ) | | |
| 31 | Payments on capital lease and other financing obligations | (23 | ) | | (17 | ) | | (7 | ) | | |
| 32 | Proceeds from exercise of stock options and other stock issuances | 733 | | | 489 | | | 507 | | | |
| 33 | Repurchase of common stock | (4,254 | ) | | (3,223 | ) | | (3,238 | ) | | |
| 34 | Dividends - common and preferred | (1,243 | ) | | (1,133 | ) | | (1,022 | ) | | |
| 35 | Tax payments for net share settlement of equity awards | (55 | ) | | (29 | ) | | (22 | ) | | |
| 36 | Cash used by financing activities | (4,835 | ) | | (2,148 | ) | | (2,974 | ) | | |
| 37 | Effect of exchange rate changes on cash and equivalents | 45 | | | (20 | ) | | (105 | ) | | |
| 38 | Net increase (decrease) in cash and equivalents | 441 | | | 670 | | | (714 | ) | | |
| 39 | Cash and equivalents, beginning of year | 3,808 | | | 3,138 | | | 3,852 | | | |
| 40 | CASH AND EQUIVALENTS, END OF YEAR | $ | 4,249 | | | $ | 3,808 | | | $ | 3,138 |
| 41 | Supplemental disclosure of cash flow information: | | | | | | | | | | |
| 42 | Cash paid during the year for: | | | | | | | | | | |
| 43 | Interest, net of capitalized interest | $ | 125 | | | $ | 98 | | | $ | 70 |
| 44 | Income taxes | 529 | | | 703 | | | 748 | | | |
| 45 | Non-cash additions to property, plant and equipment | 294 | | | 266 | | | 252 | | | |
| 46 | Dividends declared and not paid | 320 | | | 300 | | | 271 | | | |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Cash Flows</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net income</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Depreciation</td><td> </td><td colspan="2">747</td><td></td><td> </td><td colspan="2">706</td><td></td><td> </td><td colspan="2">649</td><td></td></tr><tr><td>Deferred income taxes</td><td> </td><td colspan="2">647</td><td></td><td> </td><td colspan="2">(273</td><td>)</td><td> </td><td colspan="2">(80</td><td>)</td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Amortization and other</td><td> </td><td colspan="2">27</td><td></td><td> </td><td colspan="2">10</td><td></td><td> </td><td colspan="2">13</td><td></td></tr><tr><td>Net foreign currency adjustments</td><td> </td><td colspan="2">(99</td><td>)</td><td> </td><td colspan="2">(117</td><td>)</td><td> </td><td colspan="2">98</td><td></td></tr><tr><td>Changes in certain working capital components and other assets and liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Decrease (increase) in accounts receivable</td><td> </td><td colspan="2">187</td><td></td><td> </td><td colspan="2">(426</td><td>)</td><td> </td><td colspan="2">60</td><td></td></tr><tr><td>(Increase) in inventories</td><td> </td><td colspan="2">(255</td><td>)</td><td> </td><td colspan="2">(231</td><td>)</td><td> </td><td colspan="2">(590</td><td>)</td></tr><tr><td>Decrease (increase) in prepaid expenses and other current and non-current assets</td><td> </td><td colspan="2">35</td><td></td><td> </td><td colspan="2">(120</td><td>)</td><td> </td><td colspan="2">(161</td><td>)</td></tr><tr><td>Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities</td><td> </td><td colspan="2">1,515</td><td></td><td> </td><td colspan="2">(158</td><td>)</td><td> </td><td colspan="2">(586</td><td>)</td></tr><tr><td>Cash provided by operations</td><td> </td><td colspan="2">4,955</td><td></td><td> </td><td colspan="2">3,846</td><td></td><td> </td><td colspan="2">3,399</td><td></td></tr><tr><td>Cash provided (used) by investing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Purchases of short-term investments</td><td> </td><td colspan="2">(4,783</td><td>)</td><td> </td><td colspan="2">(5,928</td><td>)</td><td> </td><td colspan="2">(5,367</td><td>)</td></tr><tr><td>Maturities of short-term investments</td><td> </td><td colspan="2">3,613</td><td></td><td> </td><td colspan="2">3,623</td><td></td><td> </td><td colspan="2">2,924</td><td></td></tr><tr><td>Sales of short-term investments</td><td> </td><td colspan="2">2,496</td><td></td><td> </td><td colspan="2">2,423</td><td></td><td> </td><td colspan="2">2,386</td><td></td></tr><tr><td>Investments in reverse repurchase agreements</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">150</td><td></td></tr><tr><td>Additions to property, plant and equipment</td><td> </td><td colspan="2">(1,028</td><td>)</td><td> </td><td colspan="2">(1,105</td><td>)</td><td> </td><td colspan="2">(1,143</td><td>)</td></tr><tr><td>Disposals of property, plant and equipment</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">10</td><td></td></tr><tr><td>Other investing activities</td><td> </td><td colspan="2">(25</td><td>)</td><td> </td><td colspan="2">(34</td><td>)</td><td> </td><td colspan="2">6</td><td></td></tr><tr><td>Cash provided (used) by investing activities</td><td> </td><td colspan="2">276</td><td></td><td> </td><td colspan="2">(1,008</td><td>)</td><td> </td><td colspan="2">(1,034</td><td>)</td></tr><tr><td>Cash used by financing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net proceeds from long-term debt issuance</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">1,482</td><td></td><td> </td><td colspan="2">981</td><td></td></tr><tr><td>Long-term debt payments, including current portion</td><td> </td><td colspan="2">(6</td><td>)</td><td> </td><td colspan="2">(44</td><td>)</td><td> </td><td colspan="2">(106</td><td>)</td></tr><tr><td>Increase (decrease) in notes payable</td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">327</td><td></td><td> </td><td colspan="2">(67</td><td>)</td></tr><tr><td>Payments on capital lease and other financing obligations</td><td> </td><td colspan="2">(23</td><td>)</td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">(7</td><td>)</td></tr><tr><td>Proceeds from exercise of stock options and other stock issuances</td><td> </td><td colspan="2">733</td><td></td><td> </td><td colspan="2">489</td><td></td><td> </td><td colspan="2">507</td><td></td></tr><tr><td>Repurchase of common stock</td><td> </td><td colspan="2">(4,254</td><td>)</td><td> </td><td colspan="2">(3,223</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends - common and preferred</td><td> </td><td colspan="2">(1,243</td><td>)</td><td> </td><td colspan="2">(1,133</td><td>)</td><td> </td><td colspan="2">(1,022</td><td>)</td></tr><tr><td>Tax payments for net share settlement of equity awards</td><td> </td><td colspan="2">(55</td><td>)</td><td> </td><td colspan="2">(29</td><td>)</td><td> </td><td colspan="2">(22</td><td>)</td></tr><tr><td>Cash used by financing activities</td><td> </td><td colspan="2">(4,835</td><td>)</td><td> </td><td colspan="2">(2,148</td><td>)</td><td> </td><td colspan="2">(2,974</td><td>)</td></tr><tr><td>Effect of exchange rate changes on cash and equivalents</td><td> </td><td colspan="2">45</td><td></td><td> </td><td colspan="2">(20</td><td>)</td><td> </td><td colspan="2">(105</td><td>)</td></tr><tr><td>Net increase (decrease) in cash and equivalents</td><td> </td><td colspan="2">441</td><td></td><td> </td><td colspan="2">670</td><td></td><td> </td><td colspan="2">(714</td><td>)</td></tr><tr><td>Cash and equivalents, beginning of year</td><td> </td><td colspan="2">3,808</td><td></td><td> </td><td colspan="2">3,138</td><td></td><td> </td><td colspan="2">3,852</td><td></td></tr><tr><td>CASH AND EQUIVALENTS, END OF YEAR</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td><td> </td><td>$</td><td>3,138</td><td></td></tr><tr><td>Supplemental disclosure of cash flow information:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash paid during the year for:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Interest, net of capitalized interest</td><td> </td><td>$</td><td>125</td><td></td><td> </td><td>$</td><td>98</td><td></td><td> </td><td>$</td><td>70</td><td></td></tr><tr><td>Income taxes</td><td> </td><td colspan="2">529</td><td></td><td> </td><td colspan="2">703</td><td></td><td> </td><td colspan="2">748</td><td></td></tr><tr><td>Non-cash additions to property, plant and equipment</td><td> </td><td colspan="2">294</td><td></td><td> </td><td colspan="2">266</td><td></td><td> </td><td colspan="2">252</td><td></td></tr><tr><td>Dividends declared and not paid</td><td> </td><td colspan="2">320</td><td></td><td> </td><td colspan="2">300</td><td></td><td> </td><td colspan="2">271</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Cash Flows</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net income</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Depreciation</td><td> </td><td colspan="2">747</td><td></td><td> </td><td colspan="2">706</td><td></td><td> </td><td colspan="2">649</td><td></td></tr><tr><td>Deferred income taxes</td><td> </td><td colspan="2">647</td><td></td><td> </td><td colspan="2">(273</td><td>)</td><td> </td><td colspan="2">(80</td><td>)</td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Amortization and other</td><td> </td><td colspan="2">27</td><td></td><td> </td><td colspan="2">10</td><td></td><td> </td><td colspan="2">13</td><td></td></tr><tr><td>Net foreign currency adjustments</td><td> </td><td colspan="2">(99</td><td>)</td><td> </td><td colspan="2">(117</td><td>)</td><td> </td><td colspan="2">98</td><td></td></tr><tr><td>Changes in certain working capital components and other assets and liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Decrease (increase) in accounts receivable</td><td> </td><td colspan="2">187</td><td></td><td> </td><td colspan="2">(426</td><td>)</td><td> </td><td colspan="2">60</td><td></td></tr><tr><td>(Increase) in inventories</td><td> </td><td colspan="2">(255</td><td>)</td><td> </td><td colspan="2">(231</td><td>)</td><td> </td><td colspan="2">(590</td><td>)</td></tr><tr><td>Decrease (increase) in prepaid expenses and other current and non-current assets</td><td> </td><td colspan="2">35</td><td></td><td> </td><td colspan="2">(120</td><td>)</td><td> </td><td colspan="2">(161</td><td>)</td></tr><tr><td>Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities</td><td> </td><td colspan="2">1,515</td><td></td><td> </td><td colspan="2">(158</td><td>)</td><td> </td><td colspan="2">(586</td><td>)</td></tr><tr><td>Cash provided by operations</td><td> </td><td colspan="2">4,955</td><td></td><td> </td><td colspan="2">3,846</td><td></td><td> </td><td colspan="2">3,399</td><td></td></tr><tr><td>Cash provided (used) by investing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Purchases of short-term investments</td><td> </td><td colspan="2">(4,783</td><td>)</td><td> </td><td colspan="2">(5,928</td><td>)</td><td> </td><td colspan="2">(5,367</td><td>)</td></tr><tr><td>Maturities of short-term investments</td><td> </td><td colspan="2">3,613</td><td></td><td> </td><td colspan="2">3,623</td><td></td><td> </td><td colspan="2">2,924</td><td></td></tr><tr><td>Sales of short-term investments</td><td> </td><td colspan="2">2,496</td><td></td><td> </td><td colspan="2">2,423</td><td></td><td> </td><td colspan="2">2,386</td><td></td></tr><tr><td>Investments in reverse repurchase agreements</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">150</td><td></td></tr><tr><td>Additions to property, plant and equipment</td><td> </td><td colspan="2">(1,028</td><td>)</td><td> </td><td colspan="2">(1,105</td><td>)</td><td> </td><td colspan="2">(1,143</td><td>)</td></tr><tr><td>Disposals of property, plant and equipment</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">10</td><td></td></tr><tr><td>Other investing activities</td><td> </td><td colspan="2">(25</td><td>)</td><td> </td><td colspan="2">(34</td><td>)</td><td> </td><td colspan="2">6</td><td></td></tr><tr><td>Cash provided (used) by investing activities</td><td> </td><td colspan="2">276</td><td></td><td> </td><td colspan="2">(1,008</td><td>)</td><td> </td><td colspan="2">(1,034</td><td>)</td></tr><tr><td>Cash used by financing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net proceeds from long-term debt issuance</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">1,482</td><td></td><td> </td><td colspan="2">981</td><td></td></tr><tr><td>Long-term debt payments, including current portion</td><td> </td><td colspan="2">(6</td><td>)</td><td> </td><td colspan="2">(44</td><td>)</td><td> </td><td colspan="2">(106</td><td>)</td></tr><tr><td>Increase (decrease) in notes payable</td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">327</td><td></td><td> </td><td colspan="2">(67</td><td>)</td></tr><tr><td>Payments on capital lease and other financing obligations</td><td> </td><td colspan="2">(23</td><td>)</td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">(7</td><td>)</td></tr><tr><td>Proceeds from exercise of stock options and other stock issuances</td><td> </td><td colspan="2">733</td><td></td><td> </td><td colspan="2">489</td><td></td><td> </td><td colspan="2">507</td><td></td></tr><tr><td>Repurchase of common stock</td><td> </td><td colspan="2">(4,254</td><td>)</td><td> </td><td colspan="2">(3,223</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends - common and preferred</td><td> </td><td colspan="2">(1,243</td><td>)</td><td> </td><td colspan="2">(1,133</td><td>)</td><td> </td><td colspan="2">(1,022</td><td>)</td></tr><tr><td>Tax payments for net share settlement of equity awards</td><td> </td><td colspan="2">(55</td><td>)</td><td> </td><td colspan="2">(29</td><td>)</td><td> </td><td colspan="2">(22</td><td>)</td></tr><tr><td>Cash used by financing activities</td><td> </td><td colspan="2">(4,835</td><td>)</td><td> </td><td colspan="2">(2,148</td><td>)</td><td> </td><td colspan="2">(2,974</td><td>)</td></tr><tr><td>Effect of exchange rate changes on cash and equivalents</td><td> </td><td colspan="2">45</td><td></td><td> </td><td colspan="2">(20</td><td>)</td><td> </td><td colspan="2">(105</td><td>)</td></tr><tr><td>Net increase (decrease) in cash and equivalents</td><td> </td><td colspan="2">441</td><td></td><td> </td><td colspan="2">670</td><td></td><td> </td><td colspan="2">(714</td><td>)</td></tr><tr><td>Cash and equivalents, beginning of year</td><td> </td><td colspan="2">3,808</td><td></td><td> </td><td colspan="2">3,138</td><td></td><td> </td><td colspan="2">3,852</td><td></td></tr><tr><td>CASH AND EQUIVALENTS, END OF YEAR</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td><td> </td><td>$</td><td>3,138</td><td></td></tr><tr><td>Supplemental disclosure of cash flow information:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash paid during the year for:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Interest, net of capitalized interest</td><td> </td><td>$</td><td>125</td><td></td><td> </td><td>$</td><td>98</td><td></td><td> </td><td>$</td><td>70</td><td></td></tr><tr><td>Income taxes</td><td> </td><td colspan="2">529</td><td></td><td> </td><td colspan="2">703</td><td></td><td> </td><td colspan="2">748</td><td></td></tr><tr><td>Non-cash additions to property, plant and equipment</td><td> </td><td colspan="2">294</td><td></td><td> </td><td colspan="2">266</td><td></td><td> </td><td colspan="2">252</td><td></td></tr><tr><td>Dividends declared and not paid</td><td> </td><td colspan="2">320</td><td></td><td> </td><td colspan="2">300</td><td></td><td> </td><td colspan="2">271</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
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q_Ra187
|
How did stock-based compensation expense change from 2017 to 2018?
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Stock-Based Compensation Expense 2018: $218 million
Stock-Based Compensation Expense 2017: $215 million
Formula:
Percentage Change in Stock-Based Compensation = ((Expense 2018 - Expense 2017) / Expense 2017) × 100
Calculation:
Percentage Change = ((218 - 215) / 215) × 100
Percentage Change = (3 / 215) × 100 ≈ 1.40%
Answer:
Stock-based compensation expense increased by approximately 1.40% from 2017 to 2018. This slight increase suggests that Nike's equity compensation practices remained relatively consistent, with no significant changes to stock-based awards for employees during this period.
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Ratio
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47
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0000320187-18-000142
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ITEM 8. Financial Statements and Supplementary Data
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:
| | |
|---:|:-------------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Cash Flows |
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------------------------------------------|:-------------------|:------|:-----|:-------|:-----|:------|:-------|:---|:---|:------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Cash provided by operations: | | | | | | | | | | |
| 5 | Net income | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 6 | Adjustments to reconcile net income to net cash provided by operations: | | | | | | | | | | |
| 7 | Depreciation | 747 | | | 706 | | | 649 | | | |
| 8 | Deferred income taxes | 647 | | | (273 | ) | | (80 | ) | | |
| 9 | Stock-based compensation | 218 | | | 215 | | | 236 | | | |
| 10 | Amortization and other | 27 | | | 10 | | | 13 | | | |
| 11 | Net foreign currency adjustments | (99 | ) | | (117 | ) | | 98 | | | |
| 12 | Changes in certain working capital components and other assets and liabilities: | | | | | | | | | | |
| 13 | Decrease (increase) in accounts receivable | 187 | | | (426 | ) | | 60 | | | |
| 14 | (Increase) in inventories | (255 | ) | | (231 | ) | | (590 | ) | | |
| 15 | Decrease (increase) in prepaid expenses and other current and non-current assets | 35 | | | (120 | ) | | (161 | ) | | |
| 16 | Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,515 | | | (158 | ) | | (586 | ) | | |
| 17 | Cash provided by operations | 4,955 | | | 3,846 | | | 3,399 | | | |
| 18 | Cash provided (used) by investing activities: | | | | | | | | | | |
| 19 | Purchases of short-term investments | (4,783 | ) | | (5,928 | ) | | (5,367 | ) | | |
| 20 | Maturities of short-term investments | 3,613 | | | 3,623 | | | 2,924 | | | |
| 21 | Sales of short-term investments | 2,496 | | | 2,423 | | | 2,386 | | | |
| 22 | Investments in reverse repurchase agreements | - | | | - | | | 150 | | | |
| 23 | Additions to property, plant and equipment | (1,028 | ) | | (1,105 | ) | | (1,143 | ) | | |
| 24 | Disposals of property, plant and equipment | 3 | | | 13 | | | 10 | | | |
| 25 | Other investing activities | (25 | ) | | (34 | ) | | 6 | | | |
| 26 | Cash provided (used) by investing activities | 276 | | | (1,008 | ) | | (1,034 | ) | | |
| 27 | Cash used by financing activities: | | | | | | | | | | |
| 28 | Net proceeds from long-term debt issuance | - | | | 1,482 | | | 981 | | | |
| 29 | Long-term debt payments, including current portion | (6 | ) | | (44 | ) | | (106 | ) | | |
| 30 | Increase (decrease) in notes payable | 13 | | | 327 | | | (67 | ) | | |
| 31 | Payments on capital lease and other financing obligations | (23 | ) | | (17 | ) | | (7 | ) | | |
| 32 | Proceeds from exercise of stock options and other stock issuances | 733 | | | 489 | | | 507 | | | |
| 33 | Repurchase of common stock | (4,254 | ) | | (3,223 | ) | | (3,238 | ) | | |
| 34 | Dividends - common and preferred | (1,243 | ) | | (1,133 | ) | | (1,022 | ) | | |
| 35 | Tax payments for net share settlement of equity awards | (55 | ) | | (29 | ) | | (22 | ) | | |
| 36 | Cash used by financing activities | (4,835 | ) | | (2,148 | ) | | (2,974 | ) | | |
| 37 | Effect of exchange rate changes on cash and equivalents | 45 | | | (20 | ) | | (105 | ) | | |
| 38 | Net increase (decrease) in cash and equivalents | 441 | | | 670 | | | (714 | ) | | |
| 39 | Cash and equivalents, beginning of year | 3,808 | | | 3,138 | | | 3,852 | | | |
| 40 | CASH AND EQUIVALENTS, END OF YEAR | $ | 4,249 | | | $ | 3,808 | | | $ | 3,138 |
| 41 | Supplemental disclosure of cash flow information: | | | | | | | | | | |
| 42 | Cash paid during the year for: | | | | | | | | | | |
| 43 | Interest, net of capitalized interest | $ | 125 | | | $ | 98 | | | $ | 70 |
| 44 | Income taxes | 529 | | | 703 | | | 748 | | | |
| 45 | Non-cash additions to property, plant and equipment | 294 | | | 266 | | | 252 | | | |
| 46 | Dividends declared and not paid | 320 | | | 300 | | | 271 | | | |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
| | |
|---:|:-------------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Cash Flows |
| | | | | | | | | | | | |
|---:|:-----------------------------------------------------------------------------------------------------------|:-------------------|:------|:-----|:-------|:-----|:------|:-------|:---|:---|:------|
| 2 | | Year Ended May 31, | | | | | | | | | |
| 3 | (In millions) | 2018 | | 2017 | | 2016 | | | | | |
| 4 | Cash provided by operations: | | | | | | | | | | |
| 5 | Net income | $ | 1,933 | | | $ | 4,240 | | | $ | 3,760 |
| 6 | Adjustments to reconcile net income to net cash provided by operations: | | | | | | | | | | |
| 7 | Depreciation | 747 | | | 706 | | | 649 | | | |
| 8 | Deferred income taxes | 647 | | | (273 | ) | | (80 | ) | | |
| 9 | Stock-based compensation | 218 | | | 215 | | | 236 | | | |
| 10 | Amortization and other | 27 | | | 10 | | | 13 | | | |
| 11 | Net foreign currency adjustments | (99 | ) | | (117 | ) | | 98 | | | |
| 12 | Changes in certain working capital components and other assets and liabilities: | | | | | | | | | | |
| 13 | Decrease (increase) in accounts receivable | 187 | | | (426 | ) | | 60 | | | |
| 14 | (Increase) in inventories | (255 | ) | | (231 | ) | | (590 | ) | | |
| 15 | Decrease (increase) in prepaid expenses and other current and non-current assets | 35 | | | (120 | ) | | (161 | ) | | |
| 16 | Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,515 | | | (158 | ) | | (586 | ) | | |
| 17 | Cash provided by operations | 4,955 | | | 3,846 | | | 3,399 | | | |
| 18 | Cash provided (used) by investing activities: | | | | | | | | | | |
| 19 | Purchases of short-term investments | (4,783 | ) | | (5,928 | ) | | (5,367 | ) | | |
| 20 | Maturities of short-term investments | 3,613 | | | 3,623 | | | 2,924 | | | |
| 21 | Sales of short-term investments | 2,496 | | | 2,423 | | | 2,386 | | | |
| 22 | Investments in reverse repurchase agreements | - | | | - | | | 150 | | | |
| 23 | Additions to property, plant and equipment | (1,028 | ) | | (1,105 | ) | | (1,143 | ) | | |
| 24 | Disposals of property, plant and equipment | 3 | | | 13 | | | 10 | | | |
| 25 | Other investing activities | (25 | ) | | (34 | ) | | 6 | | | |
| 26 | Cash provided (used) by investing activities | 276 | | | (1,008 | ) | | (1,034 | ) | | |
| 27 | Cash used by financing activities: | | | | | | | | | | |
| 28 | Net proceeds from long-term debt issuance | - | | | 1,482 | | | 981 | | | |
| 29 | Long-term debt payments, including current portion | (6 | ) | | (44 | ) | | (106 | ) | | |
| 30 | Increase (decrease) in notes payable | 13 | | | 327 | | | (67 | ) | | |
| 31 | Payments on capital lease and other financing obligations | (23 | ) | | (17 | ) | | (7 | ) | | |
| 32 | Proceeds from exercise of stock options and other stock issuances | 733 | | | 489 | | | 507 | | | |
| 33 | Repurchase of common stock | (4,254 | ) | | (3,223 | ) | | (3,238 | ) | | |
| 34 | Dividends - common and preferred | (1,243 | ) | | (1,133 | ) | | (1,022 | ) | | |
| 35 | Tax payments for net share settlement of equity awards | (55 | ) | | (29 | ) | | (22 | ) | | |
| 36 | Cash used by financing activities | (4,835 | ) | | (2,148 | ) | | (2,974 | ) | | |
| 37 | Effect of exchange rate changes on cash and equivalents | 45 | | | (20 | ) | | (105 | ) | | |
| 38 | Net increase (decrease) in cash and equivalents | 441 | | | 670 | | | (714 | ) | | |
| 39 | Cash and equivalents, beginning of year | 3,808 | | | 3,138 | | | 3,852 | | | |
| 40 | CASH AND EQUIVALENTS, END OF YEAR | $ | 4,249 | | | $ | 3,808 | | | $ | 3,138 |
| 41 | Supplemental disclosure of cash flow information: | | | | | | | | | | |
| 42 | Cash paid during the year for: | | | | | | | | | | |
| 43 | Interest, net of capitalized interest | $ | 125 | | | $ | 98 | | | $ | 70 |
| 44 | Income taxes | 529 | | | 703 | | | 748 | | | |
| 45 | Non-cash additions to property, plant and equipment | 294 | | | 266 | | | 252 | | | |
| 46 | Dividends declared and not paid | 320 | | | 300 | | | 271 | | | |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Cash Flows</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net income</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Depreciation</td><td> </td><td colspan="2">747</td><td></td><td> </td><td colspan="2">706</td><td></td><td> </td><td colspan="2">649</td><td></td></tr><tr><td>Deferred income taxes</td><td> </td><td colspan="2">647</td><td></td><td> </td><td colspan="2">(273</td><td>)</td><td> </td><td colspan="2">(80</td><td>)</td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Amortization and other</td><td> </td><td colspan="2">27</td><td></td><td> </td><td colspan="2">10</td><td></td><td> </td><td colspan="2">13</td><td></td></tr><tr><td>Net foreign currency adjustments</td><td> </td><td colspan="2">(99</td><td>)</td><td> </td><td colspan="2">(117</td><td>)</td><td> </td><td colspan="2">98</td><td></td></tr><tr><td>Changes in certain working capital components and other assets and liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Decrease (increase) in accounts receivable</td><td> </td><td colspan="2">187</td><td></td><td> </td><td colspan="2">(426</td><td>)</td><td> </td><td colspan="2">60</td><td></td></tr><tr><td>(Increase) in inventories</td><td> </td><td colspan="2">(255</td><td>)</td><td> </td><td colspan="2">(231</td><td>)</td><td> </td><td colspan="2">(590</td><td>)</td></tr><tr><td>Decrease (increase) in prepaid expenses and other current and non-current assets</td><td> </td><td colspan="2">35</td><td></td><td> </td><td colspan="2">(120</td><td>)</td><td> </td><td colspan="2">(161</td><td>)</td></tr><tr><td>Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities</td><td> </td><td colspan="2">1,515</td><td></td><td> </td><td colspan="2">(158</td><td>)</td><td> </td><td colspan="2">(586</td><td>)</td></tr><tr><td>Cash provided by operations</td><td> </td><td colspan="2">4,955</td><td></td><td> </td><td colspan="2">3,846</td><td></td><td> </td><td colspan="2">3,399</td><td></td></tr><tr><td>Cash provided (used) by investing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Purchases of short-term investments</td><td> </td><td colspan="2">(4,783</td><td>)</td><td> </td><td colspan="2">(5,928</td><td>)</td><td> </td><td colspan="2">(5,367</td><td>)</td></tr><tr><td>Maturities of short-term investments</td><td> </td><td colspan="2">3,613</td><td></td><td> </td><td colspan="2">3,623</td><td></td><td> </td><td colspan="2">2,924</td><td></td></tr><tr><td>Sales of short-term investments</td><td> </td><td colspan="2">2,496</td><td></td><td> </td><td colspan="2">2,423</td><td></td><td> </td><td colspan="2">2,386</td><td></td></tr><tr><td>Investments in reverse repurchase agreements</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">150</td><td></td></tr><tr><td>Additions to property, plant and equipment</td><td> </td><td colspan="2">(1,028</td><td>)</td><td> </td><td colspan="2">(1,105</td><td>)</td><td> </td><td colspan="2">(1,143</td><td>)</td></tr><tr><td>Disposals of property, plant and equipment</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">10</td><td></td></tr><tr><td>Other investing activities</td><td> </td><td colspan="2">(25</td><td>)</td><td> </td><td colspan="2">(34</td><td>)</td><td> </td><td colspan="2">6</td><td></td></tr><tr><td>Cash provided (used) by investing activities</td><td> </td><td colspan="2">276</td><td></td><td> </td><td colspan="2">(1,008</td><td>)</td><td> </td><td colspan="2">(1,034</td><td>)</td></tr><tr><td>Cash used by financing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net proceeds from long-term debt issuance</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">1,482</td><td></td><td> </td><td colspan="2">981</td><td></td></tr><tr><td>Long-term debt payments, including current portion</td><td> </td><td colspan="2">(6</td><td>)</td><td> </td><td colspan="2">(44</td><td>)</td><td> </td><td colspan="2">(106</td><td>)</td></tr><tr><td>Increase (decrease) in notes payable</td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">327</td><td></td><td> </td><td colspan="2">(67</td><td>)</td></tr><tr><td>Payments on capital lease and other financing obligations</td><td> </td><td colspan="2">(23</td><td>)</td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">(7</td><td>)</td></tr><tr><td>Proceeds from exercise of stock options and other stock issuances</td><td> </td><td colspan="2">733</td><td></td><td> </td><td colspan="2">489</td><td></td><td> </td><td colspan="2">507</td><td></td></tr><tr><td>Repurchase of common stock</td><td> </td><td colspan="2">(4,254</td><td>)</td><td> </td><td colspan="2">(3,223</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends - common and preferred</td><td> </td><td colspan="2">(1,243</td><td>)</td><td> </td><td colspan="2">(1,133</td><td>)</td><td> </td><td colspan="2">(1,022</td><td>)</td></tr><tr><td>Tax payments for net share settlement of equity awards</td><td> </td><td colspan="2">(55</td><td>)</td><td> </td><td colspan="2">(29</td><td>)</td><td> </td><td colspan="2">(22</td><td>)</td></tr><tr><td>Cash used by financing activities</td><td> </td><td colspan="2">(4,835</td><td>)</td><td> </td><td colspan="2">(2,148</td><td>)</td><td> </td><td colspan="2">(2,974</td><td>)</td></tr><tr><td>Effect of exchange rate changes on cash and equivalents</td><td> </td><td colspan="2">45</td><td></td><td> </td><td colspan="2">(20</td><td>)</td><td> </td><td colspan="2">(105</td><td>)</td></tr><tr><td>Net increase (decrease) in cash and equivalents</td><td> </td><td colspan="2">441</td><td></td><td> </td><td colspan="2">670</td><td></td><td> </td><td colspan="2">(714</td><td>)</td></tr><tr><td>Cash and equivalents, beginning of year</td><td> </td><td colspan="2">3,808</td><td></td><td> </td><td colspan="2">3,138</td><td></td><td> </td><td colspan="2">3,852</td><td></td></tr><tr><td>CASH AND EQUIVALENTS, END OF YEAR</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td><td> </td><td>$</td><td>3,138</td><td></td></tr><tr><td>Supplemental disclosure of cash flow information:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash paid during the year for:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Interest, net of capitalized interest</td><td> </td><td>$</td><td>125</td><td></td><td> </td><td>$</td><td>98</td><td></td><td> </td><td>$</td><td>70</td><td></td></tr><tr><td>Income taxes</td><td> </td><td colspan="2">529</td><td></td><td> </td><td colspan="2">703</td><td></td><td> </td><td colspan="2">748</td><td></td></tr><tr><td>Non-cash additions to property, plant and equipment</td><td> </td><td colspan="2">294</td><td></td><td> </td><td colspan="2">266</td><td></td><td> </td><td colspan="2">252</td><td></td></tr><tr><td>Dividends declared and not paid</td><td> </td><td colspan="2">320</td><td></td><td> </td><td colspan="2">300</td><td></td><td> </td><td colspan="2">271</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
47
|
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Cash Flows</td></tr></table>
<table><tr><td colspan="13"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="11">Year Ended May 31,</td></tr><tr><td>(In millions)</td><td> </td><td colspan="3">2018</td><td> </td><td colspan="3">2017</td><td> </td><td colspan="3">2016</td></tr><tr><td>Cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net income</td><td> </td><td>$</td><td>1,933</td><td></td><td> </td><td>$</td><td>4,240</td><td></td><td> </td><td>$</td><td>3,760</td><td></td></tr><tr><td>Adjustments to reconcile net income to net cash provided by operations:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Depreciation</td><td> </td><td colspan="2">747</td><td></td><td> </td><td colspan="2">706</td><td></td><td> </td><td colspan="2">649</td><td></td></tr><tr><td>Deferred income taxes</td><td> </td><td colspan="2">647</td><td></td><td> </td><td colspan="2">(273</td><td>)</td><td> </td><td colspan="2">(80</td><td>)</td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Amortization and other</td><td> </td><td colspan="2">27</td><td></td><td> </td><td colspan="2">10</td><td></td><td> </td><td colspan="2">13</td><td></td></tr><tr><td>Net foreign currency adjustments</td><td> </td><td colspan="2">(99</td><td>)</td><td> </td><td colspan="2">(117</td><td>)</td><td> </td><td colspan="2">98</td><td></td></tr><tr><td>Changes in certain working capital components and other assets and liabilities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Decrease (increase) in accounts receivable</td><td> </td><td colspan="2">187</td><td></td><td> </td><td colspan="2">(426</td><td>)</td><td> </td><td colspan="2">60</td><td></td></tr><tr><td>(Increase) in inventories</td><td> </td><td colspan="2">(255</td><td>)</td><td> </td><td colspan="2">(231</td><td>)</td><td> </td><td colspan="2">(590</td><td>)</td></tr><tr><td>Decrease (increase) in prepaid expenses and other current and non-current assets</td><td> </td><td colspan="2">35</td><td></td><td> </td><td colspan="2">(120</td><td>)</td><td> </td><td colspan="2">(161</td><td>)</td></tr><tr><td>Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities</td><td> </td><td colspan="2">1,515</td><td></td><td> </td><td colspan="2">(158</td><td>)</td><td> </td><td colspan="2">(586</td><td>)</td></tr><tr><td>Cash provided by operations</td><td> </td><td colspan="2">4,955</td><td></td><td> </td><td colspan="2">3,846</td><td></td><td> </td><td colspan="2">3,399</td><td></td></tr><tr><td>Cash provided (used) by investing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Purchases of short-term investments</td><td> </td><td colspan="2">(4,783</td><td>)</td><td> </td><td colspan="2">(5,928</td><td>)</td><td> </td><td colspan="2">(5,367</td><td>)</td></tr><tr><td>Maturities of short-term investments</td><td> </td><td colspan="2">3,613</td><td></td><td> </td><td colspan="2">3,623</td><td></td><td> </td><td colspan="2">2,924</td><td></td></tr><tr><td>Sales of short-term investments</td><td> </td><td colspan="2">2,496</td><td></td><td> </td><td colspan="2">2,423</td><td></td><td> </td><td colspan="2">2,386</td><td></td></tr><tr><td>Investments in reverse repurchase agreements</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">150</td><td></td></tr><tr><td>Additions to property, plant and equipment</td><td> </td><td colspan="2">(1,028</td><td>)</td><td> </td><td colspan="2">(1,105</td><td>)</td><td> </td><td colspan="2">(1,143</td><td>)</td></tr><tr><td>Disposals of property, plant and equipment</td><td> </td><td colspan="2">3</td><td></td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">10</td><td></td></tr><tr><td>Other investing activities</td><td> </td><td colspan="2">(25</td><td>)</td><td> </td><td colspan="2">(34</td><td>)</td><td> </td><td colspan="2">6</td><td></td></tr><tr><td>Cash provided (used) by investing activities</td><td> </td><td colspan="2">276</td><td></td><td> </td><td colspan="2">(1,008</td><td>)</td><td> </td><td colspan="2">(1,034</td><td>)</td></tr><tr><td>Cash used by financing activities:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Net proceeds from long-term debt issuance</td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="2">1,482</td><td></td><td> </td><td colspan="2">981</td><td></td></tr><tr><td>Long-term debt payments, including current portion</td><td> </td><td colspan="2">(6</td><td>)</td><td> </td><td colspan="2">(44</td><td>)</td><td> </td><td colspan="2">(106</td><td>)</td></tr><tr><td>Increase (decrease) in notes payable</td><td> </td><td colspan="2">13</td><td></td><td> </td><td colspan="2">327</td><td></td><td> </td><td colspan="2">(67</td><td>)</td></tr><tr><td>Payments on capital lease and other financing obligations</td><td> </td><td colspan="2">(23</td><td>)</td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">(7</td><td>)</td></tr><tr><td>Proceeds from exercise of stock options and other stock issuances</td><td> </td><td colspan="2">733</td><td></td><td> </td><td colspan="2">489</td><td></td><td> </td><td colspan="2">507</td><td></td></tr><tr><td>Repurchase of common stock</td><td> </td><td colspan="2">(4,254</td><td>)</td><td> </td><td colspan="2">(3,223</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends - common and preferred</td><td> </td><td colspan="2">(1,243</td><td>)</td><td> </td><td colspan="2">(1,133</td><td>)</td><td> </td><td colspan="2">(1,022</td><td>)</td></tr><tr><td>Tax payments for net share settlement of equity awards</td><td> </td><td colspan="2">(55</td><td>)</td><td> </td><td colspan="2">(29</td><td>)</td><td> </td><td colspan="2">(22</td><td>)</td></tr><tr><td>Cash used by financing activities</td><td> </td><td colspan="2">(4,835</td><td>)</td><td> </td><td colspan="2">(2,148</td><td>)</td><td> </td><td colspan="2">(2,974</td><td>)</td></tr><tr><td>Effect of exchange rate changes on cash and equivalents</td><td> </td><td colspan="2">45</td><td></td><td> </td><td colspan="2">(20</td><td>)</td><td> </td><td colspan="2">(105</td><td>)</td></tr><tr><td>Net increase (decrease) in cash and equivalents</td><td> </td><td colspan="2">441</td><td></td><td> </td><td colspan="2">670</td><td></td><td> </td><td colspan="2">(714</td><td>)</td></tr><tr><td>Cash and equivalents, beginning of year</td><td> </td><td colspan="2">3,808</td><td></td><td> </td><td colspan="2">3,138</td><td></td><td> </td><td colspan="2">3,852</td><td></td></tr><tr><td>CASH AND EQUIVALENTS, END OF YEAR</td><td> </td><td>$</td><td>4,249</td><td></td><td> </td><td>$</td><td>3,808</td><td></td><td> </td><td>$</td><td>3,138</td><td></td></tr><tr><td>Supplemental disclosure of cash flow information:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Cash paid during the year for:</td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td></tr><tr><td>Interest, net of capitalized interest</td><td> </td><td>$</td><td>125</td><td></td><td> </td><td>$</td><td>98</td><td></td><td> </td><td>$</td><td>70</td><td></td></tr><tr><td>Income taxes</td><td> </td><td colspan="2">529</td><td></td><td> </td><td colspan="2">703</td><td></td><td> </td><td colspan="2">748</td><td></td></tr><tr><td>Non-cash additions to property, plant and equipment</td><td> </td><td colspan="2">294</td><td></td><td> </td><td colspan="2">266</td><td></td><td> </td><td colspan="2">252</td><td></td></tr><tr><td>Dividends declared and not paid</td><td> </td><td colspan="2">320</td><td></td><td> </td><td colspan="2">300</td><td></td><td> </td><td colspan="2">271</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
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q_Ra188
|
What is the percentage change in dividends paid on common and preferred stock from 2017 to 2018?
|
Dividends Paid on Common and Preferred Stock 2018: $1,265 million
Dividends Paid on Common and Preferred Stock 2017: $1,159 million
Formula:
Percentage Change in Dividends = ((Dividends 2018 - Dividends 2017) / Dividends 2017) × 100
Calculation:
Percentage Change = ((1,265 - 1,159) / 1,159) × 100
Percentage Change = (106 / 1,159) × 100 ≈ 9.14%
Answer:
Dividends paid on common and preferred stock increased by approximately 9.14% from 2017 to 2018. This reflects Nike's strategy to return more value to shareholders through a higher dividend payout, consistent with its commitment to shareholder returns.
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Ratio
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48
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0000320187-18-000142
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ITEM 8. Financial Statements and Supplementary Data
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NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 48:
| | |
|---:|:-----------------------------------------------------------|
| 2 | NIKE, Inc. Consolidated Statements of Shareholders' Equity |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|---:|:----------------------------------------------------------------------------------|:-------------|:---|:-------------------------------|:---|:------------------------------------|:---|:-----------------|:------|:------|:-----|:-----|:---|:-------|:----|:-------|:-------|:----|:-------|:---|:------|:---|:---|:------|:---|:-------|
| 2 | | Common Stock | | Capital inExcessof StatedValue | | AccumulatedOtherComprehensiveIncome | | RetainedEarnings | | Total | | | | | | | | | | | | | | | | |
| 3 | | Class A | | Class B | | | | | | | | | | | | | | | | | | | | | | |
| 4 | (In millions, except per share data) | Shares | | Amount | | Shares | | Amount | | | | | | | | | | | | | | | | | | |
| 5 | Balance at May 31, 2015 | 355 | | | $ | - | | | 1,357 | | | $ | 3 | | | $ | 4,165 | | | $ | 1,246 | | $ | 7,293 | $ | 12,707 |
| 6 | Stock options exercised | | | | | 22 | | | | | 680 | | | | | | | 680 | | | | | | | | |
| 7 | Conversion to Class B Common Stock | (2 | ) | | - | | | 2 | | | - | | | | | | | | | - | | | | | | |
| 8 | Repurchase of Class B Common Stock | | | | | (55 | ) | | | | (148 | ) | | | | (3,090 | ) | | (3,238 | ) | | | | | | |
| 9 | Dividends on common stock ($0.62 per share) and preferred stock ($0.10 per share) | | | | | | | | | | | | | (1,053 | ) | | (1,053 | ) | | | | | | | | |
| 10 | Issuance of shares to employees, net of shares withheld for employee taxes | | | | | 3 | | | | | 105 | | | | | (11 | ) | | 94 | | | | | | | |
| 11 | Stock-based compensation | | | | | | | | | 236 | | | | | | | 236 | | | | | | | | | |
| 12 | Net income | | | | | | | | | | | | | 3,760 | | | 3,760 | | | | | | | | | |
| 13 | Other comprehensive income (loss) | | | | | | | | | | | (928 | ) | | | | (928 | ) | | | | | | | | |
| 14 | Balance at May 31, 2016 | 353 | | | $ | - | | | 1,329 | | | $ | 3 | | | $ | 5,038 | | | $ | 318 | | $ | 6,899 | $ | 12,258 |
| 15 | Stock options exercised | | | | | 17 | | | | | 525 | | | | | | | 525 | | | | | | | | |
| 16 | Conversion to Class B Common Stock | (24 | ) | | - | | | 24 | | | - | | | | | | | | | - | | | | | | |
| 17 | Repurchase of Class B Common Stock | | | | | (60 | ) | | | | (189 | ) | | | | (3,060 | ) | | (3,249 | ) | | | | | | |
| 18 | Dividends on common stock ($0.70 per share) and preferred stock ($0.10 per share) | | | | | | | | | | | | | (1,159 | ) | | (1,159 | ) | | | | | | | | |
| 19 | Issuance of shares to employees, net of shares withheld for employee taxes | | | | | 4 | | | | | 121 | | | | | (13 | ) | | 108 | | | | | | | |
| 20 | Stock-based compensation | | | | | | | | | 215 | | | | | | | 215 | | | | | | | | | |
| 21 | Net income | | | | | | | | | | | | | 4,240 | | | 4,240 | | | | | | | | | |
| 22 | Other comprehensive income (loss) | | | | | | | | | | | (531 | ) | | | | (531 | ) | | | | | | | | |
| 23 | Balance at May 31, 2017 | 329 | | | $ | - | | | 1,314 | | | $ | 3 | | | $ | 5,710 | | | $ | (213 | ) | $ | 6,907 | $ | 12,407 |
| 24 | Stock options exercised | | | | | 24 | | | | | 600 | | | | | | | 600 | | | | | | | | |
| 25 | Conversion to Class B Common Stock | - | | | - | | | - | | | - | | | | | | | | | - | | | | | | |
| 26 | Repurchase of Class B Common Stock | | | | | (70 | ) | | | | (254 | ) | | | | (4,013 | ) | | (4,267 | ) | | | | | | |
| 27 | Dividends on common stock ($0.78 per share) and preferred stock ($0.10 per share) | | | | | | | | | | | | | (1,265 | ) | | (1,265 | ) | | | | | | | | |
| 28 | Issuance of shares to employees, net of shares withheld for employee taxes | | | | | 4 | | | | | 110 | | | | | (28 | ) | | 82 | | | | | | | |
| 29 | Stock-based compensation | | | | | | | | | 218 | | | | | | | 218 | | | | | | | | | |
| 30 | Net income | | | | | | | | | | | | | 1,933 | | | 1,933 | | | | | | | | | |
| 31 | Other comprehensive income (loss) | | | | | | | | | | | 104 | | | | | 104 | | | | | | | | | |
| 32 | Reclassifications to retained earnings in accordance with ASU 2018-02 | | | | | | | | | | | 17 | | | (17 | ) | | - | | | | | | | | |
| 33 | Balance at May 31, 2018 | 329 | | | $ | - | | | 1,272 | | | $ | 3 | | | $ | 6,384 | | | $ | (92 | ) | $ | 3,517 | $ | 9,812 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
48
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| | |
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| 2 | NIKE, Inc. Consolidated Statements of Shareholders' Equity |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|---:|:----------------------------------------------------------------------------------|:-------------|:---|:-------------------------------|:---|:------------------------------------|:---|:-----------------|:------|:------|:-----|:-----|:---|:-------|:----|:-------|:-------|:----|:-------|:---|:------|:---|:---|:------|:---|:-------|
| 2 | | Common Stock | | Capital inExcessof StatedValue | | AccumulatedOtherComprehensiveIncome | | RetainedEarnings | | Total | | | | | | | | | | | | | | | | |
| 3 | | Class A | | Class B | | | | | | | | | | | | | | | | | | | | | | |
| 4 | (In millions, except per share data) | Shares | | Amount | | Shares | | Amount | | | | | | | | | | | | | | | | | | |
| 5 | Balance at May 31, 2015 | 355 | | | $ | - | | | 1,357 | | | $ | 3 | | | $ | 4,165 | | | $ | 1,246 | | $ | 7,293 | $ | 12,707 |
| 6 | Stock options exercised | | | | | 22 | | | | | 680 | | | | | | | 680 | | | | | | | | |
| 7 | Conversion to Class B Common Stock | (2 | ) | | - | | | 2 | | | - | | | | | | | | | - | | | | | | |
| 8 | Repurchase of Class B Common Stock | | | | | (55 | ) | | | | (148 | ) | | | | (3,090 | ) | | (3,238 | ) | | | | | | |
| 9 | Dividends on common stock ($0.62 per share) and preferred stock ($0.10 per share) | | | | | | | | | | | | | (1,053 | ) | | (1,053 | ) | | | | | | | | |
| 10 | Issuance of shares to employees, net of shares withheld for employee taxes | | | | | 3 | | | | | 105 | | | | | (11 | ) | | 94 | | | | | | | |
| 11 | Stock-based compensation | | | | | | | | | 236 | | | | | | | 236 | | | | | | | | | |
| 12 | Net income | | | | | | | | | | | | | 3,760 | | | 3,760 | | | | | | | | | |
| 13 | Other comprehensive income (loss) | | | | | | | | | | | (928 | ) | | | | (928 | ) | | | | | | | | |
| 14 | Balance at May 31, 2016 | 353 | | | $ | - | | | 1,329 | | | $ | 3 | | | $ | 5,038 | | | $ | 318 | | $ | 6,899 | $ | 12,258 |
| 15 | Stock options exercised | | | | | 17 | | | | | 525 | | | | | | | 525 | | | | | | | | |
| 16 | Conversion to Class B Common Stock | (24 | ) | | - | | | 24 | | | - | | | | | | | | | - | | | | | | |
| 17 | Repurchase of Class B Common Stock | | | | | (60 | ) | | | | (189 | ) | | | | (3,060 | ) | | (3,249 | ) | | | | | | |
| 18 | Dividends on common stock ($0.70 per share) and preferred stock ($0.10 per share) | | | | | | | | | | | | | (1,159 | ) | | (1,159 | ) | | | | | | | | |
| 19 | Issuance of shares to employees, net of shares withheld for employee taxes | | | | | 4 | | | | | 121 | | | | | (13 | ) | | 108 | | | | | | | |
| 20 | Stock-based compensation | | | | | | | | | 215 | | | | | | | 215 | | | | | | | | | |
| 21 | Net income | | | | | | | | | | | | | 4,240 | | | 4,240 | | | | | | | | | |
| 22 | Other comprehensive income (loss) | | | | | | | | | | | (531 | ) | | | | (531 | ) | | | | | | | | |
| 23 | Balance at May 31, 2017 | 329 | | | $ | - | | | 1,314 | | | $ | 3 | | | $ | 5,710 | | | $ | (213 | ) | $ | 6,907 | $ | 12,407 |
| 24 | Stock options exercised | | | | | 24 | | | | | 600 | | | | | | | 600 | | | | | | | | |
| 25 | Conversion to Class B Common Stock | - | | | - | | | - | | | - | | | | | | | | | - | | | | | | |
| 26 | Repurchase of Class B Common Stock | | | | | (70 | ) | | | | (254 | ) | | | | (4,013 | ) | | (4,267 | ) | | | | | | |
| 27 | Dividends on common stock ($0.78 per share) and preferred stock ($0.10 per share) | | | | | | | | | | | | | (1,265 | ) | | (1,265 | ) | | | | | | | | |
| 28 | Issuance of shares to employees, net of shares withheld for employee taxes | | | | | 4 | | | | | 110 | | | | | (28 | ) | | 82 | | | | | | | |
| 29 | Stock-based compensation | | | | | | | | | 218 | | | | | | | 218 | | | | | | | | | |
| 30 | Net income | | | | | | | | | | | | | 1,933 | | | 1,933 | | | | | | | | | |
| 31 | Other comprehensive income (loss) | | | | | | | | | | | 104 | | | | | 104 | | | | | | | | | |
| 32 | Reclassifications to retained earnings in accordance with ASU 2018-02 | | | | | | | | | | | 17 | | | (17 | ) | | - | | | | | | | | |
| 33 | Balance at May 31, 2018 | 329 | | | $ | - | | | 1,272 | | | $ | 3 | | | $ | 6,384 | | | $ | (92 | ) | $ | 3,517 | $ | 9,812 |
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
48
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NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 48:
<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Shareholders' Equity</td></tr></table>
<table><tr><td colspan="31"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="13">Common Stock</td><td> </td><td colspan="3" rowspan="3">Capital inExcessof StatedValue</td><td rowspan="3"> </td><td colspan="3" rowspan="3">AccumulatedOtherComprehensiveIncome</td><td rowspan="3"> </td><td colspan="3" rowspan="3">RetainedEarnings</td><td rowspan="3"> </td><td colspan="3" rowspan="3">Total</td></tr><tr><td> </td><td> </td><td colspan="6">Class A</td><td> </td><td colspan="6">Class B</td><td> </td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="2">Shares</td><td> </td><td colspan="3">Amount</td><td> </td><td colspan="2">Shares</td><td> </td><td colspan="3">Amount</td><td> </td></tr><tr><td>Balance at May 31, 2015</td><td> </td><td>355</td><td></td><td> </td><td>$</td><td>-</td><td></td><td> </td><td>1,357</td><td></td><td> </td><td>$</td><td>3</td><td></td><td> </td><td>$</td><td>4,165</td><td></td><td> </td><td>$</td><td>1,246</td><td></td><td> </td><td>$</td><td>7,293</td><td></td><td> </td><td>$</td><td>12,707</td><td></td></tr><tr><td>Stock options exercised</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>22</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">680</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">680</td><td></td></tr><tr><td>Conversion to Class B Common Stock</td><td> </td><td>(2</td><td>)</td><td> </td><td colspan="2">-</td><td></td><td> </td><td>2</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Repurchase of Class B Common Stock</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>(55</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(148</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(3,090</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends on common stock ($0.62 per share) and preferred stock ($0.10 per share)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(1,053</td><td>)</td><td> </td><td colspan="2">(1,053</td><td>)</td></tr><tr><td>Issuance of shares to employees, net of shares withheld for employee taxes</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>3</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">105</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(11</td><td>)</td><td> </td><td colspan="2">94</td><td></td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">236</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Net income</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">3,760</td><td></td><td> </td><td colspan="2">3,760</td><td></td></tr><tr><td>Other comprehensive income (loss)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(928</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(928</td><td>)</td></tr><tr><td>Balance at May 31, 2016</td><td> </td><td>353</td><td></td><td> </td><td>$</td><td>-</td><td></td><td> </td><td>1,329</td><td></td><td> </td><td>$</td><td>3</td><td></td><td> </td><td>$</td><td>5,038</td><td></td><td> </td><td>$</td><td>318</td><td></td><td> </td><td>$</td><td>6,899</td><td></td><td> </td><td>$</td><td>12,258</td><td></td></tr><tr><td>Stock options exercised</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>17</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">525</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">525</td><td></td></tr><tr><td>Conversion to Class B Common Stock</td><td> </td><td>(24</td><td>)</td><td> </td><td colspan="2">-</td><td></td><td> </td><td>24</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Repurchase of Class B Common Stock</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>(60</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(189</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(3,060</td><td>)</td><td> </td><td colspan="2">(3,249</td><td>)</td></tr><tr><td>Dividends on common stock ($0.70 per share) and preferred stock ($0.10 per share)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(1,159</td><td>)</td><td> </td><td colspan="2">(1,159</td><td>)</td></tr><tr><td>Issuance of shares to employees, net of shares withheld for employee taxes</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>4</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">121</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(13</td><td>)</td><td> </td><td colspan="2">108</td><td></td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">215</td><td></td></tr><tr><td>Net income</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">4,240</td><td></td><td> </td><td colspan="2">4,240</td><td></td></tr><tr><td>Other comprehensive income (loss)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(531</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(531</td><td>)</td></tr><tr><td>Balance at May 31, 2017</td><td> </td><td>329</td><td></td><td> </td><td>$</td><td>-</td><td></td><td> </td><td>1,314</td><td></td><td> </td><td>$</td><td>3</td><td></td><td> </td><td>$</td><td>5,710</td><td></td><td> </td><td>$</td><td>(213</td><td>)</td><td> </td><td>$</td><td>6,907</td><td></td><td> </td><td>$</td><td>12,407</td><td></td></tr><tr><td>Stock options exercised</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>24</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">600</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">600</td><td></td></tr><tr><td>Conversion to Class B Common Stock</td><td> </td><td>-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td>-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Repurchase of Class B Common Stock</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>(70</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(254</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(4,013</td><td>)</td><td> </td><td colspan="2">(4,267</td><td>)</td></tr><tr><td>Dividends on common stock ($0.78 per share) and preferred stock ($0.10 per share)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(1,265</td><td>)</td><td> </td><td colspan="2">(1,265</td><td>)</td></tr><tr><td>Issuance of shares to employees, net of shares withheld for employee taxes</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>4</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">110</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(28</td><td>)</td><td> </td><td colspan="2">82</td><td></td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">218</td><td></td></tr><tr><td>Net income</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">1,933</td><td></td><td> </td><td colspan="2">1,933</td><td></td></tr><tr><td>Other comprehensive income (loss)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">104</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">104</td><td></td></tr><tr><td>Reclassifications to retained earnings in accordance with ASU 2018-02</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">17</td><td></td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Balance at May 31, 2018</td><td> </td><td>329</td><td></td><td> </td><td>$</td><td>-</td><td></td><td> </td><td>1,272</td><td></td><td> </td><td>$</td><td>3</td><td></td><td> </td><td>$</td><td>6,384</td><td></td><td> </td><td>$</td><td>(92</td><td>)</td><td> </td><td>$</td><td>3,517</td><td></td><td> </td><td>$</td><td>9,812</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
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<table><tr><td colspan="1"></td></tr><tr><td></td></tr><tr><td>NIKE, Inc. Consolidated Statements of Shareholders' Equity</td></tr></table>
<table><tr><td colspan="31"></td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> </td><td> </td><td colspan="13">Common Stock</td><td> </td><td colspan="3" rowspan="3">Capital inExcessof StatedValue</td><td rowspan="3"> </td><td colspan="3" rowspan="3">AccumulatedOtherComprehensiveIncome</td><td rowspan="3"> </td><td colspan="3" rowspan="3">RetainedEarnings</td><td rowspan="3"> </td><td colspan="3" rowspan="3">Total</td></tr><tr><td> </td><td> </td><td colspan="6">Class A</td><td> </td><td colspan="6">Class B</td><td> </td></tr><tr><td>(In millions, except per share data)</td><td> </td><td colspan="2">Shares</td><td> </td><td colspan="3">Amount</td><td> </td><td colspan="2">Shares</td><td> </td><td colspan="3">Amount</td><td> </td></tr><tr><td>Balance at May 31, 2015</td><td> </td><td>355</td><td></td><td> </td><td>$</td><td>-</td><td></td><td> </td><td>1,357</td><td></td><td> </td><td>$</td><td>3</td><td></td><td> </td><td>$</td><td>4,165</td><td></td><td> </td><td>$</td><td>1,246</td><td></td><td> </td><td>$</td><td>7,293</td><td></td><td> </td><td>$</td><td>12,707</td><td></td></tr><tr><td>Stock options exercised</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>22</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">680</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">680</td><td></td></tr><tr><td>Conversion to Class B Common Stock</td><td> </td><td>(2</td><td>)</td><td> </td><td colspan="2">-</td><td></td><td> </td><td>2</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Repurchase of Class B Common Stock</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>(55</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(148</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(3,090</td><td>)</td><td> </td><td colspan="2">(3,238</td><td>)</td></tr><tr><td>Dividends on common stock ($0.62 per share) and preferred stock ($0.10 per share)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(1,053</td><td>)</td><td> </td><td colspan="2">(1,053</td><td>)</td></tr><tr><td>Issuance of shares to employees, net of shares withheld for employee taxes</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>3</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">105</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(11</td><td>)</td><td> </td><td colspan="2">94</td><td></td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">236</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">236</td><td></td></tr><tr><td>Net income</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">3,760</td><td></td><td> </td><td colspan="2">3,760</td><td></td></tr><tr><td>Other comprehensive income (loss)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(928</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(928</td><td>)</td></tr><tr><td>Balance at May 31, 2016</td><td> </td><td>353</td><td></td><td> </td><td>$</td><td>-</td><td></td><td> </td><td>1,329</td><td></td><td> </td><td>$</td><td>3</td><td></td><td> </td><td>$</td><td>5,038</td><td></td><td> </td><td>$</td><td>318</td><td></td><td> </td><td>$</td><td>6,899</td><td></td><td> </td><td>$</td><td>12,258</td><td></td></tr><tr><td>Stock options exercised</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>17</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">525</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">525</td><td></td></tr><tr><td>Conversion to Class B Common Stock</td><td> </td><td>(24</td><td>)</td><td> </td><td colspan="2">-</td><td></td><td> </td><td>24</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Repurchase of Class B Common Stock</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>(60</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(189</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(3,060</td><td>)</td><td> </td><td colspan="2">(3,249</td><td>)</td></tr><tr><td>Dividends on common stock ($0.70 per share) and preferred stock ($0.10 per share)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(1,159</td><td>)</td><td> </td><td colspan="2">(1,159</td><td>)</td></tr><tr><td>Issuance of shares to employees, net of shares withheld for employee taxes</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>4</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">121</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(13</td><td>)</td><td> </td><td colspan="2">108</td><td></td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">215</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">215</td><td></td></tr><tr><td>Net income</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">4,240</td><td></td><td> </td><td colspan="2">4,240</td><td></td></tr><tr><td>Other comprehensive income (loss)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(531</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(531</td><td>)</td></tr><tr><td>Balance at May 31, 2017</td><td> </td><td>329</td><td></td><td> </td><td>$</td><td>-</td><td></td><td> </td><td>1,314</td><td></td><td> </td><td>$</td><td>3</td><td></td><td> </td><td>$</td><td>5,710</td><td></td><td> </td><td>$</td><td>(213</td><td>)</td><td> </td><td>$</td><td>6,907</td><td></td><td> </td><td>$</td><td>12,407</td><td></td></tr><tr><td>Stock options exercised</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>24</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">600</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">600</td><td></td></tr><tr><td>Conversion to Class B Common Stock</td><td> </td><td>-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td>-</td><td></td><td> </td><td colspan="2">-</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Repurchase of Class B Common Stock</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>(70</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(254</td><td>)</td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(4,013</td><td>)</td><td> </td><td colspan="2">(4,267</td><td>)</td></tr><tr><td>Dividends on common stock ($0.78 per share) and preferred stock ($0.10 per share)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(1,265</td><td>)</td><td> </td><td colspan="2">(1,265</td><td>)</td></tr><tr><td>Issuance of shares to employees, net of shares withheld for employee taxes</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td>4</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">110</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">(28</td><td>)</td><td> </td><td colspan="2">82</td><td></td></tr><tr><td>Stock-based compensation</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">218</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">218</td><td></td></tr><tr><td>Net income</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">1,933</td><td></td><td> </td><td colspan="2">1,933</td><td></td></tr><tr><td>Other comprehensive income (loss)</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">104</td><td></td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">104</td><td></td></tr><tr><td>Reclassifications to retained earnings in accordance with ASU 2018-02</td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="3"> </td><td> </td><td colspan="2">17</td><td></td><td> </td><td colspan="2">(17</td><td>)</td><td> </td><td colspan="2">-</td><td></td></tr><tr><td>Balance at May 31, 2018</td><td> </td><td>329</td><td></td><td> </td><td>$</td><td>-</td><td></td><td> </td><td>1,272</td><td></td><td> </td><td>$</td><td>3</td><td></td><td> </td><td>$</td><td>6,384</td><td></td><td> </td><td>$</td><td>(92</td><td>)</td><td> </td><td>$</td><td>3,517</td><td></td><td> </td><td>$</td><td>9,812</td><td></td></tr></table>
The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.
48
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q_Ri001
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What are the key operational risks identified in JPMorgan Chase's 10-K report, and how could these impact the company's financial performance?
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JPMorgan Chase's 10-K report identifies several operational risks, including risks related to cybersecurity, fraud, and data protection. The report highlights that the increasing sophistication of cyberattacks could lead to significant financial losses, legal liabilities, and reputational damage.
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Risk
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9, 20, 21, 22, 23, 24
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0000019617-24-000225
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Item 1A. Risk Factors.
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JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
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, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 20:
Part I
A reduction in JPMorgan Chase's credit ratings could curtail JPMorgan Chase's business activities and reduce its profitability in a number of ways, including:
•reducing its access to capital markets
•materially increasing its cost of issuing and servicing securities
•triggering additional collateral or funding requirements, and
•decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorgan Chase.
Any rating reduction could also increase the credit spreads charged by the market for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.
Capital
Maintaining the required level and composition of capital may impact JPMorgan Chase's ability to support business activities, meet evolving regulatory requirements and distribute capital to shareholders.
JPMorgan Chase is subject to various regulatory capital requirements, including leverage- and risk-based capital requirements. In addition, as a Global Systemically Important Bank ("GSIB"), JPMorgan Chase is required to hold additional capital buffers, including a GSIB surcharge, a Stress Capital Buffer ("SCB"), and a countercyclical buffer, each of which is reassessed at least annually. The amount of capital that JPMorgan Chase is required to hold in order to satisfy these leverage- and risk-based requirements could increase at any given time due to factors such as:
•actions by banking regulators, including changes in laws, rules, and regulations
•changes in the composition of JPMorgan Chase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and
•increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review, which could increase JPMorgan Chase's SCB.
Any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorgan Chase's shareholders, such as:
•reducing the amount of common stock that JPMorgan Chase is permitted to repurchase
•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorgan Chase's capital management strategy
•constraining the amount of dividends that may be paid on common stock, or
•curtailing JPMorgan Chase's business activities or operations.
Banking regulators have released a proposal to amend the Basel III risk-based capital framework which could significantly revise the risk-based capital requirements for banks with assets of $100 billion or more, including JPMorgan Chase. Uncertainty remains as to the manner in which these requirements will ultimately apply to JPMorgan Chase, however it is possible that these requirements could impact JPMorgan Chase's decisions concerning the business activities in which it will engage and its levels of capital distributions to its shareholders.
Operational
JPMorgan Chase's businesses are dependent on the effectiveness of internal and external operational systems.
JPMorgan Chase's businesses rely on the ability of JPMorgan Chase's financial, accounting, transaction execution, data processing and other operational systems to process, record, monitor and report a large number of transactions on a continuous basis, and to do so accurately, quickly and securely. In addition to proper design, installation, maintenance and training, the effective functioning of JPMorgan Chase's operational systems depends on:
•the quality of the information contained in those systems, as inaccurate, outdated, incomplete or corrupted data can significantly compromise the functionality or reliability of a particular system and other systems to which it transmits or from which it receives information, and
•JPMorgan Chase's ability to continue to maintain and upgrade its systems on a regular basis in line with technological advancements and evolving security requirements, carefully manage any changes introduced to its systems to maintain security and operational continuity, and adhere to all applicable legal and regulatory requirements, particularly in regions where JPMorgan Chase may face a heightened risk of malicious activity.
JPMorgan Chase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including degraded performance of data processing systems, data quality issues, disruptions of network connectivity and malfunctioning software, as well as disruptions in its ability to access and use the operational systems of third parties. These incidents have resulted in various negative effects for customers, including the inability to access account information or to make transactions through ATM, internet or mobile channels, the exfiltration of customer personal data, the recording of duplicative transactions and extended delays for customers requiring services from call
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, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 21: centers. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.
JPMorgan Chase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorgan Chase and its clients, customers and counterparties, including:
•JPMorgan Chase's ability to effectively maintain and upgrade systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions continue to increase
•attempts by third parties to defraud JPMorgan Chase or its clients and customers are increasing, evolving and becoming more complex, and during periods of market disruption or economic uncertainty, these attempts can be expected to increase in volume
•errors made by JPMorgan Chase or another market participant, whether inadvertent or malicious, could cause widespread system disruption
•failure to detect weaknesses or shortcomings in operational systems in a timely manner
•isolated or seemingly insignificant errors in operational systems could compound, or migrate to other systems over time, to become larger issues
•disruptions in operational systems or in the ability of systems to communicate with each other could be caused by failures in synchronization or encryption software, or degraded performance of microprocessors, and
•attempts by third parties to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.
JPMorgan Chase also depends on its ability to access and use the operational systems of third parties, including its custodians, vendors (such as those that provide data and cloud computing services, and security and technology services) and other market participants (such as clearing and payment systems, CCPs and securities exchanges), and external operational systems with which JPMorgan is connected, whether directly or indirectly, can be sources of operational risk to JPMorgan Chase. JPMorgan Chase may be exposed not only to a systems failure or cyber attack that may be experienced by a vendor or market infrastructure with which JPMorgan Chase is directly connected, but also to a systems breakdown or cyber attack involving another party to which such a vendor or infrastructure is connected. Similarly, retailers, payment systems and processors, data aggregators and other external parties with which JPMorgan Chase's customers do business can increase JPMorgan Chase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorgan Chase's security and control systems, including through the use of the internet,
cloud computing services, and personal smart phones and other mobile devices or services.
If an external party obtains access to customer account data on JPMorgan Chase's systems, whether authorized or unauthorized, and that party misappropriates that data, this could result in negative outcomes for JPMorgan Chase and its clients and customers, including a heightened risk of fraudulent transactions using JPMorgan Chase's systems, losses from fraudulent transactions and reputational harm arising from the perception that JPMorgan Chase's systems may not be secure.
As JPMorgan Chase's interconnectivity with clients, customers and other external parties continues to expand, JPMorgan Chase increasingly faces the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorgan Chase's clients or customers, or systems breakdowns or failures, security breaches or human error or misconduct affecting other external parties, may require JPMorgan Chase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of customers to their accounts. These actions can increase JPMorgan Chase's operational costs and potentially diminish customer satisfaction and confidence in JPMorgan Chase.
Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity, including due to a cyber attack, may cause industry-wide operational disruptions that could materially affect JPMorgan Chase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party could be exacerbated to the extent that the services provided by that system are used by a significant number or proportion of market participants.
The ineffectiveness, failure or other disruption of operational systems upon which JPMorgan Chase depends, including due to a systems malfunction, cyber incident or other systems failure, could result in unfavorable ripple effects in the financial markets and for JPMorgan Chase and its clients and customers, including:
•delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers
•impairment of JPMorgan Chase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement
•the possibility that funds transfers, capital markets trades or other transactions are executed erroneously
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, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 22:
Part I
•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers
•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption
•limitations on JPMorgan Chase's ability to collect data needed for its business and operations
•loss of confidence in the ability of JPMorgan Chase, or financial institutions generally, to protect against and withstand operational disruptions
•dissatisfaction among JPMorgan Chase's clients or customers
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
If JPMorgan Chase's operational systems, or those of acquired businesses or of external parties on which JPMorgan Chase's businesses depend, are unable to meet the requirements of JPMorgan Chase's businesses and operations or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorgan Chase could be materially and adversely affected.
A successful cyber attack affecting JPMorgan Chase could cause significant harm to JPMorgan Chase and its clients and customers.
JPMorgan Chase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets on a daily basis from various actors, including groups acting on behalf of hostile countries, cyber-criminals, "hacktivists" (i.e., individuals or groups that use technology to promote a political agenda or social change) and others. These cyber attacks can take many forms, including attempts to introduce computer viruses or malicious code, which are commonly referred to as "malware," into JPMorgan Chase's systems. These attacks are often designed to:
•obtain unauthorized access to confidential information belonging to JPMorgan Chase or its clients, customers, counterparties or employees
•manipulate data
•destroy data or systems with the aim of rendering services unavailable
•disrupt, sabotage or degrade service on JPMorgan Chase's systems
•steal money, or
•extort money through the use of so-called "ransomware."
JPMorgan Chase also experiences:
•distributed denial-of-service attacks intended to disrupt JPMorgan Chase's websites, including those that provide online banking and other services,
•a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and
•a high volume of disruptions to internet-based services used by JPMorgan Chase that are provided by third parties.
JPMorgan Chase has experienced security breaches due to cyber attacks in the past, and it is inevitable that additional breaches will occur in the future. Any such breach could result in serious and harmful consequences for JPMorgan Chase or its clients and customers.
A principal reason that JPMorgan Chase cannot provide absolute security against cyber attacks is that it may not always be possible to anticipate, detect or recognize threats to JPMorgan Chase's systems, or to implement effective preventive measures against all breaches because:
•the techniques used in cyber attacks evolve frequently and are increasingly sophisticated, and therefore may not be recognized until launched or may go undetected for extended periods
•cyber attacks can originate from a wide variety of sources, including JPMorgan Chase's own employees, cyber-criminals, hacktivists, well-resourced groups linked to terrorist organizations or hostile nation-states that can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally
•JPMorgan Chase does not have control over the cybersecurity of the systems of the large number of clients, customers, counterparties and third-party service providers with which it does business, and
•it is possible that a third party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems.
