2016 Form 10-K Financial Statement

#000093634017000064 Filed on February 09, 2017

View on sec.gov

Income Statement

Concept 2016 2015 Q4 2015 Q3
Revenue $10.63B $2.487B $2.598B
YoY Change 2.83% -19.2% 0.12%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $976.0M $227.0M $196.0M
YoY Change 14.55% -21.72% -33.11%
% of Gross Profit
Operating Expenses $9.135B $2.256B $2.133B
YoY Change 1.59% -10.48% -10.0%
Operating Profit $1.486B $134.0M $440.0M
YoY Change 19.94% -75.28% 84.1%
Interest Expense $472.0M -$106.0M $116.0M
YoY Change 4.89% -12.4% 8.41%
% of Operating Profit 31.76% -79.1% 26.36%
Other Income/Expense, Net -$381.0M $29.00M -$74.00M
YoY Change 31.83% -1066.67% 21.31%
Pretax Income $1.105B $57.00M $366.0M
YoY Change 16.32% -86.93% 105.62%
Income Tax $271.0M -$20.00M $102.0M
% Of Pretax Income 24.52% -35.09% 27.87%
Net Earnings $868.0M $80.00M $265.0M
YoY Change 19.39% -73.24% 69.87%
Net Earnings / Revenue 8.17% 3.22% 10.2%
Basic Earnings Per Share $4.84 $0.45 $1.47
Diluted Earnings Per Share $4.83 $0.45 $1.47
COMMON SHARES
Basic Shares Outstanding 179.0M shares 179.0M shares
Diluted Shares Outstanding 179.0M shares 180.0M shares

Balance Sheet

Concept 2016 2015 Q4 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $92.00M $37.00M $67.00M
YoY Change 148.65% -22.92% 11.67%
Cash & Equivalents $92.00M $37.00M $67.00M
Short-Term Investments
Other Short-Term Assets $305.0M $203.0M $346.0M
YoY Change -21.19% -14.71% 13.44%
Inventory $772.0M $803.0M $840.0M
Prepaid Expenses
Receivables $1.522B $1.276B $1.242B
Other Receivables $71.00M $72.00M $79.00M
Total Short-Term Assets $2.762B $2.575B $2.700B
YoY Change 7.26% -14.51% -2.0%
LONG-TERM ASSETS
Property, Plant & Equipment $19.73B $18.03B $17.87B
YoY Change 9.4% 7.22% 8.29%
Goodwill $2.018B $2.018B
YoY Change 0.0% 0.0%
Intangibles $89.00M $100.0M
YoY Change -19.82% -16.67%
Long-Term Investments $2.307B $514.0M $1.931B
YoY Change 15.93% 18.43% 2.93%
Other Assets $4.041B $179.0M $248.0M
YoY Change 4.39% -30.89% 2.06%
Total Long-Term Assets $29.28B $6.117B $6.204B
YoY Change 12.24% -1.31% 17.61%
TOTAL ASSETS
Total Short-Term Assets $2.762B $2.575B $2.700B
Total Long-Term Assets $29.28B $6.117B $6.204B
Total Assets $32.04B $28.66B $28.65B
YoY Change 11.79% 3.0% 8.64%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.079B $809.0M $835.0M
YoY Change 33.37% -16.86% -4.35%
Accrued Expenses $96.00M $89.00M $119.0M
YoY Change 7.87% 3.49% 8.18%
Deferred Revenue
YoY Change
Short-Term Debt $499.0M $499.0M $185.0M
YoY Change 0.0% 25.38% -71.67%
Long-Term Debt Due $14.00M $473.0M $468.0M
YoY Change -97.04% 72.63% 70.8%
Total Short-Term Liabilities $2.437B $2.528B $2.273B
YoY Change -3.6% -1.9% -18.97%
LONG-TERM LIABILITIES
Long-Term Debt $11.27B $8.280B $8.368B
YoY Change 28.64% 5.34% 12.69%
Other Long-Term Liabilities $4.674B $207.0M $219.0M
YoY Change 0.39% -26.33% -21.22%
Total Long-Term Liabilities $15.94B $8.579B $8.692B
YoY Change 18.84% -0.67% 16.27%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.437B $2.528B $2.273B
Total Long-Term Liabilities $15.94B $8.579B $8.692B
Total Liabilities $23.03B $11.11B $10.97B
YoY Change 15.79% -0.95% 6.65%
SHAREHOLDERS EQUITY
Retained Earnings $4.794B $4.845B
YoY Change 4.72% 10.06%
Common Stock $4.123B $4.117B
YoY Change 5.61% 5.56%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $9.011B $8.772B $8.812B
YoY Change
Total Liabilities & Shareholders Equity $32.04B $28.66B $28.65B
YoY Change 11.79% 2.73% 8.64%

Cashflow Statement

Concept 2016 2015 Q4 2015 Q3
OPERATING ACTIVITIES
Net Income $868.0M $80.00M $265.0M
YoY Change 19.39% -73.24% 69.87%
Depreciation, Depletion And Amortization $976.0M $227.0M $196.0M
YoY Change 14.55% -21.72% -33.11%
Cash From Operating Activities $2.084B $443.0M $293.0M
YoY Change 8.77% -19.01% 31.98%
INVESTING ACTIVITIES
Capital Expenditures -$2.045B -$619.0M -$506.0M
YoY Change 1.24% 13.16% 19.91%
Acquisitions $1.147B
YoY Change 375.93%
Other Investing Activities -$36.00M -$13.00M -$30.00M
YoY Change -30.77% -76.79% -193.75%
Cash From Investing Activities -$3.390B -$632.0M -$536.0M
YoY Change 53.81% 4.81% 37.44%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $33.00M
YoY Change -466.67%
Debt Paid & Issued, Net $807.0M
YoY Change 182.17%
Cash From Financing Activities $1.359B 159.0M 80.00M
YoY Change 390.61% 261.36% -47.71%
NET CHANGE
Cash From Operating Activities $2.084B 443.0M 293.0M
Cash From Investing Activities -$3.390B -632.0M -536.0M
Cash From Financing Activities $1.359B 159.0M 80.00M
Net Change In Cash $53.00M -30.00M -163.0M
YoY Change -581.82% 150.0% 986.67%
FREE CASH FLOW
Cash From Operating Activities $2.084B $443.0M $293.0M
Capital Expenditures -$2.045B -$619.0M -$506.0M
Free Cash Flow $4.129B $1.062B $799.0M
YoY Change 4.9% -2.93% 24.07%

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CY2016Q4 us-gaap Capital Leases Lessor Balance Sheet Net Investment In Direct Financing Leases Noncurrent
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CY2016Q4 us-gaap Capital Leases Net Investment In Direct Financing Leases
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CY2015 us-gaap Capitalized Computer Software Amortization1
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CY2016 us-gaap Capitalized Computer Software Amortization1
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CY2016Q4 us-gaap Capitalized Computer Software Gross
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CY2014Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2015Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2016Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2016 us-gaap Cash And Cash Equivalents Period Increase Decrease
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CY2016Q4 us-gaap Collateral Already Posted Aggregate Fair Value
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CY2015Q4 us-gaap Commitments And Contingencies
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CY2016Q4 us-gaap Commitments And Contingencies
