2015 Q4 Form 10-K Financial Statement

#000160649817000008 Filed on February 27, 2017

View on sec.gov

Income Statement

Concept 2015 Q4 2014 Q4 2014
Revenue -$664.0M $439.4M $1.672B
YoY Change -251.12% 1.88% -0.32%
Cost Of Revenue -$523.8M $282.9M $1.124B
YoY Change -285.15% 2.5% 5.46%
Gross Profit -$140.2M $156.5M $548.6M
YoY Change -189.58% 0.77% -10.39%
Gross Profit Margin 35.62% 32.81%
Selling, General & Admin $49.50M $126.4M $424.5M
YoY Change -60.84% 49.59% 20.8%
% of Gross Profit 80.77% 77.38%
Research & Development $5.100M $7.500M $33.60M
YoY Change -32.0% -45.26% -11.35%
% of Gross Profit 4.79% 6.12%
Depreciation & Amortization $16.80M $23.80M $85.40M
YoY Change -29.41% 43.37% 23.41%
% of Gross Profit 15.21% 15.57%
Operating Expenses -$402.7M $132.5M $458.1M
YoY Change -403.92% 35.62% 17.67%
Operating Profit $262.5M $24.00M $94.30M
YoY Change 993.75% -58.33% -58.14%
Interest Expense -$8.000M -$5.900M $6.000M
YoY Change 35.59% -837.5% 5900.0%
% of Operating Profit -3.05% -24.58% 6.36%
Other Income/Expense, Net
YoY Change
Pretax Income $254.5M $18.10M $91.20M
YoY Change 1306.08% -69.06% -59.96%
Income Tax -$85.10M $20.50M $64.10M
% Of Pretax Income -33.44% 113.26% 70.29%
Net Earnings $14.50M -$2.400M $27.10M
YoY Change -704.17% -106.03% -82.47%
Net Earnings / Revenue -0.55% 1.62%
Basic Earnings Per Share $0.58
Diluted Earnings Per Share $306.6K -$51.61K $0.58
COMMON SHARES
Basic Shares Outstanding 46.61M shares 46.54M shares 46.50M shares
Diluted Shares Outstanding 46.50M shares

Balance Sheet

Concept 2015 Q4 2014 Q4 2014
SHORT-TERM ASSETS
Cash & Short-Term Investments $129.5M $149.0M $149.0M
YoY Change -13.09% 237.87% 237.87%
Cash & Equivalents $129.5M $149.0M $149.0M
Short-Term Investments
Other Short-Term Assets $18.60M $18.90M $18.90M
YoY Change -1.59% -63.72% -63.72%
Inventory $303.2M $283.1M $283.1M
Prepaid Expenses
Receivables $224.7M $233.9M $233.9M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $676.0M $683.6M $684.9M
YoY Change -1.11% 16.83% 17.06%
LONG-TERM ASSETS
Property, Plant & Equipment $279.5M $277.8M $277.8M
YoY Change 0.61% -14.5% -14.5%
Goodwill $678.4M $1.426B
YoY Change -52.43% -0.28%
Intangibles $82.60M $108.3M
YoY Change -23.73% -23.3%
Long-Term Investments $0.00 $0.00
YoY Change
Other Assets $2.000M $2.200M $30.50M
YoY Change -9.09% -18.52% 1029.63%
Total Long-Term Assets $1.324B $1.834B $1.843B
YoY Change -27.81% -3.4% -2.96%
TOTAL ASSETS
Total Short-Term Assets $676.0M $683.6M $684.9M
Total Long-Term Assets $1.324B $1.834B $1.843B
Total Assets $2.000B $2.518B $2.528B
YoY Change -20.56% 1.36% 1.76%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $163.2M $168.7M $168.7M
YoY Change -3.26% 42.36% 42.36%
Accrued Expenses $152.0M $183.4M $175.6M
YoY Change -17.12% 1.89% -2.44%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $3.900M $3.900M
YoY Change -100.0% -67.23% -67.23%
Long-Term Debt Due $0.00 $3.900M
YoY Change -100.0% -67.23%
Total Short-Term Liabilities $315.2M $356.0M $356.0M
YoY Change -11.46% 14.69% 14.69%
LONG-TERM LIABILITIES
Long-Term Debt $578.1M $622.6M $632.3M
YoY Change -7.15%
Other Long-Term Liabilities $27.80M $20.20M $20.20M
YoY Change 37.62% -78.62% 405.0%
Total Long-Term Liabilities $51.60M $48.10M $652.5M
YoY Change 7.28% -49.1% 16212.5%
TOTAL LIABILITIES
Total Short-Term Liabilities $315.2M $356.0M $356.0M
Total Long-Term Liabilities $51.60M $48.10M $652.5M
Total Liabilities $944.9M $1.027B $1.036B
YoY Change -7.97% 153.57% 155.96%
SHAREHOLDERS EQUITY
Retained Earnings -$419.0M $7.300M
YoY Change -5839.73%
Common Stock $500.0K $500.0K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.000M $0.00
YoY Change
Treasury Stock Shares
Shareholders Equity $1.055B $1.491B $1.491B
YoY Change
Total Liabilities & Shareholders Equity $2.000B $2.518B $2.528B
YoY Change -20.56% 1.36% 1.76%

