2013 Q4 Form 10-K Financial Statement

#000003799615000013 Filed on February 13, 2015

View on sec.gov

Income Statement

Concept 2013 Q4 2013 Q3 2013 Q2
Revenue $37.57B $35.78B $37.92B
YoY Change 5.15% 11.2% 14.19%
Cost Of Revenue $28.32B $30.03B $32.52B
YoY Change -12.36% 12.68% 16.7%
Gross Profit $9.252B $5.745B $5.399B
YoY Change 170.61% 4.04% 1.09%
Gross Profit Margin 24.63% 16.06% 14.24%
Selling, General & Admin $1.288B $3.235B $3.203B
YoY Change -53.15% 10.83% 7.38%
% of Gross Profit 13.92% 56.31% 59.33%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $1.357B $3.235B $3.203B
YoY Change -51.71% 10.83% 7.38%
Operating Profit $7.895B $2.510B $2.196B
YoY Change 1196.39% -3.57% -6.87%
Interest Expense $171.0M $107.0M $122.0M
YoY Change -86.75% -88.88% -87.63%
% of Operating Profit 2.17% 4.26% 5.56%
Other Income/Expense, Net $272.0M $282.0M $259.0M
YoY Change -292.91% 6.42% 19.35%
Pretax Income $1.007B $2.091B $1.819B
YoY Change -45.3% -6.9% 14.04%
Income Tax $511.0M $818.0M $585.0M
% Of Pretax Income 50.74% 39.12% 32.16%
Net Earnings $3.066B $1.272B $1.233B
YoY Change 91.86% -22.01% 18.56%
Net Earnings / Revenue 8.16% 3.56% 3.25%
Basic Earnings Per Share $0.32 $0.31
Diluted Earnings Per Share $1.916M $0.31 $0.30
COMMON SHARES
Basic Shares Outstanding 3.942B shares 3.933B shares
Diluted Shares Outstanding 4.096B shares 4.084B shares

Balance Sheet

Concept 2013 Q4 2013 Q3 2013 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $36.57B $37.64B $36.71B
YoY Change 1.74% 5.93% 3.11%
Cash & Equivalents $14.47B $14.75B $13.36B
Short-Term Investments $22.10B $22.89B $23.34B
Other Short-Term Assets
YoY Change
Inventory $7.708B $8.799B $8.192B
Prepaid Expenses
Receivables $19.98B $94.38B $91.86B
Other Receivables $87.31B $11.69B $11.35B
Total Short-Term Assets $151.6B $152.5B $124.8B
YoY Change 7.9% 30.43% 7.72%
LONG-TERM ASSETS
Property, Plant & Equipment $27.62B $26.84B $25.86B
YoY Change 10.72% 10.22% 13.39%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $3.679B $3.466B $3.223B
YoY Change 13.34% 27.61% 9.7%
Other Assets $19.32B $18.17B $18.94B
YoY Change -6.88% -2.3% -0.73%
Total Long-Term Assets $50.64B $47.27B $70.24B
YoY Change 3.14% -30.22% 7.38%
TOTAL ASSETS
Total Short-Term Assets $151.6B $152.5B $124.8B
Total Long-Term Assets $50.64B $47.27B $70.24B
Total Assets $202.2B $199.8B $195.0B
YoY Change 6.66% 8.18% 7.6%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $18.61B $21.64B $20.96B
YoY Change -3.63% 4.07% 6.61%
Accrued Expenses $2.355B $41.60B $41.59B
YoY Change 7.96% 6.86%
Deferred Revenue
YoY Change
Short-Term Debt $15.56B $0.00 $0.00
YoY Change
Long-Term Debt Due $22.51B
YoY Change
Total Short-Term Liabilities $73.80B $63.24B $65.99B
YoY Change 282.25% 1.45% 6.78%
LONG-TERM LIABILITIES
Long-Term Debt $76.63B $110.6B $107.9B
YoY Change -27.06% 9.96% 7.97%
Other Long-Term Liabilities $24.68B $5.735B $2.136B
YoY Change -48.87% 195.31% 14.59%
Total Long-Term Liabilities $101.3B $116.4B $110.0B
YoY Change -33.93% 13.47% 8.09%
TOTAL LIABILITIES
Total Short-Term Liabilities $73.80B $63.24B $65.99B
Total Long-Term Liabilities $101.3B $116.4B $110.0B
Total Liabilities $175.7B $180.2B $176.7B
YoY Change 1.51% 8.92% 7.62%
SHAREHOLDERS EQUITY
Retained Earnings $23.39B $21.01B $20.14B
YoY Change 29.37% 26.06% 32.21%
Common Stock $21.42B $21.38B $21.22B
YoY Change 2.13% 2.14% 1.43%
Preferred Stock
YoY Change
Treasury Stock (at cost) $506.0M $456.0M $379.0M
YoY Change 73.29% 76.74% 68.44%
Treasury Stock Shares
Shareholders Equity $26.14B $20.17B $18.88B
YoY Change
Total Liabilities & Shareholders Equity $202.2B $201.1B $196.2B
YoY Change 6.74% 8.88% 8.26%

