DEXTER-CQA/TAT-QA-corpus huggingface dataset:
Our stock repurchase authorization does not have an expiration date and the pace of our repurchase activity will depend on factors such as our working capital needs, our cash requirements for acquisitions and dividend payments, our debt repayment obligations or repurchases of our debt, our stock price, and economic and market conditions. Our stock repurchases may be effected from time to time through open market purchases or pursuant to a rule 10b5-1 plan. Our stock repurchase program may be accelerated, suspended, delayed or discontinued at any time.
The significant changes in the financial statements noted in the table above are primarily due to the transition from sellthrough revenue recognition to sell-in revenue recognition as required by the New Revenue Standard, which eliminated the balance of deferred income on shipments to distributors, significantly reduced accounts receivable, and significantly increased retained earnings. Prior to the acquisition of Microsemi, Microsemi already recognized revenue on a sell-in basis, so the impact of the adoption of the New Revenue Standard was primarily driven by Microchip's historical business excluding Microsemi.
|Balance Sheet|ASSETS|Accounts receivable, net|Inventories|Other current assets|Other assets|Long-term deferred tax assets|LIABILITIES|Accrued liabilities|Deferred income on shipments to distributors|Long-term deferred tax liability|STOCKHOLDERS' EQUITY|Retained Earnings
|As reported||$880.6|$711.7|$191.6|$111.8|$1,677.2||$787.3|$—|$706.1||$3,210.6
As of March 31, 2019|Balances without adoption of New Revenue Standard||$556.1|$724.2|$154.7|$106.3|$1,700.7||$420.3|$288.2|$689.3||$2,975.3
|Effect of Change Higher / (Lower)||$324.5|$(12.5)|$36.9|$5.5|$(23.5)||$367.0|$(288.2)|$16.8||$235.3
On April 1, 2018, the Company adopted ASU 2014-09-Revenue from Contracts with Customers (ASC 606) and all related amendments (“New Revenue Standard”) using the modified retrospective method. The Company has applied the new revenue standard to all contracts that were entered into after adoption and to all contracts that were open as of the initial date of adoption. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of the new standard impacts the Company's net sales on an ongoing basis depending on the relative amount of revenue sold through its distributors, the change in inventory held by its distributors, and the changes in price concessions granted to its distributors. Previously, the Company deferred revenue and cost of sales on shipments to distributors until the distributor sold the product to their end customer. As required by the new revenue standard, the Company no longer defers revenue and cost of sales, but rather, estimates the effects of returns and allowances provided to distributors and records revenue at the time of sale to the distributor. Sales to non-distributor customers, under both the previous and new revenue standards, are generally recognized upon the Company’s shipment of the product. The cumulative effect of the changes made to the consolidated April 1, 2018 balance sheet for the adoption of the new revenue standard is summarized in the table of opening balance sheet adjustments below. In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the consolidated income statement and balance sheet for the period ended March 31, 2019 was as follows (in millions):
Accounts receivable represent amounts owing to us that are currently due and collectible. We initially recognize accounts receivable on the date they originate. We measure accounts receivable initially at fair value, and subsequently at amortized cost, with changes recognized in net income. We measure an impairment loss for accounts receivable as the excess of the carrying amount over the present value of future cash flows we expect to derive from it, if any. The excess is allocated to an allowance for doubtful accounts and recognized as a loss in net income.
|2020|2021|2022|2023|2024|2025-2029|Total
U.S. Pension Plans|$15,514|15,399|15,218|14,983|14,706|68,594|$144,414
Non-U.S. Pension Plans|$46|54|82|69|84|715|$1,050
Post-Retirement Life Insurance Plan|$393|377|362|347|332|1,468|$3,279
£m|Overseas current tax|Current year|Deferred tax|Current period|Prior periods|– Adjustment to restate opening deferred tax at 17.0%|Income tax credit/ (charge)
2018/19||1.1||6.1|1.7|–|8.9
2017/18||0.8||(4.1)|(8.1)|(2.3)|(13.7)
Change||0.3||10.2|9.8|2.3|22.6
A deferred tax liability at 30 March 2019 of £13.5m compared to a liability of £12.1m at 31 March 2018. This movement is primarily due to a slightly higher pensions surplus reported at 30 March 2019 compared to 31 March 2018 reflecting the allowability for tax on pensions contribution payments. Recognised and unrecognised deferred tax assets relating to brought forward losses were approximately £44m at 30 March 2019 and equate to around £250m of future taxable profits.