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CY2016 us-gaap Common Stock Dividends Per Share Declared
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CY2015Q4 us-gaap Common Stock Par Or Stated Value Per Share
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CY2016Q4 us-gaap Common Stock Par Or Stated Value Per Share
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CY2016Q4 us-gaap Common Stock Shares Issued
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CY2015Q4 us-gaap Common Stock Shares Authorized
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CY2016Q4 us-gaap Common Stock Shares Authorized
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CY2015Q4 us-gaap Common Stock Shares Issued
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CY2016Q4 us-gaap Cumulative Effect Of New Accounting Principle In Period Of Adoption
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CY2016Q4 us-gaap Common Stock Shares Outstanding
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CY2015Q4 us-gaap Common Stock Value
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CY2016Q4 us-gaap Common Stock Value
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CY2014 us-gaap Comprehensive Income Net Of Tax
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CY2015 us-gaap Comprehensive Income Net Of Tax
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CY2016 us-gaap Comprehensive Income Net Of Tax
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CY2014 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
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CY2014 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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CY2015 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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CY2016 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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CY2014 us-gaap Cost Of Services Depreciation And Amortization
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CY2015 us-gaap Current Income Tax Expense Benefit
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CY2016 us-gaap Current Income Tax Expense Benefit
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CY2016 us-gaap Current State And Local Tax Expense Benefit
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CY2016Q4 us-gaap Debt Instrument Face Amount
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CY2015Q4 us-gaap Decommissioning Fund Investments
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CY2016Q4 us-gaap Decommissioning Fund Investments
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CY2016Q4 us-gaap Decommissioning Liability Noncurrent
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CY2014 us-gaap Deferred Federal Income Tax Expense Benefit
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CY2016 us-gaap Deferred Federal Income Tax Expense Benefit
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CY2014 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
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CY2015 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
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CY2016 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
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CY2016Q4 us-gaap Deferred Income Tax Liabilities
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CY2014 us-gaap Deferred Income Taxes And Tax Credits
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CY2015 us-gaap Deferred Income Taxes And Tax Credits
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CY2016 us-gaap Deferred Income Taxes And Tax Credits
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CY2015 us-gaap Deferred State And Local Income Tax Expense Benefit
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CY2016 us-gaap Deferred State And Local Income Tax Expense Benefit
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CY2014 us-gaap Deferred State And Local Income Tax Expense Benefit
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CY2016Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards Domestic
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CY2015Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards State And Local
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CY2016Q4 us-gaap Deferred Tax Assets Regulatory Assets And Liabilities
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CY2015Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards
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CY2016Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards
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CY2016Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards Alternative Minimum Tax
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CY2016Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards General Business
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CY2015Q4 us-gaap Deferred Tax Assets Valuation Allowance
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CY2016 us-gaap Depreciation
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CY2016 us-gaap Depreciation Depletion And Amortization
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CY2015Q4 us-gaap Derivative Asset Collateral Obligation To Return Cash Offset
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CY2015Q4 us-gaap Derivative Asset Fair Value Gross Liability And Obligation To Return Cash Offset
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CY2016Q4 us-gaap Derivative Asset Fair Value Gross Liability And Obligation To Return Cash Offset
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CY2015Q4 us-gaap Derivative Assets
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CY2016Q4 us-gaap Derivative Assets
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CY2015Q4 us-gaap Derivative Liabilities
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CY2016Q4 us-gaap Derivative Liabilities
