Using All Financial Statements
Hard Test
Hard Test
There are no multiple choice questions. This section focuses on reading real companies’ financial statements.
1. Answer the following questions using the 4 financial statements below for Intel Company for the most current year, 2010
Answer
Balance Sheet: “Owe”
Accounts Payable 2,290 for inventory and repeat expenses (to suppliers)
Accrued Comp. & Benefits 2,888 related to employees
Accrued Advertising 1,007 for advertising expenses
Other Accrued Liabilities 2,482 for other operating expenses
Total 8,667
B. How much is owed banks and financing institutions that is payable within the next year?
Answer
Balance Sheet: “Owe”
Short-term Debt 38
C. What is the amount of cash dividends declared to owners during the current year?
Answer
Statement of Stockholders’ Equity, to owners, reduces retained earnings
Cash Dividends Declared 3,503
Dividends declared is reported on the statement of stockholder’s equity
Cash paid for dividends is reported on the cash flow statement.
D. How much cash did the company spend to acquire its own stock during the year?
Answer
Cash Flow Statement: “How much cash..” Financing section
Repurchase of common stock 1,736
E. How much do customers owe the company, that is expected to be collected, to date?
Answer
Balance Sheet: “To Date”
Accounts receivable, net… 2,867
Answer
Balance sheet: “Have”
Cash and cash equivalents 5,498
Do not include short-term investments;
Short-term investments have risk.
G. How much was incurred to run the day to day operations of the business during the current year?
Answer
Income Statement: “Incurred”; expense
Total Operating Expenses 12,903
H. How much has been contributed by stockholders to date?
Answer
Balance Sheet: “To Date”
Common Stock
and Capital in Excess of Par: 16,178
I. How much total cash was paid to stockholders for dividends during the current year?
Answer
Cash Flow Statement: “How much cash..”
Financing section
Payment of Dividends to Stockholder 3,503
J. How much does the company have in assets that are held for sale to customers?
Answer
Balance Sheet: “Have”
Inventories 3,757
K. What is the company’s profit or loss less dividends paid cumulative to date?
Answer
Balance Sheet: “To Date”
Retained Earnings 32,919
L. How much must be paid to the federal government for earnings during the current year?
Answer
Income Statement: Earnings; current year
Provision for taxes 4,581
M. What was the total price of goods provided to customers during the current year?
Answer
Income statement: Sold, Current Year; price is what customers pay
Net Revenue 43,623
N. What is the cost of the products that were sold to customers during the current year?
Answer
Income statement:
Cost during the current year is an expense
Cost of sales 15,132
O. How much has been paid for services not yet provided to the company, to date?
Answer
Balance Sheet: To Date; future benefit is an asset
Not specified: no line item for prepaid expenses
(included in other current assets and the amount cannot be determined)
P. How much cash was paid to repay long-term debt during the current year?
Answer
Cash Flow statement: “How much cash…”
Financing section
Repayment of debt 157
Q. How much cash was used to buy and sell total long term assets, net, during the current year?
Answer
Cash Flow statement: “How much cash”
Investing section
Net cash used for investing activities 10,539
R. How much did the company earn for each share of common stock outstanding during the current year?
Answer
Income Statement: “Earn”
Basic earnings per share $2.06
Diluted earnings per share $2.01
INTEL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Open to View Financial Statement
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Three Years Ended |
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(In Millions, Except |
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2010 |
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2009 |
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2008 |
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|||
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Net revenue |
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$ |
43,623 |
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$ |
35,127 |
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$ |
37,586 |
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Cost of sales |
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15,132 |
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15,566 |
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16,742 |
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Gross margin |
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28,491 |
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19,561 |
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20,844 |
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Research and development |
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6,576 |
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5,653 |
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5,722 |
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Marketing, general and administrative |
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6,309 |
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7,931 |
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5,452 |
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Restructuring and asset impairment charges |
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— |
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231 |
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710 |
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Amortization of acquisition-related intangibles |
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18 |
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35 |
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6 |
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Operating expenses |
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12,903 |
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13,850 |
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11,890 |
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Operating income |
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15,588 |
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|
5,711 |
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|
8,954 |
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Gains (losses) on equity method investments, net |
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117 |
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|
|
(147 |
) |
|
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(1,380 |
) |
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Gains (losses) on other equity investments, net |
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231 |
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(23 |
) |
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(376 |
) |
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In Interest and other, net |
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109 |
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163 |
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|
488 |
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In Income before taxes |
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16,045 |
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|
5,704 |
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|
7,686 |
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Provision for taxes |
|
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4,581 |
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|
1,335 |
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2,394 |
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Net income |
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$ |
11,464 |
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$ |
4,369 |
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$ |
5,292 |
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Basic earnings per common share |
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$ |
2.06 |
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$ |
0.79 |
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$ |
0.93 |
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Diluted earnings per common share |
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$ |
2.01 |
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$ |
0.77 |
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$ |
0.92 |
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See accompanying notes.
INTEL CORPORATION
CONSOLIDATED BALANCE SHEETS
Open to View Financial Statement
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December 25, 2010 and December 26, 2009 |
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(In Millions, Except Par Value) |
|
2010 |
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2009 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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5,498 |
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$ |
3,987 |
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Short-term investments |
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11,294 |
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5,285 |
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Trading assets |
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5,093 |
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4,648 |
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Accounts receivable, net of allowance for doubtful accounts of $28 ($19 in 2009) |
|
|
2,867 |
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2,273 |
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Inventories |
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3,757 |
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2,935 |
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Deferred tax assets |
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1,488 |
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1,216 |
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Other current assets |
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1,614
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813
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Total current assets |
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31,611 |
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21,157 |
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Property, plant and equipment, net |
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17,899 |
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17,225 |
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Marketable equity securities |
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1,008 |
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|
773 |
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Other long-term investments |
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3,026 |
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4,179 |
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Goodwill |
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4,531 |
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4,421 |
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Other long-term assets |
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5,111
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5,340
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Total assets |
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$ |
63,186 |
|
|
$ |
53,095 |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Short-term debt |
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$ |
38 |
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$ |
172 |
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Accounts payable |
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2,290 |
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|
1,883 |
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Accrued compensation and benefits |
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|
2,888 |
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|
2,448 |
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Accrued |
|
|
1,007 |
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|
|
773 |
|
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Deferred income on shipments to distributors |
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|
622 |
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|
593 |
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Other accrued liabilities |
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2,482
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1,722
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Total current liabilities |
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9,327 |
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|
7,591 |
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Long-term income taxes payable |
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|
190 |
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193 |
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Long-term debt |
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2,077 |
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2,049 |
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Long-term deferred tax liabilities |
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|
926 |
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555 |
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Other long-term liabilities |
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1,236 |
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|
1,003 |
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Commitments and contingencies (Notes 23 and 29) |
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Stockholders’ equity: |
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Deferred stock, $0.001 par value, 50 shares authorized; none issued |
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— |
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— |
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Common stock, $0.001 par value, 10,000 shares authorized; 5,581 issued and 5,511 |
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16,178 |
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14,993 |
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Accumulated other comprehensive income (loss) |
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|
333 |
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|
|
393 |
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Retained earnings |
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32,919 |
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|
26,318 |
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Total stockholders’ equity |
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49,430 |
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41,704 |
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Total liabilities and stockholders’ equity |
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$ |
63,186 |
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$ |
53,095 |
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See accompanying notes.
INTEL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Open to View Financial Statement
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Three Years Ended December 25, 2010 |
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(In Millions) |
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2010 |
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2009 |
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2008 |
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Cash and cash equivalents, beginning of year |
|
$ |
3,987 |
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$ |
3,350 |
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$ |
7,307 |
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Cash flows provided by (used for) operating activities: |
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Net income |
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11,464 |
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4,369 |
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5,292 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation |
|
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4,398 |
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4,744 |
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|
4,360 |
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Share-based compensation |
|
|
917 |
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|
889 |
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|
851 |
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Restructuring, asset impairment, and net loss on retirement of assets |
|
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67 |
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|
368 |
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|
795 |
|
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Excess tax benefit from share-based payment arrangements |
|
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(65 |
) |
|
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(9 |
) |
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(30 |
) |
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Amortization of intangibles |
|
|
240 |
|
|
|
308 |
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|
256 |
|
|
( (Gains) losses on equity method investments, net |
|
|
(117 |
) |
|
|
147 |
|
|
|
1,380 |
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(Gains) losses on other equity investments, net |
|
|
(231 |
) |
|
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23 |
|
|
|
376 |
|
|
(Gains) losses on divestitures |
|
|
— |
|
|
|
— |
|
|
|
(59 |
) |
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Deferred taxes |
|
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(46 |
) |
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|
271 |
|
|
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(790 |
) |
|
Changes in assets and liabilities: |
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|
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|
|
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|
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Trading assets |
|
|
— |
|
|
|
299 |
|
|
|
193 |
|
|
Accounts receivable |
|
|
(584 |
) |
|
|
(535 |
) |
|
|
260 |
|
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Inventories |
|
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(806 |
) |
|
|
796 |
|
|
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(395 |
) |
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Accounts payable |
|
|
407 |
|
|
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(506 |
) |
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29 |
|
|
Accrued compensation and benefits |
|
|
161 |
|
|
|
247 |
|
|
|
(569 |
) |
|
Income taxes payable and receivable |
|
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53 |
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|
110 |
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(834 |
) |
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Other assets and liabilities |
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834
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(351
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)
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(189
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)
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Total adjustments |
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5,228 |
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6,801 |
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5,634 |
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Net cash provided by operating activities |
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16,692 |
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|
11,170 |
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|
10,926 |
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Cash flows provided by (used for) investing activities: |
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Additions to property, plant and equipment |
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(5,207 |
) |
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(4,515 |
) |
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(5,197 |
) |
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Acquisitions, net of cash acquired |
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(218 |
) |
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(853 |
) |
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(16 |
) |
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Purchases of available-for-sale investments |
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(17,675 |
) |
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(8,655 |
) |
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(6,479 |
) |
|
Maturities and sales of available-for-sale investments |
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13,133 |
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|
7,756 |
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|
7,993 |
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Purchases of trading assets |
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(8,944 |
) |
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(4,186 |
) |
|
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(2,676 |
) |
|
Maturities and sales of trading assets |
|
|
8,846 |
|
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|
2,543 |
|
|
|
1,766 |
|
|
rigination of loans receivable |
|
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(498 |
) |
|
|
(343 |
) |
|
|
— |
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Investments in non-marketable equity investments |
|
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(393 |
) |
|
|
(250 |
) |
|
|
(1,691 |
) |
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Return of equity method investments |
|
|
199 |
|
|
|
449 |
|
|
|
316 |
|
|
Proceeds from divestitures |
|
|
— |
|
|
|
— |
|
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|
85 |
|
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Other investing |
|
|
218
|
|
|
|
89
|
|
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|
34
|
|
|
|
|
|
|
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|
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Net cash used for investing activities |
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|
(10,539 |
) |
|
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(7,965 |
) |
|
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(5,865 |
) |
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Cash flows provided by (used for) financing activities: |
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|
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Increase ort-term debt, net |
|
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23 |
|
|
|
(87 |
) |
|
|
(40 |
) |
|
Proceeds from government grants |
|
|
79 |
|
|
|
— |
|
|
|
182 |
|
|
Excess tax benefit from share-based payment arrangements |
|
|
65 |
|
|
|
9 |
|
|
|
30 |
|
|
Is Issuance of long-term debt |
|
|
— |
|
|
|
1,980 |
|
|
|
— |
|
|
Repayment of debt |
|
|
(157 |
) |
|
|
— |
|
|
|
— |
|
|
Proceeds from sales of shares through employee equity incentive plans |
|
|
587 |
|
|
|
400 |
|
|
|
1,105 |
|
|
Repurchase of common stock |
|
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(1,736 |
) |
|
|
(1,762 |
) |
|
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(7,195 |
) |
|
Payment of dividends to stockholders |
|
|
(3,503
|
)
|
|
|
(3,108
|
)
|
|
|
(3,100
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)
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|
|
|
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|
|
|
|
|
|
Net cash used for financing activities |
|
|
(4,642 |
) |
|
|
(2,568 |
) |
|
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(9,018 |
) |
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|
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|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
1,511 |
|
|
|
637 |
|
|
|
(3,957 |
) |
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|
|
|
|
|
|
|
|
|
|
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Cash and cash equivalents, end of year |
|
$ |
5,498 |
|
|
$ |
3,987 |
|
|
$ |
3,350 |
|
INTEL CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Open to View Financial Statement
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Common Stock |
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and Capital |
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Accumulated |
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in Excess of Par Value |
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Other |
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Years Ended December 25, 2010 |
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Number of |
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|
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Comprehensive |
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Retained |
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|||||
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(In Millions, Except Per Share Amounts) |
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Shares |
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Amount |
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Income (Loss) |
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Earnings |
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Total |
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|
|
|
|
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|
|
Balance as of December 26, 2009 |
|
|
5,523 |
|
|
|
14,993 |
|
|
|
393 |
|
|
|
26,318 |
|
|
|
41,704 |
|
|
Components of comprehensive income, net of tax: |
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,464 |
|
|
|
11,464 |
|
|
Otther comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
(60 |
) |
|
|
— |
|
|
|
(60 |
) |
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,404 |
|
|
Proceeds from sales of shares through employee equity incentive plans, net excess tax benefit, |
|
|
68 |
|
|
|
644 |
|
|
|
— |
|
|
|
— |
|
|
|
644 |
|
|
Share-based compensation |
|
|
— |
|
|
|
917 |
|
|
|
— |
|
|
|
— |
|
|
|
917 |
|
|
Repurchase of common stock |
|
|
(80 |
) |
|
|
(376 |
) |
|
|
— |
|
|
|
(1,360 |
) |
|
|
(1,736 |
) |
|
Cash dividends declared ($0.63 per common share) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,503 |
) |
|
|
(3,503 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 25, 2010 |
|
|
5,511 |
|
|
$ |
16,178 |
|
|
$ |
333 |
|
|
$ |
32,919 |
|
|
$ |
49,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. Answer the following questions using the 4 financial statements below for Walt Disney Company for the most current year, 2010