The risk of a security breach due to a cyber attack could increase in the future due to factors such as:
•JPMorgan Chase's ongoing expansion of its mobile banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services
•advances in artificial intelligence, such as the use of machine learning and generative artificial intelligence by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks
•the inability to maintain the security of information transmitted by JPMorgan Chase due to advances in quantum computing that may counteract or nullify existing information protections, and
•the acquisition and integration of new businesses.
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, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 23: In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
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or delivery platform, or adopts a new technology, it may not fully appreciate or identify new operational risks that may arise from those changes, including increased reliance on third party providers, or may fail to implement adequate controls to mitigate the risks associated with those changes. Any significant failure in this regard could diminish JPMorgan Chase's ability to operate one or more of its businesses or result in:
•potential liability to clients, counterparties and customers
•higher compliance and operational cost
•higher litigation costs, including regulatory fines, penalties and other sanctions
•damage to JPMorgan Chase's reputation
•impairment of JPMorgan Chase's liquidity
•regulatory intervention, or
•weaker competitive standing.
Any of the foregoing consequences could materially and adversely affect JPMorgan Chase's businesses and results of operations.
JPMorgan Chase's business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, and on the competence, trustworthiness, health and safety of employees.
JPMorgan Chase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorgan Chase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorgan Chase's businesses could be materially and adversely affected by:
•the ineffective implementation of business decisions
•any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls
•staffing shortages, particularly in tight labor markets
•the possibility that significant portions of JPMorgan Chase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorgan Chase's control such as natural disasters or an outbreak or escalation of hostilities
•a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or
•other negative outcomes caused by human error or misconduct by an employee of JPMorgan Chase or of another party on which JPMorgan Chase's businesses or operations rely.
JPMorgan Chase's operations could also be impaired if the measures taken by it or by governmental authorities to protect the health and safety of its employees are ineffective, or if any external party on which JPMorgan Chase relies fails to take appropriate and effective actions to protect the health and safety of its employees.
JPMorgan Chase faces substantial legal and operational risks in the processing and safeguarding of personal information.
JPMorgan Chase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., governing the privacy and protection of personal information of individuals. Governmental authorities around the world have adopted and are considering the adoption of numerous legislative and regulatory initiatives concerning privacy, data protection and security. Litigation or enforcement actions relating to these laws, rules and regulations could result in
fines or orders requiring that JPMorgan Chase change its data-related practices, which could have an adverse effect on JPMorgan Chase's ability to provide products and otherwise harm its business operations.
Implementing processes relating to JPMorgan Chase's collection, use, sharing and storage of personal information to comply with all applicable laws, rules and regulations in all relevant jurisdictions, including where the laws of different jurisdictions are in conflict, can:
•increase JPMorgan Chase's compliance and operating costs
•hinder the development of new products or services, curtail the offering of existing products or services, or affect how products and services are offered to clients and customers
•demand significant oversight by JPMorgan Chase's management, and
•require JPMorgan Chase to structure its businesses, operations and systems in less efficient ways.
Not all of JPMorgan Chase's clients, customers, vendors, counterparties and other external parties may have appropriate controls in place to protect the confidentiality, integrity or availability of the information exchanged between them and JPMorgan Chase, particularly where information is transmitted by electronic means. JPMorgan Chase could be exposed to litigation or regulatory fines, penalties or other sanctions if personal information of clients, customers, employees or others were to be mishandled or misused, such as situations where such information is:
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Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
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A reduction in JPMorgan Chase's credit ratings could curtail JPMorgan Chase's business activities and reduce its profitability in a number of ways, including:
•reducing its access to capital markets
•materially increasing its cost of issuing and servicing securities
•triggering additional collateral or funding requirements, and
•decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorgan Chase.
Any rating reduction could also increase the credit spreads charged by the market for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.
Capital
Maintaining the required level and composition of capital may impact JPMorgan Chase's ability to support business activities, meet evolving regulatory requirements and distribute capital to shareholders.
JPMorgan Chase is subject to various regulatory capital requirements, including leverage- and risk-based capital requirements. In addition, as a Global Systemically Important Bank ("GSIB"), JPMorgan Chase is required to hold additional capital buffers, including a GSIB surcharge, a Stress Capital Buffer ("SCB"), and a countercyclical buffer, each of which is reassessed at least annually. The amount of capital that JPMorgan Chase is required to hold in order to satisfy these leverage- and risk-based requirements could increase at any given time due to factors such as:
•actions by banking regulators, including changes in laws, rules, and regulations
•changes in the composition of JPMorgan Chase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and
•increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review, which could increase JPMorgan Chase's SCB.
Any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorgan Chase's shareholders, such as:
•reducing the amount of common stock that JPMorgan Chase is permitted to repurchase
•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorgan Chase's capital management strategy
•constraining the amount of dividends that may be paid on common stock, or
•curtailing JPMorgan Chase's business activities or operations.
Banking regulators have released a proposal to amend the Basel III risk-based capital framework which could significantly revise the risk-based capital requirements for banks with assets of $100 billion or more, including JPMorgan Chase. Uncertainty remains as to the manner in which these requirements will ultimately apply to JPMorgan Chase, however it is possible that these requirements could impact JPMorgan Chase's decisions concerning the business activities in which it will engage and its levels of capital distributions to its shareholders.
Operational
JPMorgan Chase's businesses are dependent on the effectiveness of internal and external operational systems.
JPMorgan Chase's businesses rely on the ability of JPMorgan Chase's financial, accounting, transaction execution, data processing and other operational systems to process, record, monitor and report a large number of transactions on a continuous basis, and to do so accurately, quickly and securely. In addition to proper design, installation, maintenance and training, the effective functioning of JPMorgan Chase's operational systems depends on:
•the quality of the information contained in those systems, as inaccurate, outdated, incomplete or corrupted data can significantly compromise the functionality or reliability of a particular system and other systems to which it transmits or from which it receives information, and
•JPMorgan Chase's ability to continue to maintain and upgrade its systems on a regular basis in line with technological advancements and evolving security requirements, carefully manage any changes introduced to its systems to maintain security and operational continuity, and adhere to all applicable legal and regulatory requirements, particularly in regions where JPMorgan Chase may face a heightened risk of malicious activity.
JPMorgan Chase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including degraded performance of data processing systems, data quality issues, disruptions of network connectivity and malfunctioning software, as well as disruptions in its ability to access and use the operational systems of third parties. These incidents have resulted in various negative effects for customers, including the inability to access account information or to make transactions through ATM, internet or mobile channels, the exfiltration of customer personal data, the recording of duplicative transactions and extended delays for customers requiring services from call
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, centers. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.
JPMorgan Chase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorgan Chase and its clients, customers and counterparties, including:
•JPMorgan Chase's ability to effectively maintain and upgrade systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions continue to increase
•attempts by third parties to defraud JPMorgan Chase or its clients and customers are increasing, evolving and becoming more complex, and during periods of market disruption or economic uncertainty, these attempts can be expected to increase in volume
•errors made by JPMorgan Chase or another market participant, whether inadvertent or malicious, could cause widespread system disruption
•failure to detect weaknesses or shortcomings in operational systems in a timely manner
•isolated or seemingly insignificant errors in operational systems could compound, or migrate to other systems over time, to become larger issues
•disruptions in operational systems or in the ability of systems to communicate with each other could be caused by failures in synchronization or encryption software, or degraded performance of microprocessors, and
•attempts by third parties to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.
JPMorgan Chase also depends on its ability to access and use the operational systems of third parties, including its custodians, vendors (such as those that provide data and cloud computing services, and security and technology services) and other market participants (such as clearing and payment systems, CCPs and securities exchanges), and external operational systems with which JPMorgan is connected, whether directly or indirectly, can be sources of operational risk to JPMorgan Chase. JPMorgan Chase may be exposed not only to a systems failure or cyber attack that may be experienced by a vendor or market infrastructure with which JPMorgan Chase is directly connected, but also to a systems breakdown or cyber attack involving another party to which such a vendor or infrastructure is connected. Similarly, retailers, payment systems and processors, data aggregators and other external parties with which JPMorgan Chase's customers do business can increase JPMorgan Chase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorgan Chase's security and control systems, including through the use of the internet,
cloud computing services, and personal smart phones and other mobile devices or services.
If an external party obtains access to customer account data on JPMorgan Chase's systems, whether authorized or unauthorized, and that party misappropriates that data, this could result in negative outcomes for JPMorgan Chase and its clients and customers, including a heightened risk of fraudulent transactions using JPMorgan Chase's systems, losses from fraudulent transactions and reputational harm arising from the perception that JPMorgan Chase's systems may not be secure.
As JPMorgan Chase's interconnectivity with clients, customers and other external parties continues to expand, JPMorgan Chase increasingly faces the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorgan Chase's clients or customers, or systems breakdowns or failures, security breaches or human error or misconduct affecting other external parties, may require JPMorgan Chase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of customers to their accounts. These actions can increase JPMorgan Chase's operational costs and potentially diminish customer satisfaction and confidence in JPMorgan Chase.
Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity, including due to a cyber attack, may cause industry-wide operational disruptions that could materially affect JPMorgan Chase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party could be exacerbated to the extent that the services provided by that system are used by a significant number or proportion of market participants.
The ineffectiveness, failure or other disruption of operational systems upon which JPMorgan Chase depends, including due to a systems malfunction, cyber incident or other systems failure, could result in unfavorable ripple effects in the financial markets and for JPMorgan Chase and its clients and customers, including:
•delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers
•impairment of JPMorgan Chase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement
•the possibility that funds transfers, capital markets trades or other transactions are executed erroneously
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•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers
•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption
•limitations on JPMorgan Chase's ability to collect data needed for its business and operations
•loss of confidence in the ability of JPMorgan Chase, or financial institutions generally, to protect against and withstand operational disruptions
•dissatisfaction among JPMorgan Chase's clients or customers
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
If JPMorgan Chase's operational systems, or those of acquired businesses or of external parties on which JPMorgan Chase's businesses depend, are unable to meet the requirements of JPMorgan Chase's businesses and operations or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorgan Chase could be materially and adversely affected.
A successful cyber attack affecting JPMorgan Chase could cause significant harm to JPMorgan Chase and its clients and customers.
JPMorgan Chase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets on a daily basis from various actors, including groups acting on behalf of hostile countries, cyber-criminals, "hacktivists" (i.e., individuals or groups that use technology to promote a political agenda or social change) and others. These cyber attacks can take many forms, including attempts to introduce computer viruses or malicious code, which are commonly referred to as "malware," into JPMorgan Chase's systems. These attacks are often designed to:
•obtain unauthorized access to confidential information belonging to JPMorgan Chase or its clients, customers, counterparties or employees
•manipulate data
•destroy data or systems with the aim of rendering services unavailable
•disrupt, sabotage or degrade service on JPMorgan Chase's systems
•steal money, or
•extort money through the use of so-called "ransomware."
JPMorgan Chase also experiences:
•distributed denial-of-service attacks intended to disrupt JPMorgan Chase's websites, including those that provide online banking and other services,
•a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and
•a high volume of disruptions to internet-based services used by JPMorgan Chase that are provided by third parties.
JPMorgan Chase has experienced security breaches due to cyber attacks in the past, and it is inevitable that additional breaches will occur in the future. Any such breach could result in serious and harmful consequences for JPMorgan Chase or its clients and customers.
A principal reason that JPMorgan Chase cannot provide absolute security against cyber attacks is that it may not always be possible to anticipate, detect or recognize threats to JPMorgan Chase's systems, or to implement effective preventive measures against all breaches because:
•the techniques used in cyber attacks evolve frequently and are increasingly sophisticated, and therefore may not be recognized until launched or may go undetected for extended periods
•cyber attacks can originate from a wide variety of sources, including JPMorgan Chase's own employees, cyber-criminals, hacktivists, well-resourced groups linked to terrorist organizations or hostile nation-states that can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally
•JPMorgan Chase does not have control over the cybersecurity of the systems of the large number of clients, customers, counterparties and third-party service providers with which it does business, and
•it is possible that a third party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems.
The risk of a security breach due to a cyber attack could increase in the future due to factors such as:
•JPMorgan Chase's ongoing expansion of its mobile banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services
•advances in artificial intelligence, such as the use of machine learning and generative artificial intelligence by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks
•the inability to maintain the security of information transmitted by JPMorgan Chase due to advances in quantum computing that may counteract or nullify existing information protections, and
•the acquisition and integration of new businesses.
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, In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
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or delivery platform, or adopts a new technology, it may not fully appreciate or identify new operational risks that may arise from those changes, including increased reliance on third party providers, or may fail to implement adequate controls to mitigate the risks associated with those changes. Any significant failure in this regard could diminish JPMorgan Chase's ability to operate one or more of its businesses or result in:
•potential liability to clients, counterparties and customers
•higher compliance and operational cost
•higher litigation costs, including regulatory fines, penalties and other sanctions
•damage to JPMorgan Chase's reputation
•impairment of JPMorgan Chase's liquidity
•regulatory intervention, or
•weaker competitive standing.
Any of the foregoing consequences could materially and adversely affect JPMorgan Chase's businesses and results of operations.
JPMorgan Chase's business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, and on the competence, trustworthiness, health and safety of employees.
JPMorgan Chase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorgan Chase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorgan Chase's businesses could be materially and adversely affected by:
•the ineffective implementation of business decisions
•any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls
•staffing shortages, particularly in tight labor markets
•the possibility that significant portions of JPMorgan Chase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorgan Chase's control such as natural disasters or an outbreak or escalation of hostilities
•a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or
•other negative outcomes caused by human error or misconduct by an employee of JPMorgan Chase or of another party on which JPMorgan Chase's businesses or operations rely.
JPMorgan Chase's operations could also be impaired if the measures taken by it or by governmental authorities to protect the health and safety of its employees are ineffective, or if any external party on which JPMorgan Chase relies fails to take appropriate and effective actions to protect the health and safety of its employees.
JPMorgan Chase faces substantial legal and operational risks in the processing and safeguarding of personal information.
JPMorgan Chase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., governing the privacy and protection of personal information of individuals. Governmental authorities around the world have adopted and are considering the adoption of numerous legislative and regulatory initiatives concerning privacy, data protection and security. Litigation or enforcement actions relating to these laws, rules and regulations could result in
fines or orders requiring that JPMorgan Chase change its data-related practices, which could have an adverse effect on JPMorgan Chase's ability to provide products and otherwise harm its business operations.
Implementing processes relating to JPMorgan Chase's collection, use, sharing and storage of personal information to comply with all applicable laws, rules and regulations in all relevant jurisdictions, including where the laws of different jurisdictions are in conflict, can:
•increase JPMorgan Chase's compliance and operating costs
•hinder the development of new products or services, curtail the offering of existing products or services, or affect how products and services are offered to clients and customers
•demand significant oversight by JPMorgan Chase's management, and
•require JPMorgan Chase to structure its businesses, operations and systems in less efficient ways.
Not all of JPMorgan Chase's clients, customers, vendors, counterparties and other external parties may have appropriate controls in place to protect the confidentiality, integrity or availability of the information exchanged between them and JPMorgan Chase, particularly where information is transmitted by electronic means. JPMorgan Chase could be exposed to litigation or regulatory fines, penalties or other sanctions if personal information of clients, customers, employees or others were to be mishandled or misused, such as situations where such information is:
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JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 20:
Part I
A reduction in JPMorgan Chase's credit ratings could curtail JPMorgan Chase's business activities and reduce its profitability in a number of ways, including:
•reducing its access to capital markets
•materially increasing its cost of issuing and servicing securities
•triggering additional collateral or funding requirements, and
•decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorgan Chase.
Any rating reduction could also increase the credit spreads charged by the market for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.
Capital
Maintaining the required level and composition of capital may impact JPMorgan Chase's ability to support business activities, meet evolving regulatory requirements and distribute capital to shareholders.
JPMorgan Chase is subject to various regulatory capital requirements, including leverage- and risk-based capital requirements. In addition, as a Global Systemically Important Bank ("GSIB"), JPMorgan Chase is required to hold additional capital buffers, including a GSIB surcharge, a Stress Capital Buffer ("SCB"), and a countercyclical buffer, each of which is reassessed at least annually. The amount of capital that JPMorgan Chase is required to hold in order to satisfy these leverage- and risk-based requirements could increase at any given time due to factors such as:
•actions by banking regulators, including changes in laws, rules, and regulations
•changes in the composition of JPMorgan Chase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and
•increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review, which could increase JPMorgan Chase's SCB.
Any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorgan Chase's shareholders, such as:
•reducing the amount of common stock that JPMorgan Chase is permitted to repurchase
•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorgan Chase's capital management strategy
•constraining the amount of dividends that may be paid on common stock, or
•curtailing JPMorgan Chase's business activities or operations.
Banking regulators have released a proposal to amend the Basel III risk-based capital framework which could significantly revise the risk-based capital requirements for banks with assets of $100 billion or more, including JPMorgan Chase. Uncertainty remains as to the manner in which these requirements will ultimately apply to JPMorgan Chase, however it is possible that these requirements could impact JPMorgan Chase's decisions concerning the business activities in which it will engage and its levels of capital distributions to its shareholders.
Operational
JPMorgan Chase's businesses are dependent on the effectiveness of internal and external operational systems.
JPMorgan Chase's businesses rely on the ability of JPMorgan Chase's financial, accounting, transaction execution, data processing and other operational systems to process, record, monitor and report a large number of transactions on a continuous basis, and to do so accurately, quickly and securely. In addition to proper design, installation, maintenance and training, the effective functioning of JPMorgan Chase's operational systems depends on:
•the quality of the information contained in those systems, as inaccurate, outdated, incomplete or corrupted data can significantly compromise the functionality or reliability of a particular system and other systems to which it transmits or from which it receives information, and
•JPMorgan Chase's ability to continue to maintain and upgrade its systems on a regular basis in line with technological advancements and evolving security requirements, carefully manage any changes introduced to its systems to maintain security and operational continuity, and adhere to all applicable legal and regulatory requirements, particularly in regions where JPMorgan Chase may face a heightened risk of malicious activity.
JPMorgan Chase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including degraded performance of data processing systems, data quality issues, disruptions of network connectivity and malfunctioning software, as well as disruptions in its ability to access and use the operational systems of third parties. These incidents have resulted in various negative effects for customers, including the inability to access account information or to make transactions through ATM, internet or mobile channels, the exfiltration of customer personal data, the recording of duplicative transactions and extended delays for customers requiring services from call
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">20</td><td colspan="3"></td><td colspan="3"></td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 21: centers. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.
JPMorgan Chase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorgan Chase and its clients, customers and counterparties, including:
•JPMorgan Chase's ability to effectively maintain and upgrade systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions continue to increase
•attempts by third parties to defraud JPMorgan Chase or its clients and customers are increasing, evolving and becoming more complex, and during periods of market disruption or economic uncertainty, these attempts can be expected to increase in volume
•errors made by JPMorgan Chase or another market participant, whether inadvertent or malicious, could cause widespread system disruption
•failure to detect weaknesses or shortcomings in operational systems in a timely manner
•isolated or seemingly insignificant errors in operational systems could compound, or migrate to other systems over time, to become larger issues
•disruptions in operational systems or in the ability of systems to communicate with each other could be caused by failures in synchronization or encryption software, or degraded performance of microprocessors, and
•attempts by third parties to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.
JPMorgan Chase also depends on its ability to access and use the operational systems of third parties, including its custodians, vendors (such as those that provide data and cloud computing services, and security and technology services) and other market participants (such as clearing and payment systems, CCPs and securities exchanges), and external operational systems with which JPMorgan is connected, whether directly or indirectly, can be sources of operational risk to JPMorgan Chase. JPMorgan Chase may be exposed not only to a systems failure or cyber attack that may be experienced by a vendor or market infrastructure with which JPMorgan Chase is directly connected, but also to a systems breakdown or cyber attack involving another party to which such a vendor or infrastructure is connected. Similarly, retailers, payment systems and processors, data aggregators and other external parties with which JPMorgan Chase's customers do business can increase JPMorgan Chase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorgan Chase's security and control systems, including through the use of the internet,
cloud computing services, and personal smart phones and other mobile devices or services.
If an external party obtains access to customer account data on JPMorgan Chase's systems, whether authorized or unauthorized, and that party misappropriates that data, this could result in negative outcomes for JPMorgan Chase and its clients and customers, including a heightened risk of fraudulent transactions using JPMorgan Chase's systems, losses from fraudulent transactions and reputational harm arising from the perception that JPMorgan Chase's systems may not be secure.
As JPMorgan Chase's interconnectivity with clients, customers and other external parties continues to expand, JPMorgan Chase increasingly faces the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorgan Chase's clients or customers, or systems breakdowns or failures, security breaches or human error or misconduct affecting other external parties, may require JPMorgan Chase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of customers to their accounts. These actions can increase JPMorgan Chase's operational costs and potentially diminish customer satisfaction and confidence in JPMorgan Chase.
Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity, including due to a cyber attack, may cause industry-wide operational disruptions that could materially affect JPMorgan Chase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party could be exacerbated to the extent that the services provided by that system are used by a significant number or proportion of market participants.
The ineffectiveness, failure or other disruption of operational systems upon which JPMorgan Chase depends, including due to a systems malfunction, cyber incident or other systems failure, could result in unfavorable ripple effects in the financial markets and for JPMorgan Chase and its clients and customers, including:
•delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers
•impairment of JPMorgan Chase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement
•the possibility that funds transfers, capital markets trades or other transactions are executed erroneously
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">21</td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 22:
Part I
•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers
•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption
•limitations on JPMorgan Chase's ability to collect data needed for its business and operations
•loss of confidence in the ability of JPMorgan Chase, or financial institutions generally, to protect against and withstand operational disruptions
•dissatisfaction among JPMorgan Chase's clients or customers
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
If JPMorgan Chase's operational systems, or those of acquired businesses or of external parties on which JPMorgan Chase's businesses depend, are unable to meet the requirements of JPMorgan Chase's businesses and operations or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorgan Chase could be materially and adversely affected.
A successful cyber attack affecting JPMorgan Chase could cause significant harm to JPMorgan Chase and its clients and customers.
JPMorgan Chase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets on a daily basis from various actors, including groups acting on behalf of hostile countries, cyber-criminals, "hacktivists" (i.e., individuals or groups that use technology to promote a political agenda or social change) and others. These cyber attacks can take many forms, including attempts to introduce computer viruses or malicious code, which are commonly referred to as "malware," into JPMorgan Chase's systems. These attacks are often designed to:
•obtain unauthorized access to confidential information belonging to JPMorgan Chase or its clients, customers, counterparties or employees
•manipulate data
•destroy data or systems with the aim of rendering services unavailable
•disrupt, sabotage or degrade service on JPMorgan Chase's systems
•steal money, or
•extort money through the use of so-called "ransomware."
JPMorgan Chase also experiences:
•distributed denial-of-service attacks intended to disrupt JPMorgan Chase's websites, including those that provide online banking and other services,
•a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and
•a high volume of disruptions to internet-based services used by JPMorgan Chase that are provided by third parties.
JPMorgan Chase has experienced security breaches due to cyber attacks in the past, and it is inevitable that additional breaches will occur in the future. Any such breach could result in serious and harmful consequences for JPMorgan Chase or its clients and customers.
A principal reason that JPMorgan Chase cannot provide absolute security against cyber attacks is that it may not always be possible to anticipate, detect or recognize threats to JPMorgan Chase's systems, or to implement effective preventive measures against all breaches because:
•the techniques used in cyber attacks evolve frequently and are increasingly sophisticated, and therefore may not be recognized until launched or may go undetected for extended periods
•cyber attacks can originate from a wide variety of sources, including JPMorgan Chase's own employees, cyber-criminals, hacktivists, well-resourced groups linked to terrorist organizations or hostile nation-states that can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally
•JPMorgan Chase does not have control over the cybersecurity of the systems of the large number of clients, customers, counterparties and third-party service providers with which it does business, and
•it is possible that a third party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems.
The risk of a security breach due to a cyber attack could increase in the future due to factors such as:
•JPMorgan Chase's ongoing expansion of its mobile banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services
•advances in artificial intelligence, such as the use of machine learning and generative artificial intelligence by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks
•the inability to maintain the security of information transmitted by JPMorgan Chase due to advances in quantum computing that may counteract or nullify existing information protections, and
•the acquisition and integration of new businesses.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">22</td><td colspan="3"></td><td colspan="3"></td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 23: In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">23</td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 24:
Part I
or delivery platform, or adopts a new technology, it may not fully appreciate or identify new operational risks that may arise from those changes, including increased reliance on third party providers, or may fail to implement adequate controls to mitigate the risks associated with those changes. Any significant failure in this regard could diminish JPMorgan Chase's ability to operate one or more of its businesses or result in:
•potential liability to clients, counterparties and customers
•higher compliance and operational cost
•higher litigation costs, including regulatory fines, penalties and other sanctions
•damage to JPMorgan Chase's reputation
•impairment of JPMorgan Chase's liquidity
•regulatory intervention, or
•weaker competitive standing.
Any of the foregoing consequences could materially and adversely affect JPMorgan Chase's businesses and results of operations.
JPMorgan Chase's business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, and on the competence, trustworthiness, health and safety of employees.
JPMorgan Chase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorgan Chase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorgan Chase's businesses could be materially and adversely affected by:
•the ineffective implementation of business decisions
•any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls
•staffing shortages, particularly in tight labor markets
•the possibility that significant portions of JPMorgan Chase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorgan Chase's control such as natural disasters or an outbreak or escalation of hostilities
•a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or
•other negative outcomes caused by human error or misconduct by an employee of JPMorgan Chase or of another party on which JPMorgan Chase's businesses or operations rely.
JPMorgan Chase's operations could also be impaired if the measures taken by it or by governmental authorities to protect the health and safety of its employees are ineffective, or if any external party on which JPMorgan Chase relies fails to take appropriate and effective actions to protect the health and safety of its employees.
JPMorgan Chase faces substantial legal and operational risks in the processing and safeguarding of personal information.
JPMorgan Chase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., governing the privacy and protection of personal information of individuals. Governmental authorities around the world have adopted and are considering the adoption of numerous legislative and regulatory initiatives concerning privacy, data protection and security. Litigation or enforcement actions relating to these laws, rules and regulations could result in
fines or orders requiring that JPMorgan Chase change its data-related practices, which could have an adverse effect on JPMorgan Chase's ability to provide products and otherwise harm its business operations.
Implementing processes relating to JPMorgan Chase's collection, use, sharing and storage of personal information to comply with all applicable laws, rules and regulations in all relevant jurisdictions, including where the laws of different jurisdictions are in conflict, can:
•increase JPMorgan Chase's compliance and operating costs
•hinder the development of new products or services, curtail the offering of existing products or services, or affect how products and services are offered to clients and customers
•demand significant oversight by JPMorgan Chase's management, and
•require JPMorgan Chase to structure its businesses, operations and systems in less efficient ways.
Not all of JPMorgan Chase's clients, customers, vendors, counterparties and other external parties may have appropriate controls in place to protect the confidentiality, integrity or availability of the information exchanged between them and JPMorgan Chase, particularly where information is transmitted by electronic means. JPMorgan Chase could be exposed to litigation or regulatory fines, penalties or other sanctions if personal information of clients, customers, employees or others were to be mishandled or misused, such as situations where such information is:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">24</td><td colspan="3"></td><td colspan="3"></td></tr></table>
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Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>,
Part I
A reduction in JPMorgan Chase's credit ratings could curtail JPMorgan Chase's business activities and reduce its profitability in a number of ways, including:
•reducing its access to capital markets
•materially increasing its cost of issuing and servicing securities
•triggering additional collateral or funding requirements, and
•decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorgan Chase.
Any rating reduction could also increase the credit spreads charged by the market for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.
Capital
Maintaining the required level and composition of capital may impact JPMorgan Chase's ability to support business activities, meet evolving regulatory requirements and distribute capital to shareholders.
JPMorgan Chase is subject to various regulatory capital requirements, including leverage- and risk-based capital requirements. In addition, as a Global Systemically Important Bank ("GSIB"), JPMorgan Chase is required to hold additional capital buffers, including a GSIB surcharge, a Stress Capital Buffer ("SCB"), and a countercyclical buffer, each of which is reassessed at least annually. The amount of capital that JPMorgan Chase is required to hold in order to satisfy these leverage- and risk-based requirements could increase at any given time due to factors such as:
•actions by banking regulators, including changes in laws, rules, and regulations
•changes in the composition of JPMorgan Chase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and
•increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review, which could increase JPMorgan Chase's SCB.
Any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorgan Chase's shareholders, such as:
•reducing the amount of common stock that JPMorgan Chase is permitted to repurchase
•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorgan Chase's capital management strategy
•constraining the amount of dividends that may be paid on common stock, or
•curtailing JPMorgan Chase's business activities or operations.
Banking regulators have released a proposal to amend the Basel III risk-based capital framework which could significantly revise the risk-based capital requirements for banks with assets of $100 billion or more, including JPMorgan Chase. Uncertainty remains as to the manner in which these requirements will ultimately apply to JPMorgan Chase, however it is possible that these requirements could impact JPMorgan Chase's decisions concerning the business activities in which it will engage and its levels of capital distributions to its shareholders.
Operational
JPMorgan Chase's businesses are dependent on the effectiveness of internal and external operational systems.
JPMorgan Chase's businesses rely on the ability of JPMorgan Chase's financial, accounting, transaction execution, data processing and other operational systems to process, record, monitor and report a large number of transactions on a continuous basis, and to do so accurately, quickly and securely. In addition to proper design, installation, maintenance and training, the effective functioning of JPMorgan Chase's operational systems depends on:
•the quality of the information contained in those systems, as inaccurate, outdated, incomplete or corrupted data can significantly compromise the functionality or reliability of a particular system and other systems to which it transmits or from which it receives information, and
•JPMorgan Chase's ability to continue to maintain and upgrade its systems on a regular basis in line with technological advancements and evolving security requirements, carefully manage any changes introduced to its systems to maintain security and operational continuity, and adhere to all applicable legal and regulatory requirements, particularly in regions where JPMorgan Chase may face a heightened risk of malicious activity.
JPMorgan Chase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including degraded performance of data processing systems, data quality issues, disruptions of network connectivity and malfunctioning software, as well as disruptions in its ability to access and use the operational systems of third parties. These incidents have resulted in various negative effects for customers, including the inability to access account information or to make transactions through ATM, internet or mobile channels, the exfiltration of customer personal data, the recording of duplicative transactions and extended delays for customers requiring services from call
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">20</td><td colspan="3"></td><td colspan="3"></td></tr></table>, centers. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.
JPMorgan Chase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorgan Chase and its clients, customers and counterparties, including:
•JPMorgan Chase's ability to effectively maintain and upgrade systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions continue to increase
•attempts by third parties to defraud JPMorgan Chase or its clients and customers are increasing, evolving and becoming more complex, and during periods of market disruption or economic uncertainty, these attempts can be expected to increase in volume
•errors made by JPMorgan Chase or another market participant, whether inadvertent or malicious, could cause widespread system disruption
•failure to detect weaknesses or shortcomings in operational systems in a timely manner
•isolated or seemingly insignificant errors in operational systems could compound, or migrate to other systems over time, to become larger issues
•disruptions in operational systems or in the ability of systems to communicate with each other could be caused by failures in synchronization or encryption software, or degraded performance of microprocessors, and
•attempts by third parties to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.
JPMorgan Chase also depends on its ability to access and use the operational systems of third parties, including its custodians, vendors (such as those that provide data and cloud computing services, and security and technology services) and other market participants (such as clearing and payment systems, CCPs and securities exchanges), and external operational systems with which JPMorgan is connected, whether directly or indirectly, can be sources of operational risk to JPMorgan Chase. JPMorgan Chase may be exposed not only to a systems failure or cyber attack that may be experienced by a vendor or market infrastructure with which JPMorgan Chase is directly connected, but also to a systems breakdown or cyber attack involving another party to which such a vendor or infrastructure is connected. Similarly, retailers, payment systems and processors, data aggregators and other external parties with which JPMorgan Chase's customers do business can increase JPMorgan Chase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorgan Chase's security and control systems, including through the use of the internet,
cloud computing services, and personal smart phones and other mobile devices or services.
If an external party obtains access to customer account data on JPMorgan Chase's systems, whether authorized or unauthorized, and that party misappropriates that data, this could result in negative outcomes for JPMorgan Chase and its clients and customers, including a heightened risk of fraudulent transactions using JPMorgan Chase's systems, losses from fraudulent transactions and reputational harm arising from the perception that JPMorgan Chase's systems may not be secure.
As JPMorgan Chase's interconnectivity with clients, customers and other external parties continues to expand, JPMorgan Chase increasingly faces the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorgan Chase's clients or customers, or systems breakdowns or failures, security breaches or human error or misconduct affecting other external parties, may require JPMorgan Chase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of customers to their accounts. These actions can increase JPMorgan Chase's operational costs and potentially diminish customer satisfaction and confidence in JPMorgan Chase.
Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity, including due to a cyber attack, may cause industry-wide operational disruptions that could materially affect JPMorgan Chase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party could be exacerbated to the extent that the services provided by that system are used by a significant number or proportion of market participants.
The ineffectiveness, failure or other disruption of operational systems upon which JPMorgan Chase depends, including due to a systems malfunction, cyber incident or other systems failure, could result in unfavorable ripple effects in the financial markets and for JPMorgan Chase and its clients and customers, including:
•delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers
•impairment of JPMorgan Chase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement
•the possibility that funds transfers, capital markets trades or other transactions are executed erroneously
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">21</td></tr></table>,
Part I
•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers
•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption
•limitations on JPMorgan Chase's ability to collect data needed for its business and operations
•loss of confidence in the ability of JPMorgan Chase, or financial institutions generally, to protect against and withstand operational disruptions
•dissatisfaction among JPMorgan Chase's clients or customers
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
If JPMorgan Chase's operational systems, or those of acquired businesses or of external parties on which JPMorgan Chase's businesses depend, are unable to meet the requirements of JPMorgan Chase's businesses and operations or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorgan Chase could be materially and adversely affected.
A successful cyber attack affecting JPMorgan Chase could cause significant harm to JPMorgan Chase and its clients and customers.
JPMorgan Chase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets on a daily basis from various actors, including groups acting on behalf of hostile countries, cyber-criminals, "hacktivists" (i.e., individuals or groups that use technology to promote a political agenda or social change) and others. These cyber attacks can take many forms, including attempts to introduce computer viruses or malicious code, which are commonly referred to as "malware," into JPMorgan Chase's systems. These attacks are often designed to:
•obtain unauthorized access to confidential information belonging to JPMorgan Chase or its clients, customers, counterparties or employees
•manipulate data
•destroy data or systems with the aim of rendering services unavailable
•disrupt, sabotage or degrade service on JPMorgan Chase's systems
•steal money, or
•extort money through the use of so-called "ransomware."
JPMorgan Chase also experiences:
•distributed denial-of-service attacks intended to disrupt JPMorgan Chase's websites, including those that provide online banking and other services,
•a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and
•a high volume of disruptions to internet-based services used by JPMorgan Chase that are provided by third parties.
JPMorgan Chase has experienced security breaches due to cyber attacks in the past, and it is inevitable that additional breaches will occur in the future. Any such breach could result in serious and harmful consequences for JPMorgan Chase or its clients and customers.
A principal reason that JPMorgan Chase cannot provide absolute security against cyber attacks is that it may not always be possible to anticipate, detect or recognize threats to JPMorgan Chase's systems, or to implement effective preventive measures against all breaches because:
•the techniques used in cyber attacks evolve frequently and are increasingly sophisticated, and therefore may not be recognized until launched or may go undetected for extended periods
•cyber attacks can originate from a wide variety of sources, including JPMorgan Chase's own employees, cyber-criminals, hacktivists, well-resourced groups linked to terrorist organizations or hostile nation-states that can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally
•JPMorgan Chase does not have control over the cybersecurity of the systems of the large number of clients, customers, counterparties and third-party service providers with which it does business, and
•it is possible that a third party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems.
The risk of a security breach due to a cyber attack could increase in the future due to factors such as:
•JPMorgan Chase's ongoing expansion of its mobile banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services
•advances in artificial intelligence, such as the use of machine learning and generative artificial intelligence by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks
•the inability to maintain the security of information transmitted by JPMorgan Chase due to advances in quantum computing that may counteract or nullify existing information protections, and
•the acquisition and integration of new businesses.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">22</td><td colspan="3"></td><td colspan="3"></td></tr></table>, In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">23</td></tr></table>,
Part I
or delivery platform, or adopts a new technology, it may not fully appreciate or identify new operational risks that may arise from those changes, including increased reliance on third party providers, or may fail to implement adequate controls to mitigate the risks associated with those changes. Any significant failure in this regard could diminish JPMorgan Chase's ability to operate one or more of its businesses or result in:
•potential liability to clients, counterparties and customers
•higher compliance and operational cost
•higher litigation costs, including regulatory fines, penalties and other sanctions
•damage to JPMorgan Chase's reputation
•impairment of JPMorgan Chase's liquidity
•regulatory intervention, or
•weaker competitive standing.
Any of the foregoing consequences could materially and adversely affect JPMorgan Chase's businesses and results of operations.
JPMorgan Chase's business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, and on the competence, trustworthiness, health and safety of employees.
JPMorgan Chase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorgan Chase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorgan Chase's businesses could be materially and adversely affected by:
•the ineffective implementation of business decisions
•any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls
•staffing shortages, particularly in tight labor markets
•the possibility that significant portions of JPMorgan Chase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorgan Chase's control such as natural disasters or an outbreak or escalation of hostilities
•a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or
•other negative outcomes caused by human error or misconduct by an employee of JPMorgan Chase or of another party on which JPMorgan Chase's businesses or operations rely.
JPMorgan Chase's operations could also be impaired if the measures taken by it or by governmental authorities to protect the health and safety of its employees are ineffective, or if any external party on which JPMorgan Chase relies fails to take appropriate and effective actions to protect the health and safety of its employees.
JPMorgan Chase faces substantial legal and operational risks in the processing and safeguarding of personal information.
JPMorgan Chase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., governing the privacy and protection of personal information of individuals. Governmental authorities around the world have adopted and are considering the adoption of numerous legislative and regulatory initiatives concerning privacy, data protection and security. Litigation or enforcement actions relating to these laws, rules and regulations could result in
fines or orders requiring that JPMorgan Chase change its data-related practices, which could have an adverse effect on JPMorgan Chase's ability to provide products and otherwise harm its business operations.
Implementing processes relating to JPMorgan Chase's collection, use, sharing and storage of personal information to comply with all applicable laws, rules and regulations in all relevant jurisdictions, including where the laws of different jurisdictions are in conflict, can:
•increase JPMorgan Chase's compliance and operating costs
•hinder the development of new products or services, curtail the offering of existing products or services, or affect how products and services are offered to clients and customers
•demand significant oversight by JPMorgan Chase's management, and
•require JPMorgan Chase to structure its businesses, operations and systems in less efficient ways.
Not all of JPMorgan Chase's clients, customers, vendors, counterparties and other external parties may have appropriate controls in place to protect the confidentiality, integrity or availability of the information exchanged between them and JPMorgan Chase, particularly where information is transmitted by electronic means. JPMorgan Chase could be exposed to litigation or regulatory fines, penalties or other sanctions if personal information of clients, customers, employees or others were to be mishandled or misused, such as situations where such information is:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">24</td><td colspan="3"></td><td colspan="3"></td></tr></table>
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q_Ri002
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What all kind of Risk JPMC faces? Categorise these risk.
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The company's risks can be classified into operational risks, financial risks, market risks, regulatory risks, and strategic risks. Operational risks involve disruptions to business processes, financial risks include liquidity and credit risks, market risks involve exposure to market fluctuations, regulatory risks pertain to changes in laws, and strategic risks involve the alignment of business goals with market conditions.
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Risk
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9
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0000019617-24-000225
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Item 1A. Risk Factors.
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JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
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Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
| | |
|---:|---:|
| 1 | 9 |
|
JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>
|
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>
|
q_Ri003
|
Summarize the most critical risks highlighted by the company's latest report.
|
The most critical risks highlighted in the company's 10-K report include market risks from volatile interest rates and currency fluctuations, operational risks, regulatory risks, and strategic risks
|
Risk
|
9
|
0000019617-24-000225
|
Item 1A. Risk Factors.
|
JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
| | |
|---:|---:|
| 1 | 9 |
|
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
| | |
|---:|---:|
| 1 | 9 |
|
JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>
|
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>
|
q_Ri004
|
What are the company's key risk management strategies?
|
The company's key risk management strategies include diversification of revenue streams, investment in technology to enhance operational resilience, hedging financial risks with derivatives, maintaining a strong compliance program, and regularly reviewing and updating its risk management policies to adapt to changing market conditions.
|
Risk
|
28, 29
|
0000019617-24-000225
|
Item 1A. Risk Factors.
|
JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 28:
Part I
•materially and adversely affect JPMorgan Chase's business and results of operations or financial condition
•restrict its ability to access the capital markets
•require it to expend significant resources to correct the lapses or deficiencies
•expose it to litigation or regulatory fines, penalties or other sanctions
•harm its reputation, or
•otherwise diminish investor confidence in JPMorgan Chase.
Strategic
If JPMorgan Chase's management fails to develop and execute effective business strategies, and to anticipate changes affecting those strategies, JPMorgan Chase's competitive standing and results could suffer.
JPMorgan Chase's business strategies significantly affect its competitive standing and operations. These strategies relate to:
•the products and services that JPMorgan Chase offers
•the geographies in which it operates
•the types of clients and customers that it serves
•the businesses that it acquires or in which it invests
•the counterparties with which it does business, and
•the methods, distribution channels and third party service providers by or through which it offers products and services.
If management makes choices about these strategies and goals that prove to be incorrect, are based on incomplete, inaccurate or fraudulent information, do not accurately assess the competitive landscape and industry trends, or fail to address changing regulatory and market environments or the expectations of clients, customers, investors, employees and other stakeholders, then the franchise values and growth prospects of JPMorgan Chase's businesses may suffer and its earnings could decline.
JPMorgan Chase's growth prospects also depend on management's ability to develop and execute effective business plans to address these strategic priorities, both in the near term and over longer time horizons. Management's effectiveness in this regard will affect JPMorgan Chase's ability to develop and enhance its resources, control expenses and return capital to shareholders. Each of these objectives could be adversely affected by any failure on the part of management to:
•devise effective business plans and strategies
•offer products and services that meet changing expectations of clients and customers
•allocate capital in a manner that promotes long-term stability to enable JPMorgan Chase to build and invest in
market-leading businesses, even in a highly stressed environment
•allocate capital appropriately due to imprecise modeling or subjective judgments made in connection with those allocations
•appropriately assess and monitor principal investments made to enhance or accelerate JPMorgan Chase's business strategies
•conduct appropriate due diligence on prospective business acquisitions or investments, or effectively integrate newly-acquired businesses
•appropriately address concerns of clients, customers, investors, employees and other stakeholders, including with respect to climate and other ESG matters
•react quickly to changes in market conditions or market structures, or
•develop and enhance the operational, technology, risk, financial and managerial resources necessary to grow and manage JPMorgan Chase's businesses.
Furthermore, JPMorgan Chase may incur costs in connection with disposing of excess properties, premises and facilities, and those costs could be material to its results of operations.
JPMorgan Chase faces significant and increasing competition in the rapidly evolving financial services industry.
JPMorgan Chase operates in a highly competitive environment in which it must evolve and adapt to changes in financial regulation, technological advances, increased public scrutiny and changes in economic conditions. JPMorgan Chase expects that competition in the U.S. and global financial services industry will continue to be intense. Competitors include:
•other banks and financial institutions
•trading, advisory and investment management firms
•finance companies
•technology companies, and
•other non-bank firms that are engaged in providing similar as well as new products and services.
JPMorgan Chase cannot provide assurance that the significant competition in the financial services industry will not materially and adversely affect its future results of operations. For example, aggressive or less disciplined lending practices by non-bank competitors could lead to a loss of market share for traditional banks, and in an economic downturn could result in instability in the financial services industry and adversely impact other market participants, including JPMorgan Chase.
New competitors in the financial services industry continue to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-
| | |
|---:|---:|
| 1 | 28 |
, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 29: depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including electronic securities and cryptocurrency trading, lending and other extensions of credit to consumers, payments processing and online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk that payments processing and other products and services, including deposits and other traditional banking products, could be significantly disrupted by the use of new technologies, such as cryptocurrencies and other applications using secure distributed ledgers, that may not require intermediation. New technologies have required and could require JPMorgan Chase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. In addition, new technologies may be used by customers, or breached or infiltrated by third parties, in unexpected ways, which can increase JPMorgan Chase's costs for complying with laws, rules and regulations that apply to the offering of products and services through those technologies and reduce the income that JPMorgan Chase earns from providing products and services through those technologies.
Ongoing or increased competition may put pressure on the pricing for JPMorgan Chase's products and services or may cause JPMorgan Chase to lose market share, particularly with respect to traditional banking products. This competition may be based on quality and variety of products and services offered, transaction execution, innovation, reputation and price. The failure of any of JPMorgan Chase's businesses to meet the expectations of clients and customers, whether due to general market conditions, under-performance, a decision not to offer a particular product or service, changes in client and customer expectations or other factors, could affect JPMorgan Chase's ability to attract or retain clients and customers. Any such impact could, in turn, reduce JPMorgan Chase's revenues. Increased competition also may require JPMorgan Chase to make additional capital investments in its businesses, or to extend more of its capital on behalf of its clients to remain competitive.
The effects of climate change could adversely affect JPMorgan Chase's business and operations, both directly and as a result of impacts on its clients and customers.
JPMorgan Chase operates in many regions, countries and communities around the world where its business, and the activities of its clients and customers, could be adversely affected by climate change. Climate change could manifest as a financial risk to JPMorgan Chase either through changes in the physical climate or from the process of transitioning to a low-carbon economy. Both physical risks and transition risks associated with climate change could have negative impacts on the financial condition or
creditworthiness of JPMorgan's clients and customers, and on its exposure to those clients and customers.
Physical risks include the increased frequency or severity of acute weather events, such as floods, wildfires and tropical cyclones, and chronic shifts in the climate, such as persistent changes in precipitation levels, rising sea levels, or increases in average ambient temperature. Potential adverse impacts of climate-related physical risks include:
•declines in asset values, including due to the destruction or degradation of property
•reduced availability or increased cost of insurance for clients of JPMorgan Chase
•interruptions to business operations, including supply chain disruption, and
•population migration or unemployment in affected regions.
Transition risks arise from societal adjustment to a low-carbon economy, such as changes in public policy, adoption of new technologies or changes in consumer preferences towards low-carbon goods and services. These risks could also be influenced by changes in the physical climate. Potential adverse impacts of transition risks include:
•sudden devaluation of assets, including unanticipated write-downs ("stranded assets")
•increased operational and compliance costs driven by changes in climate policy
•increased energy costs driven by governmental actions and initiatives such as emission pricing and accelerated decarbonization policies
•negative consequences to business models, and the need to make changes in response to those consequences, and
•damage to JPMorgan Chase's reputation, including due to any perception that its business practices are contrary to public policy or the preferences of different stakeholders.
Climate risks can also arise from inconsistencies and conflicts in the manner in which climate policy and financial regulations are implemented in the many regions where JPMorgan Chase operates, including initiatives to apply and enforce policy and regulation with extraterritorial effect. Additionally, internal models and estimations used in climate risk assessments have an increased level of uncertainty due to limited historical trend information and the absence of standardized, reliable and comprehensive greenhouse gas emissions data, which could lead to inaccurate disclosures or financial reporting.
Conduct
Conduct failure by JPMorgan Chase employees can harm clients and customers, impact market integrity, damage JPMorgan Chase's reputation and trigger litigation and regulatory action.
| | |
|---:|---:|
| 1 | 29 |
|
Part I
•materially and adversely affect JPMorgan Chase's business and results of operations or financial condition
•restrict its ability to access the capital markets
•require it to expend significant resources to correct the lapses or deficiencies
•expose it to litigation or regulatory fines, penalties or other sanctions
•harm its reputation, or
•otherwise diminish investor confidence in JPMorgan Chase.
Strategic
If JPMorgan Chase's management fails to develop and execute effective business strategies, and to anticipate changes affecting those strategies, JPMorgan Chase's competitive standing and results could suffer.
JPMorgan Chase's business strategies significantly affect its competitive standing and operations. These strategies relate to:
•the products and services that JPMorgan Chase offers
•the geographies in which it operates
•the types of clients and customers that it serves
•the businesses that it acquires or in which it invests
•the counterparties with which it does business, and
•the methods, distribution channels and third party service providers by or through which it offers products and services.
If management makes choices about these strategies and goals that prove to be incorrect, are based on incomplete, inaccurate or fraudulent information, do not accurately assess the competitive landscape and industry trends, or fail to address changing regulatory and market environments or the expectations of clients, customers, investors, employees and other stakeholders, then the franchise values and growth prospects of JPMorgan Chase's businesses may suffer and its earnings could decline.
JPMorgan Chase's growth prospects also depend on management's ability to develop and execute effective business plans to address these strategic priorities, both in the near term and over longer time horizons. Management's effectiveness in this regard will affect JPMorgan Chase's ability to develop and enhance its resources, control expenses and return capital to shareholders. Each of these objectives could be adversely affected by any failure on the part of management to:
•devise effective business plans and strategies
•offer products and services that meet changing expectations of clients and customers
•allocate capital in a manner that promotes long-term stability to enable JPMorgan Chase to build and invest in
market-leading businesses, even in a highly stressed environment
•allocate capital appropriately due to imprecise modeling or subjective judgments made in connection with those allocations
•appropriately assess and monitor principal investments made to enhance or accelerate JPMorgan Chase's business strategies
•conduct appropriate due diligence on prospective business acquisitions or investments, or effectively integrate newly-acquired businesses
•appropriately address concerns of clients, customers, investors, employees and other stakeholders, including with respect to climate and other ESG matters
•react quickly to changes in market conditions or market structures, or
•develop and enhance the operational, technology, risk, financial and managerial resources necessary to grow and manage JPMorgan Chase's businesses.
Furthermore, JPMorgan Chase may incur costs in connection with disposing of excess properties, premises and facilities, and those costs could be material to its results of operations.
JPMorgan Chase faces significant and increasing competition in the rapidly evolving financial services industry.
JPMorgan Chase operates in a highly competitive environment in which it must evolve and adapt to changes in financial regulation, technological advances, increased public scrutiny and changes in economic conditions. JPMorgan Chase expects that competition in the U.S. and global financial services industry will continue to be intense. Competitors include:
•other banks and financial institutions
•trading, advisory and investment management firms
•finance companies
•technology companies, and
•other non-bank firms that are engaged in providing similar as well as new products and services.
JPMorgan Chase cannot provide assurance that the significant competition in the financial services industry will not materially and adversely affect its future results of operations. For example, aggressive or less disciplined lending practices by non-bank competitors could lead to a loss of market share for traditional banks, and in an economic downturn could result in instability in the financial services industry and adversely impact other market participants, including JPMorgan Chase.
New competitors in the financial services industry continue to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-
| | |
|---:|---:|
| 1 | 28 |
, depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including electronic securities and cryptocurrency trading, lending and other extensions of credit to consumers, payments processing and online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk that payments processing and other products and services, including deposits and other traditional banking products, could be significantly disrupted by the use of new technologies, such as cryptocurrencies and other applications using secure distributed ledgers, that may not require intermediation. New technologies have required and could require JPMorgan Chase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. In addition, new technologies may be used by customers, or breached or infiltrated by third parties, in unexpected ways, which can increase JPMorgan Chase's costs for complying with laws, rules and regulations that apply to the offering of products and services through those technologies and reduce the income that JPMorgan Chase earns from providing products and services through those technologies.
Ongoing or increased competition may put pressure on the pricing for JPMorgan Chase's products and services or may cause JPMorgan Chase to lose market share, particularly with respect to traditional banking products. This competition may be based on quality and variety of products and services offered, transaction execution, innovation, reputation and price. The failure of any of JPMorgan Chase's businesses to meet the expectations of clients and customers, whether due to general market conditions, under-performance, a decision not to offer a particular product or service, changes in client and customer expectations or other factors, could affect JPMorgan Chase's ability to attract or retain clients and customers. Any such impact could, in turn, reduce JPMorgan Chase's revenues. Increased competition also may require JPMorgan Chase to make additional capital investments in its businesses, or to extend more of its capital on behalf of its clients to remain competitive.
The effects of climate change could adversely affect JPMorgan Chase's business and operations, both directly and as a result of impacts on its clients and customers.
JPMorgan Chase operates in many regions, countries and communities around the world where its business, and the activities of its clients and customers, could be adversely affected by climate change. Climate change could manifest as a financial risk to JPMorgan Chase either through changes in the physical climate or from the process of transitioning to a low-carbon economy. Both physical risks and transition risks associated with climate change could have negative impacts on the financial condition or
creditworthiness of JPMorgan's clients and customers, and on its exposure to those clients and customers.
Physical risks include the increased frequency or severity of acute weather events, such as floods, wildfires and tropical cyclones, and chronic shifts in the climate, such as persistent changes in precipitation levels, rising sea levels, or increases in average ambient temperature. Potential adverse impacts of climate-related physical risks include:
•declines in asset values, including due to the destruction or degradation of property
•reduced availability or increased cost of insurance for clients of JPMorgan Chase
•interruptions to business operations, including supply chain disruption, and
•population migration or unemployment in affected regions.
Transition risks arise from societal adjustment to a low-carbon economy, such as changes in public policy, adoption of new technologies or changes in consumer preferences towards low-carbon goods and services. These risks could also be influenced by changes in the physical climate. Potential adverse impacts of transition risks include:
•sudden devaluation of assets, including unanticipated write-downs ("stranded assets")
•increased operational and compliance costs driven by changes in climate policy
•increased energy costs driven by governmental actions and initiatives such as emission pricing and accelerated decarbonization policies
•negative consequences to business models, and the need to make changes in response to those consequences, and
•damage to JPMorgan Chase's reputation, including due to any perception that its business practices are contrary to public policy or the preferences of different stakeholders.
Climate risks can also arise from inconsistencies and conflicts in the manner in which climate policy and financial regulations are implemented in the many regions where JPMorgan Chase operates, including initiatives to apply and enforce policy and regulation with extraterritorial effect. Additionally, internal models and estimations used in climate risk assessments have an increased level of uncertainty due to limited historical trend information and the absence of standardized, reliable and comprehensive greenhouse gas emissions data, which could lead to inaccurate disclosures or financial reporting.
Conduct
Conduct failure by JPMorgan Chase employees can harm clients and customers, impact market integrity, damage JPMorgan Chase's reputation and trigger litigation and regulatory action.
| | |
|---:|---:|
| 1 | 29 |
|
JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 28:
Part I
•materially and adversely affect JPMorgan Chase's business and results of operations or financial condition
•restrict its ability to access the capital markets
•require it to expend significant resources to correct the lapses or deficiencies
•expose it to litigation or regulatory fines, penalties or other sanctions
•harm its reputation, or
•otherwise diminish investor confidence in JPMorgan Chase.
Strategic
If JPMorgan Chase's management fails to develop and execute effective business strategies, and to anticipate changes affecting those strategies, JPMorgan Chase's competitive standing and results could suffer.
JPMorgan Chase's business strategies significantly affect its competitive standing and operations. These strategies relate to:
•the products and services that JPMorgan Chase offers
•the geographies in which it operates
•the types of clients and customers that it serves
•the businesses that it acquires or in which it invests
•the counterparties with which it does business, and
•the methods, distribution channels and third party service providers by or through which it offers products and services.
If management makes choices about these strategies and goals that prove to be incorrect, are based on incomplete, inaccurate or fraudulent information, do not accurately assess the competitive landscape and industry trends, or fail to address changing regulatory and market environments or the expectations of clients, customers, investors, employees and other stakeholders, then the franchise values and growth prospects of JPMorgan Chase's businesses may suffer and its earnings could decline.
JPMorgan Chase's growth prospects also depend on management's ability to develop and execute effective business plans to address these strategic priorities, both in the near term and over longer time horizons. Management's effectiveness in this regard will affect JPMorgan Chase's ability to develop and enhance its resources, control expenses and return capital to shareholders. Each of these objectives could be adversely affected by any failure on the part of management to:
•devise effective business plans and strategies
•offer products and services that meet changing expectations of clients and customers
•allocate capital in a manner that promotes long-term stability to enable JPMorgan Chase to build and invest in
market-leading businesses, even in a highly stressed environment
•allocate capital appropriately due to imprecise modeling or subjective judgments made in connection with those allocations
•appropriately assess and monitor principal investments made to enhance or accelerate JPMorgan Chase's business strategies
•conduct appropriate due diligence on prospective business acquisitions or investments, or effectively integrate newly-acquired businesses
•appropriately address concerns of clients, customers, investors, employees and other stakeholders, including with respect to climate and other ESG matters
•react quickly to changes in market conditions or market structures, or
•develop and enhance the operational, technology, risk, financial and managerial resources necessary to grow and manage JPMorgan Chase's businesses.
Furthermore, JPMorgan Chase may incur costs in connection with disposing of excess properties, premises and facilities, and those costs could be material to its results of operations.
JPMorgan Chase faces significant and increasing competition in the rapidly evolving financial services industry.
JPMorgan Chase operates in a highly competitive environment in which it must evolve and adapt to changes in financial regulation, technological advances, increased public scrutiny and changes in economic conditions. JPMorgan Chase expects that competition in the U.S. and global financial services industry will continue to be intense. Competitors include:
•other banks and financial institutions
•trading, advisory and investment management firms
•finance companies
•technology companies, and
•other non-bank firms that are engaged in providing similar as well as new products and services.
JPMorgan Chase cannot provide assurance that the significant competition in the financial services industry will not materially and adversely affect its future results of operations. For example, aggressive or less disciplined lending practices by non-bank competitors could lead to a loss of market share for traditional banks, and in an economic downturn could result in instability in the financial services industry and adversely impact other market participants, including JPMorgan Chase.
New competitors in the financial services industry continue to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">28</td><td colspan="3"></td><td colspan="3"></td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 29: depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including electronic securities and cryptocurrency trading, lending and other extensions of credit to consumers, payments processing and online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk that payments processing and other products and services, including deposits and other traditional banking products, could be significantly disrupted by the use of new technologies, such as cryptocurrencies and other applications using secure distributed ledgers, that may not require intermediation. New technologies have required and could require JPMorgan Chase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. In addition, new technologies may be used by customers, or breached or infiltrated by third parties, in unexpected ways, which can increase JPMorgan Chase's costs for complying with laws, rules and regulations that apply to the offering of products and services through those technologies and reduce the income that JPMorgan Chase earns from providing products and services through those technologies.
Ongoing or increased competition may put pressure on the pricing for JPMorgan Chase's products and services or may cause JPMorgan Chase to lose market share, particularly with respect to traditional banking products. This competition may be based on quality and variety of products and services offered, transaction execution, innovation, reputation and price. The failure of any of JPMorgan Chase's businesses to meet the expectations of clients and customers, whether due to general market conditions, under-performance, a decision not to offer a particular product or service, changes in client and customer expectations or other factors, could affect JPMorgan Chase's ability to attract or retain clients and customers. Any such impact could, in turn, reduce JPMorgan Chase's revenues. Increased competition also may require JPMorgan Chase to make additional capital investments in its businesses, or to extend more of its capital on behalf of its clients to remain competitive.
The effects of climate change could adversely affect JPMorgan Chase's business and operations, both directly and as a result of impacts on its clients and customers.
JPMorgan Chase operates in many regions, countries and communities around the world where its business, and the activities of its clients and customers, could be adversely affected by climate change. Climate change could manifest as a financial risk to JPMorgan Chase either through changes in the physical climate or from the process of transitioning to a low-carbon economy. Both physical risks and transition risks associated with climate change could have negative impacts on the financial condition or
creditworthiness of JPMorgan's clients and customers, and on its exposure to those clients and customers.
Physical risks include the increased frequency or severity of acute weather events, such as floods, wildfires and tropical cyclones, and chronic shifts in the climate, such as persistent changes in precipitation levels, rising sea levels, or increases in average ambient temperature. Potential adverse impacts of climate-related physical risks include:
•declines in asset values, including due to the destruction or degradation of property
•reduced availability or increased cost of insurance for clients of JPMorgan Chase
•interruptions to business operations, including supply chain disruption, and
•population migration or unemployment in affected regions.
Transition risks arise from societal adjustment to a low-carbon economy, such as changes in public policy, adoption of new technologies or changes in consumer preferences towards low-carbon goods and services. These risks could also be influenced by changes in the physical climate. Potential adverse impacts of transition risks include:
•sudden devaluation of assets, including unanticipated write-downs ("stranded assets")
•increased operational and compliance costs driven by changes in climate policy
•increased energy costs driven by governmental actions and initiatives such as emission pricing and accelerated decarbonization policies
•negative consequences to business models, and the need to make changes in response to those consequences, and
•damage to JPMorgan Chase's reputation, including due to any perception that its business practices are contrary to public policy or the preferences of different stakeholders.
Climate risks can also arise from inconsistencies and conflicts in the manner in which climate policy and financial regulations are implemented in the many regions where JPMorgan Chase operates, including initiatives to apply and enforce policy and regulation with extraterritorial effect. Additionally, internal models and estimations used in climate risk assessments have an increased level of uncertainty due to limited historical trend information and the absence of standardized, reliable and comprehensive greenhouse gas emissions data, which could lead to inaccurate disclosures or financial reporting.
Conduct
Conduct failure by JPMorgan Chase employees can harm clients and customers, impact market integrity, damage JPMorgan Chase's reputation and trigger litigation and regulatory action.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">29</td></tr></table>
|
Part I
•materially and adversely affect JPMorgan Chase's business and results of operations or financial condition
•restrict its ability to access the capital markets
•require it to expend significant resources to correct the lapses or deficiencies
•expose it to litigation or regulatory fines, penalties or other sanctions
•harm its reputation, or
•otherwise diminish investor confidence in JPMorgan Chase.
Strategic
If JPMorgan Chase's management fails to develop and execute effective business strategies, and to anticipate changes affecting those strategies, JPMorgan Chase's competitive standing and results could suffer.
JPMorgan Chase's business strategies significantly affect its competitive standing and operations. These strategies relate to:
•the products and services that JPMorgan Chase offers
•the geographies in which it operates
•the types of clients and customers that it serves
•the businesses that it acquires or in which it invests
•the counterparties with which it does business, and
•the methods, distribution channels and third party service providers by or through which it offers products and services.
If management makes choices about these strategies and goals that prove to be incorrect, are based on incomplete, inaccurate or fraudulent information, do not accurately assess the competitive landscape and industry trends, or fail to address changing regulatory and market environments or the expectations of clients, customers, investors, employees and other stakeholders, then the franchise values and growth prospects of JPMorgan Chase's businesses may suffer and its earnings could decline.
JPMorgan Chase's growth prospects also depend on management's ability to develop and execute effective business plans to address these strategic priorities, both in the near term and over longer time horizons. Management's effectiveness in this regard will affect JPMorgan Chase's ability to develop and enhance its resources, control expenses and return capital to shareholders. Each of these objectives could be adversely affected by any failure on the part of management to:
•devise effective business plans and strategies
•offer products and services that meet changing expectations of clients and customers
•allocate capital in a manner that promotes long-term stability to enable JPMorgan Chase to build and invest in
market-leading businesses, even in a highly stressed environment
•allocate capital appropriately due to imprecise modeling or subjective judgments made in connection with those allocations
•appropriately assess and monitor principal investments made to enhance or accelerate JPMorgan Chase's business strategies
•conduct appropriate due diligence on prospective business acquisitions or investments, or effectively integrate newly-acquired businesses
•appropriately address concerns of clients, customers, investors, employees and other stakeholders, including with respect to climate and other ESG matters
•react quickly to changes in market conditions or market structures, or
•develop and enhance the operational, technology, risk, financial and managerial resources necessary to grow and manage JPMorgan Chase's businesses.
Furthermore, JPMorgan Chase may incur costs in connection with disposing of excess properties, premises and facilities, and those costs could be material to its results of operations.
JPMorgan Chase faces significant and increasing competition in the rapidly evolving financial services industry.
JPMorgan Chase operates in a highly competitive environment in which it must evolve and adapt to changes in financial regulation, technological advances, increased public scrutiny and changes in economic conditions. JPMorgan Chase expects that competition in the U.S. and global financial services industry will continue to be intense. Competitors include:
•other banks and financial institutions
•trading, advisory and investment management firms
•finance companies
•technology companies, and
•other non-bank firms that are engaged in providing similar as well as new products and services.
JPMorgan Chase cannot provide assurance that the significant competition in the financial services industry will not materially and adversely affect its future results of operations. For example, aggressive or less disciplined lending practices by non-bank competitors could lead to a loss of market share for traditional banks, and in an economic downturn could result in instability in the financial services industry and adversely impact other market participants, including JPMorgan Chase.
New competitors in the financial services industry continue to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">28</td><td colspan="3"></td><td colspan="3"></td></tr></table>, depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including electronic securities and cryptocurrency trading, lending and other extensions of credit to consumers, payments processing and online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk that payments processing and other products and services, including deposits and other traditional banking products, could be significantly disrupted by the use of new technologies, such as cryptocurrencies and other applications using secure distributed ledgers, that may not require intermediation. New technologies have required and could require JPMorgan Chase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. In addition, new technologies may be used by customers, or breached or infiltrated by third parties, in unexpected ways, which can increase JPMorgan Chase's costs for complying with laws, rules and regulations that apply to the offering of products and services through those technologies and reduce the income that JPMorgan Chase earns from providing products and services through those technologies.
Ongoing or increased competition may put pressure on the pricing for JPMorgan Chase's products and services or may cause JPMorgan Chase to lose market share, particularly with respect to traditional banking products. This competition may be based on quality and variety of products and services offered, transaction execution, innovation, reputation and price. The failure of any of JPMorgan Chase's businesses to meet the expectations of clients and customers, whether due to general market conditions, under-performance, a decision not to offer a particular product or service, changes in client and customer expectations or other factors, could affect JPMorgan Chase's ability to attract or retain clients and customers. Any such impact could, in turn, reduce JPMorgan Chase's revenues. Increased competition also may require JPMorgan Chase to make additional capital investments in its businesses, or to extend more of its capital on behalf of its clients to remain competitive.
The effects of climate change could adversely affect JPMorgan Chase's business and operations, both directly and as a result of impacts on its clients and customers.
JPMorgan Chase operates in many regions, countries and communities around the world where its business, and the activities of its clients and customers, could be adversely affected by climate change. Climate change could manifest as a financial risk to JPMorgan Chase either through changes in the physical climate or from the process of transitioning to a low-carbon economy. Both physical risks and transition risks associated with climate change could have negative impacts on the financial condition or
creditworthiness of JPMorgan's clients and customers, and on its exposure to those clients and customers.
Physical risks include the increased frequency or severity of acute weather events, such as floods, wildfires and tropical cyclones, and chronic shifts in the climate, such as persistent changes in precipitation levels, rising sea levels, or increases in average ambient temperature. Potential adverse impacts of climate-related physical risks include:
•declines in asset values, including due to the destruction or degradation of property
•reduced availability or increased cost of insurance for clients of JPMorgan Chase
•interruptions to business operations, including supply chain disruption, and
•population migration or unemployment in affected regions.
Transition risks arise from societal adjustment to a low-carbon economy, such as changes in public policy, adoption of new technologies or changes in consumer preferences towards low-carbon goods and services. These risks could also be influenced by changes in the physical climate. Potential adverse impacts of transition risks include:
•sudden devaluation of assets, including unanticipated write-downs ("stranded assets")
•increased operational and compliance costs driven by changes in climate policy
•increased energy costs driven by governmental actions and initiatives such as emission pricing and accelerated decarbonization policies
•negative consequences to business models, and the need to make changes in response to those consequences, and
•damage to JPMorgan Chase's reputation, including due to any perception that its business practices are contrary to public policy or the preferences of different stakeholders.
Climate risks can also arise from inconsistencies and conflicts in the manner in which climate policy and financial regulations are implemented in the many regions where JPMorgan Chase operates, including initiatives to apply and enforce policy and regulation with extraterritorial effect. Additionally, internal models and estimations used in climate risk assessments have an increased level of uncertainty due to limited historical trend information and the absence of standardized, reliable and comprehensive greenhouse gas emissions data, which could lead to inaccurate disclosures or financial reporting.
Conduct
Conduct failure by JPMorgan Chase employees can harm clients and customers, impact market integrity, damage JPMorgan Chase's reputation and trigger litigation and regulatory action.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">29</td></tr></table>
|
q_Ri005
|
What risks does The Coca-Cola Company face if it fails to meet its sustainability goals or comply with evolving regulations?
|
If The Coca-Cola Company fails to meet its sustainability goals or comply with evolving regulations, it faces several risks. Sustainability goals are increasingly important to stakeholders, including investors and consumers. Failure to achieve these goals can result in negative publicity, which could harm Coca-Cola’s brand reputation and consumer trust. Additionally, regulatory non-compliance can lead to fines and legal actions, increasing operational costs. Evolving regulations often require significant investments in new technologies, processes, or reporting mechanisms, and failure to adapt could place Coca-Cola at a competitive disadvantage. Increased scrutiny from investors and environmental groups could also lead to divestment or reduced investment. To avoid these risks, Coca-Cola needs to invest in sustainable practices, transparently report progress, and ensure compliance with all relevant environmental regulations.
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Risk
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24
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0000021344-24-000009
|
ITEM 1A. RISK FACTORS
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COCA COLA CO 10-K form for the fiscal year ended 2023-12-31, page 24: for companies receiving or processing personal data, and many provide for significant penalties for noncompliance. Some laws and regulations also impose obligations regarding cross-border data transfers of personal data. These requirements with respect to personal data have subjected and may continue in the future to subject the Company to, among other things, additional costs and expenses and have required and may in the future require costly changes to our business practices and information technology and security systems, policies, procedures and practices. In addition, some countries are considering or have enacted data localization or residency laws, which require that certain data be maintained, stored and/or processed within their country of origin. Maintaining local data centers in individual countries could increase our operating costs significantly. Our security controls over personal data, the training of employees and vendors on data privacy and data security, and the policies, procedures and practices we have implemented or may implement in the future may not prevent the improper disclosure of personal data by us or the third-party service providers and vendors whose technology, systems and services we use in connection with the receipt, storage and transmission of personal data. Our bottling partners, distributors, joint venture partners and suppliers have privacy and security controls and policies over personal data that differ in scope and complexity from our policies, procedures and practices, and we may also experience secondary contractual, regulatory, financial and reputational harm as a result of improper disclosure of personal data by our bottling partners. Unauthorized access to or improper disclosure of personal data in violation of privacy and data protection laws could harm our reputation, cause loss of consumer confidence, subject us to regulatory enforcement actions (including penalties, fines and investigations), and result in private litigation against us, which could result in loss of revenue, increased costs, liability for monetary damages, fines and/or criminal prosecution, all of which could negatively affect our business and operating results. We have incurred, and will continue to incur, expenses to comply with privacy and data protection standards and protocols imposed by law, regulation, industry standards and contractual obligations. Increased regulation of data collection, use, disclosure and retention practices, including self-regulation and industry standards, changes in existing laws and regulations, enactment of new laws and regulations, increased enforcement activity, and changes in interpretation of laws, could increase our cost of compliance and operation, limit our ability to grow our business or otherwise harm our business.