Cashflow Statement

Concept 2015 Q4 2014 Q4 2014
OPERATING ACTIVITIES
Net Income $14.50M -$2.400M $27.10M
YoY Change -704.17% -106.03% -82.47%
Depreciation, Depletion And Amortization $16.80M $23.80M $85.40M
YoY Change -29.41% 43.37% 23.41%
Cash From Operating Activities $23.00M $40.60M $147.9M
YoY Change -43.35% -47.07% -33.91%
INVESTING ACTIVITIES
Capital Expenditures -$6.000M -$18.10M -$78.50M
YoY Change -66.85% 63.06% 60.2%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $0.00 $7.800M $7.800M
YoY Change -100.0% 2500.0% -510.53%
Cash From Investing Activities -$6.000M -$10.30M -$70.70M
YoY Change -41.75% -4.63% 38.9%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net $13.80M
YoY Change -79.68%
Cash From Financing Activities 200.0K 61.60M $29.20M
YoY Change -99.68% -191.26% -116.22%
NET CHANGE
Cash From Operating Activities 23.00M 40.60M $147.9M
Cash From Investing Activities -6.000M -10.30M -$70.70M
Cash From Financing Activities 200.0K 61.60M $29.20M
Net Change In Cash 17.20M 91.90M $106.4M
YoY Change -81.28% -5843.75% -1598.59%
FREE CASH FLOW
Cash From Operating Activities $23.00M $40.60M $147.9M
Capital Expenditures -$6.000M -$18.10M -$78.50M
Free Cash Flow $29.00M $58.70M $226.4M
YoY Change -50.6% -33.14% -17.01%