A. How much cash was paid for dividends during the current year?
Answer
Cash Flow Statement:
“How much cash…” Financing section
Dividends 653
B. How much has the company collected from customers prior to providing the service, to date?
Answer
Balance Sheet: “To Date” (owe the customer)
Unearned royalties and other advances 2,541
C. How much has been paid to acquire other companies, over and above the net cost of the assets purchased, to date?
Answer
Balance Sheet: To Date
Goodwill 24,100
D. How much cash has been prepaid (or invested in) for film and television costs to date?
Answer
Balance Sheet: “To Date”
Current: Television Costs 678
(prepaid)
Noncurrent: Film and Television Costs 4,773
(invested long-term to generate revenues)
Total 5,451
E. How much cash did the company spend to acquire its own stock during the year?
Answer
Cash Flow Statement: “How much cash..”
Financing section
Repurchases of common stock 2,669
F. How much was incurred to run the normal day to day operations of the business during the current year?
Answer
Income Statement: “Incurred”
Costs and Expenses 31,337
Restructuring and impairment are not expected costs of operating the day to day business.
G. How much is owed for debt that is payable within the next year?
Answer
Balance Sheet: “Owe”
Current portion of borrowings 2,350
H. How much has been contributed by stockholders to date?
Answer
Balance Sheet: “To Date”
Common Stock 28,736
Answer
Balance sheet: “Have”
Cash and cash equivalents 2,722
J. How much does the company have in assets that are held for sale to customers, to date?
Answer
Balance Sheet: “Have”
Inventories 1,442
K. How much must be paid to the federal government for earnings during the current year?
Answer
Income Statement: Earnings; current year
Income Taxes 2,314
L. What was the total price of goods provided to customers during the current year?
Answer
Income Statement: current year; price to customers is revenue
Revenues 38,063
M. How much cash was paid to repay long term debt during the current year?
Answer
Cash Flow Statement: “How much cash..”
Financing section
Reduction of borrowings 1,371
N. How much do customers owe the company that is expected to be collected, to date?
Answer
Balance Sheet: “To Date”
Receivables 5,784
O. How much cash was used to acquire other companies in the current year?
Answer
Cash Flow statement: “How much cash…” Investing section
Acquisitions 2,493
P. How much does the Company owe for inventory and operating expenses, to date?
Answer
Balance Sheet: “Owe”
Accounts payable and other accrued liabilities 6,109
Q. How much did the company earn in total for the current year?
Answer
Income Statement: “Earn”; current year
Net Income, attributable to Walt Disney Company 3,963
R. What is the company’s profit or loss less dividends paid cumulative to date?
Open to View Financial Statement
Balance Sheet: “To Date”
Retained Earnings 34,327
Answer
Balance Sheet: “Have”
Parks, resorts and other property 32,875
- Accumulated Depreciation (18,373)
Net depreciable assets 14,502
Projects in Progress 2,180
Land 1,124
Total, net 17,806
Note: Some of the film & television costs could be physical assets
T. How much does the company own of its own stock, to date (in dollars)?
Answer
Balance Sheet: “To Date”
Treasury Stock 23,663
U. What is the cost of the products that were sold to customers during the current year?
Answer
Income Statement: Cost to the company is an expense; current year
No line item, not specifically stated. Disney views themselves as a service company.
This is included in operating expenses; costs and expenses
V. How much cash was used to purchase parks, resorts, and other property during the current year?
Answer
Cash Flow Statement:
“How much cash…”
Investing section
Investments in parks, resorts,
and other property 2,110
Walt Disney Company
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
Open to View Financial Statement
|
|
|
2010 |
|
|
2009 |
|
|
2008 |
|
|||
|
Revenues |
|
$ |
38,063 |
|
|
$ |
36,149 |
|
|
$ |
37,843 |
|
|
Costs and expenses |
|
|
(31,337 |
) |
|
|
(30,452 |
) |
|
|
(30,400 |
) |
|
Restructuring and impairment charges |
|
|
(270 |
) |
|
|
(492 |
) |
|
|
(39 |
) |
|
Other income (expense) |
|
|
140 |
|
|
|
342 |
|
|
|
(59 |
) |
|
Net interest expense |
|
|
(409 |
) |
|
|
(466 |
) |
|
|
(524 |
) |
|
Equity in the income of investees |
|
|
440 |
|
|
|
577 |
|
|
|
581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
6,627 |
|
|
|
5,658 |
|
|
|
7,402 |
|
|
Income taxes |
|
|
(2,314 |
) |
|
|
(2,049 |
) |
|
|
(2,673 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
4,313 |
|
|
|
3,609 |
|
|
|
4,729 |
|
|
Less: Net Income attributable to noncontrolling interests |
|
|
(350 |
) |
|
|
(302 |
) |
|
|
(302 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to The Walt Disney Company (Disney) |
|
$ |
3,963 |
|
|
$ |
3,307 |
|
|
$ |
4,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Disney: |
|
|
|
|||||||||
|
Diluted |
|
$ |
2.03 |
|
|
$ |
1.76 |
|
|
$ |
2.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.07 |
|
|
$ |
1.78 |
|
|
$ |
2.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common and common equivalent shares outstanding: |
|
|
|
|||||||||
|
Diluted |
|
|
1,948 |
|
|
|
1,875 |
|
|
|
1,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
1,915 |
|
|
|
1,856 |
|
|
|
1,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Walt Disney Company
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
Open to View Financial Statement
|
|
|
October 2,
2010 |
|
|
October 3,
2009 |
|
||
|
ASSETS |
|
|
||||||
|
Current assets |
|
|
||||||
|
Cash and cash equivalents |
|
$ |
2,722 |
|
|
$ |
3,417 |
|
|
Receivables |
|
|
5,784 |
|
|
|
4,854 |
|
|
Inventories |
|
|
1,442 |
|
|
|
1,271 |
|
|
Television costs |
|
|
678 |
|
|
|
631 |
|
|
Deferred income taxes |
|
|
1,018 |
|
|
|
1,140 |
|
|
Other current assets |
|
|
581 |
|
|
|
576 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
12,225 |
|
|
|
11,889 |
|
|
Film and television costs |
|
|
4,773 |
|
|
|
5,125 |
|
|
Investments |
|
|
2,513 |
|
|
|
2,554 |
|
|
Parks, resorts and other property, at cost Attractions, buildings and equipment |
|
|
32,875 |
|
|
|
32,475 |
|
|
Accumulated depreciation |
|
|
(18,373 |
) |
|
|
(17,395 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
14,502 |
|
|
|
15,080 |
|
|
|
Projects in progress |
|
|
2,180 |
|
|
|
1,350 |
|
|
Land |
|
|
1,124 |
|
|
|
1,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,806 |
|
|
|
17,597 |
|
|
|
Intangible assets, net |
|
|
5,081 |
|
|
|
2,247 |
|
|
Goodwill |
|
|
24,100 |
|
|
|
21,683 |
|
|
Other assets |
|
|
2,708 |
|
|
|
2,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
69,206 |
|
|
$ |
63,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
||||||
|
Current liabilities |
|
|
||||||
|
Accounts payable and other accrued liabilities |
|
$ |
6,109 |
|
|
$ |
5,616 |
|
|
Current portion of borrowings |
|
|
2,350 |
|
|
|
1,206 |
|
|
Unearned royalties and other advances |
|
|
2,541 |
|
|
|
2,112 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
11,000 |
|
|
|
8,934 |
|
|
Borrowings |
|
|
10,130 |
|
|
|
11,495 |
|
|
Deferred income taxes |
|
|
2,630 |
|
|
|
1,819 |
|
|
Other long-term liabilities |
|
|
6,104 |
|
|
|
5,444 |
|
|
Commitments and contingencies (Note 15) |
|
|
||||||
|
Equity |
|
|
||||||
|
Preferred stock, $.01 par value |
|
|
— |
|
|
|
— |
|
|
Common stock, $.01 par value |
|
|
28,736 |
|
|
|
27,038 |
|
|
Retained earnings |
|
|
34,327 |
|
|
|
31,033 |
|
|
Accumulated other comprehensive loss |
|
|
(1,881 |
) |
|
|
(1,644 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
61,182 |
|
|
|
56,427 |
|
|
|
Treasury stock, at cost, 803.1 million shares at October 2, 2010 and 781.7 million shares at October 3, 2009 |
|
|
(23,663 |
) |
|
|
(22,693 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total Disney Shareholder’s equity |
|
|
37,519 |
|
|
|
33,734 |
|
|
Noncontrolling interests |
|
|
1,823 |
|
|
|
1,691 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity |
|
|
39,342 |
|
|
|
35,425 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
69,206 |
|
|
$ |
63,117 |
|
|
|
|
|
|
|
|
|
|
|
Walt Disney Company
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Open to View Financial Statement
|
|
|
2010 |
|
|
2009 |
|
|
2008 |
|
|||
|
OPERATING ACTIVITIES |
|
|
|
|||||||||
|
Net income |
|
$ |
4,313 |
|
|
$ |
3,609 |
|
|
$ |
4,729 |
|
|
Depreciation and amortization |
|
|
1,713 |
|
|
|
1,631 |
|
|
|
1,582 |
|
|
Gains on dispositions |
|
|
(118 |
) |
|
|
(342 |
) |
|
|
(14 |
) |
|
Deferred income taxes |
|
|
133 |
|
|
|
323 |
|
|
|
(128 |
) |
|
Equity in the income of investees |
|
|
(440 |
) |
|
|
(577 |
) |
|
|
(581 |
) |
|
Cash distributions received from equity investees |
|
|
473 |
|
|
|
505 |
|
|
|
476 |
|
|
Net change in film and television costs |
|
|
238 |
|
|
|
(43 |
) |
|
|
(301 |
) |
|
Equity-based compensation |
|
|
522 |
|
|
|
457 |
|
|
|
402 |
|
|
Impairment charges |
|
|
132 |
|
|
|
279 |
|
|
|
39 |
|
|
Other |
|
|
(122 |
) |
|
|
(67 |
) |
|
|
(36 |
) |
|
Changes in operating assets and liabilities |
|
|
|
|||||||||
|
Receivables |
|
|
(686 |
) |
|
|
468 |
|
|
|
(594 |
) |
|
Inventories |
|
|
(127 |
) |
|
|
(117 |
) |
|
|
(329 |
) |
|
Other assets |
|
