2018 Q3 Form 10-Q Financial Statement

#000171015518000049 Filed on November 13, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2017 Q3
Revenue $387.4M $346.1M
YoY Change 11.94% 18.91%
Cost Of Revenue $182.6M $162.4M
YoY Change 12.46%
Gross Profit $204.8M $183.7M
YoY Change 11.49%
Gross Profit Margin 52.87% 53.09%
Selling, General & Admin $185.0M $151.3M
YoY Change 22.33%
% of Gross Profit 90.33% 82.32%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $19.40M $14.60M
YoY Change 32.88% -41.6%
% of Gross Profit 9.47% 7.95%
Operating Expenses $206.9M $167.2M
YoY Change 23.78%
Operating Profit -$2.083M $15.82M
YoY Change -113.17% 0.5%
Interest Expense -$9.400M $14.85M
YoY Change -163.3%
% of Operating Profit 93.9%
Other Income/Expense, Net
YoY Change
Pretax Income -$11.49M $1.709M
YoY Change -772.32%
Income Tax -$16.66M $163.0K
% Of Pretax Income 9.54%
Net Earnings $5.171M $1.089M
YoY Change 374.84% -69.64%
Net Earnings / Revenue 1.33% 0.31%
Basic Earnings Per Share $0.07 $0.02
Diluted Earnings Per Share $0.06 $0.02
COMMON SHARES
Basic Shares Outstanding 76.12M shares 56.41M shares
Diluted Shares Outstanding 79.71M shares 58.46M shares

Balance Sheet

Concept 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $48.90M $24.90M
YoY Change 96.39%
Cash & Equivalents $48.88M $27.62M
Short-Term Investments
Other Short-Term Assets $24.10M $22.00M
YoY Change 9.55%
Inventory $99.28M $89.37M
Prepaid Expenses
Receivables $38.88M $39.11M
Other Receivables $7.600M $6.400M
Total Short-Term Assets $211.1M $178.8M
YoY Change 18.07%
LONG-TERM ASSETS
Property, Plant & Equipment $340.6M $290.7M
YoY Change 17.19%
Goodwill $792.7M $792.7M
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments $2.600M
YoY Change
Other Assets $9.052M $11.11M
YoY Change -18.55%
Total Long-Term Assets $1.450B $1.410B
YoY Change 2.8%
TOTAL ASSETS
Total Short-Term Assets $211.1M $178.8M
Total Long-Term Assets $1.450B $1.410B
Total Assets $1.661B $1.589B
YoY Change 4.52%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $30.89M $33.56M
YoY Change -7.98%
Accrued Expenses $81.47M $90.75M
YoY Change -10.23%
Deferred Revenue $53.95M
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $7.900M $9.600M
YoY Change -17.71%
Total Short-Term Liabilities $197.2M $219.2M
YoY Change -10.03%
LONG-TERM LIABILITIES
Long-Term Debt $566.9M $913.3M
YoY Change -37.93%
Other Long-Term Liabilities $42.29M $49.71M
YoY Change -14.93%
Total Long-Term Liabilities $42.29M $49.71M
YoY Change -14.93%
TOTAL LIABILITIES
Total Short-Term Liabilities $197.2M $219.2M
Total Long-Term Liabilities $42.29M $49.71M
Total Liabilities $239.5M $268.9M
YoY Change -10.93%
SHAREHOLDERS EQUITY
Retained Earnings $100.1M $8.445M
YoY Change 1085.47%
Common Stock $770.0K $565.0K
YoY Change 36.28%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.133M $233.0K
YoY Change 386.27%
Treasury Stock Shares 54.00K shares 28.00K shares
Shareholders Equity $751.3M $254.6M
YoY Change
Total Liabilities & Shareholders Equity $1.661B $1.589B
YoY Change 4.52%

Cashflow Statement

Concept 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income $5.171M $1.089M
YoY Change 374.84% -69.64%
Depreciation, Depletion And Amortization $19.40M $14.60M
YoY Change 32.88% -41.6%
Cash From Operating Activities $35.90M $21.40M
YoY Change 67.76% -66.67%
INVESTING ACTIVITIES
Capital Expenditures -$30.10M -$23.50M
YoY Change 28.09% -49.57%
Acquisitions
YoY Change
Other Investing Activities $0.00 $100.0K
YoY Change -100.0% -111.11%
Cash From Investing Activities -$30.10M -$23.40M
YoY Change 28.63% -50.74%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 8.500M -3.100M
YoY Change -374.19% 19.23%
NET CHANGE
Cash From Operating Activities 35.90M 21.40M
Cash From Investing Activities -30.10M -23.40M
Cash From Financing Activities 8.500M -3.100M
Net Change In Cash 14.30M -5.100M
YoY Change -380.39% -136.17%
FREE CASH FLOW
Cash From Operating Activities $35.90M $21.40M
Capital Expenditures -$30.10M -$23.50M
Free Cash Flow $66.00M $44.90M
YoY Change 46.99% -59.48%