RISKS RELATED TO ENVIRONMENTAL AND SOCIAL FACTORS
Our business is subject to evolving sustainability regulatory requirements and expectations, which exposes us to increased costs and legal and reputational risks.
We have established and publicly announced sustainability goals and aspirations. We also report progress related to the circular economy of packaging; water stewardship; climate; portfolio; sustainable agriculture; human and workplace rights and diversity, equity and inclusion. These goals reflect our current plans and aspirations and are not guarantees that we will be able to achieve them. Our ability to achieve our sustainability goals and targets and to accurately and transparently report our progress presents numerous operational, financial, legal and other risks and is dependent on the actions of our bottling partners, suppliers and other third parties, some of which are outside of our control. If we are unable to meet our sustainability goals or evolving stakeholder expectations and industry standards, or if we are perceived to have not responded appropriately to the growing concern for sustainability issues, our reputation, and therefore our ability to sell products, could be negatively impacted. In addition, in recent years, investor advocacy groups and certain institutional investors have placed increasing importance on sustainability. If, as a result of their assessment of our sustainability practices, certain investors are unsatisfied with our actions or progress, they may reconsider their investment in our Company. At the same time, there also exists "anti-ESG" sentiment among certain stakeholders and government institutions, and we may face scrutiny, reputational risk, product boycotts, lawsuits or market access restrictions from these parties regarding our sustainability initiatives.
Increasing focus on sustainability matters has resulted in, and is expected to continue to result in, evolving legal and regulatory requirements, including mandatory due diligence, disclosure and reporting requirements, as well as a variety of voluntary disclosure frameworks and standards. We have incurred, and are likely to continue to incur, increased costs complying with such standards and regulations, particularly given the lack of convergence among standards. In addition, our processes and controls may not always comply with evolving standards and regulations for identifying, measuring and reporting sustainability metrics; our interpretation of reporting standards and regulations may differ from those of others; and such standards and regulations may change over time, any of which could result in significant revisions to our goals or reported progress in achieving such goals. In addition, methodologies for reporting our data may be updated and previously reported data may be adjusted to reflect improvement in availability and quality of third-party data, changing assumptions, changes in the nature and scope of our operations (including from acquisitions and divestitures), and other changes in circumstances. Any failure or perceived failure, whether or not valid, to pursue or fulfill our sustainability goals and aspirations or to satisfy various sustainability reporting standards or regulatory requirements within the timelines we announce, or at all, could increase the risk of litigation or result in regulatory actions.
Increasing concerns about the environmental impact of plastic bottles and other packaging materials could result in reduced demand for our beverage products and increased production and distribution costs.
There are increasing concerns among consumers, governments and other stakeholders about the damaging impact of the accumulation of plastic bottles and other packaging materials in the environment, particularly in the world's waterways, lakes
24
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for companies receiving or processing personal data, and many provide for significant penalties for noncompliance. Some laws and regulations also impose obligations regarding cross-border data transfers of personal data. These requirements with respect to personal data have subjected and may continue in the future to subject the Company to, among other things, additional costs and expenses and have required and may in the future require costly changes to our business practices and information technology and security systems, policies, procedures and practices. In addition, some countries are considering or have enacted data localization or residency laws, which require that certain data be maintained, stored and/or processed within their country of origin. Maintaining local data centers in individual countries could increase our operating costs significantly. Our security controls over personal data, the training of employees and vendors on data privacy and data security, and the policies, procedures and practices we have implemented or may implement in the future may not prevent the improper disclosure of personal data by us or the third-party service providers and vendors whose technology, systems and services we use in connection with the receipt, storage and transmission of personal data. Our bottling partners, distributors, joint venture partners and suppliers have privacy and security controls and policies over personal data that differ in scope and complexity from our policies, procedures and practices, and we may also experience secondary contractual, regulatory, financial and reputational harm as a result of improper disclosure of personal data by our bottling partners. Unauthorized access to or improper disclosure of personal data in violation of privacy and data protection laws could harm our reputation, cause loss of consumer confidence, subject us to regulatory enforcement actions (including penalties, fines and investigations), and result in private litigation against us, which could result in loss of revenue, increased costs, liability for monetary damages, fines and/or criminal prosecution, all of which could negatively affect our business and operating results. We have incurred, and will continue to incur, expenses to comply with privacy and data protection standards and protocols imposed by law, regulation, industry standards and contractual obligations. Increased regulation of data collection, use, disclosure and retention practices, including self-regulation and industry standards, changes in existing laws and regulations, enactment of new laws and regulations, increased enforcement activity, and changes in interpretation of laws, could increase our cost of compliance and operation, limit our ability to grow our business or otherwise harm our business.
RISKS RELATED TO ENVIRONMENTAL AND SOCIAL FACTORS
Our business is subject to evolving sustainability regulatory requirements and expectations, which exposes us to increased costs and legal and reputational risks.
We have established and publicly announced sustainability goals and aspirations. We also report progress related to the circular economy of packaging; water stewardship; climate; portfolio; sustainable agriculture; human and workplace rights and diversity, equity and inclusion. These goals reflect our current plans and aspirations and are not guarantees that we will be able to achieve them. Our ability to achieve our sustainability goals and targets and to accurately and transparently report our progress presents numerous operational, financial, legal and other risks and is dependent on the actions of our bottling partners, suppliers and other third parties, some of which are outside of our control. If we are unable to meet our sustainability goals or evolving stakeholder expectations and industry standards, or if we are perceived to have not responded appropriately to the growing concern for sustainability issues, our reputation, and therefore our ability to sell products, could be negatively impacted. In addition, in recent years, investor advocacy groups and certain institutional investors have placed increasing importance on sustainability. If, as a result of their assessment of our sustainability practices, certain investors are unsatisfied with our actions or progress, they may reconsider their investment in our Company. At the same time, there also exists "anti-ESG" sentiment among certain stakeholders and government institutions, and we may face scrutiny, reputational risk, product boycotts, lawsuits or market access restrictions from these parties regarding our sustainability initiatives.
Increasing focus on sustainability matters has resulted in, and is expected to continue to result in, evolving legal and regulatory requirements, including mandatory due diligence, disclosure and reporting requirements, as well as a variety of voluntary disclosure frameworks and standards. We have incurred, and are likely to continue to incur, increased costs complying with such standards and regulations, particularly given the lack of convergence among standards. In addition, our processes and controls may not always comply with evolving standards and regulations for identifying, measuring and reporting sustainability metrics; our interpretation of reporting standards and regulations may differ from those of others; and such standards and regulations may change over time, any of which could result in significant revisions to our goals or reported progress in achieving such goals. In addition, methodologies for reporting our data may be updated and previously reported data may be adjusted to reflect improvement in availability and quality of third-party data, changing assumptions, changes in the nature and scope of our operations (including from acquisitions and divestitures), and other changes in circumstances. Any failure or perceived failure, whether or not valid, to pursue or fulfill our sustainability goals and aspirations or to satisfy various sustainability reporting standards or regulatory requirements within the timelines we announce, or at all, could increase the risk of litigation or result in regulatory actions.
Increasing concerns about the environmental impact of plastic bottles and other packaging materials could result in reduced demand for our beverage products and increased production and distribution costs.
There are increasing concerns among consumers, governments and other stakeholders about the damaging impact of the accumulation of plastic bottles and other packaging materials in the environment, particularly in the world's waterways, lakes
24
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COCA COLA CO 10-K form for the fiscal year ended 2023-12-31, page 24: for companies receiving or processing personal data, and many provide for significant penalties for noncompliance. Some laws and regulations also impose obligations regarding cross-border data transfers of personal data. These requirements with respect to personal data have subjected and may continue in the future to subject the Company to, among other things, additional costs and expenses and have required and may in the future require costly changes to our business practices and information technology and security systems, policies, procedures and practices. In addition, some countries are considering or have enacted data localization or residency laws, which require that certain data be maintained, stored and/or processed within their country of origin. Maintaining local data centers in individual countries could increase our operating costs significantly. Our security controls over personal data, the training of employees and vendors on data privacy and data security, and the policies, procedures and practices we have implemented or may implement in the future may not prevent the improper disclosure of personal data by us or the third-party service providers and vendors whose technology, systems and services we use in connection with the receipt, storage and transmission of personal data. Our bottling partners, distributors, joint venture partners and suppliers have privacy and security controls and policies over personal data that differ in scope and complexity from our policies, procedures and practices, and we may also experience secondary contractual, regulatory, financial and reputational harm as a result of improper disclosure of personal data by our bottling partners. Unauthorized access to or improper disclosure of personal data in violation of privacy and data protection laws could harm our reputation, cause loss of consumer confidence, subject us to regulatory enforcement actions (including penalties, fines and investigations), and result in private litigation against us, which could result in loss of revenue, increased costs, liability for monetary damages, fines and/or criminal prosecution, all of which could negatively affect our business and operating results. We have incurred, and will continue to incur, expenses to comply with privacy and data protection standards and protocols imposed by law, regulation, industry standards and contractual obligations. Increased regulation of data collection, use, disclosure and retention practices, including self-regulation and industry standards, changes in existing laws and regulations, enactment of new laws and regulations, increased enforcement activity, and changes in interpretation of laws, could increase our cost of compliance and operation, limit our ability to grow our business or otherwise harm our business.
RISKS RELATED TO ENVIRONMENTAL AND SOCIAL FACTORS
Our business is subject to evolving sustainability regulatory requirements and expectations, which exposes us to increased costs and legal and reputational risks.
We have established and publicly announced sustainability goals and aspirations. We also report progress related to the circular economy of packaging; water stewardship; climate; portfolio; sustainable agriculture; human and workplace rights and diversity, equity and inclusion. These goals reflect our current plans and aspirations and are not guarantees that we will be able to achieve them. Our ability to achieve our sustainability goals and targets and to accurately and transparently report our progress presents numerous operational, financial, legal and other risks and is dependent on the actions of our bottling partners, suppliers and other third parties, some of which are outside of our control. If we are unable to meet our sustainability goals or evolving stakeholder expectations and industry standards, or if we are perceived to have not responded appropriately to the growing concern for sustainability issues, our reputation, and therefore our ability to sell products, could be negatively impacted. In addition, in recent years, investor advocacy groups and certain institutional investors have placed increasing importance on sustainability. If, as a result of their assessment of our sustainability practices, certain investors are unsatisfied with our actions or progress, they may reconsider their investment in our Company. At the same time, there also exists "anti-ESG" sentiment among certain stakeholders and government institutions, and we may face scrutiny, reputational risk, product boycotts, lawsuits or market access restrictions from these parties regarding our sustainability initiatives.
Increasing focus on sustainability matters has resulted in, and is expected to continue to result in, evolving legal and regulatory requirements, including mandatory due diligence, disclosure and reporting requirements, as well as a variety of voluntary disclosure frameworks and standards. We have incurred, and are likely to continue to incur, increased costs complying with such standards and regulations, particularly given the lack of convergence among standards. In addition, our processes and controls may not always comply with evolving standards and regulations for identifying, measuring and reporting sustainability metrics; our interpretation of reporting standards and regulations may differ from those of others; and such standards and regulations may change over time, any of which could result in significant revisions to our goals or reported progress in achieving such goals. In addition, methodologies for reporting our data may be updated and previously reported data may be adjusted to reflect improvement in availability and quality of third-party data, changing assumptions, changes in the nature and scope of our operations (including from acquisitions and divestitures), and other changes in circumstances. Any failure or perceived failure, whether or not valid, to pursue or fulfill our sustainability goals and aspirations or to satisfy various sustainability reporting standards or regulatory requirements within the timelines we announce, or at all, could increase the risk of litigation or result in regulatory actions.
Increasing concerns about the environmental impact of plastic bottles and other packaging materials could result in reduced demand for our beverage products and increased production and distribution costs.
There are increasing concerns among consumers, governments and other stakeholders about the damaging impact of the accumulation of plastic bottles and other packaging materials in the environment, particularly in the world's waterways, lakes
24
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for companies receiving or processing personal data, and many provide for significant penalties for noncompliance. Some laws and regulations also impose obligations regarding cross-border data transfers of personal data. These requirements with respect to personal data have subjected and may continue in the future to subject the Company to, among other things, additional costs and expenses and have required and may in the future require costly changes to our business practices and information technology and security systems, policies, procedures and practices. In addition, some countries are considering or have enacted data localization or residency laws, which require that certain data be maintained, stored and/or processed within their country of origin. Maintaining local data centers in individual countries could increase our operating costs significantly. Our security controls over personal data, the training of employees and vendors on data privacy and data security, and the policies, procedures and practices we have implemented or may implement in the future may not prevent the improper disclosure of personal data by us or the third-party service providers and vendors whose technology, systems and services we use in connection with the receipt, storage and transmission of personal data. Our bottling partners, distributors, joint venture partners and suppliers have privacy and security controls and policies over personal data that differ in scope and complexity from our policies, procedures and practices, and we may also experience secondary contractual, regulatory, financial and reputational harm as a result of improper disclosure of personal data by our bottling partners. Unauthorized access to or improper disclosure of personal data in violation of privacy and data protection laws could harm our reputation, cause loss of consumer confidence, subject us to regulatory enforcement actions (including penalties, fines and investigations), and result in private litigation against us, which could result in loss of revenue, increased costs, liability for monetary damages, fines and/or criminal prosecution, all of which could negatively affect our business and operating results. We have incurred, and will continue to incur, expenses to comply with privacy and data protection standards and protocols imposed by law, regulation, industry standards and contractual obligations. Increased regulation of data collection, use, disclosure and retention practices, including self-regulation and industry standards, changes in existing laws and regulations, enactment of new laws and regulations, increased enforcement activity, and changes in interpretation of laws, could increase our cost of compliance and operation, limit our ability to grow our business or otherwise harm our business.
RISKS RELATED TO ENVIRONMENTAL AND SOCIAL FACTORS
Our business is subject to evolving sustainability regulatory requirements and expectations, which exposes us to increased costs and legal and reputational risks.
We have established and publicly announced sustainability goals and aspirations. We also report progress related to the circular economy of packaging; water stewardship; climate; portfolio; sustainable agriculture; human and workplace rights and diversity, equity and inclusion. These goals reflect our current plans and aspirations and are not guarantees that we will be able to achieve them. Our ability to achieve our sustainability goals and targets and to accurately and transparently report our progress presents numerous operational, financial, legal and other risks and is dependent on the actions of our bottling partners, suppliers and other third parties, some of which are outside of our control. If we are unable to meet our sustainability goals or evolving stakeholder expectations and industry standards, or if we are perceived to have not responded appropriately to the growing concern for sustainability issues, our reputation, and therefore our ability to sell products, could be negatively impacted. In addition, in recent years, investor advocacy groups and certain institutional investors have placed increasing importance on sustainability. If, as a result of their assessment of our sustainability practices, certain investors are unsatisfied with our actions or progress, they may reconsider their investment in our Company. At the same time, there also exists "anti-ESG" sentiment among certain stakeholders and government institutions, and we may face scrutiny, reputational risk, product boycotts, lawsuits or market access restrictions from these parties regarding our sustainability initiatives.
Increasing focus on sustainability matters has resulted in, and is expected to continue to result in, evolving legal and regulatory requirements, including mandatory due diligence, disclosure and reporting requirements, as well as a variety of voluntary disclosure frameworks and standards. We have incurred, and are likely to continue to incur, increased costs complying with such standards and regulations, particularly given the lack of convergence among standards. In addition, our processes and controls may not always comply with evolving standards and regulations for identifying, measuring and reporting sustainability metrics; our interpretation of reporting standards and regulations may differ from those of others; and such standards and regulations may change over time, any of which could result in significant revisions to our goals or reported progress in achieving such goals. In addition, methodologies for reporting our data may be updated and previously reported data may be adjusted to reflect improvement in availability and quality of third-party data, changing assumptions, changes in the nature and scope of our operations (including from acquisitions and divestitures), and other changes in circumstances. Any failure or perceived failure, whether or not valid, to pursue or fulfill our sustainability goals and aspirations or to satisfy various sustainability reporting standards or regulatory requirements within the timelines we announce, or at all, could increase the risk of litigation or result in regulatory actions.
Increasing concerns about the environmental impact of plastic bottles and other packaging materials could result in reduced demand for our beverage products and increased production and distribution costs.
There are increasing concerns among consumers, governments and other stakeholders about the damaging impact of the accumulation of plastic bottles and other packaging materials in the environment, particularly in the world's waterways, lakes
24
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q_Ri006
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What are the various risks related to business operations identified by P&G in its 10k report for FY 2024?
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Procter & Gamble (P&G) identifies several business operations risks:
1. Supply Chain Disruptions: Risks include loss or disruption of key manufacturing and supply arrangements due to labor disputes, cybersecurity incidents, natural disasters, or geopolitical events.
2. Cost Fluctuations: Variability in commodity prices, labor costs, and transportation expenses can impact financial performance. Effective management is needed to mitigate these fluctuations.
3. Competitive Pressures: Intense competition in the consumer products industry demands responsiveness to emerging trends and competitive factors to maintain sales and margins.
4. Customer Relationship Risks: Changes in customer demand or relationships with key retail partners can affect product placement and sales.
5. Reputation Risks: Damage to brand reputation from product issues, negative publicity, or environmental concerns can impact financial results.
6. Third-Party Dependencies: Reliance on suppliers and partners introduces risks related to operational and data security.
7. Cybersecurity and IT Failures: Cyberattacks or IT system failures can disrupt operations and lead to data breaches or financial losses.
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Risk
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7, 8
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0000080424-24-000083
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Item 1A. Risk Factors.
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PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 7:
The Procter & Gamble Company 7
from customers, consumers, employees, vendors, investors and other stakeholders, and we may suffer financial and reputational damage as a result. Additionally, we could be exposed to potential liability, litigation, governmental inquiries, reporting requirements, investigations or regulatory enforcement actions; and we could be subject to payment of fines or other penalties, legal claims by our suppliers, customers or employees and significant remediation costs.
Periodically, we and/or our suppliers also upgrade IT/OT systems or adopt new technologies, including those enabled by machine learning or artificial intelligence. If such a new system or technology does not function properly, provides flawed or inaccurate outputs or exposes us to increased cybersecurity breaches and failures, it could affect our ability to order materials, make and ship orders and process payments in addition to other operational and information integrity and loss issues. The costs and operational consequences of responding to the above items and implementing remediation measures could be significant and could adversely impact our results of operations and cash flows and generate negative publicity affecting Company reputation and relationships among consumers, customers and other business partners.
We must successfully manage the demand, supply and operational challenges associated with the effects of any future disease outbreak, including epidemics, pandemics or similar widespread public health concerns.
Our business may be negatively impacted by the fear of exposure to or actual effects of a disease outbreak, epidemic, pandemic or similar widespread public health concern. These impacts may include, but are not limited to:
•Significant reductions in demand or significant volatility in demand for one or more of our products, which may be caused by, among other things: the temporary inability of consumers to purchase our products due to illness, quarantine or other travel restrictions or financial hardship, shifts in demand away from one or more of our more discretionary or higher priced products to lower priced products or stockpiling or similar pantry-loading activity. If prolonged, such impacts can further increase the difficulty of business or operations planning and may adversely impact our results of operations and cash flows; or
•Significant changes in the political conditions in markets in which we manufacture, sell or distribute our products, including quarantines, import/export restrictions, price controls, or governmental or regulatory actions, closures or other restrictions that limit or close our operating and manufacturing facilities, restrict our employees' ability to travel or perform necessary business functions or otherwise prevent our third-party partners, suppliers or customers from sufficiently staffing operations.
Despite efforts to manage and remedy these impacts, their ultimate impact also depends on factors beyond our knowledge or control, including the duration and severity of any such outbreak as well as third-party actions taken to contain its spread and mitigate its public health effects.
BUSINESS STRATEGY & ORGANIZATIONAL RISKS
Our ability to meet our growth targets depends on successful product, marketing and operations innovation and successful responses to competitive innovation, evolving digital marketing and selling platforms and changing consumer habits.
We are a consumer products company that relies on continued global demand for our brands and products. Achieving our business results depends, in part, on successfully developing, introducing and marketing new products and on making significant improvements to our equipment and manufacturing processes. The success of such innovation depends on our ability to correctly anticipate customer and consumer acceptance and trends, to obtain, maintain and enforce necessary intellectual property protections and to avoid infringing upon the intellectual property rights of others and to continue to deliver efficient and effective marketing across evolving media and mobile platforms with dynamic and increasingly more restrictive privacy requirements. We must also successfully respond to technological advances made by, and intellectual property rights granted to, competitors, customers and vendors. Failure to continually innovate, improve and respond to competitive moves, changing consumer habits and platform evolution, including the timely and effective adoption of emerging technologies, could compromise our competitive position and adversely impact our financial condition, results of operations or cash flows.
We must successfully manage ongoing acquisition, joint venture and divestiture activities.
As a company that manages a portfolio of consumer brands, our ongoing business model includes a certain level of acquisition, joint venture and divestiture activities. We must be able to successfully manage the impacts of these activities, while at the same time delivering against our business objectives. Specifically, our financial results have been, and in the future could be, adversely impacted by the dilutive impacts from the loss of earnings associated with divested brands or dissolution of joint ventures. Our results of operations and cash flows have been, and in the future could also be, impacted by acquisitions or joint venture activities, if: 1) changes in the cash flows or other market-based assumptions cause the value of acquired assets to fall below book value, or 2) we are not able to deliver the expected cost and growth synergies associated with such acquisitions and joint ventures, including as a result of integration and collaboration challenges, which could also result in an impairment of goodwill and intangible assets.
Our business results depend on our ability to successfully manage productivity improvements and ongoing organizational change, including attracting and retaining key talent as part of our overall succession planning.
Our financial projections assume certain ongoing productivity improvements and cost savings, including staffing adjustments and employee departures. Failure to deliver these planned productivity improvements and cost savings, while continuing to
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 8:
8 The Procter & Gamble Company
invest in business growth, could adversely impact our results of operations and cash flows. Additionally, successfully executing organizational change, management transitions at leadership levels of the Company and motivation and retention of key employees is critical to our business success. Factors that may affect our ability to attract and retain sufficient numbers of qualified employees include employee morale, our reputation, competition from other employers and availability of qualified individuals. Our success depends on identifying, developing and retaining key employees to provide uninterrupted leadership and direction for our business. This includes developing and retaining organizational capabilities in key growth markets where the depth of skilled or experienced employees may be limited and competition for these resources is intense as well as continuing the development and execution of robust leadership succession plans.
LEGAL & REGULATORY RISKS
We must successfully manage compliance with current and expanding laws and regulations, as well as manage new and pending legal and regulatory matters in the U.S. and abroad.
Our business is subject to a wide variety of laws and regulations across the countries in which we do business, including those laws and regulations involving intellectual property, product liability, product composition or formulation, manufacturing processes, packaging content or corporate responsibility for packaging and product disposal, marketing, antitrust and competition, privacy, cybersecurity and data protection, artificial intelligence, environmental (including increasing focus on the climate, nature, water and waste impacts of consumer packaged goods companies' operations and products), employment, healthcare, anti-bribery and anti-corruption (including interactions with health care professionals and government officials as well as corresponding internal controls and record-keeping requirements), trade (including tariffs, sanctions and export controls), tax, accounting and financial reporting or other matters. In addition, increasing governmental and societal attention to environmental, social and governance (ESG) matters, including expanding mandatory and voluntary reporting, diligence and disclosure on topics such as climate change, waste production, water usage, nature impacts, human capital, labor and risk oversight, could expand the nature, scope and complexity of matters that we are required to control, assess and report. These and other rapidly changing laws, regulations, policies and related interpretations as well as increased enforcement actions by various governmental and regulatory agencies, create challenges for the Company, may alter the environment in which we do business, may increase the ongoing costs and complexities of compliance including by requiring investments in technology or other compliance systems and may ultimately result in the need to cease manufacturing, sales or other business activities in certain jurisdictions, which could adversely impact our results of operations and cash flows. If we are unable to continue to meet these challenges and comply with all laws, regulations, policies and related interpretations, it could negatively impact our reputation and our business results. Additionally, we are currently, and in the future may be, subject to a number of inquiries, investigations, claims, proceedings and requests for information from governmental agencies or private parties, the adverse outcomes of which could harm our business. Failure to successfully manage these new or pending regulatory and legal matters and resolve such matters without significant liability or damage to our reputation may materially adversely impact our financial condition, results of operations and cash flows. Furthermore, if new or pending legal or regulatory matters result in fines or costs in excess of the amounts accrued to date, that may also materially impact our results of operations and financial position.
Changes in applicable tax laws and regulations and resolutions of tax disputes could negatively affect our financial results.
The Company is subject to taxation in the U.S. and numerous foreign jurisdictions. Changes in the various tax laws can and do occur. For example, in December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the U.S. Tax Act). The changes included in the U.S. Tax Act were broad and complex. Under the current U.S. presidential administration, comprehensive federal income tax reform has been proposed, including an increase in the U.S. Federal corporate income tax rate, elimination of certain investment incentives and an increase in U.S. taxation of non-U.S. earnings. While these proposals are controversial, likely to change during the legislative process and may prove difficult to enact as proposed in the current closely divided U.S. Congress, their impact could nonetheless be significant.
Additionally, longstanding international tax norms that determine each country's jurisdiction to tax cross-border international trade are subject to potential evolution. An outgrowth of the original Base Erosion and Profit Shifting (BEPS) project is a project undertaken by the approximately 140 member countries of the expanded Organisation for Economic Co-operation and Development (OECD) Inclusive Framework focused on "Addressing the Challenges of the Digitalization of the Economy." The breadth of this project extends beyond pure digital businesses and, as proposed, would likely impact a large portion of multinational businesses by potentially redefining jurisdictional taxation rights in market countries and establishing a global minimum tax. In December 2022, the European Union (EU) approved a directive requiring member states to incorporate a 15% global minimum tax into their respective domestic laws effective for fiscal years beginning on or after December 31, 2023. Most member states complied with the directive while some were permitted a delayed implementation. In addition, several non-EU countries have proposed and/or adopted legislation consistent with the global minimum tax framework. Important details of these minimum tax developments are still to be determined and, in some cases, enactment and timing remain uncertain.
Based on current legislation and available guidance, we do not anticipate the Pillar Two global minimum tax to have a material impact to our financial condition, results of operations, cash flows or effective tax rate in the fiscal year ending June 30, 2025. The Company continues to assess the overall impact of potential changes as developments occur, consistent with our practice to monitor all changes in tax laws. As the Pillar Two global minimum tax and other tax laws and related regulations are revised,
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The Procter & Gamble Company 7
from customers, consumers, employees, vendors, investors and other stakeholders, and we may suffer financial and reputational damage as a result. Additionally, we could be exposed to potential liability, litigation, governmental inquiries, reporting requirements, investigations or regulatory enforcement actions; and we could be subject to payment of fines or other penalties, legal claims by our suppliers, customers or employees and significant remediation costs.
Periodically, we and/or our suppliers also upgrade IT/OT systems or adopt new technologies, including those enabled by machine learning or artificial intelligence. If such a new system or technology does not function properly, provides flawed or inaccurate outputs or exposes us to increased cybersecurity breaches and failures, it could affect our ability to order materials, make and ship orders and process payments in addition to other operational and information integrity and loss issues. The costs and operational consequences of responding to the above items and implementing remediation measures could be significant and could adversely impact our results of operations and cash flows and generate negative publicity affecting Company reputation and relationships among consumers, customers and other business partners.
We must successfully manage the demand, supply and operational challenges associated with the effects of any future disease outbreak, including epidemics, pandemics or similar widespread public health concerns.
Our business may be negatively impacted by the fear of exposure to or actual effects of a disease outbreak, epidemic, pandemic or similar widespread public health concern. These impacts may include, but are not limited to:
•Significant reductions in demand or significant volatility in demand for one or more of our products, which may be caused by, among other things: the temporary inability of consumers to purchase our products due to illness, quarantine or other travel restrictions or financial hardship, shifts in demand away from one or more of our more discretionary or higher priced products to lower priced products or stockpiling or similar pantry-loading activity. If prolonged, such impacts can further increase the difficulty of business or operations planning and may adversely impact our results of operations and cash flows; or
•Significant changes in the political conditions in markets in which we manufacture, sell or distribute our products, including quarantines, import/export restrictions, price controls, or governmental or regulatory actions, closures or other restrictions that limit or close our operating and manufacturing facilities, restrict our employees' ability to travel or perform necessary business functions or otherwise prevent our third-party partners, suppliers or customers from sufficiently staffing operations.
Despite efforts to manage and remedy these impacts, their ultimate impact also depends on factors beyond our knowledge or control, including the duration and severity of any such outbreak as well as third-party actions taken to contain its spread and mitigate its public health effects.
BUSINESS STRATEGY & ORGANIZATIONAL RISKS
Our ability to meet our growth targets depends on successful product, marketing and operations innovation and successful responses to competitive innovation, evolving digital marketing and selling platforms and changing consumer habits.
We are a consumer products company that relies on continued global demand for our brands and products. Achieving our business results depends, in part, on successfully developing, introducing and marketing new products and on making significant improvements to our equipment and manufacturing processes. The success of such innovation depends on our ability to correctly anticipate customer and consumer acceptance and trends, to obtain, maintain and enforce necessary intellectual property protections and to avoid infringing upon the intellectual property rights of others and to continue to deliver efficient and effective marketing across evolving media and mobile platforms with dynamic and increasingly more restrictive privacy requirements. We must also successfully respond to technological advances made by, and intellectual property rights granted to, competitors, customers and vendors. Failure to continually innovate, improve and respond to competitive moves, changing consumer habits and platform evolution, including the timely and effective adoption of emerging technologies, could compromise our competitive position and adversely impact our financial condition, results of operations or cash flows.
We must successfully manage ongoing acquisition, joint venture and divestiture activities.
As a company that manages a portfolio of consumer brands, our ongoing business model includes a certain level of acquisition, joint venture and divestiture activities. We must be able to successfully manage the impacts of these activities, while at the same time delivering against our business objectives. Specifically, our financial results have been, and in the future could be, adversely impacted by the dilutive impacts from the loss of earnings associated with divested brands or dissolution of joint ventures. Our results of operations and cash flows have been, and in the future could also be, impacted by acquisitions or joint venture activities, if: 1) changes in the cash flows or other market-based assumptions cause the value of acquired assets to fall below book value, or 2) we are not able to deliver the expected cost and growth synergies associated with such acquisitions and joint ventures, including as a result of integration and collaboration challenges, which could also result in an impairment of goodwill and intangible assets.
Our business results depend on our ability to successfully manage productivity improvements and ongoing organizational change, including attracting and retaining key talent as part of our overall succession planning.
Our financial projections assume certain ongoing productivity improvements and cost savings, including staffing adjustments and employee departures. Failure to deliver these planned productivity improvements and cost savings, while continuing to
,
8 The Procter & Gamble Company
invest in business growth, could adversely impact our results of operations and cash flows. Additionally, successfully executing organizational change, management transitions at leadership levels of the Company and motivation and retention of key employees is critical to our business success. Factors that may affect our ability to attract and retain sufficient numbers of qualified employees include employee morale, our reputation, competition from other employers and availability of qualified individuals. Our success depends on identifying, developing and retaining key employees to provide uninterrupted leadership and direction for our business. This includes developing and retaining organizational capabilities in key growth markets where the depth of skilled or experienced employees may be limited and competition for these resources is intense as well as continuing the development and execution of robust leadership succession plans.
LEGAL & REGULATORY RISKS
We must successfully manage compliance with current and expanding laws and regulations, as well as manage new and pending legal and regulatory matters in the U.S. and abroad.
Our business is subject to a wide variety of laws and regulations across the countries in which we do business, including those laws and regulations involving intellectual property, product liability, product composition or formulation, manufacturing processes, packaging content or corporate responsibility for packaging and product disposal, marketing, antitrust and competition, privacy, cybersecurity and data protection, artificial intelligence, environmental (including increasing focus on the climate, nature, water and waste impacts of consumer packaged goods companies' operations and products), employment, healthcare, anti-bribery and anti-corruption (including interactions with health care professionals and government officials as well as corresponding internal controls and record-keeping requirements), trade (including tariffs, sanctions and export controls), tax, accounting and financial reporting or other matters. In addition, increasing governmental and societal attention to environmental, social and governance (ESG) matters, including expanding mandatory and voluntary reporting, diligence and disclosure on topics such as climate change, waste production, water usage, nature impacts, human capital, labor and risk oversight, could expand the nature, scope and complexity of matters that we are required to control, assess and report. These and other rapidly changing laws, regulations, policies and related interpretations as well as increased enforcement actions by various governmental and regulatory agencies, create challenges for the Company, may alter the environment in which we do business, may increase the ongoing costs and complexities of compliance including by requiring investments in technology or other compliance systems and may ultimately result in the need to cease manufacturing, sales or other business activities in certain jurisdictions, which could adversely impact our results of operations and cash flows. If we are unable to continue to meet these challenges and comply with all laws, regulations, policies and related interpretations, it could negatively impact our reputation and our business results. Additionally, we are currently, and in the future may be, subject to a number of inquiries, investigations, claims, proceedings and requests for information from governmental agencies or private parties, the adverse outcomes of which could harm our business. Failure to successfully manage these new or pending regulatory and legal matters and resolve such matters without significant liability or damage to our reputation may materially adversely impact our financial condition, results of operations and cash flows. Furthermore, if new or pending legal or regulatory matters result in fines or costs in excess of the amounts accrued to date, that may also materially impact our results of operations and financial position.
Changes in applicable tax laws and regulations and resolutions of tax disputes could negatively affect our financial results.
The Company is subject to taxation in the U.S. and numerous foreign jurisdictions. Changes in the various tax laws can and do occur. For example, in December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the U.S. Tax Act). The changes included in the U.S. Tax Act were broad and complex. Under the current U.S. presidential administration, comprehensive federal income tax reform has been proposed, including an increase in the U.S. Federal corporate income tax rate, elimination of certain investment incentives and an increase in U.S. taxation of non-U.S. earnings. While these proposals are controversial, likely to change during the legislative process and may prove difficult to enact as proposed in the current closely divided U.S. Congress, their impact could nonetheless be significant.
Additionally, longstanding international tax norms that determine each country's jurisdiction to tax cross-border international trade are subject to potential evolution. An outgrowth of the original Base Erosion and Profit Shifting (BEPS) project is a project undertaken by the approximately 140 member countries of the expanded Organisation for Economic Co-operation and Development (OECD) Inclusive Framework focused on "Addressing the Challenges of the Digitalization of the Economy." The breadth of this project extends beyond pure digital businesses and, as proposed, would likely impact a large portion of multinational businesses by potentially redefining jurisdictional taxation rights in market countries and establishing a global minimum tax. In December 2022, the European Union (EU) approved a directive requiring member states to incorporate a 15% global minimum tax into their respective domestic laws effective for fiscal years beginning on or after December 31, 2023. Most member states complied with the directive while some were permitted a delayed implementation. In addition, several non-EU countries have proposed and/or adopted legislation consistent with the global minimum tax framework. Important details of these minimum tax developments are still to be determined and, in some cases, enactment and timing remain uncertain.
Based on current legislation and available guidance, we do not anticipate the Pillar Two global minimum tax to have a material impact to our financial condition, results of operations, cash flows or effective tax rate in the fiscal year ending June 30, 2025. The Company continues to assess the overall impact of potential changes as developments occur, consistent with our practice to monitor all changes in tax laws. As the Pillar Two global minimum tax and other tax laws and related regulations are revised,
|
PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 7:
The Procter & Gamble Company 7
from customers, consumers, employees, vendors, investors and other stakeholders, and we may suffer financial and reputational damage as a result. Additionally, we could be exposed to potential liability, litigation, governmental inquiries, reporting requirements, investigations or regulatory enforcement actions; and we could be subject to payment of fines or other penalties, legal claims by our suppliers, customers or employees and significant remediation costs.
Periodically, we and/or our suppliers also upgrade IT/OT systems or adopt new technologies, including those enabled by machine learning or artificial intelligence. If such a new system or technology does not function properly, provides flawed or inaccurate outputs or exposes us to increased cybersecurity breaches and failures, it could affect our ability to order materials, make and ship orders and process payments in addition to other operational and information integrity and loss issues. The costs and operational consequences of responding to the above items and implementing remediation measures could be significant and could adversely impact our results of operations and cash flows and generate negative publicity affecting Company reputation and relationships among consumers, customers and other business partners.
We must successfully manage the demand, supply and operational challenges associated with the effects of any future disease outbreak, including epidemics, pandemics or similar widespread public health concerns.
Our business may be negatively impacted by the fear of exposure to or actual effects of a disease outbreak, epidemic, pandemic or similar widespread public health concern. These impacts may include, but are not limited to:
•Significant reductions in demand or significant volatility in demand for one or more of our products, which may be caused by, among other things: the temporary inability of consumers to purchase our products due to illness, quarantine or other travel restrictions or financial hardship, shifts in demand away from one or more of our more discretionary or higher priced products to lower priced products or stockpiling or similar pantry-loading activity. If prolonged, such impacts can further increase the difficulty of business or operations planning and may adversely impact our results of operations and cash flows; or
•Significant changes in the political conditions in markets in which we manufacture, sell or distribute our products, including quarantines, import/export restrictions, price controls, or governmental or regulatory actions, closures or other restrictions that limit or close our operating and manufacturing facilities, restrict our employees' ability to travel or perform necessary business functions or otherwise prevent our third-party partners, suppliers or customers from sufficiently staffing operations.
Despite efforts to manage and remedy these impacts, their ultimate impact also depends on factors beyond our knowledge or control, including the duration and severity of any such outbreak as well as third-party actions taken to contain its spread and mitigate its public health effects.
BUSINESS STRATEGY & ORGANIZATIONAL RISKS
Our ability to meet our growth targets depends on successful product, marketing and operations innovation and successful responses to competitive innovation, evolving digital marketing and selling platforms and changing consumer habits.
We are a consumer products company that relies on continued global demand for our brands and products. Achieving our business results depends, in part, on successfully developing, introducing and marketing new products and on making significant improvements to our equipment and manufacturing processes. The success of such innovation depends on our ability to correctly anticipate customer and consumer acceptance and trends, to obtain, maintain and enforce necessary intellectual property protections and to avoid infringing upon the intellectual property rights of others and to continue to deliver efficient and effective marketing across evolving media and mobile platforms with dynamic and increasingly more restrictive privacy requirements. We must also successfully respond to technological advances made by, and intellectual property rights granted to, competitors, customers and vendors. Failure to continually innovate, improve and respond to competitive moves, changing consumer habits and platform evolution, including the timely and effective adoption of emerging technologies, could compromise our competitive position and adversely impact our financial condition, results of operations or cash flows.
We must successfully manage ongoing acquisition, joint venture and divestiture activities.
As a company that manages a portfolio of consumer brands, our ongoing business model includes a certain level of acquisition, joint venture and divestiture activities. We must be able to successfully manage the impacts of these activities, while at the same time delivering against our business objectives. Specifically, our financial results have been, and in the future could be, adversely impacted by the dilutive impacts from the loss of earnings associated with divested brands or dissolution of joint ventures. Our results of operations and cash flows have been, and in the future could also be, impacted by acquisitions or joint venture activities, if: 1) changes in the cash flows or other market-based assumptions cause the value of acquired assets to fall below book value, or 2) we are not able to deliver the expected cost and growth synergies associated with such acquisitions and joint ventures, including as a result of integration and collaboration challenges, which could also result in an impairment of goodwill and intangible assets.
Our business results depend on our ability to successfully manage productivity improvements and ongoing organizational change, including attracting and retaining key talent as part of our overall succession planning.
Our financial projections assume certain ongoing productivity improvements and cost savings, including staffing adjustments and employee departures. Failure to deliver these planned productivity improvements and cost savings, while continuing to
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 8:
8 The Procter & Gamble Company
invest in business growth, could adversely impact our results of operations and cash flows. Additionally, successfully executing organizational change, management transitions at leadership levels of the Company and motivation and retention of key employees is critical to our business success. Factors that may affect our ability to attract and retain sufficient numbers of qualified employees include employee morale, our reputation, competition from other employers and availability of qualified individuals. Our success depends on identifying, developing and retaining key employees to provide uninterrupted leadership and direction for our business. This includes developing and retaining organizational capabilities in key growth markets where the depth of skilled or experienced employees may be limited and competition for these resources is intense as well as continuing the development and execution of robust leadership succession plans.
LEGAL & REGULATORY RISKS
We must successfully manage compliance with current and expanding laws and regulations, as well as manage new and pending legal and regulatory matters in the U.S. and abroad.
Our business is subject to a wide variety of laws and regulations across the countries in which we do business, including those laws and regulations involving intellectual property, product liability, product composition or formulation, manufacturing processes, packaging content or corporate responsibility for packaging and product disposal, marketing, antitrust and competition, privacy, cybersecurity and data protection, artificial intelligence, environmental (including increasing focus on the climate, nature, water and waste impacts of consumer packaged goods companies' operations and products), employment, healthcare, anti-bribery and anti-corruption (including interactions with health care professionals and government officials as well as corresponding internal controls and record-keeping requirements), trade (including tariffs, sanctions and export controls), tax, accounting and financial reporting or other matters. In addition, increasing governmental and societal attention to environmental, social and governance (ESG) matters, including expanding mandatory and voluntary reporting, diligence and disclosure on topics such as climate change, waste production, water usage, nature impacts, human capital, labor and risk oversight, could expand the nature, scope and complexity of matters that we are required to control, assess and report. These and other rapidly changing laws, regulations, policies and related interpretations as well as increased enforcement actions by various governmental and regulatory agencies, create challenges for the Company, may alter the environment in which we do business, may increase the ongoing costs and complexities of compliance including by requiring investments in technology or other compliance systems and may ultimately result in the need to cease manufacturing, sales or other business activities in certain jurisdictions, which could adversely impact our results of operations and cash flows. If we are unable to continue to meet these challenges and comply with all laws, regulations, policies and related interpretations, it could negatively impact our reputation and our business results. Additionally, we are currently, and in the future may be, subject to a number of inquiries, investigations, claims, proceedings and requests for information from governmental agencies or private parties, the adverse outcomes of which could harm our business. Failure to successfully manage these new or pending regulatory and legal matters and resolve such matters without significant liability or damage to our reputation may materially adversely impact our financial condition, results of operations and cash flows. Furthermore, if new or pending legal or regulatory matters result in fines or costs in excess of the amounts accrued to date, that may also materially impact our results of operations and financial position.
Changes in applicable tax laws and regulations and resolutions of tax disputes could negatively affect our financial results.
The Company is subject to taxation in the U.S. and numerous foreign jurisdictions. Changes in the various tax laws can and do occur. For example, in December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the U.S. Tax Act). The changes included in the U.S. Tax Act were broad and complex. Under the current U.S. presidential administration, comprehensive federal income tax reform has been proposed, including an increase in the U.S. Federal corporate income tax rate, elimination of certain investment incentives and an increase in U.S. taxation of non-U.S. earnings. While these proposals are controversial, likely to change during the legislative process and may prove difficult to enact as proposed in the current closely divided U.S. Congress, their impact could nonetheless be significant.
Additionally, longstanding international tax norms that determine each country's jurisdiction to tax cross-border international trade are subject to potential evolution. An outgrowth of the original Base Erosion and Profit Shifting (BEPS) project is a project undertaken by the approximately 140 member countries of the expanded Organisation for Economic Co-operation and Development (OECD) Inclusive Framework focused on "Addressing the Challenges of the Digitalization of the Economy." The breadth of this project extends beyond pure digital businesses and, as proposed, would likely impact a large portion of multinational businesses by potentially redefining jurisdictional taxation rights in market countries and establishing a global minimum tax. In December 2022, the European Union (EU) approved a directive requiring member states to incorporate a 15% global minimum tax into their respective domestic laws effective for fiscal years beginning on or after December 31, 2023. Most member states complied with the directive while some were permitted a delayed implementation. In addition, several non-EU countries have proposed and/or adopted legislation consistent with the global minimum tax framework. Important details of these minimum tax developments are still to be determined and, in some cases, enactment and timing remain uncertain.
Based on current legislation and available guidance, we do not anticipate the Pillar Two global minimum tax to have a material impact to our financial condition, results of operations, cash flows or effective tax rate in the fiscal year ending June 30, 2025. The Company continues to assess the overall impact of potential changes as developments occur, consistent with our practice to monitor all changes in tax laws. As the Pillar Two global minimum tax and other tax laws and related regulations are revised,
|
The Procter & Gamble Company 7
from customers, consumers, employees, vendors, investors and other stakeholders, and we may suffer financial and reputational damage as a result. Additionally, we could be exposed to potential liability, litigation, governmental inquiries, reporting requirements, investigations or regulatory enforcement actions; and we could be subject to payment of fines or other penalties, legal claims by our suppliers, customers or employees and significant remediation costs.
Periodically, we and/or our suppliers also upgrade IT/OT systems or adopt new technologies, including those enabled by machine learning or artificial intelligence. If such a new system or technology does not function properly, provides flawed or inaccurate outputs or exposes us to increased cybersecurity breaches and failures, it could affect our ability to order materials, make and ship orders and process payments in addition to other operational and information integrity and loss issues. The costs and operational consequences of responding to the above items and implementing remediation measures could be significant and could adversely impact our results of operations and cash flows and generate negative publicity affecting Company reputation and relationships among consumers, customers and other business partners.
We must successfully manage the demand, supply and operational challenges associated with the effects of any future disease outbreak, including epidemics, pandemics or similar widespread public health concerns.
Our business may be negatively impacted by the fear of exposure to or actual effects of a disease outbreak, epidemic, pandemic or similar widespread public health concern. These impacts may include, but are not limited to:
•Significant reductions in demand or significant volatility in demand for one or more of our products, which may be caused by, among other things: the temporary inability of consumers to purchase our products due to illness, quarantine or other travel restrictions or financial hardship, shifts in demand away from one or more of our more discretionary or higher priced products to lower priced products or stockpiling or similar pantry-loading activity. If prolonged, such impacts can further increase the difficulty of business or operations planning and may adversely impact our results of operations and cash flows; or
•Significant changes in the political conditions in markets in which we manufacture, sell or distribute our products, including quarantines, import/export restrictions, price controls, or governmental or regulatory actions, closures or other restrictions that limit or close our operating and manufacturing facilities, restrict our employees' ability to travel or perform necessary business functions or otherwise prevent our third-party partners, suppliers or customers from sufficiently staffing operations.
Despite efforts to manage and remedy these impacts, their ultimate impact also depends on factors beyond our knowledge or control, including the duration and severity of any such outbreak as well as third-party actions taken to contain its spread and mitigate its public health effects.
BUSINESS STRATEGY & ORGANIZATIONAL RISKS
Our ability to meet our growth targets depends on successful product, marketing and operations innovation and successful responses to competitive innovation, evolving digital marketing and selling platforms and changing consumer habits.
We are a consumer products company that relies on continued global demand for our brands and products. Achieving our business results depends, in part, on successfully developing, introducing and marketing new products and on making significant improvements to our equipment and manufacturing processes. The success of such innovation depends on our ability to correctly anticipate customer and consumer acceptance and trends, to obtain, maintain and enforce necessary intellectual property protections and to avoid infringing upon the intellectual property rights of others and to continue to deliver efficient and effective marketing across evolving media and mobile platforms with dynamic and increasingly more restrictive privacy requirements. We must also successfully respond to technological advances made by, and intellectual property rights granted to, competitors, customers and vendors. Failure to continually innovate, improve and respond to competitive moves, changing consumer habits and platform evolution, including the timely and effective adoption of emerging technologies, could compromise our competitive position and adversely impact our financial condition, results of operations or cash flows.
We must successfully manage ongoing acquisition, joint venture and divestiture activities.
As a company that manages a portfolio of consumer brands, our ongoing business model includes a certain level of acquisition, joint venture and divestiture activities. We must be able to successfully manage the impacts of these activities, while at the same time delivering against our business objectives. Specifically, our financial results have been, and in the future could be, adversely impacted by the dilutive impacts from the loss of earnings associated with divested brands or dissolution of joint ventures. Our results of operations and cash flows have been, and in the future could also be, impacted by acquisitions or joint venture activities, if: 1) changes in the cash flows or other market-based assumptions cause the value of acquired assets to fall below book value, or 2) we are not able to deliver the expected cost and growth synergies associated with such acquisitions and joint ventures, including as a result of integration and collaboration challenges, which could also result in an impairment of goodwill and intangible assets.
Our business results depend on our ability to successfully manage productivity improvements and ongoing organizational change, including attracting and retaining key talent as part of our overall succession planning.
Our financial projections assume certain ongoing productivity improvements and cost savings, including staffing adjustments and employee departures. Failure to deliver these planned productivity improvements and cost savings, while continuing to
,
8 The Procter & Gamble Company
invest in business growth, could adversely impact our results of operations and cash flows. Additionally, successfully executing organizational change, management transitions at leadership levels of the Company and motivation and retention of key employees is critical to our business success. Factors that may affect our ability to attract and retain sufficient numbers of qualified employees include employee morale, our reputation, competition from other employers and availability of qualified individuals. Our success depends on identifying, developing and retaining key employees to provide uninterrupted leadership and direction for our business. This includes developing and retaining organizational capabilities in key growth markets where the depth of skilled or experienced employees may be limited and competition for these resources is intense as well as continuing the development and execution of robust leadership succession plans.
LEGAL & REGULATORY RISKS
We must successfully manage compliance with current and expanding laws and regulations, as well as manage new and pending legal and regulatory matters in the U.S. and abroad.
Our business is subject to a wide variety of laws and regulations across the countries in which we do business, including those laws and regulations involving intellectual property, product liability, product composition or formulation, manufacturing processes, packaging content or corporate responsibility for packaging and product disposal, marketing, antitrust and competition, privacy, cybersecurity and data protection, artificial intelligence, environmental (including increasing focus on the climate, nature, water and waste impacts of consumer packaged goods companies' operations and products), employment, healthcare, anti-bribery and anti-corruption (including interactions with health care professionals and government officials as well as corresponding internal controls and record-keeping requirements), trade (including tariffs, sanctions and export controls), tax, accounting and financial reporting or other matters. In addition, increasing governmental and societal attention to environmental, social and governance (ESG) matters, including expanding mandatory and voluntary reporting, diligence and disclosure on topics such as climate change, waste production, water usage, nature impacts, human capital, labor and risk oversight, could expand the nature, scope and complexity of matters that we are required to control, assess and report. These and other rapidly changing laws, regulations, policies and related interpretations as well as increased enforcement actions by various governmental and regulatory agencies, create challenges for the Company, may alter the environment in which we do business, may increase the ongoing costs and complexities of compliance including by requiring investments in technology or other compliance systems and may ultimately result in the need to cease manufacturing, sales or other business activities in certain jurisdictions, which could adversely impact our results of operations and cash flows. If we are unable to continue to meet these challenges and comply with all laws, regulations, policies and related interpretations, it could negatively impact our reputation and our business results. Additionally, we are currently, and in the future may be, subject to a number of inquiries, investigations, claims, proceedings and requests for information from governmental agencies or private parties, the adverse outcomes of which could harm our business. Failure to successfully manage these new or pending regulatory and legal matters and resolve such matters without significant liability or damage to our reputation may materially adversely impact our financial condition, results of operations and cash flows. Furthermore, if new or pending legal or regulatory matters result in fines or costs in excess of the amounts accrued to date, that may also materially impact our results of operations and financial position.
Changes in applicable tax laws and regulations and resolutions of tax disputes could negatively affect our financial results.
The Company is subject to taxation in the U.S. and numerous foreign jurisdictions. Changes in the various tax laws can and do occur. For example, in December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the U.S. Tax Act). The changes included in the U.S. Tax Act were broad and complex. Under the current U.S. presidential administration, comprehensive federal income tax reform has been proposed, including an increase in the U.S. Federal corporate income tax rate, elimination of certain investment incentives and an increase in U.S. taxation of non-U.S. earnings. While these proposals are controversial, likely to change during the legislative process and may prove difficult to enact as proposed in the current closely divided U.S. Congress, their impact could nonetheless be significant.
Additionally, longstanding international tax norms that determine each country's jurisdiction to tax cross-border international trade are subject to potential evolution. An outgrowth of the original Base Erosion and Profit Shifting (BEPS) project is a project undertaken by the approximately 140 member countries of the expanded Organisation for Economic Co-operation and Development (OECD) Inclusive Framework focused on "Addressing the Challenges of the Digitalization of the Economy." The breadth of this project extends beyond pure digital businesses and, as proposed, would likely impact a large portion of multinational businesses by potentially redefining jurisdictional taxation rights in market countries and establishing a global minimum tax. In December 2022, the European Union (EU) approved a directive requiring member states to incorporate a 15% global minimum tax into their respective domestic laws effective for fiscal years beginning on or after December 31, 2023. Most member states complied with the directive while some were permitted a delayed implementation. In addition, several non-EU countries have proposed and/or adopted legislation consistent with the global minimum tax framework. Important details of these minimum tax developments are still to be determined and, in some cases, enactment and timing remain uncertain.
Based on current legislation and available guidance, we do not anticipate the Pillar Two global minimum tax to have a material impact to our financial condition, results of operations, cash flows or effective tax rate in the fiscal year ending June 30, 2025. The Company continues to assess the overall impact of potential changes as developments occur, consistent with our practice to monitor all changes in tax laws. As the Pillar Two global minimum tax and other tax laws and related regulations are revised,
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q_Ri007
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What are the potential risks associated with P&G's portfolio restructuring efforts, and how is the company managing these risks?
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Procter & Gamble’s (P&G) restructuring efforts face several key risks. Financially, the company expects to record post-tax restructuring charges of $1.0 to $1.5 billion due to foreign currency translation losses. In fiscal 2024, P&G incurred $659 million in restructuring costs, up from $329 million in 2023, including $216 million in non-cash charges for currency translation losses, particularly from operations in Nigeria.
Operationally, business continuity may be disrupted due to the liquidation of markets like Nigeria and Argentina, affecting supply chains and customer relations. Significant asset write-downs are involved.
Execution risks also arise from the complexity of restructuring, with annual costs historically ranging between $250 to $500 million. P&G mitigates these risks by implementing structured financial controls, detailed operational oversight, and a focus on optimizing manufacturing and workforce costs to ensure efficiency and competitiveness during transitions.
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Risk
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18, 24; 45, 46
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0000080424-24-000083;0000080424-24-000083
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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.;Item 8. Financial Statements and Supplementary Data.
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PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 18:
18 The Procter & Gamble Company
RECENT DEVELOPMENTS
Limited Market Portfolio Restructuring
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company announced that it expected to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 million after tax for accumulated currency translation losses previously included in Accumulated other comprehensive income/(loss). On July 1, 2024, the Company completed the divestiture of its business in Argentina. The Company expects to record a non-cash charge of approximately $750 million for accumulated currency translation losses in the first quarter of the fiscal year ending June 30, 2025. Consistent with our historical policies for ongoing restructuring-type activities, resulting charges were funded by and included within Corporate for segment reporting. Restructuring charges above the normal ongoing level of restructuring costs were reported as non-core charges. For more details on the restructuring program, refer to Note 3 to the Consolidated Financial Statements.
Intangible Asset Impairment
During the fiscal year ended June 30, 2024, the Company recorded a $1.3 billion before tax ($1.0 billion after tax) non-cash impairment charge on an indefinite-lived intangible asset acquired as part of the Company's 2005 acquisition of The Gillette Company. The impairment charge arose from a reduction in the estimated fair value of the Gillette indefinite-lived intangible asset due to a higher discount rate, weakening of several currencies relative to the U.S. dollar and the impact of the non-core restructuring program described above. This impairment charge adjusted the carrying value of the Gillette indefinite-lived intangible asset to fair value. For a more detailed discussion of the Gillette impairment, refer to Note 4 to the Consolidated Financial Statements.
SUMMARY OF 2024 RESULTS
| | | | | | | | | | | | |
|---:|:----------------------------------------------|:-------|:-------|:-----|:-------|:----------------------|:-------|:---|:---|:---|:---|
| 1 | Amounts in millions, except per share amounts | 2024 | | 2023 | | Change vs. Prior Year | | | | | |
| 2 | Net sales | $ | 84,039 | | | $ | 82,006 | | | 2 | % |
| 3 | Operating income | 18,545 | | | 18,134 | | | 2 | % | | |
| 4 | Net earnings | 14,974 | | | 14,738 | | | 2 | % | | |
| 5 | Net earnings attributable to Procter & Gamble | 14,879 | | | 14,653 | | | 2 | % | | |
| 6 | Diluted net earnings per common share | 6.02 | | | 5.90 | | | 2 | % | | |
| 7 | Core earnings per share | 6.59 | | | 5.90 | | | 12 | % | | |
| 8 | Cash flow from operating activities | 19,846 | | | 16,848 | | | 18 | % | | |
•Net sales increased 2% to $84.0 billion versus the prior year. The net sales growth was driven by mid-single-digit increases in Health Care, Fabric & Home Care and Grooming and a low single-digit increase in Beauty. Net Sales were unchanged in Baby, Feminine & Family Care. Organic sales, which exclude the impact of acquisitions and divestitures and foreign exchange, increased 4%. Organic sales increased high single digits in Grooming, mid-single digits in Fabric & Home Care and Health Care and low single digits in Beauty and Baby, Feminine & Family Care.
•Operating income increased $411 million, or 2%, to $18.5 billion due to the increase in net sales, partially offset by the non-cash impairment charge of $1.3 billion related to the Gillette intangible asset.
•Net earnings increased $236 million, or 2%, to $15.0 billion due to the increase in operating income, partially offset by a higher effective tax rate. Foreign exchange impacts reduced net earnings by approximately $589 million.
•Net earnings attributable to Procter & Gamble increased $226 million, or 2%, to $14.9 billion.
•Diluted EPS increased 2% to $6.02 due to the increase in net earnings. Core EPS, which excludes the charge for the Gillette intangible asset impairment and incremental restructuring charges, increased 12% to $6.59.
•Cash flow from operating activities was $19.8 billion.
◦ Adjusted free cash flow, which is operating cash flow less capital expenditures and certain other impacts, was $16.9 billion.
◦ Adjusted free cash flow productivity, which is the ratio of adjusted free cash flow to net earnings excluding the Gillette intangible asset impairment charge and a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria, was 105%.
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 24:
24 The Procter & Gamble Company
Europe (due to increased pricing), Latin America (due to increased competitive activity) and IMEA (due to increased pricing), partially offset by growth in North America (due to increased marketing support and distribution gains). Organic sales increased mid-single digits driven by mid-single-digit increases in Europe and IMEA and a low single-digit increase in North America. Market share of the feminine care category increased 0.2 points.
•Net sales in Family Care, which is predominantly a North American business, increased low single digits driven by a unit volume increase (due to market growth and increased marketing support) and higher pricing, partially offset by unfavorable product mix (due to growth of larger pack sizes with lower than category-average selling prices). Organic sales also increased low single digits. North America's share of the family care category decreased 0.4 points.
Net earnings increased 13% to $4.0 billion due to a 230 basis-point increase in net earnings margin. Net earnings margin increased primarily due to an increase in gross margin, partially offset by an increase in SG&A as a percentage of net sales. Gross margin increased primarily due to lower commodity costs, productivity savings and increased pricing, partially offset by unfavorable foreign exchange. SG&A as a percentage of net sales increased due to an increase in marketing and overhead spending.
CORPORATE
| | | | | |
|---:|:--------------------|:---------|:-------|:----------------|
| 1 | ($ millions) | 2024 | 2023 | Change vs. 2023 |
| 2 | Net sales | $601 | $765 | (21)% |
| 3 | Net earnings/(loss) | $(1,430) | $(399) | N/A |
Corporate includes certain operating and non-operating activities not allocated to specific business segments. These include but are not limited to incidental businesses managed at the corporate level, gains and losses related to certain divested brands or businesses, impacts from various financing and investing activities, impacts related to employee benefits, asset impairments and restructuring activities including manufacturing and workforce optimization. Corporate also includes reconciling items to adjust the accounting policies used within the reportable segments to U.S. GAAP. The most notable ongoing reconciling item is income taxes, which adjusts the blended statutory rates that are reflected in the reportable segments to the overall Company effective tax rate.
Corporate net sales decreased $164 million to $601 million due to a decrease in net sales of incidental businesses managed at the corporate level. Corporate net earnings decreased $1.0 billion due to a loss of $1.4 billion due primarily to the impairment charge of the Gillette intangible asset and incremental restructuring charges.
Restructuring Program to Deliver Productivity and Cost Savings
The Company has historically had an ongoing restructuring program with annual spending in the range of $250 to $500 million before tax. On December 5, 2023, the Company announced an incremental limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria.
In fiscal 2024, the Company incurred before tax restructuring costs of $659 million, which include foreign currency translation losses recognized as a non-cash charge of approximately $216 million due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria. Restructuring accruals of $166 million as of June 30, 2024, are classified as current liabilities. Excluding the non-cash charges of foreign currency translation losses for certain Enterprise Markets, including Nigeria, approximately 64% of the restructuring charges incurred in fiscal 2024 either have been or will be settled with cash. Consistent with our policies for restructuring-type activities, the resulting charges are funded by and included within Corporate for segment reporting.
Savings generated from the Company's restructuring program are difficult to estimate, given the nature of the activities, the timing of the execution and the degree of reinvestment. In addition to our restructuring programs, we have additional ongoing savings efforts in our supply chain, marketing and overhead areas that yield additional benefits to our operating margins. Refer to Note 3 to the Consolidated Financial Statements for more details on the restructuring program.
CASH FLOW, FINANCIAL CONDITION AND LIQUIDITY
We believe our financial condition continues to be of high quality, as evidenced by our ability to generate substantial cash from operations and to readily access capital markets at competitive rates.
Operating cash flow provides the primary source of cash to fund operating needs and capital expenditures. Excess operating cash is used first to fund shareholder dividends. Other discretionary uses include share repurchases and acquisitions to complement our portfolio of businesses, brands and geographies. As necessary, we may supplement operating cash flow with debt to fund these activities. The overall cash position of the Company reflects our strong business results and a global cash management strategy that takes into account liquidity management, economic factors and tax considerations.
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 45:
The Procter & Gamble Company 45
NOTE 3
SUPPLEMENTAL FINANCIAL INFORMATION
The components of property, plant and equipment were as follows:
| | | | | | | | |
|---:|:------------------------------------|:---------|:-------|:-----|:---------|:---|:-------|
| 1 | As of June 30 | 2024 | | 2023 | | | |
| 2 | PROPERTY, PLANT AND EQUIPMENT | | | | | | |
| 3 | Machinery and equipment | $ | 37,507 | | | $ | 36,521 |
| 4 | Buildings | 8,534 | | | 8,277 | | |
| 5 | Construction in progress | 3,126 | | | 2,980 | | |
| 6 | Land | 895 | | | 867 | | |
| 7 | TOTAL PROPERTY, PLANT AND EQUIPMENT | 50,063 | | | 48,645 | | |
| 8 | Accumulated depreciation | (27,911) | | | (26,736) | | |
| 9 | PROPERTY, PLANT AND EQUIPMENT, NET | $ | 22,152 | | | $ | 21,909 |
Selected components of current and noncurrent liabilities were as follows:| | | | | | | | |
|---:|:----------------------------------------|:------|:-------|:-----|:------|:---|:-------|
| 1 | As of June 30 | 2024 | | 2023 | | | |
| 2 | ACCRUED AND OTHER LIABILITIES - CURRENT | | | | | | |
| 3 | Accrued marketing and promotion | $ | 4,172 | | | $ | 3,894 |
| 4 | Accrued compensation | 2,161 | | | 2,030 | | |
| 5 | Taxes payable | 1,042 | | | 828 | | |
| 6 | Accrued interest | 282 | | | 235 | | |
| 7 | Lease liabilities | 243 | | | 222 | | |
| 8 | Restructuring reserves | 166 | | | 174 | | |
| 9 | Derivative liabilities | 54 | | | 631 | | |
| 10 | Other | 2,953 | | | 2,915 | | |
| 11 | TOTAL | $ | 11,073 | | | $ | 10,929 |
| 13 | OTHER NONCURRENT LIABILITIES | | | | | | |
| 14 | Pension benefit obligations | $ | 2,884 | | | $ | 3,116 |
| 15 | Uncertain tax positions | 723 | | | 622 | | |
| 16 | Lease liabilities | 666 | | | 595 | | |
| 17 | Other retiree benefit obligations | 653 | | | 690 | | |
| 18 | U.S. Tax Act transitional tax payable | 592 | | | 1,154 | | |
| 19 | Derivative liabilities | 325 | | | 445 | | |
| 20 | Other | 555 | | | 530 | | |
| 21 | TOTAL | $ | 6,398 | | | $ | 7,152 |
RESTRUCTURING PROGRAM
The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before tax costs incurred under ongoing programs have generally ranged from $250 to $500 annually.
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company expects to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
The Company incurred total restructuring charges of $659 and $329 for the fiscal years ended June 30, 2024 and 2023. Of the charges incurred for fiscal year 2024, $248 were recorded in Costs of products sold, $155 in SG&A and $255 in Other non-operating income, net. Of the charges incurred in fiscal year 2023, $160 were recorded in Costs of products sold, $160 in SG&A and $9 in Other non-operating income, net.
Amounts in millions of dollars except per share amounts or as otherwise specified.
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 46:
46 The Procter & Gamble Company
The following table presents restructuring activity for the fiscal years ended June 30, 2024 and 2023:
| | | | | | | | | | | |
|---:|:----------------------|:-----------------|:--------------------|:------------|:------|:------|:------|:---|:---|:----|
| 1 | | Separation Costs | Asset-Related Costs | Other Costs | Total | | | | | |
| 2 | RESERVE JUNE 30, 2022 | $ | 121 | | $ | - | $ | 26 | $ | 147 |
| 3 | Cost incurred | 175 | | 43 | | 111 | 329 | | | |
| 4 | Cost paid/settled | (141) | | (43) | | (118) | (302) | | | |
| 5 | RESERVE JUNE 30, 2023 | 155 | | - | | 19 | 174 | | | |
| 6 | Cost incurred | 202 | | 101 | | 355 | 659 | | | |
| 7 | Cost paid/settled | (224) | | (101) | | (342) | (667) | | | |
| 8 | RESERVE JUNE 30, 2024 | $ | 133 | | $ | - | $ | 32 | $ | 166 |
Separation Costs
Employee separation costs relate to severance packages that are primarily voluntary and the amounts calculated are based on salary levels and past service periods.
Asset-Related Costs
Asset-related costs consist of both asset write-downs and accelerated depreciation for manufacturing and facilities consolidations. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets are written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period.
Other Costs
Other restructuring-type charges are incurred as a direct result of the restructuring plan. Such charges include accumulated foreign currency translation losses, asset removal and termination of contracts related to Enterprise Market portfolio restructuring. As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss).
Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments:
| | | | | | | | | |
|---:|:-----------------------------|:-----|:-----|:-----|:---|:----|:---|:----|
| 1 | Fiscal years ended June 30 | 2024 | 2023 | 2022 | | | | |
| 2 | Beauty | $ | 43 | | $ | 15 | $ | 11 |
| 3 | Grooming | 76 | | 17 | | 14 | | |
| 4 | Health Care | 33 | | 28 | | 32 | | |
| 5 | Fabric & Home Care | 84 | | 87 | | 42 | | |
| 6 | Baby, Feminine & Family Care | 50 | | 21 | | 83 | | |
| 7 | Corporate (1) | 371 | | 161 | | 71 | | |
| 8 | TOTAL | $ | 659 | | $ | 329 | $ | 253 |
(1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities.
Amounts in millions of dollars except per share amounts or as otherwise specified.
|
18 The Procter & Gamble Company
RECENT DEVELOPMENTS
Limited Market Portfolio Restructuring
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company announced that it expected to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 million after tax for accumulated currency translation losses previously included in Accumulated other comprehensive income/(loss). On July 1, 2024, the Company completed the divestiture of its business in Argentina. The Company expects to record a non-cash charge of approximately $750 million for accumulated currency translation losses in the first quarter of the fiscal year ending June 30, 2025. Consistent with our historical policies for ongoing restructuring-type activities, resulting charges were funded by and included within Corporate for segment reporting. Restructuring charges above the normal ongoing level of restructuring costs were reported as non-core charges. For more details on the restructuring program, refer to Note 3 to the Consolidated Financial Statements.
Intangible Asset Impairment
During the fiscal year ended June 30, 2024, the Company recorded a $1.3 billion before tax ($1.0 billion after tax) non-cash impairment charge on an indefinite-lived intangible asset acquired as part of the Company's 2005 acquisition of The Gillette Company. The impairment charge arose from a reduction in the estimated fair value of the Gillette indefinite-lived intangible asset due to a higher discount rate, weakening of several currencies relative to the U.S. dollar and the impact of the non-core restructuring program described above. This impairment charge adjusted the carrying value of the Gillette indefinite-lived intangible asset to fair value. For a more detailed discussion of the Gillette impairment, refer to Note 4 to the Consolidated Financial Statements.
SUMMARY OF 2024 RESULTS
| | | | | | | | | | | | |
|---:|:----------------------------------------------|:-------|:-------|:-----|:-------|:----------------------|:-------|:---|:---|:---|:---|
| 1 | Amounts in millions, except per share amounts | 2024 | | 2023 | | Change vs. Prior Year | | | | | |
| 2 | Net sales | $ | 84,039 | | | $ | 82,006 | | | 2 | % |
| 3 | Operating income | 18,545 | | | 18,134 | | | 2 | % | | |
| 4 | Net earnings | 14,974 | | | 14,738 | | | 2 | % | | |
| 5 | Net earnings attributable to Procter & Gamble | 14,879 | | | 14,653 | | | 2 | % | | |
| 6 | Diluted net earnings per common share | 6.02 | | | 5.90 | | | 2 | % | | |
| 7 | Core earnings per share | 6.59 | | | 5.90 | | | 12 | % | | |
| 8 | Cash flow from operating activities | 19,846 | | | 16,848 | | | 18 | % | | |
•Net sales increased 2% to $84.0 billion versus the prior year. The net sales growth was driven by mid-single-digit increases in Health Care, Fabric & Home Care and Grooming and a low single-digit increase in Beauty. Net Sales were unchanged in Baby, Feminine & Family Care. Organic sales, which exclude the impact of acquisitions and divestitures and foreign exchange, increased 4%. Organic sales increased high single digits in Grooming, mid-single digits in Fabric & Home Care and Health Care and low single digits in Beauty and Baby, Feminine & Family Care.
•Operating income increased $411 million, or 2%, to $18.5 billion due to the increase in net sales, partially offset by the non-cash impairment charge of $1.3 billion related to the Gillette intangible asset.
