2019 Q4 Form 10-K Financial Statement

#000159071420000023 Filed on February 28, 2020

View on sec.gov

Income Statement

Concept 2019 Q4 2019 Q3 2019 Q2
Revenue $454.7M $464.7M $456.7M
YoY Change -4.95% -4.87% -8.95%
Cost Of Revenue $263.4M $259.0M $263.7M
YoY Change -4.63% -7.14% -8.09%
Gross Profit $191.3M $205.7M $193.0M
YoY Change -5.39% -1.86% -10.11%
Gross Profit Margin 42.07% 44.27% 42.26%
Selling, General & Admin $99.40M $128.8M $126.4M
YoY Change -17.3% -7.67% -12.4%
% of Gross Profit 51.96% 62.62% 65.49%
Research & Development $10.30M $10.00M $11.10M
YoY Change -8.04% -4.76% -0.89%
% of Gross Profit 5.38% 4.86% 5.75%
Depreciation & Amortization $38.90M $10.10M $10.40M
YoY Change 1.83% -7.34% -7.14%
% of Gross Profit 20.33% 4.91% 5.39%
Operating Expenses $109.7M $138.8M $137.5M
YoY Change -16.51% -7.47% -11.58%
Operating Profit $81.60M $66.90M $55.50M
YoY Change 15.25% 12.25% -6.25%
Interest Expense $14.10M -$17.40M -$18.20M
YoY Change -116.89% -77.66% -76.76%
% of Operating Profit 17.28% -26.01% -32.79%
Other Income/Expense, Net $0.00 -$15.70M -$47.60M
YoY Change -100.0% -81.02% -39.59%
Pretax Income $95.70M $51.20M $7.900M
YoY Change -932.17% -321.65% -140.31%
Income Tax $21.30M $57.20M -$6.800M
% Of Pretax Income 22.26% 111.72% -86.08%
Net Earnings $74.40M -$6.000M $14.70M
YoY Change -623.94% 39.53% -129.64%
Net Earnings / Revenue 16.36% -1.29% 3.22%
Basic Earnings Per Share $0.30 -$0.03 $0.01
Diluted Earnings Per Share $0.29 -$0.03 $0.01
COMMON SHARES
Basic Shares Outstanding 251.1M shares 254.4M shares 257.3M shares
Diluted Shares Outstanding 254.4M shares 259.6M shares