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167000000 USD
CY2015Q4 us-gaap Derivative Liabilities Current
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57000000 USD
CY2016Q4 us-gaap Derivative Liabilities Current
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69000000 USD
CY2015Q4 us-gaap Derivative Liabilities Noncurrent
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86000000 USD
CY2016Q4 us-gaap Derivative Liabilities Noncurrent
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CY2015Q4 us-gaap Derivative Liability Collateral Right To Reclaim Cash Offset
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36000000 USD
CY2016Q4 us-gaap Derivative Liability Collateral Right To Reclaim Cash Offset
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CY2015Q4 us-gaap Derivative Liability Fair Value Gross Asset And Right To Reclaim Cash Offset
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CY2016Q4 us-gaap Derivative Liability Fair Value Gross Asset And Right To Reclaim Cash Offset
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489000000 USD
CY2016Q4 us-gaap Derivative Net Liability Position Aggregate Fair Value
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CY2014 us-gaap Dividends Common Stock Cash
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CY2015 us-gaap Dividends Common Stock Cash
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510000000 USD
CY2016 us-gaap Dividends Common Stock Cash
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CY2015Q4 us-gaap Dividends Payable Current
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CY2016Q4 us-gaap Dividends Payable Current
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1.47
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0.45
CY2015 us-gaap Earnings Per Share Basic
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1.38
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0.84
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1.88
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0.73
CY2016 us-gaap Earnings Per Share Basic
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4.84
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5.10
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1.53
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0.61
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1.47
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EarningsPerShareDiluted
0.45
CY2015 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
4.05
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1.37
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EarningsPerShareDiluted
0.84
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1.88
CY2016Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.73
CY2016 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
4.83
CY2014 us-gaap Effective Income Tax Rate Continuing Operations
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0.285
CY2015 us-gaap Effective Income Tax Rate Continuing Operations
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0.242
CY2016 us-gaap Effective Income Tax Rate Continuing Operations
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0.245
CY2014 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.35
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0.35
CY2016 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2016Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
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P1Y26D
CY2015Q4 us-gaap Energy Related Inventory
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480000000 USD
CY2016Q4 us-gaap Energy Related Inventory
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CY2015Q4 us-gaap Equity Method Investment Difference Between Carrying Amount And Underlying Equity
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81000000 USD
CY2016Q4 us-gaap Equity Method Investment Difference Between Carrying Amount And Underlying Equity
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73000000 USD
CY2014 us-gaap Equity Method Investment Dividends Or Distributions
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55000000 USD
CY2015 us-gaap Equity Method Investment Dividends Or Distributions
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64000000 USD
CY2016 us-gaap Equity Method Investment Dividends Or Distributions
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CY2014Q4 us-gaap Equity Method Investments
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CY2015Q4 us-gaap Equity Method Investments
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CY2016Q4 us-gaap Equity Method Investments
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CY2016 us-gaap Extinguishment Of Debt Amount
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2000000 USD
CY2016 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Purchases
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1000000 USD
CY2015 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Settlements
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34000000 USD
CY2016 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Settlements
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CY2015 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Into Level3
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationTransfersIntoLevel3
0 USD
CY2016 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Into Level3
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationTransfersIntoLevel3
0 USD
CY2015 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Out Of Level3
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0 USD
CY2016 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Out Of Level3
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0 USD
CY2014Q4 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis With Unobservable Inputs
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24000000 USD
CY2015Q4 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis With Unobservable Inputs