Cashflow Statement

Concept 2013 Q4 2013 Q3 2013 Q2
OPERATING ACTIVITIES
Net Income $3.066B $1.272B $1.233B
YoY Change 91.86% -22.01% 18.56%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities $315.0M $3.840B $6.078B
YoY Change -187.26% 12.05% 55.69%
INVESTING ACTIVITIES
Capital Expenditures -$1.938B -$1.582B -$1.594B
YoY Change 2.81% 19.94% 33.84%
Acquisitions
YoY Change
Other Investing Activities -$2.473B -$2.675B -$5.618B
YoY Change -1234.4% -28.76% 204.17%
Cash From Investing Activities -$4.411B -$4.257B -$7.212B
YoY Change 164.61% -16.1% 137.39%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 3.791B 1.667B 708.0M
YoY Change -7.24% -4862.86% -198.74%
NET CHANGE
Cash From Operating Activities 315.0M 3.840B 6.078B
Cash From Investing Activities -4.411B -4.257B -7.212B
Cash From Financing Activities 3.791B 1.667B 708.0M
Net Change In Cash -305.0M 1.250B -426.0M
YoY Change -114.81% -174.32% -385.91%
FREE CASH FLOW
Cash From Operating Activities $315.0M $3.840B $6.078B
Capital Expenditures -$1.938B -$1.582B -$1.594B
Free Cash Flow $2.253B $5.422B $7.672B
YoY Change 47.83% 14.24% 50.58%

