2018 Form 10-K Financial Statement

#000116669119000005 Filed on January 31, 2019

View on sec.gov

Income Statement

Concept 2018 2017 Q4 2017 Q3
Revenue $94.51B $22.08B $21.08B
YoY Change 11.15% 4.99% -1.12%
Cost Of Revenue $29.69B $6.905B $6.059B
YoY Change 17.11% 5.63% -13.48%
Gross Profit $64.82B $15.17B $15.02B
YoY Change 8.62% 4.71% 4.93%
Gross Profit Margin 68.58% 68.72% 71.26%
Selling, General & Admin $35.01B $8.432B $7.889B
YoY Change 10.36% 9.11% 5.45%
% of Gross Profit 54.01% 55.58% 52.52%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $8.281B $2.609B $1.991B
YoY Change 4.64% 4.53% 6.76%
% of Gross Profit 12.78% 17.2% 13.25%
Operating Expenses $46.02B $11.04B $10.44B
YoY Change 9.97% 7.99% 5.66%
Operating Profit $19.01B $4.129B $4.779B
YoY Change 5.5% -3.17% 7.64%
Interest Expense $3.542B -$729.0M $766.0M
YoY Change 14.78% -3.83% 2.0%
% of Operating Profit 18.63% -17.66% 16.03%
Other Income/Expense, Net -$225.0M $44.00M $70.00M
YoY Change -153.44% -81.36% -109.78%
Pretax Income $15.24B $3.444B $4.083B
YoY Change -0.72% -7.82% 9.64%
Income Tax $3.380B $1.075B $1.409B
% Of Pretax Income 22.18% 31.21% 34.51%
Net Earnings $11.73B $15.00B $2.642B
YoY Change -48.4% 553.27% 18.1%
Net Earnings / Revenue 12.41% 67.95% 12.53%
Basic Earnings Per Share $2.56 $3.22 $0.56
Diluted Earnings Per Share $2.53 $3.17 $0.55
COMMON SHARES
Basic Shares Outstanding 4.584B shares 4.698B shares
Diluted Shares Outstanding 4.640B shares 4.777B shares

Balance Sheet

Concept 2018 2017 Q4 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.814B $4.025B $4.705B
YoY Change 11.26% 15.03% 58.26%
Cash & Equivalents $3.814B $3.428B $4.114B
Short-Term Investments $597.0M $591.0M
Other Short-Term Assets $6.930B $2.468B $2.152B
YoY Change 69.81% 18.48% -38.85%
Inventory
Prepaid Expenses
Receivables $11.10B $8.834B $7.915B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $21.85B $16.34B $15.96B
YoY Change 33.68% -0.11% 4.81%
LONG-TERM ASSETS
Property, Plant & Equipment $44.44B $38.47B $37.86B
YoY Change 15.51% 6.12% 6.17%
Goodwill $36.78B $36.75B
YoY Change 2.22% 0.27%
Intangibles
YoY Change
Long-Term Investments $7.883B $3.546B $3.351B
YoY Change 13.74% 49.24% 176.49%
Other Assets $4.403B $4.354B $3.145B
YoY Change 1.13% 57.24% 18.32%
Total Long-Term Assets $229.8B $171.1B $169.3B
YoY Change 34.31% 4.25% 4.08%
TOTAL ASSETS
Total Short-Term Assets $21.85B $16.34B $15.96B
Total Long-Term Assets $229.8B $171.1B $169.3B
Total Assets $251.7B $187.5B $185.3B
YoY Change 34.26% 3.86% 4.15%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.494B $6.908B $6.976B
YoY Change 22.96% -0.1% 5.79%
Accrued Expenses $12.53B $6.620B $5.849B
YoY Change 51.61% 5.38% 12.46%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $4.398B $5.134B $5.241B
YoY Change -14.34% -6.31% 57.25%
Total Short-Term Liabilities $27.60B $21.99B $21.45B
YoY Change 25.51% 2.13% 18.91%
LONG-TERM LIABILITIES
Long-Term Debt $107.3B $59.42B $59.72B
YoY Change 80.65% 6.94% 4.6%
Other Long-Term Liabilities $15.33B $10.97B $10.91B
YoY Change 39.71% 0.43% -1.84%
Total Long-Term Liabilities $122.7B $10.97B $10.91B
YoY Change 74.27% 0.43% -1.84%
TOTAL LIABILITIES
Total Short-Term Liabilities $27.60B $21.99B $21.45B
Total Long-Term Liabilities $122.7B $10.97B $10.91B
Total Liabilities $180.1B $32.97B $32.36B
YoY Change 51.52% 1.56% 11.0%
SHAREHOLDERS EQUITY
Retained Earnings $38.20B $24.98B
YoY Change 65.55% 10.97%
Common Stock $55.00M $55.00M
YoY Change -1.79% 96.43%
Preferred Stock
YoY Change
Treasury Stock (at cost) $7.517B $7.517B
YoY Change 0.0% 0.0%
Treasury Stock Shares
Shareholders Equity $71.61B $68.62B $55.43B
YoY Change
Total Liabilities & Shareholders Equity $251.7B $187.5B $185.3B
YoY Change 34.26% 3.86% 4.15%

