Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Fortinet Inc., consolidated statement of comprehensive income

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income including non-controlling interests	856,600)	606,700)	488,500)	326,500)	332,200)
Change in foreign currency translation	(9,700)	(3,800)	—)	—)	—)
Change in unrealized gains (losses) on investments	(6,200)	(3,500)	(200)	2,500)	—)
Tax (provision) benefit related to items of other comprehensive loss	1,400)	800)	(200)	(500)	—)
Other comprehensive income (loss)	(14,500)	(6,500)	(400)	2,000)	—)
Comprehensive income including non-controlling interests	842,100)	600,200)	488,100)	328,500)	332,200)
Comprehensive (income) loss attributable to non-controlling interests	(200)	1,100)	—)	—)	—)
Comprehensive income attributable to Fortinet, Inc.	841,900)	601,300)	488,100)	328,500)	332,200)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The financial data over the five-year period reveals a consistent upward trend in net income, indicating strong profitability growth. Net income including non-controlling interests increased from 332,200 thousand USD in 2018 to 856,600 thousand USD in 2022. This demonstrates significant expansion and improvement in the core earnings of the company.

Comprehensive income, inclusive of non-controlling interests, follows a similar growth trajectory, rising from 332,200 thousand USD in 2018 to 842,100 thousand USD in 2022. This trend suggests that not only has net income grown but other comprehensive income items have had an impact as well, although to a lesser extent.

Other Comprehensive Income (Loss) Trends: Other comprehensive income (loss) shows volatility and a downward trend across the observed years, beginning slightly positive in 2019 at 2,000 thousand USD and then turning negative, reaching a loss of 14,500 thousand USD by 2022. This decline is influenced mainly by:; - Increasing losses from changes in foreign currency translation, especially notable in 2021 (-3,800 thousand USD) and 2022 (-9,700 thousand USD).; - Persistent unrealized losses on investments from 2020 (-200 thousand USD) onwards, increasing in magnitude to -6,200 thousand USD in 2022.; - Minor tax benefits related to other comprehensive loss partially offsetting these losses, with positive values of 1,400 thousand USD recorded in 2022.

Non-controlling Interests: The comprehensive income loss attributable to non-controlling interests is relatively minor in magnitude compared to the overall comprehensive income attributable to the company. Recorded values include 1,100 thousand USD in 2021 and a slight negative figure of -200 thousand USD in 2022, indicating minimal impact on the total comprehensive income attributable to the company’s shareholders.

Overall, the data suggests strong core profitability with substantial growth in net income and comprehensive income attributable to the company. However, the negative trends in other comprehensive income components, particularly currency translation losses and investment unrealized losses, introduce some volatility and reduce the total comprehensive income gains. The company appears to be managing these losses effectively, as indicated by the tax benefits related to other comprehensive losses, and the net financial position remains positive and strengthening.

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Fortinet Inc. (NASDAQ:FTNT)

Statement of Comprehensive Income