Balance Sheet

Concept 2019 Q4 2019 Q3 2019 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $190.0M $200.0M $248.0M
YoY Change -18.8% -20.63% -43.89%
Cash & Equivalents $190.1M $200.3M $247.6M
Short-Term Investments
Other Short-Term Assets $50.30M $54.80M $69.10M
YoY Change 18.35% -96.59% -62.69%
Inventory $199.6M $198.0M $201.6M
Prepaid Expenses $18.30M $21.90M $23.70M
Receivables $363.9M $367.2M $374.7M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $833.4M $850.3M $926.3M
YoY Change -66.42% -65.54% -62.97%
LONG-TERM ASSETS
Property, Plant & Equipment $264.8M $250.0M $256.7M
YoY Change -0.79% -7.44% -40.26%
Goodwill $2.180B $2.126B $2.178B
YoY Change -0.14% -2.82% -46.14%
Intangibles $944.4M $917.6M $967.0M
YoY Change -7.82% -12.97% -66.62%
Long-Term Investments
YoY Change
Other Assets $95.70M $122.9M $105.6M
YoY Change 190.88% 326.74% -0.75%
Total Long-Term Assets $3.491B $3.423B $3.514B
YoY Change -49.55% -50.57% -53.0%
TOTAL ASSETS
Total Short-Term Assets $833.4M $850.3M $926.3M
Total Long-Term Assets $3.491B $3.423B $3.514B
Total Assets $4.324B $4.273B $4.440B
YoY Change -54.0% -54.5% -55.5%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $96.80M $102.7M $106.1M
YoY Change -4.06% -8.87% -77.15%
Accrued Expenses $147.0M $132.0M $109.0M
YoY Change -21.81% -21.43% -80.98%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $8.000M $8.000M $58.00M
YoY Change -68.0% -17.53% -58.21%
Total Short-Term Liabilities $293.8M $289.8M $338.0M
YoY Change -74.28% -74.28% -71.49%
LONG-TERM LIABILITIES
Long-Term Debt $1.513B $1.514B $1.515B
YoY Change -71.72% -71.91% -71.95%
Other Long-Term Liabilities $127.7M $175.1M $186.9M
YoY Change -0.62% 127.7% 62.38%
Total Long-Term Liabilities $127.7M $175.1M $186.9M
YoY Change -0.62% 127.7% 62.38%
TOTAL LIABILITIES
Total Short-Term Liabilities $293.8M $289.8M $338.0M
Total Long-Term Liabilities $127.7M $175.1M $186.9M
Total Liabilities $2.105B $2.153B $2.209B
YoY Change -70.85% -70.43% -70.04%
SHAREHOLDERS EQUITY
Retained Earnings -$1.537B -$1.611B -$1.604B
YoY Change 28.53% 30.9% 95.21%
Common Stock $2.600M $2.600M $2.600M
YoY Change -10.34% -10.34% -10.34%
Preferred Stock
YoY Change
Treasury Stock (at cost) $78.90M $67.90M $16.80M
YoY Change 2154.29% 67800.0% 16700.0%
Treasury Stock Shares 8.300M shares 7.300M shares 1.700M shares
Shareholders Equity $2.221B $2.122B $2.233B
YoY Change
Total Liabilities & Shareholders Equity $4.324B $4.273B $4.440B
YoY Change -54.0% -54.5% -55.5%

Cashflow Statement

Concept 2019 Q4 2019 Q3 2019 Q2
OPERATING ACTIVITIES
Net Income $74.40M -$6.000M $14.70M
YoY Change -623.94% 39.53% -129.64%
Depreciation, Depletion And Amortization $38.90M $10.10M $10.40M
YoY Change 1.83% -7.34% -7.14%
Cash From Operating Activities $71.20M $68.00M $17.90M
YoY Change 30.16% 140.28% -74.21%
INVESTING ACTIVITIES
Capital Expenditures -$11.50M -$6.800M -$4.700M
YoY Change 30.68% -20.93% -24.19%
Acquisitions
YoY Change
Other Investing Activities -$59.10M -$1.200M $88.90M
YoY Change 288.82% -105.91% -2569.44%
Cash From Investing Activities -$70.60M -$8.000M $84.20M
YoY Change 194.17% -168.38% -959.18%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $51.00M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -13.90M -102.8M -81.70M
YoY Change -27.98% 43.78% 11571.43%
NET CHANGE
Cash From Operating Activities 71.20M 68.00M 17.90M
Cash From Investing Activities -70.60M -8.000M 84.20M
Cash From Financing Activities -13.90M -102.8M -81.70M
Net Change In Cash -13.30M -42.80M 20.40M
YoY Change -216.67% 35.87% -65.37%
FREE CASH FLOW
Cash From Operating Activities $71.20M $68.00M $17.90M
Capital Expenditures -$11.50M -$6.800M -$4.700M
Free Cash Flow $82.70M $74.80M $22.60M
YoY Change 30.24% 102.71% -70.11%