|
42 |
|
|
|
(565 |
) |
|
|
(64 |
) |
|
Accounts payable and other accrued liabilities |
|
|
649 |
|
|
|
(250 |
) |
|
|
570 |
|
|
Income taxes |
|
|
(144 |
) |
|
|
8 |
|
|
|
(50 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operations |
|
|
6,578 |
|
|
|
5,319 |
|
|
|
5,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|||||||||
|
Investments in parks, resorts and other property |
|
|
(2,110 |
) |
|
|
(1,753 |
) |
|
|
(1,578 |
) |
|
Sales of investments |
|
|
— |
|
|
|
46 |
|
|
|
70 |
|
|
Proceeds from dispositions |
|
|
170 |
|
|
|
185 |
|
|
|
14 |
|
|
Acquisitions |
|
|
(2,493 |
) |
|
|
(176 |
) |
|
|
(660 |
) |
|
Other |
|
|
(90 |
) |
|
|
(57 |
) |
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash used in investing activities |
|
|
(4,523 |
) |
|
|
(1,755 |
) |
|
|
(2,162 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|||||||||
|
Commercial paper borrowings, net |
|
|
1,190 |
|
|
|
(1,985 |
) |
|
|
(701 |
) |
|
Borrowings |
|
|
— |
|
|
|
1,750 |
|
|
|
1,706 |
|
|
Reduction of borrowings |
|
|
(1,371 |
) |
|
|
(1,617 |
) |
|
|
(477 |
) |
|
Dividends |
|
|
(653 |
) |
|
|
(648 |
) |
|
|
(664 |
) |
|
Repurchases of common stock |
|
|
(2,669 |
) |
|
|
(138 |
) |
|
|
(4,453 |
) |
|
Exercise of stock options and other |
|
|
753 |
|
|
|
(510 |
) |
|
|
381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash used in financing activities |
|
|
(2,750 |
) |
|
|
(3,148 |
) |
|
|
(4,208 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)/increase in cash and cash equivalents |
|
|
(695 |
) |
|
|
416 |
|
|
|
(669 |
) |
|
Cash and cash equivalents, beginning of year |
|
|
3,417 |
|
|
|
3,001 |
|
|
|
3,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of year |
|
$ |
2,722 |
|
|
$ |
3,417 |
|
|
$ |
3,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Walt Disney Company
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in millions, except per share data)
Open to View Financial Statement
|
|
|
Equity Attributable to Disney |
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
|
|
Shares |
|
|
Common |
|
|
Retained |
|
|
Accumulated |
|
|
Treasury |
|
|
Total |
|
|
Non-controlling |
|
|
Total |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AT OCTOBER 3, 2009 |
|
|
1,861 |
|
|
$ |
27,038 |
|
|
$ |
31,033 |
|
|
$ |
(1,644 |
) |
|
$ |
(22,693 |
) |
|
$ |
33,734 |
|
|
$ |
1,691 |
|
|
$ |
35,425 |
|
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
3,963 |
|
|
|
— |
|
|
|
— |
|
|
|
3,963 |
|
|
|
350 |
|
|
|
4,313 |
|
|
Market value adjustments for investments and hedges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(113 |
) |
|
|
— |
|
|
|
(113 |
) |
|
|
— |
|
|
|
(113 |
) |
|
Foreign currency translation and other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
|
|
(25 |
) |
|
|
(12 |
) |
|
|
(37 |
) |
|
Pension and postretirement medical plan adjustments: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Reclassification of prior net losses to net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
109 |
|
|
|
— |
|
|
|
109 |
|
|
|
— |
|
|
|
109 |
|
|
Net actuarial loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(208 |
) |
|
|
— |
|
|
|
(208 |
) |
|
|
— |
|
|
|
(208 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Comprehensive income |
|
|
|
|
|
|
|
3,726 |
|
|
|
338 |
|
|
|
4,064 |
|
|||||||||||||||
|
Equity compensation activity |
|
|
54 |
|
|
|
1,498 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,498 |
|
|
|
— |
|
|
|
1,498 |
|
|
Acquisition of Marvel |
|
|
59 |
|
|
|
188 |
|
|
|
— |
|
|
|
— |
|
|
|
1,699 |
|
|
|
1,887 |
|
|
|
90 |
|
|
|
1,977 |
|
|
Common stock repurchases |
|
|
(80 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,669 |
) |
|
|
(2,669 |
) |
|
|
— |
|
|
|
(2,669 |
) |
|
Dividends |
|
|
— |
|
|
|
9 |
|
|
|
(662 |
) |
|
|
— |
|
|
|
— |
|
|
|
(653 |
) |
|
|
— |
|
|
|
(653 |
) |
|
Distributions and other |
|
|
— |
|
|
|
3 |
|
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
(296 |
) |
|
|
(300 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AT OCTOBER 2, 2010 |
|
|
1,894 |
|
|
$ |
28,736 |
|
|
$ |
34,327 |
|
|
$ |
(1,881 |
) |
|
$ |
(23,663 |
) |
|
$ |
37,519 |
|
|
$ |
1,823 |
|
|
$ |
39,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. Answer the following questions using the 4 financial statements below for Target Corporation for the most current year, 2010
A. How much is owed banks and investors that is payable within the next year?
Answer
Balance Sheet:
“Owe”; current liabilities
Unsecured debt and other borrowings 119
B. How much was incurred for the use of credit cards during the current year?
Answer
Income Statement: Incurred, current year
Credit card expenses 860
C. How much is owed the company related to customers, expected to be collected, to date?
Answer
Balance Sheet: “To Date”
Credit Card Receivables, net… 6,153
D. How much was incurred to operate the business during the current year?
Answer
Income Statement: “Incurred”
Selling, general & administrative expenses 13,469
Credit card expenses 860
Depreciation and amortization 2,084
E. How much cash did the company spend to acquire its own stock during the year?
Answer
Cash Flow Statement: “How much cash…”
Financing section
Repurchase of stock 2,452
F. How much does the company have in assets that are held for sale to customers, to date?
Answer
Balance Sheet: “Have”
Inventory 7,596
G. What is the company’s profit or loss less dividends paid cumulative to date?
Answer
Balance Sheet: “To Date”
Retained Earnings 12,698
H. What was the total price of goods provided to customers during the current year?
Answer
Income Statement: current year; price to customers is sales revenue
Sales 65,786
(credit card revenue is not goods; it is service)
I. How much does the Company owe for inventory and daily operating expenses, to date?
Answer
Balance Sheet: “Owe”
Accounts payable 6,625
Accrued and other current liabilities 3,326
Total 9,951
J. How much cash was paid for dividends during the current year?
Answer
Cash Flow Statement: “How much cash”
Financing section
Dividends paid 609
K. How much is owed on debt that must be paid in more than one year?
Answer
Balance Sheet: Owed
Unsecured debt and other borrowings 11,653
Nonrecourse debt collateralized by credit card receivables 3,954
Total 15,607
L. What is the cost of the products that were sold to customers during the current year?
Answer
Income Statement:
Cost to the company is an expense; current year
Cost of Sales 45,725
M. How much cash does the company have in the bank or invested for one year or less, to date?
Answer
Balance sheet: “Have”
Cash and cash equivalents and marketable securities, 1,712
N. How much cash was paid to repay long-term debt during the current year?
Answer
Cash Flow Statement: “How much cash …”
Financing section
Reductions in long-term debt 2,259
O. How much has been contributed by stockholders to date?
Answer
Balance Sheet: “To Date”
Common Stock 59
Additional paid in capital 3,311
Total 3,370
P. How much cash was used to buy property and equipment in the current year?
Answer
Cash Flow statement:
“How much cash”
Investing section
Expenditures for property and equipment 2,129
Answer
Statement of Stockholder’s Equity:
wners; current year
Repurchase of Stock;
Retained earnings column 2,510
R. How much has been invested in physical assets used to produce revenues, net, to date?
Answer
Balance Sheet: To Date
Property and equipment, net 25,493
Answer
Income Statement:
Cost; current year
Net interest expense 757
Target Corporation: Consolidated Statements of Operations
Open to View Financial Statement
|
|
|
||||||||||
|
|
|
2010 |
|
2009 |
|
2008 |
|
||||
|
|
|
||||||||||
|
Sales |
|
$ |
65,786 |
|
$ |
63,435 |
|
$ |
62,884 |
|
|
|
Credit card revenues |
|
|
1,604 |
|
|
1,922 |
|
|
2,064 |
|
|
|
|
|
||||||||||
|
Total revenues |
|
|
67,390 |
|
|
65,357 |
|
|
64,948 |
|
|
|
Cost of sales |
|
|
45,725 |
|
|
44,062 |
|
|
44,157 |
|
|
|
Selling, general and administrative expenses |
|
|
13,469 |
|
|
13,078 |
|
|
12,954 |
|
|
|
Credit card expenses |
|
|
860 |
|
|
1,521 |
|
|
1,609 |
|
|
|
Depreciation and amortization |
|
|
2,084 |
|
|
2,023 |
|
|
1,826 |
|
|
|
|
|
||||||||||
|
Earnings before interest expense and income taxes |
|
|
5,252 |
|
|
4,673 |
|
|
4,402 |
|
|
|
Net interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonrecourse debt collateralized by credit card receivables |
|
|
83 |
|
|
97 |
|
|
167 |
|
|
|
Other interest expense |
|
|
677 |
|
|
707 |
|
|
727 |
|
|
|
Interest income |
|
|
(3 |
) |
|
(3 |
) |
|
(28 |
) |
|
|
|
||||||||||
|
Net interest expense |
|
|
757 |
|
|
801 |
|
|
866 |
|
|
|
|
|
||||||||||
|
Earnings before income taxes |
|
|
4,495 |
|
|
3,872 |
|
|
3,536 |
|
|
|
Provision for income taxes |
|
|
1,575 |
|
|
1,384 |
|
|
1,322 |
|
|
|
|
|
||||||||||
|
Net earnings |
|
$ |
2,920 |
|
$ |
2,488 |
|
$ |
2,214 |
|
|
|
|
|
||||||||||
|
Basic earnings per share |
|
$ |
4.03 |
|
$ |
3.31 |
|
$ |
2.87 |
|
|
|
|
|
||||||||||
|
Diluted earnings per share |
|
$ |
4.00 |
|
$ |
3.30 |
|
$ |
2.86 |
|
|
|
|
|
||||||||||
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
723.6 |
|
|
752.0 |
|
|
770.4 |
|
|
|
Diluted |
|
|
729.4 |
|
|
754.8 |
|
|
773.6 |
|
|
|
|
||||||||||
See accompanying Notes to Consolidated Financial Statements.