|Within 1 year|After 1 year through 5 years|After 5 years through 10 years|After 10 years|Mortgage-backed securities with no single maturity|Total
Amortized Cost|$6,322|12,191|1,643|9|1,425|$21,590
Fair Value|$6,324|12,218|1,687|10|1,421|$21,660
||Revenue|Net deferral of revenue (see note 23)|Billings|Currency revaluation|Constant currency billings
Year-ended 31 March 2019|$M|710.6|49.7|760.3|25.9|786.2
Year-ended 31 March 2018 Restated See note 2|$M|639.0|129.6|768.6|18.7|787.3
Operating expenses consists of sales and marketing, general and administrative, and research and development. Selling, general and administrative expenses ("SG&A") consisted primarily of legal fees incurred in operations and employee headcount related expenses. These comprise approximately 60% of total SG&A expense. Litigation expenses increased $3.0 million to $19.4 million in 2019 compared to 2018 and are primarily due to the timing of various outstanding litigation actions. See "Item 3. Legal Proceedings". Employee headcount related expenses decreased $2.0 million to $3.6 million in 2019 compared to 2018, primarily due to lower incentive bonuses.
For the Years Ended December 31,||(In millions, except percentages)|Revenues|Cost of revenues|Gross profit|Gross margin|Operating expenses:|Selling, general and administrative|Research and development|Total operating expenses|Other expense|Income (loss) before income taxes|Income tax provision (benefit)|Net income (loss)
|2019||$13.2|1.9|11.3|86 %||31.7|2.0|33.7|(0.3)|(22.7)|(6.2)|$(16.5)
|2018||$82.3|15.3|67.0|81 %||32.2|2.1|34.3|(4.0)|28.7|8.0|$20.7
|Change||$(69.1)|(13.4)|(55.7)|||(0.5)|(0.1)|(0.6)|3.7|(51.4)|(14.2)|$(37.2)
|% Change||(84)%|(88)%|(83)%|||(2)%|(5)%|(2)%|(93)%|(179)%|(178)%|(180)%
(2) Represents accelerated vesting of 8,340 unvested performance restricted stock units. Pursuant to Mr. Clark’s performance restricted stock unit agreement (dated January 17, 2019), if Mr. Clark’s employment is terminated without cause or for good reason within six months following a “change in control” or if Mr. Clark's employment is terminated due to death or total disability, all non-vested units shall accelerate and be vested as of the date of termination.
(1) Represents accelerated vesting of 33,711 stock options. Pursuant to Mr. Clark’s stock option agreements (dated January 17, 2019), if Mr. Clark’s employment is terminated without cause or for good reason within six months following a “change in control”, he will become immediately vested in all outstanding unvested stock options, and all of Mr. Clark’s outstanding options shall remain exercisable in accordance with their terms, but in no event for less than 90 days after such termination. (1) Represents accelerated vesting of 33,711 stock options. Pursuant to Mr. Clark’s stock option agreements (dated January 17, 2019), if Mr. Clark’s employment is terminated without cause or for good reason within six months following a “change in control”, he will become immediately vested in all outstanding unvested stock options, and all of Mr. Clark’s outstanding options shall remain exercisable in accordance with their terms, but in no event for less than 90 days after such termination. (1) Represents accelerated vesting of 33,711 stock options. Pursuant to Mr. Clark’s stock option agreements (dated January 17, 2019), if Mr. Clark’s employment is terminated without cause or for good reason within six months following a “change in control”, he will become immediately vested in all outstanding unvested stock options, and all of Mr. Clark’s outstanding options shall remain exercisable in accordance with their terms, but in no event for less than 90 days after such termination.
Type of Payment|Cash Compensation (Salary & Non-Equity Incentive Compensation)|Value of Accelerated Vesting of Stock Option Awards|Value of Accelerated Vesting of Restricted Stock Unit Awards|Value of Accelerated Vesting of Performance Restricted Stock Unit Awards|Medical and Other Benefits|Total
Termination by Systemax without “Cause” or Resignation by Employee for “good reason” ($)|-|-|-|-|-|-
Termination Due to Death or Total Disability ($)|-|-|-|209,800 (2)|-|209,800
Change In Control Only ($)|-|-|-|-|-|-
Termination by Systemax without “Cause” or Resignation by Employee for “good reason” within a certain period of time following a Change in Control ($)|-|314,100 (1)|-|209,800 (2)|-|523,900
||(in thousands, except for per share data)|Net revenue|Gross profit(4)|Operating income(1)(4)(5)|Net (loss) income(2)(4)(5)|Net (loss) income attributable to Jabil Inc.(2)(4)(5)|(Loss) earnings per share attributable to the stockholders of Jabil Inc.|Basic|Diluted
||August 31, 2018|$5,771,831|442,147|153,896|(56,608)|$(57,314)||$(0.34)|$(0.34)
||May 31, 2018|$5,436,952|398,227|112,971|42,702|$42,541||$0.25|$0.25
Fiscal Year 2018|Three Months Ended|February 28, 2018|$5,301,101|397,133|129,532|37,528|$37,308||$0.21|$0.21
||November 30, 2017|$5,585,532|469,285|145,754|63,919|$63,795||$0.36|$0.35
The following table sets forth certain unaudited quarterly financial information for the 2019 and 2018 fiscal years. In the opinion of management, this information has been presented on the same basis as the audited consolidated financial statements appearing elsewhere, and all necessary adjustments (consisting primarily of normal recurring accruals) have been included in the amounts stated below to present fairly the unaudited quarterly results when read in conjunction with the audited consolidated financial statements and related notes thereto. The operating results for any quarter are not necessarily indicative of results for any future period.