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DeferredIncomeTaxLiabilitiesNet
23800000 USD
CY2016Q4 us-gaap Deferred Income Tax Liabilities Net
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35800000 USD
CY2014 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
-1400000 USD
CY2015 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
-600000 USD
CY2016 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
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15300000 USD
CY2016Q4 us-gaap Deferred Tax Assets Goodwill And Intangible Assets
DeferredTaxAssetsGoodwillAndIntangibleAssets
0 USD
CY2015Q4 us-gaap Deferred Tax Assets Gross
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51300000 USD
CY2016Q4 us-gaap Deferred Tax Assets Gross
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51900000 USD
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50800000 USD
CY2016Q4 us-gaap Deferred Tax Assets Net
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51400000 USD
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5900000 USD
CY2016Q4 us-gaap Deferred Tax Assets Other
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8400000 USD
CY2015Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
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4800000 USD
CY2016Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
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8700000 USD
CY2015Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Accrued Liabilities
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25300000 USD
CY2016Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Accrued Liabilities
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34800000 USD
CY2015Q4 us-gaap Deferred Tax Assets Valuation Allowance
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500000 USD
CY2016Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
500000 USD
CY2015Q4 us-gaap Deferred Tax Liabilities Goodwill And Intangible Assets Intangible Assets
DeferredTaxLiabilitiesGoodwillAndIntangibleAssetsIntangibleAssets
0 USD
CY2015Q4 us-gaap Deferred Tax Liabilities
DeferredTaxLiabilities
8900000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities
DeferredTaxLiabilities
20700000 USD
CY2015Q4 us-gaap Deferred Tax Liabilities Deferred Expense Capitalized Inventory Costs
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19800000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Deferred Expense Capitalized Inventory Costs
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13400000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Goodwill And Intangible Assets Intangible Assets
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17700000 USD
CY2015Q4 us-gaap Deferred Tax Liabilities Other
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500000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Other
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1000000 USD
CY2015Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
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39400000 USD
CY2016Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
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40000000 USD
CY2014 us-gaap Depreciation
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53000000 USD
CY2015 us-gaap Depreciation
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40000000 USD
CY2016 us-gaap Depreciation
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43000000 USD
CY2014 us-gaap Depreciation Depletion And Amortization
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85400000 USD
CY2015 us-gaap Depreciation Depletion And Amortization
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65400000 USD
CY2016 us-gaap Depreciation Depletion And Amortization
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65200000 USD
CY2014 us-gaap Earnings Per Share Basic
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0.58
CY2015 us-gaap Earnings Per Share Basic
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-9.15
CY2016 us-gaap Earnings Per Share Basic
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0.85
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0.58
CY2015 us-gaap Earnings Per Share Diluted
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-9.15
CY2016 us-gaap Earnings Per Share Diluted
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0.85
CY2014 us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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-1500000 USD
CY2015 us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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-3900000 USD
CY2016 us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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-2300000 USD
CY2014 us-gaap Effective Income Tax Rate Continuing Operations
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0.703
CY2015 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
-0.038
CY2016 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.280
CY2014 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.35
CY2015 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35
CY2016 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.35
CY2014 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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0.021
CY2015 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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0.001
CY2016 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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0.000
CY2014 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate
0.000
CY2015 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate
0.000
CY2016 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate
0.073
CY2014 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential
-0.003
CY2015 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential
0.006
CY2016 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential
-0.069
CY2014 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense
EffectiveIncomeTaxRateReconciliationNondeductibleExpense
0.176
CY2015 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense
EffectiveIncomeTaxRateReconciliationNondeductibleExpense
0.000
CY2016 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense
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0.000
CY2014 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Impairment Losses
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0.000
CY2015 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Impairment Losses
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-0.404
CY2016 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Impairment Losses
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0.000
CY2014 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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-0.026
CY2015 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
EffectiveIncomeTaxRateReconciliationOtherAdjustments
0.006
CY2016 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
EffectiveIncomeTaxRateReconciliationOtherAdjustments
0.019
CY2014 us-gaap Effective Income Tax Rate Reconciliation Repatriation Of Foreign Earnings
EffectiveIncomeTaxRateReconciliationRepatriationOfForeignEarnings
0.155
CY2015 us-gaap Effective Income Tax Rate Reconciliation Repatriation Of Foreign Earnings
EffectiveIncomeTaxRateReconciliationRepatriationOfForeignEarnings
0.000
CY2014 us-gaap Gain Loss On Disposition Of Assets1
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-6700000 USD
CY2015 us-gaap Goodwill Foreign Currency Translation Gain Loss
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-6900000 USD
CY2015 us-gaap Gain Loss On Disposition Of Assets1
GainLossOnDispositionOfAssets1
6700000 USD
CY2016 us-gaap Gain Loss On Disposition Of Assets1
GainLossOnDispositionOfAssets1
-3700000 USD
CY2014Q4 us-gaap Goodwill
Goodwill
1426100000 USD
CY2015Q4 us-gaap Goodwill
Goodwill
945200000 USD
CY2016Q4 us-gaap Goodwill
Goodwill
1029000000 USD
CY2016 us-gaap Goodwill Acquired During Period
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84100000 USD
CY2016 us-gaap Effective Income Tax Rate Reconciliation Repatriation Of Foreign Earnings
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0.000
CY2014 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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0.030
CY2015 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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-0.003
CY2016 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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0.002
CY2014 us-gaap Effective Income Tax Rate Reconciliation Tax Credits Research
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0.000
CY2015 us-gaap Effective Income Tax Rate Reconciliation Tax Credits Research
EffectiveIncomeTaxRateReconciliationTaxCreditsResearch
-0.006
CY2016 us-gaap Effective Income Tax Rate Reconciliation Tax Credits Research
EffectiveIncomeTaxRateReconciliationTaxCreditsResearch
0.047
CY2015Q4 us-gaap Equity Method Investments
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0 USD
CY2016Q4 us-gaap Equity Method Investments
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0 USD
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248200000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
268700000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense After Year Five
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85000000 USD
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21200000 USD
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10700000 USD
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13000000 USD
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15200000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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19000000 USD
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330800000 USD
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432800000 USD
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82600000 USD
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164100000 USD
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-300000 USD
CY2014 us-gaap Goodwill Impairment Loss
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0 USD
CY2015 us-gaap Goodwill Impairment Loss
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474000000 USD
CY2016 us-gaap Goodwill Impairment Loss
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0 USD
CY2014 us-gaap Gross Profit
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548600000 USD
CY2015 us-gaap Gross Profit
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531600000 USD
CY2016 us-gaap Gross Profit
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557900000 USD
