2010 Q3 Form 10-K Financial Statement

#000104746911010045 Filed on December 13, 2011

View on sec.gov

Income Statement

Concept 2010 Q3 2009 2008 Q3
Revenue $1.880M $12.15M $4.960M
YoY Change -10.9% -44.75% -42.46%
Cost Of Revenue $820.0K $3.300M $1.840M
YoY Change -24.07% 22.22% 234.55%
Gross Profit $1.060M $8.900M $3.130M
YoY Change 2.91% -53.89% -61.21%
Gross Profit Margin 56.38% 73.23% 63.1%
Selling, General & Admin $1.850M $25.10M $5.570M
YoY Change 22.52% 2.87% -44.58%
% of Gross Profit 174.53% 282.02% 177.96%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $240.0K $1.686M $490.0K
YoY Change -17.24% 11.66% 188.24%
% of Gross Profit 22.64% 18.94% 15.65%
Operating Expenses $2.030M $36.33M $5.910M
YoY Change 13.41% 44.16% -41.54%
Operating Profit -$970.0K -$24.18M -$2.780M
YoY Change 27.63% 309.75% 36.27%
Interest Expense -$370.0K -$6.200M $6.800M
YoY Change -37.29% -142.18% -575.52%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$1.340M -$19.20M $3.430M
YoY Change -126.33% -349.35% -198.85%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income 0.0%
Net Earnings -$1.170M -$48.36M $2.210M
YoY Change -133.72% 16020.0% -163.32%
Net Earnings / Revenue -62.23% -397.89% 44.56%
Basic Earnings Per Share
Diluted Earnings Per Share -$83.10K -$4.121M $163.9K
COMMON SHARES
Basic Shares Outstanding 11.64M shares
Diluted Shares Outstanding 11.64M shares

Balance Sheet

Concept 2010 Q3 2009 2008 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $58.50M $25.70M $35.80M
YoY Change 127.63% -28.21% 109.36%
Cash & Equivalents $58.50M $25.70M $35.77M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $58.50M $58.50M $35.80M
YoY Change 127.63% 127.63% 109.36%
LONG-TERM ASSETS
Property, Plant & Equipment $55.80M $55.50M $30.50M
YoY Change 0.54% 81.97% 824.24%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $775.0K $105.2M $195.5M
YoY Change -99.26% -46.19% -34.35%
Other Assets
YoY Change
Total Long-Term Assets $127.8M $134.8M $234.2M
YoY Change -23.77% -44.82% -24.69%
TOTAL ASSETS
Total Short-Term Assets $58.50M $58.50M $35.80M
Total Long-Term Assets $127.8M $134.8M $234.2M
Total Assets $186.3M $193.3M $270.0M
YoY Change -3.64% -28.41% -17.71%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.300M $2.100M $3.500M
YoY Change -38.1% -40.0% -2.78%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $3.000M $3.000M $21.10M
YoY Change -82.76% -82.76% 52.9%
LONG-TERM LIABILITIES
Long-Term Debt $53.40M $49.70M $62.00M
YoY Change 7.44% -19.84% -21.62%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $53.40M $49.70M $62.00M
YoY Change 7.44% -19.84% -21.62%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.000M $3.000M $21.10M
Total Long-Term Liabilities $53.40M $49.70M $62.00M
Total Liabilities $56.43M $72.10M $83.20M
YoY Change -21.74% -13.34% -10.44%
SHAREHOLDERS EQUITY
Retained Earnings -$83.39M
YoY Change
Common Stock $45.45M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $11.36M
YoY Change
Treasury Stock Shares 1.460M shares
Shareholders Equity $124.6M $121.2M $186.8M
YoY Change
Total Liabilities & Shareholders Equity $186.3M $193.3M $270.0M
YoY Change -3.64% -28.41% -17.71%