||Net income from continuing operations|Basic weighted average common shares outstanding|Dilutive effect of stock options and RSUs|Dilutive effect of 2007 Junior Convertible Debt|Dilutive effect of 2015 Senior Convertible Debt|Dilutive effect of 2017 Senior Convertible Debt|Dilutive effect of 2017 Junior Convertible Debt|Diluted weighted average common shares outstanding|Basic net income per common share from continuing operations|Diluted net income per common share from continuing operations
|2019|$355.9|236.2|3.8|—|9.9|—|—|249.9|$1.51|$1.42
Year Ended March 31,|2018|$255.4|232.9|4.4|1.3|10.3|—|—|248.9|$1.10|$1.03
|2017|$170.6|217.2|4.4|12.7|0.5|—|—|234.8|$0.79|$0.73
|Grant date|Mid market share price at grant date|Number of employees|Shares under scheme|Vesting period|Probability of vesting|Fair value
2015 Grant|11th June|3,460.0p|15|70,290|3 years|71.5%|2,473.9p
2016 Grant|5th April|3,550.0p|13|69,890|3 years|70.8%|2,513.4p
2017 Grant|26th May|5,256.0p|12|62,356|3 years|73.1%|3,842.1p
2018 Grant|4th April|5,560.0p|12|60,899|3 years|73.5%|4,084.4p
2019 Grant|15th May|8,161.0p|12|60,626|3 years|74.1%|6,048.9p
Participating securities are composed of certain stock options granted under the 2015 Plan, and previously granted under the 2009 Equity Incentive Plan, that may be exercised before the options have vested. Unvested shares have a non-forfeitable right to dividends. Unvested shares issued as a result of early exercise are subject to repurchase by us upon termination of employment or services at the original exercise price. The common stock subject to repurchase is no longer classified as participating securities when shares revert to common stock outstanding as the awards vest and our repurchase right lapses.
Our redeemable noncontrolling interest relates to our 85% equity ownership interest in OpenEye. The OpenEye stockholder agreement contains a put option that gives the minority OpenEye stockholders the right to sell their OpenEye shares to us based on the fair value of the shares. The OpenEye stockholder agreement also contains a call option that gives us the right to purchase the remaining OpenEye shares from the minority OpenEye stockholders based on the fair value of the shares. The put and call options can each be exercised beginning in the first quarter of 2023. This redeemable noncontrolling interest is considered temporary equity and we report it between liabilities and stockholders’ equity in the consolidated balance sheets. The amount of the net income or loss attributable to redeemable noncontrolling interests is recorded in the consolidated statements of operations.