CY2014 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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91800000 USD
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24200000 USD
CY2014 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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91200000 USD
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CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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55300000 USD
CY2014 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
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CY2015 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
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13900000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
31100000 USD
CY2014 us-gaap Income Loss From Subsidiaries Net Of Tax
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0 USD
CY2015 us-gaap Income Loss From Subsidiaries Net Of Tax
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0 USD
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169800000 USD
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1000000 USD
CY2016 us-gaap Interest Costs Capitalized
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400000 USD
CY2014 us-gaap Interest Expense
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6000000 USD
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CY2014 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
64100000 USD
CY2015 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
15800000 USD
CY2016 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
15500000 USD
CY2014 us-gaap Income Taxes Paid
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87600000 USD
CY2015 us-gaap Income Taxes Paid
IncomeTaxesPaid
43300000 USD
CY2016 us-gaap Income Taxes Paid
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29100000 USD
CY2014 us-gaap Increase Decrease In Accounts Payable Trade
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4500000 USD
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14700000 USD
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6500000 USD
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-15100000 USD
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900000 USD
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34000000 USD
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2900000 USD
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20200000 USD
CY2016 us-gaap Increase Decrease In Inventories
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-41000000 USD
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4800000 USD
CY2015 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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6000000 USD
CY2015 us-gaap Interest Expense
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33100000 USD
CY2016 us-gaap Interest Expense
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32700000 USD
CY2014 us-gaap Interest Paid
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CY2015 us-gaap Interest Paid
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32600000 USD
CY2016 us-gaap Interest Paid
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29900000 USD
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212100000 USD
CY2016Q4 us-gaap Inventory Finished Goods
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171300000 USD
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320800000 USD
CY2016Q4 us-gaap Inventory Gross
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283100000 USD
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17600000 USD
CY2016Q4 us-gaap Inventory Lifo Reserve
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10600000 USD
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303200000 USD
CY2016Q4 us-gaap Inventory Net
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272500000 USD
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50800000 USD
CY2016Q4 us-gaap Inventory Raw Materials
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48100000 USD
CY2015Q4 us-gaap Inventory Work In Process
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46200000 USD
CY2016Q4 us-gaap Inventory Work In Process
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50900000 USD
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2900000 USD
CY2015 us-gaap Investment Income Interest
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300000 USD
CY2016 us-gaap Investment Income Interest
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600000 USD
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944900000 USD
CY2016Q4 us-gaap Liabilities
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969300000 USD
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2000200000 USD
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2071800000 USD
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315200000 USD
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324400000 USD
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51600000 USD
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65900000 USD
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589000000 USD
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589000000 USD
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0 USD
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0 USD
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0 USD
CY2016Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
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0 USD
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578100000 USD
CY2016Q4 us-gaap Long Term Debt Noncurrent
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579000000 USD
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29200000 USD
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147900000 USD
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97600000 USD
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188800000 USD
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27100000 USD
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39800000 USD
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2 segment
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94300000 USD
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87400000 USD
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100500000 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due Current
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16900000 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due In Five Years
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7300000 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due In Four Years
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8000000 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due In Three Years
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12300000 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
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14900000 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due Thereafter
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41100000 USD
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17000000 USD
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22000000 USD
CY2016 us-gaap Operating Leases Rent Expense Net
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22000000 USD
CY2016Q4 us-gaap Operating Loss Carryforwards
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11000000 USD
CY2015Q4 us-gaap Other Accrued Liabilities Current
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28300000 USD
CY2016Q4 us-gaap Other Accrued Liabilities Current
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31300000 USD
CY2015Q4 us-gaap Other Assets Noncurrent
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2000000 USD
CY2016Q4 us-gaap Other Assets Noncurrent
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3600000 USD
CY2014 us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Before Tax Portion Attributable To Parent
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400000 USD
CY2015 us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Before Tax Portion Attributable To Parent
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1900000 USD
CY2016 us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Before Tax Portion Attributable To Parent
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1000000 USD
CY2016 us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Before Tax Portion Attributable To Parent
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-700000 USD
CY2014 us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Net Of Tax Portion Attributable To Parent
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400000 USD
CY2015 us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Net Of Tax Portion Attributable To Parent
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1300000 USD
CY2016 us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Net Of Tax Portion Attributable To Parent
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-600000 USD
CY2014 us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Before Tax Portion Attributable To Parent
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4300000 USD
CY2015 us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Before Tax Portion Attributable To Parent
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-1000000 USD
CY2014 us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Net Of Tax Portion Attributable To Parent
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3600000 USD
CY2015 us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Net Of Tax Portion Attributable To Parent
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-700000 USD
CY2016 us-gaap Other Comprehensive Income Derivatives Qualifying As Hedges Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeDerivativesQualifyingAsHedgesNetOfTaxPortionAttributableToParent
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400000 USD
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates</font></div><div style="line-height:120%;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We prepare our consolidated financial statements in accordance with GAAP, which requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Estimates are used in accounting for, among other things, distributor rebate accruals, future cash flows associated with impairment testing for goodwill and long-lived assets, loss contingencies, and deferred tax assets and potential income tax assessments. Actual results could differ from these estimates, and the effect of the change could be material to our financial statements. Changes in these estimates are recorded when known.</font></div></div>

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