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CY2016Q4 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis With Unobservable Inputs
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CY2015Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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62000000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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70000000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
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26000000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
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21000000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
24000000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
26000000 USD
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CY2016 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"></font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NEW ACCOUNTING PRONOUNCEMENTS</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Recently Adopted Pronouncements</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2015, the FASB issued ASU No. 2015-02, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Amendments to the Consolidation Analysis</font><font style="font-family:inherit;font-size:10pt;">, which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The ASU affects (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. It is effective for the Registrants for the first interim period within annual reporting periods beginning after December 15, 2015. The Registrants adopted this ASU at January 1, 2016. The implementation of this guidance is reflected in </font><font style="font-family:inherit;font-size:10pt;">Note 1</font><font style="font-family:inherit;font-size:10pt;"> of the Consolidated Financial Statements, "</font><font style="font-family:inherit;font-size:10pt;">Organization and Basis of Presentation</font><font style="font-family:inherit;font-size:10pt;">." Certain entities are now deemed to be VIEs and are included in DTE Energy's non-consolidated VIE table. This implementation did not have a significant impact on the Registrants' Consolidated Financial Statements.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2015, the FASB issued ASU No. 2015-03, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Simplifying the Presentation of Debt Issuance Costs</font><font style="font-family:inherit;font-size:10pt;">. This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU is effective for reporting periods beginning after December 15, 2015 and interim periods therein. It is to be applied retrospectively. The Registrants adopted this ASU at January 1, 2016. The implementation of this guidance is reflected in </font><font style="font-family:inherit;font-size:10pt;">Note 14</font><font style="font-family:inherit;font-size:10pt;"> of the Consolidated Financial Statements, "</font><font style="font-family:inherit;font-size:10pt;">Long-Term Debt</font><font style="font-family:inherit;font-size:10pt;">." The effect of the adoption decreased assets and liabilities on DTE Energy's and DTE Electric's Consolidated Statements of Financial Position by </font><font style="font-family:inherit;font-size:10pt;">$75 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$36 million</font><font style="font-family:inherit;font-size:10pt;">, respectively, at December 31, 2015.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2015, the FASB issued ASU 2015-07,</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). </font><font style="font-family:inherit;font-size:10pt;">This guidance removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share (or its equivalent) practical expedient. The guidance applies to investments for which there is not a readily determinable fair value (market quote) or the investment is in a mutual fund without a publicly available net asset value. It is effective for the Registrants for the first interim period within annual reporting periods beginning after December 15, 2015. It is to be applied retrospectively. The Registrants adopted this ASU at January 1, 2016. The implementation of this guidance is reflected in </font><font style="font-family:inherit;font-size:10pt;">Notes 12 and 20</font><font style="font-family:inherit;font-size:10pt;"> to the Consolidated Financial Statements, "</font><font style="font-family:inherit;font-size:10pt;">Fair Value</font><font style="font-family:inherit;font-size:10pt;">" and "</font><font style="font-family:inherit;font-size:10pt;">Retirement Benefits and Trusteed Assets</font><font style="font-family:inherit;font-size:10pt;">," respectively. This implementation did not have a significant impact on the Registrants' Consolidated Financial Statements.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;color:#252525;">In March 2016, the FASB issued ASU No. 2016-09, </font><font style="font-family:inherit;font-size:10pt;color:#252525;font-style:italic;">Compensation</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> </font><font style="font-family:inherit;font-size:10pt;">&#8212; </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Stock Compensation (Topic 718): </font><font style="font-family:inherit;font-size:10pt;color:#252525;font-style:italic;">Improvements to Employee Share-Based Payment Accounting.</font><font style="font-family:inherit;font-size:10pt;color:#252525;"> The ASU simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the Consolidated Statements of Cash Flows. Under the new standard, income tax benefits and deficiencies are to be recognized in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. This provision is to be applied prospectively. Excess tax benefits should be recognized regardless of whether the benefit reduces taxes payable in the current period, along with any valuation allowance, on a modified retrospective basis as a cumulative-effect adjustment to the retained earnings as of the date of adoption. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. This provision can be applied prospectively or retrospectively for all periods presented. </font><font style="font-family:inherit;font-size:10pt;">The standard is effective for public entities for annual reporting periods beginning after December 15, 2016, and interim periods therein. Effective July 1, 2016 DTE Energy elected to early adopt this standard, as permitted. As a result of the adoption, DTE Energy recognized </font><font style="font-family:inherit;font-size:10pt;">$1 million</font><font style="font-family:inherit;font-size:10pt;"> of excess tax benefits on stock-based compensation expense in its Consolidated Statements of Operations as a component of the provision for income taxes on a prospective basis. DTE Energy also recognized a </font><font style="font-family:inherit;font-size:10pt;">$3 million</font><font style="font-family:inherit;font-size:10pt;"> cumulative-effect adjustment to increase Retained earnings under the modified retrospective approach. While there was no impact to the current period, cash flows related to the excess tax benefits on DTE Energy's Consolidated Statements of Cash Flows will be classified as operating activities on a prospective basis. Due to the prospective election, prior period amounts have not been adjusted. In addition, cash paid on the employees&#8217; behalf related to restricted shares withheld for tax purposes have been classified as a financing activity on a retrospective basis. For the </font><font style="font-family:inherit;font-size:10pt;">year ended December 31, 2016</font><font style="font-family:inherit;font-size:10pt;">, the implementation resulted in an increase to Net cash from operating activities with a corresponding decrease to Net cash from financing activities of </font><font style="font-family:inherit;font-size:10pt;">$4 million</font><font style="font-family:inherit;font-size:10pt;">. This retrospective application resulted in an increase to Net cash from operating activities with a corresponding decrease to Net cash from financing activities of </font><font style="font-family:inherit;font-size:10pt;">$5 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$6 million</font><font style="font-family:inherit;font-size:10pt;"> for the </font><font style="font-family:inherit;font-size:10pt;">years ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2014</font><font style="font-family:inherit;font-size:10pt;">, respectively. Finally, DTE Energy's stock compensation expense continues to reflect estimated forfeitures.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Recently Issued Pronouncements</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued ASU No. 2014-09, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue from Contracts with Customers (Topic 606), </font><font style="font-family:inherit;font-size:10pt;">as amended</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">.</font><font style="font-family:inherit;font-size:10pt;"> The objectives of this ASU are to improve upon revenue recognition requirements by providing a single comprehensive model to determine the measurement of revenue and timing of recognition. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. This ASU also requires expanded qualitative and quantitative disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. The standard is effective for the first interim period within annual reporting periods beginning after December 15, 2017. The standard is to be applied retrospectively and early adoption is permitted in the preceding year. The Registrants do not plan to early adopt the standard. The Registrants are currently assessing the impact of the ASU, as amended, on their Consolidated Financial Statements as well as the transition method the Registrants will use to adopt the guidance. Specifically, the Registrants are considering whether the new guidance will affect accounting for certain contracts where collectibility is in question, contributions in aid of construction, and other utility industry-related areas.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In July 2015, the FASB issued ASU No. 2015-11,</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> Inventory (Topic 330), Simplifying the Measurement of Inventory</font><font style="font-family:inherit;font-size:10pt;">. The ASU replaces the current lower of cost or market test with a lower of cost or net realizable value test when cost is determined on a first-in, first-out or average cost basis. The standard is effective for public entities for annual reporting periods beginning after December 15, 2016, and interim periods therein. It is to be applied prospectively and early adoption is permitted. The ASU will not have a significant impact on the Registrants' Consolidated Financial Statements.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2016, the FASB issued ASU No. 2016-01, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Financial Instruments </font><font style="font-family:inherit;font-size:10pt;">&#8212; </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Overall: </font><font style="font-family:inherit;font-size:10pt;color:#252525;font-style:italic;">Recognition and Measurement of Financial Assets and Financial Liabilities. </font><font style="font-family:inherit;font-size:10pt;">The new guidance is intended to improve the recognition and measurement of financial instruments. The ASU primarily impacts accounting for equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) and financial liabilities under the fair value option. Under the new guidance, equity investments will generally be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Upon adoption, entities will be required to make a cumulative-effect adjustment to the Statements of Financial Position as of the beginning of the first reporting period in which the guidance is effective. Changes to the accounting for equity securities without a readily determinable fair value will be applied prospectively. The ASU will not have a significant impact on the Registrants' Consolidated Financial Statements.