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181900000 USD
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27000000.0 USD
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1100000 USD
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13700000 USD
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300000 USD
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2860000000.0 USD
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2860000000.0 USD
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18900000 USD
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3300000 USD
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5100000 USD
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256100000 USD
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1300000 USD
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11700000 USD
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3300000 USD
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2860000000.0 USD
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16100000 USD
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109400000 USD
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22600000 USD
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15300000 USD
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58500000 USD
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63400000 USD
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188100000 USD
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418100000 USD
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391000000.0 USD
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153300000 USD
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124100000 USD
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264800000 USD
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266900000 USD
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41500000 USD
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552700000 USD
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113000000 USD
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112000000 USD
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110000000 USD
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P25M
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66117 shares
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26700000 USD
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11.28
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5.15
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P6Y
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P6Y
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0.442
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0.450
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0.0248
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0
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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0
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13.30
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200000 USD
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233415 shares
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100000 USD
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15100000 USD
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100000 USD
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11500000 USD
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211900000 USD
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189000000.0 USD
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14500000 USD
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14400000 USD
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15100000 USD
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15100000 USD
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75300000 USD
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149500000 USD
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0 USD
CY2019 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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140900000 USD
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14900000 USD
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0 USD
CY2018 us-gaap Current State And Local Tax Expense Benefit
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400000 USD
CY2017 us-gaap Current State And Local Tax Expense Benefit
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1000000.0 USD
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68500000 USD
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63200000 USD
CY2017 us-gaap Current Foreign Tax Expense Benefit
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65700000 USD
CY2019 us-gaap Current Income Tax Expense Benefit
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64400000 USD
CY2018 us-gaap Current Income Tax Expense Benefit
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78500000 USD
CY2017 us-gaap Current Income Tax Expense Benefit
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65500000 USD
CY2019 us-gaap Deferred Federal Income Tax Expense Benefit
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33200000 USD
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CY2017 us-gaap Deferred Federal Income Tax Expense Benefit
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CY2019 us-gaap Deferred State And Local Income Tax Expense Benefit
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CY2018 us-gaap Deferred State And Local Income Tax Expense Benefit
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-4300000 USD
CY2017 us-gaap Deferred State And Local Income Tax Expense Benefit
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-2100000 USD
CY2019 us-gaap Deferred Foreign Income Tax Expense Benefit
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-35500000 USD
CY2018 us-gaap Deferred Foreign Income Tax Expense Benefit
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CY2017 us-gaap Deferred Foreign Income Tax Expense Benefit
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CY2019 us-gaap Deferred Income Tax Expense Benefit
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CY2018 us-gaap Deferred Income Tax Expense Benefit
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CY2017 us-gaap Deferred Income Tax Expense Benefit
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CY2019 us-gaap Income Tax Expense Benefit
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61300000 USD
CY2018 us-gaap Income Tax Expense Benefit
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23800000 USD
CY2017 us-gaap Income Tax Expense Benefit
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CY2019 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.210
CY2018 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.210
CY2017 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.350
CY2019 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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29600000 USD
CY2018 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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-11200000 USD
CY2017 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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-91100000 USD
CY2019 us-gaap Income Tax Reconciliation State And Local Income Taxes
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-600000 USD
CY2018 us-gaap Income Tax Reconciliation State And Local Income Taxes
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CY2017 us-gaap Income Tax Reconciliation State And Local Income Taxes
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1700000 USD
CY2019 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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900000 USD
