2018 Q4 Form 10-Q Financial Statement

#000108622218000208 Filed on November 08, 2018

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2017 Q4
Revenue $713.4M $669.6M $663.5M
YoY Change 7.52% 7.76% 7.68%
Cost Of Revenue $243.9M $239.2M $229.9M
YoY Change 6.08% 6.1% 13.01%
Gross Profit $469.4M $430.4M $433.5M
YoY Change 8.29% 8.71% 5.06%
Gross Profit Margin 65.81% 64.27% 65.34%
Selling, General & Admin $246.2M $245.2M $238.9M
YoY Change 3.06% 1.17% 9.89%
% of Gross Profit 52.45% 56.98% 55.11%
Research & Development $60.30M $61.05M $59.70M
YoY Change 1.01% 6.68% 27.56%
% of Gross Profit 12.85% 14.18% 13.77%
Depreciation & Amortization $116.3M $107.8M $99.40M
YoY Change 17.0% 10.91% 18.33%
% of Gross Profit 24.77% 25.05% 22.93%
Operating Expenses $335.2M $306.3M $326.3M
YoY Change 2.73% 2.23% 13.1%
Operating Profit $134.2M $116.5M $107.2M
YoY Change 25.21% 27.71% -13.64%
Interest Expense -$7.300M $14.57M -$400.0K
YoY Change 1725.0% 206.91% -20.0%
% of Operating Profit -5.44% 12.5% -0.37%
Other Income/Expense, Net $100.0K -$459.0K $500.0K
YoY Change -80.0% -185.79% -82.14%
Pretax Income $113.1M $110.8M $32.20M
YoY Change 251.24% 21.05% -74.4%
Income Tax $16.00M $3.187M -$21.30M
% Of Pretax Income 14.15% 2.88% -66.15%
Net Earnings $94.02M $107.6M $27.52M
YoY Change 241.62% 68.33% -69.97%
Net Earnings / Revenue 13.18% 16.07% 4.15%
Basic Earnings Per Share $0.58 $0.65 $0.16
Diluted Earnings Per Share $0.57 $0.64 $0.16
COMMON SHARES
Basic Shares Outstanding 162.9M shares 165.9M shares 169.2M shares
Diluted Shares Outstanding 167.9M shares