•Net earnings increased $236 million, or 2%, to $15.0 billion due to the increase in operating income, partially offset by a higher effective tax rate. Foreign exchange impacts reduced net earnings by approximately $589 million.
•Net earnings attributable to Procter & Gamble increased $226 million, or 2%, to $14.9 billion.
•Diluted EPS increased 2% to $6.02 due to the increase in net earnings. Core EPS, which excludes the charge for the Gillette intangible asset impairment and incremental restructuring charges, increased 12% to $6.59.
•Cash flow from operating activities was $19.8 billion.
◦ Adjusted free cash flow, which is operating cash flow less capital expenditures and certain other impacts, was $16.9 billion.
◦ Adjusted free cash flow productivity, which is the ratio of adjusted free cash flow to net earnings excluding the Gillette intangible asset impairment charge and a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria, was 105%.
,
24 The Procter & Gamble Company
Europe (due to increased pricing), Latin America (due to increased competitive activity) and IMEA (due to increased pricing), partially offset by growth in North America (due to increased marketing support and distribution gains). Organic sales increased mid-single digits driven by mid-single-digit increases in Europe and IMEA and a low single-digit increase in North America. Market share of the feminine care category increased 0.2 points.
•Net sales in Family Care, which is predominantly a North American business, increased low single digits driven by a unit volume increase (due to market growth and increased marketing support) and higher pricing, partially offset by unfavorable product mix (due to growth of larger pack sizes with lower than category-average selling prices). Organic sales also increased low single digits. North America's share of the family care category decreased 0.4 points.
Net earnings increased 13% to $4.0 billion due to a 230 basis-point increase in net earnings margin. Net earnings margin increased primarily due to an increase in gross margin, partially offset by an increase in SG&A as a percentage of net sales. Gross margin increased primarily due to lower commodity costs, productivity savings and increased pricing, partially offset by unfavorable foreign exchange. SG&A as a percentage of net sales increased due to an increase in marketing and overhead spending.
CORPORATE
| | | | | |
|---:|:--------------------|:---------|:-------|:----------------|
| 1 | ($ millions) | 2024 | 2023 | Change vs. 2023 |
| 2 | Net sales | $601 | $765 | (21)% |
| 3 | Net earnings/(loss) | $(1,430) | $(399) | N/A |
Corporate includes certain operating and non-operating activities not allocated to specific business segments. These include but are not limited to incidental businesses managed at the corporate level, gains and losses related to certain divested brands or businesses, impacts from various financing and investing activities, impacts related to employee benefits, asset impairments and restructuring activities including manufacturing and workforce optimization. Corporate also includes reconciling items to adjust the accounting policies used within the reportable segments to U.S. GAAP. The most notable ongoing reconciling item is income taxes, which adjusts the blended statutory rates that are reflected in the reportable segments to the overall Company effective tax rate.
Corporate net sales decreased $164 million to $601 million due to a decrease in net sales of incidental businesses managed at the corporate level. Corporate net earnings decreased $1.0 billion due to a loss of $1.4 billion due primarily to the impairment charge of the Gillette intangible asset and incremental restructuring charges.
Restructuring Program to Deliver Productivity and Cost Savings
The Company has historically had an ongoing restructuring program with annual spending in the range of $250 to $500 million before tax. On December 5, 2023, the Company announced an incremental limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria.
In fiscal 2024, the Company incurred before tax restructuring costs of $659 million, which include foreign currency translation losses recognized as a non-cash charge of approximately $216 million due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria. Restructuring accruals of $166 million as of June 30, 2024, are classified as current liabilities. Excluding the non-cash charges of foreign currency translation losses for certain Enterprise Markets, including Nigeria, approximately 64% of the restructuring charges incurred in fiscal 2024 either have been or will be settled with cash. Consistent with our policies for restructuring-type activities, the resulting charges are funded by and included within Corporate for segment reporting.
Savings generated from the Company's restructuring program are difficult to estimate, given the nature of the activities, the timing of the execution and the degree of reinvestment. In addition to our restructuring programs, we have additional ongoing savings efforts in our supply chain, marketing and overhead areas that yield additional benefits to our operating margins. Refer to Note 3 to the Consolidated Financial Statements for more details on the restructuring program.
CASH FLOW, FINANCIAL CONDITION AND LIQUIDITY
We believe our financial condition continues to be of high quality, as evidenced by our ability to generate substantial cash from operations and to readily access capital markets at competitive rates.
Operating cash flow provides the primary source of cash to fund operating needs and capital expenditures. Excess operating cash is used first to fund shareholder dividends. Other discretionary uses include share repurchases and acquisitions to complement our portfolio of businesses, brands and geographies. As necessary, we may supplement operating cash flow with debt to fund these activities. The overall cash position of the Company reflects our strong business results and a global cash management strategy that takes into account liquidity management, economic factors and tax considerations.
,
The Procter & Gamble Company 45
NOTE 3
SUPPLEMENTAL FINANCIAL INFORMATION
The components of property, plant and equipment were as follows:
| | | | | | | | |
|---:|:------------------------------------|:---------|:-------|:-----|:---------|:---|:-------|
| 1 | As of June 30 | 2024 | | 2023 | | | |
| 2 | PROPERTY, PLANT AND EQUIPMENT | | | | | | |
| 3 | Machinery and equipment | $ | 37,507 | | | $ | 36,521 |
| 4 | Buildings | 8,534 | | | 8,277 | | |
| 5 | Construction in progress | 3,126 | | | 2,980 | | |
| 6 | Land | 895 | | | 867 | | |
| 7 | TOTAL PROPERTY, PLANT AND EQUIPMENT | 50,063 | | | 48,645 | | |
| 8 | Accumulated depreciation | (27,911) | | | (26,736) | | |
| 9 | PROPERTY, PLANT AND EQUIPMENT, NET | $ | 22,152 | | | $ | 21,909 |
Selected components of current and noncurrent liabilities were as follows:| | | | | | | | |
|---:|:----------------------------------------|:------|:-------|:-----|:------|:---|:-------|
| 1 | As of June 30 | 2024 | | 2023 | | | |
| 2 | ACCRUED AND OTHER LIABILITIES - CURRENT | | | | | | |
| 3 | Accrued marketing and promotion | $ | 4,172 | | | $ | 3,894 |
| 4 | Accrued compensation | 2,161 | | | 2,030 | | |
| 5 | Taxes payable | 1,042 | | | 828 | | |
| 6 | Accrued interest | 282 | | | 235 | | |
| 7 | Lease liabilities | 243 | | | 222 | | |
| 8 | Restructuring reserves | 166 | | | 174 | | |
| 9 | Derivative liabilities | 54 | | | 631 | | |
| 10 | Other | 2,953 | | | 2,915 | | |
| 11 | TOTAL | $ | 11,073 | | | $ | 10,929 |
| 13 | OTHER NONCURRENT LIABILITIES | | | | | | |
| 14 | Pension benefit obligations | $ | 2,884 | | | $ | 3,116 |
| 15 | Uncertain tax positions | 723 | | | 622 | | |
| 16 | Lease liabilities | 666 | | | 595 | | |
| 17 | Other retiree benefit obligations | 653 | | | 690 | | |
| 18 | U.S. Tax Act transitional tax payable | 592 | | | 1,154 | | |
| 19 | Derivative liabilities | 325 | | | 445 | | |
| 20 | Other | 555 | | | 530 | | |
| 21 | TOTAL | $ | 6,398 | | | $ | 7,152 |
RESTRUCTURING PROGRAM
The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before tax costs incurred under ongoing programs have generally ranged from $250 to $500 annually.
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company expects to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
The Company incurred total restructuring charges of $659 and $329 for the fiscal years ended June 30, 2024 and 2023. Of the charges incurred for fiscal year 2024, $248 were recorded in Costs of products sold, $155 in SG&A and $255 in Other non-operating income, net. Of the charges incurred in fiscal year 2023, $160 were recorded in Costs of products sold, $160 in SG&A and $9 in Other non-operating income, net.
Amounts in millions of dollars except per share amounts or as otherwise specified.
,
46 The Procter & Gamble Company
The following table presents restructuring activity for the fiscal years ended June 30, 2024 and 2023:
| | | | | | | | | | | |
|---:|:----------------------|:-----------------|:--------------------|:------------|:------|:------|:------|:---|:---|:----|
| 1 | | Separation Costs | Asset-Related Costs | Other Costs | Total | | | | | |
| 2 | RESERVE JUNE 30, 2022 | $ | 121 | | $ | - | $ | 26 | $ | 147 |
| 3 | Cost incurred | 175 | | 43 | | 111 | 329 | | | |
| 4 | Cost paid/settled | (141) | | (43) | | (118) | (302) | | | |
| 5 | RESERVE JUNE 30, 2023 | 155 | | - | | 19 | 174 | | | |
| 6 | Cost incurred | 202 | | 101 | | 355 | 659 | | | |
| 7 | Cost paid/settled | (224) | | (101) | | (342) | (667) | | | |
| 8 | RESERVE JUNE 30, 2024 | $ | 133 | | $ | - | $ | 32 | $ | 166 |
Separation Costs
Employee separation costs relate to severance packages that are primarily voluntary and the amounts calculated are based on salary levels and past service periods.
Asset-Related Costs
Asset-related costs consist of both asset write-downs and accelerated depreciation for manufacturing and facilities consolidations. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets are written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period.
Other Costs
Other restructuring-type charges are incurred as a direct result of the restructuring plan. Such charges include accumulated foreign currency translation losses, asset removal and termination of contracts related to Enterprise Market portfolio restructuring. As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss).
Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments:
| | | | | | | | | |
|---:|:-----------------------------|:-----|:-----|:-----|:---|:----|:---|:----|
| 1 | Fiscal years ended June 30 | 2024 | 2023 | 2022 | | | | |
| 2 | Beauty | $ | 43 | | $ | 15 | $ | 11 |
| 3 | Grooming | 76 | | 17 | | 14 | | |
| 4 | Health Care | 33 | | 28 | | 32 | | |
| 5 | Fabric & Home Care | 84 | | 87 | | 42 | | |
| 6 | Baby, Feminine & Family Care | 50 | | 21 | | 83 | | |
| 7 | Corporate (1) | 371 | | 161 | | 71 | | |
| 8 | TOTAL | $ | 659 | | $ | 329 | $ | 253 |
(1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities.
Amounts in millions of dollars except per share amounts or as otherwise specified.
|
PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 18:
18 The Procter & Gamble Company
RECENT DEVELOPMENTS
Limited Market Portfolio Restructuring
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company announced that it expected to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 million after tax for accumulated currency translation losses previously included in Accumulated other comprehensive income/(loss). On July 1, 2024, the Company completed the divestiture of its business in Argentina. The Company expects to record a non-cash charge of approximately $750 million for accumulated currency translation losses in the first quarter of the fiscal year ending June 30, 2025. Consistent with our historical policies for ongoing restructuring-type activities, resulting charges were funded by and included within Corporate for segment reporting. Restructuring charges above the normal ongoing level of restructuring costs were reported as non-core charges. For more details on the restructuring program, refer to Note 3 to the Consolidated Financial Statements.
Intangible Asset Impairment
During the fiscal year ended June 30, 2024, the Company recorded a $1.3 billion before tax ($1.0 billion after tax) non-cash impairment charge on an indefinite-lived intangible asset acquired as part of the Company's 2005 acquisition of The Gillette Company. The impairment charge arose from a reduction in the estimated fair value of the Gillette indefinite-lived intangible asset due to a higher discount rate, weakening of several currencies relative to the U.S. dollar and the impact of the non-core restructuring program described above. This impairment charge adjusted the carrying value of the Gillette indefinite-lived intangible asset to fair value. For a more detailed discussion of the Gillette impairment, refer to Note 4 to the Consolidated Financial Statements.
SUMMARY OF 2024 RESULTS
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Amounts in millions, except per share amounts</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">Change vs. Prior Year</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>84,039 </td><td></td><td colspan="3"></td><td>$</td><td>82,006 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Operating income</td><td colspan="2">18,545 </td><td></td><td colspan="3"></td><td colspan="2">18,134 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Net earnings</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">14,738 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Net earnings attributable to Procter & Gamble</td><td colspan="2">14,879 </td><td></td><td colspan="3"></td><td colspan="2">14,653 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Diluted net earnings per common share</td><td colspan="2">6.02 </td><td></td><td colspan="3"></td><td colspan="2">5.90 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Core earnings per share</td><td colspan="2">6.59 </td><td></td><td colspan="3"></td><td colspan="2">5.90 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td>%</td></tr><tr><td colspan="3">Cash flow from operating activities</td><td colspan="2">19,846 </td><td></td><td colspan="3"></td><td colspan="2">16,848 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td>%</td></tr></table>
•Net sales increased 2% to $84.0 billion versus the prior year. The net sales growth was driven by mid-single-digit increases in Health Care, Fabric & Home Care and Grooming and a low single-digit increase in Beauty. Net Sales were unchanged in Baby, Feminine & Family Care. Organic sales, which exclude the impact of acquisitions and divestitures and foreign exchange, increased 4%. Organic sales increased high single digits in Grooming, mid-single digits in Fabric & Home Care and Health Care and low single digits in Beauty and Baby, Feminine & Family Care.
•Operating income increased $411 million, or 2%, to $18.5 billion due to the increase in net sales, partially offset by the non-cash impairment charge of $1.3 billion related to the Gillette intangible asset.
•Net earnings increased $236 million, or 2%, to $15.0 billion due to the increase in operating income, partially offset by a higher effective tax rate. Foreign exchange impacts reduced net earnings by approximately $589 million.
•Net earnings attributable to Procter & Gamble increased $226 million, or 2%, to $14.9 billion.
•Diluted EPS increased 2% to $6.02 due to the increase in net earnings. Core EPS, which excludes the charge for the Gillette intangible asset impairment and incremental restructuring charges, increased 12% to $6.59.
•Cash flow from operating activities was $19.8 billion.
◦ Adjusted free cash flow, which is operating cash flow less capital expenditures and certain other impacts, was $16.9 billion.
◦ Adjusted free cash flow productivity, which is the ratio of adjusted free cash flow to net earnings excluding the Gillette intangible asset impairment charge and a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria, was 105%.
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 24:
24 The Procter & Gamble Company
Europe (due to increased pricing), Latin America (due to increased competitive activity) and IMEA (due to increased pricing), partially offset by growth in North America (due to increased marketing support and distribution gains). Organic sales increased mid-single digits driven by mid-single-digit increases in Europe and IMEA and a low single-digit increase in North America. Market share of the feminine care category increased 0.2 points.
•Net sales in Family Care, which is predominantly a North American business, increased low single digits driven by a unit volume increase (due to market growth and increased marketing support) and higher pricing, partially offset by unfavorable product mix (due to growth of larger pack sizes with lower than category-average selling prices). Organic sales also increased low single digits. North America's share of the family care category decreased 0.4 points.
Net earnings increased 13% to $4.0 billion due to a 230 basis-point increase in net earnings margin. Net earnings margin increased primarily due to an increase in gross margin, partially offset by an increase in SG&A as a percentage of net sales. Gross margin increased primarily due to lower commodity costs, productivity savings and increased pricing, partially offset by unfavorable foreign exchange. SG&A as a percentage of net sales increased due to an increase in marketing and overhead spending.
CORPORATE
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">($ millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">Change vs. 2023</td></tr><tr><td colspan="3">Net sales</td><td colspan="3">$601</td><td colspan="3"></td><td colspan="3">$765</td><td colspan="3"></td><td colspan="3">(21)%</td></tr><tr><td colspan="3">Net earnings/(loss)</td><td colspan="3">$(1,430)</td><td colspan="3"></td><td colspan="3">$(399)</td><td colspan="3"></td><td colspan="3">N/A</td></tr></table>Corporate includes certain operating and non-operating activities not allocated to specific business segments. These include but are not limited to incidental businesses managed at the corporate level, gains and losses related to certain divested brands or businesses, impacts from various financing and investing activities, impacts related to employee benefits, asset impairments and restructuring activities including manufacturing and workforce optimization. Corporate also includes reconciling items to adjust the accounting policies used within the reportable segments to U.S. GAAP. The most notable ongoing reconciling item is income taxes, which adjusts the blended statutory rates that are reflected in the reportable segments to the overall Company effective tax rate.
Corporate net sales decreased $164 million to $601 million due to a decrease in net sales of incidental businesses managed at the corporate level. Corporate net earnings decreased $1.0 billion due to a loss of $1.4 billion due primarily to the impairment charge of the Gillette intangible asset and incremental restructuring charges.
Restructuring Program to Deliver Productivity and Cost Savings
The Company has historically had an ongoing restructuring program with annual spending in the range of $250 to $500 million before tax. On December 5, 2023, the Company announced an incremental limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria.
In fiscal 2024, the Company incurred before tax restructuring costs of $659 million, which include foreign currency translation losses recognized as a non-cash charge of approximately $216 million due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria. Restructuring accruals of $166 million as of June 30, 2024, are classified as current liabilities. Excluding the non-cash charges of foreign currency translation losses for certain Enterprise Markets, including Nigeria, approximately 64% of the restructuring charges incurred in fiscal 2024 either have been or will be settled with cash. Consistent with our policies for restructuring-type activities, the resulting charges are funded by and included within Corporate for segment reporting.
Savings generated from the Company's restructuring program are difficult to estimate, given the nature of the activities, the timing of the execution and the degree of reinvestment. In addition to our restructuring programs, we have additional ongoing savings efforts in our supply chain, marketing and overhead areas that yield additional benefits to our operating margins. Refer to Note 3 to the Consolidated Financial Statements for more details on the restructuring program.
CASH FLOW, FINANCIAL CONDITION AND LIQUIDITY
We believe our financial condition continues to be of high quality, as evidenced by our ability to generate substantial cash from operations and to readily access capital markets at competitive rates.
Operating cash flow provides the primary source of cash to fund operating needs and capital expenditures. Excess operating cash is used first to fund shareholder dividends. Other discretionary uses include share repurchases and acquisitions to complement our portfolio of businesses, brands and geographies. As necessary, we may supplement operating cash flow with debt to fund these activities. The overall cash position of the Company reflects our strong business results and a global cash management strategy that takes into account liquidity management, economic factors and tax considerations.
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 45:
The Procter & Gamble Company 45
NOTE 3
SUPPLEMENTAL FINANCIAL INFORMATION
The components of property, plant and equipment were as follows:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="12">PROPERTY, PLANT AND EQUIPMENT</td></tr><tr><td colspan="3">Machinery and equipment</td><td>$</td><td>37,507 </td><td></td><td colspan="3"></td><td>$</td><td>36,521 </td><td></td></tr><tr><td colspan="3">Buildings</td><td colspan="2">8,534 </td><td></td><td colspan="3"></td><td colspan="2">8,277 </td><td></td></tr><tr><td colspan="3">Construction in progress</td><td colspan="2">3,126 </td><td></td><td colspan="3"></td><td colspan="2">2,980 </td><td></td></tr><tr><td colspan="3">Land</td><td colspan="2">895 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">TOTAL PROPERTY, PLANT AND EQUIPMENT</td><td colspan="2">50,063 </td><td></td><td colspan="3"></td><td colspan="2">48,645 </td><td></td></tr><tr><td colspan="3">Accumulated depreciation</td><td colspan="2">(27,911)</td><td></td><td colspan="3"></td><td colspan="2">(26,736)</td><td></td></tr><tr><td colspan="3">PROPERTY, PLANT AND EQUIPMENT, NET</td><td>$</td><td>22,152 </td><td></td><td colspan="3"></td><td>$</td><td>21,909 </td><td></td></tr></table>
Selected components of current and noncurrent liabilities were as follows:<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="12">ACCRUED AND OTHER LIABILITIES - CURRENT</td></tr><tr><td colspan="3">Accrued marketing and promotion</td><td>$</td><td>4,172 </td><td></td><td colspan="3"></td><td>$</td><td>3,894 </td><td></td></tr><tr><td colspan="3">Accrued compensation</td><td colspan="2">2,161 </td><td></td><td colspan="3"></td><td colspan="2">2,030 </td><td></td></tr><tr><td colspan="3">Taxes payable</td><td colspan="2">1,042 </td><td></td><td colspan="3"></td><td colspan="2">828 </td><td></td></tr><tr><td colspan="3">Accrued interest</td><td colspan="2">282 </td><td></td><td colspan="3"></td><td colspan="2">235 </td><td></td></tr><tr><td colspan="3">Lease liabilities</td><td colspan="2">243 </td><td></td><td colspan="3"></td><td colspan="2">222 </td><td></td></tr><tr><td colspan="3">Restructuring reserves</td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">174 </td><td></td></tr><tr><td colspan="3">Derivative liabilities</td><td colspan="2">54 </td><td></td><td colspan="3"></td><td colspan="2">631 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">2,953 </td><td></td><td colspan="3"></td><td colspan="2">2,915 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>11,073 </td><td></td><td colspan="3"></td><td>$</td><td>10,929 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">OTHER NONCURRENT LIABILITIES</td></tr><tr><td colspan="3">Pension benefit obligations</td><td>$</td><td>2,884 </td><td></td><td colspan="3"></td><td>$</td><td>3,116 </td><td></td></tr><tr><td colspan="3">Uncertain tax positions</td><td colspan="2">723 </td><td></td><td colspan="3"></td><td colspan="2">622 </td><td></td></tr><tr><td colspan="3">Lease liabilities</td><td colspan="2">666 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td></tr><tr><td colspan="3">Other retiree benefit obligations</td><td colspan="2">653 </td><td></td><td colspan="3"></td><td colspan="2">690 </td><td></td></tr><tr><td colspan="3">U.S. Tax Act transitional tax payable</td><td colspan="2">592 </td><td></td><td colspan="3"></td><td colspan="2">1,154 </td><td></td></tr><tr><td colspan="3">Derivative liabilities</td><td colspan="2">325 </td><td></td><td colspan="3"></td><td colspan="2">445 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="2">530 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>6,398 </td><td></td><td colspan="3"></td><td>$</td><td>7,152 </td><td></td></tr></table>
RESTRUCTURING PROGRAM
The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before tax costs incurred under ongoing programs have generally ranged from $250 to $500 annually.
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company expects to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
The Company incurred total restructuring charges of $659 and $329 for the fiscal years ended June 30, 2024 and 2023. Of the charges incurred for fiscal year 2024, $248 were recorded in Costs of products sold, $155 in SG&A and $255 in Other non-operating income, net. Of the charges incurred in fiscal year 2023, $160 were recorded in Costs of products sold, $160 in SG&A and $9 in Other non-operating income, net.
Amounts in millions of dollars except per share amounts or as otherwise specified.
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 46:
46 The Procter & Gamble Company
The following table presents restructuring activity for the fiscal years ended June 30, 2024 and 2023:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Separation Costs</td><td colspan="3">Asset-Related Costs</td><td colspan="3">Other Costs</td><td colspan="3">Total</td></tr><tr><td colspan="3">RESERVE JUNE 30, 2022</td><td>$</td><td>121 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>26 </td><td></td><td>$</td><td>147 </td><td></td></tr><tr><td colspan="3">Cost incurred</td><td colspan="2">175 </td><td></td><td colspan="2">43 </td><td></td><td colspan="2">111 </td><td></td><td colspan="2">329 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(141)</td><td></td><td colspan="2">(43)</td><td></td><td colspan="2">(118)</td><td></td><td colspan="2">(302)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2023</td><td colspan="2">155 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">19 </td><td></td><td colspan="2">174 </td><td></td></tr><tr><td colspan="3">Cost incurred</td><td colspan="2">202 </td><td></td><td colspan="2">101 </td><td></td><td colspan="2">355 </td><td></td><td colspan="2">659 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(224)</td><td></td><td colspan="2">(101)</td><td></td><td colspan="2">(342)</td><td></td><td colspan="2">(667)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2024</td><td>$</td><td>133 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>32 </td><td></td><td>$</td><td>166 </td><td></td></tr></table>
Separation Costs
Employee separation costs relate to severance packages that are primarily voluntary and the amounts calculated are based on salary levels and past service periods.
Asset-Related Costs
Asset-related costs consist of both asset write-downs and accelerated depreciation for manufacturing and facilities consolidations. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets are written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period.
Other Costs
Other restructuring-type charges are incurred as a direct result of the restructuring plan. Such charges include accumulated foreign currency translation losses, asset removal and termination of contracts related to Enterprise Market portfolio restructuring. As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss).
Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3">2022</td></tr><tr><td colspan="3">Beauty</td><td>$</td><td>43 </td><td></td><td>$</td><td>15 </td><td></td><td>$</td><td>11 </td><td></td></tr><tr><td colspan="3">Grooming</td><td colspan="2">76 </td><td></td><td colspan="2">17 </td><td></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Health Care</td><td colspan="2">33 </td><td></td><td colspan="2">28 </td><td></td><td colspan="2">32 </td><td></td></tr><tr><td colspan="3">Fabric & Home Care</td><td colspan="2">84 </td><td></td><td colspan="2">87 </td><td></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Baby, Feminine & Family Care</td><td colspan="2">50 </td><td></td><td colspan="2">21 </td><td></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Corporate (1)</td><td colspan="2">371 </td><td></td><td colspan="2">161 </td><td></td><td colspan="2">71 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>659 </td><td></td><td>$</td><td>329 </td><td></td><td>$</td><td>253 </td><td></td></tr></table>
(1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities.
Amounts in millions of dollars except per share amounts or as otherwise specified.
|
18 The Procter & Gamble Company
RECENT DEVELOPMENTS
Limited Market Portfolio Restructuring
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company announced that it expected to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 million after tax for accumulated currency translation losses previously included in Accumulated other comprehensive income/(loss). On July 1, 2024, the Company completed the divestiture of its business in Argentina. The Company expects to record a non-cash charge of approximately $750 million for accumulated currency translation losses in the first quarter of the fiscal year ending June 30, 2025. Consistent with our historical policies for ongoing restructuring-type activities, resulting charges were funded by and included within Corporate for segment reporting. Restructuring charges above the normal ongoing level of restructuring costs were reported as non-core charges. For more details on the restructuring program, refer to Note 3 to the Consolidated Financial Statements.
Intangible Asset Impairment
During the fiscal year ended June 30, 2024, the Company recorded a $1.3 billion before tax ($1.0 billion after tax) non-cash impairment charge on an indefinite-lived intangible asset acquired as part of the Company's 2005 acquisition of The Gillette Company. The impairment charge arose from a reduction in the estimated fair value of the Gillette indefinite-lived intangible asset due to a higher discount rate, weakening of several currencies relative to the U.S. dollar and the impact of the non-core restructuring program described above. This impairment charge adjusted the carrying value of the Gillette indefinite-lived intangible asset to fair value. For a more detailed discussion of the Gillette impairment, refer to Note 4 to the Consolidated Financial Statements.
SUMMARY OF 2024 RESULTS
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Amounts in millions, except per share amounts</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">Change vs. Prior Year</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>84,039 </td><td></td><td colspan="3"></td><td>$</td><td>82,006 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Operating income</td><td colspan="2">18,545 </td><td></td><td colspan="3"></td><td colspan="2">18,134 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Net earnings</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">14,738 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Net earnings attributable to Procter & Gamble</td><td colspan="2">14,879 </td><td></td><td colspan="3"></td><td colspan="2">14,653 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Diluted net earnings per common share</td><td colspan="2">6.02 </td><td></td><td colspan="3"></td><td colspan="2">5.90 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Core earnings per share</td><td colspan="2">6.59 </td><td></td><td colspan="3"></td><td colspan="2">5.90 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td>%</td></tr><tr><td colspan="3">Cash flow from operating activities</td><td colspan="2">19,846 </td><td></td><td colspan="3"></td><td colspan="2">16,848 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td>%</td></tr></table>
•Net sales increased 2% to $84.0 billion versus the prior year. The net sales growth was driven by mid-single-digit increases in Health Care, Fabric & Home Care and Grooming and a low single-digit increase in Beauty. Net Sales were unchanged in Baby, Feminine & Family Care. Organic sales, which exclude the impact of acquisitions and divestitures and foreign exchange, increased 4%. Organic sales increased high single digits in Grooming, mid-single digits in Fabric & Home Care and Health Care and low single digits in Beauty and Baby, Feminine & Family Care.
•Operating income increased $411 million, or 2%, to $18.5 billion due to the increase in net sales, partially offset by the non-cash impairment charge of $1.3 billion related to the Gillette intangible asset.
•Net earnings increased $236 million, or 2%, to $15.0 billion due to the increase in operating income, partially offset by a higher effective tax rate. Foreign exchange impacts reduced net earnings by approximately $589 million.
•Net earnings attributable to Procter & Gamble increased $226 million, or 2%, to $14.9 billion.
•Diluted EPS increased 2% to $6.02 due to the increase in net earnings. Core EPS, which excludes the charge for the Gillette intangible asset impairment and incremental restructuring charges, increased 12% to $6.59.
•Cash flow from operating activities was $19.8 billion.
◦ Adjusted free cash flow, which is operating cash flow less capital expenditures and certain other impacts, was $16.9 billion.
◦ Adjusted free cash flow productivity, which is the ratio of adjusted free cash flow to net earnings excluding the Gillette intangible asset impairment charge and a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria, was 105%.
,
24 The Procter & Gamble Company
Europe (due to increased pricing), Latin America (due to increased competitive activity) and IMEA (due to increased pricing), partially offset by growth in North America (due to increased marketing support and distribution gains). Organic sales increased mid-single digits driven by mid-single-digit increases in Europe and IMEA and a low single-digit increase in North America. Market share of the feminine care category increased 0.2 points.
•Net sales in Family Care, which is predominantly a North American business, increased low single digits driven by a unit volume increase (due to market growth and increased marketing support) and higher pricing, partially offset by unfavorable product mix (due to growth of larger pack sizes with lower than category-average selling prices). Organic sales also increased low single digits. North America's share of the family care category decreased 0.4 points.
Net earnings increased 13% to $4.0 billion due to a 230 basis-point increase in net earnings margin. Net earnings margin increased primarily due to an increase in gross margin, partially offset by an increase in SG&A as a percentage of net sales. Gross margin increased primarily due to lower commodity costs, productivity savings and increased pricing, partially offset by unfavorable foreign exchange. SG&A as a percentage of net sales increased due to an increase in marketing and overhead spending.
CORPORATE
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">($ millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">Change vs. 2023</td></tr><tr><td colspan="3">Net sales</td><td colspan="3">$601</td><td colspan="3"></td><td colspan="3">$765</td><td colspan="3"></td><td colspan="3">(21)%</td></tr><tr><td colspan="3">Net earnings/(loss)</td><td colspan="3">$(1,430)</td><td colspan="3"></td><td colspan="3">$(399)</td><td colspan="3"></td><td colspan="3">N/A</td></tr></table>Corporate includes certain operating and non-operating activities not allocated to specific business segments. These include but are not limited to incidental businesses managed at the corporate level, gains and losses related to certain divested brands or businesses, impacts from various financing and investing activities, impacts related to employee benefits, asset impairments and restructuring activities including manufacturing and workforce optimization. Corporate also includes reconciling items to adjust the accounting policies used within the reportable segments to U.S. GAAP. The most notable ongoing reconciling item is income taxes, which adjusts the blended statutory rates that are reflected in the reportable segments to the overall Company effective tax rate.
Corporate net sales decreased $164 million to $601 million due to a decrease in net sales of incidental businesses managed at the corporate level. Corporate net earnings decreased $1.0 billion due to a loss of $1.4 billion due primarily to the impairment charge of the Gillette intangible asset and incremental restructuring charges.
Restructuring Program to Deliver Productivity and Cost Savings
The Company has historically had an ongoing restructuring program with annual spending in the range of $250 to $500 million before tax. On December 5, 2023, the Company announced an incremental limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria.
In fiscal 2024, the Company incurred before tax restructuring costs of $659 million, which include foreign currency translation losses recognized as a non-cash charge of approximately $216 million due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria. Restructuring accruals of $166 million as of June 30, 2024, are classified as current liabilities. Excluding the non-cash charges of foreign currency translation losses for certain Enterprise Markets, including Nigeria, approximately 64% of the restructuring charges incurred in fiscal 2024 either have been or will be settled with cash. Consistent with our policies for restructuring-type activities, the resulting charges are funded by and included within Corporate for segment reporting.
Savings generated from the Company's restructuring program are difficult to estimate, given the nature of the activities, the timing of the execution and the degree of reinvestment. In addition to our restructuring programs, we have additional ongoing savings efforts in our supply chain, marketing and overhead areas that yield additional benefits to our operating margins. Refer to Note 3 to the Consolidated Financial Statements for more details on the restructuring program.
CASH FLOW, FINANCIAL CONDITION AND LIQUIDITY
We believe our financial condition continues to be of high quality, as evidenced by our ability to generate substantial cash from operations and to readily access capital markets at competitive rates.
Operating cash flow provides the primary source of cash to fund operating needs and capital expenditures. Excess operating cash is used first to fund shareholder dividends. Other discretionary uses include share repurchases and acquisitions to complement our portfolio of businesses, brands and geographies. As necessary, we may supplement operating cash flow with debt to fund these activities. The overall cash position of the Company reflects our strong business results and a global cash management strategy that takes into account liquidity management, economic factors and tax considerations.
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The Procter & Gamble Company 45
NOTE 3
SUPPLEMENTAL FINANCIAL INFORMATION
The components of property, plant and equipment were as follows:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="12">PROPERTY, PLANT AND EQUIPMENT</td></tr><tr><td colspan="3">Machinery and equipment</td><td>$</td><td>37,507 </td><td></td><td colspan="3"></td><td>$</td><td>36,521 </td><td></td></tr><tr><td colspan="3">Buildings</td><td colspan="2">8,534 </td><td></td><td colspan="3"></td><td colspan="2">8,277 </td><td></td></tr><tr><td colspan="3">Construction in progress</td><td colspan="2">3,126 </td><td></td><td colspan="3"></td><td colspan="2">2,980 </td><td></td></tr><tr><td colspan="3">Land</td><td colspan="2">895 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">TOTAL PROPERTY, PLANT AND EQUIPMENT</td><td colspan="2">50,063 </td><td></td><td colspan="3"></td><td colspan="2">48,645 </td><td></td></tr><tr><td colspan="3">Accumulated depreciation</td><td colspan="2">(27,911)</td><td></td><td colspan="3"></td><td colspan="2">(26,736)</td><td></td></tr><tr><td colspan="3">PROPERTY, PLANT AND EQUIPMENT, NET</td><td>$</td><td>22,152 </td><td></td><td colspan="3"></td><td>$</td><td>21,909 </td><td></td></tr></table>
Selected components of current and noncurrent liabilities were as follows:<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="12">ACCRUED AND OTHER LIABILITIES - CURRENT</td></tr><tr><td colspan="3">Accrued marketing and promotion</td><td>$</td><td>4,172 </td><td></td><td colspan="3"></td><td>$</td><td>3,894 </td><td></td></tr><tr><td colspan="3">Accrued compensation</td><td colspan="2">2,161 </td><td></td><td colspan="3"></td><td colspan="2">2,030 </td><td></td></tr><tr><td colspan="3">Taxes payable</td><td colspan="2">1,042 </td><td></td><td colspan="3"></td><td colspan="2">828 </td><td></td></tr><tr><td colspan="3">Accrued interest</td><td colspan="2">282 </td><td></td><td colspan="3"></td><td colspan="2">235 </td><td></td></tr><tr><td colspan="3">Lease liabilities</td><td colspan="2">243 </td><td></td><td colspan="3"></td><td colspan="2">222 </td><td></td></tr><tr><td colspan="3">Restructuring reserves</td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">174 </td><td></td></tr><tr><td colspan="3">Derivative liabilities</td><td colspan="2">54 </td><td></td><td colspan="3"></td><td colspan="2">631 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">2,953 </td><td></td><td colspan="3"></td><td colspan="2">2,915 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>11,073 </td><td></td><td colspan="3"></td><td>$</td><td>10,929 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">OTHER NONCURRENT LIABILITIES</td></tr><tr><td colspan="3">Pension benefit obligations</td><td>$</td><td>2,884 </td><td></td><td colspan="3"></td><td>$</td><td>3,116 </td><td></td></tr><tr><td colspan="3">Uncertain tax positions</td><td colspan="2">723 </td><td></td><td colspan="3"></td><td colspan="2">622 </td><td></td></tr><tr><td colspan="3">Lease liabilities</td><td colspan="2">666 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td></tr><tr><td colspan="3">Other retiree benefit obligations</td><td colspan="2">653 </td><td></td><td colspan="3"></td><td colspan="2">690 </td><td></td></tr><tr><td colspan="3">U.S. Tax Act transitional tax payable</td><td colspan="2">592 </td><td></td><td colspan="3"></td><td colspan="2">1,154 </td><td></td></tr><tr><td colspan="3">Derivative liabilities</td><td colspan="2">325 </td><td></td><td colspan="3"></td><td colspan="2">445 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="2">530 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>6,398 </td><td></td><td colspan="3"></td><td>$</td><td>7,152 </td><td></td></tr></table>
RESTRUCTURING PROGRAM
The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before tax costs incurred under ongoing programs have generally ranged from $250 to $500 annually.
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company expects to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
The Company incurred total restructuring charges of $659 and $329 for the fiscal years ended June 30, 2024 and 2023. Of the charges incurred for fiscal year 2024, $248 were recorded in Costs of products sold, $155 in SG&A and $255 in Other non-operating income, net. Of the charges incurred in fiscal year 2023, $160 were recorded in Costs of products sold, $160 in SG&A and $9 in Other non-operating income, net.
Amounts in millions of dollars except per share amounts or as otherwise specified.
,
46 The Procter & Gamble Company
The following table presents restructuring activity for the fiscal years ended June 30, 2024 and 2023:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Separation Costs</td><td colspan="3">Asset-Related Costs</td><td colspan="3">Other Costs</td><td colspan="3">Total</td></tr><tr><td colspan="3">RESERVE JUNE 30, 2022</td><td>$</td><td>121 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>26 </td><td></td><td>$</td><td>147 </td><td></td></tr><tr><td colspan="3">Cost incurred</td><td colspan="2">175 </td><td></td><td colspan="2">43 </td><td></td><td colspan="2">111 </td><td></td><td colspan="2">329 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(141)</td><td></td><td colspan="2">(43)</td><td></td><td colspan="2">(118)</td><td></td><td colspan="2">(302)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2023</td><td colspan="2">155 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">19 </td><td></td><td colspan="2">174 </td><td></td></tr><tr><td colspan="3">Cost incurred</td><td colspan="2">202 </td><td></td><td colspan="2">101 </td><td></td><td colspan="2">355 </td><td></td><td colspan="2">659 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(224)</td><td></td><td colspan="2">(101)</td><td></td><td colspan="2">(342)</td><td></td><td colspan="2">(667)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2024</td><td>$</td><td>133 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>32 </td><td></td><td>$</td><td>166 </td><td></td></tr></table>
Separation Costs
Employee separation costs relate to severance packages that are primarily voluntary and the amounts calculated are based on salary levels and past service periods.
Asset-Related Costs
Asset-related costs consist of both asset write-downs and accelerated depreciation for manufacturing and facilities consolidations. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets are written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period.
Other Costs
Other restructuring-type charges are incurred as a direct result of the restructuring plan. Such charges include accumulated foreign currency translation losses, asset removal and termination of contracts related to Enterprise Market portfolio restructuring. As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss).
Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3">2022</td></tr><tr><td colspan="3">Beauty</td><td>$</td><td>43 </td><td></td><td>$</td><td>15 </td><td></td><td>$</td><td>11 </td><td></td></tr><tr><td colspan="3">Grooming</td><td colspan="2">76 </td><td></td><td colspan="2">17 </td><td></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Health Care</td><td colspan="2">33 </td><td></td><td colspan="2">28 </td><td></td><td colspan="2">32 </td><td></td></tr><tr><td colspan="3">Fabric & Home Care</td><td colspan="2">84 </td><td></td><td colspan="2">87 </td><td></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Baby, Feminine & Family Care</td><td colspan="2">50 </td><td></td><td colspan="2">21 </td><td></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Corporate (1)</td><td colspan="2">371 </td><td></td><td colspan="2">161 </td><td></td><td colspan="2">71 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>659 </td><td></td><td>$</td><td>329 </td><td></td><td>$</td><td>253 </td><td></td></tr></table>
(1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities.
Amounts in millions of dollars except per share amounts or as otherwise specified.
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q_Ri008
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What key risks related to geopolitical events are highlighted by Johnson & Johnson, and what are their summarized implications?
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Johnson & Johnson highlights several key risks related to geopolitical events, including global tensions, conflicts, and economic sanctions. The implications of these geopolitical risks include foreign currency volatility, which can affect the Company’s financial results and operational costs. Decreased demand for products in affected regions due to geopolitical instability or conflict can lead to revenue losses. Additionally, the imposition of trade protection measures or sanctions may disrupt the Company’s global supply chain and impact its ability to operate effectively in certain markets.
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Risk
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14
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0000200406-24-000013
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Item 1A. Risk factors
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JOHNSON & JOHNSON 10-K form for the fiscal year ended 2023-12-31, page 14: countries experiencing high inflation rates or significant currency exchange fluctuations could negatively impact the Company's operating results.
Illegal importation of pharmaceutical products: The illegal importation of pharmaceutical products from countries where government price controls or other market dynamics result in lower prices may adversely affect the Company's sales and profitability in the U.S. and other countries in which the Company operates. With the exception of limited quantities of prescription drugs for personal use, foreign imports of pharmaceutical products are illegal under current U.S. law. However, the volume of illegal imports continues to rise as the ability of patients and other customers to obtain the lower-priced imports has grown significantly.
Anti-bribery and other regulations: The Company is subject to various federal and foreign laws that govern its international business practices with respect to payments to government officials. Those laws include the U.S. Foreign Corrupt Practices Act (FCPA), which prohibits U.S. publicly traded companies from promising, offering, or giving anything of value to foreign officials with the corrupt intent of influencing the foreign official for the purpose of helping the Company obtain or retain business or gain any improper advantage. The Company's business is heavily regulated and therefore involves significant interaction with foreign officials. Also, in many countries outside the U.S., the healthcare providers who prescribe human pharmaceuticals are employed by the government and the purchasers of human pharmaceuticals are government entities; therefore, the Company's interactions with these prescribers and purchasers are subject to regulation under the FCPA. In addition to the U.S. application and enforcement of the FCPA, various jurisdictions in which the Company operates have laws and regulations, including the U.K. Bribery Act 2010, aimed at preventing and penalizing corrupt and anticompetitive behavior. Enforcement activities under these laws could subject the Company to additional administrative and legal proceedings and actions, which could include claims for civil penalties, criminal sanctions, and administrative remedies, including exclusion from healthcare programs.
Other financial, economic, legal, social and political risks. Other risks inherent in conducting business globally include:
•local and regional economic environments and policies in the markets that we serve, including interest rates, monetary policy, inflation, economic growth, recession, commodity prices, and currency controls or other limitations on the ability to expatriate cash;
•protective economic policies taken by governments, such as trade protection measures, increased antitrust reporting requirements and enforcement activity, and import/export licensing requirements;
•compliance with local regulations and laws including, in some countries, regulatory requirements restricting the Company's ability to manufacture or sell its products in the relevant market;
•diminished protection of intellectual property and contractual rights in certain jurisdictions;
•potential nationalization or expropriation of the Company's foreign assets;
•political or social upheavals, economic instability, repression, or human rights issues; and
•geopolitical events, including natural disasters, disruptions to markets due to war, armed conflict, terrorism, epidemics or pandemics.
Due to the international nature of the Company's business, geopolitical or economic changes or events, including global tensions and war, could adversely affect our business, results of operations or financial condition.
As described above, the Company has extensive operations and business activity throughout the world. Global tensions, conflict and/or war among any of the countries in which we conduct business or distribute our products may result in foreign currency volatility, decreased demand for our products in affected countries, and challenges to our global supply chain related to increased costs of materials and other inputs for our products and suppliers. Most recently, we have experienced, and expect to continue to experience, impacts to the Company's business resulting from the Russia-Ukraine war, rising conflict in the Middle East as well as increasing tensions between the U.S. and China. In response to heightened conflict, such as the Russia-Ukraine war, governments may impose export controls and broad financial and economic sanctions. Our business and operations may be further impacted by the imposition of trade protection measures or other policies adopted by any country that favor domestic companies and technologies over foreign competitors. Additional sanctions or other measures may be imposed by the global community, including but not limited to limitations on our ability to file, prosecute and maintain patents, trademarks and other intellectual property rights. Furthermore, in some countries, such as in Russia, action may be taken that allows companies and individuals to exploit inventions owned by patent holders from the United States and many other countries without consent or compensation and we may not be able to prevent third parties from practicing the Company's inventions in Russia or from selling or importing products in and into Russia.
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| 1 | 14 |
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countries experiencing high inflation rates or significant currency exchange fluctuations could negatively impact the Company's operating results.
Illegal importation of pharmaceutical products: The illegal importation of pharmaceutical products from countries where government price controls or other market dynamics result in lower prices may adversely affect the Company's sales and profitability in the U.S. and other countries in which the Company operates. With the exception of limited quantities of prescription drugs for personal use, foreign imports of pharmaceutical products are illegal under current U.S. law. However, the volume of illegal imports continues to rise as the ability of patients and other customers to obtain the lower-priced imports has grown significantly.
Anti-bribery and other regulations: The Company is subject to various federal and foreign laws that govern its international business practices with respect to payments to government officials. Those laws include the U.S. Foreign Corrupt Practices Act (FCPA), which prohibits U.S. publicly traded companies from promising, offering, or giving anything of value to foreign officials with the corrupt intent of influencing the foreign official for the purpose of helping the Company obtain or retain business or gain any improper advantage. The Company's business is heavily regulated and therefore involves significant interaction with foreign officials. Also, in many countries outside the U.S., the healthcare providers who prescribe human pharmaceuticals are employed by the government and the purchasers of human pharmaceuticals are government entities; therefore, the Company's interactions with these prescribers and purchasers are subject to regulation under the FCPA. In addition to the U.S. application and enforcement of the FCPA, various jurisdictions in which the Company operates have laws and regulations, including the U.K. Bribery Act 2010, aimed at preventing and penalizing corrupt and anticompetitive behavior. Enforcement activities under these laws could subject the Company to additional administrative and legal proceedings and actions, which could include claims for civil penalties, criminal sanctions, and administrative remedies, including exclusion from healthcare programs.
Other financial, economic, legal, social and political risks. Other risks inherent in conducting business globally include:
•local and regional economic environments and policies in the markets that we serve, including interest rates, monetary policy, inflation, economic growth, recession, commodity prices, and currency controls or other limitations on the ability to expatriate cash;
•protective economic policies taken by governments, such as trade protection measures, increased antitrust reporting requirements and enforcement activity, and import/export licensing requirements;
•compliance with local regulations and laws including, in some countries, regulatory requirements restricting the Company's ability to manufacture or sell its products in the relevant market;
•diminished protection of intellectual property and contractual rights in certain jurisdictions;
•potential nationalization or expropriation of the Company's foreign assets;
•political or social upheavals, economic instability, repression, or human rights issues; and
•geopolitical events, including natural disasters, disruptions to markets due to war, armed conflict, terrorism, epidemics or pandemics.
Due to the international nature of the Company's business, geopolitical or economic changes or events, including global tensions and war, could adversely affect our business, results of operations or financial condition.
As described above, the Company has extensive operations and business activity throughout the world. Global tensions, conflict and/or war among any of the countries in which we conduct business or distribute our products may result in foreign currency volatility, decreased demand for our products in affected countries, and challenges to our global supply chain related to increased costs of materials and other inputs for our products and suppliers. Most recently, we have experienced, and expect to continue to experience, impacts to the Company's business resulting from the Russia-Ukraine war, rising conflict in the Middle East as well as increasing tensions between the U.S. and China. In response to heightened conflict, such as the Russia-Ukraine war, governments may impose export controls and broad financial and economic sanctions. Our business and operations may be further impacted by the imposition of trade protection measures or other policies adopted by any country that favor domestic companies and technologies over foreign competitors. Additional sanctions or other measures may be imposed by the global community, including but not limited to limitations on our ability to file, prosecute and maintain patents, trademarks and other intellectual property rights. Furthermore, in some countries, such as in Russia, action may be taken that allows companies and individuals to exploit inventions owned by patent holders from the United States and many other countries without consent or compensation and we may not be able to prevent third parties from practicing the Company's inventions in Russia or from selling or importing products in and into Russia.
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| 1 | 14 |
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JOHNSON & JOHNSON 10-K form for the fiscal year ended 2023-12-31, page 14: countries experiencing high inflation rates or significant currency exchange fluctuations could negatively impact the Company's operating results.
Illegal importation of pharmaceutical products: The illegal importation of pharmaceutical products from countries where government price controls or other market dynamics result in lower prices may adversely affect the Company's sales and profitability in the U.S. and other countries in which the Company operates. With the exception of limited quantities of prescription drugs for personal use, foreign imports of pharmaceutical products are illegal under current U.S. law. However, the volume of illegal imports continues to rise as the ability of patients and other customers to obtain the lower-priced imports has grown significantly.
Anti-bribery and other regulations: The Company is subject to various federal and foreign laws that govern its international business practices with respect to payments to government officials. Those laws include the U.S. Foreign Corrupt Practices Act (FCPA), which prohibits U.S. publicly traded companies from promising, offering, or giving anything of value to foreign officials with the corrupt intent of influencing the foreign official for the purpose of helping the Company obtain or retain business or gain any improper advantage. The Company's business is heavily regulated and therefore involves significant interaction with foreign officials. Also, in many countries outside the U.S., the healthcare providers who prescribe human pharmaceuticals are employed by the government and the purchasers of human pharmaceuticals are government entities; therefore, the Company's interactions with these prescribers and purchasers are subject to regulation under the FCPA. In addition to the U.S. application and enforcement of the FCPA, various jurisdictions in which the Company operates have laws and regulations, including the U.K. Bribery Act 2010, aimed at preventing and penalizing corrupt and anticompetitive behavior. Enforcement activities under these laws could subject the Company to additional administrative and legal proceedings and actions, which could include claims for civil penalties, criminal sanctions, and administrative remedies, including exclusion from healthcare programs.
Other financial, economic, legal, social and political risks. Other risks inherent in conducting business globally include:
•local and regional economic environments and policies in the markets that we serve, including interest rates, monetary policy, inflation, economic growth, recession, commodity prices, and currency controls or other limitations on the ability to expatriate cash;
•protective economic policies taken by governments, such as trade protection measures, increased antitrust reporting requirements and enforcement activity, and import/export licensing requirements;
•compliance with local regulations and laws including, in some countries, regulatory requirements restricting the Company's ability to manufacture or sell its products in the relevant market;
•diminished protection of intellectual property and contractual rights in certain jurisdictions;
•potential nationalization or expropriation of the Company's foreign assets;
•political or social upheavals, economic instability, repression, or human rights issues; and
•geopolitical events, including natural disasters, disruptions to markets due to war, armed conflict, terrorism, epidemics or pandemics.
Due to the international nature of the Company's business, geopolitical or economic changes or events, including global tensions and war, could adversely affect our business, results of operations or financial condition.
As described above, the Company has extensive operations and business activity throughout the world. Global tensions, conflict and/or war among any of the countries in which we conduct business or distribute our products may result in foreign currency volatility, decreased demand for our products in affected countries, and challenges to our global supply chain related to increased costs of materials and other inputs for our products and suppliers. Most recently, we have experienced, and expect to continue to experience, impacts to the Company's business resulting from the Russia-Ukraine war, rising conflict in the Middle East as well as increasing tensions between the U.S. and China. In response to heightened conflict, such as the Russia-Ukraine war, governments may impose export controls and broad financial and economic sanctions. Our business and operations may be further impacted by the imposition of trade protection measures or other policies adopted by any country that favor domestic companies and technologies over foreign competitors. Additional sanctions or other measures may be imposed by the global community, including but not limited to limitations on our ability to file, prosecute and maintain patents, trademarks and other intellectual property rights. Furthermore, in some countries, such as in Russia, action may be taken that allows companies and individuals to exploit inventions owned by patent holders from the United States and many other countries without consent or compensation and we may not be able to prevent third parties from practicing the Company's inventions in Russia or from selling or importing products in and into Russia.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">14</td><td colspan="3"> </td></tr></table>
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countries experiencing high inflation rates or significant currency exchange fluctuations could negatively impact the Company's operating results.
Illegal importation of pharmaceutical products: The illegal importation of pharmaceutical products from countries where government price controls or other market dynamics result in lower prices may adversely affect the Company's sales and profitability in the U.S. and other countries in which the Company operates. With the exception of limited quantities of prescription drugs for personal use, foreign imports of pharmaceutical products are illegal under current U.S. law. However, the volume of illegal imports continues to rise as the ability of patients and other customers to obtain the lower-priced imports has grown significantly.
Anti-bribery and other regulations: The Company is subject to various federal and foreign laws that govern its international business practices with respect to payments to government officials. Those laws include the U.S. Foreign Corrupt Practices Act (FCPA), which prohibits U.S. publicly traded companies from promising, offering, or giving anything of value to foreign officials with the corrupt intent of influencing the foreign official for the purpose of helping the Company obtain or retain business or gain any improper advantage. The Company's business is heavily regulated and therefore involves significant interaction with foreign officials. Also, in many countries outside the U.S., the healthcare providers who prescribe human pharmaceuticals are employed by the government and the purchasers of human pharmaceuticals are government entities; therefore, the Company's interactions with these prescribers and purchasers are subject to regulation under the FCPA. In addition to the U.S. application and enforcement of the FCPA, various jurisdictions in which the Company operates have laws and regulations, including the U.K. Bribery Act 2010, aimed at preventing and penalizing corrupt and anticompetitive behavior. Enforcement activities under these laws could subject the Company to additional administrative and legal proceedings and actions, which could include claims for civil penalties, criminal sanctions, and administrative remedies, including exclusion from healthcare programs.
Other financial, economic, legal, social and political risks. Other risks inherent in conducting business globally include:
•local and regional economic environments and policies in the markets that we serve, including interest rates, monetary policy, inflation, economic growth, recession, commodity prices, and currency controls or other limitations on the ability to expatriate cash;
•protective economic policies taken by governments, such as trade protection measures, increased antitrust reporting requirements and enforcement activity, and import/export licensing requirements;
•compliance with local regulations and laws including, in some countries, regulatory requirements restricting the Company's ability to manufacture or sell its products in the relevant market;
•diminished protection of intellectual property and contractual rights in certain jurisdictions;
•potential nationalization or expropriation of the Company's foreign assets;
•political or social upheavals, economic instability, repression, or human rights issues; and
•geopolitical events, including natural disasters, disruptions to markets due to war, armed conflict, terrorism, epidemics or pandemics.
Due to the international nature of the Company's business, geopolitical or economic changes or events, including global tensions and war, could adversely affect our business, results of operations or financial condition.
As described above, the Company has extensive operations and business activity throughout the world. Global tensions, conflict and/or war among any of the countries in which we conduct business or distribute our products may result in foreign currency volatility, decreased demand for our products in affected countries, and challenges to our global supply chain related to increased costs of materials and other inputs for our products and suppliers. Most recently, we have experienced, and expect to continue to experience, impacts to the Company's business resulting from the Russia-Ukraine war, rising conflict in the Middle East as well as increasing tensions between the U.S. and China. In response to heightened conflict, such as the Russia-Ukraine war, governments may impose export controls and broad financial and economic sanctions. Our business and operations may be further impacted by the imposition of trade protection measures or other policies adopted by any country that favor domestic companies and technologies over foreign competitors. Additional sanctions or other measures may be imposed by the global community, including but not limited to limitations on our ability to file, prosecute and maintain patents, trademarks and other intellectual property rights. Furthermore, in some countries, such as in Russia, action may be taken that allows companies and individuals to exploit inventions owned by patent holders from the United States and many other countries without consent or compensation and we may not be able to prevent third parties from practicing the Company's inventions in Russia or from selling or importing products in and into Russia.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">14</td><td colspan="3"> </td></tr></table>
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q_Ri009
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What steps does Apple take to ensure liquidity and meet its capital return program commitments?
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Apple takes several steps to ensure liquidity and meet its capital return program commitments. It maintains a strong balance of cash, cash equivalents, and unrestricted marketable securities, supplemented by cash generated from ongoing operations and continued access to debt markets. These resources are expected to cover the company’s cash requirements for at least the next 12 months.
To manage its operational cash needs, Apple works with multiple outsourcing partners for subassemblies and final product assembly, maintaining manufacturing purchase obligations of $38.4 billion, with $38.3 billion due within 12 months as of June 29, 2024.
For its capital return program, Apple has authorized share repurchase programs and consistently pays dividends. In the third quarter of 2024, it repurchased $26 billion worth of common stock and paid $3.9 billion in dividends and equivalents. The company also plans to increase its dividend annually, subject to the Board of Directors' approval.
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Risk
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17
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0000320193-24-000081
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 17:
Selling, General and Administrative
Selling, general and administrative expense increased $347 million during the third quarter of 2024 and $793 million during the first nine months of 2024 compared to the same periods in 2023.
Provision for Income Taxes
Provision for income taxes, effective tax rate and statutory federal income tax rate for the three- and nine-month periods ended June 29, 2024 and July 1, 2023 were as follows (dollars in millions):
| | | | | | | | | | | | | | | |
|---:|:----------------------------------|:-------------------|:------|:------------------|:-----|:-------------|:------|:------------|:---|:---|:-------|:---|:---|:-------|
| 1 | | Three Months Ended | | Nine Months Ended | | | | | | | | | | |
| 2 | | June 29,2024 | | July 1,2023 | | June 29,2024 | | July 1,2023 | | | | | | |
| 3 | Provision for income taxes | $ | 4,046 | | | $ | 2,852 | | | $ | 14,875 | | $ | 12,699 |
| 4 | Effective tax rate | 15.9 | % | | 12.5 | % | | 15.8 | % | | 14.6 | % | | |
| 5 | Statutory federal income tax rate | 21 | % | | 21 | % | | 21 | % | | 21 | % | | |
The Company's effective tax rate for the third quarter and first nine months of 2024 was lower than the statutory federal income tax rate due primarily to a lower effective tax rate on foreign earnings, the impact of the U.S. federal R&D credit, and tax benefits from share-based compensation, partially offset by state income taxes.
The Company's effective tax rate for the third quarter and first nine months of 2024 was higher compared to the same periods in 2023 due primarily to a higher effective tax rate on foreign earnings and lower tax benefits from share-based compensation, partially offset by lower state income taxes.
Liquidity and Capital Resources
The Company believes its balances of cash, cash equivalents and unrestricted marketable securities, along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond.
The Company's contractual cash requirements have not changed materially since the 2023 Form 10-K, except for manufacturing purchase obligations.
Manufacturing Purchase Obligations
The Company utilizes several outsourcing partners to manufacture subassemblies for the Company's products and to perform final assembly and testing of finished products. The Company also obtains individual components for its products from a wide variety of individual suppliers. As of June 29, 2024, the Company had manufacturing purchase obligations of $38.4 billion, with $38.3 billion payable within 12 months.
Capital Return Program
In addition to its contractual cash requirements, the Company has authorized share repurchase programs. The programs do not obligate the Company to acquire a minimum amount of shares. As of June 29, 2024, the Company's quarterly cash dividend was $0.25 per share. The Company intends to increase its dividend on an annual basis, subject to declaration by the Board of Directors.
During the third quarter of 2024, the Company repurchased $26.0 billion of its common stock and paid dividends and dividend equivalents of $3.9 billion.
Recent Accounting Pronouncements
Income Taxes
In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company will adopt ASU 2023-09 in its fourth quarter of 2026 using a prospective transition method.
Apple Inc. | Q3 2024 Form 10-Q | 17
|
Selling, General and Administrative
Selling, general and administrative expense increased $347 million during the third quarter of 2024 and $793 million during the first nine months of 2024 compared to the same periods in 2023.
Provision for Income Taxes
Provision for income taxes, effective tax rate and statutory federal income tax rate for the three- and nine-month periods ended June 29, 2024 and July 1, 2023 were as follows (dollars in millions):
| | | | | | | | | | | | | | | |
|---:|:----------------------------------|:-------------------|:------|:------------------|:-----|:-------------|:------|:------------|:---|:---|:-------|:---|:---|:-------|
| 1 | | Three Months Ended | | Nine Months Ended | | | | | | | | | | |
| 2 | | June 29,2024 | | July 1,2023 | | June 29,2024 | | July 1,2023 | | | | | | |
| 3 | Provision for income taxes | $ | 4,046 | | | $ | 2,852 | | | $ | 14,875 | | $ | 12,699 |
| 4 | Effective tax rate | 15.9 | % | | 12.5 | % | | 15.8 | % | | 14.6 | % | | |
| 5 | Statutory federal income tax rate | 21 | % | | 21 | % | | 21 | % | | 21 | % | | |
The Company's effective tax rate for the third quarter and first nine months of 2024 was lower than the statutory federal income tax rate due primarily to a lower effective tax rate on foreign earnings, the impact of the U.S. federal R&D credit, and tax benefits from share-based compensation, partially offset by state income taxes.
The Company's effective tax rate for the third quarter and first nine months of 2024 was higher compared to the same periods in 2023 due primarily to a higher effective tax rate on foreign earnings and lower tax benefits from share-based compensation, partially offset by lower state income taxes.
Liquidity and Capital Resources
The Company believes its balances of cash, cash equivalents and unrestricted marketable securities, along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond.
The Company's contractual cash requirements have not changed materially since the 2023 Form 10-K, except for manufacturing purchase obligations.
Manufacturing Purchase Obligations
The Company utilizes several outsourcing partners to manufacture subassemblies for the Company's products and to perform final assembly and testing of finished products. The Company also obtains individual components for its products from a wide variety of individual suppliers. As of June 29, 2024, the Company had manufacturing purchase obligations of $38.4 billion, with $38.3 billion payable within 12 months.
Capital Return Program
In addition to its contractual cash requirements, the Company has authorized share repurchase programs. The programs do not obligate the Company to acquire a minimum amount of shares. As of June 29, 2024, the Company's quarterly cash dividend was $0.25 per share. The Company intends to increase its dividend on an annual basis, subject to declaration by the Board of Directors.
During the third quarter of 2024, the Company repurchased $26.0 billion of its common stock and paid dividends and dividend equivalents of $3.9 billion.
Recent Accounting Pronouncements
Income Taxes
In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company will adopt ASU 2023-09 in its fourth quarter of 2026 using a prospective transition method.
Apple Inc. | Q3 2024 Form 10-Q | 17
|
Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 17:
Selling, General and Administrative
Selling, general and administrative expense increased $347 million during the third quarter of 2024 and $793 million during the first nine months of 2024 compared to the same periods in 2023.
Provision for Income Taxes
Provision for income taxes, effective tax rate and statutory federal income tax rate for the three- and nine-month periods ended June 29, 2024 and July 1, 2023 were as follows (dollars in millions):
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Nine Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td></tr><tr><td colspan="3">Provision for income taxes</td><td>$</td><td>4,046 </td><td></td><td colspan="3"></td><td>$</td><td>2,852 </td><td></td><td colspan="3"></td><td>$</td><td>14,875 </td><td></td><td colspan="3"></td><td>$</td><td>12,699 </td><td></td></tr><tr><td colspan="3">Effective tax rate</td><td colspan="2">15.9 </td><td>%</td><td colspan="3"></td><td colspan="2">12.5 </td><td>%</td><td colspan="3"></td><td colspan="2">15.8 </td><td>%</td><td colspan="3"></td><td colspan="2">14.6 </td><td>%</td></tr><tr><td colspan="3">Statutory federal income tax rate</td><td colspan="2">21 </td><td>%</td><td colspan="3"></td><td colspan="2">21 </td><td>%</td><td colspan="3"></td><td colspan="2">21 </td><td>%</td><td colspan="3"></td><td colspan="2">21 </td><td>%</td></tr></table>The Company's effective tax rate for the third quarter and first nine months of 2024 was lower than the statutory federal income tax rate due primarily to a lower effective tax rate on foreign earnings, the impact of the U.S. federal R&D credit, and tax benefits from share-based compensation, partially offset by state income taxes.
The Company's effective tax rate for the third quarter and first nine months of 2024 was higher compared to the same periods in 2023 due primarily to a higher effective tax rate on foreign earnings and lower tax benefits from share-based compensation, partially offset by lower state income taxes.
Liquidity and Capital Resources
The Company believes its balances of cash, cash equivalents and unrestricted marketable securities, along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond.
The Company's contractual cash requirements have not changed materially since the 2023 Form 10-K, except for manufacturing purchase obligations.
Manufacturing Purchase Obligations
The Company utilizes several outsourcing partners to manufacture subassemblies for the Company's products and to perform final assembly and testing of finished products. The Company also obtains individual components for its products from a wide variety of individual suppliers. As of June 29, 2024, the Company had manufacturing purchase obligations of $38.4 billion, with $38.3 billion payable within 12 months.
Capital Return Program
In addition to its contractual cash requirements, the Company has authorized share repurchase programs. The programs do not obligate the Company to acquire a minimum amount of shares. As of June 29, 2024, the Company's quarterly cash dividend was $0.25 per share. The Company intends to increase its dividend on an annual basis, subject to declaration by the Board of Directors.
During the third quarter of 2024, the Company repurchased $26.0 billion of its common stock and paid dividends and dividend equivalents of $3.9 billion.
Recent Accounting Pronouncements
Income Taxes
In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company will adopt ASU 2023-09 in its fourth quarter of 2026 using a prospective transition method.
Apple Inc. | Q3 2024 Form 10-Q | 17
|
Selling, General and Administrative
Selling, general and administrative expense increased $347 million during the third quarter of 2024 and $793 million during the first nine months of 2024 compared to the same periods in 2023.
Provision for Income Taxes
Provision for income taxes, effective tax rate and statutory federal income tax rate for the three- and nine-month periods ended June 29, 2024 and July 1, 2023 were as follows (dollars in millions):
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended</td><td colspan="3"></td><td colspan="9">Nine Months Ended</td></tr><tr><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td><td colspan="3"></td><td colspan="3">June 29,2024</td><td colspan="3"></td><td colspan="3">July 1,2023</td></tr><tr><td colspan="3">Provision for income taxes</td><td>$</td><td>4,046 </td><td></td><td colspan="3"></td><td>$</td><td>2,852 </td><td></td><td colspan="3"></td><td>$</td><td>14,875 </td><td></td><td colspan="3"></td><td>$</td><td>12,699 </td><td></td></tr><tr><td colspan="3">Effective tax rate</td><td colspan="2">15.9 </td><td>%</td><td colspan="3"></td><td colspan="2">12.5 </td><td>%</td><td colspan="3"></td><td colspan="2">15.8 </td><td>%</td><td colspan="3"></td><td colspan="2">14.6 </td><td>%</td></tr><tr><td colspan="3">Statutory federal income tax rate</td><td colspan="2">21 </td><td>%</td><td colspan="3"></td><td colspan="2">21 </td><td>%</td><td colspan="3"></td><td colspan="2">21 </td><td>%</td><td colspan="3"></td><td colspan="2">21 </td><td>%</td></tr></table>The Company's effective tax rate for the third quarter and first nine months of 2024 was lower than the statutory federal income tax rate due primarily to a lower effective tax rate on foreign earnings, the impact of the U.S. federal R&D credit, and tax benefits from share-based compensation, partially offset by state income taxes.
The Company's effective tax rate for the third quarter and first nine months of 2024 was higher compared to the same periods in 2023 due primarily to a higher effective tax rate on foreign earnings and lower tax benefits from share-based compensation, partially offset by lower state income taxes.
Liquidity and Capital Resources
The Company believes its balances of cash, cash equivalents and unrestricted marketable securities, along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond.
The Company's contractual cash requirements have not changed materially since the 2023 Form 10-K, except for manufacturing purchase obligations.
Manufacturing Purchase Obligations
The Company utilizes several outsourcing partners to manufacture subassemblies for the Company's products and to perform final assembly and testing of finished products. The Company also obtains individual components for its products from a wide variety of individual suppliers. As of June 29, 2024, the Company had manufacturing purchase obligations of $38.4 billion, with $38.3 billion payable within 12 months.
Capital Return Program
In addition to its contractual cash requirements, the Company has authorized share repurchase programs. The programs do not obligate the Company to acquire a minimum amount of shares. As of June 29, 2024, the Company's quarterly cash dividend was $0.25 per share. The Company intends to increase its dividend on an annual basis, subject to declaration by the Board of Directors.
During the third quarter of 2024, the Company repurchased $26.0 billion of its common stock and paid dividends and dividend equivalents of $3.9 billion.
Recent Accounting Pronouncements
Income Taxes
In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company will adopt ASU 2023-09 in its fourth quarter of 2026 using a prospective transition method.
Apple Inc. | Q3 2024 Form 10-Q | 17
|
q_Ri010
|
How does Consumers ensure liquidity and financial stability?
|
Consumers Energy ensures liquidity and financial stability through a variety of financial strategies and instruments. The company relies on cash flows from operations, external financing, and stockholder contributions from CMS Energy to fund capital expenditures, retire debt, pay dividends, and fulfill other obligations. Consumers maintains robust access to capital markets and expects to continue leveraging these resources barring any major market disruptions.
As of March 31, 2024, Consumers had $1.3 billion available under its revolving credit facilities, which are used for general working capital purposes and issuing letters of credit. Additionally, Consumers operates a commercial paper program with a capacity of $500 million, supported by these credit facilities, to manage short-term funding needs. The company also benefits from CMS Energy’s equity offering program, which provides flexibility to raise capital through various transactions.
These measures, along with stringent adherence to dividend restrictions and financial covenants, ensure Consumers maintains sufficient liquidity and financial resilience.
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Risk
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29
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0000811156-24-000084
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Item 1. Financial Statements
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CMS ENERGY CORP 10-Q form for quarterly period ended 2024-03-31, page 29:
Capital Resources and Liquidity
CMS Energy and Consumers expect to have sufficient liquidity to fund their present and future commitments. CMS Energy uses dividends and tax-sharing payments from its subsidiaries and external financing and capital transactions to invest in its utility and non‑utility businesses, retire debt, pay dividends, and fund its other obligations. The ability of CMS Energy's subsidiaries, including Consumers, to pay dividends to CMS Energy depends upon each subsidiary's revenues, earnings, cash needs, and other factors. In addition, Consumers' ability to pay dividends is restricted by certain terms included in its articles of incorporation and potentially by FERC requirements and provisions under the Federal Power Act and the Natural Gas Act. For additional details on Consumers' dividend restrictions, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization-Dividend Restrictions. During the three months ended March 31, 2024, Consumers paid $265 million in dividends on its common stock to CMS Energy.
Consumers uses cash flows generated from operations and external financing transactions, as well as stockholder contributions from CMS Energy, to fund capital expenditures, retire debt, pay dividends, and fund its other obligations. Consumers also uses these sources of funding to contribute to its employee benefit plans.