Facts In Submission

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IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
3485000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
3119000 shares
CY2017Q3 us-gaap Interest Expense Debt
InterestExpenseDebt
14851000 USD
us-gaap Interest Expense Debt
InterestExpenseDebt
40965000 USD
CY2018Q3 us-gaap Interest Expense Debt
InterestExpenseDebt
9407000 USD
us-gaap Interest Expense Debt
InterestExpenseDebt
28144000 USD
CY2018Q3 us-gaap Interest Rate Cash Flow Hedge Gain Loss To Be Reclassified During Next12 Months Net
InterestRateCashFlowHedgeGainLossToBeReclassifiedDuringNext12MonthsNet
2300000 USD
CY2017Q4 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
47198000 USD
CY2018Q3 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
53901000 USD
CY2017Q4 us-gaap Inventory Net
InventoryNet
91151000 USD
CY2018Q3 us-gaap Inventory Net
InventoryNet
99280000 USD
CY2017Q4 us-gaap Inventory Raw Materials And Supplies Net Of Reserves
InventoryRawMaterialsAndSuppliesNetOfReserves
43953000 USD
CY2018Q3 us-gaap Inventory Raw Materials And Supplies Net Of Reserves
InventoryRawMaterialsAndSuppliesNetOfReserves
45379000 USD
us-gaap Inventory Write Down
InventoryWriteDown
2491000 USD
CY2017Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
1583791000 USD
CY2018Q3 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
1660694000 USD
CY2017Q4 us-gaap Liabilities Current
LiabilitiesCurrent
211309000 USD
CY2018Q3 us-gaap Liabilities Current
LiabilitiesCurrent
197199000 USD
CY2017Q4 us-gaap Liabilities Other Than Longterm Debt Noncurrent
LiabilitiesOtherThanLongtermDebtNoncurrent
150914000 USD
CY2018Q3 us-gaap Liabilities Other Than Longterm Debt Noncurrent
LiabilitiesOtherThanLongtermDebtNoncurrent
138392000 USD
CY2017Q4 us-gaap Long Term Debt And Capital Lease Obligations
LongTermDebtAndCapitalLeaseObligations
561980000 USD
CY2018Q3 us-gaap Long Term Debt And Capital Lease Obligations
LongTermDebtAndCapitalLeaseObligations
566932000 USD
CY2017Q4 us-gaap Long Term Debt And Capital Lease Obligations Current
LongTermDebtAndCapitalLeaseObligationsCurrent
7258000 USD
CY2018Q3 us-gaap Long Term Debt And Capital Lease Obligations Current
LongTermDebtAndCapitalLeaseObligationsCurrent
7863000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-4827000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
7601000 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-68510000 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-78677000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
96251000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
115952000 USD
CY2017Q3 us-gaap Net Income Loss
NetIncomeLoss
1546000 USD
us-gaap Net Income Loss
NetIncomeLoss
17120000 USD
CY2018Q3 us-gaap Net Income Loss
NetIncomeLoss
5816000 USD
us-gaap Net Income Loss
NetIncomeLoss
43940000 USD
us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 segment
CY2017Q4 us-gaap Number Of Stores
NumberOfStores
1013 store
CY2018Q3 us-gaap Number Of Stores
NumberOfStores
1067 store
CY2017Q3 us-gaap Operating Expenses
OperatingExpenses
167171000 USD
us-gaap Operating Expenses
OperatingExpenses
498862000 USD
CY2018Q3 us-gaap Operating Expenses
OperatingExpenses
206052000 USD
us-gaap Operating Expenses
OperatingExpenses
576610000 USD
CY2017Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
16560000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
70054000 USD
CY2018Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-1215000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
64221000 USD
CY2017Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
10233000 USD
CY2018Q3 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
9149000 USD
CY2017Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
10988000 USD
CY2018Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
9052000 USD
CY2017Q3 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
568000 USD
us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
744000 USD
CY2018Q3 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
411000 USD
us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
829000 USD
CY2017Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
46044000 USD
CY2018Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
42291000 USD
us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
-388000 USD
us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
-1555000 USD
CY2017Q4 us-gaap Other Sundry Liabilities Noncurrent
OtherSundryLiabilitiesNoncurrent
2185000 USD
CY2018Q3 us-gaap Other Sundry Liabilities Noncurrent
OtherSundryLiabilitiesNoncurrent
1941000 USD
us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
-125000 USD
us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
-136000 USD
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
0 USD
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
900000 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
2702000 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
0 USD
us-gaap Payments Of Dividends
PaymentsOfDividends
170983000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
0 USD
us-gaap Payments Of Dividends
PaymentsOfDividends
0 USD
us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
1500000 USD
us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
0 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
67135000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
78813000 USD
CY2017Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
23925000 USD
CY2018Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
24065000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
1004000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
173712000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
0 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
1088000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
14032000 USD
CY2017Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
451904000 USD
CY2018Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
534090000 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
304132000 USD
CY2018Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
340626000 USD