Cashflow Statement

Concept 2010 Q3 2009 2008 Q3
OPERATING ACTIVITIES
Net Income -$1.170M -$48.36M $2.210M
YoY Change -133.72% 16020.0% -163.32%
Depreciation, Depletion And Amortization $240.0K $1.686M $490.0K
YoY Change -17.24% 11.66% 188.24%
Cash From Operating Activities -$40.00K -$7.427M -$20.00K
YoY Change -105.33% -349.23% -100.44%
INVESTING ACTIVITIES
Capital Expenditures -$4.140M -$33.14M -$32.86M
YoY Change -77.25% -52.62% -6.65%
Acquisitions
YoY Change
Other Investing Activities $11.42M $51.16M $70.18M
YoY Change -52.67% -59.11% 88.61%
Cash From Investing Activities $7.260M $18.02M $37.32M
YoY Change 22.64% -67.35% 1756.72%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $943.0K
YoY Change -84.81%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.020M -$20.65M -16.87M
YoY Change -129.74% -47.73% 1604.04%
NET CHANGE
Cash From Operating Activities -40.00K -$7.427M -20.00K
Cash From Investing Activities 7.260M $18.02M 37.32M
Cash From Financing Activities 1.020M -$20.65M -16.87M
Net Change In Cash 8.240M -$10.06M 20.43M
YoY Change 154.32% -153.87% 266.13%
FREE CASH FLOW
Cash From Operating Activities -$40.00K -$7.427M -$20.00K
Capital Expenditures -$4.140M -$33.14M -$32.86M
Free Cash Flow $4.100M $25.71M $32.84M
YoY Change -78.36% -64.74% -17.4%

