2020 Form 10-K Financial Statement

#000010956320000083 Filed on August 14, 2020

View on sec.gov

Income Statement

Concept 2020 2019 Q2 2019
Revenue $3.246B $882.7M $3.473B
YoY Change -6.54% -1.67% 13.0%
Cost Of Revenue $2.308B $625.4M $2.465B
YoY Change -6.38% -1.36% 12.6%
Gross Profit $937.7M $257.4M $1.008B
YoY Change -6.94% -2.39% 13.99%
Gross Profit Margin 28.89% 29.16% 29.02%
Selling, General & Admin $717.7M $185.4M $742.2M
YoY Change -3.3% -3.89% 12.77%
% of Gross Profit 76.54% 72.03% 73.66%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $21.20M $15.30M $20.24M
YoY Change 4.74% -3.77% 13.7%
% of Gross Profit 2.26% 5.94% 2.01%
Operating Expenses $717.7M $185.4M $742.2M
YoY Change -3.3% -3.89% 12.77%
Operating Profit $88.99M $72.00M $233.8M
YoY Change -61.94% 1.69% 3.53%
Interest Expense $37.26M -$10.00M $40.79M
YoY Change -8.64% -6.54% 68.95%
% of Operating Profit 41.87% -13.89% 17.45%
Other Income/Expense, Net $2.782M $100.0K $881.0K
YoY Change 215.78% 0.0% -62.92%
Pretax Income $55.24M $62.10M $204.5M
YoY Change -72.98% 3.16% 9.41%
Income Tax $31.19M $20.10M $50.49M
% Of Pretax Income 56.47% 32.37% 24.69%
Net Earnings $24.04M $39.80M $144.0M
YoY Change -83.3% -1.49% 1.67%
Net Earnings / Revenue 0.74% 4.51% 4.15%
Basic Earnings Per Share $0.62 $3.72
Diluted Earnings Per Share $0.62 $1.021M $3.68
COMMON SHARES
Basic Shares Outstanding 38.66M shares 38.59M shares 38.67M shares
Diluted Shares Outstanding 39.00M shares 39.16M shares

Balance Sheet

Concept 2020 2019 Q2 2019
SHORT-TERM ASSETS
Cash & Short-Term Investments $268.6M $108.2M $108.2M
YoY Change 148.24% 99.63% 99.63%
Cash & Equivalents $268.6M $108.2M $108.2M
Short-Term Investments
Other Short-Term Assets $43.60M $51.46M $42.50M
YoY Change 2.59% 55.99% 28.79%
Inventory $389.2M $447.6M $447.6M
Prepaid Expenses
Receivables $458.4M $540.9M $549.8M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.160B $1.148B $1.148B
YoY Change 1.02% 8.52% 8.52%
LONG-TERM ASSETS
Property, Plant & Equipment $212.5M $124.3M $124.3M
YoY Change 70.96% 2.44% 2.47%
Goodwill $662.0M
YoY Change 2.37%
Intangibles $368.9M
YoY Change -15.39%
Long-Term Investments $12.30M $11.20M $11.20M
YoY Change 9.82%
Other Assets $15.20M $28.40M $17.20M
YoY Change -11.63% 19.38% -27.73%
Total Long-Term Assets $1.124B $1.184B $1.184B
YoY Change -5.05% -3.6% -3.59%
TOTAL ASSETS
Total Short-Term Assets $1.160B $1.148B $1.148B
Total Long-Term Assets $1.124B $1.184B $1.184B
Total Assets $2.284B $2.332B $2.332B
YoY Change -2.06% 2.01% 2.01%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $186.3M $237.3M $237.3M
YoY Change -21.49% -7.63% -7.63%
Accrued Expenses $89.10M $68.00M $68.00M
YoY Change 31.03% -7.36% -7.36%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $78.60M $49.04M $49.00M
YoY Change 60.41% 155.62% 155.21%
Total Short-Term Liabilities $426.1M $423.8M $423.8M
YoY Change 0.54% -2.02% -2.03%
LONG-TERM LIABILITIES
Long-Term Debt $855.1M $908.9M $908.9M
YoY Change -5.92% -3.78% -3.77%
Other Long-Term Liabilities $158.8M $102.0M $102.0M
YoY Change 55.69% 8.87% 8.86%
Total Long-Term Liabilities $1.014B $1.011B $1.011B
YoY Change 0.3% -2.64% -2.63%
TOTAL LIABILITIES
Total Short-Term Liabilities $426.1M $423.8M $423.8M
Total Long-Term Liabilities $1.014B $1.011B $1.011B
Total Liabilities $1.440B $1.435B $1.435B
YoY Change 0.37% -2.46% -2.45%
SHAREHOLDERS EQUITY
Retained Earnings $1.229B
YoY Change 8.81%
Common Stock $182.9M
YoY Change 1.98%
Preferred Stock
YoY Change
Treasury Stock (at cost) $415.2M
YoY Change 2.79%
Treasury Stock Shares 15.62M shares
Shareholders Equity $843.5M $897.0M $897.0M
YoY Change
Total Liabilities & Shareholders Equity $2.284B $2.332B $2.332B
YoY Change -2.06% 2.01% 2.01%