Target Corporation: Consolidated Statements of Financial Position
Open to View Financial Statement
|
|
|
|||||||
|
(millions, except footnotes) |
|
|
|
January 30, |
|
|||
|
|
|
|||||||
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, including marketable securities of $1,129 and $1,617 |
|
$ |
1,712 |
|
$ |
2,200 |
|
|
|
Credit card receivables, net of allowance of $690 and $1,016 |
|
|
6,153 |
|
|
6,966 |
|
|
|
Inventory |
|
|
7,596 |
|
|
7,179 |
|
|
|
Other current assets |
|
|
1,752 |
|
|
2,079 |
|
|
|
|
|
|||||||
|
|
Total current assets |
|
|
17,213 |
|
|
18,424 |
|
|
Property and equipment |
|
|
|
|
|
|
|
|
|
|
Land |
|
|
5,928 |
|
|
5,793 |
|
|
|
Buildings and improvements |
|
|
23,081 |
|
|
22,152 |
|
|
|
Fixtures and equipment |
|
|
4,939 |
|
|
4,743 |
|
|
|
Computer hardware and software |
|
|
2,533 |
|
|
2,575 |
|
|
|
Construction-in-progress |
|
|
567 |
|
|
502 |
|
|
|
Accumulated depreciation |
|
|
(11,555 |
) |
|
(10,485 |
) |
|
|
|
|||||||
|
|
Property and equipment, net |
|
|
25,493 |
|
|
25,280 |
|
|
Other noncurrent assets |
|
|
999 |
|
|
829 |
|
|
|
|
|
|||||||
|
Total assets |
|
$ |
43,705 |
|
$ |
44,533 |
|
|
|
|
|
|||||||
|
Liabilities and shareholders’ investment |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
6,625 |
|
$ |
6,511 |
|
|
|
Accrued and other current liabilities |
|
|
3,326 |
|
|
3,120 |
|
|
|
Unsecured debt and other borrowings |
|
|
119 |
|
|
796 |
|
|
|
Nonrecourse debt collateralized by credit card receivables |
|
|
— |
|
|
900 |
|
|
|
|
|
|||||||
|
|
Total current liabilities |
|
|
10,070 |
|
|
11,327 |
|
|
Unsecured debt and other borrowings |
|
|
11,653 |
|
|
10,643 |
|
|
|
Nonrecourse debt collateralized by credit card receivables |
|
|
3,954 |
|
|
4,475 |
|
|
|
Deferred income taxes |
|
|
934 |
|
|
835 |
|
|
|
Other noncurrent liabilities |
|
|
1,607 |
|
|
1,906 |
|
|
|
|
|
|||||||
|
|
Total noncurrent liabilities |
|
|
18,148 |
|
|
17,859 |
|
|
Shareholders’ investment |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
59 |
|
|
62 |
|
|
|
Additional paid-in-capital |
|
|
3,311 |
|
|
2,919 |
|
|
|
Retained earnings |
|
|
12,698 |
|
|
12,947 |
|
|
|
Accumulated other comprehensive loss |
|
|
(581 |
) |
|
(581 |
) |
|
|
|
|||||||
|
|
Total shareholders’ investment |
|
|
15,487 |
|
|
15,347 |
|
|
|
|
|||||||
|
Total liabilities and shareholders’ investment |
|
$ |
43,705 |
|
$ |
44,533 |
|
|
|
|
|
|||||||
Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 704,038,218 shares issued and outstanding at January 29, 2011; 744,644,454 shares issued and outstanding at January 30, 2010.
Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding at January 29, 2011 or January 30, 2010.
See accompanying Notes to Consolidated Financial Statements.
Target Corporation: Consolidated Statements of Cash Flows
Open to View Financial Statement
|
|
|
|||||||||||
|
|
|
2010 |
|
2009 |
|
2008 |
|
|||||
|
|
|
|||||||||||
|
Operating activities |
|
|
|
|
|
|
|
|
|
|
||
|
Net earnings |
|
$ |
2,920 |
|
$ |
2,488 |
|
$ |
2,214 |
|
||
|
Reconciliation to cash flow |
|
|
|
|
|
|
|
|
|
|
||
|
|
Depreciation and amortization |
|
|
2,084 |
|
|
2,023 |
|
|
1,826 |
|
|
|
|
Share-based compensation expense |
|
|
109 |
|
|
103 |
|
|
72 |
|
|
|
|
Deferred income taxes |
|
|
445 |
|
|
364 |
|
|
91 |
|
|
|
|
Bad debt expense |
|
|
528 |
|
|
1,185 |
|
|
1,251 |
|
|
|
|
Non-cash (gains)/losses and other, net |
|
|
(145 |
) |
|
143 |
|
|
316 |
|
|
|
|
Changes in operating accounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable originated at Target |
|
|
(78 |
) |
|
(57 |
) |
|
(458 |
) |
|
|
|
Inventory |
|
|
(417 |
) |
|
(474 |
) |
|
77 |
|
|
|
|
Other current assets |
|
|
(124 |
) |
|
(129 |
) |
|
(99 |
) |
|
|
|
Other noncurrent assets |
|
|
(212 |
) |
|
(114 |
) |
|
(55 |
) |
|
|
|
Accounts payable |
|
|
115 |
|
|
174 |
|
|
(389 |
) |
|
|
|
Accrued and other current liabilities |
|
|
149 |
|
|
257 |
|
|
(230 |
) |
|
|
|
Other noncurrent liabilities |
|
|
(103 |
) |
|
(82 |
) |
|
(186 |
) |
|
|
|
|||||||||||
|
Cash flow provided by operations |
|
|
5,271 |
|
|
5,881 |
|
|
4,430 |
|
||
|
|
|
|||||||||||
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
||
|
|
Expenditures for property and equipment |
|
|
(2,129 |
) |
|
(1,729 |
) |
|
(3,547 |
) |
|
|
|
Proceeds from disposal of property and equipment |
|
|
69 |
|
|
33 |
|
|
39 |
|
|
|
|
Change in accounts receivable originated at third parties |
|
|
363 |
|
|
(10 |
) |
|
(823 |
) |
|
|
|
Other investments |
|
|
(47 |
) |
|
3 |
|
|
(42 |
) |
|
|
|
|
|||||||||||
|
Cash flow required for investing activities |
|
|
(1,744 |
) |
|
(1,703 |
) |
|
(4,373 |
) |
||
|
|
|
|||||||||||
|
Financing activities |
|
|
|
|
|
|
|
|
|
|
||
|
|
Reductions of short-term notes payable |
|
|
— |
|
|
— |
|
|
(500 |
) |
|
|
|
Additions to long-term debt |
|
|
1,011 |
|
|
— |
|
|
3,557 |
|
|
|
|
Reductions of long-term debt |
|
|
(2,259 |
) |
|
(1,970 |
) |
|
(1,455 |
) |
|
|
|
Dividends paid |
|
|
(609 |
) |
|
(496 |
) |
|
(465 |
) |
|
|
|
Repurchase of stock |
|
|
(2,452 |
) |
|
(423 |
) |
|
(2,815 |
) |
|
|
|
Stock option exercises and related tax benefit |
|
|
294 |
|
|
47 |
|
|
43 |
|
|
|
|
Other |
|
|
— |
|
|
— |
|
|
(8 |
) |
|
|
|
|
|||||||||||
|
Cash flow required for financing activities |
|
|
(4,015 |
) |
|
(2,842 |
) |
|
(1,643 |
) |
||
|
|
|
|||||||||||
|
Net increase/(decrease) in cash and cash equivalents |
|
|
(488 |
) |
|
1,336 |
|
|
(1,586 |
) |
||
|
Cash and cash equivalents at beginning of year |
|
|
2,200 |
|
|
864 |
|
|
2,450 |
|
||
|
|
|
|||||||||||
|
Cash and cash equivalents at end of year |
|
$ |
1,712 |
|
$ |
2,200 |
|
$ |
864 |
|
||
|
|
|
|||||||||||
Cash paid for income taxes was $1,259, $1,040 and $1,399 during 2010, 2009 and 2008, respectively. Cash paid for interest (net of interest capitalized) was $752, $805 and $873 during 2010, 2009 and 2008, respectively.
See accompanying Notes to Consolidated Financial Statements.
Target Corporation: Consolidated Statements of Shareholders’ Investment
Open to View Financial Statement
|
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
(millions, except footnotes) |
|
Common |
|
Stock |
|
Additional |
|
Retained |
|
Pension |
|
Derivative |
|
Total |
|
|||||||||
|
|
|
|||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
January 30, 2010 |
|
|
744.6 |
|
$ |
62 |
|
$ |
2,919 |
|
$ |
12,947 |
|
$ |
(537 |
) |
$ |
(44 |
) |
$ |
15,347 |
|
||
|
Net earnings |
|
|
— |
|
|
— |
|
|
— |
|
|
2,920 |
|
|
— |
|
|
— |
|
|
2,920 |
|
||
|
|
Other comprehensive income/(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension and other benefit liability adjustments, et of taxes of $4 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4 |
) |
|
— |
|
|
(4 |
) |
|
|
|
Net change on cash flow hedges, net of taxes of $2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3 |
|
|
3 |
|
|
|
|
Currency translation adjustment, net of taxes of $1 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,920 |
|
|
|
Dividends declared |
|
|
— |
|
|
— |
|
|
— |
|
|
(659 |
) |
|
— |
|
|
— |
|
|
(659 |
) |
||
|
Repurchase of stock |
|
|
(47.8 |
) |
|
(4 |
) |
|
— |
|
|
(2,510 |
) |
|
— |
|
|
— |
|
|
(2,514 |
) |
||
|
Stock options and awards |
|
|
7.2 |
|
|
1 |
|
|
392 |
|
|
— |
|
|
— |
|
|
— |
|
|
393 |
|
||
|
|
|
|||||||||||||||||||||||
|
January 29, 2011 |
|
|
704.0 |
|
|
$59 |
|
|
$3,311 |
|
|
$12,698 |
|
|
$(541 |
) |
|
$(40 |
) |
$ |
15,487 |
|
||
|
|
|
|||||||||||||||||||||||
Dividends declared per share were $0.92, $0.67 and $0.62 in 2010, 2009 and 2008, respectively
4. Answer the following questions using the 4 financial statements below for Chipotle Mexican Grill, Inc. for the most current year, 2010
A. How much was retained earnings reduced when the company repurchased stock from owners during the current year?
Answer
Balance Sheet: “Owe”
Accrued payroll and benefits 50,336
B. How much is owed for rent that has not yet been paid, to date?
Answer
Balance Sheet: “Owe”
Deferred rent 123,667
C. How much has been paid to acquire other companies, over and above net assets, to date?
Answer
Balance Sheet: “To Date”
Goodwill 21,939
D. How much cash did the company spend to acquire its own stock during the current year?
Answer
Cash Flow Statement:
“How much cash…”
Financing section
Acquisition of treasury stock 126,602
E. How much is owed the company by customers, net, to date?
Answer
Balance Sheet: “To Date”
Accounts Receivable 5,658
Answer
Balance sheet: “To Date”
Income Tax Receivable 23,528
G. How much was incurred to operate restaurants during the current year (total)?
Answer
Income Statement:
Incurred, current year
Total operating expenses 1,548,091
H. How much has been contributed by stockholders to date?
Answer
Balance Sheet: “To Date”
Common Stock 340
Additional paid in capital 594,331
Total 594,671
I. How much cash was paid for dividends during the current year?
Answer
Cash Flow Statement:
“How much cash”
Financing section
No dividends were paid; no line item
J. How much does the company have in assets that are held for sale to customers, to date?
Answer
Balance Sheet: “Have”
Inventory 7,098
K. What is the company’s profit or loss less dividends paid, cumulative to date?
Answer
Balance Sheet: “To Date”
Retained Earnings 456,514
L. How much was earned from interest and other, in the current year?
Answer
Income Statement:
Earned; income, current year
Interest and other income 1,499
M. What is the cost of using long-term assets during the current year?
Answer
Income Statement:
Cost of using is an expense; current year
Depreciation and amortization 68,921
N. How much has been paid for services not yet provided to the company, to date?
Answer
Balance Sheet: To Date
Prepaid expense and other current assets 16,016
(prepaid is included in this line item)
O. How much cash was paid to repay long term debt during the current year?
Answer
Cash Flow Statement:
“How much cash…”
Financing section
Nothing; no line item
There is no long-term debt on the balance sheet.