Financing and Capital Resources: CMS Energy and Consumers rely on the capital markets to fund their robust capital plan. Barring any sustained market dislocations or disruptions, CMS Energy and Consumers expect to continue to have ready access to the financial and capital markets and will continue to explore possibilities to take advantage of market opportunities as they arise with respect to future funding needs. If access to these markets were to diminish or otherwise become restricted, CMS Energy and Consumers would implement contingency plans to address debt maturities, which could include reduced capital spending.
In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in "at the market" offerings, or through forward sales transactions. There have been no sales of securities under this program.
At March 31, 2024, CMS Energy had $521 million of its revolving credit facility available and Consumers had $1.3 billion available under its revolving credit facilities. CMS Energy and Consumers use these credit facilities for general working capital purposes and to issue letters of credit. An additional source of liquidity is Consumers' commercial paper program, which allows Consumers to issue, in one or more placements, up to $500 million in aggregate principal amount of commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers' revolving credit facilities. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At March 31, 2024, there were no commercial paper notes outstanding under this program. For additional details on CMS Energy's and Consumers' secured revolving credit facilities and commercial paper program, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization.
29
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Capital Resources and Liquidity
CMS Energy and Consumers expect to have sufficient liquidity to fund their present and future commitments. CMS Energy uses dividends and tax-sharing payments from its subsidiaries and external financing and capital transactions to invest in its utility and non‑utility businesses, retire debt, pay dividends, and fund its other obligations. The ability of CMS Energy's subsidiaries, including Consumers, to pay dividends to CMS Energy depends upon each subsidiary's revenues, earnings, cash needs, and other factors. In addition, Consumers' ability to pay dividends is restricted by certain terms included in its articles of incorporation and potentially by FERC requirements and provisions under the Federal Power Act and the Natural Gas Act. For additional details on Consumers' dividend restrictions, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization-Dividend Restrictions. During the three months ended March 31, 2024, Consumers paid $265 million in dividends on its common stock to CMS Energy.
Consumers uses cash flows generated from operations and external financing transactions, as well as stockholder contributions from CMS Energy, to fund capital expenditures, retire debt, pay dividends, and fund its other obligations. Consumers also uses these sources of funding to contribute to its employee benefit plans.
Financing and Capital Resources: CMS Energy and Consumers rely on the capital markets to fund their robust capital plan. Barring any sustained market dislocations or disruptions, CMS Energy and Consumers expect to continue to have ready access to the financial and capital markets and will continue to explore possibilities to take advantage of market opportunities as they arise with respect to future funding needs. If access to these markets were to diminish or otherwise become restricted, CMS Energy and Consumers would implement contingency plans to address debt maturities, which could include reduced capital spending.
In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in "at the market" offerings, or through forward sales transactions. There have been no sales of securities under this program.
At March 31, 2024, CMS Energy had $521 million of its revolving credit facility available and Consumers had $1.3 billion available under its revolving credit facilities. CMS Energy and Consumers use these credit facilities for general working capital purposes and to issue letters of credit. An additional source of liquidity is Consumers' commercial paper program, which allows Consumers to issue, in one or more placements, up to $500 million in aggregate principal amount of commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers' revolving credit facilities. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At March 31, 2024, there were no commercial paper notes outstanding under this program. For additional details on CMS Energy's and Consumers' secured revolving credit facilities and commercial paper program, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization.
29
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CMS ENERGY CORP 10-Q form for quarterly period ended 2024-03-31, page 29:
Capital Resources and Liquidity
CMS Energy and Consumers expect to have sufficient liquidity to fund their present and future commitments. CMS Energy uses dividends and tax-sharing payments from its subsidiaries and external financing and capital transactions to invest in its utility and non‑utility businesses, retire debt, pay dividends, and fund its other obligations. The ability of CMS Energy's subsidiaries, including Consumers, to pay dividends to CMS Energy depends upon each subsidiary's revenues, earnings, cash needs, and other factors. In addition, Consumers' ability to pay dividends is restricted by certain terms included in its articles of incorporation and potentially by FERC requirements and provisions under the Federal Power Act and the Natural Gas Act. For additional details on Consumers' dividend restrictions, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization-Dividend Restrictions. During the three months ended March 31, 2024, Consumers paid $265 million in dividends on its common stock to CMS Energy.
Consumers uses cash flows generated from operations and external financing transactions, as well as stockholder contributions from CMS Energy, to fund capital expenditures, retire debt, pay dividends, and fund its other obligations. Consumers also uses these sources of funding to contribute to its employee benefit plans.
Financing and Capital Resources: CMS Energy and Consumers rely on the capital markets to fund their robust capital plan. Barring any sustained market dislocations or disruptions, CMS Energy and Consumers expect to continue to have ready access to the financial and capital markets and will continue to explore possibilities to take advantage of market opportunities as they arise with respect to future funding needs. If access to these markets were to diminish or otherwise become restricted, CMS Energy and Consumers would implement contingency plans to address debt maturities, which could include reduced capital spending.
In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in "at the market" offerings, or through forward sales transactions. There have been no sales of securities under this program.
At March 31, 2024, CMS Energy had $521 million of its revolving credit facility available and Consumers had $1.3 billion available under its revolving credit facilities. CMS Energy and Consumers use these credit facilities for general working capital purposes and to issue letters of credit. An additional source of liquidity is Consumers' commercial paper program, which allows Consumers to issue, in one or more placements, up to $500 million in aggregate principal amount of commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers' revolving credit facilities. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At March 31, 2024, there were no commercial paper notes outstanding under this program. For additional details on CMS Energy's and Consumers' secured revolving credit facilities and commercial paper program, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization.
29
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Capital Resources and Liquidity
CMS Energy and Consumers expect to have sufficient liquidity to fund their present and future commitments. CMS Energy uses dividends and tax-sharing payments from its subsidiaries and external financing and capital transactions to invest in its utility and non‑utility businesses, retire debt, pay dividends, and fund its other obligations. The ability of CMS Energy's subsidiaries, including Consumers, to pay dividends to CMS Energy depends upon each subsidiary's revenues, earnings, cash needs, and other factors. In addition, Consumers' ability to pay dividends is restricted by certain terms included in its articles of incorporation and potentially by FERC requirements and provisions under the Federal Power Act and the Natural Gas Act. For additional details on Consumers' dividend restrictions, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization-Dividend Restrictions. During the three months ended March 31, 2024, Consumers paid $265 million in dividends on its common stock to CMS Energy.
Consumers uses cash flows generated from operations and external financing transactions, as well as stockholder contributions from CMS Energy, to fund capital expenditures, retire debt, pay dividends, and fund its other obligations. Consumers also uses these sources of funding to contribute to its employee benefit plans.
Financing and Capital Resources: CMS Energy and Consumers rely on the capital markets to fund their robust capital plan. Barring any sustained market dislocations or disruptions, CMS Energy and Consumers expect to continue to have ready access to the financial and capital markets and will continue to explore possibilities to take advantage of market opportunities as they arise with respect to future funding needs. If access to these markets were to diminish or otherwise become restricted, CMS Energy and Consumers would implement contingency plans to address debt maturities, which could include reduced capital spending.
In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in "at the market" offerings, or through forward sales transactions. There have been no sales of securities under this program.
At March 31, 2024, CMS Energy had $521 million of its revolving credit facility available and Consumers had $1.3 billion available under its revolving credit facilities. CMS Energy and Consumers use these credit facilities for general working capital purposes and to issue letters of credit. An additional source of liquidity is Consumers' commercial paper program, which allows Consumers to issue, in one or more placements, up to $500 million in aggregate principal amount of commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers' revolving credit facilities. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At March 31, 2024, there were no commercial paper notes outstanding under this program. For additional details on CMS Energy's and Consumers' secured revolving credit facilities and commercial paper program, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization.
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q_Ri011
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What strategies are in place to manage the company’s debt-to-capital ratio?
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CMS Energy and Consumers Energy implement several strategies to manage their debt-to-capital ratio and maintain financial stability. These include utilizing dividends and tax-sharing payments from subsidiaries, external financing, and capital transactions to support both utility and non-utility operations. The companies rely on cash flows from operations, external financing transactions, and stockholder contributions to fund capital expenditures, retire debt, and meet other financial obligations.
To ensure liquidity, Consumers maintains access to $1.3 billion in revolving credit facilities and operates a commercial paper program with a $500 million capacity, supported by these credit lines. As of March 31, 2024, there were no outstanding commercial paper notes, preserving borrowing capacity. CMS Energy also maintains a revolving credit facility with $521 million available as of the same date. These financial instruments provide flexibility for managing working capital and addressing debt maturities.
Additionally, CMS Energy has an equity offering program allowing for the issuance of common stock up to $1 billion, enhancing its ability to leverage favorable market conditions when necessary.
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Risk
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29
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0000811156-24-000084
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Item 1. Financial Statements
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CMS ENERGY CORP 10-Q form for quarterly period ended 2024-03-31, page 29:
Capital Resources and Liquidity
CMS Energy and Consumers expect to have sufficient liquidity to fund their present and future commitments. CMS Energy uses dividends and tax-sharing payments from its subsidiaries and external financing and capital transactions to invest in its utility and non‑utility businesses, retire debt, pay dividends, and fund its other obligations. The ability of CMS Energy's subsidiaries, including Consumers, to pay dividends to CMS Energy depends upon each subsidiary's revenues, earnings, cash needs, and other factors. In addition, Consumers' ability to pay dividends is restricted by certain terms included in its articles of incorporation and potentially by FERC requirements and provisions under the Federal Power Act and the Natural Gas Act. For additional details on Consumers' dividend restrictions, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization-Dividend Restrictions. During the three months ended March 31, 2024, Consumers paid $265 million in dividends on its common stock to CMS Energy.
Consumers uses cash flows generated from operations and external financing transactions, as well as stockholder contributions from CMS Energy, to fund capital expenditures, retire debt, pay dividends, and fund its other obligations. Consumers also uses these sources of funding to contribute to its employee benefit plans.
Financing and Capital Resources: CMS Energy and Consumers rely on the capital markets to fund their robust capital plan. Barring any sustained market dislocations or disruptions, CMS Energy and Consumers expect to continue to have ready access to the financial and capital markets and will continue to explore possibilities to take advantage of market opportunities as they arise with respect to future funding needs. If access to these markets were to diminish or otherwise become restricted, CMS Energy and Consumers would implement contingency plans to address debt maturities, which could include reduced capital spending.
In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in "at the market" offerings, or through forward sales transactions. There have been no sales of securities under this program.
At March 31, 2024, CMS Energy had $521 million of its revolving credit facility available and Consumers had $1.3 billion available under its revolving credit facilities. CMS Energy and Consumers use these credit facilities for general working capital purposes and to issue letters of credit. An additional source of liquidity is Consumers' commercial paper program, which allows Consumers to issue, in one or more placements, up to $500 million in aggregate principal amount of commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers' revolving credit facilities. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At March 31, 2024, there were no commercial paper notes outstanding under this program. For additional details on CMS Energy's and Consumers' secured revolving credit facilities and commercial paper program, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization.
29
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Capital Resources and Liquidity
CMS Energy and Consumers expect to have sufficient liquidity to fund their present and future commitments. CMS Energy uses dividends and tax-sharing payments from its subsidiaries and external financing and capital transactions to invest in its utility and non‑utility businesses, retire debt, pay dividends, and fund its other obligations. The ability of CMS Energy's subsidiaries, including Consumers, to pay dividends to CMS Energy depends upon each subsidiary's revenues, earnings, cash needs, and other factors. In addition, Consumers' ability to pay dividends is restricted by certain terms included in its articles of incorporation and potentially by FERC requirements and provisions under the Federal Power Act and the Natural Gas Act. For additional details on Consumers' dividend restrictions, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization-Dividend Restrictions. During the three months ended March 31, 2024, Consumers paid $265 million in dividends on its common stock to CMS Energy.
Consumers uses cash flows generated from operations and external financing transactions, as well as stockholder contributions from CMS Energy, to fund capital expenditures, retire debt, pay dividends, and fund its other obligations. Consumers also uses these sources of funding to contribute to its employee benefit plans.
Financing and Capital Resources: CMS Energy and Consumers rely on the capital markets to fund their robust capital plan. Barring any sustained market dislocations or disruptions, CMS Energy and Consumers expect to continue to have ready access to the financial and capital markets and will continue to explore possibilities to take advantage of market opportunities as they arise with respect to future funding needs. If access to these markets were to diminish or otherwise become restricted, CMS Energy and Consumers would implement contingency plans to address debt maturities, which could include reduced capital spending.
In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in "at the market" offerings, or through forward sales transactions. There have been no sales of securities under this program.
At March 31, 2024, CMS Energy had $521 million of its revolving credit facility available and Consumers had $1.3 billion available under its revolving credit facilities. CMS Energy and Consumers use these credit facilities for general working capital purposes and to issue letters of credit. An additional source of liquidity is Consumers' commercial paper program, which allows Consumers to issue, in one or more placements, up to $500 million in aggregate principal amount of commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers' revolving credit facilities. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At March 31, 2024, there were no commercial paper notes outstanding under this program. For additional details on CMS Energy's and Consumers' secured revolving credit facilities and commercial paper program, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization.
29
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CMS ENERGY CORP 10-Q form for quarterly period ended 2024-03-31, page 29:
Capital Resources and Liquidity
CMS Energy and Consumers expect to have sufficient liquidity to fund their present and future commitments. CMS Energy uses dividends and tax-sharing payments from its subsidiaries and external financing and capital transactions to invest in its utility and non‑utility businesses, retire debt, pay dividends, and fund its other obligations. The ability of CMS Energy's subsidiaries, including Consumers, to pay dividends to CMS Energy depends upon each subsidiary's revenues, earnings, cash needs, and other factors. In addition, Consumers' ability to pay dividends is restricted by certain terms included in its articles of incorporation and potentially by FERC requirements and provisions under the Federal Power Act and the Natural Gas Act. For additional details on Consumers' dividend restrictions, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization-Dividend Restrictions. During the three months ended March 31, 2024, Consumers paid $265 million in dividends on its common stock to CMS Energy.
Consumers uses cash flows generated from operations and external financing transactions, as well as stockholder contributions from CMS Energy, to fund capital expenditures, retire debt, pay dividends, and fund its other obligations. Consumers also uses these sources of funding to contribute to its employee benefit plans.
Financing and Capital Resources: CMS Energy and Consumers rely on the capital markets to fund their robust capital plan. Barring any sustained market dislocations or disruptions, CMS Energy and Consumers expect to continue to have ready access to the financial and capital markets and will continue to explore possibilities to take advantage of market opportunities as they arise with respect to future funding needs. If access to these markets were to diminish or otherwise become restricted, CMS Energy and Consumers would implement contingency plans to address debt maturities, which could include reduced capital spending.
In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in "at the market" offerings, or through forward sales transactions. There have been no sales of securities under this program.
At March 31, 2024, CMS Energy had $521 million of its revolving credit facility available and Consumers had $1.3 billion available under its revolving credit facilities. CMS Energy and Consumers use these credit facilities for general working capital purposes and to issue letters of credit. An additional source of liquidity is Consumers' commercial paper program, which allows Consumers to issue, in one or more placements, up to $500 million in aggregate principal amount of commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers' revolving credit facilities. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At March 31, 2024, there were no commercial paper notes outstanding under this program. For additional details on CMS Energy's and Consumers' secured revolving credit facilities and commercial paper program, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization.
29
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Capital Resources and Liquidity
CMS Energy and Consumers expect to have sufficient liquidity to fund their present and future commitments. CMS Energy uses dividends and tax-sharing payments from its subsidiaries and external financing and capital transactions to invest in its utility and non‑utility businesses, retire debt, pay dividends, and fund its other obligations. The ability of CMS Energy's subsidiaries, including Consumers, to pay dividends to CMS Energy depends upon each subsidiary's revenues, earnings, cash needs, and other factors. In addition, Consumers' ability to pay dividends is restricted by certain terms included in its articles of incorporation and potentially by FERC requirements and provisions under the Federal Power Act and the Natural Gas Act. For additional details on Consumers' dividend restrictions, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization-Dividend Restrictions. During the three months ended March 31, 2024, Consumers paid $265 million in dividends on its common stock to CMS Energy.
Consumers uses cash flows generated from operations and external financing transactions, as well as stockholder contributions from CMS Energy, to fund capital expenditures, retire debt, pay dividends, and fund its other obligations. Consumers also uses these sources of funding to contribute to its employee benefit plans.
Financing and Capital Resources: CMS Energy and Consumers rely on the capital markets to fund their robust capital plan. Barring any sustained market dislocations or disruptions, CMS Energy and Consumers expect to continue to have ready access to the financial and capital markets and will continue to explore possibilities to take advantage of market opportunities as they arise with respect to future funding needs. If access to these markets were to diminish or otherwise become restricted, CMS Energy and Consumers would implement contingency plans to address debt maturities, which could include reduced capital spending.
In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in "at the market" offerings, or through forward sales transactions. There have been no sales of securities under this program.
At March 31, 2024, CMS Energy had $521 million of its revolving credit facility available and Consumers had $1.3 billion available under its revolving credit facilities. CMS Energy and Consumers use these credit facilities for general working capital purposes and to issue letters of credit. An additional source of liquidity is Consumers' commercial paper program, which allows Consumers to issue, in one or more placements, up to $500 million in aggregate principal amount of commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers' revolving credit facilities. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At March 31, 2024, there were no commercial paper notes outstanding under this program. For additional details on CMS Energy's and Consumers' secured revolving credit facilities and commercial paper program, see Notes to the Unaudited Consolidated Financial Statements-Note 3, Financings and Capitalization.
29
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q_Ri012
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What are Consumers’ key priorities in environmental compliance?
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Consumers Energy prioritizes environmental compliance across several critical areas to align with federal, state, and local regulations. A key focus is on air quality, where the company complies with standards like the Mercury and Air Toxics Standards (MATS) and the Cross-State Air Pollution Rule (CSAPR), including its recent Good Neighbor Plan revisions. While these regulations tighten emission allowances, Consumers anticipates minimal near-term impacts. In greenhouse gas management, the company is on track to eliminate coal-fueled generation by 2025, supporting its goal of net-zero carbon emissions by 2040. It aligns with Michigan’s Healthy Climate Plan, which aims for carbon neutrality by 2050.
Consumers also addresses coal combustion residuals (CCR) through compliance with EPA regulations, working with Michigan’s EGLE to ensure safe closure of CCR units. Water compliance remains a priority, particularly under the Clean Water Act, where the company focuses on reducing impacts from cooling water intake systems and meeting effluent limitation guidelines for wastewater discharge. Additionally, Consumers actively complies with wildlife protection laws such as the Endangered Species Act and the Migratory Bird Treaty Act, ensuring minimal impact on protected species during the operation of renewable energy projects.
These efforts are supported by $240 million in planned capital expenditures from 2024 through 2028, which Consumers expects to recover in customer rates, ensuring both compliance and financial sustainability.
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Risk
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34, 35, 36
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0000811156-24-000084
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Item 1. Financial Statements
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CMS ENERGY CORP 10-Q form for quarterly period ended 2024-03-31, page 34: MPSC Distribution System Audit: In 2022, the MPSC ordered the state's two largest electric utilities, including Consumers, to report on their compliance with regulations and past MPSC orders governing the utilities' response to outages and downed lines. Consumers responded to the MPSC's order as directed.
Additionally, as directed by the MPSC, the MPSC Staff has engaged a third‑party auditor to review all equipment and operations of the two utilities' distribution systems; this audit began in August 2023. The MPSC Staff released a report prepared by the third-party auditor to summarize the audit's progress in December 2023, and a final report is expected in late summer 2024. Consumers is committed to working with the third‑party auditor and the MPSC to continue improving electric reliability and safety in Michigan.
Retention Incentive Program: Under its Clean Energy Plan, Consumers will retire the J.H. Campbell coal-fueled generating units in 2025. In order to ensure necessary staffing at J.H. Campbell through retirement, Consumers has implemented a retention incentive program. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be $50 million; Consumers expects to recognize $10 million of retention benefit costs in 2024. The MPSC has approved deferred accounting treatment for these costs; these expenses are deferred as a regulatory asset. For additional details on this program, see Notes to the Unaudited Consolidated Financial Statements-Note 12, Exit Activities.
Electric Environmental Outlook: Consumers' electric operations are subject to various federal, state, and local environmental laws and regulations. Consumers estimates that it will incur capital expenditures of $240 million from 2024 through 2028 to continue to comply with RCRA, the Clean Air Act, and numerous other environmental regulations. Consumers expects to recover these costs in customer rates, but cannot guarantee this result. Multiple environmental laws and regulations are subject to litigation. Consumers' primary environmental compliance focus includes, but is not limited to, the following matters.
Air Quality: Multiple air quality regulations apply, or may apply, to Consumers' electric utility.
MATS, emission standards for electric generating units published by the EPA based on Section 112 of the Clean Air Act, continue to apply to Consumers. The company has complied, and continues to comply, with the MATS regulation and does not expect MATS to materially impact its environmental strategy.
CSAPR requires Michigan and many other states to improve air quality by reducing power plant emissions that, according to EPA modeling, contribute to ground-level ozone in other downwind states. Since its 2015 effective date, CSAPR has been revised several times. In June 2023, the EPA published the Good Neighbor Plan, a revision to CSAPR. This regulation tightens allowance budgets for electric generating units in Michigan between 2023 and 2029 and changes the mechanism for allocating such allowances on a year-over-year basis beginning in 2026. Consumers' initial evaluation of this regulation indicates that it will have minimal financial and operational impact in the near term. Additionally, Consumers does not expect any major financial and operational impact in the long term. However, due to the dynamic nature of this regulation, it is difficult to forecast the long-term impact.
In 2015, the EPA lowered the NAAQS for ozone and made it more difficult to construct or modify power plants and other emission sources in areas of the country that do not meet the ozone standard. As of May 2023, three counties in western Michigan have been designated as not meeting the ozone standard. None of Consumers' fossil-fuel-fired generating units are located in these areas.
Additionally, in March 2024, the EPA published a lower fine particulate matter NAAQS, which will likely result in newly designated nonattainment areas in Michigan starting in 2026. Consumers does not expect this rule to have significant impacts on its fossil-fuel-fired generating assets or its clean energy
34
, CMS ENERGY CORP 10-Q form for quarterly period ended 2024-03-31, page 35: strategy. Consumers will continue to monitor NAAQS rulemakings and evaluate potential impacts to its generating assets.
Consumers continues to evaluate these rules in conjunction with other EPA and EGLE rulemakings, litigation, executive orders, treaties, and congressional actions. This evaluation could result in:
•a change in Consumers' fuel mix
•changes in the types of generating units Consumers may purchase or build in the future
•changes in how certain units are operated, including the installation of additional emission control equipment
•the retirement, mothballing, or repowering with an alternative fuel of some of Consumers' generating units
•changes in Consumers' environmental compliance costs
•the purchase or sale of allowances
Greenhouse Gases: There have been numerous legislative and regulatory initiatives at the state, regional, national, and international levels that involve the potential regulation and reporting of greenhouse gases. Consumers continues to monitor and comment on these initiatives, as appropriate.
In May 2023, the EPA released its proposed rule to address greenhouse gas emissions from existing fossil-fuel-fired electric generating units. Under its Clean Energy Plan, Consumers will eliminate the use of coal-fueled generation in 2025. Therefore, this proposed rule will not materially impact Consumers over the remaining operating lives of these coal-fueled facilities. The proposed rule had requirements for existing natural gas-fueled facilities that could have had a material impact on Consumers' natural gas-fueled facilities. However, the EPA announced in March 2024 that the final rule, expected in April or May 2024, will not cover existing natural gas-fueled facilities. Instead, the EPA expects to cover those facilities in a future rulemaking. Consumers will continue to follow the finalization of this rule and any subsequent rules to control greenhouse gases and will continue to evaluate potential impacts to its Clean Energy Plan.
Under the Paris Agreement, an international agreement addressing greenhouse gas emissions, the U.S. has committed to reduce greenhouse gas emissions by 50 to 52 percent from 2005 levels by 2030. Under its Clean Energy Plan, Consumers plans to reduce carbon emissions from its electric business by 60 percent from 2005 levels in 2025. At this time, Consumers does not expect any adverse changes to its environmental strategy as a result of this event, as its plans exceed the nationally committed reduction. The commitment made by the U.S. is not binding without new Congressional legislation.
In 2020, Michigan's Governor signed an executive order creating the Michigan Healthy Climate Plan, which outlines goals for Michigan to achieve economy-wide net-zero greenhouse gas emissions and to be carbon neutral by 2050. The executive order aims for a 28‑percent reduction below 2005 levels of greenhouse gas emissions by 2025. Consumers has already surpassed the 28‑percent reduction milestone for its owned electric generation and previously announced a goal of achieving net-zero carbon emissions from its electric business by 2040. The 2023 Energy Law codifies much of the Governor's goals. For additional details on the 2023 Energy Law, see the Planet section of the Executive Overview.
Increased frequency or intensity of severe or extreme weather events, including those due to climate change, could materially impact Consumers' facilities, energy sales, and results of operations. Consumers is unable to predict these events; however, Consumers evaluates the potential physical impacts of climate change on its operations, including increased frequency or intensity of storm activity; increased precipitation; increased temperature; and changes in lake and river levels. Consumers released a report addressing the physical risks of climate change on its infrastructure in 2022. Consumers is taking steps to mitigate these risks as appropriate.
35
, CMS ENERGY CORP 10-Q form for quarterly period ended 2024-03-31, page 36: While Consumers cannot predict the outcome of changes in U.S. policy or of other legislative, executive, or regulatory initiatives involving the potential regulation or reporting of greenhouse gases, it intends to move forward with its Clean Energy Plan, its present net-zero goals, and its emphasis on reliable and resilient supply. Litigation, international treaties, executive orders, federal laws and regulations (including regulations by the EPA), and state laws and regulations, if enacted or ratified, could ultimately impact Consumers. Consumers may be required to:
•replace equipment
•install additional emission control equipment
•purchase emission allowances or credits (including potential greenhouse gas offset credits)
•curtail operations
•arrange for alternative sources of supply
•purchase or build facilities that generate fewer emissions
•mothball, sell, or retire facilities that generate certain emissions
•pursue energy efficiency or demand response measures more swiftly
•take other steps to manage, sequester, or lower the emission of greenhouse gases
Although associated capital or operating costs relating to greenhouse gas regulation or legislation could be material and cost recovery cannot be assured, Consumers expects to recover these costs in rates consistent with the recovery of other reasonable costs of complying with environmental laws and regulations.
CCRs: In 2015, the EPA published a rule regulating CCRs under RCRA. This rule adopts minimum standards for the disposal of non‑hazardous CCRs in CCR landfills and surface impoundments and criteria for the beneficial use of CCRs. The rule also sets out conditions under which some CCR units would be forced to cease receiving CCR wastewater and initiate closure. Due to continued litigation, many aspects of the rule have been remanded to the EPA, resulting in more proposed and final rules.
Separately, Congress passed legislation in 2016 allowing participating states to develop permitting programs for CCRs under RCRA Subtitle D. The EPA was granted authority to review these permitting programs to determine if permits issued under the proposed program would be as protective as the federal rule. Once approved, permits issued from an authorized state would replace the requirement to certify compliance with each aspect of the CCR rule. In 2020, EGLE submitted a regulatory package for Michigan's permit program to the EPA for its review, which is still pending.
Consumers, with agreement from EGLE, completed the work necessary to initiate closure by excavating CCRs or placing a final cover over each of its relevant CCR units prior to the closure initiation deadline. Consumers has historically been authorized to recover in electric rates costs related to coal ash disposal sites.
Water: Multiple water-related regulations apply, or may apply, to Consumers.
The EPA regulates cooling water intake systems of existing electric generating plants under Section 316(b) of the Clean Water Act. The rules seek to reduce alleged harmful impacts on aquatic organisms, such as fish. In 2018, Consumers submitted to EGLE for approval all required studies and recommended plans to comply with Section 316(b) for its coal-fueled units, but has not yet received final approval.
The EPA also regulates the discharge of wastewater through its effluent limitation guidelines for steam electric generating plants. In 2020, the EPA revised previous guidelines related to the discharge of certain wastewater, but allowed for extension of the compliance deadline from the end of 2023 to the end of 2025, upon approval by EGLE through the NPDES permitting process. Consumers received such an
36
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MPSC Distribution System Audit: In 2022, the MPSC ordered the state's two largest electric utilities, including Consumers, to report on their compliance with regulations and past MPSC orders governing the utilities' response to outages and downed lines. Consumers responded to the MPSC's order as directed.
Additionally, as directed by the MPSC, the MPSC Staff has engaged a third‑party auditor to review all equipment and operations of the two utilities' distribution systems; this audit began in August 2023. The MPSC Staff released a report prepared by the third-party auditor to summarize the audit's progress in December 2023, and a final report is expected in late summer 2024. Consumers is committed to working with the third‑party auditor and the MPSC to continue improving electric reliability and safety in Michigan.
Retention Incentive Program: Under its Clean Energy Plan, Consumers will retire the J.H. Campbell coal-fueled generating units in 2025. In order to ensure necessary staffing at J.H. Campbell through retirement, Consumers has implemented a retention incentive program. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be $50 million; Consumers expects to recognize $10 million of retention benefit costs in 2024. The MPSC has approved deferred accounting treatment for these costs; these expenses are deferred as a regulatory asset. For additional details on this program, see Notes to the Unaudited Consolidated Financial Statements-Note 12, Exit Activities.
Electric Environmental Outlook: Consumers' electric operations are subject to various federal, state, and local environmental laws and regulations. Consumers estimates that it will incur capital expenditures of $240 million from 2024 through 2028 to continue to comply with RCRA, the Clean Air Act, and numerous other environmental regulations. Consumers expects to recover these costs in customer rates, but cannot guarantee this result. Multiple environmental laws and regulations are subject to litigation. Consumers' primary environmental compliance focus includes, but is not limited to, the following matters.
Air Quality: Multiple air quality regulations apply, or may apply, to Consumers' electric utility.
MATS, emission standards for electric generating units published by the EPA based on Section 112 of the Clean Air Act, continue to apply to Consumers. The company has complied, and continues to comply, with the MATS regulation and does not expect MATS to materially impact its environmental strategy.
CSAPR requires Michigan and many other states to improve air quality by reducing power plant emissions that, according to EPA modeling, contribute to ground-level ozone in other downwind states. Since its 2015 effective date, CSAPR has been revised several times. In June 2023, the EPA published the Good Neighbor Plan, a revision to CSAPR. This regulation tightens allowance budgets for electric generating units in Michigan between 2023 and 2029 and changes the mechanism for allocating such allowances on a year-over-year basis beginning in 2026. Consumers' initial evaluation of this regulation indicates that it will have minimal financial and operational impact in the near term. Additionally, Consumers does not expect any major financial and operational impact in the long term. However, due to the dynamic nature of this regulation, it is difficult to forecast the long-term impact.
In 2015, the EPA lowered the NAAQS for ozone and made it more difficult to construct or modify power plants and other emission sources in areas of the country that do not meet the ozone standard. As of May 2023, three counties in western Michigan have been designated as not meeting the ozone standard. None of Consumers' fossil-fuel-fired generating units are located in these areas.
Additionally, in March 2024, the EPA published a lower fine particulate matter NAAQS, which will likely result in newly designated nonattainment areas in Michigan starting in 2026. Consumers does not expect this rule to have significant impacts on its fossil-fuel-fired generating assets or its clean energy
34
, strategy. Consumers will continue to monitor NAAQS rulemakings and evaluate potential impacts to its generating assets.
Consumers continues to evaluate these rules in conjunction with other EPA and EGLE rulemakings, litigation, executive orders, treaties, and congressional actions. This evaluation could result in:
•a change in Consumers' fuel mix
•changes in the types of generating units Consumers may purchase or build in the future
•changes in how certain units are operated, including the installation of additional emission control equipment
•the retirement, mothballing, or repowering with an alternative fuel of some of Consumers' generating units
•changes in Consumers' environmental compliance costs
•the purchase or sale of allowances
Greenhouse Gases: There have been numerous legislative and regulatory initiatives at the state, regional, national, and international levels that involve the potential regulation and reporting of greenhouse gases. Consumers continues to monitor and comment on these initiatives, as appropriate.
In May 2023, the EPA released its proposed rule to address greenhouse gas emissions from existing fossil-fuel-fired electric generating units. Under its Clean Energy Plan, Consumers will eliminate the use of coal-fueled generation in 2025. Therefore, this proposed rule will not materially impact Consumers over the remaining operating lives of these coal-fueled facilities. The proposed rule had requirements for existing natural gas-fueled facilities that could have had a material impact on Consumers' natural gas-fueled facilities. However, the EPA announced in March 2024 that the final rule, expected in April or May 2024, will not cover existing natural gas-fueled facilities. Instead, the EPA expects to cover those facilities in a future rulemaking. Consumers will continue to follow the finalization of this rule and any subsequent rules to control greenhouse gases and will continue to evaluate potential impacts to its Clean Energy Plan.
Under the Paris Agreement, an international agreement addressing greenhouse gas emissions, the U.S. has committed to reduce greenhouse gas emissions by 50 to 52 percent from 2005 levels by 2030. Under its Clean Energy Plan, Consumers plans to reduce carbon emissions from its electric business by 60 percent from 2005 levels in 2025. At this time, Consumers does not expect any adverse changes to its environmental strategy as a result of this event, as its plans exceed the nationally committed reduction. The commitment made by the U.S. is not binding without new Congressional legislation.
In 2020, Michigan's Governor signed an executive order creating the Michigan Healthy Climate Plan, which outlines goals for Michigan to achieve economy-wide net-zero greenhouse gas emissions and to be carbon neutral by 2050. The executive order aims for a 28‑percent reduction below 2005 levels of greenhouse gas emissions by 2025. Consumers has already surpassed the 28‑percent reduction milestone for its owned electric generation and previously announced a goal of achieving net-zero carbon emissions from its electric business by 2040. The 2023 Energy Law codifies much of the Governor's goals. For additional details on the 2023 Energy Law, see the Planet section of the Executive Overview.
Increased frequency or intensity of severe or extreme weather events, including those due to climate change, could materially impact Consumers' facilities, energy sales, and results of operations. Consumers is unable to predict these events; however, Consumers evaluates the potential physical impacts of climate change on its operations, including increased frequency or intensity of storm activity; increased precipitation; increased temperature; and changes in lake and river levels. Consumers released a report addressing the physical risks of climate change on its infrastructure in 2022. Consumers is taking steps to mitigate these risks as appropriate.
35
, While Consumers cannot predict the outcome of changes in U.S. policy or of other legislative, executive, or regulatory initiatives involving the potential regulation or reporting of greenhouse gases, it intends to move forward with its Clean Energy Plan, its present net-zero goals, and its emphasis on reliable and resilient supply. Litigation, international treaties, executive orders, federal laws and regulations (including regulations by the EPA), and state laws and regulations, if enacted or ratified, could ultimately impact Consumers. Consumers may be required to:
•replace equipment
•install additional emission control equipment
•purchase emission allowances or credits (including potential greenhouse gas offset credits)
•curtail operations
•arrange for alternative sources of supply
•purchase or build facilities that generate fewer emissions
•mothball, sell, or retire facilities that generate certain emissions
•pursue energy efficiency or demand response measures more swiftly
•take other steps to manage, sequester, or lower the emission of greenhouse gases
Although associated capital or operating costs relating to greenhouse gas regulation or legislation could be material and cost recovery cannot be assured, Consumers expects to recover these costs in rates consistent with the recovery of other reasonable costs of complying with environmental laws and regulations.
CCRs: In 2015, the EPA published a rule regulating CCRs under RCRA. This rule adopts minimum standards for the disposal of non‑hazardous CCRs in CCR landfills and surface impoundments and criteria for the beneficial use of CCRs. The rule also sets out conditions under which some CCR units would be forced to cease receiving CCR wastewater and initiate closure. Due to continued litigation, many aspects of the rule have been remanded to the EPA, resulting in more proposed and final rules.
Separately, Congress passed legislation in 2016 allowing participating states to develop permitting programs for CCRs under RCRA Subtitle D. The EPA was granted authority to review these permitting programs to determine if permits issued under the proposed program would be as protective as the federal rule. Once approved, permits issued from an authorized state would replace the requirement to certify compliance with each aspect of the CCR rule. In 2020, EGLE submitted a regulatory package for Michigan's permit program to the EPA for its review, which is still pending.
Consumers, with agreement from EGLE, completed the work necessary to initiate closure by excavating CCRs or placing a final cover over each of its relevant CCR units prior to the closure initiation deadline. Consumers has historically been authorized to recover in electric rates costs related to coal ash disposal sites.
Water: Multiple water-related regulations apply, or may apply, to Consumers.
The EPA regulates cooling water intake systems of existing electric generating plants under Section 316(b) of the Clean Water Act. The rules seek to reduce alleged harmful impacts on aquatic organisms, such as fish. In 2018, Consumers submitted to EGLE for approval all required studies and recommended plans to comply with Section 316(b) for its coal-fueled units, but has not yet received final approval.
The EPA also regulates the discharge of wastewater through its effluent limitation guidelines for steam electric generating plants. In 2020, the EPA revised previous guidelines related to the discharge of certain wastewater, but allowed for extension of the compliance deadline from the end of 2023 to the end of 2025, upon approval by EGLE through the NPDES permitting process. Consumers received such an
36
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CMS ENERGY CORP 10-Q form for quarterly period ended 2024-03-31, page 34: MPSC Distribution System Audit: In 2022, the MPSC ordered the state's two largest electric utilities, including Consumers, to report on their compliance with regulations and past MPSC orders governing the utilities' response to outages and downed lines. Consumers responded to the MPSC's order as directed.
Additionally, as directed by the MPSC, the MPSC Staff has engaged a third‑party auditor to review all equipment and operations of the two utilities' distribution systems; this audit began in August 2023. The MPSC Staff released a report prepared by the third-party auditor to summarize the audit's progress in December 2023, and a final report is expected in late summer 2024. Consumers is committed to working with the third‑party auditor and the MPSC to continue improving electric reliability and safety in Michigan.
Retention Incentive Program: Under its Clean Energy Plan, Consumers will retire the J.H. Campbell coal-fueled generating units in 2025. In order to ensure necessary staffing at J.H. Campbell through retirement, Consumers has implemented a retention incentive program. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be $50 million; Consumers expects to recognize $10 million of retention benefit costs in 2024. The MPSC has approved deferred accounting treatment for these costs; these expenses are deferred as a regulatory asset. For additional details on this program, see Notes to the Unaudited Consolidated Financial Statements-Note 12, Exit Activities.
Electric Environmental Outlook: Consumers' electric operations are subject to various federal, state, and local environmental laws and regulations. Consumers estimates that it will incur capital expenditures of $240 million from 2024 through 2028 to continue to comply with RCRA, the Clean Air Act, and numerous other environmental regulations. Consumers expects to recover these costs in customer rates, but cannot guarantee this result. Multiple environmental laws and regulations are subject to litigation. Consumers' primary environmental compliance focus includes, but is not limited to, the following matters.
Air Quality: Multiple air quality regulations apply, or may apply, to Consumers' electric utility.
MATS, emission standards for electric generating units published by the EPA based on Section 112 of the Clean Air Act, continue to apply to Consumers. The company has complied, and continues to comply, with the MATS regulation and does not expect MATS to materially impact its environmental strategy.
CSAPR requires Michigan and many other states to improve air quality by reducing power plant emissions that, according to EPA modeling, contribute to ground-level ozone in other downwind states. Since its 2015 effective date, CSAPR has been revised several times. In June 2023, the EPA published the Good Neighbor Plan, a revision to CSAPR. This regulation tightens allowance budgets for electric generating units in Michigan between 2023 and 2029 and changes the mechanism for allocating such allowances on a year-over-year basis beginning in 2026. Consumers' initial evaluation of this regulation indicates that it will have minimal financial and operational impact in the near term. Additionally, Consumers does not expect any major financial and operational impact in the long term. However, due to the dynamic nature of this regulation, it is difficult to forecast the long-term impact.
In 2015, the EPA lowered the NAAQS for ozone and made it more difficult to construct or modify power plants and other emission sources in areas of the country that do not meet the ozone standard. As of May 2023, three counties in western Michigan have been designated as not meeting the ozone standard. None of Consumers' fossil-fuel-fired generating units are located in these areas.
Additionally, in March 2024, the EPA published a lower fine particulate matter NAAQS, which will likely result in newly designated nonattainment areas in Michigan starting in 2026. Consumers does not expect this rule to have significant impacts on its fossil-fuel-fired generating assets or its clean energy
34
, CMS ENERGY CORP 10-Q form for quarterly period ended 2024-03-31, page 35: strategy. Consumers will continue to monitor NAAQS rulemakings and evaluate potential impacts to its generating assets.
Consumers continues to evaluate these rules in conjunction with other EPA and EGLE rulemakings, litigation, executive orders, treaties, and congressional actions. This evaluation could result in:
•a change in Consumers' fuel mix
•changes in the types of generating units Consumers may purchase or build in the future
•changes in how certain units are operated, including the installation of additional emission control equipment
•the retirement, mothballing, or repowering with an alternative fuel of some of Consumers' generating units
•changes in Consumers' environmental compliance costs
•the purchase or sale of allowances
Greenhouse Gases: There have been numerous legislative and regulatory initiatives at the state, regional, national, and international levels that involve the potential regulation and reporting of greenhouse gases. Consumers continues to monitor and comment on these initiatives, as appropriate.
In May 2023, the EPA released its proposed rule to address greenhouse gas emissions from existing fossil-fuel-fired electric generating units. Under its Clean Energy Plan, Consumers will eliminate the use of coal-fueled generation in 2025. Therefore, this proposed rule will not materially impact Consumers over the remaining operating lives of these coal-fueled facilities. The proposed rule had requirements for existing natural gas-fueled facilities that could have had a material impact on Consumers' natural gas-fueled facilities. However, the EPA announced in March 2024 that the final rule, expected in April or May 2024, will not cover existing natural gas-fueled facilities. Instead, the EPA expects to cover those facilities in a future rulemaking. Consumers will continue to follow the finalization of this rule and any subsequent rules to control greenhouse gases and will continue to evaluate potential impacts to its Clean Energy Plan.
Under the Paris Agreement, an international agreement addressing greenhouse gas emissions, the U.S. has committed to reduce greenhouse gas emissions by 50 to 52 percent from 2005 levels by 2030. Under its Clean Energy Plan, Consumers plans to reduce carbon emissions from its electric business by 60 percent from 2005 levels in 2025. At this time, Consumers does not expect any adverse changes to its environmental strategy as a result of this event, as its plans exceed the nationally committed reduction. The commitment made by the U.S. is not binding without new Congressional legislation.
In 2020, Michigan's Governor signed an executive order creating the Michigan Healthy Climate Plan, which outlines goals for Michigan to achieve economy-wide net-zero greenhouse gas emissions and to be carbon neutral by 2050. The executive order aims for a 28‑percent reduction below 2005 levels of greenhouse gas emissions by 2025. Consumers has already surpassed the 28‑percent reduction milestone for its owned electric generation and previously announced a goal of achieving net-zero carbon emissions from its electric business by 2040. The 2023 Energy Law codifies much of the Governor's goals. For additional details on the 2023 Energy Law, see the Planet section of the Executive Overview.
Increased frequency or intensity of severe or extreme weather events, including those due to climate change, could materially impact Consumers' facilities, energy sales, and results of operations. Consumers is unable to predict these events; however, Consumers evaluates the potential physical impacts of climate change on its operations, including increased frequency or intensity of storm activity; increased precipitation; increased temperature; and changes in lake and river levels. Consumers released a report addressing the physical risks of climate change on its infrastructure in 2022. Consumers is taking steps to mitigate these risks as appropriate.
35
, CMS ENERGY CORP 10-Q form for quarterly period ended 2024-03-31, page 36: While Consumers cannot predict the outcome of changes in U.S. policy or of other legislative, executive, or regulatory initiatives involving the potential regulation or reporting of greenhouse gases, it intends to move forward with its Clean Energy Plan, its present net-zero goals, and its emphasis on reliable and resilient supply. Litigation, international treaties, executive orders, federal laws and regulations (including regulations by the EPA), and state laws and regulations, if enacted or ratified, could ultimately impact Consumers. Consumers may be required to:
•replace equipment
•install additional emission control equipment
•purchase emission allowances or credits (including potential greenhouse gas offset credits)
•curtail operations
•arrange for alternative sources of supply
•purchase or build facilities that generate fewer emissions
•mothball, sell, or retire facilities that generate certain emissions
•pursue energy efficiency or demand response measures more swiftly
•take other steps to manage, sequester, or lower the emission of greenhouse gases
Although associated capital or operating costs relating to greenhouse gas regulation or legislation could be material and cost recovery cannot be assured, Consumers expects to recover these costs in rates consistent with the recovery of other reasonable costs of complying with environmental laws and regulations.
CCRs: In 2015, the EPA published a rule regulating CCRs under RCRA. This rule adopts minimum standards for the disposal of non‑hazardous CCRs in CCR landfills and surface impoundments and criteria for the beneficial use of CCRs. The rule also sets out conditions under which some CCR units would be forced to cease receiving CCR wastewater and initiate closure. Due to continued litigation, many aspects of the rule have been remanded to the EPA, resulting in more proposed and final rules.
Separately, Congress passed legislation in 2016 allowing participating states to develop permitting programs for CCRs under RCRA Subtitle D. The EPA was granted authority to review these permitting programs to determine if permits issued under the proposed program would be as protective as the federal rule. Once approved, permits issued from an authorized state would replace the requirement to certify compliance with each aspect of the CCR rule. In 2020, EGLE submitted a regulatory package for Michigan's permit program to the EPA for its review, which is still pending.
Consumers, with agreement from EGLE, completed the work necessary to initiate closure by excavating CCRs or placing a final cover over each of its relevant CCR units prior to the closure initiation deadline. Consumers has historically been authorized to recover in electric rates costs related to coal ash disposal sites.
Water: Multiple water-related regulations apply, or may apply, to Consumers.
The EPA regulates cooling water intake systems of existing electric generating plants under Section 316(b) of the Clean Water Act. The rules seek to reduce alleged harmful impacts on aquatic organisms, such as fish. In 2018, Consumers submitted to EGLE for approval all required studies and recommended plans to comply with Section 316(b) for its coal-fueled units, but has not yet received final approval.
The EPA also regulates the discharge of wastewater through its effluent limitation guidelines for steam electric generating plants. In 2020, the EPA revised previous guidelines related to the discharge of certain wastewater, but allowed for extension of the compliance deadline from the end of 2023 to the end of 2025, upon approval by EGLE through the NPDES permitting process. Consumers received such an
36
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MPSC Distribution System Audit: In 2022, the MPSC ordered the state's two largest electric utilities, including Consumers, to report on their compliance with regulations and past MPSC orders governing the utilities' response to outages and downed lines. Consumers responded to the MPSC's order as directed.
Additionally, as directed by the MPSC, the MPSC Staff has engaged a third‑party auditor to review all equipment and operations of the two utilities' distribution systems; this audit began in August 2023. The MPSC Staff released a report prepared by the third-party auditor to summarize the audit's progress in December 2023, and a final report is expected in late summer 2024. Consumers is committed to working with the third‑party auditor and the MPSC to continue improving electric reliability and safety in Michigan.
Retention Incentive Program: Under its Clean Energy Plan, Consumers will retire the J.H. Campbell coal-fueled generating units in 2025. In order to ensure necessary staffing at J.H. Campbell through retirement, Consumers has implemented a retention incentive program. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be $50 million; Consumers expects to recognize $10 million of retention benefit costs in 2024. The MPSC has approved deferred accounting treatment for these costs; these expenses are deferred as a regulatory asset. For additional details on this program, see Notes to the Unaudited Consolidated Financial Statements-Note 12, Exit Activities.
Electric Environmental Outlook: Consumers' electric operations are subject to various federal, state, and local environmental laws and regulations. Consumers estimates that it will incur capital expenditures of $240 million from 2024 through 2028 to continue to comply with RCRA, the Clean Air Act, and numerous other environmental regulations. Consumers expects to recover these costs in customer rates, but cannot guarantee this result. Multiple environmental laws and regulations are subject to litigation. Consumers' primary environmental compliance focus includes, but is not limited to, the following matters.
Air Quality: Multiple air quality regulations apply, or may apply, to Consumers' electric utility.
MATS, emission standards for electric generating units published by the EPA based on Section 112 of the Clean Air Act, continue to apply to Consumers. The company has complied, and continues to comply, with the MATS regulation and does not expect MATS to materially impact its environmental strategy.
CSAPR requires Michigan and many other states to improve air quality by reducing power plant emissions that, according to EPA modeling, contribute to ground-level ozone in other downwind states. Since its 2015 effective date, CSAPR has been revised several times. In June 2023, the EPA published the Good Neighbor Plan, a revision to CSAPR. This regulation tightens allowance budgets for electric generating units in Michigan between 2023 and 2029 and changes the mechanism for allocating such allowances on a year-over-year basis beginning in 2026. Consumers' initial evaluation of this regulation indicates that it will have minimal financial and operational impact in the near term. Additionally, Consumers does not expect any major financial and operational impact in the long term. However, due to the dynamic nature of this regulation, it is difficult to forecast the long-term impact.
In 2015, the EPA lowered the NAAQS for ozone and made it more difficult to construct or modify power plants and other emission sources in areas of the country that do not meet the ozone standard. As of May 2023, three counties in western Michigan have been designated as not meeting the ozone standard. None of Consumers' fossil-fuel-fired generating units are located in these areas.
Additionally, in March 2024, the EPA published a lower fine particulate matter NAAQS, which will likely result in newly designated nonattainment areas in Michigan starting in 2026. Consumers does not expect this rule to have significant impacts on its fossil-fuel-fired generating assets or its clean energy
34
, strategy. Consumers will continue to monitor NAAQS rulemakings and evaluate potential impacts to its generating assets.
Consumers continues to evaluate these rules in conjunction with other EPA and EGLE rulemakings, litigation, executive orders, treaties, and congressional actions. This evaluation could result in:
•a change in Consumers' fuel mix
•changes in the types of generating units Consumers may purchase or build in the future
•changes in how certain units are operated, including the installation of additional emission control equipment
•the retirement, mothballing, or repowering with an alternative fuel of some of Consumers' generating units
•changes in Consumers' environmental compliance costs
•the purchase or sale of allowances
Greenhouse Gases: There have been numerous legislative and regulatory initiatives at the state, regional, national, and international levels that involve the potential regulation and reporting of greenhouse gases. Consumers continues to monitor and comment on these initiatives, as appropriate.
In May 2023, the EPA released its proposed rule to address greenhouse gas emissions from existing fossil-fuel-fired electric generating units. Under its Clean Energy Plan, Consumers will eliminate the use of coal-fueled generation in 2025. Therefore, this proposed rule will not materially impact Consumers over the remaining operating lives of these coal-fueled facilities. The proposed rule had requirements for existing natural gas-fueled facilities that could have had a material impact on Consumers' natural gas-fueled facilities. However, the EPA announced in March 2024 that the final rule, expected in April or May 2024, will not cover existing natural gas-fueled facilities. Instead, the EPA expects to cover those facilities in a future rulemaking. Consumers will continue to follow the finalization of this rule and any subsequent rules to control greenhouse gases and will continue to evaluate potential impacts to its Clean Energy Plan.
Under the Paris Agreement, an international agreement addressing greenhouse gas emissions, the U.S. has committed to reduce greenhouse gas emissions by 50 to 52 percent from 2005 levels by 2030. Under its Clean Energy Plan, Consumers plans to reduce carbon emissions from its electric business by 60 percent from 2005 levels in 2025. At this time, Consumers does not expect any adverse changes to its environmental strategy as a result of this event, as its plans exceed the nationally committed reduction. The commitment made by the U.S. is not binding without new Congressional legislation.
In 2020, Michigan's Governor signed an executive order creating the Michigan Healthy Climate Plan, which outlines goals for Michigan to achieve economy-wide net-zero greenhouse gas emissions and to be carbon neutral by 2050. The executive order aims for a 28‑percent reduction below 2005 levels of greenhouse gas emissions by 2025. Consumers has already surpassed the 28‑percent reduction milestone for its owned electric generation and previously announced a goal of achieving net-zero carbon emissions from its electric business by 2040. The 2023 Energy Law codifies much of the Governor's goals. For additional details on the 2023 Energy Law, see the Planet section of the Executive Overview.
Increased frequency or intensity of severe or extreme weather events, including those due to climate change, could materially impact Consumers' facilities, energy sales, and results of operations. Consumers is unable to predict these events; however, Consumers evaluates the potential physical impacts of climate change on its operations, including increased frequency or intensity of storm activity; increased precipitation; increased temperature; and changes in lake and river levels. Consumers released a report addressing the physical risks of climate change on its infrastructure in 2022. Consumers is taking steps to mitigate these risks as appropriate.
35
, While Consumers cannot predict the outcome of changes in U.S. policy or of other legislative, executive, or regulatory initiatives involving the potential regulation or reporting of greenhouse gases, it intends to move forward with its Clean Energy Plan, its present net-zero goals, and its emphasis on reliable and resilient supply. Litigation, international treaties, executive orders, federal laws and regulations (including regulations by the EPA), and state laws and regulations, if enacted or ratified, could ultimately impact Consumers. Consumers may be required to:
•replace equipment
•install additional emission control equipment
•purchase emission allowances or credits (including potential greenhouse gas offset credits)
•curtail operations
•arrange for alternative sources of supply
•purchase or build facilities that generate fewer emissions
•mothball, sell, or retire facilities that generate certain emissions
•pursue energy efficiency or demand response measures more swiftly
•take other steps to manage, sequester, or lower the emission of greenhouse gases
Although associated capital or operating costs relating to greenhouse gas regulation or legislation could be material and cost recovery cannot be assured, Consumers expects to recover these costs in rates consistent with the recovery of other reasonable costs of complying with environmental laws and regulations.
CCRs: In 2015, the EPA published a rule regulating CCRs under RCRA. This rule adopts minimum standards for the disposal of non‑hazardous CCRs in CCR landfills and surface impoundments and criteria for the beneficial use of CCRs. The rule also sets out conditions under which some CCR units would be forced to cease receiving CCR wastewater and initiate closure. Due to continued litigation, many aspects of the rule have been remanded to the EPA, resulting in more proposed and final rules.
Separately, Congress passed legislation in 2016 allowing participating states to develop permitting programs for CCRs under RCRA Subtitle D. The EPA was granted authority to review these permitting programs to determine if permits issued under the proposed program would be as protective as the federal rule. Once approved, permits issued from an authorized state would replace the requirement to certify compliance with each aspect of the CCR rule. In 2020, EGLE submitted a regulatory package for Michigan's permit program to the EPA for its review, which is still pending.
Consumers, with agreement from EGLE, completed the work necessary to initiate closure by excavating CCRs or placing a final cover over each of its relevant CCR units prior to the closure initiation deadline. Consumers has historically been authorized to recover in electric rates costs related to coal ash disposal sites.
Water: Multiple water-related regulations apply, or may apply, to Consumers.
The EPA regulates cooling water intake systems of existing electric generating plants under Section 316(b) of the Clean Water Act. The rules seek to reduce alleged harmful impacts on aquatic organisms, such as fish. In 2018, Consumers submitted to EGLE for approval all required studies and recommended plans to comply with Section 316(b) for its coal-fueled units, but has not yet received final approval.
The EPA also regulates the discharge of wastewater through its effluent limitation guidelines for steam electric generating plants. In 2020, the EPA revised previous guidelines related to the discharge of certain wastewater, but allowed for extension of the compliance deadline from the end of 2023 to the end of 2025, upon approval by EGLE through the NPDES permitting process. Consumers received such an
36
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q_Ri013
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What strategic initiatives are in place to expand Fortinet’s market presence?
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Fortinet is expanding its market presence through several strategic initiatives centered around innovation, global reach, and customer engagement. Its integrated Fortinet Security Fabric platform combines secure networking, Unified Secure Access Service Edge (SASE), and AI-driven Security Operations (SecOps) to meet diverse customer needs across industries such as financial services, healthcare, retail, and government. The company leverages proprietary technologies, including FortiOS and ASIC hardware, to enhance performance and scalability, delivering over 30 functions across physical, virtual, cloud, and SaaS environments. Fortinet's commitment to innovation is reflected in its extensive patent portfolio, comprising 985 U.S. patents and 1,323 global patents as of June 30, 2024. Additionally, Fortinet maintains a robust global presence with R&D centers in the United States and Canada and support centers worldwide. To address the cybersecurity skills gap, the Fortinet Training Institute has issued over one million certifications, fostering a skilled workforce and strengthening customer trust. These initiatives position Fortinet as a leader in the cybersecurity market.
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Risk
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27
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0001262039-24-000037
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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Fortinet, Inc. 10-Q form for quarterly period ended 2024-06-30, page 27: •expected impact of plans and strategy for the acceleration of our points of presence ("PoP") deployment;
•expectations that our operating expense will increase year over year in absolute dollars during the remainder of 2024;
•expectations that proceeds from the exercise of stock options in future years will be adversely impacted by the increased mix of restricted stock units and performance stock units versus stock options granted or a decline in our stock price;
•uncertain tax benefits and our effective domestic and global tax rates, the impact of interpretations of or changes to tax law, and the timing of tax payments;
•expectations regarding spending related to real estate assets, acquisitions and development, including data centers and points of presence, office building and warehouse investments, as well as other capital expenditures and to the impact on free cash flow and expenses;
•estimates of a range of 2024 spending on capital expenditures;
•expected outcomes and liabilities in litigation;
•our intentions regarding share repurchases and the sufficiency of our existing cash, cash equivalents and investments to meet our cash needs, including our debt servicing requirements, for at least the next 12 months;
•other statements regarding our future operations, financial condition and prospects and business strategies; and
•adoption and impact of new accounting standards.
These forward-looking statements are subject to certain risks and uncertainties that could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q and, in particular, the risks discussed under the heading "Risk Factors" in Part II, Item 1A of this Quarterly Report on Form 10-Q and those discussed in other documents we file with the SEC. We undertake no obligation, and specifically disclaim any obligation, to revise or publicly release the results of any revision to these and any other forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Business Overview
Fortinet is a leader in cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere. Our integrated platform, the Fortinet Security Fabric, spans secure networking, unified SASE and AI-driven security operations to deliver cybersecurity where our customers need it. As of June 30, 2024, over a half million customers trusted our solutions, including enterprises such as in the financial services, retail, healthcare and operational technology market verticals, communication and security service providers, and government organizations. As a global company headquartered in Sunnyvale, California our research and development is centered in the United States and Canada with a global footprint of support and centers of excellence around the world. As of June 30, 2024, we held 985 U.S. patents and 1,323 global patents and we are recognized in over 100 enterprise analyst reports demonstrating both our vision and execution across security and networking products.
•Secure Networking-Our Secure Networking solutions focus on the convergence of networking and security via FortiOS, our networking and security operating system that is the foundation of our Fortinet Security Fabric platform and supports over 30 functions that can be delivered via a physical, virtual, cloud or software as a service ("SaaS") solution. When delivered via our network firewall appliances, functionality is accelerated through our proprietary ASIC technology. These proprietary ASICs, allow our systems to scale, run multiple applications at higher performance, lower power consumption and perform more processor-intensive operations, such as inspecting encrypted traffic, including streaming video. The Network Firewall solution consists of FortiGate data centers, hyperscale and distributed firewalls, as well as encrypted applications (SSL inspection, Virtual Private Network and IPsec connectivity). Our ability to converge networking and security also enables the ethernet to become an extension of a company's security infrastructure through FortiSwitch and FortiLink. Our wireless LAN solution leverages secure networking to provide secure wireless access for the enterprise LAN edge. FortiExtender secures 5G/LTE and remote
27
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•expected impact of plans and strategy for the acceleration of our points of presence ("PoP") deployment;
•expectations that our operating expense will increase year over year in absolute dollars during the remainder of 2024;
•expectations that proceeds from the exercise of stock options in future years will be adversely impacted by the increased mix of restricted stock units and performance stock units versus stock options granted or a decline in our stock price;
•uncertain tax benefits and our effective domestic and global tax rates, the impact of interpretations of or changes to tax law, and the timing of tax payments;
•expectations regarding spending related to real estate assets, acquisitions and development, including data centers and points of presence, office building and warehouse investments, as well as other capital expenditures and to the impact on free cash flow and expenses;
•estimates of a range of 2024 spending on capital expenditures;
•expected outcomes and liabilities in litigation;
•our intentions regarding share repurchases and the sufficiency of our existing cash, cash equivalents and investments to meet our cash needs, including our debt servicing requirements, for at least the next 12 months;
•other statements regarding our future operations, financial condition and prospects and business strategies; and
•adoption and impact of new accounting standards.
These forward-looking statements are subject to certain risks and uncertainties that could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q and, in particular, the risks discussed under the heading "Risk Factors" in Part II, Item 1A of this Quarterly Report on Form 10-Q and those discussed in other documents we file with the SEC. We undertake no obligation, and specifically disclaim any obligation, to revise or publicly release the results of any revision to these and any other forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Business Overview
Fortinet is a leader in cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere. Our integrated platform, the Fortinet Security Fabric, spans secure networking, unified SASE and AI-driven security operations to deliver cybersecurity where our customers need it. As of June 30, 2024, over a half million customers trusted our solutions, including enterprises such as in the financial services, retail, healthcare and operational technology market verticals, communication and security service providers, and government organizations. As a global company headquartered in Sunnyvale, California our research and development is centered in the United States and Canada with a global footprint of support and centers of excellence around the world. As of June 30, 2024, we held 985 U.S. patents and 1,323 global patents and we are recognized in over 100 enterprise analyst reports demonstrating both our vision and execution across security and networking products.
•Secure Networking-Our Secure Networking solutions focus on the convergence of networking and security via FortiOS, our networking and security operating system that is the foundation of our Fortinet Security Fabric platform and supports over 30 functions that can be delivered via a physical, virtual, cloud or software as a service ("SaaS") solution. When delivered via our network firewall appliances, functionality is accelerated through our proprietary ASIC technology. These proprietary ASICs, allow our systems to scale, run multiple applications at higher performance, lower power consumption and perform more processor-intensive operations, such as inspecting encrypted traffic, including streaming video. The Network Firewall solution consists of FortiGate data centers, hyperscale and distributed firewalls, as well as encrypted applications (SSL inspection, Virtual Private Network and IPsec connectivity). Our ability to converge networking and security also enables the ethernet to become an extension of a company's security infrastructure through FortiSwitch and FortiLink. Our wireless LAN solution leverages secure networking to provide secure wireless access for the enterprise LAN edge. FortiExtender secures 5G/LTE and remote
27
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Fortinet, Inc. 10-Q form for quarterly period ended 2024-06-30, page 27: •expected impact of plans and strategy for the acceleration of our points of presence ("PoP") deployment;
•expectations that our operating expense will increase year over year in absolute dollars during the remainder of 2024;
•expectations that proceeds from the exercise of stock options in future years will be adversely impacted by the increased mix of restricted stock units and performance stock units versus stock options granted or a decline in our stock price;
•uncertain tax benefits and our effective domestic and global tax rates, the impact of interpretations of or changes to tax law, and the timing of tax payments;
•expectations regarding spending related to real estate assets, acquisitions and development, including data centers and points of presence, office building and warehouse investments, as well as other capital expenditures and to the impact on free cash flow and expenses;
•estimates of a range of 2024 spending on capital expenditures;
•expected outcomes and liabilities in litigation;
•our intentions regarding share repurchases and the sufficiency of our existing cash, cash equivalents and investments to meet our cash needs, including our debt servicing requirements, for at least the next 12 months;
•other statements regarding our future operations, financial condition and prospects and business strategies; and
•adoption and impact of new accounting standards.
These forward-looking statements are subject to certain risks and uncertainties that could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q and, in particular, the risks discussed under the heading "Risk Factors" in Part II, Item 1A of this Quarterly Report on Form 10-Q and those discussed in other documents we file with the SEC. We undertake no obligation, and specifically disclaim any obligation, to revise or publicly release the results of any revision to these and any other forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Business Overview
Fortinet is a leader in cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere. Our integrated platform, the Fortinet Security Fabric, spans secure networking, unified SASE and AI-driven security operations to deliver cybersecurity where our customers need it. As of June 30, 2024, over a half million customers trusted our solutions, including enterprises such as in the financial services, retail, healthcare and operational technology market verticals, communication and security service providers, and government organizations. As a global company headquartered in Sunnyvale, California our research and development is centered in the United States and Canada with a global footprint of support and centers of excellence around the world. As of June 30, 2024, we held 985 U.S. patents and 1,323 global patents and we are recognized in over 100 enterprise analyst reports demonstrating both our vision and execution across security and networking products.
•Secure Networking-Our Secure Networking solutions focus on the convergence of networking and security via FortiOS, our networking and security operating system that is the foundation of our Fortinet Security Fabric platform and supports over 30 functions that can be delivered via a physical, virtual, cloud or software as a service ("SaaS") solution. When delivered via our network firewall appliances, functionality is accelerated through our proprietary ASIC technology. These proprietary ASICs, allow our systems to scale, run multiple applications at higher performance, lower power consumption and perform more processor-intensive operations, such as inspecting encrypted traffic, including streaming video. The Network Firewall solution consists of FortiGate data centers, hyperscale and distributed firewalls, as well as encrypted applications (SSL inspection, Virtual Private Network and IPsec connectivity). Our ability to converge networking and security also enables the ethernet to become an extension of a company's security infrastructure through FortiSwitch and FortiLink. Our wireless LAN solution leverages secure networking to provide secure wireless access for the enterprise LAN edge. FortiExtender secures 5G/LTE and remote
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•expected impact of plans and strategy for the acceleration of our points of presence ("PoP") deployment;
•expectations that our operating expense will increase year over year in absolute dollars during the remainder of 2024;
•expectations that proceeds from the exercise of stock options in future years will be adversely impacted by the increased mix of restricted stock units and performance stock units versus stock options granted or a decline in our stock price;
•uncertain tax benefits and our effective domestic and global tax rates, the impact of interpretations of or changes to tax law, and the timing of tax payments;
•expectations regarding spending related to real estate assets, acquisitions and development, including data centers and points of presence, office building and warehouse investments, as well as other capital expenditures and to the impact on free cash flow and expenses;
•estimates of a range of 2024 spending on capital expenditures;
•expected outcomes and liabilities in litigation;
•our intentions regarding share repurchases and the sufficiency of our existing cash, cash equivalents and investments to meet our cash needs, including our debt servicing requirements, for at least the next 12 months;
•other statements regarding our future operations, financial condition and prospects and business strategies; and
•adoption and impact of new accounting standards.
These forward-looking statements are subject to certain risks and uncertainties that could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q and, in particular, the risks discussed under the heading "Risk Factors" in Part II, Item 1A of this Quarterly Report on Form 10-Q and those discussed in other documents we file with the SEC. We undertake no obligation, and specifically disclaim any obligation, to revise or publicly release the results of any revision to these and any other forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Business Overview
Fortinet is a leader in cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere. Our integrated platform, the Fortinet Security Fabric, spans secure networking, unified SASE and AI-driven security operations to deliver cybersecurity where our customers need it. As of June 30, 2024, over a half million customers trusted our solutions, including enterprises such as in the financial services, retail, healthcare and operational technology market verticals, communication and security service providers, and government organizations. As a global company headquartered in Sunnyvale, California our research and development is centered in the United States and Canada with a global footprint of support and centers of excellence around the world. As of June 30, 2024, we held 985 U.S. patents and 1,323 global patents and we are recognized in over 100 enterprise analyst reports demonstrating both our vision and execution across security and networking products.
•Secure Networking-Our Secure Networking solutions focus on the convergence of networking and security via FortiOS, our networking and security operating system that is the foundation of our Fortinet Security Fabric platform and supports over 30 functions that can be delivered via a physical, virtual, cloud or software as a service ("SaaS") solution. When delivered via our network firewall appliances, functionality is accelerated through our proprietary ASIC technology. These proprietary ASICs, allow our systems to scale, run multiple applications at higher performance, lower power consumption and perform more processor-intensive operations, such as inspecting encrypted traffic, including streaming video. The Network Firewall solution consists of FortiGate data centers, hyperscale and distributed firewalls, as well as encrypted applications (SSL inspection, Virtual Private Network and IPsec connectivity). Our ability to converge networking and security also enables the ethernet to become an extension of a company's security infrastructure through FortiSwitch and FortiLink. Our wireless LAN solution leverages secure networking to provide secure wireless access for the enterprise LAN edge. FortiExtender secures 5G/LTE and remote
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q_Ri014
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What strategies are implemented to ensure operational resilience against IT failures?
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Fortinet implements several strategies to ensure operational resilience against IT failures. The company relies on multiple layers of security, including advanced threat protection, data encryption, and continuous system monitoring, to protect its internal enterprise IT networks, operational networks, and research and development networks. These measures are designed to safeguard against a range of threats, such as phishing attacks, ransomware, denial-of-service attacks, and vulnerabilities in third-party hardware and software. Additionally, Fortinet acknowledges the risk of insider threats and has programs and training in place to mitigate this risk, though it notes that these may not be fully effective in all cases. The company also highlights the importance of business continuity and disaster recovery plans, including system redundancies and backups hosted across its data centers, colocation vendors, and public cloud providers. By distributing its operations and hosting services across multiple environments, Fortinet aims to reduce the risk of complete service disruption due to IT failures. Moreover, Fortinet continuously monitors and upgrades its internal systems, such as ERP and CRM, to ensure they meet operational requirements and provide reliable support for critical business functions.
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Risk
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63, 64
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0001262039-24-000037
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ITEM 1A. Risk Factors
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Fortinet, Inc. 10-Q form for quarterly period ended 2024-06-30, page 63: and face additional costs associated with any failure to meet service-level agreements. Any service-level failures could adversely affect our business, financial condition and results of operations.
Risks Related to our Systems and Technology
If our internal enterprise IT networks, on which we conduct internal business and interface externally, our operational networks, through which we connect to customers, vendors and partners systems and provide services, or our research and development networks, our back-end labs and cloud stacks hosted in our data centers, colocation vendors or public cloud providers, through which we research, develop and host products and services, are compromised, public perception of our products and services may be harmed, our customers may be breached and harmed, we may become subject to liability, and our business, operating results and stock price may be adversely impacted.