Cashflow Statement

Concept 2020 2019 Q2 2019
OPERATING ACTIVITIES
Net Income $24.04M $39.80M $144.0M
YoY Change -83.3% -1.49% 1.67%
Depreciation, Depletion And Amortization $21.20M $15.30M $20.24M
YoY Change 4.74% -3.77% 13.7%
Cash From Operating Activities $296.7M $103.4M $180.6M
YoY Change 64.29% 4.02% 22.6%
INVESTING ACTIVITIES
Capital Expenditures -$20.10M -$7.300M -$19.00M
YoY Change 5.79% 37.74% -18.1%
Acquisitions $37.24M $37.53M
YoY Change -0.77% -95.16%
Other Investing Activities $0.00 $400.0K -$391.0K
YoY Change -100.0% -85.19%
Cash From Investing Activities -$55.40M -$6.900M -$55.10M
YoY Change 0.55% 165.38% -93.09%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00 $11.16M
YoY Change -100.0% -51.01%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$78.24M -36.00M -$71.54M
YoY Change 9.36% -57.45% -111.92%
NET CHANGE
Cash From Operating Activities $296.7M 103.4M $180.6M
Cash From Investing Activities -$55.40M -6.900M -$55.10M
Cash From Financing Activities -$78.24M -36.00M -$71.54M
Net Change In Cash $160.3M 60.50M $54.07M
YoY Change 196.53% 395.9% -206.21%
FREE CASH FLOW
Cash From Operating Activities $296.7M $103.4M $180.6M
Capital Expenditures -$20.10M -$7.300M -$19.00M
Free Cash Flow $316.8M $110.7M $199.6M
YoY Change 58.72% 5.73% 17.07%