CY2018 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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27500000 USD
CY2017 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
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43300000 USD
CY2019 esi Effective Income Tax Rate Reconciliation Provision For Tax On Undistributed Foreign Earnings
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3200000 USD
CY2018 esi Effective Income Tax Rate Reconciliation Provision For Tax On Undistributed Foreign Earnings
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-7000000.0 USD
CY2017 esi Effective Income Tax Rate Reconciliation Provision For Tax On Undistributed Foreign Earnings
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-1500000 USD
CY2019 esi Effective Income Tax Rate Reconciliation Netchangeinreserve
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2100000 USD
CY2018 esi Effective Income Tax Rate Reconciliation Netchangeinreserve
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4900000 USD
CY2017 esi Effective Income Tax Rate Reconciliation Netchangeinreserve
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10600000 USD
CY2019 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
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-900000 USD
CY2018 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
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8300000 USD
CY2017 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
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-19400000 USD
CY2019 us-gaap Effective Income Tax Rate Reconciliation Tax Cuts And Jobs Act Of2017 Amount
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0 USD
CY2018 us-gaap Effective Income Tax Rate Reconciliation Tax Cuts And Jobs Act Of2017 Amount
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-41800000 USD
CY2017 us-gaap Effective Income Tax Rate Reconciliation Tax Cuts And Jobs Act Of2017 Amount
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-46300000 USD
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1800000 USD
CY2018 us-gaap Income Tax Reconciliation Other Reconciling Items
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CY2017 us-gaap Income Tax Reconciliation Other Reconciling Items
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9000000.0 USD
CY2019 us-gaap Income Tax Expense Benefit
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61300000 USD
CY2018 us-gaap Income Tax Expense Benefit
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23800000 USD
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CY2017 us-gaap Effective Income Tax Rate Continuing Operations
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0.263
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-46300000 USD
CY2018 us-gaap Tax Cuts And Jobs Act Of2017 Measurement Period Adjustment Income Tax Expense Benefit
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-41800000 USD
CY2018 esi Benefit From Glabal Intangible Low Taxed Income
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55500000 USD
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288200000 shares
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286100000 shares
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2500000 shares
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15600000 shares
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CONTINGENCIES, ENVIRONMENTAL AND LEGAL MATTERS<div style="text-align:justify;margin-top:12pt;margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;">Environmental Matters</span></div><div style="text-align:justify;margin-top:12pt;margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">The Company is involved in various claims relating to environmental matters at a number of current and former plants and waste management sites. The Company engages or participates in remedial and other environmental compliance activities at certain of these sites. At other sites, it has been named as a potential responsible party pursuant to the federal Superfund Act and/or state Superfund laws comparable to the federal law for site remediation. The Company analyzes each individual site, considering the number of parties involved, the level of its potential liability or contribution relating to the other parties, the nature and magnitude of the hazardous waste involved, the method and extent of remediation, the potential insurance coverage, the estimated legal and consulting expense with respect to each site and the time period over which any costs would likely be incurred. Based on this analysis, the Company estimates the clean-up costs and related claims for each site. The estimates are based in part on discussions with other potential responsible parties, governmental agencies and engineering firms.</span></div><div style="text-align:justify;margin-top:12pt;margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">The Company accrues for environmental matters when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current laws and existing technologies. The accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. The Company's environmental liabilities, which are included in the Consolidated Balance Sheets as "Accrued expenses and other current liabilities" and "Other liabilities," totaled $12.0 million and $18.3 million at December 31, 2019 and 2018, respectively, primarily driven by environmental remediation, clean-up costs and monitoring of sites that were either closed or disposed of in prior years. While uncertainty exists with respect to the amount and timing of its ultimate environmental liabilities, the Company does not currently anticipate any material losses in excess of the amount recorded. However, new information about the sites, such as results of investigations, could make it necessary for the Company to reassess its potential exposure related to these environmental matters.</span></div><div style="text-align:justify;margin-top:12pt;margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">As of the date hereof, management believes it is not possible to develop an estimate of the range of reasonably possible environmental loss in excess of the Company's recorded liabilities, and is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters.</span></div><div style="text-align:justify;margin-top:12pt;margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;">Legal Matters</span></div><div style="text-align:justify;margin-top:12pt;margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">From time to time, the Company is involved in various legal proceedings, investigations and/or claims in the normal course of its business. Although it cannot predict with certainty the ultimate resolution of these matters which involve judgments that are inherently subjective, the Company believes that their resolutions, to the extent not covered by insurance, will not, individually or in the aggregate, have a material adverse effect on its consolidated financial position, results of operations or cash flows.</span></div><div style="text-align:justify;margin-top:12pt;margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">In June 2017, MacDermid Printing and E.I. du Pont de Nemours and Company (now known as DuPont de Nemours) reached a settlement that resolved all outstanding litigation between MacDermid Printing, E.I. du Pont and Cortron Corporation, including lawsuits involving MacDermid Printing's flexographic printing technology. In connection with the settlement, in July 2017, E.I. du Pont made a payment of $20.0 million to MacDermid Printing, and the Company recorded a net settlement gain of $10.8 million in the Consolidated Statement of Operations as "Other (expense) income, net."</span></div>
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