Balance Sheet

Concept 2018 Q4 2018 Q3 2017 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.892B $1.802B $711.9M
YoY Change 165.76% 139.57% -14.95%
Cash & Equivalents $1.036B $705.4M $313.4M
Short-Term Investments $855.5M $1.096B $398.6M
Other Short-Term Assets $18.71M $161.8M $29.30M
YoY Change -36.14% 13.23% 48.49%
Inventory
Prepaid Expenses
Receivables $479.9M $466.4M $461.5M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $2.535B $2.430B $1.346B
YoY Change 88.33% 87.52% 2.77%
LONG-TERM ASSETS
Property, Plant & Equipment $910.6M $884.5M $862.5M
YoY Change 5.57% 0.08% 7.68%
Goodwill $1.487B $1.489B $1.499B
YoY Change -0.75% 9.58% 21.99%
Intangibles $168.3M $176.6M $201.3M
YoY Change -16.35% 0.2% 34.65%
Long-Term Investments $209.1M $257.1M $567.6M
YoY Change -63.16% -61.16% -27.17%
Other Assets $116.1M $103.3M $136.4M
YoY Change -14.89% -9.15% 42.12%
Total Long-Term Assets $2.926B $2.934B $3.303B
YoY Change -11.39% -8.69% 7.82%
TOTAL ASSETS
Total Short-Term Assets $2.535B $2.430B $1.346B
Total Long-Term Assets $2.926B $2.934B $3.303B
Total Assets $5.462B $5.364B $4.649B
YoY Change 17.48% 18.96% 6.31%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $99.09M $96.05M $80.28M
YoY Change 23.43% 8.73% 5.46%
Accrued Expenses $328.3M $305.3M $283.7M
YoY Change 15.7% 13.92% 18.83%
Deferred Revenue $69.08M $93.73M $70.50M
YoY Change -2.0%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $686.6M $680.6M $0.00
YoY Change
Total Short-Term Liabilities $1.211B $1.196B $456.7M
YoY Change 165.1% 177.93% 21.92%
LONG-TERM LIABILITIES
Long-Term Debt $874.1M $864.7M $662.9M
YoY Change 31.86% 31.59% 3.56%
Other Long-Term Liabilities $160.9M $123.7M $143.0M
YoY Change 12.58% -3.99% 20.44%
Total Long-Term Liabilities $160.9M $123.7M $143.0M
YoY Change 12.58% -3.99% 20.44%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.211B $1.196B $456.7M
Total Long-Term Liabilities $160.9M $123.7M $143.0M
Total Liabilities $2.270B $2.208B $1.286B
YoY Change 76.45% 78.6% 11.98%
SHAREHOLDERS EQUITY
Retained Earnings -$430.9M -$524.9M -$690.7M
YoY Change -37.61% -31.07% -28.11%
Common Stock $1.629M $1.722M $1.699M
YoY Change -4.12% -1.88% -1.96%
Preferred Stock
YoY Change
Treasury Stock (at cost) $0.00 $625.9M $0.00
YoY Change 104.13%
Treasury Stock Shares 0.000 shares 8.347M shares 0.000 shares
Shareholders Equity $3.192B $3.156B $3.362B
YoY Change
Total Liabilities & Shareholders Equity $5.462B $5.364B $4.649B
YoY Change 17.48% 18.96% 6.31%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2017 Q4
OPERATING ACTIVITIES
Net Income $94.02M $107.6M $27.52M
YoY Change 241.62% 68.33% -69.97%
Depreciation, Depletion And Amortization $116.3M $107.8M $99.40M
YoY Change 17.0% 10.91% 18.33%
Cash From Operating Activities $286.1M $310.5M $197.5M
YoY Change 44.86% 31.46% 7.22%
INVESTING ACTIVITIES
Capital Expenditures -$117.3M -$86.70M -$106.9M
YoY Change 9.73% -27.57% 40.84%
Acquisitions
YoY Change
Other Investing Activities $289.0M -$61.90M -$95.30M
YoY Change -403.25% -457.8% 7.44%
Cash From Investing Activities $171.7M -$148.6M -$202.2M
YoY Change -184.92% 45.12% 22.77%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $440.4M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -126.1M -433.6M -50.90M
YoY Change 147.74% 262.24% -25.91%
NET CHANGE
Cash From Operating Activities 286.1M 310.5M 197.5M
Cash From Investing Activities 171.7M -148.6M -202.2M
Cash From Financing Activities -126.1M -433.6M -50.90M
Net Change In Cash 331.7M -271.7M -55.60M
YoY Change -696.58% -2026.95% 13.01%
FREE CASH FLOW
Cash From Operating Activities $286.1M $310.5M $197.5M
Capital Expenditures -$117.3M -$86.70M -$106.9M
Free Cash Flow $403.4M $397.2M $304.4M
YoY Change 32.52% 11.6% 17.03%