Our success depends on the market's confidence in our ability to provide effective network security protection. Despite our efforts and processes to prevent breaches of our internal networks, systems and websites, whether in our owned data centers, cloud providers or colocations, we are still vulnerable to computer viruses, break-ins, phishing attacks, ransomware attacks, attempts to overload our servers with denial-of-service, vulnerabilities in vendor hardware and software that we leverage, advanced persistent threats from sophisticated actors and other cyber-attacks and similar disruptions from unauthorized access to our internal networks, systems or websites, whether in our owned data centers, cloud providers or colocations. Our security measures may also be breached due to employee error, malfeasance or otherwise, which breaches may be more difficult to detect than outsider threats, and the existing programs and trainings we have in place to prevent such insider threats may not be effective or sufficient. Third parties may also attempt to fraudulently induce our employees to transfer funds or disclose information in order to gain access to our networks and confidential information. Third parties may also send our customers or others malware or malicious emails that falsely indicate that we are the source, potentially causing lost confidence in us and reputational harm. We cannot guarantee that the measures we have taken to protect our networks, systems and websites, whether in our owned data centers, cloud providers or colocations, will provide adequate security. Moreover, because we provide network security products, we may be a more attractive target for attacks by computer hackers and any security breaches and other security incidents involving us may result in more harm to our reputation and brand than companies that do not sell network security solutions. Hackers and malicious parties may be able to develop and deploy viruses, worms, ransomware and other malicious software programs that attack our products and customers, that impersonate our update servers in an effort to access customer networks and negatively impact customers, or otherwise exploit any security vulnerabilities of our products, or attempt to fraudulently induce our employees, customers or others to disclose passwords or other sensitive information or unwittingly provide access to our internal networks, systems or data. Moreover, the threat landscape continues to evolve as a result of new technologies, including artificial intelligence ("AI"), and malicious parties may use AI to help attack our solutions, systems, and our customers.
For example, from time to time, we have discovered that unauthorized parties have targeted us using sophisticated techniques, including by stealing technical data and attempting to steal private encryption keys, in an effort to both impersonate our products and threat intelligence update services and possibly attempt other attack methodologies. Using these techniques, these unauthorized parties have tried, and may in the future try, to gain access to certain of our and our customers' systems. We have also, for example, discovered that unauthorized parties have targeted vulnerabilities in our product software and infrastructure in an effort to gain entry into our customers' networks. In addition, in general threat actors use dark web forums to sell organizations' stolen credentials. If threat actors sell valid credentials used by our customers to access our services, it is possible that unauthorized third parties may use such stolen credentials to try to gain access to our services. These and other hacking efforts against us and our customers may be ongoing and may happen in the future.
Although we take numerous measures and implement multiple layers of security to protect our networks, we cannot guarantee that our security products, processes and services will secure against all threats. Further, we cannot be sure that third parties have not been, or will not in the future be, successful in improperly accessing our systems and our customers' systems, which could negatively impact us and our customers. An actual breach could significantly harm us and our customers, and an actual or perceived breach, or any other actual or perceived data security incident, threat or vulnerability, that involves our supply chains, networks, systems or websites and/or our customers' supply chains, networks, systems or websites could adversely affect the market perception of our products and services and investor confidence in our company. Any breach of our networks, systems or websites could impair our ability to operate our business, including our ability to provide FortiGuard and other security subscription and FortiCare technical support services to our end-customers, lead to interruptions or system slowdowns, cause loss of critical data or lead to the unauthorized disclosure or use of confidential, proprietary or sensitive information. We could also be subject to liability and litigation and reputational harm and our channel partners and end-customers may be harmed, lose confidence in us and decrease or cease using our products and services. Any breach of our internal networks, systems or websites could have an adverse effect on our business, operating results and stock price.
In addition, there has been a general increase in phishing attempts and spam emails as well as social engineering attempts from hackers, and many of our employees continue to work remotely which may pose additional data security risks in
63
, Fortinet, Inc. 10-Q form for quarterly period ended 2024-06-30, page 64: the event remote work environments are not as secure as office environments. Any security incident could negatively impact our reputation and results of operations.
If we do not appropriately manage any future growth, including through the expansion of our real estate facilities, or are unable to improve our systems, processes and controls, our operating results will be negatively affected.
We rely heavily on information technology to help manage critical functions such as order configuration, pricing and quoting, revenue recognition, financial forecasts, inventory and supply chain management and trade compliance reviews. In addition, we have been slow to adopt and implement certain automated functions, which could have a negative impact on our business. For example, our order processing relies on both manual data entry of customer purchase orders received through email and electronic data interchange (EDI). Due to the use of manual processes and the fact that we may receive a large amount of our orders in the last few weeks of any given quarter, an interruption in our email service or other systems could result in delayed order fulfillment and decreased billings and revenue for that quarter.
To manage any future growth effectively, we must continue to improve and expand our information technology and financial, operating, security and administrative systems and controls, and our business continuity and disaster recovery plans and processes. We must also continue to manage headcount, capital and processes in an efficient manner. We may not be able to successfully implement requisite improvements to these systems, controls and processes, such as system capacity, access, security and change management controls, in a timely or efficient manner. Our failure to improve our systems and processes, or their failure to operate in the intended manner, whether as a result of the significant growth of our business or otherwise, may result in our inability to manage the growth of our business and to accurately forecast our revenue, expenses and earnings, or to prevent certain losses. Moreover, the failure of our systems and processes could undermine our ability to provide accurate, timely and reliable reports on our financial and operating results and could impact the effectiveness of our internal control over financial reporting.
In addition, our systems, processes and controls may not prevent or detect all errors, omissions, malfeasance or fraud, such as corruption and improper "side agreements" that may impact revenue recognition or result in financial liability. Our productivity and the quality of our products and services may also be adversely affected if we do not integrate and train our new employees quickly and effectively. Any future growth would add complexity to our organization and require effective coordination throughout our organization. Failure to ensure appropriate systems, processes and controls and to manage any future growth effectively could result in increased costs and harm our reputation and results of operations.
We have expanded our office real estate holdings to meet our projected growing need for office space. These plans will require significant capital expenditure over the next several years and involve certain risks, including impairment charges and acceleration of depreciation, changes in future business strategy that may decrease the need for expansion (such as a decrease in headcount or increase in work from home) and risks related to construction. Future changes in growth or fluctuations in cash flow may also negatively impact our ability to pay for these projects or free cash flow. Additionally, inaccuracies in our projected capital expenditures could negatively impact our business, operating results and financial condition.
We may experience difficulties maintaining and expanding our internal business management systems.
The maintenance of our internal business management systems, such as our Enterprise Resource Planning ("ERP") and Customer Relationship Management ("CRM") systems, has required, and will continue to require, the investment of significant financial and human resources. In addition, we may choose to upgrade or expand the functionality of our internal systems, leading to additional costs. Deficiencies in our design or maintenance of our internal systems may adversely affect our ability to sell products and services, forecast orders, process orders, ship products, provide services and customer support, send invoices and track payments, fulfill contractual obligations, accurately maintain books and records, provide accurate, timely and reliable reports on our financial and operating results or otherwise operate our business. Additionally, if any of our internal systems does not operate as intended, the effectiveness of our internal control over financial reporting could be adversely affected or our ability to assess it adequately could be delayed. Further, we may expand the scope of our ERP and CRM systems. Our operating results may be adversely affected if these upgrades or expansions are delayed or if the systems do not function as intended or are not sufficient to meet our operating requirements.
We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results.
AI presents new risks and challenges that may affect our business. We have made, and expect to continue to make investments to integrate AI and machine learning technology into our solutions, as evidenced by our acquisition of Lacework. AI presents risks, challenges, and potentially unintended consequences that could impact our ability to effectively use of AI successfully in our business. Given the nature of AI technology, we face an evolving regulatory landscape and significant competition from other companies. Our AI efforts may not be successful and our competitors may incorporate AI into their
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and face additional costs associated with any failure to meet service-level agreements. Any service-level failures could adversely affect our business, financial condition and results of operations.
Risks Related to our Systems and Technology
If our internal enterprise IT networks, on which we conduct internal business and interface externally, our operational networks, through which we connect to customers, vendors and partners systems and provide services, or our research and development networks, our back-end labs and cloud stacks hosted in our data centers, colocation vendors or public cloud providers, through which we research, develop and host products and services, are compromised, public perception of our products and services may be harmed, our customers may be breached and harmed, we may become subject to liability, and our business, operating results and stock price may be adversely impacted.
Our success depends on the market's confidence in our ability to provide effective network security protection. Despite our efforts and processes to prevent breaches of our internal networks, systems and websites, whether in our owned data centers, cloud providers or colocations, we are still vulnerable to computer viruses, break-ins, phishing attacks, ransomware attacks, attempts to overload our servers with denial-of-service, vulnerabilities in vendor hardware and software that we leverage, advanced persistent threats from sophisticated actors and other cyber-attacks and similar disruptions from unauthorized access to our internal networks, systems or websites, whether in our owned data centers, cloud providers or colocations. Our security measures may also be breached due to employee error, malfeasance or otherwise, which breaches may be more difficult to detect than outsider threats, and the existing programs and trainings we have in place to prevent such insider threats may not be effective or sufficient. Third parties may also attempt to fraudulently induce our employees to transfer funds or disclose information in order to gain access to our networks and confidential information. Third parties may also send our customers or others malware or malicious emails that falsely indicate that we are the source, potentially causing lost confidence in us and reputational harm. We cannot guarantee that the measures we have taken to protect our networks, systems and websites, whether in our owned data centers, cloud providers or colocations, will provide adequate security. Moreover, because we provide network security products, we may be a more attractive target for attacks by computer hackers and any security breaches and other security incidents involving us may result in more harm to our reputation and brand than companies that do not sell network security solutions. Hackers and malicious parties may be able to develop and deploy viruses, worms, ransomware and other malicious software programs that attack our products and customers, that impersonate our update servers in an effort to access customer networks and negatively impact customers, or otherwise exploit any security vulnerabilities of our products, or attempt to fraudulently induce our employees, customers or others to disclose passwords or other sensitive information or unwittingly provide access to our internal networks, systems or data. Moreover, the threat landscape continues to evolve as a result of new technologies, including artificial intelligence ("AI"), and malicious parties may use AI to help attack our solutions, systems, and our customers.
For example, from time to time, we have discovered that unauthorized parties have targeted us using sophisticated techniques, including by stealing technical data and attempting to steal private encryption keys, in an effort to both impersonate our products and threat intelligence update services and possibly attempt other attack methodologies. Using these techniques, these unauthorized parties have tried, and may in the future try, to gain access to certain of our and our customers' systems. We have also, for example, discovered that unauthorized parties have targeted vulnerabilities in our product software and infrastructure in an effort to gain entry into our customers' networks. In addition, in general threat actors use dark web forums to sell organizations' stolen credentials. If threat actors sell valid credentials used by our customers to access our services, it is possible that unauthorized third parties may use such stolen credentials to try to gain access to our services. These and other hacking efforts against us and our customers may be ongoing and may happen in the future.
Although we take numerous measures and implement multiple layers of security to protect our networks, we cannot guarantee that our security products, processes and services will secure against all threats. Further, we cannot be sure that third parties have not been, or will not in the future be, successful in improperly accessing our systems and our customers' systems, which could negatively impact us and our customers. An actual breach could significantly harm us and our customers, and an actual or perceived breach, or any other actual or perceived data security incident, threat or vulnerability, that involves our supply chains, networks, systems or websites and/or our customers' supply chains, networks, systems or websites could adversely affect the market perception of our products and services and investor confidence in our company. Any breach of our networks, systems or websites could impair our ability to operate our business, including our ability to provide FortiGuard and other security subscription and FortiCare technical support services to our end-customers, lead to interruptions or system slowdowns, cause loss of critical data or lead to the unauthorized disclosure or use of confidential, proprietary or sensitive information. We could also be subject to liability and litigation and reputational harm and our channel partners and end-customers may be harmed, lose confidence in us and decrease or cease using our products and services. Any breach of our internal networks, systems or websites could have an adverse effect on our business, operating results and stock price.
In addition, there has been a general increase in phishing attempts and spam emails as well as social engineering attempts from hackers, and many of our employees continue to work remotely which may pose additional data security risks in
63
, the event remote work environments are not as secure as office environments. Any security incident could negatively impact our reputation and results of operations.
If we do not appropriately manage any future growth, including through the expansion of our real estate facilities, or are unable to improve our systems, processes and controls, our operating results will be negatively affected.
We rely heavily on information technology to help manage critical functions such as order configuration, pricing and quoting, revenue recognition, financial forecasts, inventory and supply chain management and trade compliance reviews. In addition, we have been slow to adopt and implement certain automated functions, which could have a negative impact on our business. For example, our order processing relies on both manual data entry of customer purchase orders received through email and electronic data interchange (EDI). Due to the use of manual processes and the fact that we may receive a large amount of our orders in the last few weeks of any given quarter, an interruption in our email service or other systems could result in delayed order fulfillment and decreased billings and revenue for that quarter.
To manage any future growth effectively, we must continue to improve and expand our information technology and financial, operating, security and administrative systems and controls, and our business continuity and disaster recovery plans and processes. We must also continue to manage headcount, capital and processes in an efficient manner. We may not be able to successfully implement requisite improvements to these systems, controls and processes, such as system capacity, access, security and change management controls, in a timely or efficient manner. Our failure to improve our systems and processes, or their failure to operate in the intended manner, whether as a result of the significant growth of our business or otherwise, may result in our inability to manage the growth of our business and to accurately forecast our revenue, expenses and earnings, or to prevent certain losses. Moreover, the failure of our systems and processes could undermine our ability to provide accurate, timely and reliable reports on our financial and operating results and could impact the effectiveness of our internal control over financial reporting.
In addition, our systems, processes and controls may not prevent or detect all errors, omissions, malfeasance or fraud, such as corruption and improper "side agreements" that may impact revenue recognition or result in financial liability. Our productivity and the quality of our products and services may also be adversely affected if we do not integrate and train our new employees quickly and effectively. Any future growth would add complexity to our organization and require effective coordination throughout our organization. Failure to ensure appropriate systems, processes and controls and to manage any future growth effectively could result in increased costs and harm our reputation and results of operations.
We have expanded our office real estate holdings to meet our projected growing need for office space. These plans will require significant capital expenditure over the next several years and involve certain risks, including impairment charges and acceleration of depreciation, changes in future business strategy that may decrease the need for expansion (such as a decrease in headcount or increase in work from home) and risks related to construction. Future changes in growth or fluctuations in cash flow may also negatively impact our ability to pay for these projects or free cash flow. Additionally, inaccuracies in our projected capital expenditures could negatively impact our business, operating results and financial condition.
We may experience difficulties maintaining and expanding our internal business management systems.
The maintenance of our internal business management systems, such as our Enterprise Resource Planning ("ERP") and Customer Relationship Management ("CRM") systems, has required, and will continue to require, the investment of significant financial and human resources. In addition, we may choose to upgrade or expand the functionality of our internal systems, leading to additional costs. Deficiencies in our design or maintenance of our internal systems may adversely affect our ability to sell products and services, forecast orders, process orders, ship products, provide services and customer support, send invoices and track payments, fulfill contractual obligations, accurately maintain books and records, provide accurate, timely and reliable reports on our financial and operating results or otherwise operate our business. Additionally, if any of our internal systems does not operate as intended, the effectiveness of our internal control over financial reporting could be adversely affected or our ability to assess it adequately could be delayed. Further, we may expand the scope of our ERP and CRM systems. Our operating results may be adversely affected if these upgrades or expansions are delayed or if the systems do not function as intended or are not sufficient to meet our operating requirements.
We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results.
AI presents new risks and challenges that may affect our business. We have made, and expect to continue to make investments to integrate AI and machine learning technology into our solutions, as evidenced by our acquisition of Lacework. AI presents risks, challenges, and potentially unintended consequences that could impact our ability to effectively use of AI successfully in our business. Given the nature of AI technology, we face an evolving regulatory landscape and significant competition from other companies. Our AI efforts may not be successful and our competitors may incorporate AI into their
64
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Fortinet, Inc. 10-Q form for quarterly period ended 2024-06-30, page 63: and face additional costs associated with any failure to meet service-level agreements. Any service-level failures could adversely affect our business, financial condition and results of operations.
Risks Related to our Systems and Technology
If our internal enterprise IT networks, on which we conduct internal business and interface externally, our operational networks, through which we connect to customers, vendors and partners systems and provide services, or our research and development networks, our back-end labs and cloud stacks hosted in our data centers, colocation vendors or public cloud providers, through which we research, develop and host products and services, are compromised, public perception of our products and services may be harmed, our customers may be breached and harmed, we may become subject to liability, and our business, operating results and stock price may be adversely impacted.
Our success depends on the market's confidence in our ability to provide effective network security protection. Despite our efforts and processes to prevent breaches of our internal networks, systems and websites, whether in our owned data centers, cloud providers or colocations, we are still vulnerable to computer viruses, break-ins, phishing attacks, ransomware attacks, attempts to overload our servers with denial-of-service, vulnerabilities in vendor hardware and software that we leverage, advanced persistent threats from sophisticated actors and other cyber-attacks and similar disruptions from unauthorized access to our internal networks, systems or websites, whether in our owned data centers, cloud providers or colocations. Our security measures may also be breached due to employee error, malfeasance or otherwise, which breaches may be more difficult to detect than outsider threats, and the existing programs and trainings we have in place to prevent such insider threats may not be effective or sufficient. Third parties may also attempt to fraudulently induce our employees to transfer funds or disclose information in order to gain access to our networks and confidential information. Third parties may also send our customers or others malware or malicious emails that falsely indicate that we are the source, potentially causing lost confidence in us and reputational harm. We cannot guarantee that the measures we have taken to protect our networks, systems and websites, whether in our owned data centers, cloud providers or colocations, will provide adequate security. Moreover, because we provide network security products, we may be a more attractive target for attacks by computer hackers and any security breaches and other security incidents involving us may result in more harm to our reputation and brand than companies that do not sell network security solutions. Hackers and malicious parties may be able to develop and deploy viruses, worms, ransomware and other malicious software programs that attack our products and customers, that impersonate our update servers in an effort to access customer networks and negatively impact customers, or otherwise exploit any security vulnerabilities of our products, or attempt to fraudulently induce our employees, customers or others to disclose passwords or other sensitive information or unwittingly provide access to our internal networks, systems or data. Moreover, the threat landscape continues to evolve as a result of new technologies, including artificial intelligence ("AI"), and malicious parties may use AI to help attack our solutions, systems, and our customers.
For example, from time to time, we have discovered that unauthorized parties have targeted us using sophisticated techniques, including by stealing technical data and attempting to steal private encryption keys, in an effort to both impersonate our products and threat intelligence update services and possibly attempt other attack methodologies. Using these techniques, these unauthorized parties have tried, and may in the future try, to gain access to certain of our and our customers' systems. We have also, for example, discovered that unauthorized parties have targeted vulnerabilities in our product software and infrastructure in an effort to gain entry into our customers' networks. In addition, in general threat actors use dark web forums to sell organizations' stolen credentials. If threat actors sell valid credentials used by our customers to access our services, it is possible that unauthorized third parties may use such stolen credentials to try to gain access to our services. These and other hacking efforts against us and our customers may be ongoing and may happen in the future.
Although we take numerous measures and implement multiple layers of security to protect our networks, we cannot guarantee that our security products, processes and services will secure against all threats. Further, we cannot be sure that third parties have not been, or will not in the future be, successful in improperly accessing our systems and our customers' systems, which could negatively impact us and our customers. An actual breach could significantly harm us and our customers, and an actual or perceived breach, or any other actual or perceived data security incident, threat or vulnerability, that involves our supply chains, networks, systems or websites and/or our customers' supply chains, networks, systems or websites could adversely affect the market perception of our products and services and investor confidence in our company. Any breach of our networks, systems or websites could impair our ability to operate our business, including our ability to provide FortiGuard and other security subscription and FortiCare technical support services to our end-customers, lead to interruptions or system slowdowns, cause loss of critical data or lead to the unauthorized disclosure or use of confidential, proprietary or sensitive information. We could also be subject to liability and litigation and reputational harm and our channel partners and end-customers may be harmed, lose confidence in us and decrease or cease using our products and services. Any breach of our internal networks, systems or websites could have an adverse effect on our business, operating results and stock price.
In addition, there has been a general increase in phishing attempts and spam emails as well as social engineering attempts from hackers, and many of our employees continue to work remotely which may pose additional data security risks in
63
, Fortinet, Inc. 10-Q form for quarterly period ended 2024-06-30, page 64: the event remote work environments are not as secure as office environments. Any security incident could negatively impact our reputation and results of operations.
If we do not appropriately manage any future growth, including through the expansion of our real estate facilities, or are unable to improve our systems, processes and controls, our operating results will be negatively affected.
We rely heavily on information technology to help manage critical functions such as order configuration, pricing and quoting, revenue recognition, financial forecasts, inventory and supply chain management and trade compliance reviews. In addition, we have been slow to adopt and implement certain automated functions, which could have a negative impact on our business. For example, our order processing relies on both manual data entry of customer purchase orders received through email and electronic data interchange (EDI). Due to the use of manual processes and the fact that we may receive a large amount of our orders in the last few weeks of any given quarter, an interruption in our email service or other systems could result in delayed order fulfillment and decreased billings and revenue for that quarter.
To manage any future growth effectively, we must continue to improve and expand our information technology and financial, operating, security and administrative systems and controls, and our business continuity and disaster recovery plans and processes. We must also continue to manage headcount, capital and processes in an efficient manner. We may not be able to successfully implement requisite improvements to these systems, controls and processes, such as system capacity, access, security and change management controls, in a timely or efficient manner. Our failure to improve our systems and processes, or their failure to operate in the intended manner, whether as a result of the significant growth of our business or otherwise, may result in our inability to manage the growth of our business and to accurately forecast our revenue, expenses and earnings, or to prevent certain losses. Moreover, the failure of our systems and processes could undermine our ability to provide accurate, timely and reliable reports on our financial and operating results and could impact the effectiveness of our internal control over financial reporting.
In addition, our systems, processes and controls may not prevent or detect all errors, omissions, malfeasance or fraud, such as corruption and improper "side agreements" that may impact revenue recognition or result in financial liability. Our productivity and the quality of our products and services may also be adversely affected if we do not integrate and train our new employees quickly and effectively. Any future growth would add complexity to our organization and require effective coordination throughout our organization. Failure to ensure appropriate systems, processes and controls and to manage any future growth effectively could result in increased costs and harm our reputation and results of operations.
We have expanded our office real estate holdings to meet our projected growing need for office space. These plans will require significant capital expenditure over the next several years and involve certain risks, including impairment charges and acceleration of depreciation, changes in future business strategy that may decrease the need for expansion (such as a decrease in headcount or increase in work from home) and risks related to construction. Future changes in growth or fluctuations in cash flow may also negatively impact our ability to pay for these projects or free cash flow. Additionally, inaccuracies in our projected capital expenditures could negatively impact our business, operating results and financial condition.
We may experience difficulties maintaining and expanding our internal business management systems.
The maintenance of our internal business management systems, such as our Enterprise Resource Planning ("ERP") and Customer Relationship Management ("CRM") systems, has required, and will continue to require, the investment of significant financial and human resources. In addition, we may choose to upgrade or expand the functionality of our internal systems, leading to additional costs. Deficiencies in our design or maintenance of our internal systems may adversely affect our ability to sell products and services, forecast orders, process orders, ship products, provide services and customer support, send invoices and track payments, fulfill contractual obligations, accurately maintain books and records, provide accurate, timely and reliable reports on our financial and operating results or otherwise operate our business. Additionally, if any of our internal systems does not operate as intended, the effectiveness of our internal control over financial reporting could be adversely affected or our ability to assess it adequately could be delayed. Further, we may expand the scope of our ERP and CRM systems. Our operating results may be adversely affected if these upgrades or expansions are delayed or if the systems do not function as intended or are not sufficient to meet our operating requirements.
We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results.
AI presents new risks and challenges that may affect our business. We have made, and expect to continue to make investments to integrate AI and machine learning technology into our solutions, as evidenced by our acquisition of Lacework. AI presents risks, challenges, and potentially unintended consequences that could impact our ability to effectively use of AI successfully in our business. Given the nature of AI technology, we face an evolving regulatory landscape and significant competition from other companies. Our AI efforts may not be successful and our competitors may incorporate AI into their
64
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and face additional costs associated with any failure to meet service-level agreements. Any service-level failures could adversely affect our business, financial condition and results of operations.
Risks Related to our Systems and Technology
If our internal enterprise IT networks, on which we conduct internal business and interface externally, our operational networks, through which we connect to customers, vendors and partners systems and provide services, or our research and development networks, our back-end labs and cloud stacks hosted in our data centers, colocation vendors or public cloud providers, through which we research, develop and host products and services, are compromised, public perception of our products and services may be harmed, our customers may be breached and harmed, we may become subject to liability, and our business, operating results and stock price may be adversely impacted.
Our success depends on the market's confidence in our ability to provide effective network security protection. Despite our efforts and processes to prevent breaches of our internal networks, systems and websites, whether in our owned data centers, cloud providers or colocations, we are still vulnerable to computer viruses, break-ins, phishing attacks, ransomware attacks, attempts to overload our servers with denial-of-service, vulnerabilities in vendor hardware and software that we leverage, advanced persistent threats from sophisticated actors and other cyber-attacks and similar disruptions from unauthorized access to our internal networks, systems or websites, whether in our owned data centers, cloud providers or colocations. Our security measures may also be breached due to employee error, malfeasance or otherwise, which breaches may be more difficult to detect than outsider threats, and the existing programs and trainings we have in place to prevent such insider threats may not be effective or sufficient. Third parties may also attempt to fraudulently induce our employees to transfer funds or disclose information in order to gain access to our networks and confidential information. Third parties may also send our customers or others malware or malicious emails that falsely indicate that we are the source, potentially causing lost confidence in us and reputational harm. We cannot guarantee that the measures we have taken to protect our networks, systems and websites, whether in our owned data centers, cloud providers or colocations, will provide adequate security. Moreover, because we provide network security products, we may be a more attractive target for attacks by computer hackers and any security breaches and other security incidents involving us may result in more harm to our reputation and brand than companies that do not sell network security solutions. Hackers and malicious parties may be able to develop and deploy viruses, worms, ransomware and other malicious software programs that attack our products and customers, that impersonate our update servers in an effort to access customer networks and negatively impact customers, or otherwise exploit any security vulnerabilities of our products, or attempt to fraudulently induce our employees, customers or others to disclose passwords or other sensitive information or unwittingly provide access to our internal networks, systems or data. Moreover, the threat landscape continues to evolve as a result of new technologies, including artificial intelligence ("AI"), and malicious parties may use AI to help attack our solutions, systems, and our customers.
For example, from time to time, we have discovered that unauthorized parties have targeted us using sophisticated techniques, including by stealing technical data and attempting to steal private encryption keys, in an effort to both impersonate our products and threat intelligence update services and possibly attempt other attack methodologies. Using these techniques, these unauthorized parties have tried, and may in the future try, to gain access to certain of our and our customers' systems. We have also, for example, discovered that unauthorized parties have targeted vulnerabilities in our product software and infrastructure in an effort to gain entry into our customers' networks. In addition, in general threat actors use dark web forums to sell organizations' stolen credentials. If threat actors sell valid credentials used by our customers to access our services, it is possible that unauthorized third parties may use such stolen credentials to try to gain access to our services. These and other hacking efforts against us and our customers may be ongoing and may happen in the future.
Although we take numerous measures and implement multiple layers of security to protect our networks, we cannot guarantee that our security products, processes and services will secure against all threats. Further, we cannot be sure that third parties have not been, or will not in the future be, successful in improperly accessing our systems and our customers' systems, which could negatively impact us and our customers. An actual breach could significantly harm us and our customers, and an actual or perceived breach, or any other actual or perceived data security incident, threat or vulnerability, that involves our supply chains, networks, systems or websites and/or our customers' supply chains, networks, systems or websites could adversely affect the market perception of our products and services and investor confidence in our company. Any breach of our networks, systems or websites could impair our ability to operate our business, including our ability to provide FortiGuard and other security subscription and FortiCare technical support services to our end-customers, lead to interruptions or system slowdowns, cause loss of critical data or lead to the unauthorized disclosure or use of confidential, proprietary or sensitive information. We could also be subject to liability and litigation and reputational harm and our channel partners and end-customers may be harmed, lose confidence in us and decrease or cease using our products and services. Any breach of our internal networks, systems or websites could have an adverse effect on our business, operating results and stock price.
In addition, there has been a general increase in phishing attempts and spam emails as well as social engineering attempts from hackers, and many of our employees continue to work remotely which may pose additional data security risks in
63
, the event remote work environments are not as secure as office environments. Any security incident could negatively impact our reputation and results of operations.
If we do not appropriately manage any future growth, including through the expansion of our real estate facilities, or are unable to improve our systems, processes and controls, our operating results will be negatively affected.
We rely heavily on information technology to help manage critical functions such as order configuration, pricing and quoting, revenue recognition, financial forecasts, inventory and supply chain management and trade compliance reviews. In addition, we have been slow to adopt and implement certain automated functions, which could have a negative impact on our business. For example, our order processing relies on both manual data entry of customer purchase orders received through email and electronic data interchange (EDI). Due to the use of manual processes and the fact that we may receive a large amount of our orders in the last few weeks of any given quarter, an interruption in our email service or other systems could result in delayed order fulfillment and decreased billings and revenue for that quarter.
To manage any future growth effectively, we must continue to improve and expand our information technology and financial, operating, security and administrative systems and controls, and our business continuity and disaster recovery plans and processes. We must also continue to manage headcount, capital and processes in an efficient manner. We may not be able to successfully implement requisite improvements to these systems, controls and processes, such as system capacity, access, security and change management controls, in a timely or efficient manner. Our failure to improve our systems and processes, or their failure to operate in the intended manner, whether as a result of the significant growth of our business or otherwise, may result in our inability to manage the growth of our business and to accurately forecast our revenue, expenses and earnings, or to prevent certain losses. Moreover, the failure of our systems and processes could undermine our ability to provide accurate, timely and reliable reports on our financial and operating results and could impact the effectiveness of our internal control over financial reporting.
In addition, our systems, processes and controls may not prevent or detect all errors, omissions, malfeasance or fraud, such as corruption and improper "side agreements" that may impact revenue recognition or result in financial liability. Our productivity and the quality of our products and services may also be adversely affected if we do not integrate and train our new employees quickly and effectively. Any future growth would add complexity to our organization and require effective coordination throughout our organization. Failure to ensure appropriate systems, processes and controls and to manage any future growth effectively could result in increased costs and harm our reputation and results of operations.
We have expanded our office real estate holdings to meet our projected growing need for office space. These plans will require significant capital expenditure over the next several years and involve certain risks, including impairment charges and acceleration of depreciation, changes in future business strategy that may decrease the need for expansion (such as a decrease in headcount or increase in work from home) and risks related to construction. Future changes in growth or fluctuations in cash flow may also negatively impact our ability to pay for these projects or free cash flow. Additionally, inaccuracies in our projected capital expenditures could negatively impact our business, operating results and financial condition.
We may experience difficulties maintaining and expanding our internal business management systems.
The maintenance of our internal business management systems, such as our Enterprise Resource Planning ("ERP") and Customer Relationship Management ("CRM") systems, has required, and will continue to require, the investment of significant financial and human resources. In addition, we may choose to upgrade or expand the functionality of our internal systems, leading to additional costs. Deficiencies in our design or maintenance of our internal systems may adversely affect our ability to sell products and services, forecast orders, process orders, ship products, provide services and customer support, send invoices and track payments, fulfill contractual obligations, accurately maintain books and records, provide accurate, timely and reliable reports on our financial and operating results or otherwise operate our business. Additionally, if any of our internal systems does not operate as intended, the effectiveness of our internal control over financial reporting could be adversely affected or our ability to assess it adequately could be delayed. Further, we may expand the scope of our ERP and CRM systems. Our operating results may be adversely affected if these upgrades or expansions are delayed or if the systems do not function as intended or are not sufficient to meet our operating requirements.
We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results.
AI presents new risks and challenges that may affect our business. We have made, and expect to continue to make investments to integrate AI and machine learning technology into our solutions, as evidenced by our acquisition of Lacework. AI presents risks, challenges, and potentially unintended consequences that could impact our ability to effectively use of AI successfully in our business. Given the nature of AI technology, we face an evolving regulatory landscape and significant competition from other companies. Our AI efforts may not be successful and our competitors may incorporate AI into their
64
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q_Ri015
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What are the risks faced by P&G related to customer consolidation? How has this risk evolved over the years?
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P&G faces several risks related to customer consolidation:
1. Concentration Risk:
Dependence on Major Customers: Sales to Walmart Inc. and its affiliates accounted for approximately 16% of P&G's total sales in 2024, up from 15% in both 2023 and 2022. This significant concentration in a single customer increases the risk that any adverse changes in Walmart's purchasing behavior, negotiations, or financial health could materially impact P&G's sales and profitability.
2. Bargaining Power of Customers:
Increased Leverage: As the top ten customers accounted for 42% of P&G’s total net sales in 2024, an increase from 40% in 2023 and 39% in 2022, these large customers may have greater bargaining power. This could lead to increased pressure on pricing, terms, and conditions, which might affect P&G's margins and overall financial performance.
The risk related to customer consolidation has evolved with an increasing percentage of net sales concentrated among the top ten customers, growing from 39% in 2022 to 42% in 2024. This trend suggests an increasing reliance on fewer, larger customers, which heightens the risks associated with customer consolidation.
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Risk
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1
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0000080424-24-000083
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Item 1. Business.
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PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 1:
The Procter & Gamble Company 1
PART I
Item 1. Business.
The Procter & Gamble Company (the Company) is a world-leading multinational consumer goods company focused on providing trusted, branded products of superior quality, performance and value to improve the lives of consumers around the world - now and for generations to come. Our products are sold in about 180 countries and territories throughout the world. The Company was incorporated in Ohio in 1905, having first been established as a New Jersey corporation in 1890, and was built from a business founded in Cincinnati in 1837 by William Procter and James Gamble.
Additional information required by this item is incorporated herein by reference to Management's Discussion and Analysis (MD&A); and Notes 1 and 2 to our Consolidated Financial Statements. Unless the context indicates otherwise, the terms "Company," "P&G," "we," "our" or "us" as used herein refer to The Procter & Gamble Company (the registrant) and its subsidiaries. Throughout this Form 10-K, we incorporate by reference information from other documents filed with the Securities and Exchange Commission (SEC).
The Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and amendments thereto, are filed electronically with the SEC. The SEC maintains an internet site that contains these reports at: www.sec.gov. Reports can also be accessed and downloaded through links from our website at: www.pginvestor.com. P&G includes the website link solely as a textual reference and the information on our website is not incorporated by reference into this report. Copies of these reports are also available, without charge, by contacting EQ Shareowner Services, 1100 Centre Pointe Curve, Suite 101, Mendota, MN 55120-4100.
Financial Information about Segments
Information about our reportable segments can be found in the MD&A and Note 2 to our Consolidated Financial Statements.
Narrative Description of Business
Business Model. Our business model is focused on delivering sustainable value creation by driving balanced top- and bottom-line growth. We create, manufacture, market and distribute a diversified portfolio of daily-use products to delight consumers with irresistible superiority across five key vectors - product performance, packaging, brand communication, retail execution and value. We invest in research and development and consumer insights to invent new categories or products and innovate our existing products, ensuring they meet evolving consumer needs and preferences. We leverage marketing strategies including advertising, promotions and endorsements to drive brand awareness and loyalty among consumers. The Company utilizes various distribution channels, including retail stores, e-commerce platforms and direct-to-consumer platforms to deliver our products. Our business model relies on continued productivity improvements to fuel investments in R&D and marketing and deliver value creation. Our objective is to deliver sustainable and balanced top- and bottom-line growth while serving the needs of all stakeholders - consumers, customers, employees, society and shareowners.
Key Product Categories. Information on key product categories can be found in the MD&A and Note 2 to our Consolidated Financial Statements.
Key Customers. Our customers include mass merchandisers, e-commerce (including social commerce) channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores (including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. We also sell direct to consumers. Sales to Walmart Inc. and its affiliates represent approximately 16% of our total sales in 2024 and 15% in 2023 and 2022. No other customer represents more than 10% of our total sales. Our top ten customers accounted for 42% of our total net sales in 2024, 40% in 2023 and 39% in 2022.
Sources and Availability of Materials. Almost all of the raw and packaging materials used by the Company are purchased from third parties, some of whom are single-source suppliers. We produce certain raw materials, primarily chemicals, for further use in the manufacturing process. In addition, fuel, natural gas and derivative products are important commodities consumed in our manufacturing processes and in the transportation of input materials and finished products. The prices we pay for materials and other commodities are subject to fluctuation. When prices for these items change, we may or may not pass the change to our customers. The Company purchases a substantial variety of other raw and packaging materials, none of which are material to our business taken as a whole.
Trademarks and Patents. We own or have rights to patents and trademarks, which are used in connection with our activity in all businesses. Our patents cover a range of product features, including significant product formulation and processes used to manufacture our products. The trademarks are important to the overall marketing and branding of our products. In part, our success can be attributed to the existence and continued protection of these trademarks and patents.
Competitive Condition. The markets in which our products are sold are highly competitive. Our products compete against similar products from a broad range of companies, both large and small, both established and new, including well-known global competitors. In many of the markets and industry segments, we compete against other branded products as well as retailers' private-label brands. In this highly competitive setting, we are well positioned in the industry segments and markets in which we operate, often holding a leadership or significant market share position. Our integrated strategy and our focus on driving superiority across product, packaging, brand communication, retail execution and value are key differentiators in the marketplace.
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The Procter & Gamble Company 1
PART I
Item 1. Business.
The Procter & Gamble Company (the Company) is a world-leading multinational consumer goods company focused on providing trusted, branded products of superior quality, performance and value to improve the lives of consumers around the world - now and for generations to come. Our products are sold in about 180 countries and territories throughout the world. The Company was incorporated in Ohio in 1905, having first been established as a New Jersey corporation in 1890, and was built from a business founded in Cincinnati in 1837 by William Procter and James Gamble.
Additional information required by this item is incorporated herein by reference to Management's Discussion and Analysis (MD&A); and Notes 1 and 2 to our Consolidated Financial Statements. Unless the context indicates otherwise, the terms "Company," "P&G," "we," "our" or "us" as used herein refer to The Procter & Gamble Company (the registrant) and its subsidiaries. Throughout this Form 10-K, we incorporate by reference information from other documents filed with the Securities and Exchange Commission (SEC).
The Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and amendments thereto, are filed electronically with the SEC. The SEC maintains an internet site that contains these reports at: www.sec.gov. Reports can also be accessed and downloaded through links from our website at: www.pginvestor.com. P&G includes the website link solely as a textual reference and the information on our website is not incorporated by reference into this report. Copies of these reports are also available, without charge, by contacting EQ Shareowner Services, 1100 Centre Pointe Curve, Suite 101, Mendota, MN 55120-4100.
Financial Information about Segments
Information about our reportable segments can be found in the MD&A and Note 2 to our Consolidated Financial Statements.
Narrative Description of Business
Business Model. Our business model is focused on delivering sustainable value creation by driving balanced top- and bottom-line growth. We create, manufacture, market and distribute a diversified portfolio of daily-use products to delight consumers with irresistible superiority across five key vectors - product performance, packaging, brand communication, retail execution and value. We invest in research and development and consumer insights to invent new categories or products and innovate our existing products, ensuring they meet evolving consumer needs and preferences. We leverage marketing strategies including advertising, promotions and endorsements to drive brand awareness and loyalty among consumers. The Company utilizes various distribution channels, including retail stores, e-commerce platforms and direct-to-consumer platforms to deliver our products. Our business model relies on continued productivity improvements to fuel investments in R&D and marketing and deliver value creation. Our objective is to deliver sustainable and balanced top- and bottom-line growth while serving the needs of all stakeholders - consumers, customers, employees, society and shareowners.
Key Product Categories. Information on key product categories can be found in the MD&A and Note 2 to our Consolidated Financial Statements.
Key Customers. Our customers include mass merchandisers, e-commerce (including social commerce) channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores (including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. We also sell direct to consumers. Sales to Walmart Inc. and its affiliates represent approximately 16% of our total sales in 2024 and 15% in 2023 and 2022. No other customer represents more than 10% of our total sales. Our top ten customers accounted for 42% of our total net sales in 2024, 40% in 2023 and 39% in 2022.
Sources and Availability of Materials. Almost all of the raw and packaging materials used by the Company are purchased from third parties, some of whom are single-source suppliers. We produce certain raw materials, primarily chemicals, for further use in the manufacturing process. In addition, fuel, natural gas and derivative products are important commodities consumed in our manufacturing processes and in the transportation of input materials and finished products. The prices we pay for materials and other commodities are subject to fluctuation. When prices for these items change, we may or may not pass the change to our customers. The Company purchases a substantial variety of other raw and packaging materials, none of which are material to our business taken as a whole.
Trademarks and Patents. We own or have rights to patents and trademarks, which are used in connection with our activity in all businesses. Our patents cover a range of product features, including significant product formulation and processes used to manufacture our products. The trademarks are important to the overall marketing and branding of our products. In part, our success can be attributed to the existence and continued protection of these trademarks and patents.
Competitive Condition. The markets in which our products are sold are highly competitive. Our products compete against similar products from a broad range of companies, both large and small, both established and new, including well-known global competitors. In many of the markets and industry segments, we compete against other branded products as well as retailers' private-label brands. In this highly competitive setting, we are well positioned in the industry segments and markets in which we operate, often holding a leadership or significant market share position. Our integrated strategy and our focus on driving superiority across product, packaging, brand communication, retail execution and value are key differentiators in the marketplace.
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PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 1:
The Procter & Gamble Company 1
PART I
Item 1. Business.
The Procter & Gamble Company (the Company) is a world-leading multinational consumer goods company focused on providing trusted, branded products of superior quality, performance and value to improve the lives of consumers around the world - now and for generations to come. Our products are sold in about 180 countries and territories throughout the world. The Company was incorporated in Ohio in 1905, having first been established as a New Jersey corporation in 1890, and was built from a business founded in Cincinnati in 1837 by William Procter and James Gamble.
Additional information required by this item is incorporated herein by reference to Management's Discussion and Analysis (MD&A); and Notes 1 and 2 to our Consolidated Financial Statements. Unless the context indicates otherwise, the terms "Company," "P&G," "we," "our" or "us" as used herein refer to The Procter & Gamble Company (the registrant) and its subsidiaries. Throughout this Form 10-K, we incorporate by reference information from other documents filed with the Securities and Exchange Commission (SEC).
The Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and amendments thereto, are filed electronically with the SEC. The SEC maintains an internet site that contains these reports at: www.sec.gov. Reports can also be accessed and downloaded through links from our website at: www.pginvestor.com. P&G includes the website link solely as a textual reference and the information on our website is not incorporated by reference into this report. Copies of these reports are also available, without charge, by contacting EQ Shareowner Services, 1100 Centre Pointe Curve, Suite 101, Mendota, MN 55120-4100.
Financial Information about Segments
Information about our reportable segments can be found in the MD&A and Note 2 to our Consolidated Financial Statements.
Narrative Description of Business
Business Model. Our business model is focused on delivering sustainable value creation by driving balanced top- and bottom-line growth. We create, manufacture, market and distribute a diversified portfolio of daily-use products to delight consumers with irresistible superiority across five key vectors - product performance, packaging, brand communication, retail execution and value. We invest in research and development and consumer insights to invent new categories or products and innovate our existing products, ensuring they meet evolving consumer needs and preferences. We leverage marketing strategies including advertising, promotions and endorsements to drive brand awareness and loyalty among consumers. The Company utilizes various distribution channels, including retail stores, e-commerce platforms and direct-to-consumer platforms to deliver our products. Our business model relies on continued productivity improvements to fuel investments in R&D and marketing and deliver value creation. Our objective is to deliver sustainable and balanced top- and bottom-line growth while serving the needs of all stakeholders - consumers, customers, employees, society and shareowners.
Key Product Categories. Information on key product categories can be found in the MD&A and Note 2 to our Consolidated Financial Statements.
Key Customers. Our customers include mass merchandisers, e-commerce (including social commerce) channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores (including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. We also sell direct to consumers. Sales to Walmart Inc. and its affiliates represent approximately 16% of our total sales in 2024 and 15% in 2023 and 2022. No other customer represents more than 10% of our total sales. Our top ten customers accounted for 42% of our total net sales in 2024, 40% in 2023 and 39% in 2022.
Sources and Availability of Materials. Almost all of the raw and packaging materials used by the Company are purchased from third parties, some of whom are single-source suppliers. We produce certain raw materials, primarily chemicals, for further use in the manufacturing process. In addition, fuel, natural gas and derivative products are important commodities consumed in our manufacturing processes and in the transportation of input materials and finished products. The prices we pay for materials and other commodities are subject to fluctuation. When prices for these items change, we may or may not pass the change to our customers. The Company purchases a substantial variety of other raw and packaging materials, none of which are material to our business taken as a whole.
Trademarks and Patents. We own or have rights to patents and trademarks, which are used in connection with our activity in all businesses. Our patents cover a range of product features, including significant product formulation and processes used to manufacture our products. The trademarks are important to the overall marketing and branding of our products. In part, our success can be attributed to the existence and continued protection of these trademarks and patents.
Competitive Condition. The markets in which our products are sold are highly competitive. Our products compete against similar products from a broad range of companies, both large and small, both established and new, including well-known global competitors. In many of the markets and industry segments, we compete against other branded products as well as retailers' private-label brands. In this highly competitive setting, we are well positioned in the industry segments and markets in which we operate, often holding a leadership or significant market share position. Our integrated strategy and our focus on driving superiority across product, packaging, brand communication, retail execution and value are key differentiators in the marketplace.
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The Procter & Gamble Company 1
PART I
Item 1. Business.
The Procter & Gamble Company (the Company) is a world-leading multinational consumer goods company focused on providing trusted, branded products of superior quality, performance and value to improve the lives of consumers around the world - now and for generations to come. Our products are sold in about 180 countries and territories throughout the world. The Company was incorporated in Ohio in 1905, having first been established as a New Jersey corporation in 1890, and was built from a business founded in Cincinnati in 1837 by William Procter and James Gamble.
Additional information required by this item is incorporated herein by reference to Management's Discussion and Analysis (MD&A); and Notes 1 and 2 to our Consolidated Financial Statements. Unless the context indicates otherwise, the terms "Company," "P&G," "we," "our" or "us" as used herein refer to The Procter & Gamble Company (the registrant) and its subsidiaries. Throughout this Form 10-K, we incorporate by reference information from other documents filed with the Securities and Exchange Commission (SEC).
The Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and amendments thereto, are filed electronically with the SEC. The SEC maintains an internet site that contains these reports at: www.sec.gov. Reports can also be accessed and downloaded through links from our website at: www.pginvestor.com. P&G includes the website link solely as a textual reference and the information on our website is not incorporated by reference into this report. Copies of these reports are also available, without charge, by contacting EQ Shareowner Services, 1100 Centre Pointe Curve, Suite 101, Mendota, MN 55120-4100.
Financial Information about Segments
Information about our reportable segments can be found in the MD&A and Note 2 to our Consolidated Financial Statements.
Narrative Description of Business
Business Model. Our business model is focused on delivering sustainable value creation by driving balanced top- and bottom-line growth. We create, manufacture, market and distribute a diversified portfolio of daily-use products to delight consumers with irresistible superiority across five key vectors - product performance, packaging, brand communication, retail execution and value. We invest in research and development and consumer insights to invent new categories or products and innovate our existing products, ensuring they meet evolving consumer needs and preferences. We leverage marketing strategies including advertising, promotions and endorsements to drive brand awareness and loyalty among consumers. The Company utilizes various distribution channels, including retail stores, e-commerce platforms and direct-to-consumer platforms to deliver our products. Our business model relies on continued productivity improvements to fuel investments in R&D and marketing and deliver value creation. Our objective is to deliver sustainable and balanced top- and bottom-line growth while serving the needs of all stakeholders - consumers, customers, employees, society and shareowners.
Key Product Categories. Information on key product categories can be found in the MD&A and Note 2 to our Consolidated Financial Statements.
Key Customers. Our customers include mass merchandisers, e-commerce (including social commerce) channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores (including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. We also sell direct to consumers. Sales to Walmart Inc. and its affiliates represent approximately 16% of our total sales in 2024 and 15% in 2023 and 2022. No other customer represents more than 10% of our total sales. Our top ten customers accounted for 42% of our total net sales in 2024, 40% in 2023 and 39% in 2022.
Sources and Availability of Materials. Almost all of the raw and packaging materials used by the Company are purchased from third parties, some of whom are single-source suppliers. We produce certain raw materials, primarily chemicals, for further use in the manufacturing process. In addition, fuel, natural gas and derivative products are important commodities consumed in our manufacturing processes and in the transportation of input materials and finished products. The prices we pay for materials and other commodities are subject to fluctuation. When prices for these items change, we may or may not pass the change to our customers. The Company purchases a substantial variety of other raw and packaging materials, none of which are material to our business taken as a whole.
Trademarks and Patents. We own or have rights to patents and trademarks, which are used in connection with our activity in all businesses. Our patents cover a range of product features, including significant product formulation and processes used to manufacture our products. The trademarks are important to the overall marketing and branding of our products. In part, our success can be attributed to the existence and continued protection of these trademarks and patents.
Competitive Condition. The markets in which our products are sold are highly competitive. Our products compete against similar products from a broad range of companies, both large and small, both established and new, including well-known global competitors. In many of the markets and industry segments, we compete against other branded products as well as retailers' private-label brands. In this highly competitive setting, we are well positioned in the industry segments and markets in which we operate, often holding a leadership or significant market share position. Our integrated strategy and our focus on driving superiority across product, packaging, brand communication, retail execution and value are key differentiators in the marketplace.
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q_Ri016
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What are the impact of risks related to economic conditions and uncertainties on the operations of P&G in FY 2024?
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In fiscal year 2024, Procter & Gamble faced several risks related to economic conditions and uncertainties impacting its operations:
Foreign Exchange Risk: Fluctuations in exchange rates led to significant foreign exchange impacts, reducing net earnings by approximately $589 million. The devaluation of foreign currencies against the U.S. dollar and challenges in implementing price increases adversely affected net sales, net earnings, and cash flows.
Commodity and Supply Chain Risks: Variations in commodity and input material prices, particularly oil-derived resins and paper-based materials, influenced costs. Disruptions in manufacturing and supply chain operations, as well as inflationary pressures, contributed to increased costs, potentially impacting net sales and earnings.
Economic and Political Instability: Exposure to global economic factors, geopolitical tensions, and local instabilities, including the ongoing Russia-Ukraine war, presented risks. Despite accounting for less than 2% of consolidated net sales, these factors still contributed to operational challenges.
Government Policy Changes: Changes in legislative and regulatory policies, including tax policy and environmental regulations, posed risks to financial performance, affecting net sales, net earnings, and cash flows.
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Risk
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18, 19
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0000080424-24-000083
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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
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PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 18:
18 The Procter & Gamble Company
RECENT DEVELOPMENTS
Limited Market Portfolio Restructuring
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company announced that it expected to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 million after tax for accumulated currency translation losses previously included in Accumulated other comprehensive income/(loss). On July 1, 2024, the Company completed the divestiture of its business in Argentina. The Company expects to record a non-cash charge of approximately $750 million for accumulated currency translation losses in the first quarter of the fiscal year ending June 30, 2025. Consistent with our historical policies for ongoing restructuring-type activities, resulting charges were funded by and included within Corporate for segment reporting. Restructuring charges above the normal ongoing level of restructuring costs were reported as non-core charges. For more details on the restructuring program, refer to Note 3 to the Consolidated Financial Statements.
Intangible Asset Impairment
During the fiscal year ended June 30, 2024, the Company recorded a $1.3 billion before tax ($1.0 billion after tax) non-cash impairment charge on an indefinite-lived intangible asset acquired as part of the Company's 2005 acquisition of The Gillette Company. The impairment charge arose from a reduction in the estimated fair value of the Gillette indefinite-lived intangible asset due to a higher discount rate, weakening of several currencies relative to the U.S. dollar and the impact of the non-core restructuring program described above. This impairment charge adjusted the carrying value of the Gillette indefinite-lived intangible asset to fair value. For a more detailed discussion of the Gillette impairment, refer to Note 4 to the Consolidated Financial Statements.
SUMMARY OF 2024 RESULTS
| | | | | | | | | | | | |
|---:|:----------------------------------------------|:-------|:-------|:-----|:-------|:----------------------|:-------|:---|:---|:---|:---|
| 1 | Amounts in millions, except per share amounts | 2024 | | 2023 | | Change vs. Prior Year | | | | | |
| 2 | Net sales | $ | 84,039 | | | $ | 82,006 | | | 2 | % |
| 3 | Operating income | 18,545 | | | 18,134 | | | 2 | % | | |
| 4 | Net earnings | 14,974 | | | 14,738 | | | 2 | % | | |
| 5 | Net earnings attributable to Procter & Gamble | 14,879 | | | 14,653 | | | 2 | % | | |
| 6 | Diluted net earnings per common share | 6.02 | | | 5.90 | | | 2 | % | | |
| 7 | Core earnings per share | 6.59 | | | 5.90 | | | 12 | % | | |
| 8 | Cash flow from operating activities | 19,846 | | | 16,848 | | | 18 | % | | |
•Net sales increased 2% to $84.0 billion versus the prior year. The net sales growth was driven by mid-single-digit increases in Health Care, Fabric & Home Care and Grooming and a low single-digit increase in Beauty. Net Sales were unchanged in Baby, Feminine & Family Care. Organic sales, which exclude the impact of acquisitions and divestitures and foreign exchange, increased 4%. Organic sales increased high single digits in Grooming, mid-single digits in Fabric & Home Care and Health Care and low single digits in Beauty and Baby, Feminine & Family Care.
•Operating income increased $411 million, or 2%, to $18.5 billion due to the increase in net sales, partially offset by the non-cash impairment charge of $1.3 billion related to the Gillette intangible asset.
•Net earnings increased $236 million, or 2%, to $15.0 billion due to the increase in operating income, partially offset by a higher effective tax rate. Foreign exchange impacts reduced net earnings by approximately $589 million.
•Net earnings attributable to Procter & Gamble increased $226 million, or 2%, to $14.9 billion.
•Diluted EPS increased 2% to $6.02 due to the increase in net earnings. Core EPS, which excludes the charge for the Gillette intangible asset impairment and incremental restructuring charges, increased 12% to $6.59.
•Cash flow from operating activities was $19.8 billion.
◦ Adjusted free cash flow, which is operating cash flow less capital expenditures and certain other impacts, was $16.9 billion.
◦ Adjusted free cash flow productivity, which is the ratio of adjusted free cash flow to net earnings excluding the Gillette intangible asset impairment charge and a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria, was 105%.
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 19:
The Procter & Gamble Company 19
ECONOMIC CONDITIONS AND UNCERTAINTIES
Global Economic Conditions. Our products are sold in numerous countries worldwide, with more than half our sales generated outside the United States. Our largest international markets are Greater China, the United Kingdom, Canada, Japan and Germany and collectively comprised approximately 20% of our net sales in fiscal 2024. As a result, we are exposed to global macroeconomic factors, geopolitical tensions and government policies. We are exposed to market risks from operating in challenging environments due to economic, political and social instabilities, natural disasters, debt and credit issues, currency controls, foreign exchange and interest rate changes. These risks can negatively impact our net sales, net earnings and cash flows. For example, we are exposed to risks due to the ongoing war between Russia and Ukraine. Our Russia business accounted for less than 2% of consolidated net sales, net earnings and net assets as of June 30, 2024.
Foreign Exchange. We have significant exposure to exchange rate fluctuations, both due to translation and transaction exposures. Translation exposures arise from measuring income statements of foreign subsidiaries with functional currencies other than the U.S. dollar. Transaction exposures involve impacts from 1) input costs that are denominated in currencies other than the local reporting currency and 2) revaluation of working capital balances denominated in currencies other than the functional currency. We have experienced significant foreign exchange impacts in the past due to the weakening of certain foreign currencies versus the US dollar, which have negatively impacted net sales, net earnings and cash flows. In response to the devaluation of foreign currencies (including those deemed highly inflationary), any lags or inability (due to government restrictions) to implement price increases or the negative impacts of such actions on product consumption may lead to a decline in our net sales, net earnings and cash flows.
Commodities and Supply Chain. Our costs are subject to fluctuations due to changes in commodity and input material prices, transportation costs, inflationary impacts and productivity efforts. We have significant exposures to certain commodities and input materials, in particular certain oil-derived materials like resins and paper-based materials like pulp. Volatility in the market price of commodities and input materials directly affects our costs. Disruptions in manufacturing, supply and distribution operations can lead to increased costs. Legal or regulatory requirements and sustainability initiatives may result in increased costs. We strive to implement, achieve and sustain cost improvement plans, including supply chain optimization and general overhead and workforce optimization. Increased pricing in response to certain inflationary or cost increases may also offset portions of the cost impacts; however, such price increases may negatively impact product consumption. If we are unable to manage cost impacts through pricing actions and consistent productivity improvements, it may negatively impact our net sales, net earnings and cash flows.
Government Policies. We are exposed to changes in U.S. and foreign government legislative, regulatory or enforcement policies that can have a negative impact on net sales, net earnings and cash flows. These include tax policy changes (both U.S. and foreign), including those resulting from the current work being led by the OECD/G20 Inclusive Framework focused on "Addressing the Challenges of the Digitalization of the Economy". Government controls such as currency exchanges, pricing and import authorizations as well as government policies related to environmental and climate change matters and changes to international trade agreements can also impact our financial performance.
For additional information on risk factors that could impact our business results, please refer to Risk Factors in Part I, Item 1A of the Company's Form 10-K for the fiscal year ended June 30, 2024.
RESULTS OF OPERATIONS
The key metrics included in the discussion of our consolidated results of operations include net sales, gross margin, selling, general and administrative costs (SG&A), operating margin, other non-operating items, income taxes and net earnings. The primary factors driving year-over-year changes in net sales include overall market growth in the categories in which we compete, product initiatives, competitive activities (the level of initiatives, pricing and other activities by competitors), marketing spending, retail executions (both in-store and online) and acquisition and divestiture activity, all of which drive changes in our underlying unit volume, as well as our pricing actions (which can also impact volume), changes in product and geographic mix and foreign exchange impacts on sales outside the U.S.
For most of our categories, our cost of products sold and SG&A are variable in nature to some extent. Accordingly, our discussion of these operating costs focuses primarily on relative margins rather than the absolute year-over-year changes in total costs. The primary drivers of changes in gross margin are input costs (energy and other commodities), pricing impacts, geographic mix (for example, gross margins in North America are generally higher than the Company average for similar products), product mix (for example, the Beauty segment has higher gross margins than the Company average), foreign exchange rate fluctuations (in situations where certain input costs may be tied to a different functional currency than the underlying sales), the impacts of manufacturing savings projects and reinvestments (for example, product or package improvements) and, to a lesser extent, scale impacts (for costs that are fixed or less variable in nature). The primary components of SG&A are marketing-related costs and non-manufacturing overhead costs. Marketing-related costs are primarily variable in nature, although we may achieve some level of scale benefit over time due to overall growth and other marketing efficiencies. While overhead costs are variable to some extent, we generally experience more scale-related impacts for these costs due to our ability to leverage our organization and systems' infrastructures to support business growth. The main drivers of changes in SG&A as a percentage of net sales are overhead and marketing cost savings, reinvestments (for example, increased advertising), inflation, foreign exchange fluctuations and scale impacts.
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18 The Procter & Gamble Company
RECENT DEVELOPMENTS
Limited Market Portfolio Restructuring
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company announced that it expected to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 million after tax for accumulated currency translation losses previously included in Accumulated other comprehensive income/(loss). On July 1, 2024, the Company completed the divestiture of its business in Argentina. The Company expects to record a non-cash charge of approximately $750 million for accumulated currency translation losses in the first quarter of the fiscal year ending June 30, 2025. Consistent with our historical policies for ongoing restructuring-type activities, resulting charges were funded by and included within Corporate for segment reporting. Restructuring charges above the normal ongoing level of restructuring costs were reported as non-core charges. For more details on the restructuring program, refer to Note 3 to the Consolidated Financial Statements.
Intangible Asset Impairment
During the fiscal year ended June 30, 2024, the Company recorded a $1.3 billion before tax ($1.0 billion after tax) non-cash impairment charge on an indefinite-lived intangible asset acquired as part of the Company's 2005 acquisition of The Gillette Company. The impairment charge arose from a reduction in the estimated fair value of the Gillette indefinite-lived intangible asset due to a higher discount rate, weakening of several currencies relative to the U.S. dollar and the impact of the non-core restructuring program described above. This impairment charge adjusted the carrying value of the Gillette indefinite-lived intangible asset to fair value. For a more detailed discussion of the Gillette impairment, refer to Note 4 to the Consolidated Financial Statements.
SUMMARY OF 2024 RESULTS
| | | | | | | | | | | | |
|---:|:----------------------------------------------|:-------|:-------|:-----|:-------|:----------------------|:-------|:---|:---|:---|:---|
| 1 | Amounts in millions, except per share amounts | 2024 | | 2023 | | Change vs. Prior Year | | | | | |
| 2 | Net sales | $ | 84,039 | | | $ | 82,006 | | | 2 | % |
| 3 | Operating income | 18,545 | | | 18,134 | | | 2 | % | | |
| 4 | Net earnings | 14,974 | | | 14,738 | | | 2 | % | | |
| 5 | Net earnings attributable to Procter & Gamble | 14,879 | | | 14,653 | | | 2 | % | | |
| 6 | Diluted net earnings per common share | 6.02 | | | 5.90 | | | 2 | % | | |
| 7 | Core earnings per share | 6.59 | | | 5.90 | | | 12 | % | | |
| 8 | Cash flow from operating activities | 19,846 | | | 16,848 | | | 18 | % | | |
•Net sales increased 2% to $84.0 billion versus the prior year. The net sales growth was driven by mid-single-digit increases in Health Care, Fabric & Home Care and Grooming and a low single-digit increase in Beauty. Net Sales were unchanged in Baby, Feminine & Family Care. Organic sales, which exclude the impact of acquisitions and divestitures and foreign exchange, increased 4%. Organic sales increased high single digits in Grooming, mid-single digits in Fabric & Home Care and Health Care and low single digits in Beauty and Baby, Feminine & Family Care.
•Operating income increased $411 million, or 2%, to $18.5 billion due to the increase in net sales, partially offset by the non-cash impairment charge of $1.3 billion related to the Gillette intangible asset.
•Net earnings increased $236 million, or 2%, to $15.0 billion due to the increase in operating income, partially offset by a higher effective tax rate. Foreign exchange impacts reduced net earnings by approximately $589 million.
•Net earnings attributable to Procter & Gamble increased $226 million, or 2%, to $14.9 billion.
•Diluted EPS increased 2% to $6.02 due to the increase in net earnings. Core EPS, which excludes the charge for the Gillette intangible asset impairment and incremental restructuring charges, increased 12% to $6.59.
•Cash flow from operating activities was $19.8 billion.
◦ Adjusted free cash flow, which is operating cash flow less capital expenditures and certain other impacts, was $16.9 billion.
◦ Adjusted free cash flow productivity, which is the ratio of adjusted free cash flow to net earnings excluding the Gillette intangible asset impairment charge and a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria, was 105%.
,
The Procter & Gamble Company 19
ECONOMIC CONDITIONS AND UNCERTAINTIES
Global Economic Conditions. Our products are sold in numerous countries worldwide, with more than half our sales generated outside the United States. Our largest international markets are Greater China, the United Kingdom, Canada, Japan and Germany and collectively comprised approximately 20% of our net sales in fiscal 2024. As a result, we are exposed to global macroeconomic factors, geopolitical tensions and government policies. We are exposed to market risks from operating in challenging environments due to economic, political and social instabilities, natural disasters, debt and credit issues, currency controls, foreign exchange and interest rate changes. These risks can negatively impact our net sales, net earnings and cash flows. For example, we are exposed to risks due to the ongoing war between Russia and Ukraine. Our Russia business accounted for less than 2% of consolidated net sales, net earnings and net assets as of June 30, 2024.
Foreign Exchange. We have significant exposure to exchange rate fluctuations, both due to translation and transaction exposures. Translation exposures arise from measuring income statements of foreign subsidiaries with functional currencies other than the U.S. dollar. Transaction exposures involve impacts from 1) input costs that are denominated in currencies other than the local reporting currency and 2) revaluation of working capital balances denominated in currencies other than the functional currency. We have experienced significant foreign exchange impacts in the past due to the weakening of certain foreign currencies versus the US dollar, which have negatively impacted net sales, net earnings and cash flows. In response to the devaluation of foreign currencies (including those deemed highly inflationary), any lags or inability (due to government restrictions) to implement price increases or the negative impacts of such actions on product consumption may lead to a decline in our net sales, net earnings and cash flows.
Commodities and Supply Chain. Our costs are subject to fluctuations due to changes in commodity and input material prices, transportation costs, inflationary impacts and productivity efforts. We have significant exposures to certain commodities and input materials, in particular certain oil-derived materials like resins and paper-based materials like pulp. Volatility in the market price of commodities and input materials directly affects our costs. Disruptions in manufacturing, supply and distribution operations can lead to increased costs. Legal or regulatory requirements and sustainability initiatives may result in increased costs. We strive to implement, achieve and sustain cost improvement plans, including supply chain optimization and general overhead and workforce optimization. Increased pricing in response to certain inflationary or cost increases may also offset portions of the cost impacts; however, such price increases may negatively impact product consumption. If we are unable to manage cost impacts through pricing actions and consistent productivity improvements, it may negatively impact our net sales, net earnings and cash flows.
Government Policies. We are exposed to changes in U.S. and foreign government legislative, regulatory or enforcement policies that can have a negative impact on net sales, net earnings and cash flows. These include tax policy changes (both U.S. and foreign), including those resulting from the current work being led by the OECD/G20 Inclusive Framework focused on "Addressing the Challenges of the Digitalization of the Economy". Government controls such as currency exchanges, pricing and import authorizations as well as government policies related to environmental and climate change matters and changes to international trade agreements can also impact our financial performance.
For additional information on risk factors that could impact our business results, please refer to Risk Factors in Part I, Item 1A of the Company's Form 10-K for the fiscal year ended June 30, 2024.
RESULTS OF OPERATIONS
The key metrics included in the discussion of our consolidated results of operations include net sales, gross margin, selling, general and administrative costs (SG&A), operating margin, other non-operating items, income taxes and net earnings. The primary factors driving year-over-year changes in net sales include overall market growth in the categories in which we compete, product initiatives, competitive activities (the level of initiatives, pricing and other activities by competitors), marketing spending, retail executions (both in-store and online) and acquisition and divestiture activity, all of which drive changes in our underlying unit volume, as well as our pricing actions (which can also impact volume), changes in product and geographic mix and foreign exchange impacts on sales outside the U.S.
For most of our categories, our cost of products sold and SG&A are variable in nature to some extent. Accordingly, our discussion of these operating costs focuses primarily on relative margins rather than the absolute year-over-year changes in total costs. The primary drivers of changes in gross margin are input costs (energy and other commodities), pricing impacts, geographic mix (for example, gross margins in North America are generally higher than the Company average for similar products), product mix (for example, the Beauty segment has higher gross margins than the Company average), foreign exchange rate fluctuations (in situations where certain input costs may be tied to a different functional currency than the underlying sales), the impacts of manufacturing savings projects and reinvestments (for example, product or package improvements) and, to a lesser extent, scale impacts (for costs that are fixed or less variable in nature). The primary components of SG&A are marketing-related costs and non-manufacturing overhead costs. Marketing-related costs are primarily variable in nature, although we may achieve some level of scale benefit over time due to overall growth and other marketing efficiencies. While overhead costs are variable to some extent, we generally experience more scale-related impacts for these costs due to our ability to leverage our organization and systems' infrastructures to support business growth. The main drivers of changes in SG&A as a percentage of net sales are overhead and marketing cost savings, reinvestments (for example, increased advertising), inflation, foreign exchange fluctuations and scale impacts.
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PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 18:
18 The Procter & Gamble Company
RECENT DEVELOPMENTS
Limited Market Portfolio Restructuring
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company announced that it expected to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 million after tax for accumulated currency translation losses previously included in Accumulated other comprehensive income/(loss). On July 1, 2024, the Company completed the divestiture of its business in Argentina. The Company expects to record a non-cash charge of approximately $750 million for accumulated currency translation losses in the first quarter of the fiscal year ending June 30, 2025. Consistent with our historical policies for ongoing restructuring-type activities, resulting charges were funded by and included within Corporate for segment reporting. Restructuring charges above the normal ongoing level of restructuring costs were reported as non-core charges. For more details on the restructuring program, refer to Note 3 to the Consolidated Financial Statements.
Intangible Asset Impairment
During the fiscal year ended June 30, 2024, the Company recorded a $1.3 billion before tax ($1.0 billion after tax) non-cash impairment charge on an indefinite-lived intangible asset acquired as part of the Company's 2005 acquisition of The Gillette Company. The impairment charge arose from a reduction in the estimated fair value of the Gillette indefinite-lived intangible asset due to a higher discount rate, weakening of several currencies relative to the U.S. dollar and the impact of the non-core restructuring program described above. This impairment charge adjusted the carrying value of the Gillette indefinite-lived intangible asset to fair value. For a more detailed discussion of the Gillette impairment, refer to Note 4 to the Consolidated Financial Statements.
SUMMARY OF 2024 RESULTS
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Amounts in millions, except per share amounts</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">Change vs. Prior Year</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>84,039 </td><td></td><td colspan="3"></td><td>$</td><td>82,006 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Operating income</td><td colspan="2">18,545 </td><td></td><td colspan="3"></td><td colspan="2">18,134 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Net earnings</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">14,738 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Net earnings attributable to Procter & Gamble</td><td colspan="2">14,879 </td><td></td><td colspan="3"></td><td colspan="2">14,653 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Diluted net earnings per common share</td><td colspan="2">6.02 </td><td></td><td colspan="3"></td><td colspan="2">5.90 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Core earnings per share</td><td colspan="2">6.59 </td><td></td><td colspan="3"></td><td colspan="2">5.90 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td>%</td></tr><tr><td colspan="3">Cash flow from operating activities</td><td colspan="2">19,846 </td><td></td><td colspan="3"></td><td colspan="2">16,848 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td>%</td></tr></table>
•Net sales increased 2% to $84.0 billion versus the prior year. The net sales growth was driven by mid-single-digit increases in Health Care, Fabric & Home Care and Grooming and a low single-digit increase in Beauty. Net Sales were unchanged in Baby, Feminine & Family Care. Organic sales, which exclude the impact of acquisitions and divestitures and foreign exchange, increased 4%. Organic sales increased high single digits in Grooming, mid-single digits in Fabric & Home Care and Health Care and low single digits in Beauty and Baby, Feminine & Family Care.
•Operating income increased $411 million, or 2%, to $18.5 billion due to the increase in net sales, partially offset by the non-cash impairment charge of $1.3 billion related to the Gillette intangible asset.
•Net earnings increased $236 million, or 2%, to $15.0 billion due to the increase in operating income, partially offset by a higher effective tax rate. Foreign exchange impacts reduced net earnings by approximately $589 million.
•Net earnings attributable to Procter & Gamble increased $226 million, or 2%, to $14.9 billion.
•Diluted EPS increased 2% to $6.02 due to the increase in net earnings. Core EPS, which excludes the charge for the Gillette intangible asset impairment and incremental restructuring charges, increased 12% to $6.59.