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued ASU No. 2016-02, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Leases (Topic 842), </font><font style="font-family:inherit;font-size:10pt;">a replacement of </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Leases (Topic 840)</font><font style="font-family:inherit;font-size:10pt;">. This guidance requires a lessee to account for leases as finance or operating leases. Both leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with differing methodology for income statement recognition. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. Entities will classify leases to determine how to recognize lease-related revenue and expense. This ASU is effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for leases existing or entered into after the beginning of the earliest comparative period in the Consolidated Financial Statements. The Registrants expect an increase in assets and liabilities, however, they are currently assessing the impact of this ASU on their Consolidated Financial Statements.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2016, the FASB issued ASU No. 2016-13,</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> Financial Instruments </font><font style="font-family:inherit;font-size:10pt;">&#8212;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments</font><font style="font-family:inherit;font-size:10pt;">. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Entities will apply the new guidance as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The ASU is effective for the Registrants beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Registrants are currently assessing the impact of this standard on their Consolidated Financial Statements.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2017, the FASB issued ASU No. 2017-04, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Intangibles </font><font style="font-family:inherit;font-size:10pt;">&#8212;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment</font><font style="font-family:inherit;font-size:10pt;">. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit&#8217;s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard will be applied prospectively, and is effective for public entities that are SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for any impairment tests performed after January 1, 2017.</font></div></div>
CY2016 us-gaap Derivatives Methods Of Accounting Nonhedging Derivatives
DerivativesMethodsOfAccountingNonhedgingDerivatives
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Revenues and energy costs related to trading contracts are presented on a net basis in DTE Energy's Consolidated Statements of Operations. Commodity derivatives used for trading purposes, and financial non-trading commodity derivatives, are accounted for using the MTM method with unrealized and realized gains and losses recorded in Operating Revenues &#8212; Non-utility operations. Non-trading physical commodity sale and purchase derivative contracts are generally accounted for using the MTM method with unrealized and realized gains and losses for sales recorded in Operating Revenues &#8212; Non-utility operations and purchases recorded in Fuel, purchased power, and gas &#8212; non-utility.</font></div></div>
CY2016 us-gaap Derivatives Reporting Of Derivative Activity
DerivativesReportingOfDerivativeActivity
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Derivative Assets and Liabilities</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Derivative assets and liabilities are comprised of physical and financial derivative contracts, including futures, forwards, options, and swaps that are both exchange-traded and over-the-counter traded contracts. Various inputs are used to value derivatives depending on the type of contract and availability of market data. Exchange-traded derivative contracts are valued using quoted prices in active markets. The Registrants consider the following criteria in determining whether a market is considered active: frequency in which pricing information is updated, variability in pricing between sources or over time, and the availability of public information. Other derivative contracts are valued based upon a variety of inputs including commodity market prices, broker quotes, interest rates, credit ratings, default rates, market-based seasonality, and basis differential factors. The Registrants monitor the prices that are supplied by brokers and pricing services and may use a supplemental price source or change the primary price source of an index if prices become unavailable or another price source is determined to be more representative of fair value. The Registrants have obtained an understanding of how these prices are derived. Additionally, the Registrants selectively corroborate the fair value of their transactions by comparison of market-based price sources. Mathematical valuation models are used for derivatives for which external market data is not readily observable, such as contracts which extend beyond the actively traded reporting period. The Registrants have established a Risk Management Committee whose responsibilities include directly or indirectly ensuring all valuation methods are applied in accordance with predefined policies. The development and maintenance of the Registrants' forward price curves has been assigned to DTE Energy's Risk Management Department, which is separate and distinct from the trading functions within DTE Energy.</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font></div></div>
CY2016 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior year balances for the Registrants were reclassified to match the current year's Consolidated Financial Statements presentation. </font></div></div>

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