P. How much cash was used to purchase long-term investments during the current year?
Answer
Cash Flow statement:
“How much cash”
Investing section
Purchases of equity method investments 1,900
Purchases of investments 125,000
Total 126,900
Q. What was the total price of goods provided to customers during the current year?
Answer
Income Statement: current year; price to customers is revenue
Revenue 1,835,922
R. How much loss did the company incur from selling assets during the current year?
Answer
Income Statement: Incur; loss, current year
Loss on disposal of assets 6,296
CHIPOTLE MEXICAN GRILL, INC.
CONSOLIDATED BALANCE SHEET
(in thousands, except per share data)
Open to View Financial Statement
|
|
|
December 31 |
|
|||||
|
|
|
2010 |
|
|
2009 |
|
||
|
Assets |
|
|
||||||
|
Current assets: |
|
|
||||||
|
Cash and cash equivalents |
|
$ |
224,838 |
|
|
$ |
219,566 |
|
|
Accounts receivable, net of allowance for doubtful |
|
|
5,658 |
|
|
|
4,763 |
|
|
Inventory |
|
|
7,098 |
|
|
|
5,614 |
|
|
Current deferred tax asset |
|
|
4,317 |
|
|
|
3,134 |
|
|
Prepaid expenses and other current assets |
|
|
16,016 |
|
|
|
14,377 |
|
|
Income tax receivable |
|
|
23,528 |
|
|
|
— |
|
|
Investments |
|
|
124,766 |
|
|
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
406,221 |
|
|
|
297,454 |
|
|
Leasehold improvements, property and equipment, net |
|
|
676,881 |
|
|
|
636,411 |
|
|
Other assets |
|
|
16,564 |
|
|
|
5,701 |
|
|
Goodwill |
|
|
21,939 |
|
|
|
21,939 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,121,605 |
|
|
$ |
961,505 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
||||||
|
Current liabilities: |
|
|
||||||
|
Accounts payable |
|
$ |
33,705 |
|
|
$ |
25,230 |
|
|
Accrued payroll and benefits |
|
|
50,336 |
|
|
|
41,404 |
|
|
Accrued liabilities |
|
|
38,892 |
|
|
|
31,216 |
|
|
Current portion of deemed landlord financing |
|
|
121 |
|
|
|
96 |
|
|
Income tax payable |
|
|
— |
|
|
|
4,207 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
123,054 |
|
|
|
102,153 |
|
|
Deferred rent |
|
|
123,667 |
|
|
|
106,395 |
|
|
Deemed landlord financing |
|
|
3,661 |
|
|
|
3,782 |
|
|
Deferred income tax liability |
|
|
50,525 |
|
|
|
38,863 |
|
|
Other liabilities |
|
|
9,825 |
|
|
|
6,851 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
310,732 |
|
|
|
258,044 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
||||||
|
Preferred stock, $0.01 par value, 600,000 shares authorized, no shares outstanding as of December 31, 2010 and 2009 |
|
|
— |
|
|
|
— |
|
|
Common stock, $0.01 par value, 230,000 shares authorized, 33,959 and 33,473 shares issued as of December 31, 2010 and 2009, respectively |
|
|
340 |
|
|
|
335 |
|
|
Additional paid-in capital |
|
|
594,331 |
|
|
|
539,880 |
|
|
Treasury stock, at cost, 2,885 and 1,990 shares at December 31, 2010 and 2009, respectively |
|
|
(240,918 |
) |
|
|
(114,316 |
) |
|
Accumulated other comprehensive income |
|
|
606 |
|
|
|
29 |
|
|
Retained earnings |
|
|
456,514 |
|
|
|
277,533 |
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity |
|
|
810,873 |
|
|
|
703,461 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
1,121,605 |
|
|
$ |
961,505 |
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to consolidated financial statements.
CHIPOTLE MEXICAN GRILL, INC.
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data)
Open to View Financial Statement
|
|
|
Years ended |
|
|||||||||
|
|
|
2010 |
|
|
2009 |
|
|
2008 |
|
|||
|
Revenue |
|
$ |
1,835,922 |
|
|
$ |
1,518,417 |
|
|
$ |
1,331,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant operating costs (exclusive of depreciation |
|
|
|
|||||||||
|
Food, beverage and packaging |
|
|
561,107 |
|
|
|
466,027 |
|
|
|
431,947 |
|
|
Labor |
|
|
453,573 |
|
|
|
385,072 |
|
|
|
351,005 |
|
|
Occupancy |
|
|
128,933 |
|
|
|
114,218 |
|
|
|
98,071 |
|
|
Other operating costs |
|
|
202,904 |
|
|
|
174,581 |
|
|
|
164,018 |
|
|
General and administrative expenses |
|
|
118,590 |
|
|
|
99,149 |
|
|
|
89,155 |
|
|
Depreciation and amortization |
|
|
68,921 |
|
|
|
61,308 |
|
|
|
52,770 |
|
|
Pre-opening costs |
|
|
7,767 |
|
|
|
8,401 |
|
|
|
11,624 |
|
|
Loss on disposal of assets |
|
|
6,296 |
|
|
|
5,956 |
|
|
|
9,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
1,548,091 |
|
|
|
1,314,712 |
|
|
|
1,207,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
287,831 |
|
|
|
203,705 |
|
|
|
124,039 |
|
|
Interest and other income |
|
|
1,499 |
|
|
|
925 |
|
|
|
3,469 |
|
|
Interest and other expense |
|
|
(269 |
) |
|
|
(405 |
) |
|
|
(302 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
289,061 |
|
|
|
204,225 |
|
|
|
127,206 |
|
|
Provision for income taxes |
|
|
(110,080 |
) |
|
|
(77,380 |
) |
|
|
(49,004 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
178,981 |
|
|
$ |
126,845 |
|
|
$ |
78,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|||||||||
|
Basic |
|
$ |
5.73 |
|
|
$ |
3.99 |
|
|
$ |
2.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
5.64 |
|
|
$ |
3.95 |
|
|
$ |
2.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|||||||||
|
Basic |
|
|
31,234 |
|
|
|
31,766 |
|
|
|
32,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
31,735 |
|
|
|
32,102 |
|
|
|
33,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to consolidated financial statements.
CHIPOTLE MEXICAN GRILL, INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME
(in thousands)
Open to View Financial Statement
|
|
|
Common Stock |
|
|
Additional |
|
|
Treasury Stock |
|
|
Retained |
|
|
Accumulated |
|
|
Total |
|
||||||||||||||
|
|
|
Shares |
|
|
Amount |
|
|
|
Shares |
|
|
Amount |
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2009 |
|
|
33,473 |
|
|
|
335 |
|
|
|
539,880 |
|
|
|
1,990 |
|
|
|
(114,316 |
) |
|
|
277,533 |
|
|
|
29 |
|
|
|
703,461 |
|
|
Stock-based compensation |
|
|
166 |
|
|
|
2 |
|
|
|
22,278 |
|
|
|
|
|
|
|
22,280 |
|
||||||||||||
|
Stock option exercises |
|
|
320 |
|
|
|
3 |
|
|
|
17,647 |
|
|
|
|
|
|
|
17,650 |
|
||||||||||||
|
Excess tax benefit on stock-based compensation |
|
|
|
|
14,526 |
|
|
|
|
|
|
|
14,526 |
|
||||||||||||||||||
|
Acquisition of treasury stock |
|
|
|
|
|
895 |
|
|
|
(126,602 |
) |
|
|
|
|
(126,602 |
) |
|||||||||||||||
|
Comprehensive income: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Net income |
|
|
|
|
|
|
|
178,981 |
|
|
|
|
178,981 |
|
||||||||||||||||||
|
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
577 |
|
|
|
577 |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
179,558 |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, |
|
|
33,959 |
|
|
$ |
340 |
|
|
$ |
594,331 |
|
|
|
2,885 |
|
|
$ |
(240,918 |
) |
|
$ |
456,514 |
|
|
$ |
606 |
|
|
$ |
810,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to consolidated financial statements.
CHIPOTLE MEXICAN GRILL, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Open to View Financial Statement
|
|
|
Years ended |
|
|||||||||
|
|
2010 |
|
|
2009 |
|
|
2008 |
|
||||
|
Operating activities |
|
|
|
|||||||||
|
Net income |
|
$ |
178,981 |
|
|
$ |
126,845 |
|
|
$ |
78,202 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|||||||||
|
Depreciation and amortization |
|
|
68,921 |
|
|
|
61,308 |
|
|
|
52,770 |
|
|
Deferred income tax provision |
|
|
10,064 |
|
|
|
8,282 |
|
|
|
13,165 |
|
|
Change in valuation allowance |
|
|
415 |
|
|
|
141 |
|
|
|
89 |
|
|
Loss on disposal of assets |
|
|
6,296 |
|
|
|
5,956 |
|
|
|
9,339 |
|
|
Bad debt allowance |
|
|
(151 |
) |
|
|
(245 |
) |
|
|
440 |
|
|
Stock-based compensation |
|
|
21,381 |
|
|
|
14,992 |
|
|
|
11,374 |
|
|
Excess tax benefit on stock-based compensation |
|
|
(14,526 |
) |
|
|
(10,435 |
) |
|
|
(284 |
) |
|
Other |
|
|
— |
|
|
|
222 |
|
|
|
(226 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|||||||||
|
Accounts receivable |
|
|
(743 |
) |
|
|
(875 |
) |
|
|
1,290 |
|
|
Inventory |
|
|
(1,481 |
) |
|
|
(825 |
) |
|
|
(457 |
) |
|
Prepaid expenses and other current assets and |
|
|
(1,632 |
) |
|
|
(2,613 |
) |
|
|
(2,767 |
) |
|
Other assets |
|
|
(8,956 |
) |
|
|
374 |
|
|
|
(2,673 |
) |
|
Accounts payable |
|
|
6,989 |
|
|
|
1,435 |
|
|
|
3,635 |
|
|
Accrued liabilities |
|
|
16,607 |
|
|
|
19,804 |
|
|
|
(529 |
) |
|
Income tax receivable/payable |
|
|
(13,209 |
) |
|
|
14,927 |
|
|
|
9,534 |
|
|
Deferred rent |
|
|
17,261 |
|
|
|
19,386 |
|
|
|
23,817 |
|
|
Other long-term liabilities |
|
|
2,974 |
|
|
|
1,994 |
|
|
|
1,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
289,191 |
|
|
|
260,673 |
|
|
|
198,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|||||||||
|
Purchases of leasehold improvements, property and |
|
|
(113,215 |
) |
|
|
(117,198 |
) |
|
|
(152,101 |
) |
|
Purchases of equity method investment |
|
|
(1,900 |
) |
|
|
— |
|
|
|
— |
|
|
Purchases of investments |
|
|
(125,000 |
) |
|
|
(50,000 |
) |
|
|
(99,990 |
) |
|
Maturities of investments |
|
|
50,234 |
|
|
|
99,990 |
|
|
|
20,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(189,881 |
) |
|
|
(67,208 |
) |
|
|
(232,091 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|||||||||
|
Acquisition of treasury stock |
|
|
(126,602 |
) |
|
|
(84,089 |
) |
|
|
(30,227 |
) |
|
Proceeds from option exercises |
|
|
17,650 |
|
|
|
11,793 |
|
|
|
471 |
|
|
Excess tax benefit on stock-based compensation |
|
|
14,526 |
|
|
|
10,435 |
|
|
|
284 |
|
|
Payments on deemed landlord financing |
|
|
(96 |
) |
|
|
(82 |
) |
|
|
(76 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
|
(94,522 |
) |
|
|
(61,943 |
) |
|
|
(29,548 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
484 |
|
|
|
— |
|
|
|
— |
|
|
Net change in cash and cash equivalents |
|
|
5,272 |
|
|
|
131,522 |
|
|
|
(63,132 |
) |
|
Cash and cash equivalents at beginning of year |
|
|
219,566 |
|
|
|
88,044 |
|
|
|
151,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year |
|
$ |
224,838 |
|
|
$ |
219,566 |
|
|
$ |
88,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5. Answer the following questions using the 4 financial statements below for NetFlix, Inc.