Facts In Submission

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CY2018Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
222551000 USD
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FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear
8300000 USD
CY2018Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseYearFive
22400000 USD
CY2018Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
28000000 USD
CY2018Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
33900000 USD
CY2018Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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36600000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Gross
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CY2018Q3 us-gaap Finite Lived Intangible Assets Gross
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399191000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Net
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201259000 USD
CY2018Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
176640000 USD
CY2017Q3 us-gaap General And Administrative Expense
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us-gaap General And Administrative Expense
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363050000 USD
CY2018Q3 us-gaap General And Administrative Expense
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119911000 USD
us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
444502000 USD
CY2017Q4 us-gaap Goodwill
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91505000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
281973000 USD
CY2018Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
110770000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
230016000 USD
CY2017Q3 us-gaap Income Tax Expense Benefit
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27594000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
86727000 USD
CY2018Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
3187000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
25658000 USD
us-gaap Income Taxes Paid Net
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79479000 USD
us-gaap Income Taxes Paid Net
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32485000 USD
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22150000 USD
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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7921000 USD
us-gaap Increase Decrease In Accounts Receivable
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9423000 USD
us-gaap Increase Decrease In Accounts Receivable
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13611000 USD
us-gaap Increase Decrease In Contract With Customer Liability
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1528000 USD
us-gaap Increase Decrease In Contract With Customer Liability
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23927000 USD
us-gaap Increase Decrease In Other Operating Capital Net
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8828000 USD
us-gaap Increase Decrease In Other Operating Capital Net
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10338000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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36580000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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2084000 USD
us-gaap Increase Decrease In Restructuring Reserve
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3651000 USD
us-gaap Increase Decrease In Restructuring Reserve
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2030000 USD
CY2017Q3 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
0 shares
us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
0 shares
CY2018Q3 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
0 shares
us-gaap Incremental Common Shares Attributable To Call Options And Warrants
IncrementalCommonSharesAttributableToCallOptionsAndWarrants
0 shares
CY2017Q3 us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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0 shares
us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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0 shares
CY2018Q3 us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
IncrementalCommonSharesAttributableToConversionOfDebtSecurities
0 shares
CY2017Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
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CY2017Q3 us-gaap Incremental Common Shares Attributable To Participating Nonvested Shares With Non Forfeitable Dividend Rights
IncrementalCommonSharesAttributableToParticipatingNonvestedSharesWithNonForfeitableDividendRights
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IncrementalCommonSharesAttributableToParticipatingNonvestedSharesWithNonForfeitableDividendRights
1896000 shares
us-gaap Incremental Common Shares Attributable To Participating Nonvested Shares With Non Forfeitable Dividend Rights
IncrementalCommonSharesAttributableToParticipatingNonvestedSharesWithNonForfeitableDividendRights
1811000 shares
CY2018Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
80000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
158000 shares
CY2017Q4 us-gaap Intangible Assets Net Excluding Goodwill
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CY2018Q3 us-gaap Intangible Assets Net Excluding Goodwill
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CY2017Q3 us-gaap Interest Costs Capitalized Adjustment
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985000 USD
us-gaap Interest Costs Capitalized Adjustment
InterestCostsCapitalizedAdjustment
3055000 USD
CY2018Q3 us-gaap Interest Costs Capitalized Adjustment
InterestCostsCapitalizedAdjustment
1210000 USD
us-gaap Interest Costs Capitalized Adjustment
InterestCostsCapitalizedAdjustment
3200000 USD
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5731000 USD
us-gaap Interest Costs Incurred
InterestCostsIncurred
17044000 USD
CY2018Q3 us-gaap Interest Costs Incurred
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15295000 USD
us-gaap Interest Costs Incurred
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31045000 USD
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4746000 USD
us-gaap Interest Expense
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13989000 USD
CY2018Q3 us-gaap Interest Expense
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14566000 USD
us-gaap Interest Expense
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28620000 USD
CY2017Q3 us-gaap Investment Income Interest
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us-gaap Investment Income Interest
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us-gaap Investment Income Interest
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19632000 USD
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CY2018Q3 us-gaap Liabilities
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2208357000 USD
CY2017Q4 us-gaap Liabilities And Stockholders Equity
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4648916000 USD
CY2018Q3 us-gaap Liabilities And Stockholders Equity
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456694000 USD
CY2018Q3 us-gaap Liabilities Current
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1195938000 USD
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Financing Activities
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359732000 USD
us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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603542000 USD
us-gaap Net Cash Provided By Used In Operating Activities
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722172000 USD
CY2017Q3 us-gaap Net Income Loss
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63911000 USD
us-gaap Net Income Loss
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195246000 USD
CY2018Q3 us-gaap Net Income Loss
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107583000 USD
us-gaap Net Income Loss
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204358000 USD
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OperatingIncomeLoss