CY2017Q3 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
1900000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
4513000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
4500000 USD
CY2018Q3 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
1700000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
5000000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
4981000 USD
us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
710000 USD
us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
1256000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
6236000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
4275000 USD
CY2017Q3 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
980000 USD
CY2018Q3 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
1188000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
37145000 USD
CY2018Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
100113000 USD
CY2017Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
346089000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1053489000 USD
CY2018Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
387425000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1180932000 USD
CY2018Q3 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
19200000 USD
CY2018Q3 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
39700000 USD
CY2018Q3 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
12500000 USD
CY2018Q3 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
3000000 USD
CY2018Q3 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
200000 USD
CY2018Q3 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
100000 USD
CY2017Q4 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
1218000 USD
CY2018Q3 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
1130000 USD
CY2017Q4 us-gaap Self Insurance Reserve Current
SelfInsuranceReserveCurrent
6854000 USD
CY2018Q3 us-gaap Self Insurance Reserve Current
SelfInsuranceReserveCurrent
7102000 USD
CY2017Q4 us-gaap Self Insurance Reserve Noncurrent
SelfInsuranceReserveNoncurrent
4564000 USD
CY2018Q3 us-gaap Self Insurance Reserve Noncurrent
SelfInsuranceReserveNoncurrent
4915000 USD
CY2017Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
151251000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
445714000 USD
CY2018Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
184424000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
519564000 USD
CY2017Q4 us-gaap Settlement Liabilities Current
SettlementLiabilitiesCurrent
3942000 USD
CY2018Q3 us-gaap Settlement Liabilities Current
SettlementLiabilitiesCurrent
3838000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
3140000 USD
CY2018Q3 us-gaap Share Based Compensation
ShareBasedCompensation
9500000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
13749000 USD
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
1843550 shares
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
2611859 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
399523 shares
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
10516116 shares
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
7670164 shares
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares
3219286 shares
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
2446429 shares
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
659588000 USD
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
758171000 USD
CY2017Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
28000 shares
CY2018Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
54000 shares
CY2017Q4 us-gaap Treasury Stock Value
TreasuryStockValue
233000 USD
CY2018Q3 us-gaap Treasury Stock Value
TreasuryStockValue
1133000 USD
CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
58459000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
58281000 shares
CY2018Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
79710000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
78571000 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
56414000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
56363000 shares
CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
76118000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
75361000 shares
us-gaap Fiscal Period
FiscalPeriod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Fiscal Year</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year </font><font style="font-family:inherit;font-size:10pt;">2018</font><font style="font-family:inherit;font-size:10pt;"> contains </font><font style="font-family:inherit;font-size:10pt;">52</font><font style="font-family:inherit;font-size:10pt;"> weeks and will end on </font><font style="font-family:inherit;font-size:10pt;">December&#160;29, 2018</font><font style="font-family:inherit;font-size:10pt;">. All </font><font style="font-family:inherit;font-size:10pt;">three and nine</font><font style="font-family:inherit;font-size:10pt;"> month periods presented herein contain </font><font style="font-family:inherit;font-size:10pt;">13</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">39</font><font style="font-family:inherit;font-size:10pt;"> weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods.</font></div></div>
us-gaap Property Plant And Equipment Impairment
PropertyPlantAndEquipmentImpairment
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Asset Impairment</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We evaluate impairment of long-lived tangible store assets at an individual store level, which is the lowest level at which independent cash flows can be identified, when events or conditions indicate the carrying value of such assets may not be recoverable. If the store's projected undiscounted cash flows expected to be generated by the related assets over the remaining useful life are less than the carrying value of the related assets, we then measure impairment based on a discounted cash flow model (Level 3 inputs) and record an impairment charge as the difference between carrying value and estimated fair value.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></div></div>

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