A. How much is owed related to leases, to date?
Answer
Balance Sheet: “Owe”
Current portion of lease financing obligations 2,083
Lease financing obligations, excluding current portion 34,123
Total 36,206
B. How much has been paid for content that has not been used up, net, to date?
Answer
Balance Sheet:
“To Date”
Prepaid content 62,217
Current content library, net 181,006
Content library, net 180,973
Total 424,196
C. How much cash did the company pay to acquire its own stock during the year?
Answer
Cash Flow Statement: “How much cash..” Financing section
Repurchases of common stock 210,959
D. How much is owed the company from customers, net, to date?
Answer
Balance Sheet:
“To Date”
No specific line item for “Accounts Receivable”
The amount is most likely very small and included in other current assets
Customers normally pay before or at the same time the service is received.
E. What was the total price of services provided to customers during the current year?
Answer
Income Statement: current year;
price to customers is revenue
Revenues 2,162,625
F. How much cash does the company have in the bank or invested with no interest rate risk, to date?
Answer
Balance sheet: “To Date”
Cash and cash equivalents 194,499
(Do not include short-term investments; short-term investments have risk)
G. How much was incurred to acquire customers during the current year?
Answer
Income Statement:
Incurred, current year, operating expense
Marketing 293,839
H. How much does the Company owe related to operating costs, to date?
Answer
Balance Sheet: “Owe”
Accounts payable 222,824
Accrued expenses 36,489
Total 259,313
I. How much cash was paid for dividends during the current year?
Answer
Cash Flow Statement:
“How much cash”
Financing section
No dividends were paid; no line item
(growth company)
J. How much does the company have in assets that are held for sale to customers, to date?
Answer
Balance Sheet:
“Have”
Nothing. No line for inventory.
The company does not sell their content physically to customers; content is used by customers who pay a fee to view content.
K. How much must be paid to the government for earnings during the current year?
Answer
Income Statement:
Earnings; current year
Provision for income taxes 106,843
L. How much has been contributed by stockholders, to date?
Answer
Balance Sheet: “To Date”
Common Stock 53
Additional paid in capital 51,622
Total 51,675
M. What is the total cost of providing services to customers?
Answer
Income Statement:
Cost of providing is an expense; current year
Total cost of revenues 1,357,355
N. How much has been paid for services not yet provided to the company, to date?
Answer
Balance Sheet: To Date
Prepaid content 62,217
O. How much cash was used to acquire DVD content during the current year?
Answer
Cash Flow statement:
“How much cash”: Investing section
Acquisition of DVD content library 123,901
P. How much did the company earn for each share of common stock outstanding during the current year?
Answer
Income Statement: Incur; current year
Net income per share:
Basic: $3.06
Diluted: $2.96
Q. How much has been received from customers before content is provided, to date?
Answer
Balance Sheet: To Date
Current deferred revenue 127,183
R. What is the company’s profit or loss less dividends, cumulative to date?
Answer
Balance Sheet:
“To Date”
Retained Earnings 237,739
S. What amount did the company gain from selling DVDs during the current year?
Answer
Income Statement:
Gain, during the current year
Gain on disposal of DVDs 6,094
(this is reported as a negative; loss)
T. How many shares of stock did the company repurchase from stockholders during the current year?
Answer
Statement of Stockholder’s Equity:
from stockholders; current year
Repurchases of common stock
2,606,309, in the share column; not dollars
U. How much cash was received from owners during the current year?
Answer
Cash Flow Statement:
“How much cash…”
Financing section
Proceeds from issuance of common stock 49,776
V. How much cash was paid to purchase non physical assets used long-term to produce revenue during the current year?
Answer
Cash Flow Statement: How much cash…
Investing section
Acquisition of Intangible assets 505
(Other assets of (70) could also be included; there is no explanation of what this is)
NETFLIX, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
Open to View Financial Statement
|
|
|
As of |
|
|||||
|
|
|
2010 |
|
|
2009 |
|
||
|
Assets |
|
|
||||||
|
Current assets: |
|
|
||||||
|
Cash and cash equivalents |
|
$ |
194,499 |
|
|
$ |
134,224 |
|
|
Short-term investments |
|
|
155,888 |
|
|
|
186,018 |
|
|
Current content library, net |
|
|
181,006 |
|
|
|
37,329 |
|
|
Prepaid content |
|
|
62,217 |
|
|
|
26,741 |
|
|
Other current assets |
|
|
47,357 |
|
|
|
26,701 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
640,967 |
|
|
|
411,013 |
|
|
Content library, net |
|
|
180,973 |
|
|
|
108,810 |
|
|
Property and equipment, net |
|
|
128,570 |
|
|
|
131,653 |
|
|
Deferred tax assets |
|
|
17,467 |
|
|
|
15,958 |
|
|
Other non-current assets |
|
|
14,090 |
|
|
|
12,300 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
982,067 |
|
|
$ |
679,734 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
||||||
|
Current liabilities: |
|
|
||||||
|
Accounts payable |
|
$ |
222,824 |
|
|
$ |
92,542 |
|
|
Accrued expenses |
|
|
36,489 |
|
|
|
33,387 |
|
|
Current portion of lease |
|
|
2,083 |
|
|
|
1,410 |
|
|
Deferred revenue |
|
|
127,183 |
|
|
|
100,097 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
388,579 |
|
|
|
227,436 |
|
|
Long-term debt |
|
|
200,000 |
|
|
|
200,000 |
|
|
Lease financing obligations, excluding current portion |
|
|
34,123 |
|
|
|
36,572 |
|
|
Other non-current liabilities |
|
|
69,201 |
|
|
|
16,583 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
691,903 |
|
|
|
480,591 |
|
|
Commitments and contingencies (Note 5) |
|
|
||||||
|
Stockholders’ equity: |
|
|
||||||
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized at December 31, 2010 and 2009; |
|
|
— |
|
|
|
— |
|
|
Common stock, $0.001 par value; 160,000,000 shares authorized at December 31, 2010 and 2009; |
|
|
53 |
|
|
|
53 |
|
|
Additional paid-in capital |
|
|
51,622 |
|
|
|
— |
|
|
Accumulated other comprehensive income |
|
|
750 |
|
|
|
273 |
|
|
Retained earnings |
|
|
237,739 |
|
|
|
198,817 |
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
290,164 |
|
|
|
199,143 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
982,067 |
|
|
$ |
679,734 |
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to consolidated financial statements.
NETFLIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Open to View Financial Statement
|
|
|
Year ended |
|
|||||||||
|
|
|
2010 |
|
|
2009 |
|
|
2008 |
|
|||
|
Revenues |
|
$ |
2,162,625 |
|
|
$ |
1,670,269 |
|
|
$ |
1,364,661 |
|
|
Cost of revenues: |
|
|
|
|||||||||
|
Subscription |
|
|
1,154,109 |
|
|
|
909,461 |
|
|
|
761,133 |
|
|
Fulfillment expenses |
|
|
203,246 |
|
|
|
169,810 |
|
|
|
149,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of revenues |
|
|
1,357,355 |
|
|
|
1,079,271 |
|
|
|
910,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
805,270 |
|
|
|
590,998 |
|
|
|
454,427 |
|
|
Operating expenses: |
|
|
|
|||||||||
|
Technology and development |
|
|
163,329 |
|
|
|
114,542 |
|
|
|
89,873 |
|
|
Marketing |
|
|
293,839 |
|
|
|
237,744 |
|
|
|
199,713 |
|
|
General and administrative |
|
|
70,555 |
|
|
|
51,333 |
|
|
|
49,662 |
|
|
Gain on disposal of DVDs |
|
|
(6,094 |
) |
|
|
(4,560 |
) |
|
|
(6,327 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
521,629 |
|
|
|
399,059 |
|
|
|
332,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
283,641 |
|
|
|
191,939 |
|
|
|
121,506 |
|
|
Other income (expense): |
|
|
|
|||||||||
|
Interest expense |
|
|
(19,629 |
) |
|
|
(6,475 |
) |
|
|
(2,458 |
) |
|
Interest and other income |
|
|
3,684 |
|
|
|
6,728 |
|
|
|
12,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
267,696 |
|
|
|
192,192 |
|
|
|
131,500 |
|
|
Provision for income taxes |
|
|
106,843 |
|
|
|
76,332 |
|
|
|
48,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
160,853 |
|
|
$ |
115,860 |
|
|
$ |
83,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|||||||||
|
Basic |
|
$ |
3.06 |
|
|
$ |
2.05 |
|
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
2.96 |
|
|
$ |
1.98 |
|
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|||||||||
|
Basic |
|
|
52,529 |
|
|
|
56,560 |
|
|
|
60,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
54,304 |
|
|
|
58,416 |
|
|
|
62,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to consolidated financial statements.
