Q2 2017 Earnings

Reported June 29, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q2 2017	Q1 2017	Q2 2016	QoQ Change	YoY Change
Revenue	$4.0B	—	$3.8B	—	4.2%
Op. Income	$306M	—	$288M	—	6.1%
Gross Margin	26.5%	—	61.2%	—	-34.7pp
Net Margin	3.8%	—	4.1%	—	-0.2pp
EPS (Diluted)	$0.31	—	$0.32	—	-3.5%

Revenue Flow

Item	Amount
REVENUE	$4.0B
Cost of Revenue	$2.9B
GROSS PROFIT	$1.1B
R&D Expenses	$26M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$676M
Other Expenses	-$51M
Operating Expenses	$753M
Cost & Expenses	$3.7B
OPERATING INCOME	$306M
Interest Income	$12M
Interest Expense	$52M
Other Income/Expenses	-$90M
INCOME BEFORE TAX	$216M
Income Tax Expense	$40M
Net Income from Continuing Ops	$176M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$152M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$152M
D&A	$575M
EBIT	$268M
EBITDA	$843M
EPS	$0
EPS Diluted	$0

Income Statement

Item	Amount
REVENUE	$4.0B
Cost of Revenue	$2.9B
GROSS PROFIT	$1.1B
R&D Expenses	$26M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$676M
Other Expenses	-$51M
Operating Expenses	$753M
Cost & Expenses	$3.7B
OPERATING INCOME	$306M
Interest Income	$12M
Interest Expense	$52M
Other Income/Expenses	-$90M
INCOME BEFORE TAX	$216M
Income Tax Expense	$40M
Net Income from Continuing Ops	$176M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$152M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$152M
D&A	$575M
EBIT	$268M
EBITDA	$843M
EPS	$0
EPS Diluted	$0

Balance Sheet

Item	Amount
Cash & Equivalents	$1.1B
Short-Term Investments	$475M
Net Receivables	$3.0B
Inventory	$283M
Other Current Assets	$230M
TOTAL CURRENT ASSETS	$5.1B
PP&E (Net)	$9.1B
Goodwill	$171M
Intangible Assets	$1.8B
Long-Term Investments	$2.0B
Tax Assets	$551M
Other Non-Current Assets	$68M
TOTAL NON-CURRENT ASSETS	$13.7B
TOTAL ASSETS	$18.8B
Account Payables	$778M
Short-Term Debt	$667M
Deferred Revenue	$12M
Other Current Liabilities	$3.3B
TOTAL CURRENT LIABILITIES	$4.9B
Long-Term Debt	$3.7B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$96M
Other Non-Current Liabilities	$1.2B
TOTAL NON-CURRENT LIABILITIES	$5.1B
TOTAL LIABILITIES	$10.0B
Common Stock	$1.1B
Additional Paid-In Capital	$974M
Retained Earnings	$3.0B
Treasury Stock	-$580M
Accum. Other Comp. Income	$3.4B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$7.9B
Minority Interest	$927M
TOTAL EQUITY	$8.8B
TOTAL LIABILITIES & EQUITY	$18.8B
Total Debt	$4.4B
Net Debt	$3.3B