|Tax benefit computed at the statutory rate|State taxes|Book expenses not deductible for tax purposes|Rate Change|Other||Change in valuation allowance for deferred tax assets|Income tax (benefit) expense
2019|$(427,244)|6,525|2,980|45,656|2,517|(369,566)|269,203|$(100,363)
2018|$(631,497)|6,874|2,882|–|(27,286)|(649,027)|658,650|$9,623
||Buildings and land|Machinery and equipment|Computer and communication equipment|Furniture and fixtures|Vehicles|Leasehold improvements|Construction in process||Less: Accumulated depreciation|Property and equipment, net
December 31,|2019|$1,693|108,945|29,106|4,119|262|33,041|9,089|186,255|(78,146)|$108,109
|2018|$1,737|41,330|24,051|3,203|282|20,593|867|92,063|(60,794)|$31,269
|||Gross profit|Non-GAAP gross profit|Gross margin|Non-GAAP gross margin|Loss from operations|Non-GAAP income (loss) from operations|Operating margin|Non-GAAP operating margin|Net loss|Non-GAAP net income (loss)|Diluted net loss per share|Non-GAAP diluted net income (loss) per share|GAAP diluted weighted average shares used in per share calculation|Non-GAAP diluted weighted average shares used in per share calculation
|2019||$2,283.9|$2,317.0|89%|90%|$(25.0)|$316.0|(1)%|12%|$(80.8)|$223.3|$(0.37)|$1.01|218.9|222.0
Fiscal Year Ended January 31,|2018|(Unaudited)|$1,753.2|$1,785.5|85%|87%|$(509.1)|$(112.0)|(25)%|(5)%|$(566.9)|$(106.3)|$(2.58)|$(0.48)|219.5|219.5
|2017||$1,689.1|$1,743.2|83%|86%|$(499.6)|$(125.5)|(25)%|(6)%|$(582.1)|$(111.0)|$(2.61)|$(0.50)|222.7|222.7
For our internal budgeting and resource allocation process and as a means to provide consistency in period-to-period comparisons, we use non-GAAP measures to supplement our consolidated financial statements presented on a GAAP basis. These non-GAAP measures do not include certain items that may have a material impact upon our reported financial results. We also use non-GAAP measures in making operating decisions because we believe those measures provide meaningful supplemental information regarding our earning potential and performance for management by excluding certain benefits, credits, expenses and charges that may not be indicative of our core business operating results. For the reasons set forth below, we believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. This allows investors and others to better understand and evaluate our operating results and future prospects in the same manner as management, compare financial results across accounting periods and to those of peer companies and to better understand the long-term performance of our core business. We also use some of these measures for purposes of determining company-wide incentive compensation.
In addition to our results determined under U.S. generally accepted accounting principles (“GAAP”) discussed above, we believe the following non-GAAP measures are useful to investors in evaluating our operating performance. For the fiscal years ended January 31, 2019, 2018, and 2017, our gross profit, gross margin, (loss) income from operations, operating margin, net (loss) income, diluted net (loss) income per share and diluted shares used in per share calculation on a GAAP and non-GAAP basis were as follows (in millions except for gross margin, operating margin, and per share data):
||Domains|Hosting and presence|Business applications|Total revenue
Year Ended December 31,|2019|$ 1,351.6|1,126.5|510.0|$ 2,988.1
|2018|$ 1,220.3|1,017.6|422.2|$ 2,660.1
|2017|$ 1,057.2|847.9|326.8|$ 2,231.9
2019 to 2018|$ change|$ 131.3|108.9|87.8|$ 328.0
|% change|11 %|11 %|21 %|12 %
2018 to 2017|$ change|$ 163.1|169.7|95.4|$ 428.2
|% change|15 %|20 %|29 %|19 %
December 31, 2019||Assets:|Money market funds|U.S. government agencies|Corporate debt securities|Total|Liabilities:|Contingent consideration|Derivative liabilities|Total||December 31, 2018||Assets:|Money market funds|U.S. government agencies|Corporate debt securities|Derivative assets|Total|Liabilities:|Derivative liabilities|Stock warrant liability|Total
|Level 1||$107,708|—|—|$107,708||$—|—|$—|||Level 1||$273,546|—|—|—|$273,546||$—|—|$—
|Level 2||$—|77,364|207,137|$284,501||$—|748|$748|||Level 2||$—|72,840|228,953|623|$302,416||$549|—|$549
|Level 3||$—|—|—|$—||$1,889|—|$1,889|||Level 3||$—|—|—|—|$—||$—|410|$410
|Total||$107,708|77,364|207,137|$392,209||$1,889|748|$2,637|||Total||$273,546|72,840|228,953|623|$575,962||$549|410|$959
||Federal:|Current|Deferred||State:|Current|Deferred||Foreign:|Current|Deferred||Total income tax provision (benefit)
|January 31, 2020||$78|(219)|(141)||45|(44)|1||240|(5,018)|(4,778)|$(4,918)
For the Year Ended|February 1, 2019||$181|(92)|89||31|(10)|21||137|(8)|129|$239
|February 2, 2018||$688|275|963||8|21|29||156|4|160|$1,152
Total consolidated other (income) and expense was income of $968 million in 2019 compared to expense of $1,152 million in 2018. The year-to-year change was primarily driven by: • Lower non-operating retirement-related costs ($957 million). Refer to “Retirement-Related Plans” for additional information. • Higher gains from divestitures ($833 million) reflected in Other; and • Higher net exchange gains (including derivative instruments) ($272 million). The company’s hedging programs help mitigate currency impacts in the Consolidated Income Statement.