NETFLIX, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME
(in thousands, except share data)
Open to View Financial Statement
|
|
|
Common Stock |
|
|
Additional |
|
|
Treasury |
|
|
Accumulated |
|
|
Retained |
|
|
Total |
|
||||||||||
|
|
|
Shares |
|
|
Amount |
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2009 |
|
|
53,440,073 |
|
|
$ |
53 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
273 |
|
|
$ |
198,817 |
|
|
$ |
199,143 |
|
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
160,853 |
|
|
|
160,853 |
|
|
Unrealized gains on available-for-sale securities, net of taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
477 |
|
|
|
— |
|
|
|
477 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Comprehensive income, net of taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
161,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Issuance of common stock upon exercise of options |
|
|
1,902,073 |
|
|
|
2 |
|
|
|
47,080 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
47,082 |
|
|
Issuance of common stock under employee stock purchase plan |
|
|
46,112 |
|
|
|
— |
|
|
|
2,694 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,694 |
|
|
Repurchases of common stock |
|
|
(2,606,309 |
) |
|
|
(2 |
) |
|
|
(88,326 |
) |
|
|
— |
|
|
|
— |
|
|
|
(121,931 |
) |
|
|
(210,259 |
) |
|
Stock-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
27,996 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27,996 |
|
|
Excess stock option income tax benefits |
|
|
— |
|
|
|
— |
|
|
|
62,178 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
62,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2010 |
|
|
52,781,949 |
|
|
$ |
53 |
|
|
$ |
51,622 |
|
|
$ |
— |
|
|
$ |
750 |
|
|
$ |
237,739 |
|
|
$ |
290,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETFLIX, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Open to View Financial Statement
|
|
|
Year Ended |
|
|||||||||
|
|
|
2010 |
|
|
2009 |
|
|
2008 |
|
|||
|
Cash flows from operating activities: |
|
|
|
|||||||||
|
Net income |
|
$ |
160,853 |
|
|
$ |
115,860 |
|
|
$ |
83,026 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|||||||||
|
Acquisition of streaming content library |
|
|
(406,210 |
) |
|
|
(64,217 |
) |
|
|
(48,290 |
) |
|
Amortization of content library |
|
|
300,596 |
|
|
|
219,490 |
|
|
|
209,757 |
|
|
Depreciation and amortization of property, equipment and intangibles |
|
|
38,099 |
|
|
|
38,044 |
|
|
|
32,454 |
|
|
Amortization of discounts and premiums on investments |
|
|
859 |
|
|
|
607 |
|
|
|
625 |
|
|
Amortization of debt issuance costs |
|
|
514 |
|
|
|
1,124 |
|
|
|
— |
|
|
Stock-based compensation expense |
|
|
27,996 |
|
|
|
12,618 |
|
|
|
12,264 |
|
|
Excess tax benefits from stock-based compensation |
|
|
(62,214 |
) |
|
|
(12,683 |
) |
|
|
(5,220 |
) |
|
Loss on disposal of property and equipment |
|
|
394 |
|
|
|
254 |
|
|
|
101 |
|
|
Gain on sale of short-term investments |
|
|
(1,033 |
) |
|
|
(1,509 |
) |
|
|
(3,130 |
) |
|
Gain on disposal of DVDs |
|
|
(9,862 |
) |
|
|
(7,637 |
) |
|
|
(13,350 |
) |
|
Gain on sale of business |
|
|
— |
|
|
|
(1,783 |
) |
|
|
— |
|
|
Deferred taxes |
|
|
(962 |
) |
|
|
6,328 |
|
|
|
(5,905 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|||||||||
|
Prepaid content |
|
|
(35,476 |
) |
|
|
(5,643 |
) |
|
|
(13,458 |
) |
|
Other current assets |
|
|
(21,763 |
) |
|
|
(5,358 |
) |
|
|
9,277 |
|
|
Accounts payable |
|
|
139,983 |
|
|
|
(1,189 |
) |
|
|
7,111 |
|
|
Accrued expenses |
|
|
67,209 |
|
|
|
13,169 |
|
|
|
(1,824 |
) |
|
Deferred revenue |
|
|
27,086 |
|
|
|
16,970 |
|
|
|
11,462 |
|
|
Other assets and |
|
|
50,332 |
|
|
|
618 |
|
|
|
9,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
276,401 |
|
|
|
325,063 |
|
|
|
284,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|||||||||
|
Acquisition of DVD content library |
|
|
(123,901 |
) |
|
|
(193,044 |
) |
|
|
(162,849 |
) |
|
Purchases of short-term investments |
|
|
(107,362 |
) |
|
|
(228,000 |
) |
|
|
(256,959 |
) |
|
Proceeds from sale of short-term investments |
|
|
120,857 |
|
|
|
166,706 |
|
|
|
304,163 |
|
|
Proceeds from maturities of short-term investments |
|
|
15,818 |
|
|
|
35,673 |
|
|
|
3,170 |
|
|
Purchases of property and equipment |
|
|
(33,837 |
) |
|
|
(45,932 |
) |
|
|
(43,790 |
) |
|
Proceeds from sale of DVDs |
|
|
12,919 |
|
|
|
11,164 |
|
|
|
18,368 |
|
|
Acquisitions of intangible assets |
|
|
(505 |
) |
|
|
(200 |
) |
|
|
(1,062 |
) |
|
Investment in business |
|
|
— |
|
|
|
— |
|
|
|
(6,000 |
) |
|
Proceeds from sale of business |
|
|
— |
|
|
|
7,483 |
|
|
|
— |
|
|
Other assets |
|
|
(70 |
) |
|
|
71 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(116,081 |
) |
|
|
(246,079 |
) |
|
|
(144,960 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|||||||||
|
Principal payments of lease financing obligations |
|
|
(1,776 |
) |
|
|
(1,158 |
) |
|
|
(823 |
) |
|
Proceeds from issuance of common stock |
|
|
49,776 |
|
|
|
35,274 |
|
|
|
18,872 |
|
|
Excess tax benefits from stock-based compensation |
|
|
62,214 |
|
|
|
12,683 |
|
|
|
5,220 |
|
|
Borrowings on line of credit, net of issuance costs |
|
|
— |
|
|
|
18,978 |
|
|
|
— |
|
|
Payments on line of credit |
|
|
— |
|
|
|
(20,000 |
) |
|
|
— |
|
|
Proceeds from issuance of debt, net of issuance costs |
|
|
— |
|
|
|
193,917 |
|
|
|
— |
|
|
Repurchases of common stock |
|
|
(210,259 |
) |
|
|
(324,335 |
) |
|
|
(199,904 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
|
(100,045 |
) |
|
|
(84,641 |
) |
|
|
(176,635 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
60,275 |
|
|
|
(5,657 |
) |
|
|
(37,558 |
) |
|
Cash and cash equivalents, beginning of year |
|
|
134,224 |
|
|
|
139,881 |
|
|
|
177,439 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of year |
|
$ |
194,499 |
|
|
$ |
134,224 |
|
|
$ |
139,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6. Answer the following questions using the 4 financial statements below for Green Mountain Coffee Roasters, Inc. for the most current year, 2010
A. How much cash did the company pay to acquire its own stock during the year?
Answer
Cash Flow Statement:
“How much cash…”
Financing section
Nothing; no repurchase of common stock or treasury stock
(No treasury stock on the balance sheet either)
B. How much do customers owe the company, that is expected to be collected, to date?
Answer
Balance Sheet:
“To Date”
Receivables, less …. 172,200
Answer
Balance sheet:
“Have”
Cash and cash equivalent 4,401
Restricted cash 355
Total 4,756
D. How much was incurred to run the day to day operations of the business during the current year?
Answer
Income Statement:
“Incurred”
Selling & operating expenses 186,418
General & Administrative expenses 100,568
Total 286,986
E. How much total cash was paid to stockholders for dividends during the current year?
Answer
Cash Flow Statement:
“How much cash…”
Financing section
Nothing; no line item
F. How much does the company have in assets that are held for sale to customers?
Answer
Balance Sheet: “Have”
Inventories 262,478
G. What is the company’s profit or loss less dividends, cumulative to date?
Answer
Balance Sheet:
“To Date”
Retained Earnings 213,844
H. How much must be paid to the federal government for earnings during the current year?
Answer
Income Statement:
Earnings; current year
Income Tax Expense 53,703
I. How much does the Company owe suppliers?
Answer
Balance Sheet:
“Owe”
Accounts Payable 139,220
J. What was the total price of goods provided to customers during the current year?
Answer
Income statement:
Sold, Current Year; price is what customers pay
Net Sales 1,356,775
K. How much has been contributed by stockholders to date?
Answer
Balance Sheet:
“To Date”
Common Stock 13,282
Capital in Excess of Par 473,749
Total 487,031
L. What is the cost of the products that were sold to customers during the current year?
Answer
Income statement:
Sold, Current Year;
cost of the company is an expense
Cost of sales 931,017
M. How much is owed banks and financing institutions that is payable within the next year?
Answer
Balance Sheet: “Owe”
Current portion of long-term debt 19,009
N. How much debt is owed that will be repaid in more than one year, to date?
Answer
Balance Sheet: To Date
Long-term debt 335,504
O. How much cash was received from borrowings of long-term debt during the current year?
Answer
Cash Flow statement:
“How much cash”
Financing section
Proceeds from borrowing of long-term debt
140,000
P. How much cash was used to purchase property, plant, and equipment during the current year?
Answer
Cash Flow statement:
“How much cash…”
Investing section
Capital expenditures for fixed assets 118,042
Q. How much cash was paid to acquire other companies during the current year?
Answer
Cash Flow statement:
“How much cash”
Investing section
Acquisition of Timothy’s Coffee of the World 154,208
Acquisition of Diedrich Coffee, Inc. 305,261
Total 459,469
R. How much cash was used to operate the business during the current year?
Answer
Cash Flow statement:
“How much cash”
Operating section
Net cash used by operating activities 10,535
S. How much is owed related to employees, to date?
Answer
Balance Sheet: “Owe”
Accrued compensation costs 24,236
T. How many shares of common stock were issued during the current year/
Answer
Statement of Stockholder’s Equity: common stock is owners’ equity
Options exercised 1,840,661
Issuance of common stock under
employee stock purchase plan 171,872
Total 2,012,533
List all increases to the common stock in the share column.
Green Mountain Coffee Roasters, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
Open to View Financial Statement
|
|
|
September 25, |
|
|
September 26, |
|
||
|
|
|
|
|
|
|
|
||
|
Assets |
|
|
||||||
|
Current assets: |
|
|
||||||
|
Cash and cash equivalents |
|
$ |
4,401 |
|
|
$ |
241,811 |
|
|
Restricted cash and cash equivalents |
|
|
355 |
|
|
|
280 |
|
|
Short-term investments |
|
|
— |
|
|
|
50,000 |
|
|
Receivables, less uncollectible accounts and return allowances of $14,056 and $4,792 at September 25, 2010 and September 26, 2009, respectively |
|
|
172,200 |
|
|
|
91,559 |
|
|
Inventories |
|
|
262,478 |
|
|
|
132,182 |
|
|
Income taxes receivable |
|
|
5,350 |
|
|
|
— |
|
|
Other current assets |
|
|
23,488 |
|
|
|
11,384 |
|
|
Deferred income taxes, net |
|
|
26,997 |
|
|
|
10,151 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
495,269 |
|
|
|
537,367 |
|
|
Fixed assets, net |
|
|
258,923 |
|
|
|
135,981 |
|
|
Intangibles, net |
|
|
220,005 |
|
|
|
36,478 |
|
|
Goodwill |
|
|
386,416 |
|
|
|
99,600 |
|
|
Other long-term assets |
|
|
9,961 |
|
|
|
3,979 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,370,574 |
|
|
$ |
813,405 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
||||||
|
Current liabilities: |
|
|
||||||
|
Current portion of long-term debt |
|
$ |
19,009 |
|
|
$ |
5,030 |
|
|
Accounts payable |
|
|
139,220 |
|
|
|
79,772 |
|
|
Accrued compensation costs |
|
|
24,236 |
|
|
|
17,264 |
|
|
Accrued expenses |
|
|
49,279 |
|
|
|
19,895 |
|
|
Income tax payable |
|
|
1,934 |
|
|
|
1,225 |
|
|
Other short-term liabilities |
|
|
4,377 |
|
|
|
3,257 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current |
|
|
238,055 |
|
|
|
126,443 |
|
|
Long-term debt |
|
|
335,504 |
|
|
|
73,013 |
|
|
Deferred income taxes, |
|
|
92,579 |
|
|
|
26,599 |
|
|
Other long-term liabilities |
|
|
5,191 |
|
|
|
— |
|
|
Commitments and contingencies (See Notes 6 and 22) |
|
|
||||||
|
Stockholders’ equity: |
|
|
||||||
|
Preferred stock, $0.10 par value: Authorized—1,000,000 shares; No shares issued or outstanding |
|
|
— |
|
|
|
— |
|
|
Common stock, $0.10 par value: Authorized—200,000,000 shares; Issued—132,823,585 and 130,811,052 |
|
|
13,282 |
|
|
|
13,081 |
|
|
Additional paid-in capital |
|
|
473,749 |
|
|
|
441,875 |
|
|
Retained earnings |
|
|
213,844 |
|
|
|
134,338 |
|
|
Accumulated other comprehensive loss |
|
|
(1,630 |
) |
|
|
(1,870 |
) |
|
ESOP unallocated shares, at cost—0 and 38,060 shares at September 25, 2010 and September 26, 2009, respectively |
|
|
— |
|
|
|
(74 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
699,245 |
|
|
|
587,350 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
1,370,574 |
|
|
$ |
813,405 |
|
|
|
|
|
|
|
|
|
|
|
Green Mountain Coffee Roasters, Inc.