•Cash flow from operating activities was $19.8 billion.
◦ Adjusted free cash flow, which is operating cash flow less capital expenditures and certain other impacts, was $16.9 billion.
◦ Adjusted free cash flow productivity, which is the ratio of adjusted free cash flow to net earnings excluding the Gillette intangible asset impairment charge and a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria, was 105%.
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2024-06-30, page 19:
The Procter & Gamble Company 19
ECONOMIC CONDITIONS AND UNCERTAINTIES
Global Economic Conditions. Our products are sold in numerous countries worldwide, with more than half our sales generated outside the United States. Our largest international markets are Greater China, the United Kingdom, Canada, Japan and Germany and collectively comprised approximately 20% of our net sales in fiscal 2024. As a result, we are exposed to global macroeconomic factors, geopolitical tensions and government policies. We are exposed to market risks from operating in challenging environments due to economic, political and social instabilities, natural disasters, debt and credit issues, currency controls, foreign exchange and interest rate changes. These risks can negatively impact our net sales, net earnings and cash flows. For example, we are exposed to risks due to the ongoing war between Russia and Ukraine. Our Russia business accounted for less than 2% of consolidated net sales, net earnings and net assets as of June 30, 2024.
Foreign Exchange. We have significant exposure to exchange rate fluctuations, both due to translation and transaction exposures. Translation exposures arise from measuring income statements of foreign subsidiaries with functional currencies other than the U.S. dollar. Transaction exposures involve impacts from 1) input costs that are denominated in currencies other than the local reporting currency and 2) revaluation of working capital balances denominated in currencies other than the functional currency. We have experienced significant foreign exchange impacts in the past due to the weakening of certain foreign currencies versus the US dollar, which have negatively impacted net sales, net earnings and cash flows. In response to the devaluation of foreign currencies (including those deemed highly inflationary), any lags or inability (due to government restrictions) to implement price increases or the negative impacts of such actions on product consumption may lead to a decline in our net sales, net earnings and cash flows.
Commodities and Supply Chain. Our costs are subject to fluctuations due to changes in commodity and input material prices, transportation costs, inflationary impacts and productivity efforts. We have significant exposures to certain commodities and input materials, in particular certain oil-derived materials like resins and paper-based materials like pulp. Volatility in the market price of commodities and input materials directly affects our costs. Disruptions in manufacturing, supply and distribution operations can lead to increased costs. Legal or regulatory requirements and sustainability initiatives may result in increased costs. We strive to implement, achieve and sustain cost improvement plans, including supply chain optimization and general overhead and workforce optimization. Increased pricing in response to certain inflationary or cost increases may also offset portions of the cost impacts; however, such price increases may negatively impact product consumption. If we are unable to manage cost impacts through pricing actions and consistent productivity improvements, it may negatively impact our net sales, net earnings and cash flows.
Government Policies. We are exposed to changes in U.S. and foreign government legislative, regulatory or enforcement policies that can have a negative impact on net sales, net earnings and cash flows. These include tax policy changes (both U.S. and foreign), including those resulting from the current work being led by the OECD/G20 Inclusive Framework focused on "Addressing the Challenges of the Digitalization of the Economy". Government controls such as currency exchanges, pricing and import authorizations as well as government policies related to environmental and climate change matters and changes to international trade agreements can also impact our financial performance.
For additional information on risk factors that could impact our business results, please refer to Risk Factors in Part I, Item 1A of the Company's Form 10-K for the fiscal year ended June 30, 2024.
RESULTS OF OPERATIONS
The key metrics included in the discussion of our consolidated results of operations include net sales, gross margin, selling, general and administrative costs (SG&A), operating margin, other non-operating items, income taxes and net earnings. The primary factors driving year-over-year changes in net sales include overall market growth in the categories in which we compete, product initiatives, competitive activities (the level of initiatives, pricing and other activities by competitors), marketing spending, retail executions (both in-store and online) and acquisition and divestiture activity, all of which drive changes in our underlying unit volume, as well as our pricing actions (which can also impact volume), changes in product and geographic mix and foreign exchange impacts on sales outside the U.S.
For most of our categories, our cost of products sold and SG&A are variable in nature to some extent. Accordingly, our discussion of these operating costs focuses primarily on relative margins rather than the absolute year-over-year changes in total costs. The primary drivers of changes in gross margin are input costs (energy and other commodities), pricing impacts, geographic mix (for example, gross margins in North America are generally higher than the Company average for similar products), product mix (for example, the Beauty segment has higher gross margins than the Company average), foreign exchange rate fluctuations (in situations where certain input costs may be tied to a different functional currency than the underlying sales), the impacts of manufacturing savings projects and reinvestments (for example, product or package improvements) and, to a lesser extent, scale impacts (for costs that are fixed or less variable in nature). The primary components of SG&A are marketing-related costs and non-manufacturing overhead costs. Marketing-related costs are primarily variable in nature, although we may achieve some level of scale benefit over time due to overall growth and other marketing efficiencies. While overhead costs are variable to some extent, we generally experience more scale-related impacts for these costs due to our ability to leverage our organization and systems' infrastructures to support business growth. The main drivers of changes in SG&A as a percentage of net sales are overhead and marketing cost savings, reinvestments (for example, increased advertising), inflation, foreign exchange fluctuations and scale impacts.
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18 The Procter & Gamble Company
RECENT DEVELOPMENTS
Limited Market Portfolio Restructuring
In December 2023, the Company announced a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. In connection with this announcement, the Company announced that it expected to record incremental restructuring charges of $1.0 to $1.5 billion after tax, consisting primarily of foreign currency translation losses to be recognized as non-cash charges upon the substantial liquidation of operations in the affected markets.
As of June 30, 2024, the Company has substantially liquidated its operations in certain Enterprise Markets, including Nigeria, and recorded a non-cash charge of $216 million after tax for accumulated currency translation losses previously included in Accumulated other comprehensive income/(loss). On July 1, 2024, the Company completed the divestiture of its business in Argentina. The Company expects to record a non-cash charge of approximately $750 million for accumulated currency translation losses in the first quarter of the fiscal year ending June 30, 2025. Consistent with our historical policies for ongoing restructuring-type activities, resulting charges were funded by and included within Corporate for segment reporting. Restructuring charges above the normal ongoing level of restructuring costs were reported as non-core charges. For more details on the restructuring program, refer to Note 3 to the Consolidated Financial Statements.
Intangible Asset Impairment
During the fiscal year ended June 30, 2024, the Company recorded a $1.3 billion before tax ($1.0 billion after tax) non-cash impairment charge on an indefinite-lived intangible asset acquired as part of the Company's 2005 acquisition of The Gillette Company. The impairment charge arose from a reduction in the estimated fair value of the Gillette indefinite-lived intangible asset due to a higher discount rate, weakening of several currencies relative to the U.S. dollar and the impact of the non-core restructuring program described above. This impairment charge adjusted the carrying value of the Gillette indefinite-lived intangible asset to fair value. For a more detailed discussion of the Gillette impairment, refer to Note 4 to the Consolidated Financial Statements.
SUMMARY OF 2024 RESULTS
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Amounts in millions, except per share amounts</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">Change vs. Prior Year</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>84,039 </td><td></td><td colspan="3"></td><td>$</td><td>82,006 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Operating income</td><td colspan="2">18,545 </td><td></td><td colspan="3"></td><td colspan="2">18,134 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Net earnings</td><td colspan="2">14,974 </td><td></td><td colspan="3"></td><td colspan="2">14,738 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Net earnings attributable to Procter & Gamble</td><td colspan="2">14,879 </td><td></td><td colspan="3"></td><td colspan="2">14,653 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Diluted net earnings per common share</td><td colspan="2">6.02 </td><td></td><td colspan="3"></td><td colspan="2">5.90 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td>%</td></tr><tr><td colspan="3">Core earnings per share</td><td colspan="2">6.59 </td><td></td><td colspan="3"></td><td colspan="2">5.90 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td>%</td></tr><tr><td colspan="3">Cash flow from operating activities</td><td colspan="2">19,846 </td><td></td><td colspan="3"></td><td colspan="2">16,848 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td>%</td></tr></table>
•Net sales increased 2% to $84.0 billion versus the prior year. The net sales growth was driven by mid-single-digit increases in Health Care, Fabric & Home Care and Grooming and a low single-digit increase in Beauty. Net Sales were unchanged in Baby, Feminine & Family Care. Organic sales, which exclude the impact of acquisitions and divestitures and foreign exchange, increased 4%. Organic sales increased high single digits in Grooming, mid-single digits in Fabric & Home Care and Health Care and low single digits in Beauty and Baby, Feminine & Family Care.
•Operating income increased $411 million, or 2%, to $18.5 billion due to the increase in net sales, partially offset by the non-cash impairment charge of $1.3 billion related to the Gillette intangible asset.
•Net earnings increased $236 million, or 2%, to $15.0 billion due to the increase in operating income, partially offset by a higher effective tax rate. Foreign exchange impacts reduced net earnings by approximately $589 million.
•Net earnings attributable to Procter & Gamble increased $226 million, or 2%, to $14.9 billion.
•Diluted EPS increased 2% to $6.02 due to the increase in net earnings. Core EPS, which excludes the charge for the Gillette intangible asset impairment and incremental restructuring charges, increased 12% to $6.59.
•Cash flow from operating activities was $19.8 billion.
◦ Adjusted free cash flow, which is operating cash flow less capital expenditures and certain other impacts, was $16.9 billion.
◦ Adjusted free cash flow productivity, which is the ratio of adjusted free cash flow to net earnings excluding the Gillette intangible asset impairment charge and a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in certain Enterprise Markets, including Nigeria, was 105%.
,
The Procter & Gamble Company 19
ECONOMIC CONDITIONS AND UNCERTAINTIES
Global Economic Conditions. Our products are sold in numerous countries worldwide, with more than half our sales generated outside the United States. Our largest international markets are Greater China, the United Kingdom, Canada, Japan and Germany and collectively comprised approximately 20% of our net sales in fiscal 2024. As a result, we are exposed to global macroeconomic factors, geopolitical tensions and government policies. We are exposed to market risks from operating in challenging environments due to economic, political and social instabilities, natural disasters, debt and credit issues, currency controls, foreign exchange and interest rate changes. These risks can negatively impact our net sales, net earnings and cash flows. For example, we are exposed to risks due to the ongoing war between Russia and Ukraine. Our Russia business accounted for less than 2% of consolidated net sales, net earnings and net assets as of June 30, 2024.
Foreign Exchange. We have significant exposure to exchange rate fluctuations, both due to translation and transaction exposures. Translation exposures arise from measuring income statements of foreign subsidiaries with functional currencies other than the U.S. dollar. Transaction exposures involve impacts from 1) input costs that are denominated in currencies other than the local reporting currency and 2) revaluation of working capital balances denominated in currencies other than the functional currency. We have experienced significant foreign exchange impacts in the past due to the weakening of certain foreign currencies versus the US dollar, which have negatively impacted net sales, net earnings and cash flows. In response to the devaluation of foreign currencies (including those deemed highly inflationary), any lags or inability (due to government restrictions) to implement price increases or the negative impacts of such actions on product consumption may lead to a decline in our net sales, net earnings and cash flows.
Commodities and Supply Chain. Our costs are subject to fluctuations due to changes in commodity and input material prices, transportation costs, inflationary impacts and productivity efforts. We have significant exposures to certain commodities and input materials, in particular certain oil-derived materials like resins and paper-based materials like pulp. Volatility in the market price of commodities and input materials directly affects our costs. Disruptions in manufacturing, supply and distribution operations can lead to increased costs. Legal or regulatory requirements and sustainability initiatives may result in increased costs. We strive to implement, achieve and sustain cost improvement plans, including supply chain optimization and general overhead and workforce optimization. Increased pricing in response to certain inflationary or cost increases may also offset portions of the cost impacts; however, such price increases may negatively impact product consumption. If we are unable to manage cost impacts through pricing actions and consistent productivity improvements, it may negatively impact our net sales, net earnings and cash flows.
Government Policies. We are exposed to changes in U.S. and foreign government legislative, regulatory or enforcement policies that can have a negative impact on net sales, net earnings and cash flows. These include tax policy changes (both U.S. and foreign), including those resulting from the current work being led by the OECD/G20 Inclusive Framework focused on "Addressing the Challenges of the Digitalization of the Economy". Government controls such as currency exchanges, pricing and import authorizations as well as government policies related to environmental and climate change matters and changes to international trade agreements can also impact our financial performance.
For additional information on risk factors that could impact our business results, please refer to Risk Factors in Part I, Item 1A of the Company's Form 10-K for the fiscal year ended June 30, 2024.
RESULTS OF OPERATIONS
The key metrics included in the discussion of our consolidated results of operations include net sales, gross margin, selling, general and administrative costs (SG&A), operating margin, other non-operating items, income taxes and net earnings. The primary factors driving year-over-year changes in net sales include overall market growth in the categories in which we compete, product initiatives, competitive activities (the level of initiatives, pricing and other activities by competitors), marketing spending, retail executions (both in-store and online) and acquisition and divestiture activity, all of which drive changes in our underlying unit volume, as well as our pricing actions (which can also impact volume), changes in product and geographic mix and foreign exchange impacts on sales outside the U.S.
For most of our categories, our cost of products sold and SG&A are variable in nature to some extent. Accordingly, our discussion of these operating costs focuses primarily on relative margins rather than the absolute year-over-year changes in total costs. The primary drivers of changes in gross margin are input costs (energy and other commodities), pricing impacts, geographic mix (for example, gross margins in North America are generally higher than the Company average for similar products), product mix (for example, the Beauty segment has higher gross margins than the Company average), foreign exchange rate fluctuations (in situations where certain input costs may be tied to a different functional currency than the underlying sales), the impacts of manufacturing savings projects and reinvestments (for example, product or package improvements) and, to a lesser extent, scale impacts (for costs that are fixed or less variable in nature). The primary components of SG&A are marketing-related costs and non-manufacturing overhead costs. Marketing-related costs are primarily variable in nature, although we may achieve some level of scale benefit over time due to overall growth and other marketing efficiencies. While overhead costs are variable to some extent, we generally experience more scale-related impacts for these costs due to our ability to leverage our organization and systems' infrastructures to support business growth. The main drivers of changes in SG&A as a percentage of net sales are overhead and marketing cost savings, reinvestments (for example, increased advertising), inflation, foreign exchange fluctuations and scale impacts.
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q_Ri017
|
What is the potential impact of cybersecurity risks on JPMorgan Chase’s financial health?
|
Cybersecurity risks pose a significant threat to JPMorgan Chase’s financial health. The potential impacts include financial losses due to fraud, the cost of responding to security breaches, and potential regulatory fines for failing to protect customer data.
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Risk
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23
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0000019617-24-000225
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Item 1A. Risk Factors.
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JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 23: In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
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| 1 | 23 |
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In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
| | |
|---:|---:|
| 1 | 23 |
|
JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 23: In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">23</td></tr></table>
|
In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">23</td></tr></table>
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q_Ri018
|
What strategies does the company employ to mitigate operational risks?
|
The company employs several strategies to mitigate operational risks, including robust business continuity planning, regular maintenance of critical infrastructure, employee training programs, and investment in technology.
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Risk
|
9, 20, 21, 22, 23, 24
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0000019617-24-000225
|
Item 1A. Risk Factors.
|
JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
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, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 20:
Part I
A reduction in JPMorgan Chase's credit ratings could curtail JPMorgan Chase's business activities and reduce its profitability in a number of ways, including:
•reducing its access to capital markets
•materially increasing its cost of issuing and servicing securities
•triggering additional collateral or funding requirements, and
•decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorgan Chase.
Any rating reduction could also increase the credit spreads charged by the market for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.
Capital
Maintaining the required level and composition of capital may impact JPMorgan Chase's ability to support business activities, meet evolving regulatory requirements and distribute capital to shareholders.
JPMorgan Chase is subject to various regulatory capital requirements, including leverage- and risk-based capital requirements. In addition, as a Global Systemically Important Bank ("GSIB"), JPMorgan Chase is required to hold additional capital buffers, including a GSIB surcharge, a Stress Capital Buffer ("SCB"), and a countercyclical buffer, each of which is reassessed at least annually. The amount of capital that JPMorgan Chase is required to hold in order to satisfy these leverage- and risk-based requirements could increase at any given time due to factors such as:
•actions by banking regulators, including changes in laws, rules, and regulations
•changes in the composition of JPMorgan Chase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and
•increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review, which could increase JPMorgan Chase's SCB.
Any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorgan Chase's shareholders, such as:
•reducing the amount of common stock that JPMorgan Chase is permitted to repurchase
•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorgan Chase's capital management strategy
•constraining the amount of dividends that may be paid on common stock, or
•curtailing JPMorgan Chase's business activities or operations.
Banking regulators have released a proposal to amend the Basel III risk-based capital framework which could significantly revise the risk-based capital requirements for banks with assets of $100 billion or more, including JPMorgan Chase. Uncertainty remains as to the manner in which these requirements will ultimately apply to JPMorgan Chase, however it is possible that these requirements could impact JPMorgan Chase's decisions concerning the business activities in which it will engage and its levels of capital distributions to its shareholders.
Operational
JPMorgan Chase's businesses are dependent on the effectiveness of internal and external operational systems.
JPMorgan Chase's businesses rely on the ability of JPMorgan Chase's financial, accounting, transaction execution, data processing and other operational systems to process, record, monitor and report a large number of transactions on a continuous basis, and to do so accurately, quickly and securely. In addition to proper design, installation, maintenance and training, the effective functioning of JPMorgan Chase's operational systems depends on:
•the quality of the information contained in those systems, as inaccurate, outdated, incomplete or corrupted data can significantly compromise the functionality or reliability of a particular system and other systems to which it transmits or from which it receives information, and
•JPMorgan Chase's ability to continue to maintain and upgrade its systems on a regular basis in line with technological advancements and evolving security requirements, carefully manage any changes introduced to its systems to maintain security and operational continuity, and adhere to all applicable legal and regulatory requirements, particularly in regions where JPMorgan Chase may face a heightened risk of malicious activity.
JPMorgan Chase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including degraded performance of data processing systems, data quality issues, disruptions of network connectivity and malfunctioning software, as well as disruptions in its ability to access and use the operational systems of third parties. These incidents have resulted in various negative effects for customers, including the inability to access account information or to make transactions through ATM, internet or mobile channels, the exfiltration of customer personal data, the recording of duplicative transactions and extended delays for customers requiring services from call
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, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 21: centers. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.
JPMorgan Chase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorgan Chase and its clients, customers and counterparties, including:
•JPMorgan Chase's ability to effectively maintain and upgrade systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions continue to increase
•attempts by third parties to defraud JPMorgan Chase or its clients and customers are increasing, evolving and becoming more complex, and during periods of market disruption or economic uncertainty, these attempts can be expected to increase in volume
•errors made by JPMorgan Chase or another market participant, whether inadvertent or malicious, could cause widespread system disruption
•failure to detect weaknesses or shortcomings in operational systems in a timely manner
•isolated or seemingly insignificant errors in operational systems could compound, or migrate to other systems over time, to become larger issues
•disruptions in operational systems or in the ability of systems to communicate with each other could be caused by failures in synchronization or encryption software, or degraded performance of microprocessors, and
•attempts by third parties to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.
JPMorgan Chase also depends on its ability to access and use the operational systems of third parties, including its custodians, vendors (such as those that provide data and cloud computing services, and security and technology services) and other market participants (such as clearing and payment systems, CCPs and securities exchanges), and external operational systems with which JPMorgan is connected, whether directly or indirectly, can be sources of operational risk to JPMorgan Chase. JPMorgan Chase may be exposed not only to a systems failure or cyber attack that may be experienced by a vendor or market infrastructure with which JPMorgan Chase is directly connected, but also to a systems breakdown or cyber attack involving another party to which such a vendor or infrastructure is connected. Similarly, retailers, payment systems and processors, data aggregators and other external parties with which JPMorgan Chase's customers do business can increase JPMorgan Chase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorgan Chase's security and control systems, including through the use of the internet,
cloud computing services, and personal smart phones and other mobile devices or services.
If an external party obtains access to customer account data on JPMorgan Chase's systems, whether authorized or unauthorized, and that party misappropriates that data, this could result in negative outcomes for JPMorgan Chase and its clients and customers, including a heightened risk of fraudulent transactions using JPMorgan Chase's systems, losses from fraudulent transactions and reputational harm arising from the perception that JPMorgan Chase's systems may not be secure.
As JPMorgan Chase's interconnectivity with clients, customers and other external parties continues to expand, JPMorgan Chase increasingly faces the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorgan Chase's clients or customers, or systems breakdowns or failures, security breaches or human error or misconduct affecting other external parties, may require JPMorgan Chase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of customers to their accounts. These actions can increase JPMorgan Chase's operational costs and potentially diminish customer satisfaction and confidence in JPMorgan Chase.
Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity, including due to a cyber attack, may cause industry-wide operational disruptions that could materially affect JPMorgan Chase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party could be exacerbated to the extent that the services provided by that system are used by a significant number or proportion of market participants.
The ineffectiveness, failure or other disruption of operational systems upon which JPMorgan Chase depends, including due to a systems malfunction, cyber incident or other systems failure, could result in unfavorable ripple effects in the financial markets and for JPMorgan Chase and its clients and customers, including:
•delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers
•impairment of JPMorgan Chase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement
•the possibility that funds transfers, capital markets trades or other transactions are executed erroneously
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, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 22:
Part I
•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers
•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption
•limitations on JPMorgan Chase's ability to collect data needed for its business and operations
•loss of confidence in the ability of JPMorgan Chase, or financial institutions generally, to protect against and withstand operational disruptions
•dissatisfaction among JPMorgan Chase's clients or customers
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
If JPMorgan Chase's operational systems, or those of acquired businesses or of external parties on which JPMorgan Chase's businesses depend, are unable to meet the requirements of JPMorgan Chase's businesses and operations or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorgan Chase could be materially and adversely affected.
A successful cyber attack affecting JPMorgan Chase could cause significant harm to JPMorgan Chase and its clients and customers.
JPMorgan Chase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets on a daily basis from various actors, including groups acting on behalf of hostile countries, cyber-criminals, "hacktivists" (i.e., individuals or groups that use technology to promote a political agenda or social change) and others. These cyber attacks can take many forms, including attempts to introduce computer viruses or malicious code, which are commonly referred to as "malware," into JPMorgan Chase's systems. These attacks are often designed to:
•obtain unauthorized access to confidential information belonging to JPMorgan Chase or its clients, customers, counterparties or employees
•manipulate data
•destroy data or systems with the aim of rendering services unavailable
•disrupt, sabotage or degrade service on JPMorgan Chase's systems
•steal money, or
•extort money through the use of so-called "ransomware."
JPMorgan Chase also experiences:
•distributed denial-of-service attacks intended to disrupt JPMorgan Chase's websites, including those that provide online banking and other services,
•a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and
•a high volume of disruptions to internet-based services used by JPMorgan Chase that are provided by third parties.
JPMorgan Chase has experienced security breaches due to cyber attacks in the past, and it is inevitable that additional breaches will occur in the future. Any such breach could result in serious and harmful consequences for JPMorgan Chase or its clients and customers.
A principal reason that JPMorgan Chase cannot provide absolute security against cyber attacks is that it may not always be possible to anticipate, detect or recognize threats to JPMorgan Chase's systems, or to implement effective preventive measures against all breaches because:
•the techniques used in cyber attacks evolve frequently and are increasingly sophisticated, and therefore may not be recognized until launched or may go undetected for extended periods
•cyber attacks can originate from a wide variety of sources, including JPMorgan Chase's own employees, cyber-criminals, hacktivists, well-resourced groups linked to terrorist organizations or hostile nation-states that can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally
•JPMorgan Chase does not have control over the cybersecurity of the systems of the large number of clients, customers, counterparties and third-party service providers with which it does business, and
•it is possible that a third party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems.
The risk of a security breach due to a cyber attack could increase in the future due to factors such as:
•JPMorgan Chase's ongoing expansion of its mobile banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services
•advances in artificial intelligence, such as the use of machine learning and generative artificial intelligence by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks
•the inability to maintain the security of information transmitted by JPMorgan Chase due to advances in quantum computing that may counteract or nullify existing information protections, and
•the acquisition and integration of new businesses.
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, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 23: In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
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, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 24:
Part I
or delivery platform, or adopts a new technology, it may not fully appreciate or identify new operational risks that may arise from those changes, including increased reliance on third party providers, or may fail to implement adequate controls to mitigate the risks associated with those changes. Any significant failure in this regard could diminish JPMorgan Chase's ability to operate one or more of its businesses or result in:
•potential liability to clients, counterparties and customers
•higher compliance and operational cost
•higher litigation costs, including regulatory fines, penalties and other sanctions
•damage to JPMorgan Chase's reputation
•impairment of JPMorgan Chase's liquidity
•regulatory intervention, or
•weaker competitive standing.
Any of the foregoing consequences could materially and adversely affect JPMorgan Chase's businesses and results of operations.
JPMorgan Chase's business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, and on the competence, trustworthiness, health and safety of employees.
JPMorgan Chase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorgan Chase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorgan Chase's businesses could be materially and adversely affected by:
•the ineffective implementation of business decisions
•any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls
•staffing shortages, particularly in tight labor markets
•the possibility that significant portions of JPMorgan Chase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorgan Chase's control such as natural disasters or an outbreak or escalation of hostilities
•a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or
•other negative outcomes caused by human error or misconduct by an employee of JPMorgan Chase or of another party on which JPMorgan Chase's businesses or operations rely.
JPMorgan Chase's operations could also be impaired if the measures taken by it or by governmental authorities to protect the health and safety of its employees are ineffective, or if any external party on which JPMorgan Chase relies fails to take appropriate and effective actions to protect the health and safety of its employees.
JPMorgan Chase faces substantial legal and operational risks in the processing and safeguarding of personal information.
JPMorgan Chase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., governing the privacy and protection of personal information of individuals. Governmental authorities around the world have adopted and are considering the adoption of numerous legislative and regulatory initiatives concerning privacy, data protection and security. Litigation or enforcement actions relating to these laws, rules and regulations could result in
fines or orders requiring that JPMorgan Chase change its data-related practices, which could have an adverse effect on JPMorgan Chase's ability to provide products and otherwise harm its business operations.
Implementing processes relating to JPMorgan Chase's collection, use, sharing and storage of personal information to comply with all applicable laws, rules and regulations in all relevant jurisdictions, including where the laws of different jurisdictions are in conflict, can:
•increase JPMorgan Chase's compliance and operating costs
•hinder the development of new products or services, curtail the offering of existing products or services, or affect how products and services are offered to clients and customers
•demand significant oversight by JPMorgan Chase's management, and
•require JPMorgan Chase to structure its businesses, operations and systems in less efficient ways.
Not all of JPMorgan Chase's clients, customers, vendors, counterparties and other external parties may have appropriate controls in place to protect the confidentiality, integrity or availability of the information exchanged between them and JPMorgan Chase, particularly where information is transmitted by electronic means. JPMorgan Chase could be exposed to litigation or regulatory fines, penalties or other sanctions if personal information of clients, customers, employees or others were to be mishandled or misused, such as situations where such information is:
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|
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
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,
Part I
A reduction in JPMorgan Chase's credit ratings could curtail JPMorgan Chase's business activities and reduce its profitability in a number of ways, including:
•reducing its access to capital markets
•materially increasing its cost of issuing and servicing securities
•triggering additional collateral or funding requirements, and
•decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorgan Chase.
Any rating reduction could also increase the credit spreads charged by the market for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.
Capital
Maintaining the required level and composition of capital may impact JPMorgan Chase's ability to support business activities, meet evolving regulatory requirements and distribute capital to shareholders.
JPMorgan Chase is subject to various regulatory capital requirements, including leverage- and risk-based capital requirements. In addition, as a Global Systemically Important Bank ("GSIB"), JPMorgan Chase is required to hold additional capital buffers, including a GSIB surcharge, a Stress Capital Buffer ("SCB"), and a countercyclical buffer, each of which is reassessed at least annually. The amount of capital that JPMorgan Chase is required to hold in order to satisfy these leverage- and risk-based requirements could increase at any given time due to factors such as:
•actions by banking regulators, including changes in laws, rules, and regulations
•changes in the composition of JPMorgan Chase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and
•increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review, which could increase JPMorgan Chase's SCB.
Any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorgan Chase's shareholders, such as:
•reducing the amount of common stock that JPMorgan Chase is permitted to repurchase
•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorgan Chase's capital management strategy
•constraining the amount of dividends that may be paid on common stock, or
•curtailing JPMorgan Chase's business activities or operations.
Banking regulators have released a proposal to amend the Basel III risk-based capital framework which could significantly revise the risk-based capital requirements for banks with assets of $100 billion or more, including JPMorgan Chase. Uncertainty remains as to the manner in which these requirements will ultimately apply to JPMorgan Chase, however it is possible that these requirements could impact JPMorgan Chase's decisions concerning the business activities in which it will engage and its levels of capital distributions to its shareholders.
Operational
JPMorgan Chase's businesses are dependent on the effectiveness of internal and external operational systems.
JPMorgan Chase's businesses rely on the ability of JPMorgan Chase's financial, accounting, transaction execution, data processing and other operational systems to process, record, monitor and report a large number of transactions on a continuous basis, and to do so accurately, quickly and securely. In addition to proper design, installation, maintenance and training, the effective functioning of JPMorgan Chase's operational systems depends on:
•the quality of the information contained in those systems, as inaccurate, outdated, incomplete or corrupted data can significantly compromise the functionality or reliability of a particular system and other systems to which it transmits or from which it receives information, and
•JPMorgan Chase's ability to continue to maintain and upgrade its systems on a regular basis in line with technological advancements and evolving security requirements, carefully manage any changes introduced to its systems to maintain security and operational continuity, and adhere to all applicable legal and regulatory requirements, particularly in regions where JPMorgan Chase may face a heightened risk of malicious activity.
JPMorgan Chase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including degraded performance of data processing systems, data quality issues, disruptions of network connectivity and malfunctioning software, as well as disruptions in its ability to access and use the operational systems of third parties. These incidents have resulted in various negative effects for customers, including the inability to access account information or to make transactions through ATM, internet or mobile channels, the exfiltration of customer personal data, the recording of duplicative transactions and extended delays for customers requiring services from call
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, centers. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.
JPMorgan Chase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorgan Chase and its clients, customers and counterparties, including:
•JPMorgan Chase's ability to effectively maintain and upgrade systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions continue to increase
•attempts by third parties to defraud JPMorgan Chase or its clients and customers are increasing, evolving and becoming more complex, and during periods of market disruption or economic uncertainty, these attempts can be expected to increase in volume
•errors made by JPMorgan Chase or another market participant, whether inadvertent or malicious, could cause widespread system disruption
•failure to detect weaknesses or shortcomings in operational systems in a timely manner
•isolated or seemingly insignificant errors in operational systems could compound, or migrate to other systems over time, to become larger issues
•disruptions in operational systems or in the ability of systems to communicate with each other could be caused by failures in synchronization or encryption software, or degraded performance of microprocessors, and
•attempts by third parties to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.
JPMorgan Chase also depends on its ability to access and use the operational systems of third parties, including its custodians, vendors (such as those that provide data and cloud computing services, and security and technology services) and other market participants (such as clearing and payment systems, CCPs and securities exchanges), and external operational systems with which JPMorgan is connected, whether directly or indirectly, can be sources of operational risk to JPMorgan Chase. JPMorgan Chase may be exposed not only to a systems failure or cyber attack that may be experienced by a vendor or market infrastructure with which JPMorgan Chase is directly connected, but also to a systems breakdown or cyber attack involving another party to which such a vendor or infrastructure is connected. Similarly, retailers, payment systems and processors, data aggregators and other external parties with which JPMorgan Chase's customers do business can increase JPMorgan Chase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorgan Chase's security and control systems, including through the use of the internet,
cloud computing services, and personal smart phones and other mobile devices or services.
If an external party obtains access to customer account data on JPMorgan Chase's systems, whether authorized or unauthorized, and that party misappropriates that data, this could result in negative outcomes for JPMorgan Chase and its clients and customers, including a heightened risk of fraudulent transactions using JPMorgan Chase's systems, losses from fraudulent transactions and reputational harm arising from the perception that JPMorgan Chase's systems may not be secure.
As JPMorgan Chase's interconnectivity with clients, customers and other external parties continues to expand, JPMorgan Chase increasingly faces the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorgan Chase's clients or customers, or systems breakdowns or failures, security breaches or human error or misconduct affecting other external parties, may require JPMorgan Chase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of customers to their accounts. These actions can increase JPMorgan Chase's operational costs and potentially diminish customer satisfaction and confidence in JPMorgan Chase.
Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity, including due to a cyber attack, may cause industry-wide operational disruptions that could materially affect JPMorgan Chase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party could be exacerbated to the extent that the services provided by that system are used by a significant number or proportion of market participants.
The ineffectiveness, failure or other disruption of operational systems upon which JPMorgan Chase depends, including due to a systems malfunction, cyber incident or other systems failure, could result in unfavorable ripple effects in the financial markets and for JPMorgan Chase and its clients and customers, including:
•delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers
•impairment of JPMorgan Chase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement
•the possibility that funds transfers, capital markets trades or other transactions are executed erroneously
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Part I
•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers
•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption
•limitations on JPMorgan Chase's ability to collect data needed for its business and operations
•loss of confidence in the ability of JPMorgan Chase, or financial institutions generally, to protect against and withstand operational disruptions
•dissatisfaction among JPMorgan Chase's clients or customers
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
If JPMorgan Chase's operational systems, or those of acquired businesses or of external parties on which JPMorgan Chase's businesses depend, are unable to meet the requirements of JPMorgan Chase's businesses and operations or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorgan Chase could be materially and adversely affected.
A successful cyber attack affecting JPMorgan Chase could cause significant harm to JPMorgan Chase and its clients and customers.
JPMorgan Chase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets on a daily basis from various actors, including groups acting on behalf of hostile countries, cyber-criminals, "hacktivists" (i.e., individuals or groups that use technology to promote a political agenda or social change) and others. These cyber attacks can take many forms, including attempts to introduce computer viruses or malicious code, which are commonly referred to as "malware," into JPMorgan Chase's systems. These attacks are often designed to:
•obtain unauthorized access to confidential information belonging to JPMorgan Chase or its clients, customers, counterparties or employees
•manipulate data
•destroy data or systems with the aim of rendering services unavailable
•disrupt, sabotage or degrade service on JPMorgan Chase's systems
•steal money, or
•extort money through the use of so-called "ransomware."
JPMorgan Chase also experiences:
•distributed denial-of-service attacks intended to disrupt JPMorgan Chase's websites, including those that provide online banking and other services,
•a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and
•a high volume of disruptions to internet-based services used by JPMorgan Chase that are provided by third parties.
JPMorgan Chase has experienced security breaches due to cyber attacks in the past, and it is inevitable that additional breaches will occur in the future. Any such breach could result in serious and harmful consequences for JPMorgan Chase or its clients and customers.
A principal reason that JPMorgan Chase cannot provide absolute security against cyber attacks is that it may not always be possible to anticipate, detect or recognize threats to JPMorgan Chase's systems, or to implement effective preventive measures against all breaches because:
•the techniques used in cyber attacks evolve frequently and are increasingly sophisticated, and therefore may not be recognized until launched or may go undetected for extended periods
•cyber attacks can originate from a wide variety of sources, including JPMorgan Chase's own employees, cyber-criminals, hacktivists, well-resourced groups linked to terrorist organizations or hostile nation-states that can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally
•JPMorgan Chase does not have control over the cybersecurity of the systems of the large number of clients, customers, counterparties and third-party service providers with which it does business, and
•it is possible that a third party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems.
The risk of a security breach due to a cyber attack could increase in the future due to factors such as:
•JPMorgan Chase's ongoing expansion of its mobile banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services
•advances in artificial intelligence, such as the use of machine learning and generative artificial intelligence by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks
•the inability to maintain the security of information transmitted by JPMorgan Chase due to advances in quantum computing that may counteract or nullify existing information protections, and
•the acquisition and integration of new businesses.
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, In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
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or delivery platform, or adopts a new technology, it may not fully appreciate or identify new operational risks that may arise from those changes, including increased reliance on third party providers, or may fail to implement adequate controls to mitigate the risks associated with those changes. Any significant failure in this regard could diminish JPMorgan Chase's ability to operate one or more of its businesses or result in:
•potential liability to clients, counterparties and customers
•higher compliance and operational cost
•higher litigation costs, including regulatory fines, penalties and other sanctions
•damage to JPMorgan Chase's reputation
•impairment of JPMorgan Chase's liquidity
•regulatory intervention, or
•weaker competitive standing.
Any of the foregoing consequences could materially and adversely affect JPMorgan Chase's businesses and results of operations.
JPMorgan Chase's business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, and on the competence, trustworthiness, health and safety of employees.
JPMorgan Chase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorgan Chase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorgan Chase's businesses could be materially and adversely affected by:
•the ineffective implementation of business decisions
•any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls
•staffing shortages, particularly in tight labor markets
•the possibility that significant portions of JPMorgan Chase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorgan Chase's control such as natural disasters or an outbreak or escalation of hostilities
•a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or
•other negative outcomes caused by human error or misconduct by an employee of JPMorgan Chase or of another party on which JPMorgan Chase's businesses or operations rely.
JPMorgan Chase's operations could also be impaired if the measures taken by it or by governmental authorities to protect the health and safety of its employees are ineffective, or if any external party on which JPMorgan Chase relies fails to take appropriate and effective actions to protect the health and safety of its employees.
JPMorgan Chase faces substantial legal and operational risks in the processing and safeguarding of personal information.
JPMorgan Chase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., governing the privacy and protection of personal information of individuals. Governmental authorities around the world have adopted and are considering the adoption of numerous legislative and regulatory initiatives concerning privacy, data protection and security. Litigation or enforcement actions relating to these laws, rules and regulations could result in
fines or orders requiring that JPMorgan Chase change its data-related practices, which could have an adverse effect on JPMorgan Chase's ability to provide products and otherwise harm its business operations.
Implementing processes relating to JPMorgan Chase's collection, use, sharing and storage of personal information to comply with all applicable laws, rules and regulations in all relevant jurisdictions, including where the laws of different jurisdictions are in conflict, can:
•increase JPMorgan Chase's compliance and operating costs
•hinder the development of new products or services, curtail the offering of existing products or services, or affect how products and services are offered to clients and customers
•demand significant oversight by JPMorgan Chase's management, and
•require JPMorgan Chase to structure its businesses, operations and systems in less efficient ways.
Not all of JPMorgan Chase's clients, customers, vendors, counterparties and other external parties may have appropriate controls in place to protect the confidentiality, integrity or availability of the information exchanged between them and JPMorgan Chase, particularly where information is transmitted by electronic means. JPMorgan Chase could be exposed to litigation or regulatory fines, penalties or other sanctions if personal information of clients, customers, employees or others were to be mishandled or misused, such as situations where such information is:
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JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 20:
Part I
A reduction in JPMorgan Chase's credit ratings could curtail JPMorgan Chase's business activities and reduce its profitability in a number of ways, including:
•reducing its access to capital markets
•materially increasing its cost of issuing and servicing securities
•triggering additional collateral or funding requirements, and
•decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorgan Chase.
Any rating reduction could also increase the credit spreads charged by the market for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.
Capital
Maintaining the required level and composition of capital may impact JPMorgan Chase's ability to support business activities, meet evolving regulatory requirements and distribute capital to shareholders.
JPMorgan Chase is subject to various regulatory capital requirements, including leverage- and risk-based capital requirements. In addition, as a Global Systemically Important Bank ("GSIB"), JPMorgan Chase is required to hold additional capital buffers, including a GSIB surcharge, a Stress Capital Buffer ("SCB"), and a countercyclical buffer, each of which is reassessed at least annually. The amount of capital that JPMorgan Chase is required to hold in order to satisfy these leverage- and risk-based requirements could increase at any given time due to factors such as:
•actions by banking regulators, including changes in laws, rules, and regulations
•changes in the composition of JPMorgan Chase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and
•increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review, which could increase JPMorgan Chase's SCB.
Any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorgan Chase's shareholders, such as:
•reducing the amount of common stock that JPMorgan Chase is permitted to repurchase
•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorgan Chase's capital management strategy
•constraining the amount of dividends that may be paid on common stock, or
•curtailing JPMorgan Chase's business activities or operations.
Banking regulators have released a proposal to amend the Basel III risk-based capital framework which could significantly revise the risk-based capital requirements for banks with assets of $100 billion or more, including JPMorgan Chase. Uncertainty remains as to the manner in which these requirements will ultimately apply to JPMorgan Chase, however it is possible that these requirements could impact JPMorgan Chase's decisions concerning the business activities in which it will engage and its levels of capital distributions to its shareholders.
Operational
JPMorgan Chase's businesses are dependent on the effectiveness of internal and external operational systems.
JPMorgan Chase's businesses rely on the ability of JPMorgan Chase's financial, accounting, transaction execution, data processing and other operational systems to process, record, monitor and report a large number of transactions on a continuous basis, and to do so accurately, quickly and securely. In addition to proper design, installation, maintenance and training, the effective functioning of JPMorgan Chase's operational systems depends on:
•the quality of the information contained in those systems, as inaccurate, outdated, incomplete or corrupted data can significantly compromise the functionality or reliability of a particular system and other systems to which it transmits or from which it receives information, and
•JPMorgan Chase's ability to continue to maintain and upgrade its systems on a regular basis in line with technological advancements and evolving security requirements, carefully manage any changes introduced to its systems to maintain security and operational continuity, and adhere to all applicable legal and regulatory requirements, particularly in regions where JPMorgan Chase may face a heightened risk of malicious activity.
JPMorgan Chase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including degraded performance of data processing systems, data quality issues, disruptions of network connectivity and malfunctioning software, as well as disruptions in its ability to access and use the operational systems of third parties. These incidents have resulted in various negative effects for customers, including the inability to access account information or to make transactions through ATM, internet or mobile channels, the exfiltration of customer personal data, the recording of duplicative transactions and extended delays for customers requiring services from call
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">20</td><td colspan="3"></td><td colspan="3"></td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 21: centers. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.
JPMorgan Chase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorgan Chase and its clients, customers and counterparties, including:
•JPMorgan Chase's ability to effectively maintain and upgrade systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions continue to increase
•attempts by third parties to defraud JPMorgan Chase or its clients and customers are increasing, evolving and becoming more complex, and during periods of market disruption or economic uncertainty, these attempts can be expected to increase in volume
•errors made by JPMorgan Chase or another market participant, whether inadvertent or malicious, could cause widespread system disruption
•failure to detect weaknesses or shortcomings in operational systems in a timely manner
•isolated or seemingly insignificant errors in operational systems could compound, or migrate to other systems over time, to become larger issues
•disruptions in operational systems or in the ability of systems to communicate with each other could be caused by failures in synchronization or encryption software, or degraded performance of microprocessors, and
•attempts by third parties to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.
JPMorgan Chase also depends on its ability to access and use the operational systems of third parties, including its custodians, vendors (such as those that provide data and cloud computing services, and security and technology services) and other market participants (such as clearing and payment systems, CCPs and securities exchanges), and external operational systems with which JPMorgan is connected, whether directly or indirectly, can be sources of operational risk to JPMorgan Chase. JPMorgan Chase may be exposed not only to a systems failure or cyber attack that may be experienced by a vendor or market infrastructure with which JPMorgan Chase is directly connected, but also to a systems breakdown or cyber attack involving another party to which such a vendor or infrastructure is connected. Similarly, retailers, payment systems and processors, data aggregators and other external parties with which JPMorgan Chase's customers do business can increase JPMorgan Chase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorgan Chase's security and control systems, including through the use of the internet,
cloud computing services, and personal smart phones and other mobile devices or services.
If an external party obtains access to customer account data on JPMorgan Chase's systems, whether authorized or unauthorized, and that party misappropriates that data, this could result in negative outcomes for JPMorgan Chase and its clients and customers, including a heightened risk of fraudulent transactions using JPMorgan Chase's systems, losses from fraudulent transactions and reputational harm arising from the perception that JPMorgan Chase's systems may not be secure.
As JPMorgan Chase's interconnectivity with clients, customers and other external parties continues to expand, JPMorgan Chase increasingly faces the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorgan Chase's clients or customers, or systems breakdowns or failures, security breaches or human error or misconduct affecting other external parties, may require JPMorgan Chase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of customers to their accounts. These actions can increase JPMorgan Chase's operational costs and potentially diminish customer satisfaction and confidence in JPMorgan Chase.
Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity, including due to a cyber attack, may cause industry-wide operational disruptions that could materially affect JPMorgan Chase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party could be exacerbated to the extent that the services provided by that system are used by a significant number or proportion of market participants.
The ineffectiveness, failure or other disruption of operational systems upon which JPMorgan Chase depends, including due to a systems malfunction, cyber incident or other systems failure, could result in unfavorable ripple effects in the financial markets and for JPMorgan Chase and its clients and customers, including:
•delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers
•impairment of JPMorgan Chase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement
•the possibility that funds transfers, capital markets trades or other transactions are executed erroneously
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">21</td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 22:
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•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers
•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption
•limitations on JPMorgan Chase's ability to collect data needed for its business and operations
•loss of confidence in the ability of JPMorgan Chase, or financial institutions generally, to protect against and withstand operational disruptions
•dissatisfaction among JPMorgan Chase's clients or customers
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
If JPMorgan Chase's operational systems, or those of acquired businesses or of external parties on which JPMorgan Chase's businesses depend, are unable to meet the requirements of JPMorgan Chase's businesses and operations or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorgan Chase could be materially and adversely affected.
A successful cyber attack affecting JPMorgan Chase could cause significant harm to JPMorgan Chase and its clients and customers.
JPMorgan Chase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets on a daily basis from various actors, including groups acting on behalf of hostile countries, cyber-criminals, "hacktivists" (i.e., individuals or groups that use technology to promote a political agenda or social change) and others. These cyber attacks can take many forms, including attempts to introduce computer viruses or malicious code, which are commonly referred to as "malware," into JPMorgan Chase's systems. These attacks are often designed to:
•obtain unauthorized access to confidential information belonging to JPMorgan Chase or its clients, customers, counterparties or employees
•manipulate data
•destroy data or systems with the aim of rendering services unavailable
•disrupt, sabotage or degrade service on JPMorgan Chase's systems
•steal money, or
•extort money through the use of so-called "ransomware."
JPMorgan Chase also experiences:
•distributed denial-of-service attacks intended to disrupt JPMorgan Chase's websites, including those that provide online banking and other services,
•a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and
•a high volume of disruptions to internet-based services used by JPMorgan Chase that are provided by third parties.
JPMorgan Chase has experienced security breaches due to cyber attacks in the past, and it is inevitable that additional breaches will occur in the future. Any such breach could result in serious and harmful consequences for JPMorgan Chase or its clients and customers.
A principal reason that JPMorgan Chase cannot provide absolute security against cyber attacks is that it may not always be possible to anticipate, detect or recognize threats to JPMorgan Chase's systems, or to implement effective preventive measures against all breaches because:
•the techniques used in cyber attacks evolve frequently and are increasingly sophisticated, and therefore may not be recognized until launched or may go undetected for extended periods
•cyber attacks can originate from a wide variety of sources, including JPMorgan Chase's own employees, cyber-criminals, hacktivists, well-resourced groups linked to terrorist organizations or hostile nation-states that can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally
•JPMorgan Chase does not have control over the cybersecurity of the systems of the large number of clients, customers, counterparties and third-party service providers with which it does business, and
•it is possible that a third party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems.
The risk of a security breach due to a cyber attack could increase in the future due to factors such as:
•JPMorgan Chase's ongoing expansion of its mobile banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services
•advances in artificial intelligence, such as the use of machine learning and generative artificial intelligence by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks
•the inability to maintain the security of information transmitted by JPMorgan Chase due to advances in quantum computing that may counteract or nullify existing information protections, and
•the acquisition and integration of new businesses.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">22</td><td colspan="3"></td><td colspan="3"></td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 23: In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">23</td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 24:
Part I
or delivery platform, or adopts a new technology, it may not fully appreciate or identify new operational risks that may arise from those changes, including increased reliance on third party providers, or may fail to implement adequate controls to mitigate the risks associated with those changes. Any significant failure in this regard could diminish JPMorgan Chase's ability to operate one or more of its businesses or result in:
•potential liability to clients, counterparties and customers
•higher compliance and operational cost
•higher litigation costs, including regulatory fines, penalties and other sanctions
•damage to JPMorgan Chase's reputation
•impairment of JPMorgan Chase's liquidity
•regulatory intervention, or
•weaker competitive standing.
Any of the foregoing consequences could materially and adversely affect JPMorgan Chase's businesses and results of operations.
JPMorgan Chase's business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, and on the competence, trustworthiness, health and safety of employees.
JPMorgan Chase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorgan Chase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorgan Chase's businesses could be materially and adversely affected by:
•the ineffective implementation of business decisions
•any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls
•staffing shortages, particularly in tight labor markets
•the possibility that significant portions of JPMorgan Chase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorgan Chase's control such as natural disasters or an outbreak or escalation of hostilities
•a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or
•other negative outcomes caused by human error or misconduct by an employee of JPMorgan Chase or of another party on which JPMorgan Chase's businesses or operations rely.
JPMorgan Chase's operations could also be impaired if the measures taken by it or by governmental authorities to protect the health and safety of its employees are ineffective, or if any external party on which JPMorgan Chase relies fails to take appropriate and effective actions to protect the health and safety of its employees.
JPMorgan Chase faces substantial legal and operational risks in the processing and safeguarding of personal information.
JPMorgan Chase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., governing the privacy and protection of personal information of individuals. Governmental authorities around the world have adopted and are considering the adoption of numerous legislative and regulatory initiatives concerning privacy, data protection and security. Litigation or enforcement actions relating to these laws, rules and regulations could result in
fines or orders requiring that JPMorgan Chase change its data-related practices, which could have an adverse effect on JPMorgan Chase's ability to provide products and otherwise harm its business operations.
Implementing processes relating to JPMorgan Chase's collection, use, sharing and storage of personal information to comply with all applicable laws, rules and regulations in all relevant jurisdictions, including where the laws of different jurisdictions are in conflict, can:
•increase JPMorgan Chase's compliance and operating costs
•hinder the development of new products or services, curtail the offering of existing products or services, or affect how products and services are offered to clients and customers
•demand significant oversight by JPMorgan Chase's management, and
•require JPMorgan Chase to structure its businesses, operations and systems in less efficient ways.
Not all of JPMorgan Chase's clients, customers, vendors, counterparties and other external parties may have appropriate controls in place to protect the confidentiality, integrity or availability of the information exchanged between them and JPMorgan Chase, particularly where information is transmitted by electronic means. JPMorgan Chase could be exposed to litigation or regulatory fines, penalties or other sanctions if personal information of clients, customers, employees or others were to be mishandled or misused, such as situations where such information is:
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Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>,
Part I
A reduction in JPMorgan Chase's credit ratings could curtail JPMorgan Chase's business activities and reduce its profitability in a number of ways, including:
•reducing its access to capital markets
•materially increasing its cost of issuing and servicing securities
•triggering additional collateral or funding requirements, and
•decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorgan Chase.
Any rating reduction could also increase the credit spreads charged by the market for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.
Capital
Maintaining the required level and composition of capital may impact JPMorgan Chase's ability to support business activities, meet evolving regulatory requirements and distribute capital to shareholders.
JPMorgan Chase is subject to various regulatory capital requirements, including leverage- and risk-based capital requirements. In addition, as a Global Systemically Important Bank ("GSIB"), JPMorgan Chase is required to hold additional capital buffers, including a GSIB surcharge, a Stress Capital Buffer ("SCB"), and a countercyclical buffer, each of which is reassessed at least annually. The amount of capital that JPMorgan Chase is required to hold in order to satisfy these leverage- and risk-based requirements could increase at any given time due to factors such as:
•actions by banking regulators, including changes in laws, rules, and regulations
•changes in the composition of JPMorgan Chase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and
•increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review, which could increase JPMorgan Chase's SCB.
Any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorgan Chase's shareholders, such as:
•reducing the amount of common stock that JPMorgan Chase is permitted to repurchase
•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorgan Chase's capital management strategy
•constraining the amount of dividends that may be paid on common stock, or
•curtailing JPMorgan Chase's business activities or operations.
Banking regulators have released a proposal to amend the Basel III risk-based capital framework which could significantly revise the risk-based capital requirements for banks with assets of $100 billion or more, including JPMorgan Chase. Uncertainty remains as to the manner in which these requirements will ultimately apply to JPMorgan Chase, however it is possible that these requirements could impact JPMorgan Chase's decisions concerning the business activities in which it will engage and its levels of capital distributions to its shareholders.
Operational
JPMorgan Chase's businesses are dependent on the effectiveness of internal and external operational systems.
JPMorgan Chase's businesses rely on the ability of JPMorgan Chase's financial, accounting, transaction execution, data processing and other operational systems to process, record, monitor and report a large number of transactions on a continuous basis, and to do so accurately, quickly and securely. In addition to proper design, installation, maintenance and training, the effective functioning of JPMorgan Chase's operational systems depends on:
•the quality of the information contained in those systems, as inaccurate, outdated, incomplete or corrupted data can significantly compromise the functionality or reliability of a particular system and other systems to which it transmits or from which it receives information, and
•JPMorgan Chase's ability to continue to maintain and upgrade its systems on a regular basis in line with technological advancements and evolving security requirements, carefully manage any changes introduced to its systems to maintain security and operational continuity, and adhere to all applicable legal and regulatory requirements, particularly in regions where JPMorgan Chase may face a heightened risk of malicious activity.
JPMorgan Chase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including degraded performance of data processing systems, data quality issues, disruptions of network connectivity and malfunctioning software, as well as disruptions in its ability to access and use the operational systems of third parties. These incidents have resulted in various negative effects for customers, including the inability to access account information or to make transactions through ATM, internet or mobile channels, the exfiltration of customer personal data, the recording of duplicative transactions and extended delays for customers requiring services from call
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">20</td><td colspan="3"></td><td colspan="3"></td></tr></table>, centers. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.
JPMorgan Chase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorgan Chase and its clients, customers and counterparties, including:
•JPMorgan Chase's ability to effectively maintain and upgrade systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions continue to increase
•attempts by third parties to defraud JPMorgan Chase or its clients and customers are increasing, evolving and becoming more complex, and during periods of market disruption or economic uncertainty, these attempts can be expected to increase in volume
•errors made by JPMorgan Chase or another market participant, whether inadvertent or malicious, could cause widespread system disruption
•failure to detect weaknesses or shortcomings in operational systems in a timely manner
•isolated or seemingly insignificant errors in operational systems could compound, or migrate to other systems over time, to become larger issues
•disruptions in operational systems or in the ability of systems to communicate with each other could be caused by failures in synchronization or encryption software, or degraded performance of microprocessors, and
•attempts by third parties to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.
JPMorgan Chase also depends on its ability to access and use the operational systems of third parties, including its custodians, vendors (such as those that provide data and cloud computing services, and security and technology services) and other market participants (such as clearing and payment systems, CCPs and securities exchanges), and external operational systems with which JPMorgan is connected, whether directly or indirectly, can be sources of operational risk to JPMorgan Chase. JPMorgan Chase may be exposed not only to a systems failure or cyber attack that may be experienced by a vendor or market infrastructure with which JPMorgan Chase is directly connected, but also to a systems breakdown or cyber attack involving another party to which such a vendor or infrastructure is connected. Similarly, retailers, payment systems and processors, data aggregators and other external parties with which JPMorgan Chase's customers do business can increase JPMorgan Chase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorgan Chase's security and control systems, including through the use of the internet,
cloud computing services, and personal smart phones and other mobile devices or services.
If an external party obtains access to customer account data on JPMorgan Chase's systems, whether authorized or unauthorized, and that party misappropriates that data, this could result in negative outcomes for JPMorgan Chase and its clients and customers, including a heightened risk of fraudulent transactions using JPMorgan Chase's systems, losses from fraudulent transactions and reputational harm arising from the perception that JPMorgan Chase's systems may not be secure.
As JPMorgan Chase's interconnectivity with clients, customers and other external parties continues to expand, JPMorgan Chase increasingly faces the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorgan Chase's clients or customers, or systems breakdowns or failures, security breaches or human error or misconduct affecting other external parties, may require JPMorgan Chase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of customers to their accounts. These actions can increase JPMorgan Chase's operational costs and potentially diminish customer satisfaction and confidence in JPMorgan Chase.
Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity, including due to a cyber attack, may cause industry-wide operational disruptions that could materially affect JPMorgan Chase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party could be exacerbated to the extent that the services provided by that system are used by a significant number or proportion of market participants.
The ineffectiveness, failure or other disruption of operational systems upon which JPMorgan Chase depends, including due to a systems malfunction, cyber incident or other systems failure, could result in unfavorable ripple effects in the financial markets and for JPMorgan Chase and its clients and customers, including:
•delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers
•impairment of JPMorgan Chase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement
•the possibility that funds transfers, capital markets trades or other transactions are executed erroneously
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">21</td></tr></table>,
Part I
•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers
•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption
•limitations on JPMorgan Chase's ability to collect data needed for its business and operations
•loss of confidence in the ability of JPMorgan Chase, or financial institutions generally, to protect against and withstand operational disruptions
•dissatisfaction among JPMorgan Chase's clients or customers
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
If JPMorgan Chase's operational systems, or those of acquired businesses or of external parties on which JPMorgan Chase's businesses depend, are unable to meet the requirements of JPMorgan Chase's businesses and operations or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorgan Chase could be materially and adversely affected.
A successful cyber attack affecting JPMorgan Chase could cause significant harm to JPMorgan Chase and its clients and customers.
JPMorgan Chase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets on a daily basis from various actors, including groups acting on behalf of hostile countries, cyber-criminals, "hacktivists" (i.e., individuals or groups that use technology to promote a political agenda or social change) and others. These cyber attacks can take many forms, including attempts to introduce computer viruses or malicious code, which are commonly referred to as "malware," into JPMorgan Chase's systems. These attacks are often designed to:
•obtain unauthorized access to confidential information belonging to JPMorgan Chase or its clients, customers, counterparties or employees
•manipulate data
•destroy data or systems with the aim of rendering services unavailable
•disrupt, sabotage or degrade service on JPMorgan Chase's systems
•steal money, or
•extort money through the use of so-called "ransomware."
JPMorgan Chase also experiences:
•distributed denial-of-service attacks intended to disrupt JPMorgan Chase's websites, including those that provide online banking and other services,
•a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and
•a high volume of disruptions to internet-based services used by JPMorgan Chase that are provided by third parties.
JPMorgan Chase has experienced security breaches due to cyber attacks in the past, and it is inevitable that additional breaches will occur in the future. Any such breach could result in serious and harmful consequences for JPMorgan Chase or its clients and customers.
A principal reason that JPMorgan Chase cannot provide absolute security against cyber attacks is that it may not always be possible to anticipate, detect or recognize threats to JPMorgan Chase's systems, or to implement effective preventive measures against all breaches because:
•the techniques used in cyber attacks evolve frequently and are increasingly sophisticated, and therefore may not be recognized until launched or may go undetected for extended periods
•cyber attacks can originate from a wide variety of sources, including JPMorgan Chase's own employees, cyber-criminals, hacktivists, well-resourced groups linked to terrorist organizations or hostile nation-states that can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally
•JPMorgan Chase does not have control over the cybersecurity of the systems of the large number of clients, customers, counterparties and third-party service providers with which it does business, and
•it is possible that a third party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems.
The risk of a security breach due to a cyber attack could increase in the future due to factors such as:
•JPMorgan Chase's ongoing expansion of its mobile banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services
•advances in artificial intelligence, such as the use of machine learning and generative artificial intelligence by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks
•the inability to maintain the security of information transmitted by JPMorgan Chase due to advances in quantum computing that may counteract or nullify existing information protections, and
•the acquisition and integration of new businesses.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">22</td><td colspan="3"></td><td colspan="3"></td></tr></table>, In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorgan Chase's employees.
The dynamic nature of the cyber threat landscape necessitates continuous enhancement and adaptation of cybersecurity controls. Failure to discover or address known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorgan Chase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:
•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems
•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")
•enhancing early detection of attacks against third-party vendors, including attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems
•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorgan Chase's ability to operate an effective control process
•upgrading the coverage and capabilities of systems and controls to protect JPMorgan Chase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack
•strengthening network security and management of outbound connections to reduce the risk of data loss
•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorgan Chase's systems or client and customer information, and
•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.
A successful penetration or circumvention of the security of JPMorgan Chase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:
•significant disruption of JPMorgan Chase's operations and those of its clients, customers and counterparties, including losing access to operational systems
•misappropriation of confidential information of JPMorgan Chase or that of its clients, customers, counterparties, employees or regulators
•disruption of or damage to JPMorgan Chase's systems and those of its clients, customers and counterparties
•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions
•demands that JPMorgan Chase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach
•unintended violations by JPMorgan Chase of applicable privacy and other laws
•financial loss to JPMorgan Chase or to its clients, customers, counterparties or employees
•loss of confidence in JPMorgan Chase's cybersecurity and business resiliency measures
•dissatisfaction among JPMorgan Chase's clients, customers or counterparties
•significant exposure to litigation and regulatory fines, penalties or other sanctions, and
•harm to JPMorgan Chase's reputation.
The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorgan Chase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorgan Chase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorgan Chase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.
JPMorgan Chase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.
When JPMorgan Chase launches a new product or service, introduces a new platform for the delivery or distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service
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Part I
or delivery platform, or adopts a new technology, it may not fully appreciate or identify new operational risks that may arise from those changes, including increased reliance on third party providers, or may fail to implement adequate controls to mitigate the risks associated with those changes. Any significant failure in this regard could diminish JPMorgan Chase's ability to operate one or more of its businesses or result in:
•potential liability to clients, counterparties and customers
•higher compliance and operational cost
•higher litigation costs, including regulatory fines, penalties and other sanctions
•damage to JPMorgan Chase's reputation
•impairment of JPMorgan Chase's liquidity
•regulatory intervention, or
•weaker competitive standing.
Any of the foregoing consequences could materially and adversely affect JPMorgan Chase's businesses and results of operations.
JPMorgan Chase's business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, and on the competence, trustworthiness, health and safety of employees.
JPMorgan Chase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorgan Chase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorgan Chase's businesses could be materially and adversely affected by:
•the ineffective implementation of business decisions
•any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls
•staffing shortages, particularly in tight labor markets
•the possibility that significant portions of JPMorgan Chase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorgan Chase's control such as natural disasters or an outbreak or escalation of hostilities
•a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or
•other negative outcomes caused by human error or misconduct by an employee of JPMorgan Chase or of another party on which JPMorgan Chase's businesses or operations rely.
JPMorgan Chase's operations could also be impaired if the measures taken by it or by governmental authorities to protect the health and safety of its employees are ineffective, or if any external party on which JPMorgan Chase relies fails to take appropriate and effective actions to protect the health and safety of its employees.
JPMorgan Chase faces substantial legal and operational risks in the processing and safeguarding of personal information.
JPMorgan Chase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., governing the privacy and protection of personal information of individuals. Governmental authorities around the world have adopted and are considering the adoption of numerous legislative and regulatory initiatives concerning privacy, data protection and security. Litigation or enforcement actions relating to these laws, rules and regulations could result in
fines or orders requiring that JPMorgan Chase change its data-related practices, which could have an adverse effect on JPMorgan Chase's ability to provide products and otherwise harm its business operations.
Implementing processes relating to JPMorgan Chase's collection, use, sharing and storage of personal information to comply with all applicable laws, rules and regulations in all relevant jurisdictions, including where the laws of different jurisdictions are in conflict, can:
•increase JPMorgan Chase's compliance and operating costs
•hinder the development of new products or services, curtail the offering of existing products or services, or affect how products and services are offered to clients and customers
•demand significant oversight by JPMorgan Chase's management, and
•require JPMorgan Chase to structure its businesses, operations and systems in less efficient ways.
Not all of JPMorgan Chase's clients, customers, vendors, counterparties and other external parties may have appropriate controls in place to protect the confidentiality, integrity or availability of the information exchanged between them and JPMorgan Chase, particularly where information is transmitted by electronic means. JPMorgan Chase could be exposed to litigation or regulatory fines, penalties or other sanctions if personal information of clients, customers, employees or others were to be mishandled or misused, such as situations where such information is:
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">24</td><td colspan="3"></td><td colspan="3"></td></tr></table>
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q_Ri019
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What is the potential impact of interest rate fluctuations on the company's financial health?
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Interest rate fluctuations can have a significant impact on the company's financial health by affecting the cost of borrowing and the value of interest-bearing assets and liabilities.
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Risk
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9, 14, 15, 16
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0000019617-24-000225
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Item 1A. Risk Factors.
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JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
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| 1 | 9 |
, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 14:
Part I
•provoke retaliatory countermeasures by other countries and otherwise heighten tensions in regulatory, enforcement or diplomatic relations
•increase concerns about whether the U.S. government will be funded, and its outstanding debt serviced, at any particular time
•lead to the withdrawal of government support for agencies and enterprises such as the U.S. Federal National Mortgage Association and the U.S. Federal Home Loan Mortgage Corporation (together, the "U.S. GSEs")
•result in periodic shutdowns of the U.S. government or governments in other countries
•increase investor reliance on actions by the Federal Reserve or other central banks, or influence investor perceptions concerning government support of sectors of the economy or the economy as a whole
•adversely affect the financial condition or credit ratings of clients and counterparties with which JPMorgan Chase does business, or
•cause JPMorgan Chase to refrain from engaging in business opportunities that it might otherwise pursue.
These factors could lead to:
•slower growth rates, rising inflation or recession
•greater market volatility
•a contraction of available credit and the widening of credit spreads
•erosion of adequate risk premium on certain financial assets
•diminished investor and consumer confidence
•lower investments in a particular country or sector of the economy
•large-scale sales of government debt and other debt and equity securities in the U.S. and other countries
•reduced commercial activity among trading partners
•the potential for a currency redenomination by a particular country
•the possible departure of a country from, or the dissolution or formation of, a political or economic alliance or treaty
•potential expropriation or nationalization of assets, including client assets, or
•other market dislocations, including unfavorable economic conditions that could spread from a particular country or region to other countries or regions.
Any of these potential outcomes could cause JPMorgan Chase to suffer losses on its market-making positions or in its investment portfolio, reduce its liquidity and capital levels, increase the allowance for credit losses or lead to higher net charge-offs, hamper its ability to deliver
products and services to its clients and customers, and weaken its results of operations and financial condition or credit rating.
JPMorgan Chase's business and results of operations may also be adversely affected by actions or initiatives by national, state or local governmental authorities that:
•seek to discourage financial institutions from doing business with companies engaged in certain industries, or conversely, to penalize financial institutions that elect not to do business with such companies, or
•mandate specific business practices that companies operating in the relevant jurisdiction must adopt.
Because governmental policies in one jurisdiction may differ or conflict with those in other jurisdictions, JPMorgan Chase may face negative consequences regardless of the course of action it takes or elects not to take, including:
•restrictions or prohibitions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction
•the threat of enforcement actions, including under antitrust or other anti-competition laws, rules and regulations, and
•harm to its reputation arising from public criticism, including from politicians, activists and other stakeholders.
JPMorgan Chase has been prohibited from engaging in certain business activities in specific jurisdictions as a result of these types of governmental actions, and there is no assurance that it will not face similar restrictions on its business and operations in the future.
In addition, JPMorgan Chase's relationships or ability to transact with clients and customers, and with governmental or regulatory bodies in jurisdictions in which JPMorgan Chase does business, could be adversely affected if its decisions with respect to doing business with companies in certain sensitive industries are perceived to harm those companies or to align with particular political viewpoints. Furthermore, JPMorgan Chase's participation in or association with certain environmental and social industry groups or initiatives could be viewed by activists or governmental authorities as boycotting or other discriminatory business behavior.
Market
Economic and market events and conditions can materially affect JPMorgan Chase's businesses and investment and market-making positions.
JPMorgan Chase's results of operations can be negatively affected by adverse changes in any of the following:
•investor, consumer and business sentiment
•events that reduce confidence in the financial markets
•inflation, deflation or recession
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| 1 | 14 |
, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 15: •high unemployment or, conversely, a tightening labor market
•the availability and cost of capital, liquidity and credit
•levels and volatility of interest rates, credit spreads and market prices for currencies, equities and commodities, as well as the duration of any such changes
•the economic effects of an outbreak or escalation of hostilities, terrorism or other geopolitical instabilities, cyber attacks, climate change, natural disasters, severe weather conditions, health emergencies, the spread of infectious diseases, epidemics or pandemics or other extraordinary events beyond JPMorgan Chase's control, and
•the strength of the U.S. and global economies.
All of these are affected by global economic, market and political events and conditions, as well as regulatory restrictions.
In addition, JPMorgan Chase's investment portfolio and market-making businesses can suffer losses due to unanticipated market events, including:
•severe declines in asset values
•unexpected credit events
•unforeseen events or conditions that may cause previously uncorrelated factors to become correlated (and vice versa)
•the inability to effectively hedge risks related to market-making and investment portfolio positions, or
•other market risks that may not have been appropriately taken into account in the development, structuring or pricing of a financial instrument.
If JPMorgan Chase experiences significant losses in its investment portfolio or from market-making activities, this could reduce JPMorgan Chase's profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses.
JPMorgan Chase's consumer businesses can be negatively affected by adverse economic conditions and governmental policies.
JPMorgan Chase's consumer businesses are particularly affected by U.S. and global economic conditions, including:
•personal and household income distribution
•unemployment or underemployment
•prolonged periods of exceptionally high or low interest rates
•changes in the value of collateral such as residential real estate and vehicles
•changes in housing prices
•the level of inflation and its effect on prices for goods and services
•consumer and small business confidence levels, and
•changes in consumer spending or in the level of consumer debt.
Heightened levels of unemployment or underemployment that result in reduced personal and household income could negatively affect consumer credit performance to the extent that consumers are less able to service their debts. In addition, sustained low growth, low or negative interest rates, inflationary pressures or recessionary conditions could diminish customer demand for the products and services offered by JPMorgan Chase's consumer businesses.
Adverse economic conditions could also lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorgan Chase's earnings. These consequences could be significantly worse in certain geographies, including where declining industrial or manufacturing activity has resulted in or could result in higher levels of unemployment, or where high levels of consumer debt, such as outstanding student loans, could impair the ability of customers to pay their other consumer loan obligations.
JPMorgan Chase's earnings from its consumer businesses could also be adversely affected by governmental policies and actions that affect consumers, including:
•policies and initiatives relating to medical insurance, education, immigration, employment status and housing
•laws, rules and regulations relating specifically to the financial services industry, such as limitations on late payment, overdraft and interchange fees, and
•policies aimed at the economy more broadly, such as higher taxes and increased regulation which could result in reductions in consumer disposable income.
Unfavorable market and economic conditions can have an adverse effect on JPMorgan Chase's wholesale businesses.