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CostsAndExpenses
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CY2013 us-gaap Costs And Expenses
CostsAndExpenses
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CY2012 us-gaap Current Income Tax Expense Benefit
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CY2013 us-gaap Current Income Tax Expense Benefit
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CY2014 us-gaap Deferred Foreign Income Tax Expense Benefit
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CY2014 us-gaap Deferred Income Tax Expense Benefit
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CY2014 us-gaap Deferred State And Local Income Tax Expense Benefit
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CY2013 us-gaap Deferred State And Local Income Tax Expense Benefit
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5060000000 USD
CY2014Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Employee Benefits
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CY2014Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Provision For Loan Losses
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2510000000 USD
CY2013Q4 us-gaap Deferred Tax Assets Valuation Allowance
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CY2014Q4 us-gaap Deferred Tax Assets Valuation Allowance
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CY2013Q4 us-gaap Deferred Tax Liabilities Other
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2430000000 USD
CY2014Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
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CY2013Q4 us-gaap Deferred Tax Liabilities Tax Deferred Income
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us-gaap Defined Benefit Plan Settlements Plan Assets
DefinedBenefitPlanSettlementsPlanAssets
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DefinedBenefitPlanSettlementsPlanAssets
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CY2012 us-gaap Earnings Per Share Basic
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CY2013 us-gaap Earnings Per Share Basic
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CY2012 us-gaap Earnings Per Share Diluted
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1.41
CY2013 us-gaap Earnings Per Share Diluted
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1.77
CY2014 us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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CY2013 us-gaap Effective Income Tax Rate Continuing Operations
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CY2014 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.350
CY2012 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.350
CY2013 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2014 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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CY2012 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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0.016
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-0.008
CY2014 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
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0.016
CY2012 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
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0.017
CY2013 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
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0.030
CY2014 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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-0.023
CY2012 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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-0.016
CY2013 us-gaap Effective Income Tax Rate Reconciliation Foreign Income Tax Rate Differential
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-0.012
CY2012 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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0.000
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0.008
CY2014 us-gaap Effective Income Tax Rate Reconciliation Prior Year Income Taxes
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-0.037
CY2012 us-gaap Effective Income Tax Rate Reconciliation Prior Year Income Taxes
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CY2013 us-gaap Effective Income Tax Rate Reconciliation Prior Year Income Taxes
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0.055
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CY2013 us-gaap Effective Income Tax Rate Reconciliation Repatriation Of Foreign Earnings
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CY2014 us-gaap Effective Income Tax Rate Reconciliation Tax Credits
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CY2012 us-gaap Effective Income Tax Rate Reconciliation Tax Credits
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CY2013 us-gaap Effective Income Tax Rate Reconciliation Tax Credits
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CY2014 us-gaap Effective Income Tax Rate Reconciliation Tax Exempt Income
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CY2013 us-gaap Effective Income Tax Rate Reconciliation Tax Exempt Income
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CY2014 us-gaap Equity Method Investment Dividends Or Distributions
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1007000000 USD
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7040000000 USD
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2118000000 USD
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1021000000 USD
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CY2013 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
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7050000000 USD
CY2013 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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5971000000 USD
CY2013Q1 us-gaap Income Loss From Continuing Operations Per Basic Share
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CY2013Q3 us-gaap Income Loss From Continuing Operations Per Basic Share
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0.32
CY2013Q4 us-gaap Income Loss From Continuing Operations Per Basic Share
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0.78
CY2014Q1 us-gaap Income Loss From Continuing Operations Per Basic Share
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0.25
CY2014Q2 us-gaap Income Loss From Continuing Operations Per Basic Share
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0.33
CY2014Q3 us-gaap Income Loss From Continuing Operations Per Basic Share
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CY2014Q4 us-gaap Income Loss From Continuing Operations Per Basic Share
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0.01
CY2013Q1 us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2013Q2 us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2013Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2013Q4 us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2014Q1 us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2013 us-gaap Income Loss From Equity Method Investments
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1069000000 USD
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CY2014 us-gaap Income Tax Expense Benefit
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CY2012 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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CY2013 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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CY2012 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
344000000 USD
CY2013 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
538000000 USD
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875000000 USD
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1401000000 USD
CY2013 us-gaap Increase Decrease In Inventories
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572000000 USD
CY2014 us-gaap Increase Decrease In Operating Liabilities
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5734000000 USD
CY2012 us-gaap Increase Decrease In Operating Liabilities
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599000000 USD