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<div style="line-height:120%;padding-top:4px;text-align:left;font-size:11pt;"><span style="font-family:Frutiger LT 55 Roman,sans-serif;font-size:11pt;color:#76787a;">Business</span></div><div style="line-height:120%;text-align:left;padding-left:18px;font-size:10pt;"><span style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;">Applied Industrial Technologies, Inc. and subsidiaries (the “Company” or “Applied”) is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO (Maintenance, Repair &amp; Operations) and OEM (Original Equipment Manufacturer) end users in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. Although the Company does not generally manufacture the products it sells, it does assemble and repair certain products and systems.</span></div>
CY2020 us-gaap Use Of Estimates
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<div style="line-height:120%;padding-top:8px;text-align:left;font-size:11pt;"><span style="font-family:Frutiger LT 55 Roman,sans-serif;font-size:11pt;color:#76787a;">Estimates</span></div><div style="line-height:120%;text-align:left;padding-left:18px;font-size:10pt;"><span style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. Actual results may differ from the estimates and assumptions used in preparing the consolidated financial statements.</span></div>
CY2020Q2 ait Inventory Percent From One Thousand Nine Hundred And Seventys Lifo Layers
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19320000 USD
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CY2020 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div style="line-height:120%;padding-top:8px;text-align:left;font-size:11pt;"><span style="font-family:Frutiger LT 55 Roman,sans-serif;font-size:11pt;color:#76787a;">Recently Issued Accounting Guidance</span></div><div style="line-height:120%;padding-top:8px;text-align:left;padding-left:18px;font-size:10pt;"><span style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;">In June 2016, the FASB issued its final standard on measurement of credit losses on financial instruments. This standard, issued as ASU 2016-13, requires that an entity measure impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. This update is effective for annual and interim financial statement periods beginning after December 15, 2019, with early adoption permitted for financial statement periods beginning after December 15, 2018. In November 2018, April 2019, May 2019, November 2019, and February 2020, the FASB issued ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2020-02, respectively, which clarify the guidance in ASU 2016-13. The Company has not yet determined the impact of these pronouncements on its financial statements and related disclosures.</span></div><div style="line-height:120%;padding-top:8px;text-align:left;padding-left:18px;font-size:10pt;"><span style="font-family:Frutiger LT 45 Light,sans-serif;font-size:10pt;">In December 2019, the FASB issued its final standard on simplifying the accounting for income taxes. This standard, issued as ASU 2019-12, makes a number of changes meant to add or clarify guidance on accounting for income taxes. This update is effective for annual and interim financial statement periods beginning after December 15, 2021, with early adoption permitted in any interim period for which financial statements have not yet been filed. The Company has not yet determined the impact of these pronouncements on its financial statements and related disclosures.</span></div>
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31594000 USD
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41553000 USD
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36100000 USD
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25351000 USD
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55236000 USD
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194481000 USD
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0.21
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0
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0
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0
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0.314
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0
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0
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0.013
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0.005
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0.004
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0.036
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0.007
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0
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0.012
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0.004
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0.003
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0 USD
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3498000 USD
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757000 USD
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7494000 USD
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8600000 USD
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75504000 USD
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23407000 USD
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0 USD
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38147000 USD
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105000 USD
CY2019 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
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105000 USD
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3988000 USD
CY2020 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Net Unamortized Gain Loss Arising During Period Before Tax
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CY2020 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
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CY2019 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Net Of Tax
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709000 USD
CY2018 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
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185000 USD
CY2018 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Net Of Tax
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524000 USD
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-66000 USD
CY2020 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
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177000 USD
CY2019 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
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1151000 USD
CY2020 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
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306000 USD
CY2019 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
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265000 USD
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4955000 USD
CY2019Q2 us-gaap Unrecognized Tax Benefits
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4979000 USD
CY2020 us-gaap Income Tax Examination Penalties And Interest Expense
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256000 USD
CY2019 us-gaap Income Tax Examination Penalties And Interest Expense
IncomeTaxExaminationPenaltiesAndInterestExpense
161000 USD
CY2020Q2 us-gaap Income Tax Examination Penalties And Interest Accrued
IncomeTaxExaminationPenaltiesAndInterestAccrued
1094000 USD
CY2019Q2 us-gaap Income Tax Examination Penalties And Interest Accrued
IncomeTaxExaminationPenaltiesAndInterestAccrued
838000 USD
CY2020Q2 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
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4708000 USD
CY2019Q2 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
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4701000 USD
CY2020Q2 ait Treasury Shares Restricted As Collateral Under Escrow
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CY2020 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Before Tax
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CY2020 us-gaap Other Comprehensive Income Loss Foreign Currency Translation Adjustment Tax
OtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentTax
265000 USD
CY2020 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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-18764000 USD
CY2019 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Before Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax
2021000 USD
CY2019 us-gaap Other Comprehensive Income Loss Foreign Currency Translation Adjustment Tax
OtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentTax
377000 USD
CY2019 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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1644000 USD
CY2020 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossTax
16000 USD
CY2020 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
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-50000 USD
CY2019 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Before Tax
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-306000 USD
CY2019 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossTax
80000 USD
CY2019 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossNetOfTax
-226000 USD
CY2018 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossBeforeTax
-73000 USD
CY2018 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossTax
28000 USD
CY2018 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss Reclassification After Tax
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0 USD
CY2020 us-gaap Other Comprehensive Income Loss Before Tax
OtherComprehensiveIncomeLossBeforeTax
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CY2020 us-gaap Other Comprehensive Income Loss Tax
OtherComprehensiveIncomeLossTax
-3190000 USD
CY2019 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss Reclassification Before Tax
OtherComprehensiveIncomeLossCashFlowHedgeGainLossReclassificationBeforeTax
-244000 USD
CY2019 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss Reclassification Tax
OtherComprehensiveIncomeLossCashFlowHedgeGainLossReclassificationTax
-61000 USD
CY2019 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss Reclassification After Tax
OtherComprehensiveIncomeLossCashFlowHedgeGainLossReclassificationAfterTax
-183000 USD
CY2018 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss Reclassification Before Tax
OtherComprehensiveIncomeLossCashFlowHedgeGainLossReclassificationBeforeTax
0 USD
CY2018 us-gaap Other Comprehensive Income Loss Cash Flow Hedge Gain Loss Reclassification Tax
OtherComprehensiveIncomeLossCashFlowHedgeGainLossReclassificationTax
0 USD
CY2018 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossNetOfTax
-45000 USD
CY2020 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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0 USD
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20000 USD
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0 USD
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319000 USD
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24042000 USD
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141625000 USD
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38658000 shares
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341000 shares
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0.62
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3.72
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3.65
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0.62
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3.68
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3.61
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726000 shares
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P2Y
CY2020 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
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P2Y
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2250000 shares
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2221000 shares
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33152000 USD
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45000 USD
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2400000 USD
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P3Y7M6D
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0.0345
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34642000 USD
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39136000 USD
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29979000 USD
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22900000 USD
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16428000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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12842000 USD
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6698000 USD
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CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due
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CY2020Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
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9008000 USD
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12135000 USD
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104160000 USD
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2500000 USD
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233788000 USD
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2782000 USD
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881000 USD
CY2018 us-gaap Other Nonoperating Income Expense
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2376000 USD
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55236000 USD
CY2019 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
194481000 USD
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204718000 USD
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2376000 USD
CY2020 ait Unrealized Gain Losses On Assets Held Under Trust For Nonqualified Deferred Compensation Plan
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458000 USD
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UnrealizedGainLossesOnAssetsHeldUnderTrustForNonqualifiedDeferredCompensationPlan
689000 USD
CY2018 ait Unrealized Gain Losses On Assets Held Under Trust For Nonqualified Deferred Compensation Plan
UnrealizedGainLossesOnAssetsHeldUnderTrustForNonqualifiedDeferredCompensationPlan
785000 USD
CY2020 us-gaap Foreign Currency Transaction Gain Loss Before Tax
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2463000 USD
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-334000 USD
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ForeignCurrencyTransactionGainLossBeforeTax
210000 USD
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245000 USD
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479000 USD
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1628000 USD
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26000 USD
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38000 USD
CY2018 us-gaap Other Nonoperating Expense
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2000 USD
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OtherNonoperatingIncomeExpense
2782000 USD
CY2019 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
881000 USD

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