($ in millions)|For the year ended December 31:|Other (income) and expense|Foreign currency transaction losses/(gains)|(Gains)/losses on derivative instruments|Interest income|Net (gains)/losses from securities and investment assets|Retirement-related costs/(income)|Other|Total consolidated other (income) and expense|Non-operating adjustments|Amortization of acquired intangible assets|Acquisition-related charges|Non-operating retirement related costs/(income)|Operating (non-GAAP) other (income) and expense
|2019||$(279)|15|(349)|(32)|615|(937)|$(968)||(2)|154|(615)|$(1,431)
|2018||$(427)|434|(264)|(101)|1,572|(63)|$1,152||(2)|0|(1,572)|$(422)
|Yr.-to-Yr. Percent Change||(34.6)%|(96.6)|32.2|(67.9)|(60.9)|NM|NM||50.0%|NM|(60.9)%|239.4%
Contract liabilities include deferred revenues related to advanced payments for services and nonrefundable, upfront service activation and set-up fees, which under the new standard are generally deferred and amortized over the expected customer life as the option to renew without paying an upfront fee provides the customer with a material right. During the years ended December 31, 2019 and 2018, the Company deferred and recognized revenues of $397.5 million and $354.2 million, respectively.
The FCR liability is carried at fair value on a recurring basis in the Consolidated Balance Sheets and is estimated based on historical experience and management’s expectation of future FCR. The FCR liability is classified within Level 3 of the fair value hierarchy, as the primary component of the fair value is obtained from unobservable inputs based on the Company’s data, reasonably adjusted for assumptions that would be used by market participants. The following table reconciles the beginning and ending fair value measurements of our FCR liability during the periods indicated.
|Balance, December 31, 2017|HeavyWater and Ernst acquisitions (Note 3)|Balance, December 31, 2018|Compass Analytics acquisition (Note 3)|Balance, December 31, 2019
Software Solutions|$2,134.7|22.9|2,157.6|31.7|$2,189.3
Data and Analytics|$172.1|—|172.1|—|$172.1
Corporate and Other|$—|—|—|—|$—
Total|$2,306.8|22.9|2,329.7|31.7|$2,361.4
||2021 Notes|2022 Notes|2026 Notes|2027 Notes|2047 Notes|Total debt
|Gross Carrying Amount|650|400|850|400|400|$2,700
|Unamortized Discount and Deferred Financing Costs|(3)|(3)|(8)|(5)|(10)|$(29)
December 31, 2018|Net Carrying Amount|647|397|842|395|390|$2,671
Our effective tax rates for each of the periods presented are the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The more significant provisions of the Tax Act as applicable to us are described in Note 1 above under “Impacts of the U.S. Tax Cuts and Jobs Act of 2017.” During fiscal 2019, we recorded a net benefit of $389 million in accordance with SAB 118 related to adjustments in our estimates of the one-time transition tax on certain foreign subsidiary earnings, and the remeasurement of our net deferred tax assets and liabilities affected by the Tax Act. Our provision for income taxes for fiscal 2019 varied from the 21% U.S. statutory rate imposed by the Tax Act primarily due to earnings in foreign operations, state taxes, the U.S. research and development tax credit, settlements with tax authorities, the tax effects of stock-based compensation, the Foreign Derived Intangible Income deduction, the tax effect of GILTI, and a reduction to our transition tax recorded consistent with the provision of SAB 118. Our provision for income taxes for fiscal 2018 varied from the 21% U.S. statutory rate imposed by the Tax Act primarily due to the impacts of the Tax Act upon adoption, state taxes, the U.S. research and development tax credit, settlements with tax authorities, the tax effects of stock-based compensation and the U.S. domestic production activity deduction. Prior to the January 1, 2018 effective date of the Tax Act, our provision for income taxes historically differed from the tax computed at the previous U.S. federal statutory income tax rate due primarily to certain earnings considered as indefinitely reinvested in foreign operations, state taxes, the U.S. research and development tax cr edit, settlements with tax authorities, the tax effects of stock-based compensation and the U.S. domestic production activity deduction.
In May 2017, we adopted the 2017 Employee Stock Purchase Plan (the “2017 ESPP”). The 2017 ESPP grants employees the ability to designate a portion of their base-pay to purchase ordinary shares at a price equal to 85% of the fair market value of our ordinary shares on the first or last day of each 6 month purchase period. Purchase periods begin on January 1 or July 1 and end on June 30 or December 31, or the next business day if such date is not a business day. Shares are purchased on the last day of the purchase period.
||Weighted average expected term|Risk-free interest rate|Dividend yield|Volatility
Year Ended|December 27, 2019|0.5 years|2.3%|0.0%|56.0%
|December 28, 2018|0.5 years|1.9%|0.0%|52.7%
|December 29, 2017|0.4 years|1.1%|0.0%|47.8%