91253000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
282180000 USD
CY2018Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
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us-gaap Operating Income Loss
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OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
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OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax
187000 USD
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OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax
494000 USD
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us-gaap Other Nonoperating Income Expense
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us-gaap Other Nonoperating Income Expense
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us-gaap Payments For Hedge Financing Activities
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us-gaap Payments For Hedge Financing Activities
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261740000 USD
us-gaap Payments For Proceeds From Other Investing Activities
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1166000 USD
us-gaap Payments For Proceeds From Other Investing Activities
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2678000 USD
us-gaap Payments For Repurchase Of Common Stock
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306629000 USD
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440400000 USD
us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments For Restructuring
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23394000 USD
us-gaap Payments For Software
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us-gaap Payments For Software
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145122000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
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48122000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
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us-gaap Payments To Acquire Available For Sale Securities
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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79000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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185466000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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143285000 USD
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PreferredStockParOrStatedValuePerShare
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CY2018Q3 us-gaap Preferred Stock Shares Authorized
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0 shares
CY2018Q3 us-gaap Preferred Stock Shares Issued
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0 shares
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0 shares
CY2018Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2017Q4 us-gaap Preferred Stock Value
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CY2018Q3 us-gaap Preferred Stock Value
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172853000 USD
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us-gaap Proceeds From Income Tax Refunds
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5867000 USD
us-gaap Proceeds From Income Tax Refunds
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17286000 USD
us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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41740000 USD
us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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52497000 USD
us-gaap Proceeds From Issuance Of Warrants
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0 USD
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119945000 USD
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317974000 USD
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180405000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities
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CY2017Q3 us-gaap Research And Development Expense
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57226000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
162761000 USD
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61049000 USD
us-gaap Research And Development Expense
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185823000 USD
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us-gaap Restructuring And Related Cost Incurred Cost
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12700000 USD
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us-gaap Restructuring Charges
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us-gaap Restructuring Charges
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14442000 USD
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us-gaap Restructuring Costs
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2818000 USD
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501000 USD
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CY2018Q3 us-gaap Revenue Remaining Performance Obligation
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P1Y
CY2018Q3 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
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CY2017Q3 us-gaap Selling And Marketing Expense
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us-gaap Selling And Marketing Expense
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350299000 USD
CY2018Q3 us-gaap Selling And Marketing Expense
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us-gaap Selling And Marketing Expense
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379556000 USD
us-gaap Share Based Compensation
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us-gaap Share Based Compensation
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138815000 USD
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750000000 USD
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CY2017Q4 us-gaap Treasury Stock Shares
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CY2018Q3 us-gaap Treasury Stock Shares
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CY2018Q3 us-gaap Treasury Stock Value
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CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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173371000 shares
CY2018Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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170732000 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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170976000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
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172269000 shares
CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
165924000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
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168763000 shares
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Commitments and Contingencies</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Legal Matters</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2018, as part of the resolution of multiple existing lawsuits between Limelight Networks, Inc. ("Limelight") and the Company, including in the U.S. District Court for the Eastern District of Virginia and in the U.S. District Court for the District of Massachusetts, the Company and Limelight entered into an agreement to settle the cases and request that the U.S. Patent Trial and Appeal Board terminate certain proceedings related to patents at issue in the litigation. The Company recorded a </font><font style="font-family:inherit;font-size:10pt;">$14.9 million</font><font style="font-family:inherit;font-size:10pt;"> charge in the second quarter of 2018, which is included in general and administrative expenses in the consolidated statement of income for the </font><font style="font-family:inherit;font-size:10pt;">nine</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">, related to this settlement.</font></div></div>

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