CY2013 us-gaap Increase Decrease In Operating Liabilities
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1231000000 USD
CY2014 us-gaap Increase Decrease In Receivables
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2897000000 USD
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2508000000 USD
CY2013 us-gaap Increase Decrease In Receivables
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2040000000 USD
CY2014 us-gaap Interest Expense
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CY2012 us-gaap Interest Expense
InterestExpense
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CY2013 us-gaap Interest Expense
InterestExpense
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CY2013Q4 us-gaap Inventory Finished Goods
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CY2014Q4 us-gaap Inventory Finished Goods
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CY2013Q4 us-gaap Inventory Lifo Reserve
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1001000000 USD
CY2014Q4 us-gaap Inventory Lifo Reserve
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978000000 USD
CY2013Q4 us-gaap Inventory Net
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CY2014Q4 us-gaap Inventory Net
InventoryNet
7866000000 USD
CY2013Q4 us-gaap Inventory Work In Process And Raw Materials
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3628000000 USD
CY2014Q4 us-gaap Inventory Work In Process And Raw Materials
InventoryWorkInProcessAndRawMaterials
3822000000 USD
CY2014 us-gaap Investment Income Interest
InvestmentIncomeInterest
244000000 USD
CY2012 us-gaap Investment Income Interest
InvestmentIncomeInterest
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CY2014 us-gaap Comparability Of Prior Year Financial Data
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">We reclassified certain prior year amounts in our consolidated financial statements to conform to current year presentation. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Changes in Accounting</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Disability Accounting. </font><font style="font-family:Arial;font-size:10pt;">We provide medical, life, and income benefits to hourly and salary employees when they become disabled. As of January 1, 2014, we changed our accounting policy for these benefits from an event-driven model to a service-accrual model, such that our obligation now includes an estimated cost to be incurred for individuals who are disabled at the time of measurement (which was the amount recorded under our previous policy) as well as an amount that considers the probability that active employees will become disabled in the future. We believe this change in accounting method is preferable because it better aligns the recognition of expense with the periods in which the Company receives the benefit of the employees&#8217; services, and will allow for better comparability with the method used by other companies in our industry.</font></div></div>
CY2014 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;"></font><font style="font-family:Arial;font-size:10pt;font-weight:bold;">ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED</font><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Extraordinary and Unusual Items - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. </font><font style="font-family:Arial;font-size:10pt;">In January 2015, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued a new accounting standard that eliminates the concept of extraordinary items and their segregation from the results of ordinary operations and expands presentation and disclosure guidance to include items that are both unusual in nature and occur infrequently. The new accounting standard is effective as of January 1, 2016 and we are assessing the potential impact to our financial statements and financial statement disclosures.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Derivatives and Hedging - Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity. </font><font style="font-family:Arial;font-size:10pt;">In November 2014, the FASB issued a new accounting standard that requires an entity to determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument issued in the form of a share, including any embedded derivative features being evaluated for bifurcation. The new accounting standard is effective as of January 1, 2016 and we are assessing the potential impact to our financial statements and financial statement disclosures.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Going Concern - Disclosure of Uncertainties about an Entity&#8217;s Ability to Continue as a Going Concern.</font><font style="font-family:Arial;font-size:10pt;"> In August&#160;2014, the FASB issued a new accounting standard that requires management to assess if there is substantial doubt about an entity&#8217;s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. The new accounting standard is effective as of December&#160;31,&#160;2016 and we do not expect it to have an impact on our financial statement disclosures.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Consolidation - Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity.</font><font style="font-family:Arial;font-size:10pt;"> In August 2014, the FASB issued a new accounting standard that provides an entity the option to elect to measure the financial assets and financial liabilities of a consolidated collateralized financing entity (&#8220;CFE&#8221;) at a value that is reflective of its economic interest in the CFE. The new accounting standard is effective as of January 1, 2016 and we are assessing the potential impact to our financial statements and financial statement disclosures.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Stock Compensation - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.</font><font style="font-family:Arial;font-size:10pt;"> In June 2014, the FASB issued a new accounting standard that requires performance targets that could be achieved after the requisite service period be treated as performance conditions that affect the vesting of the award. The new accounting standard is effective as of January&#160;1,&#160;2016 and we do not expect it to have an impact on our financial statements or financial statement disclosures.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Transfers and Servicing - Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures. </font><font style="font-family:Arial;font-size:10pt;">In June&#160;2014, the FASB issued a new accounting standard that changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The new standard also requires additional disclosures for certain transfers of financial assets with agreements that both entitle and obligate the transferor to repurchase the transferred assets from the transferee. The new accounting standard is effective as of January 1, 2015 and we do not expect it to have an impact on our financial statements or financial statement disclosures.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Revenue - Revenue from Contracts with Customers</font><font style="font-family:Arial;font-size:10pt;">.&#160; In May 2014, the FASB issued a new accounting standard that requires recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. The new standard supersedes virtually all present U.S. GAAP guidance on revenue recognition and requires the use of more estimates and judgments than the present standards as well as additional disclosures. The new accounting standard is effective as of January 1, 2017 and we are assessing the potential impact to our financial statements and financial statement disclosures.</font></div></div>
CY2014 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The preparation of financial statements requires us to make estimates and assumptions that affect our results during the periods reported. Estimates are used to account for certain items such as marketing accruals, warranty costs, employee benefit programs, etc.&#160;&#160;Estimates are based on assumptions that we believe are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.</font></div></div>

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