Facts In Submission

Frame Concept Type Concept / XBRL Key Value Unit
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CY2011 us-gaap Nature Of Operations
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<table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> <p style="FONT-FAMILY: times"><font size="2"><b>NOTE 1&#151;ORGANIZATION, BACKGROUND AND SIGNIFICANT ACCOUNTING POLICIES </b></font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Organization and Background</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRT Realty Trust is a business trust organized in Massachusetts. Our primary business is to originate and hold for investment senior mortgage loans secured by commercial and multi-family real estate property in the United States. This includes originating loans to persons purchasing their own or third party mortgage debt, at a discount to the principal amount thereof. Generally, in such transactions, we purchase the mortgage and our counterparty is obligated to repurchase such mortgage within a specified period. The loans we originate generally have relatively high yields and are short-term or bridge loans with a duration ranging from six months to one year. It is our policy to lend at a floating rate of interest based on a spread over the prime rate, with a stated minimum rate, though we originate fixed rate loans as circumstances dictate. We receive an origination fee for the loans we originate. We conduct our operations to qualify as a real estate investment trust, or REIT, for Federal income tax purposes.</font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time-to-time we originate junior commercial and multi-family mortgage loans, participate as an equity investor in, and mortgage lender to, joint ventures which acquire income producing real estate property, and purchase securities of other REITs.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Principles of Consolidation; Basis of Preparation </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain items on the consolidated financial statements for the preceding periods have been reclassified in the accompanying consolidated financial statements to conform to the current year's presentation. </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements include the accounts and operations of BRT Realty Trust, its wholly owned subsidiaries, and its majority-owned or controlled real estate entities and its interests in variable interest entities in which it is the primary beneficiary. Material intercompany items and transactions have been eliminated. BRT Realty Trust and its subsidiaries are hereinafter referred to as "BRT" or the "Trust." </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to its unconsolidated joint ventures, as (i)&nbsp;the Trust is primarily the managing member but does not exercise substantial operating control over these entities or the Trust is not the managing member and (ii)&nbsp;such entities are not variable-interest entities, the Trust has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes. </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RBH-TRB Newark Holdings&nbsp;LLC was determined to be a Variable Interest Entity ("VIE") because the total equity investment at risk is not sufficient to permit it to finance its activities without additional subordinated financial support by its equity holders. The Trust was determined to be the primary beneficiary as it has a controlling financial interest in the VIE as it has the obligation to absorb a majority of the VIE's expected losses. For these reasons, the Trust has consolidated the operations and assets of this VIE in the Trust's consolidated financial statements. </font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Income Tax Status </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust qualifies as a real estate investment trust under Sections&nbsp;856-860 of the Internal Revenue Code of 1986, as amended. The Trustees may, at their option, elect to operate the Trust as a business trust not qualifying as a real estate investment trust.</font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Income Recognition </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income and expenses are recorded on the accrual basis of accounting for financial reporting purposes. The Trust does not accrue interest on impaired loans where, in the judgment of management, collection of interest according to the contractual terms of the loan documents is considered doubtful. Among the factors the Trust considers in making an evaluation of the amount of interest that is collectable, are the financial condition of the borrower, the status of the underlying collateral and anticipated future events. The Trust accrues interest on performing impaired loans and records cash receipts as a reduction of interest receivable. For impaired non-accrual loans, interest is recognized on a cash basis. The Trust will resume the accrual of interest if it determines the collection of interest according to the contractual terms of the loan is probable. </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan commitment, origination and extension fee income on loans held in our portfolio is deferred and recorded as loan fee income over the life of the commitment and loan. Commitment fees are generally non-refundable. When a commitment expires or the Trust no longer has any other obligation to perform, the remaining fee is recognized into income. </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental revenue from real estate properties includes the base rent that each tenant is required to pay in accordance with the terms of their respective leases reported on a straight line basis over the initial term of the lease. </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The basis on which cost was determined in computing the realized gain or loss on available-for-sale securities is specific cost. </font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Allowance for Possible Losses</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A loan evaluated for impairment is deemed to be impaired when based on current information and events, it is probable, in the judgment of management, that the Trust will not be able to collect all amounts due according to the contractual terms of the loan documents. When making this evaluation various factors are considered, as appropriate, including, market evaluations of the underlying collateral, estimated operating cash flow from the property during the projected holding period, and estimated sales value computed by applying an estimated capitalization rate to the projected stabilized net operating income of the specific property, less selling costs, discounted at market discount rates. If upon completion of the evaluation, the value of the collateral securing the loan is less than the recorded investment in the loan, an allowance is created with a corresponding charge to expense. The fair values related to the collateral securing impaired loans based on discounted cash flow models are considered to be level&nbsp;3 valuations within the fair value hierarchy. When the Trust acquires title to the property, the loan loss allowance is adjusted by charging off all amounts related to the loan and recording the property at its adjusted carrying value. </font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Real Estate Properties, Real Estate Properties Held For Sale and Loan Held For Sale </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate properties are shown net of accumulated depreciation and includes real property acquired by foreclosure and similar proceedings. </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When real estate is acquired by foreclosure proceedings, it is recorded at the lower of the recorded investment of the loan or estimated fair value of the property at the time of foreclosure or delivery of a deed in lieu of foreclosure. The recorded investment is the face amount of the loan that has been decreased by any deferred fees, loan loss allowances and any valuation adjustments. Real estate assets, including assets acquired by foreclosure proceedings, that are operated for the production of income are depreciated over their estimated useful lives. Costs incurred in connection with the foreclosure of the properties collateralizing the real estate loans are expensed as incurred. </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate and real estate loans are classified as held for sale when management has determined that it has met the appropriate criteria in Accounting Standards Codification (ASC) 360. Real estate properties which are held for sale are not depreciated and their operations are shown in discontinued operations. Real estate assets and loans that are expected to be disposed of are valued at the lower of their carrying amount or their fair value less costs to sell on an individual asset basis. </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust accounts for the sale of real estate when title passes to the