Cashflow Statement

Concept 2018 2017 Q4 2017 Q3
OPERATING ACTIVITIES
Net Income $11.73B $15.00B $2.642B
YoY Change -48.4% 553.27% 18.1%
Depreciation, Depletion And Amortization $8.281B $2.609B $1.991B
YoY Change 4.64% 4.53% 6.76%
Cash From Operating Activities $24.30B $5.404B $5.108B
YoY Change 14.28% -5.9% 37.94%
INVESTING ACTIVITIES
Capital Expenditures $9.774B -$3.180B $2.434B
YoY Change 2.35% 2.71% 1.16%
Acquisitions $38.22B
YoY Change 7084.02%
Other Investing Activities -$650.0M -$430.0M $283.0M
YoY Change -17.2% -62.18% -105.15%
Cash From Investing Activities -$50.85B -$3.610B -$2.516B
YoY Change 275.78% -14.72% -69.77%
FINANCING ACTIVITIES
Cash Dividend Paid $3.352B
YoY Change 16.27%
Common Stock Issuance & Retirement, Net $5.320B
YoY Change -2.12%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $27.14B -2.451B -1.186B
YoY Change -458.43% 141.24% -142.92%
NET CHANGE
Cash From Operating Activities $24.30B 5.404B 5.108B
Cash From Investing Activities -$50.85B -3.610B -2.516B
Cash From Financing Activities $27.14B -2.451B -1.186B
Net Change In Cash $338.0M -657.0M 1.406B
YoY Change 116.67% -233.0% -175.67%
FREE CASH FLOW
Cash From Operating Activities $24.30B $5.404B $5.108B
Capital Expenditures $9.774B -$3.180B $2.434B
Free Cash Flow $14.52B $8.584B $2.674B
YoY Change 24.01% -2.88% 106.17%

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CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.015
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.022
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.027
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
41000000 shares
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
5.78
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
7.01
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
7.14
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
27.69
CY2018 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
35.81
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y1M01D
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y1M01D
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y
CY2017Q4 us-gaap Short Term Investments
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19000000 USD
CY2018Q4 us-gaap Short Term Investments
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94000000 USD
CY2016 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
156000000 USD
CY2017 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
190000000 USD
CY2018 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
214000000 USD
CY2016 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
5376000000 USD
CY2017 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
5456000000 USD
CY2018 us-gaap Stock Repurchased And Retired During Period Value
StockRepurchasedAndRetiredDuringPeriodValue
5329000000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
68616000000 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
71613000000 USD
CY2015Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
53978000000 USD
CY2016Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
56163000000 USD
CY2017Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
69459000000 USD
CY2018Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
72502000000 USD
CY2016 us-gaap Stockholders Equity Other
StockholdersEquityOther
-144000000 USD
CY2017 us-gaap Stockholders Equity Other
StockholdersEquityOther
-312000000 USD
CY2018 us-gaap Stockholders Equity Other
StockholdersEquityOther
217000000 USD
CY2017Q4 us-gaap Theatrical Film Costs
TheatricalFilmCosts
2933000000 USD
CY2018Q4 us-gaap Theatrical Film Costs
TheatricalFilmCosts
2807000000 USD
CY2017Q4 us-gaap Theatrical Film Costs Completed And Not Released
TheatricalFilmCostsCompletedAndNotReleased
50000000 USD
CY2018Q4 us-gaap Theatrical Film Costs Completed And Not Released
TheatricalFilmCostsCompletedAndNotReleased
144000000 USD
CY2017Q4 us-gaap Theatrical Film Costs Released
TheatricalFilmCostsReleased
1734000000 USD
CY2018Q4 us-gaap Theatrical Film Costs Released
TheatricalFilmCostsReleased
1600000000 USD
CY2017Q4 us-gaap Treasury Stock Value
TreasuryStockValue
7517000000 USD
CY2018Q4 us-gaap Treasury Stock Value
TreasuryStockValue
7517000000 USD
CY2015Q4 us-gaap Unrecognized Tax Benefits
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1441000000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1443000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1497000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1543000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
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66000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
251000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
346000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
47000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
65000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
17000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
74000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
121000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
229000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
72000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
319000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
125000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
173000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
203000000 USD
CY2016 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
44000000 USD
CY2017 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
70000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
75000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
1100000000 USD
CY2016 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
4875000000 shares
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
4786000000 shares
CY2018 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
4640000000 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
4819000000 shares
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
4708000000 shares
CY2018 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
4584000000 shares
CY2018 us-gaap Advertising Cost Policy Expensed Advertising Cost
AdvertisingCostPolicyExpensedAdvertisingCost
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;">Advertising costs are expensed as incurred.</font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;">Our consolidated financial statements are prepared in accordance with GAAP, which require us to select accounting policies, including in certain cases industry-specific policies, and make estimates that affect the reported amount of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and contingent liabilities. Actual results could differ from these estimates. We believe that the judgments and related estimates for the following items are critical in the preparation of our consolidated financial statements:</font><font style="font-family:Times New Roman;font-size:10pt;"> </font></div><table cellpadding="0" cellspacing="0" style="padding-top:0px;padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Times New Roman;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;">valuation and impairment testing of cable franchise rights (see Note 12)</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:0px;padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Times New Roman;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;">film and television costs (see Note 4)</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:0px;padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Times New Roman;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;">fair value of acquisition-related assets and liabilities (see Note 8)</font></div></td></tr></table><div style="line-height:120%;padding-bottom:8px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;">In addition, the following accounting policies are specific to the industries in which we operate:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:0px;padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Times New Roman;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;">capitalization and amortization of film and television costs (see Note 4)</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:0px;padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Times New Roman;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;">costs for connecting customers to our cable systems (see Note 11)</font></div></td></tr></table><div style="line-height:120%;padding-bottom:8px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;">Information on other accounting policies and methods that we use in the preparation of our consolidated financial statements are included, where applicable, in their respective footnotes that follow. Below is a discussion of accounting policies and methods used in our consolidated financial statements that are not presented within other footnotes.</font><font style="font-family:Times New Roman;font-size:10pt;"> </font></div></div>

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