In JPMorgan Chase's wholesale businesses, market and economic factors can affect the volume of transactions that JPMorgan Chase executes for its clients or for which it advises clients, and, therefore, the revenue that JPMorgan Chase receives from those transactions. These factors can also influence the willingness of other financial institutions and investors to participate in capital markets transactions that JPMorgan Chase manages, such as loan syndications or securities underwriting. Furthermore, if a significant and sustained deterioration in market conditions were to occur, the profitability of JPMorgan Chase's businesses engaged in capital markets activities, including loan syndication, securities underwriting and leveraged lending activities, could be reduced to the extent that those businesses:
•earn less fee revenue due to lower transaction volumes, including when clients are unwilling or unable to
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| 1 | 15 |
, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 16:
Part I
refinance their outstanding debt obligations in unfavorable market conditions, or
•dispose of portions of credit commitments at a loss, or hold larger residual positions in credit commitments that cannot be sold at favorable prices.
The fees that JPMorgan Chase earns from managing client assets or holding assets under custody for clients could be diminished by declining asset values or other adverse macroeconomic conditions. For example, higher interest rates or a downturn in financial markets could affect the valuation of client assets that JPMorgan Chase manages or holds under custody, which, in turn, could affect JPMorgan Chase's revenue from fees that are based on the amount of assets under management or custody. Similarly, adverse macroeconomic or market conditions could prompt outflows from JPMorgan Chase funds or accounts, or cause clients to invest in products that generate lower revenue. Substantial and unexpected withdrawals from a JPMorgan Chase fund can also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or prices, and could lead to further withdrawals based on the weaker investment performance.
An adverse change in market conditions in particular segments of the economy, such as a sudden and severe downturn in oil and gas prices or an increase in commodity prices, severe declines in commercial real estate values, or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorgan Chase whose operations or financial condition are directly or indirectly dependent on the health or stability of those market segments or economic sectors, as well as clients that are engaged in related businesses. JPMorgan Chase could incur credit losses on its loans and other commitments to clients that operate in, or are dependent on, any sector of the economy that is or comes under stress.
An economic downturn or sustained changes in consumer behavior that results in shifts in consumer and business spending could also have a negative impact on certain of JPMorgan Chase's wholesale clients, and thereby diminish JPMorgan Chase's earnings from its wholesale operations. For example, the businesses of certain of JPMorgan Chase's wholesale clients are dependent on consistent streams of rental income from commercial real estate properties, including offices, which are owned or being built by those clients. Sustained adverse economic conditions or hybrid work models could result in reductions in the rental cash flows that owners or developers receive from their tenants which, in turn, could depress the values of the properties, impair the ability of borrowers to service or refinance their commercial real estate loans and lead to an increase in foreclosures. These consequences could result in JPMorgan Chase experiencing increases in the allowance for credit losses, higher delinquencies, defaults and charge-offs within its commercial real estate loan portfolio and
incurring higher costs for servicing a larger volume of delinquent loans in that portfolio. An increase in foreclosures could result in higher operational risk associated with JPMorgan Chase owning and managing real property, and any inadequacy in governance or control over the foreclosed properties could result in regulatory scrutiny and reputational harm.
Changes in interest rates and credit spreads can adversely affect JPMorgan Chase's earnings, its liquidity or its capital levels.
When interest rates are high or increasing, JPMorgan Chase can generally be expected to earn higher net interest income. However, higher interest rates can also lead to:
•fewer originations of commercial and residential real estate loans
•losses on underwriting exposures or incremental client-specific downgrades, or increases in the allowance for credit losses and net charge-offs due to higher financing costs for clients
•the loss of deposits, particularly if customers withdraw deposits because they believe that interest rates offered by JPMorgan Chase are lower than those of competitors or if JPMorgan Chase makes incorrect assumptions about depositor behavior
•losses on available-for-sale ("AFS") securities held in the investment securities portfolio
•lower net interest income if central banks introduce interest rate increases more quickly than anticipated and this results in a misalignment in the pricing of short-term and long-term borrowings
•less liquidity in the financial markets, and
•higher funding costs.
All of these outcomes could adversely affect JPMorgan Chase's earnings or its liquidity and capital levels, and any negative outcomes could be more severe in a prolonged period of high interest rates. Higher interest rates can also negatively affect the payment performance on loans within JPMorgan Chase's consumer and wholesale loan portfolios that are linked to variable interest rates. If borrowers of variable rate loans are unable to afford higher interest payments, those borrowers may reduce or stop making payments, thereby causing JPMorgan Chase to incur losses and increased operational costs related to servicing a higher volume of delinquent loans.
On the other hand, a low or negative interest rate environment may cause:
•net interest margins to be compressed, which could reduce the amounts that JPMorgan Chase earns on its investment securities portfolio to the extent that it is unable to reinvest contemporaneously in higher-yielding instruments
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| 1 | 16 |
|
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
| | |
|---:|---:|
| 1 | 9 |
,
Part I
•provoke retaliatory countermeasures by other countries and otherwise heighten tensions in regulatory, enforcement or diplomatic relations
•increase concerns about whether the U.S. government will be funded, and its outstanding debt serviced, at any particular time
•lead to the withdrawal of government support for agencies and enterprises such as the U.S. Federal National Mortgage Association and the U.S. Federal Home Loan Mortgage Corporation (together, the "U.S. GSEs")
•result in periodic shutdowns of the U.S. government or governments in other countries
•increase investor reliance on actions by the Federal Reserve or other central banks, or influence investor perceptions concerning government support of sectors of the economy or the economy as a whole
•adversely affect the financial condition or credit ratings of clients and counterparties with which JPMorgan Chase does business, or
•cause JPMorgan Chase to refrain from engaging in business opportunities that it might otherwise pursue.
These factors could lead to:
•slower growth rates, rising inflation or recession
•greater market volatility
•a contraction of available credit and the widening of credit spreads
•erosion of adequate risk premium on certain financial assets
•diminished investor and consumer confidence
•lower investments in a particular country or sector of the economy
•large-scale sales of government debt and other debt and equity securities in the U.S. and other countries
•reduced commercial activity among trading partners
•the potential for a currency redenomination by a particular country
•the possible departure of a country from, or the dissolution or formation of, a political or economic alliance or treaty
•potential expropriation or nationalization of assets, including client assets, or
•other market dislocations, including unfavorable economic conditions that could spread from a particular country or region to other countries or regions.
Any of these potential outcomes could cause JPMorgan Chase to suffer losses on its market-making positions or in its investment portfolio, reduce its liquidity and capital levels, increase the allowance for credit losses or lead to higher net charge-offs, hamper its ability to deliver
products and services to its clients and customers, and weaken its results of operations and financial condition or credit rating.
JPMorgan Chase's business and results of operations may also be adversely affected by actions or initiatives by national, state or local governmental authorities that:
•seek to discourage financial institutions from doing business with companies engaged in certain industries, or conversely, to penalize financial institutions that elect not to do business with such companies, or
•mandate specific business practices that companies operating in the relevant jurisdiction must adopt.
Because governmental policies in one jurisdiction may differ or conflict with those in other jurisdictions, JPMorgan Chase may face negative consequences regardless of the course of action it takes or elects not to take, including:
•restrictions or prohibitions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction
•the threat of enforcement actions, including under antitrust or other anti-competition laws, rules and regulations, and
•harm to its reputation arising from public criticism, including from politicians, activists and other stakeholders.
JPMorgan Chase has been prohibited from engaging in certain business activities in specific jurisdictions as a result of these types of governmental actions, and there is no assurance that it will not face similar restrictions on its business and operations in the future.
In addition, JPMorgan Chase's relationships or ability to transact with clients and customers, and with governmental or regulatory bodies in jurisdictions in which JPMorgan Chase does business, could be adversely affected if its decisions with respect to doing business with companies in certain sensitive industries are perceived to harm those companies or to align with particular political viewpoints. Furthermore, JPMorgan Chase's participation in or association with certain environmental and social industry groups or initiatives could be viewed by activists or governmental authorities as boycotting or other discriminatory business behavior.
Market
Economic and market events and conditions can materially affect JPMorgan Chase's businesses and investment and market-making positions.
JPMorgan Chase's results of operations can be negatively affected by adverse changes in any of the following:
•investor, consumer and business sentiment
•events that reduce confidence in the financial markets
•inflation, deflation or recession
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|---:|---:|
| 1 | 14 |
, •high unemployment or, conversely, a tightening labor market
•the availability and cost of capital, liquidity and credit
•levels and volatility of interest rates, credit spreads and market prices for currencies, equities and commodities, as well as the duration of any such changes
•the economic effects of an outbreak or escalation of hostilities, terrorism or other geopolitical instabilities, cyber attacks, climate change, natural disasters, severe weather conditions, health emergencies, the spread of infectious diseases, epidemics or pandemics or other extraordinary events beyond JPMorgan Chase's control, and
•the strength of the U.S. and global economies.
All of these are affected by global economic, market and political events and conditions, as well as regulatory restrictions.
In addition, JPMorgan Chase's investment portfolio and market-making businesses can suffer losses due to unanticipated market events, including:
•severe declines in asset values
•unexpected credit events
•unforeseen events or conditions that may cause previously uncorrelated factors to become correlated (and vice versa)
•the inability to effectively hedge risks related to market-making and investment portfolio positions, or
•other market risks that may not have been appropriately taken into account in the development, structuring or pricing of a financial instrument.
If JPMorgan Chase experiences significant losses in its investment portfolio or from market-making activities, this could reduce JPMorgan Chase's profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses.
JPMorgan Chase's consumer businesses can be negatively affected by adverse economic conditions and governmental policies.
JPMorgan Chase's consumer businesses are particularly affected by U.S. and global economic conditions, including:
•personal and household income distribution
•unemployment or underemployment
•prolonged periods of exceptionally high or low interest rates
•changes in the value of collateral such as residential real estate and vehicles
•changes in housing prices
•the level of inflation and its effect on prices for goods and services
•consumer and small business confidence levels, and
•changes in consumer spending or in the level of consumer debt.
Heightened levels of unemployment or underemployment that result in reduced personal and household income could negatively affect consumer credit performance to the extent that consumers are less able to service their debts. In addition, sustained low growth, low or negative interest rates, inflationary pressures or recessionary conditions could diminish customer demand for the products and services offered by JPMorgan Chase's consumer businesses.
Adverse economic conditions could also lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorgan Chase's earnings. These consequences could be significantly worse in certain geographies, including where declining industrial or manufacturing activity has resulted in or could result in higher levels of unemployment, or where high levels of consumer debt, such as outstanding student loans, could impair the ability of customers to pay their other consumer loan obligations.
JPMorgan Chase's earnings from its consumer businesses could also be adversely affected by governmental policies and actions that affect consumers, including:
•policies and initiatives relating to medical insurance, education, immigration, employment status and housing
•laws, rules and regulations relating specifically to the financial services industry, such as limitations on late payment, overdraft and interchange fees, and
•policies aimed at the economy more broadly, such as higher taxes and increased regulation which could result in reductions in consumer disposable income.
Unfavorable market and economic conditions can have an adverse effect on JPMorgan Chase's wholesale businesses.
In JPMorgan Chase's wholesale businesses, market and economic factors can affect the volume of transactions that JPMorgan Chase executes for its clients or for which it advises clients, and, therefore, the revenue that JPMorgan Chase receives from those transactions. These factors can also influence the willingness of other financial institutions and investors to participate in capital markets transactions that JPMorgan Chase manages, such as loan syndications or securities underwriting. Furthermore, if a significant and sustained deterioration in market conditions were to occur, the profitability of JPMorgan Chase's businesses engaged in capital markets activities, including loan syndication, securities underwriting and leveraged lending activities, could be reduced to the extent that those businesses:
•earn less fee revenue due to lower transaction volumes, including when clients are unwilling or unable to
| | |
|---:|---:|
| 1 | 15 |
,
Part I
refinance their outstanding debt obligations in unfavorable market conditions, or
•dispose of portions of credit commitments at a loss, or hold larger residual positions in credit commitments that cannot be sold at favorable prices.
The fees that JPMorgan Chase earns from managing client assets or holding assets under custody for clients could be diminished by declining asset values or other adverse macroeconomic conditions. For example, higher interest rates or a downturn in financial markets could affect the valuation of client assets that JPMorgan Chase manages or holds under custody, which, in turn, could affect JPMorgan Chase's revenue from fees that are based on the amount of assets under management or custody. Similarly, adverse macroeconomic or market conditions could prompt outflows from JPMorgan Chase funds or accounts, or cause clients to invest in products that generate lower revenue. Substantial and unexpected withdrawals from a JPMorgan Chase fund can also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or prices, and could lead to further withdrawals based on the weaker investment performance.
An adverse change in market conditions in particular segments of the economy, such as a sudden and severe downturn in oil and gas prices or an increase in commodity prices, severe declines in commercial real estate values, or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorgan Chase whose operations or financial condition are directly or indirectly dependent on the health or stability of those market segments or economic sectors, as well as clients that are engaged in related businesses. JPMorgan Chase could incur credit losses on its loans and other commitments to clients that operate in, or are dependent on, any sector of the economy that is or comes under stress.
An economic downturn or sustained changes in consumer behavior that results in shifts in consumer and business spending could also have a negative impact on certain of JPMorgan Chase's wholesale clients, and thereby diminish JPMorgan Chase's earnings from its wholesale operations. For example, the businesses of certain of JPMorgan Chase's wholesale clients are dependent on consistent streams of rental income from commercial real estate properties, including offices, which are owned or being built by those clients. Sustained adverse economic conditions or hybrid work models could result in reductions in the rental cash flows that owners or developers receive from their tenants which, in turn, could depress the values of the properties, impair the ability of borrowers to service or refinance their commercial real estate loans and lead to an increase in foreclosures. These consequences could result in JPMorgan Chase experiencing increases in the allowance for credit losses, higher delinquencies, defaults and charge-offs within its commercial real estate loan portfolio and
incurring higher costs for servicing a larger volume of delinquent loans in that portfolio. An increase in foreclosures could result in higher operational risk associated with JPMorgan Chase owning and managing real property, and any inadequacy in governance or control over the foreclosed properties could result in regulatory scrutiny and reputational harm.
Changes in interest rates and credit spreads can adversely affect JPMorgan Chase's earnings, its liquidity or its capital levels.
When interest rates are high or increasing, JPMorgan Chase can generally be expected to earn higher net interest income. However, higher interest rates can also lead to:
•fewer originations of commercial and residential real estate loans
•losses on underwriting exposures or incremental client-specific downgrades, or increases in the allowance for credit losses and net charge-offs due to higher financing costs for clients
•the loss of deposits, particularly if customers withdraw deposits because they believe that interest rates offered by JPMorgan Chase are lower than those of competitors or if JPMorgan Chase makes incorrect assumptions about depositor behavior
•losses on available-for-sale ("AFS") securities held in the investment securities portfolio
•lower net interest income if central banks introduce interest rate increases more quickly than anticipated and this results in a misalignment in the pricing of short-term and long-term borrowings
•less liquidity in the financial markets, and
•higher funding costs.
All of these outcomes could adversely affect JPMorgan Chase's earnings or its liquidity and capital levels, and any negative outcomes could be more severe in a prolonged period of high interest rates. Higher interest rates can also negatively affect the payment performance on loans within JPMorgan Chase's consumer and wholesale loan portfolios that are linked to variable interest rates. If borrowers of variable rate loans are unable to afford higher interest payments, those borrowers may reduce or stop making payments, thereby causing JPMorgan Chase to incur losses and increased operational costs related to servicing a higher volume of delinquent loans.
On the other hand, a low or negative interest rate environment may cause:
•net interest margins to be compressed, which could reduce the amounts that JPMorgan Chase earns on its investment securities portfolio to the extent that it is unable to reinvest contemporaneously in higher-yielding instruments
| | |
|---:|---:|
| 1 | 16 |
|
JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 14:
Part I
•provoke retaliatory countermeasures by other countries and otherwise heighten tensions in regulatory, enforcement or diplomatic relations
•increase concerns about whether the U.S. government will be funded, and its outstanding debt serviced, at any particular time
•lead to the withdrawal of government support for agencies and enterprises such as the U.S. Federal National Mortgage Association and the U.S. Federal Home Loan Mortgage Corporation (together, the "U.S. GSEs")
•result in periodic shutdowns of the U.S. government or governments in other countries
•increase investor reliance on actions by the Federal Reserve or other central banks, or influence investor perceptions concerning government support of sectors of the economy or the economy as a whole
•adversely affect the financial condition or credit ratings of clients and counterparties with which JPMorgan Chase does business, or
•cause JPMorgan Chase to refrain from engaging in business opportunities that it might otherwise pursue.
These factors could lead to:
•slower growth rates, rising inflation or recession
•greater market volatility
•a contraction of available credit and the widening of credit spreads
•erosion of adequate risk premium on certain financial assets
•diminished investor and consumer confidence
•lower investments in a particular country or sector of the economy
•large-scale sales of government debt and other debt and equity securities in the U.S. and other countries
•reduced commercial activity among trading partners
•the potential for a currency redenomination by a particular country
•the possible departure of a country from, or the dissolution or formation of, a political or economic alliance or treaty
•potential expropriation or nationalization of assets, including client assets, or
•other market dislocations, including unfavorable economic conditions that could spread from a particular country or region to other countries or regions.
Any of these potential outcomes could cause JPMorgan Chase to suffer losses on its market-making positions or in its investment portfolio, reduce its liquidity and capital levels, increase the allowance for credit losses or lead to higher net charge-offs, hamper its ability to deliver
products and services to its clients and customers, and weaken its results of operations and financial condition or credit rating.
JPMorgan Chase's business and results of operations may also be adversely affected by actions or initiatives by national, state or local governmental authorities that:
•seek to discourage financial institutions from doing business with companies engaged in certain industries, or conversely, to penalize financial institutions that elect not to do business with such companies, or
•mandate specific business practices that companies operating in the relevant jurisdiction must adopt.
Because governmental policies in one jurisdiction may differ or conflict with those in other jurisdictions, JPMorgan Chase may face negative consequences regardless of the course of action it takes or elects not to take, including:
•restrictions or prohibitions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction
•the threat of enforcement actions, including under antitrust or other anti-competition laws, rules and regulations, and
•harm to its reputation arising from public criticism, including from politicians, activists and other stakeholders.
JPMorgan Chase has been prohibited from engaging in certain business activities in specific jurisdictions as a result of these types of governmental actions, and there is no assurance that it will not face similar restrictions on its business and operations in the future.
In addition, JPMorgan Chase's relationships or ability to transact with clients and customers, and with governmental or regulatory bodies in jurisdictions in which JPMorgan Chase does business, could be adversely affected if its decisions with respect to doing business with companies in certain sensitive industries are perceived to harm those companies or to align with particular political viewpoints. Furthermore, JPMorgan Chase's participation in or association with certain environmental and social industry groups or initiatives could be viewed by activists or governmental authorities as boycotting or other discriminatory business behavior.
Market
Economic and market events and conditions can materially affect JPMorgan Chase's businesses and investment and market-making positions.
JPMorgan Chase's results of operations can be negatively affected by adverse changes in any of the following:
•investor, consumer and business sentiment
•events that reduce confidence in the financial markets
•inflation, deflation or recession
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">14</td><td colspan="3"></td><td colspan="3"></td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 15: •high unemployment or, conversely, a tightening labor market
•the availability and cost of capital, liquidity and credit
•levels and volatility of interest rates, credit spreads and market prices for currencies, equities and commodities, as well as the duration of any such changes
•the economic effects of an outbreak or escalation of hostilities, terrorism or other geopolitical instabilities, cyber attacks, climate change, natural disasters, severe weather conditions, health emergencies, the spread of infectious diseases, epidemics or pandemics or other extraordinary events beyond JPMorgan Chase's control, and
•the strength of the U.S. and global economies.
All of these are affected by global economic, market and political events and conditions, as well as regulatory restrictions.
In addition, JPMorgan Chase's investment portfolio and market-making businesses can suffer losses due to unanticipated market events, including:
•severe declines in asset values
•unexpected credit events
•unforeseen events or conditions that may cause previously uncorrelated factors to become correlated (and vice versa)
•the inability to effectively hedge risks related to market-making and investment portfolio positions, or
•other market risks that may not have been appropriately taken into account in the development, structuring or pricing of a financial instrument.
If JPMorgan Chase experiences significant losses in its investment portfolio or from market-making activities, this could reduce JPMorgan Chase's profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses.
JPMorgan Chase's consumer businesses can be negatively affected by adverse economic conditions and governmental policies.
JPMorgan Chase's consumer businesses are particularly affected by U.S. and global economic conditions, including:
•personal and household income distribution
•unemployment or underemployment
•prolonged periods of exceptionally high or low interest rates
•changes in the value of collateral such as residential real estate and vehicles
•changes in housing prices
•the level of inflation and its effect on prices for goods and services
•consumer and small business confidence levels, and
•changes in consumer spending or in the level of consumer debt.
Heightened levels of unemployment or underemployment that result in reduced personal and household income could negatively affect consumer credit performance to the extent that consumers are less able to service their debts. In addition, sustained low growth, low or negative interest rates, inflationary pressures or recessionary conditions could diminish customer demand for the products and services offered by JPMorgan Chase's consumer businesses.
Adverse economic conditions could also lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorgan Chase's earnings. These consequences could be significantly worse in certain geographies, including where declining industrial or manufacturing activity has resulted in or could result in higher levels of unemployment, or where high levels of consumer debt, such as outstanding student loans, could impair the ability of customers to pay their other consumer loan obligations.
JPMorgan Chase's earnings from its consumer businesses could also be adversely affected by governmental policies and actions that affect consumers, including:
•policies and initiatives relating to medical insurance, education, immigration, employment status and housing
•laws, rules and regulations relating specifically to the financial services industry, such as limitations on late payment, overdraft and interchange fees, and
•policies aimed at the economy more broadly, such as higher taxes and increased regulation which could result in reductions in consumer disposable income.
Unfavorable market and economic conditions can have an adverse effect on JPMorgan Chase's wholesale businesses.
In JPMorgan Chase's wholesale businesses, market and economic factors can affect the volume of transactions that JPMorgan Chase executes for its clients or for which it advises clients, and, therefore, the revenue that JPMorgan Chase receives from those transactions. These factors can also influence the willingness of other financial institutions and investors to participate in capital markets transactions that JPMorgan Chase manages, such as loan syndications or securities underwriting. Furthermore, if a significant and sustained deterioration in market conditions were to occur, the profitability of JPMorgan Chase's businesses engaged in capital markets activities, including loan syndication, securities underwriting and leveraged lending activities, could be reduced to the extent that those businesses:
•earn less fee revenue due to lower transaction volumes, including when clients are unwilling or unable to
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">15</td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 16:
Part I
refinance their outstanding debt obligations in unfavorable market conditions, or
•dispose of portions of credit commitments at a loss, or hold larger residual positions in credit commitments that cannot be sold at favorable prices.
The fees that JPMorgan Chase earns from managing client assets or holding assets under custody for clients could be diminished by declining asset values or other adverse macroeconomic conditions. For example, higher interest rates or a downturn in financial markets could affect the valuation of client assets that JPMorgan Chase manages or holds under custody, which, in turn, could affect JPMorgan Chase's revenue from fees that are based on the amount of assets under management or custody. Similarly, adverse macroeconomic or market conditions could prompt outflows from JPMorgan Chase funds or accounts, or cause clients to invest in products that generate lower revenue. Substantial and unexpected withdrawals from a JPMorgan Chase fund can also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or prices, and could lead to further withdrawals based on the weaker investment performance.
An adverse change in market conditions in particular segments of the economy, such as a sudden and severe downturn in oil and gas prices or an increase in commodity prices, severe declines in commercial real estate values, or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorgan Chase whose operations or financial condition are directly or indirectly dependent on the health or stability of those market segments or economic sectors, as well as clients that are engaged in related businesses. JPMorgan Chase could incur credit losses on its loans and other commitments to clients that operate in, or are dependent on, any sector of the economy that is or comes under stress.
An economic downturn or sustained changes in consumer behavior that results in shifts in consumer and business spending could also have a negative impact on certain of JPMorgan Chase's wholesale clients, and thereby diminish JPMorgan Chase's earnings from its wholesale operations. For example, the businesses of certain of JPMorgan Chase's wholesale clients are dependent on consistent streams of rental income from commercial real estate properties, including offices, which are owned or being built by those clients. Sustained adverse economic conditions or hybrid work models could result in reductions in the rental cash flows that owners or developers receive from their tenants which, in turn, could depress the values of the properties, impair the ability of borrowers to service or refinance their commercial real estate loans and lead to an increase in foreclosures. These consequences could result in JPMorgan Chase experiencing increases in the allowance for credit losses, higher delinquencies, defaults and charge-offs within its commercial real estate loan portfolio and
incurring higher costs for servicing a larger volume of delinquent loans in that portfolio. An increase in foreclosures could result in higher operational risk associated with JPMorgan Chase owning and managing real property, and any inadequacy in governance or control over the foreclosed properties could result in regulatory scrutiny and reputational harm.
Changes in interest rates and credit spreads can adversely affect JPMorgan Chase's earnings, its liquidity or its capital levels.
When interest rates are high or increasing, JPMorgan Chase can generally be expected to earn higher net interest income. However, higher interest rates can also lead to:
•fewer originations of commercial and residential real estate loans
•losses on underwriting exposures or incremental client-specific downgrades, or increases in the allowance for credit losses and net charge-offs due to higher financing costs for clients
•the loss of deposits, particularly if customers withdraw deposits because they believe that interest rates offered by JPMorgan Chase are lower than those of competitors or if JPMorgan Chase makes incorrect assumptions about depositor behavior
•losses on available-for-sale ("AFS") securities held in the investment securities portfolio
•lower net interest income if central banks introduce interest rate increases more quickly than anticipated and this results in a misalignment in the pricing of short-term and long-term borrowings
•less liquidity in the financial markets, and
•higher funding costs.
All of these outcomes could adversely affect JPMorgan Chase's earnings or its liquidity and capital levels, and any negative outcomes could be more severe in a prolonged period of high interest rates. Higher interest rates can also negatively affect the payment performance on loans within JPMorgan Chase's consumer and wholesale loan portfolios that are linked to variable interest rates. If borrowers of variable rate loans are unable to afford higher interest payments, those borrowers may reduce or stop making payments, thereby causing JPMorgan Chase to incur losses and increased operational costs related to servicing a higher volume of delinquent loans.
On the other hand, a low or negative interest rate environment may cause:
•net interest margins to be compressed, which could reduce the amounts that JPMorgan Chase earns on its investment securities portfolio to the extent that it is unable to reinvest contemporaneously in higher-yielding instruments
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">16</td><td colspan="3"></td><td colspan="3"></td></tr></table>
|
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>,
Part I
•provoke retaliatory countermeasures by other countries and otherwise heighten tensions in regulatory, enforcement or diplomatic relations
•increase concerns about whether the U.S. government will be funded, and its outstanding debt serviced, at any particular time
•lead to the withdrawal of government support for agencies and enterprises such as the U.S. Federal National Mortgage Association and the U.S. Federal Home Loan Mortgage Corporation (together, the "U.S. GSEs")
•result in periodic shutdowns of the U.S. government or governments in other countries
•increase investor reliance on actions by the Federal Reserve or other central banks, or influence investor perceptions concerning government support of sectors of the economy or the economy as a whole
•adversely affect the financial condition or credit ratings of clients and counterparties with which JPMorgan Chase does business, or
•cause JPMorgan Chase to refrain from engaging in business opportunities that it might otherwise pursue.
These factors could lead to:
•slower growth rates, rising inflation or recession
•greater market volatility
•a contraction of available credit and the widening of credit spreads
•erosion of adequate risk premium on certain financial assets
•diminished investor and consumer confidence
•lower investments in a particular country or sector of the economy
•large-scale sales of government debt and other debt and equity securities in the U.S. and other countries
•reduced commercial activity among trading partners
•the potential for a currency redenomination by a particular country
•the possible departure of a country from, or the dissolution or formation of, a political or economic alliance or treaty
•potential expropriation or nationalization of assets, including client assets, or
•other market dislocations, including unfavorable economic conditions that could spread from a particular country or region to other countries or regions.
Any of these potential outcomes could cause JPMorgan Chase to suffer losses on its market-making positions or in its investment portfolio, reduce its liquidity and capital levels, increase the allowance for credit losses or lead to higher net charge-offs, hamper its ability to deliver
products and services to its clients and customers, and weaken its results of operations and financial condition or credit rating.
JPMorgan Chase's business and results of operations may also be adversely affected by actions or initiatives by national, state or local governmental authorities that:
•seek to discourage financial institutions from doing business with companies engaged in certain industries, or conversely, to penalize financial institutions that elect not to do business with such companies, or
•mandate specific business practices that companies operating in the relevant jurisdiction must adopt.
Because governmental policies in one jurisdiction may differ or conflict with those in other jurisdictions, JPMorgan Chase may face negative consequences regardless of the course of action it takes or elects not to take, including:
•restrictions or prohibitions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction
•the threat of enforcement actions, including under antitrust or other anti-competition laws, rules and regulations, and
•harm to its reputation arising from public criticism, including from politicians, activists and other stakeholders.
JPMorgan Chase has been prohibited from engaging in certain business activities in specific jurisdictions as a result of these types of governmental actions, and there is no assurance that it will not face similar restrictions on its business and operations in the future.
In addition, JPMorgan Chase's relationships or ability to transact with clients and customers, and with governmental or regulatory bodies in jurisdictions in which JPMorgan Chase does business, could be adversely affected if its decisions with respect to doing business with companies in certain sensitive industries are perceived to harm those companies or to align with particular political viewpoints. Furthermore, JPMorgan Chase's participation in or association with certain environmental and social industry groups or initiatives could be viewed by activists or governmental authorities as boycotting or other discriminatory business behavior.
Market
Economic and market events and conditions can materially affect JPMorgan Chase's businesses and investment and market-making positions.
JPMorgan Chase's results of operations can be negatively affected by adverse changes in any of the following:
•investor, consumer and business sentiment
•events that reduce confidence in the financial markets
•inflation, deflation or recession
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">14</td><td colspan="3"></td><td colspan="3"></td></tr></table>, •high unemployment or, conversely, a tightening labor market
•the availability and cost of capital, liquidity and credit
•levels and volatility of interest rates, credit spreads and market prices for currencies, equities and commodities, as well as the duration of any such changes
•the economic effects of an outbreak or escalation of hostilities, terrorism or other geopolitical instabilities, cyber attacks, climate change, natural disasters, severe weather conditions, health emergencies, the spread of infectious diseases, epidemics or pandemics or other extraordinary events beyond JPMorgan Chase's control, and
•the strength of the U.S. and global economies.
All of these are affected by global economic, market and political events and conditions, as well as regulatory restrictions.
In addition, JPMorgan Chase's investment portfolio and market-making businesses can suffer losses due to unanticipated market events, including:
•severe declines in asset values
•unexpected credit events
•unforeseen events or conditions that may cause previously uncorrelated factors to become correlated (and vice versa)
•the inability to effectively hedge risks related to market-making and investment portfolio positions, or
•other market risks that may not have been appropriately taken into account in the development, structuring or pricing of a financial instrument.
If JPMorgan Chase experiences significant losses in its investment portfolio or from market-making activities, this could reduce JPMorgan Chase's profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses.
JPMorgan Chase's consumer businesses can be negatively affected by adverse economic conditions and governmental policies.
JPMorgan Chase's consumer businesses are particularly affected by U.S. and global economic conditions, including:
•personal and household income distribution
•unemployment or underemployment
•prolonged periods of exceptionally high or low interest rates
•changes in the value of collateral such as residential real estate and vehicles
•changes in housing prices
•the level of inflation and its effect on prices for goods and services
•consumer and small business confidence levels, and
•changes in consumer spending or in the level of consumer debt.
Heightened levels of unemployment or underemployment that result in reduced personal and household income could negatively affect consumer credit performance to the extent that consumers are less able to service their debts. In addition, sustained low growth, low or negative interest rates, inflationary pressures or recessionary conditions could diminish customer demand for the products and services offered by JPMorgan Chase's consumer businesses.
Adverse economic conditions could also lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorgan Chase's earnings. These consequences could be significantly worse in certain geographies, including where declining industrial or manufacturing activity has resulted in or could result in higher levels of unemployment, or where high levels of consumer debt, such as outstanding student loans, could impair the ability of customers to pay their other consumer loan obligations.
JPMorgan Chase's earnings from its consumer businesses could also be adversely affected by governmental policies and actions that affect consumers, including:
•policies and initiatives relating to medical insurance, education, immigration, employment status and housing
•laws, rules and regulations relating specifically to the financial services industry, such as limitations on late payment, overdraft and interchange fees, and
•policies aimed at the economy more broadly, such as higher taxes and increased regulation which could result in reductions in consumer disposable income.
Unfavorable market and economic conditions can have an adverse effect on JPMorgan Chase's wholesale businesses.
In JPMorgan Chase's wholesale businesses, market and economic factors can affect the volume of transactions that JPMorgan Chase executes for its clients or for which it advises clients, and, therefore, the revenue that JPMorgan Chase receives from those transactions. These factors can also influence the willingness of other financial institutions and investors to participate in capital markets transactions that JPMorgan Chase manages, such as loan syndications or securities underwriting. Furthermore, if a significant and sustained deterioration in market conditions were to occur, the profitability of JPMorgan Chase's businesses engaged in capital markets activities, including loan syndication, securities underwriting and leveraged lending activities, could be reduced to the extent that those businesses:
•earn less fee revenue due to lower transaction volumes, including when clients are unwilling or unable to
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">15</td></tr></table>,
Part I
refinance their outstanding debt obligations in unfavorable market conditions, or
•dispose of portions of credit commitments at a loss, or hold larger residual positions in credit commitments that cannot be sold at favorable prices.
The fees that JPMorgan Chase earns from managing client assets or holding assets under custody for clients could be diminished by declining asset values or other adverse macroeconomic conditions. For example, higher interest rates or a downturn in financial markets could affect the valuation of client assets that JPMorgan Chase manages or holds under custody, which, in turn, could affect JPMorgan Chase's revenue from fees that are based on the amount of assets under management or custody. Similarly, adverse macroeconomic or market conditions could prompt outflows from JPMorgan Chase funds or accounts, or cause clients to invest in products that generate lower revenue. Substantial and unexpected withdrawals from a JPMorgan Chase fund can also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or prices, and could lead to further withdrawals based on the weaker investment performance.
An adverse change in market conditions in particular segments of the economy, such as a sudden and severe downturn in oil and gas prices or an increase in commodity prices, severe declines in commercial real estate values, or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorgan Chase whose operations or financial condition are directly or indirectly dependent on the health or stability of those market segments or economic sectors, as well as clients that are engaged in related businesses. JPMorgan Chase could incur credit losses on its loans and other commitments to clients that operate in, or are dependent on, any sector of the economy that is or comes under stress.
An economic downturn or sustained changes in consumer behavior that results in shifts in consumer and business spending could also have a negative impact on certain of JPMorgan Chase's wholesale clients, and thereby diminish JPMorgan Chase's earnings from its wholesale operations. For example, the businesses of certain of JPMorgan Chase's wholesale clients are dependent on consistent streams of rental income from commercial real estate properties, including offices, which are owned or being built by those clients. Sustained adverse economic conditions or hybrid work models could result in reductions in the rental cash flows that owners or developers receive from their tenants which, in turn, could depress the values of the properties, impair the ability of borrowers to service or refinance their commercial real estate loans and lead to an increase in foreclosures. These consequences could result in JPMorgan Chase experiencing increases in the allowance for credit losses, higher delinquencies, defaults and charge-offs within its commercial real estate loan portfolio and
incurring higher costs for servicing a larger volume of delinquent loans in that portfolio. An increase in foreclosures could result in higher operational risk associated with JPMorgan Chase owning and managing real property, and any inadequacy in governance or control over the foreclosed properties could result in regulatory scrutiny and reputational harm.
Changes in interest rates and credit spreads can adversely affect JPMorgan Chase's earnings, its liquidity or its capital levels.
When interest rates are high or increasing, JPMorgan Chase can generally be expected to earn higher net interest income. However, higher interest rates can also lead to:
•fewer originations of commercial and residential real estate loans
•losses on underwriting exposures or incremental client-specific downgrades, or increases in the allowance for credit losses and net charge-offs due to higher financing costs for clients
•the loss of deposits, particularly if customers withdraw deposits because they believe that interest rates offered by JPMorgan Chase are lower than those of competitors or if JPMorgan Chase makes incorrect assumptions about depositor behavior
•losses on available-for-sale ("AFS") securities held in the investment securities portfolio
•lower net interest income if central banks introduce interest rate increases more quickly than anticipated and this results in a misalignment in the pricing of short-term and long-term borrowings
•less liquidity in the financial markets, and
•higher funding costs.
All of these outcomes could adversely affect JPMorgan Chase's earnings or its liquidity and capital levels, and any negative outcomes could be more severe in a prolonged period of high interest rates. Higher interest rates can also negatively affect the payment performance on loans within JPMorgan Chase's consumer and wholesale loan portfolios that are linked to variable interest rates. If borrowers of variable rate loans are unable to afford higher interest payments, those borrowers may reduce or stop making payments, thereby causing JPMorgan Chase to incur losses and increased operational costs related to servicing a higher volume of delinquent loans.
On the other hand, a low or negative interest rate environment may cause:
•net interest margins to be compressed, which could reduce the amounts that JPMorgan Chase earns on its investment securities portfolio to the extent that it is unable to reinvest contemporaneously in higher-yielding instruments
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">16</td><td colspan="3"></td><td colspan="3"></td></tr></table>
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q_Ri020
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How could changes in regulatory policies affect the company's strategic goals?
|
Changes in regulatory policies could affect the company's strategic goals by imposing new compliance requirements, increasing operational costs, or restricting market access.
|
Risk
|
9, 10, 12
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0000019617-24-000225
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Item 1A. Risk Factors.
|
JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
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|---:|---:|
| 1 | 9 |
, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 10:
Part I
customers, shareholders, regulators and other stakeholders that could arise from employee misconduct, security breaches, inadequate risk management, compliance or operational failures, litigation and regulatory investigations, failure to satisfy expectations concerning environmental, social and governance concerns, failure to effectively manage conflicts of interest or to satisfy fiduciary obligations, or other factors that could damage JPMorgan Chase's reputation.
•Country risks, including potential impacts on JPMorgan Chase's businesses from an outbreak or escalation of hostilities between countries or within a country or region; and the potential adverse effects of local economic, political, regulatory and social factors on JPMorgan Chase's business and revenues in certain countries in which it operates.
•People risks, including the criticality of attracting and retaining qualified and diverse employees; and the potential adverse effects of unfavorable changes in immigration or travel policies on JPMorgan Chase's workforce.
•Legal risks, including those relating to litigation and regulatory and government investigations.
The above summary is subject in its entirety to the discussion of the risk factors set forth below.
Regulatory
JPMorgan Chase's businesses are highly regulated, and the laws, rules and regulations that apply to JPMorgan Chase have a significant impact on its business and operations.
JPMorgan Chase is a financial services firm with operations worldwide. JPMorgan Chase must comply with the laws, rules and regulations that apply to its operations in all of the jurisdictions around the world in which it does business, and financial services firms such as JPMorgan Chase are subject to extensive and constantly-evolving regulation and supervision.
The regulation and supervision of JPMorgan Chase significantly affects the way that it conducts its business and structures its operations, and JPMorgan Chase could be required to make changes to its business and operations in response to supervisory expectations or decisions or to new or changed laws, rules and regulations. These types of developments could result in JPMorgan Chase incurring additional costs or experiencing a reduction in revenues to comply with applicable laws, rules and regulations, which could reduce its profitability. Furthermore, JPMorgan Chase's entry into or acquisition of a new business or an increase in its principal investments may require JPMorgan Chase to comply with additional laws, rules, and regulations.
In response to new and existing laws, rules and regulations and expanded supervision, JPMorgan Chase has in the past been and could in the future be, required to:
•limit the products and services that it offers
•reduce the liquidity that it can provide through its market-making activities
•refrain from engaging in business opportunities that it might otherwise pursue
•pay higher taxes (including as part of any minimum global tax regime), assessments, levies or other governmental charges, including in connection with the resolution of tax examinations
•incur losses, including with respect to fraudulent transactions perpetrated against its customers
•dispose of certain assets, and do so at times or prices that are disadvantageous
•impose restrictions on certain business activities, or
•increase the prices that it charges for products and services, which could reduce the demand for them.
Any failure by JPMorgan Chase to comply with the laws, rules and regulations to which it is subject could result in:
•increased regulatory and supervisory scrutiny
•regulatory and governmental enforcement actions
•the imposition of fines, penalties or other sanctions
•increased exposure to litigation, or
•harm to its reputation.
Differences and inconsistencies in financial services regulation and supervision can negatively impact JPMorgan Chase's businesses, operations and financial results.
The content and application of laws, rules and regulations affecting financial services firms can vary according to factors such as the size of the firm, the jurisdiction in which it is organized or operates, and other criteria. For example:
•larger firms such as JPMorgan Chase are often subject to more stringent supervision, regulation and regulatory scrutiny
•financial technology companies and other non-traditional competitors may not be subject to banking regulation, or may be supervised by a national or state regulatory agency that does not have the same resources or regulatory priorities as the regulatory agencies which supervise more diversified financial services firms, or
•the financial services regulatory and supervisory framework in a particular jurisdiction may favor financial institutions that are based in that jurisdiction.
These types of differences in the regulatory and supervisory framework can result in JPMorgan Chase losing market share to competitors that are less regulated or not subject to regulation, especially with respect to unregulated financial products.
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|---:|---:|
| 1 | 10 |
, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 12:
Part I
•loss of clients, customers and business
•restrictions on offering certain products or services, and
•losing permission to operate certain businesses, either temporarily or permanently.
JPMorgan Chase expects that:
•it and other financial services firms will continue to be subject to heightened regulatory scrutiny and governmental investigations and enforcement actions
•governmental authorities will continue to require that financial institutions be penalized for actual or deemed violations of law with formal and punitive enforcement actions, including the imposition of significant monetary and other sanctions, rather than resolving these matters through informal supervisory actions; and
•governmental authorities will be more likely to pursue formal enforcement actions and resolutions against JPMorgan Chase to the extent that it has previously been subject to other governmental investigations or enforcement actions.
If JPMorgan Chase fails to meet the requirements of any resolution of a governmental investigation or enforcement action, or to maintain risk and control processes that meet the heightened standards and expectations of its regulators, it could be required to, among other things:
•enter into further resolutions of investigations or enforcement actions
•pay additional regulatory penalties or enter into judgments, or
•accept material regulatory restrictions on, or changes in the management of, its businesses.
In these circumstances, JPMorgan Chase could also become subject to other sanctions, or to prosecution or civil litigation with respect to the conduct that gave rise to an investigation or enforcement action. In addition, JPMorgan Chase can be subject to higher costs or requests for additional capital in connection with the resolution of governmental investigations and enforcement actions involving newly-acquired businesses, companies in which JPMorgan Chase has made principal investments, parties to joint ventures with JPMorgan Chase, and vendors with which JPMorgan Chase does business.
JPMorgan Chase's operations and financial results can be negatively impacted in jurisdictions with less predictable legal and regulatory frameworks.
JPMorgan Chase conducts existing and new business in certain countries, states, municipalities, territories and other jurisdictions in which the application of the rule of law is inconsistent or less predictable, including with respect to:
•the absence of a statutory or regulatory basis or guidance for engaging in specific types of business or transactions
•conflicting or ambiguous laws, rules and regulations, or the inconsistent application or interpretation of existing laws, rules and regulations
•uncertainty concerning the enforceability of intellectual property rights or contractual or other obligations
•difficulty in competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive
•the threat of regulatory investigations, civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and
•the termination of licenses required to operate in the local market or the suspension of business relationships with governmental bodies.
If the application of the laws, rules and regulations in any jurisdiction is susceptible to producing inconsistent or unexpected outcomes, this can create a more difficult environment in which JPMorgan Chase conducts its business and could negatively affect JPMorgan Chase's operations and reduce its earnings with respect to that jurisdiction. For example, conducting business could require JPMorgan Chase to devote significant additional resources to understanding, and monitoring changes in, local laws, rules and regulations, as well as structuring its operations to comply with local laws, rules and regulations and implementing and administering related internal policies and procedures.
There can be no assurance that JPMorgan Chase will always be successful in its efforts to fully understand and to conduct its business in compliance with the laws, rules and regulations of all of the jurisdictions in which it operates, and the risk of non-compliance can be greater in jurisdictions that have less predictable legal and regulatory frameworks.
Requirements for the orderly resolution of JPMorgan Chase could result in JPMorgan Chase having to restructure or reorganize its businesses and could increase its funding or operational costs or curtail its businesses.
JPMorgan Chase is required under Federal Reserve and FDIC rules to prepare and submit periodically to those agencies a detailed plan for rapid and orderly resolution in bankruptcy, without extraordinary government support, in the event of material financial distress or failure. The evaluation of JPMorgan Chase's resolution plan by these agencies may change, and the requirements for resolution plans may be modified from time to time. Any such determinations or modifications could result in JPMorgan Chase needing to make changes to its legal entity structure or to certain internal or external activities, which could increase its funding or operational costs, or hamper its ability to serve clients and customers.
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|---:|---:|
| 1 | 12 |
|
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
| | |
|---:|---:|
| 1 | 9 |
,
Part I
customers, shareholders, regulators and other stakeholders that could arise from employee misconduct, security breaches, inadequate risk management, compliance or operational failures, litigation and regulatory investigations, failure to satisfy expectations concerning environmental, social and governance concerns, failure to effectively manage conflicts of interest or to satisfy fiduciary obligations, or other factors that could damage JPMorgan Chase's reputation.
•Country risks, including potential impacts on JPMorgan Chase's businesses from an outbreak or escalation of hostilities between countries or within a country or region; and the potential adverse effects of local economic, political, regulatory and social factors on JPMorgan Chase's business and revenues in certain countries in which it operates.
•People risks, including the criticality of attracting and retaining qualified and diverse employees; and the potential adverse effects of unfavorable changes in immigration or travel policies on JPMorgan Chase's workforce.
•Legal risks, including those relating to litigation and regulatory and government investigations.
The above summary is subject in its entirety to the discussion of the risk factors set forth below.
Regulatory
JPMorgan Chase's businesses are highly regulated, and the laws, rules and regulations that apply to JPMorgan Chase have a significant impact on its business and operations.
JPMorgan Chase is a financial services firm with operations worldwide. JPMorgan Chase must comply with the laws, rules and regulations that apply to its operations in all of the jurisdictions around the world in which it does business, and financial services firms such as JPMorgan Chase are subject to extensive and constantly-evolving regulation and supervision.
The regulation and supervision of JPMorgan Chase significantly affects the way that it conducts its business and structures its operations, and JPMorgan Chase could be required to make changes to its business and operations in response to supervisory expectations or decisions or to new or changed laws, rules and regulations. These types of developments could result in JPMorgan Chase incurring additional costs or experiencing a reduction in revenues to comply with applicable laws, rules and regulations, which could reduce its profitability. Furthermore, JPMorgan Chase's entry into or acquisition of a new business or an increase in its principal investments may require JPMorgan Chase to comply with additional laws, rules, and regulations.
In response to new and existing laws, rules and regulations and expanded supervision, JPMorgan Chase has in the past been and could in the future be, required to:
•limit the products and services that it offers
•reduce the liquidity that it can provide through its market-making activities
•refrain from engaging in business opportunities that it might otherwise pursue
•pay higher taxes (including as part of any minimum global tax regime), assessments, levies or other governmental charges, including in connection with the resolution of tax examinations
•incur losses, including with respect to fraudulent transactions perpetrated against its customers
•dispose of certain assets, and do so at times or prices that are disadvantageous
•impose restrictions on certain business activities, or
•increase the prices that it charges for products and services, which could reduce the demand for them.
Any failure by JPMorgan Chase to comply with the laws, rules and regulations to which it is subject could result in:
•increased regulatory and supervisory scrutiny
•regulatory and governmental enforcement actions
•the imposition of fines, penalties or other sanctions
•increased exposure to litigation, or
•harm to its reputation.
Differences and inconsistencies in financial services regulation and supervision can negatively impact JPMorgan Chase's businesses, operations and financial results.
The content and application of laws, rules and regulations affecting financial services firms can vary according to factors such as the size of the firm, the jurisdiction in which it is organized or operates, and other criteria. For example:
•larger firms such as JPMorgan Chase are often subject to more stringent supervision, regulation and regulatory scrutiny
•financial technology companies and other non-traditional competitors may not be subject to banking regulation, or may be supervised by a national or state regulatory agency that does not have the same resources or regulatory priorities as the regulatory agencies which supervise more diversified financial services firms, or
•the financial services regulatory and supervisory framework in a particular jurisdiction may favor financial institutions that are based in that jurisdiction.
These types of differences in the regulatory and supervisory framework can result in JPMorgan Chase losing market share to competitors that are less regulated or not subject to regulation, especially with respect to unregulated financial products.
| | |
|---:|---:|
| 1 | 10 |
,
Part I
•loss of clients, customers and business
•restrictions on offering certain products or services, and
•losing permission to operate certain businesses, either temporarily or permanently.
JPMorgan Chase expects that:
•it and other financial services firms will continue to be subject to heightened regulatory scrutiny and governmental investigations and enforcement actions
•governmental authorities will continue to require that financial institutions be penalized for actual or deemed violations of law with formal and punitive enforcement actions, including the imposition of significant monetary and other sanctions, rather than resolving these matters through informal supervisory actions; and
•governmental authorities will be more likely to pursue formal enforcement actions and resolutions against JPMorgan Chase to the extent that it has previously been subject to other governmental investigations or enforcement actions.
If JPMorgan Chase fails to meet the requirements of any resolution of a governmental investigation or enforcement action, or to maintain risk and control processes that meet the heightened standards and expectations of its regulators, it could be required to, among other things:
•enter into further resolutions of investigations or enforcement actions
•pay additional regulatory penalties or enter into judgments, or
•accept material regulatory restrictions on, or changes in the management of, its businesses.
In these circumstances, JPMorgan Chase could also become subject to other sanctions, or to prosecution or civil litigation with respect to the conduct that gave rise to an investigation or enforcement action. In addition, JPMorgan Chase can be subject to higher costs or requests for additional capital in connection with the resolution of governmental investigations and enforcement actions involving newly-acquired businesses, companies in which JPMorgan Chase has made principal investments, parties to joint ventures with JPMorgan Chase, and vendors with which JPMorgan Chase does business.
JPMorgan Chase's operations and financial results can be negatively impacted in jurisdictions with less predictable legal and regulatory frameworks.
JPMorgan Chase conducts existing and new business in certain countries, states, municipalities, territories and other jurisdictions in which the application of the rule of law is inconsistent or less predictable, including with respect to:
•the absence of a statutory or regulatory basis or guidance for engaging in specific types of business or transactions
•conflicting or ambiguous laws, rules and regulations, or the inconsistent application or interpretation of existing laws, rules and regulations
•uncertainty concerning the enforceability of intellectual property rights or contractual or other obligations
•difficulty in competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive
•the threat of regulatory investigations, civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and
•the termination of licenses required to operate in the local market or the suspension of business relationships with governmental bodies.
If the application of the laws, rules and regulations in any jurisdiction is susceptible to producing inconsistent or unexpected outcomes, this can create a more difficult environment in which JPMorgan Chase conducts its business and could negatively affect JPMorgan Chase's operations and reduce its earnings with respect to that jurisdiction. For example, conducting business could require JPMorgan Chase to devote significant additional resources to understanding, and monitoring changes in, local laws, rules and regulations, as well as structuring its operations to comply with local laws, rules and regulations and implementing and administering related internal policies and procedures.
There can be no assurance that JPMorgan Chase will always be successful in its efforts to fully understand and to conduct its business in compliance with the laws, rules and regulations of all of the jurisdictions in which it operates, and the risk of non-compliance can be greater in jurisdictions that have less predictable legal and regulatory frameworks.
Requirements for the orderly resolution of JPMorgan Chase could result in JPMorgan Chase having to restructure or reorganize its businesses and could increase its funding or operational costs or curtail its businesses.
JPMorgan Chase is required under Federal Reserve and FDIC rules to prepare and submit periodically to those agencies a detailed plan for rapid and orderly resolution in bankruptcy, without extraordinary government support, in the event of material financial distress or failure. The evaluation of JPMorgan Chase's resolution plan by these agencies may change, and the requirements for resolution plans may be modified from time to time. Any such determinations or modifications could result in JPMorgan Chase needing to make changes to its legal entity structure or to certain internal or external activities, which could increase its funding or operational costs, or hamper its ability to serve clients and customers.
| | |
|---:|---:|
| 1 | 12 |
|
JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 9:
Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 10:
Part I
customers, shareholders, regulators and other stakeholders that could arise from employee misconduct, security breaches, inadequate risk management, compliance or operational failures, litigation and regulatory investigations, failure to satisfy expectations concerning environmental, social and governance concerns, failure to effectively manage conflicts of interest or to satisfy fiduciary obligations, or other factors that could damage JPMorgan Chase's reputation.
•Country risks, including potential impacts on JPMorgan Chase's businesses from an outbreak or escalation of hostilities between countries or within a country or region; and the potential adverse effects of local economic, political, regulatory and social factors on JPMorgan Chase's business and revenues in certain countries in which it operates.
•People risks, including the criticality of attracting and retaining qualified and diverse employees; and the potential adverse effects of unfavorable changes in immigration or travel policies on JPMorgan Chase's workforce.
•Legal risks, including those relating to litigation and regulatory and government investigations.
The above summary is subject in its entirety to the discussion of the risk factors set forth below.
Regulatory
JPMorgan Chase's businesses are highly regulated, and the laws, rules and regulations that apply to JPMorgan Chase have a significant impact on its business and operations.
JPMorgan Chase is a financial services firm with operations worldwide. JPMorgan Chase must comply with the laws, rules and regulations that apply to its operations in all of the jurisdictions around the world in which it does business, and financial services firms such as JPMorgan Chase are subject to extensive and constantly-evolving regulation and supervision.
The regulation and supervision of JPMorgan Chase significantly affects the way that it conducts its business and structures its operations, and JPMorgan Chase could be required to make changes to its business and operations in response to supervisory expectations or decisions or to new or changed laws, rules and regulations. These types of developments could result in JPMorgan Chase incurring additional costs or experiencing a reduction in revenues to comply with applicable laws, rules and regulations, which could reduce its profitability. Furthermore, JPMorgan Chase's entry into or acquisition of a new business or an increase in its principal investments may require JPMorgan Chase to comply with additional laws, rules, and regulations.
In response to new and existing laws, rules and regulations and expanded supervision, JPMorgan Chase has in the past been and could in the future be, required to:
•limit the products and services that it offers
•reduce the liquidity that it can provide through its market-making activities
•refrain from engaging in business opportunities that it might otherwise pursue
•pay higher taxes (including as part of any minimum global tax regime), assessments, levies or other governmental charges, including in connection with the resolution of tax examinations
•incur losses, including with respect to fraudulent transactions perpetrated against its customers
•dispose of certain assets, and do so at times or prices that are disadvantageous
•impose restrictions on certain business activities, or
•increase the prices that it charges for products and services, which could reduce the demand for them.
Any failure by JPMorgan Chase to comply with the laws, rules and regulations to which it is subject could result in:
•increased regulatory and supervisory scrutiny
•regulatory and governmental enforcement actions
•the imposition of fines, penalties or other sanctions
•increased exposure to litigation, or
•harm to its reputation.
Differences and inconsistencies in financial services regulation and supervision can negatively impact JPMorgan Chase's businesses, operations and financial results.
The content and application of laws, rules and regulations affecting financial services firms can vary according to factors such as the size of the firm, the jurisdiction in which it is organized or operates, and other criteria. For example:
•larger firms such as JPMorgan Chase are often subject to more stringent supervision, regulation and regulatory scrutiny
•financial technology companies and other non-traditional competitors may not be subject to banking regulation, or may be supervised by a national or state regulatory agency that does not have the same resources or regulatory priorities as the regulatory agencies which supervise more diversified financial services firms, or
•the financial services regulatory and supervisory framework in a particular jurisdiction may favor financial institutions that are based in that jurisdiction.
These types of differences in the regulatory and supervisory framework can result in JPMorgan Chase losing market share to competitors that are less regulated or not subject to regulation, especially with respect to unregulated financial products.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">10</td><td colspan="3"></td><td colspan="3"></td></tr></table>, JPMORGAN CHASE & CO 10-K form for the fiscal year ended 2023-12-31, page 12:
Part I
•loss of clients, customers and business
•restrictions on offering certain products or services, and
•losing permission to operate certain businesses, either temporarily or permanently.
JPMorgan Chase expects that:
•it and other financial services firms will continue to be subject to heightened regulatory scrutiny and governmental investigations and enforcement actions
•governmental authorities will continue to require that financial institutions be penalized for actual or deemed violations of law with formal and punitive enforcement actions, including the imposition of significant monetary and other sanctions, rather than resolving these matters through informal supervisory actions; and
•governmental authorities will be more likely to pursue formal enforcement actions and resolutions against JPMorgan Chase to the extent that it has previously been subject to other governmental investigations or enforcement actions.
If JPMorgan Chase fails to meet the requirements of any resolution of a governmental investigation or enforcement action, or to maintain risk and control processes that meet the heightened standards and expectations of its regulators, it could be required to, among other things:
•enter into further resolutions of investigations or enforcement actions
•pay additional regulatory penalties or enter into judgments, or
•accept material regulatory restrictions on, or changes in the management of, its businesses.
In these circumstances, JPMorgan Chase could also become subject to other sanctions, or to prosecution or civil litigation with respect to the conduct that gave rise to an investigation or enforcement action. In addition, JPMorgan Chase can be subject to higher costs or requests for additional capital in connection with the resolution of governmental investigations and enforcement actions involving newly-acquired businesses, companies in which JPMorgan Chase has made principal investments, parties to joint ventures with JPMorgan Chase, and vendors with which JPMorgan Chase does business.
JPMorgan Chase's operations and financial results can be negatively impacted in jurisdictions with less predictable legal and regulatory frameworks.
JPMorgan Chase conducts existing and new business in certain countries, states, municipalities, territories and other jurisdictions in which the application of the rule of law is inconsistent or less predictable, including with respect to:
•the absence of a statutory or regulatory basis or guidance for engaging in specific types of business or transactions
•conflicting or ambiguous laws, rules and regulations, or the inconsistent application or interpretation of existing laws, rules and regulations
•uncertainty concerning the enforceability of intellectual property rights or contractual or other obligations
•difficulty in competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive
•the threat of regulatory investigations, civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and
•the termination of licenses required to operate in the local market or the suspension of business relationships with governmental bodies.
If the application of the laws, rules and regulations in any jurisdiction is susceptible to producing inconsistent or unexpected outcomes, this can create a more difficult environment in which JPMorgan Chase conducts its business and could negatively affect JPMorgan Chase's operations and reduce its earnings with respect to that jurisdiction. For example, conducting business could require JPMorgan Chase to devote significant additional resources to understanding, and monitoring changes in, local laws, rules and regulations, as well as structuring its operations to comply with local laws, rules and regulations and implementing and administering related internal policies and procedures.
There can be no assurance that JPMorgan Chase will always be successful in its efforts to fully understand and to conduct its business in compliance with the laws, rules and regulations of all of the jurisdictions in which it operates, and the risk of non-compliance can be greater in jurisdictions that have less predictable legal and regulatory frameworks.
Requirements for the orderly resolution of JPMorgan Chase could result in JPMorgan Chase having to restructure or reorganize its businesses and could increase its funding or operational costs or curtail its businesses.
JPMorgan Chase is required under Federal Reserve and FDIC rules to prepare and submit periodically to those agencies a detailed plan for rapid and orderly resolution in bankruptcy, without extraordinary government support, in the event of material financial distress or failure. The evaluation of JPMorgan Chase's resolution plan by these agencies may change, and the requirements for resolution plans may be modified from time to time. Any such determinations or modifications could result in JPMorgan Chase needing to make changes to its legal entity structure or to certain internal or external activities, which could increase its funding or operational costs, or hamper its ability to serve clients and customers.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">12</td><td colspan="3"></td><td colspan="3"></td></tr></table>
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Item 1A. Risk Factors.
The following discussion sets forth the material risk factors that could affect JPMorgan Chase's financial condition and operations. Readers should not consider any descriptions of these factors to be a complete set of all potential risks that could affect the Firm. Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.
Summary
The principal risk factors that could adversely affect JPMorgan Chase's business, results of operations, financial condition, capital position, liquidity, competitive position or reputation include:
•Regulatory risks, including the impact that applicable laws, rules and regulations in the highly-regulated and supervised financial services industry, as well as changes to or in the application, interpretation or enforcement of those laws, rules and regulations, can have on JPMorgan Chase's business and operations, including JPMorgan Chase incurring additional costs associated with assessments, levies or other governmental charges; the ways in which differences in financial services regulation and supervision in different jurisdictions or with respect to certain competitors can negatively impact JPMorgan Chase's business; the penalties and collateral consequences, and higher compliance and operational costs, that JPMorgan Chase may incur when resolving a regulatory investigation; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can negatively impact JPMorgan Chase's operations and financial results; and the losses that security holders will absorb if JPMorgan Chase were to enter into a resolution.
•Political risks, including the potential negative effects on JPMorgan Chase's businesses due to economic uncertainty or instability caused by political developments.
•Market risks, including the effects that economic and market events and conditions, governmental policies, changes in interest rates and credit spreads, and market fluctuations can have on JPMorgan Chase's consumer and wholesale businesses and its investment and market-making positions and on JPMorgan Chase's earnings and its liquidity and capital levels.
•Credit risks, including potential negative effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties; the potential for losses due to declines in the value of collateral in stressed market conditions; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.
•Liquidity risks, including the risk that JPMorgan Chase's liquidity could be impaired by market-wide illiquidity or disruption, unforeseen liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorgan Chase; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries; and the potential adverse effects that any downgrade in any of JPMorgan Chase's credit ratings may have on its liquidity and cost of funding.
•Capital risks, including the risk that any failure by or inability of JPMorgan Chase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorgan Chase's ability to distribute capital to shareholders or to support its business activities.
•Operational risks, including risks associated with JPMorgan Chase's dependence on its operational systems, its ability to maintain appropriately-staffed workforces and the competence, integrity, health and safety of its employees, as well as the systems and employees of third parties, market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; legal and regulatory risks related to safeguarding personal information; the harm that could be caused by a successful cyber attack affecting JPMorgan Chase or by other extraordinary events; risks related to acquisitions, including the acquisition of certain assets and liabilities of First Republic Bank; risks associated with JPMorgan Chase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting; and potential adverse effects of failing to comply with heightened regulatory and other standards for the oversight of vendors and other service providers.
•Strategic risks, including the damage to JPMorgan Chase's competitive standing and results that could occur if management fails to develop and execute effective business strategies; risks associated with the significant and increasing competition that JPMorgan Chase faces; and the potential adverse impacts of climate change on JPMorgan Chase's business operations, clients and customers.
•Conduct risks, including the negative impact that can result from the actions or misconduct of employees, including any failure of employees to conduct themselves in accordance with JPMorgan Chase's expectations, policies and practices.
•Reputation risks, including the potential adverse effects on JPMorgan Chase's relationships with its clients,
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">9</td></tr></table>,
Part I
customers, shareholders, regulators and other stakeholders that could arise from employee misconduct, security breaches, inadequate risk management, compliance or operational failures, litigation and regulatory investigations, failure to satisfy expectations concerning environmental, social and governance concerns, failure to effectively manage conflicts of interest or to satisfy fiduciary obligations, or other factors that could damage JPMorgan Chase's reputation.
•Country risks, including potential impacts on JPMorgan Chase's businesses from an outbreak or escalation of hostilities between countries or within a country or region; and the potential adverse effects of local economic, political, regulatory and social factors on JPMorgan Chase's business and revenues in certain countries in which it operates.
•People risks, including the criticality of attracting and retaining qualified and diverse employees; and the potential adverse effects of unfavorable changes in immigration or travel policies on JPMorgan Chase's workforce.
•Legal risks, including those relating to litigation and regulatory and government investigations.
The above summary is subject in its entirety to the discussion of the risk factors set forth below.
Regulatory
JPMorgan Chase's businesses are highly regulated, and the laws, rules and regulations that apply to JPMorgan Chase have a significant impact on its business and operations.
JPMorgan Chase is a financial services firm with operations worldwide. JPMorgan Chase must comply with the laws, rules and regulations that apply to its operations in all of the jurisdictions around the world in which it does business, and financial services firms such as JPMorgan Chase are subject to extensive and constantly-evolving regulation and supervision.
The regulation and supervision of JPMorgan Chase significantly affects the way that it conducts its business and structures its operations, and JPMorgan Chase could be required to make changes to its business and operations in response to supervisory expectations or decisions or to new or changed laws, rules and regulations. These types of developments could result in JPMorgan Chase incurring additional costs or experiencing a reduction in revenues to comply with applicable laws, rules and regulations, which could reduce its profitability. Furthermore, JPMorgan Chase's entry into or acquisition of a new business or an increase in its principal investments may require JPMorgan Chase to comply with additional laws, rules, and regulations.
In response to new and existing laws, rules and regulations and expanded supervision, JPMorgan Chase has in the past been and could in the future be, required to:
•limit the products and services that it offers
•reduce the liquidity that it can provide through its market-making activities
•refrain from engaging in business opportunities that it might otherwise pursue
•pay higher taxes (including as part of any minimum global tax regime), assessments, levies or other governmental charges, including in connection with the resolution of tax examinations
•incur losses, including with respect to fraudulent transactions perpetrated against its customers
•dispose of certain assets, and do so at times or prices that are disadvantageous
•impose restrictions on certain business activities, or
•increase the prices that it charges for products and services, which could reduce the demand for them.
Any failure by JPMorgan Chase to comply with the laws, rules and regulations to which it is subject could result in:
•increased regulatory and supervisory scrutiny
•regulatory and governmental enforcement actions
•the imposition of fines, penalties or other sanctions
•increased exposure to litigation, or
•harm to its reputation.
Differences and inconsistencies in financial services regulation and supervision can negatively impact JPMorgan Chase's businesses, operations and financial results.
The content and application of laws, rules and regulations affecting financial services firms can vary according to factors such as the size of the firm, the jurisdiction in which it is organized or operates, and other criteria. For example:
•larger firms such as JPMorgan Chase are often subject to more stringent supervision, regulation and regulatory scrutiny
•financial technology companies and other non-traditional competitors may not be subject to banking regulation, or may be supervised by a national or state regulatory agency that does not have the same resources or regulatory priorities as the regulatory agencies which supervise more diversified financial services firms, or
•the financial services regulatory and supervisory framework in a particular jurisdiction may favor financial institutions that are based in that jurisdiction.
These types of differences in the regulatory and supervisory framework can result in JPMorgan Chase losing market share to competitors that are less regulated or not subject to regulation, especially with respect to unregulated financial products.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">10</td><td colspan="3"></td><td colspan="3"></td></tr></table>,
Part I
•loss of clients, customers and business
•restrictions on offering certain products or services, and
•losing permission to operate certain businesses, either temporarily or permanently.
JPMorgan Chase expects that:
•it and other financial services firms will continue to be subject to heightened regulatory scrutiny and governmental investigations and enforcement actions
•governmental authorities will continue to require that financial institutions be penalized for actual or deemed violations of law with formal and punitive enforcement actions, including the imposition of significant monetary and other sanctions, rather than resolving these matters through informal supervisory actions; and
•governmental authorities will be more likely to pursue formal enforcement actions and resolutions against JPMorgan Chase to the extent that it has previously been subject to other governmental investigations or enforcement actions.
If JPMorgan Chase fails to meet the requirements of any resolution of a governmental investigation or enforcement action, or to maintain risk and control processes that meet the heightened standards and expectations of its regulators, it could be required to, among other things:
•enter into further resolutions of investigations or enforcement actions
•pay additional regulatory penalties or enter into judgments, or
•accept material regulatory restrictions on, or changes in the management of, its businesses.
In these circumstances, JPMorgan Chase could also become subject to other sanctions, or to prosecution or civil litigation with respect to the conduct that gave rise to an investigation or enforcement action. In addition, JPMorgan Chase can be subject to higher costs or requests for additional capital in connection with the resolution of governmental investigations and enforcement actions involving newly-acquired businesses, companies in which JPMorgan Chase has made principal investments, parties to joint ventures with JPMorgan Chase, and vendors with which JPMorgan Chase does business.
JPMorgan Chase's operations and financial results can be negatively impacted in jurisdictions with less predictable legal and regulatory frameworks.
JPMorgan Chase conducts existing and new business in certain countries, states, municipalities, territories and other jurisdictions in which the application of the rule of law is inconsistent or less predictable, including with respect to:
•the absence of a statutory or regulatory basis or guidance for engaging in specific types of business or transactions
•conflicting or ambiguous laws, rules and regulations, or the inconsistent application or interpretation of existing laws, rules and regulations
•uncertainty concerning the enforceability of intellectual property rights or contractual or other obligations
•difficulty in competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive
•the threat of regulatory investigations, civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and
•the termination of licenses required to operate in the local market or the suspension of business relationships with governmental bodies.
If the application of the laws, rules and regulations in any jurisdiction is susceptible to producing inconsistent or unexpected outcomes, this can create a more difficult environment in which JPMorgan Chase conducts its business and could negatively affect JPMorgan Chase's operations and reduce its earnings with respect to that jurisdiction. For example, conducting business could require JPMorgan Chase to devote significant additional resources to understanding, and monitoring changes in, local laws, rules and regulations, as well as structuring its operations to comply with local laws, rules and regulations and implementing and administering related internal policies and procedures.
There can be no assurance that JPMorgan Chase will always be successful in its efforts to fully understand and to conduct its business in compliance with the laws, rules and regulations of all of the jurisdictions in which it operates, and the risk of non-compliance can be greater in jurisdictions that have less predictable legal and regulatory frameworks.
Requirements for the orderly resolution of JPMorgan Chase could result in JPMorgan Chase having to restructure or reorganize its businesses and could increase its funding or operational costs or curtail its businesses.
JPMorgan Chase is required under Federal Reserve and FDIC rules to prepare and submit periodically to those agencies a detailed plan for rapid and orderly resolution in bankruptcy, without extraordinary government support, in the event of material financial distress or failure. The evaluation of JPMorgan Chase's resolution plan by these agencies may change, and the requirements for resolution plans may be modified from time to time. Any such determinations or modifications could result in JPMorgan Chase needing to make changes to its legal entity structure or to certain internal or external activities, which could increase its funding or operational costs, or hamper its ability to serve clients and customers.
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">12</td><td colspan="3"></td><td colspan="3"></td></tr></table>
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Subsets and Splits
Random 30 Questions & Answers
Outputs 30 randomly selected questions along with their ground truth answers, providing a basic overview of the dataset content without revealing deeper insights.