Q4 2017 Earnings

Reported November 22, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q4 2017	Q3 2017	Q4 2016	QoQ Change	YoY Change
Revenue	$1.5B	$1.4B	—	7.5%	—
Op. Income	$448M	$195M	—	130.1%	—
Gross Margin	68.0%	67.1%	—	0.9pp	—
Net Margin	22.6%	4.8%	—	17.8pp	—
EPS (Diluted)	$0.93	$0.18	—	416.7%	—

Revenue Flow

Item	Amount
REVENUE	$1.5B
Cost of Revenue	$493M
GROSS PROFIT	$1.0B
R&D Expenses	$274M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$138M
Other Expenses	$188M
Operating Expenses	$600M
Cost & Expenses	$1.1B
OPERATING INCOME	$448M
Interest Income	$2M
Interest Expense	$64M
Other Income/Expenses	-$67M
INCOME BEFORE TAX	$382M
Income Tax Expense	$34M
Net Income from Continuing Ops	$348M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$348M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$345M
D&A	$190M
EBIT	$445M
EBITDA	$635M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$1.5B
Cost of Revenue	$493M
GROSS PROFIT	$1.0B
R&D Expenses	$274M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$138M
Other Expenses	$188M
Operating Expenses	$600M
Cost & Expenses	$1.1B
OPERATING INCOME	$448M
Interest Income	$2M
Interest Expense	$64M
Other Income/Expenses	-$67M
INCOME BEFORE TAX	$382M
Income Tax Expense	$34M
Net Income from Continuing Ops	$348M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$348M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$345M
D&A	$190M
EBIT	$445M
EBITDA	$635M
EPS	$1
EPS Diluted	$1

Balance Sheet

Item	Amount
Cash & Equivalents	$1.0B
Short-Term Investments	$0
Net Receivables	$689M
Inventory	$551M
Other Current Assets	$0
TOTAL CURRENT ASSETS	$2.4B
PP&E (Net)	$1.1B
Goodwill	$12.2B
Intangible Assets	$5.3B
Long-Term Investments	$25M
Tax Assets	$32M
Other Non-Current Assets	$89M
TOTAL NON-CURRENT ASSETS	$18.8B
TOTAL ASSETS	$21.1B
Account Payables	$237M
Short-Term Debt	$300M
Deferred Revenue	$474M
Other Current Liabilities	$271M
TOTAL CURRENT LIABILITIES	$1.6B
Long-Term Debt	$7.6B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$1.7B
Other Non-Current Liabilities	$158M
TOTAL NON-CURRENT LIABILITIES	$9.4B
TOTAL LIABILITIES	$11.0B
Common Stock	$61M
Additional Paid-In Capital	$5.3B
Retained Earnings	$4.9B
Treasury Stock	$0
Accum. Other Comp. Income	-$61M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$10.2B
Minority Interest	$0
TOTAL EQUITY	$10.2B
TOTAL LIABILITIES & EQUITY	$21.1B
Total Debt	$7.9B
Net Debt	$6.8B