buyer, sufficient equity payments have been received, there is no continuing involvement by the Trust and there is reasonable assurance that the remaining receivable, if any, will be collected. </font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Real Estate Asset Impairments</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust reviews each real estate asset owned, including investments in real estate ventures to determine if there are indicators of impairment. If such indicators are present, the Trust determines whether the carrying amount of the asset can be recovered. Recognition of impairment is required if the undiscounted cash flows estimated to be generated by the assets are less than the assets' carrying amount. Measurement of impairment is based upon the estimated fair value of the asset. In evaluating a property for impairment, various factors are considered, including estimated current and expected operating cash flow from the property during the projected holding period, costs necessary to extend the life or improve the asset, expected capitalization rates, projected stabilized net operating income, selling costs, and the ability to hold and dispose of such real estate owned in the ordinary course of business. Valuation adjustments may be necessary in the event that effective interest rates, rent-up periods, future economic conditions, and other relevant factors vary significantly from those assumed in valuing the property. If future evaluations result in a diminution in the value of the property, the reduction will be recognized as an impairment charge. The fair values related to the impaired real estate are considered to be a level&nbsp;3 valuation within the fair value hierarchy. </font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Fixed Asset Capitalization</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A variety of costs may be incurred in the development of our properties. After a determination is made to capitalize a cost, it is allocated to the specific project that is benefited. The costs of land and building under development include specifically identifiable costs. The capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, and other costs incurred during the period of development. We consider a construction project as substantially completed when it is available for occupancy, but no later than one year from cessation of major construction activity. We cease capitalization when the project is available for occupancy. </font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Equity Based Compensation</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trust's compensation expense for restricted stock awards is amortized over the vesting period of such awards, based upon the estimated fair value of such restricted stock at the grant date. For accounting purposes, the restricted shares are not included in the outstanding shares shown on the consolidated balance sheets until they vest, however, they are included in the calculation of both basic and diluted earnings per share as they participate in the earnings of the Trust. </font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Per Share Data </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic earnings (loss) per share was determined by dividing net income (loss) applicable to common shareholders for each year by the weighted average number of shares of beneficial interest outstanding during each year. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue shares of beneficial interest were exercised or converted into shares of beneficial interest or resulted in the issuance of shares of beneficial interest that share in the earnings of the Trust. Diluted earnings per share was determined by dividing net income applicable to common shareholders for each year by the total of the weighted average number of shares of beneficial interest outstanding plus the dilutive effect of the Trust's unvested restricted stock and outstanding options and warrants using the treasury stock method. </font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Cash Equivalents </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents consist of highly liquid investments, primarily direct United States treasury obligations with maturities of three months or less when purchased. </font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Use of Estimates </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. </font></p> <p style="FONT-FAMILY: times"><font size="2"><b>Segment Reporting </b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management has determined that it operates in two reportable segments: a loan and investment segment and a real estate segment. The loan and investment segment includes all activities related to the origination and servicing of our loan portfolio and other investments and the real estate segment includes all activities related to the development, operation and disposition of the Trusts real estate assets. These two lines of business require different support infrastructures. </font></p> <p style="FONT-FAMILY: times"><font size="2"><b>New Accounting Pronouncements</b></font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2009, the FASB issued updated guidance, which amends guidance for determining whether an entity is a variable interest entity, or VIE, and requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i)&nbsp;the power to direct the activities that most significantly impact the entity's economic performance and (ii)&nbsp;the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. This guidance was effective for the first annual reporting period that began after November&nbsp;15, 2009. The Trust adopted this guidance on October&nbsp;1, 2010 and the adoption did not have a material impact on the consolidated financial statements. </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July 2010, the FASB issued updated guidance on disclosures about the credit quality of financing receivables and the allowance for credit losses which will require a greater level of information disclosed about the credit quality of loans and allowance for loan losses, as well as additional information related to credit quality indicators, past due information, and information related to loans modified in a troubled debt restructuring. This guidance became effective for public entities for interim and annual reporting periods ending on or after December&nbsp;15, 2010. The Trust adopted this guidance on January&nbsp;1, 2011 and the adoption did not have a material impact on the consolidated financial statements.</font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April 2011, the FASB issued Accounting Standard Unit (ASU) No.&nbsp;2011-02 which is included in Accounting Standards Codification (ASC) 320, Receivables. This update requires a creditor to evaluate whether a restructuring constitutes a troubled debt restructuring by concluding that the restructuring constitutes a concession and that the debtor is experiencing financial difficulties. This guidance was effective for the Trust interim reporting beginning July&nbsp;1, 2011. This guidance did not have a material impact on its financial condition, results of operations or disclosures. </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2011, the FASB issued ASU No.&nbsp;2011-04, which is included in ASC 820, Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S GAAP and IFRS. This update defines fair value, clarifies a framework to measure fair value, and requires specific disclosures of fair value measurements. The guidance will be effective for the Trust's interim and annual reporting periods beginning October&nbsp;1, 2011, and applied prospectively. The Trust does not expect adoption of this guidance to have a material impact on its financial condition, results of operations, or disclosures. </font></p> <p style="FONT-FAMILY: times"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2011, the FASB issued ASU No.&nbsp;2011-05, which is included in ASC 220, Presentation of Comprehensive Income. This update improves the comparability, consistency, and transparency of financial reporting and increases the prominence of items reported in other comprehensive income. The guidance requires all non-owner changes in shareholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The guidance will be effective for the Trust's interim and annual reporting periods beginning January&nbsp;1, 2012, and applied retrospectively. The Trust does not expect adoption of this guidance to have a material impact on its financial condition, results of operations, or disclosures. </font></p></td></tr></table>
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CY2011 dei Entity Filer Category
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CY2011 dei Entity Voluntary Filers
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CY2011 dei Current Fiscal Year End Date
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CY2011 dei Document Type
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