Consolidated Statements of Operations
(Dollars in thousands except per share data)
Open to View Financial Statement
|
|
|
Fifty-two weeks ended |
|
|
Fifty-two weeks ended |
|
|
Fifty-two weeks ended |
|
|||
|
Net sales |
|
$ |
1,356,775 |
|
|
$ |
786,135 |
|
|
$ |
492,517 |
|
|
Cost of sales |
|
|
931,017 |
|
|
|
540,744 |
|
|
|
318,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
425,758 |
|
|
|
245,391 |
|
|
|
174,040 |
|
|
Selling and operating expenses |
|
|
186,418 |
|
|
|
121,350 |
|
|
|
90,882 |
|
|
General and administrative expenses |
|
|
100,568 |
|
|
|
47,655 |
|
|
|
38,480 |
|
|
Patent litigation (settlement) expense |
|
|
— |
|
|
|
(17,000 |
) |
|
|
3,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
138,772 |
|
|
|
93,386 |
|
|
|
41,399 |
|
|
Other income (expense) |
|
|
(269 |
) |
|
|
(662 |
) |
|
|
(235 |
) |
|
Interest expense |
|
|
(5,294 |
) |
|
|
(4,693 |
) |
|
|
(5,705 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
133,209 |
|
|
|
88,031 |
|
|
|
35,459 |
|
|
Income tax expense |
|
|
(53,703 |
) |
|
|
(33,592 |
) |
|
|
(13,790 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
79,506 |
|
|
$ |
54,439 |
|
|
$ |
21,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share: |
|
|
|
|||||||||
|
Weighted average shares outstanding |
|
|
131,529,412 |
|
|
|
113,979,588 |
|
|
|
107,774,091 |
|
|
Net income |
|
$ |
0.60 |
|
|
$ |
0.48 |
|
|
$ |
0.20 |
|
|
Diluted income per share: |
|
|
|
|||||||||
|
Weighted average shares outstanding |
|
|
137,834,123 |
|
|
|
120,370,659 |
|
|
|
115,041,510 |
|
|
Net income |
|
$ |
0.58 |
|
|
$ |
0.45 |
|
|
$ |
0.19 |
|
Green Mountain Coffee Roasters, Inc.
Consolidated Statements of Stockholders’ Equity
For the year in the period ended September 25, 2010 (Dollars in thousands)
Open to View Financial Statement
|
|
|
Common stock |
|
|
Additional |
|
|
Retained |
|
|
Accumulated |
|
|
ESOP |
|
|
Treasury stock |
|
|
Stockholders’ |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
|
|
Shares |
|
|
Amount |
|
|
|
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 26, 2009, as restated |
|
|
130,811,052 |
|
|
$ |
13,081 |
|
|
$ |
441,875 |
|
|
$ |
134,338 |
|
|
$ |
(1,870 |
) |
|
|
(38,060 |
) |
|
$ |
(74 |
) |
|
|
— |
|
|
$ |
— |
|
|
$ |
587,350 |
|
|
Options exercised |
|
|
1,840,661 |
|
|
|
184 |
|
|
|
4,586 |
|
|
|
|
|
|
|
|
|
4,770 |
|
||||||||||||||||||
|
Issuance of common stock under employee stock purchase plan |
|
|
171,872 |
|
|
|
17 |
|
|
|
3,999 |
|
|
|
|
|
|
|
|
|
4,016 |
|
||||||||||||||||||
|
Allocation of ESOP shares |
|
|
|
|
1,302 |
|
|
|
|
|
38,060 |
|
|
|
74 |
|
|
|
|
|
1,376 |
|
||||||||||||||||||
|
Stock compensation expense |
|
|
|
|
7,949 |
|
|
|
|
|
|
|
|
|
7,949 |
|
||||||||||||||||||||||||
|
Tax benefit from exercise of options |
|
|
|
|
13,877 |
|
|
|
|
|
|
|
|
|
13,877 |
|
||||||||||||||||||||||||
|
Deferred compensation expense |
|
|
|
|
161 |
|
|
|
|
|
|
|
|
|
161 |
|
||||||||||||||||||||||||
|
Other comprehensive income, net of tax |
|
|
|
|
|
|
240 |
|
|
|
|
|
|
|
240 |
|
||||||||||||||||||||||||
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
79,506 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
79,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 25, 2010 |
|
|
132,823,585 |
|
|
$ |
13,282 |
|
|
$ |
473,749 |
|
|
$ |
213,844 |
|
|
$ |
(1,630 |
) |
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
699,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Green Mountain Coffee Roasters, Inc.
Consolidated Statements of Cash Flows
(Dollars in thousands)
Open to View Financial Statement
|
|
|
Fifty-two weeks ended |
|
|
Fifty-two weeks ended |
|
|
Fifty-two weeks ended |
|
|||
|
Cash flows from operating activities: |
|
|
|
|||||||||
|
Net income |
|
$ |
79,506 |
|
|
$ |
54,439 |
|
|
$ |
21,669 |
|
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
|
|
|
|||||||||
|
Depreciation |
|
|
29,484 |
|
|
|
17,987 |
|
|
|
13,500 |
|
|
Amortization of intangibles |
|
|
14,973 |
|
|
|
5,318 |
|
|
|
4,812 |
|
|
Loss on disposal of fixed assets |
|
|
573 |
|
|
|
679 |
|
|
|
201 |
|
|
Provision for doubtful accounts |
|
|
610 |
|
|
|
243 |
|
|
|
1,159 |
|
|
Provision for sales returns |
|
|
40,139 |
|
|
|
15,943 |
|
|
|
8,251 |
|
|
(Gain) Loss on futures derivatives |
|
|
(188 |
) |
|
|
264 |
|
|
|
6 |
|
|
Tax (expense) from exercise of non-qualified options and disqualified dispositions of incentive stock options |
|
|
(713 |
) |
|
|
(399 |
) |
|
|
(386 |
) |
|
Excess tax benefits from equity-based compensation plans |
|
|
(14,590 |
) |
|
|
(10,761 |
) |
|
|
(6,168 |
) |
|
Tax expense from allocation of ESOP shares |
|
|
— |
|
|
|
(3 |
) |
|
|
(61 |
) |
|
Deferred income taxes |
|
|
(6,931 |
) |
|
|
1,683 |
|
|
|
549 |
|
|
Deferred compensation and stock compensation |
|
|
8,110 |
|
|
|
6,819 |
|
|
|
6,455 |
|
|
Contributions to the ESOP |
|
|
1,376 |
|
|
|
1,000 |
|
|
|
200 |
|
|
Changes in assets and liabilities, net of effects of acquisition: |
|
|
|
|||||||||
|
Receivables |
|
|
(102,297 |
) |
|
|
(52,963 |
) |
|
|
(24,819 |
) |
|
Inventories |
|
|
(116,653 |
) |
|
|
(47,650 |
) |
|
|
(44,662 |
) |
|
Income tax payable, net |
|
|
10,065 |
|
|
|
10,769 |
|
|
|
6,422 |
|
|
Other current assets |
|
|
(10,767 |
) |
|
|
(3,703 |
) |
|
|
(1,896 |
) |
|
Other long-term assets, |
|
|
(4,487 |
) |
|
|
1,769 |
|
|
|
(660 |
) |
|
Accounts payable |
|
|
32,844 |
|
|
|
25,834 |
|
|
|
8,667 |
|
|
Accrued compensation costs |
|
|
(1,830 |
) |
|
|
6,147 |
|
|
|
4,090 |
|
|
Accrued expenses |
|
|
23,405 |
|
|
|
5,083 |
|
|
|
4,617 |
|
|
Other short-term liabilities |
|
|
1,645 |
|
|
|
— |
|
|
|
— |
|
|
Other long-term liabilities |
|
|
5,191 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
|
|
(10,535 |
) |
|
|
38,498 |
|
|
|
1,946 |
|
|
Cash flows from investing activities: |
|
|
|
|||||||||
|
Proceeds from sale of short-term investments |
|
|
50,000 |
|
|
|
— |
|
|
|
— |
|
|
Proceeds from receipt of note receivable |
|
|
1,788 |
|
|
|
— |
|
|
|
— |
|
|
Acquisition of Timothy’s Coffee of the World Inc. |
|
|
(154,208 |
) |
|
|
— |
|
|
|
— |
|
|
Acquisition of Tully’s Coffee Corporation |
|
|
— |
|
|
|
(41,361 |
) |
|
|
— |
|
|
Acquisition of Diedrich Coffee, Inc. |
|
|
(305,261 |
) |
|
|
— |
|
|
|
— |
|
|
Purchases of short-term investments |
|
|
— |
|
|
|
(50,000 |
) |
|
|
— |
|
|
Capital expenditures for fixed assets |
|
|
(118,042 |
) |
|
|
(48,298 |
) |
|
|
(48,718 |
) |
|
Proceeds from disposal of fixed assets |
|
|
526 |
|
|
|
162 |
|
|
|
407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(525,197 |
) |
|
|
(139,497 |
) |
|
|
(48,311 |
) |
|
Cash flows from financing activities: |
|
|
|
|||||||||
|
Net change in revolving line of credit |
|
|
145,000 |
|
|
|
(95,500 |
) |
|
|
33,500 |
|
|
Proceeds from issuance of common stock under compensation plans |
|
|
8,788 |
|
|
|
8,253 |
|
|
|
5,653 |
|
|
Proceeds from issuance of common stock for public equity offering |
|
|
— |
|
|
|
386,688 |
|
|
|
— |
|
|
Financing costs in connection with public equity offering |
|
|
— |
|
|
|
(16,895 |
) |
|
|
— |
|
|
Excess tax benefits from equity-based compensation plans |
|
|
14,590 |
|
|
|
10,761 |
|
|
|
6,168 |
|
|
Capital lease obligations |
|
|
(217 |
) |
|
|
— |
|
|
|
— |
|
|
Proceeds from borrowings of long-term debt |
|
|
140,000 |
|
|
|
50,000 |
|
|
|
— |
|
|
Deferred financing fees |
|
|
(1,339 |
) |
|
|
(1,084 |
) |
|
|
(907 |
) |
|
Repayment of long-term debt |
|
|
(8,500 |
) |
|
|
(217 |
) |
|
|
(63 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
298,322 |
|
|
|
342,006 |
|
|
|
44,351 |
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
(237,410 |
) |
|
|
241,007 |
|
|
|
(2,014 |
) |
|
Cash and cash equivalents at beginning of period |
|
|
241,811 |
|
|
|
804 |
|
|
|
2,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
4,401 |
|
|
$ |
241,811 |
|
|
$ |
804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|