2015 Q2 Form 10-Q Financial Statement

#000119312515202728 Filed on May 28, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2015 Q1 2014 Q2
Revenue $1.146B $877.3M $1.154B
YoY Change -0.68% 2.04%
Cost Of Revenue $585.9M $453.8M $595.9M
YoY Change -1.68% 1.81%
Gross Profit $560.1M $423.6M $558.0M
YoY Change 0.38% 2.29%
Gross Profit Margin 48.87% 48.28% 48.36%
Selling, General & Admin $423.8M $315.8M $420.5M
YoY Change 0.78% 2.59%
% of Gross Profit 75.67% 74.56% 75.36%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $39.80M $30.30M $39.30M
YoY Change 1.27% 14.91%
% of Gross Profit 7.11% 7.15% 7.04%
Operating Expenses $463.6M $361.4M $459.8M
YoY Change 0.83% 3.51%
Operating Profit $96.50M $62.17M $98.20M
YoY Change -1.73% -3.06%
Interest Expense -$1.600M -$1.000M -$3.200M
YoY Change -50.0% -30.43%
% of Operating Profit -1.66% -1.61% -3.26%
Other Income/Expense, Net
YoY Change
Pretax Income $95.00M $40.40M $95.00M
YoY Change 0.0% -34.66%
Income Tax $33.60M $12.40M $34.00M
% Of Pretax Income 35.37% 30.69% 35.79%
Net Earnings $61.40M $28.01M $61.10M
YoY Change 0.49% -45.45%
Net Earnings / Revenue 5.36% 3.19% 5.3%
Basic Earnings Per Share $0.13
Diluted Earnings Per Share $288.7K $0.13 $287.1K
COMMON SHARES
Basic Shares Outstanding 210.1M shares 209.4M shares 209.2M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q2 2015 Q1 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $8.000M $7.500M $8.800M
YoY Change -9.09% -38.03%
Cash & Equivalents $7.966M $7.523M $8.801M
Short-Term Investments
Other Short-Term Assets $40.22M $43.15M $29.07M
YoY Change 38.37% -3.53%
Inventory $98.82M $93.10M $96.82M
Prepaid Expenses $17.43M
Receivables $258.2M $235.9M $268.8M
Other Receivables $0.00 $8.900M $0.00
Total Short-Term Assets $489.7M $460.6M $477.7M
YoY Change 2.51% -5.33%
LONG-TERM ASSETS
Property, Plant & Equipment $789.7M $807.5M $840.3M
YoY Change -6.02% 16.66%
Goodwill $283.0M $283.0M $280.1M
YoY Change 1.01% 3.69%
Intangibles $646.4M $645.0M $653.1M
YoY Change -1.03% 37.19%
Long-Term Investments
YoY Change
Other Assets $11.93M $12.01M $14.42M
YoY Change -17.24% -3.56%
Total Long-Term Assets $1.933B $1.948B $1.999B
YoY Change -3.32% 20.74%
TOTAL ASSETS
Total Short-Term Assets $489.7M $460.6M $477.7M
Total Long-Term Assets $1.933B $1.948B $1.999B
Total Assets $2.423B $2.409B $2.477B
YoY Change -2.19% 14.65%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $172.1M $142.6M $157.3M
YoY Change 9.41% 3.32%
Accrued Expenses $129.1M $109.8M $136.8M
YoY Change -5.63% -3.66%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $15.70M $0.00
YoY Change
Long-Term Debt Due $34.50M $34.50M $30.70M
YoY Change 12.38% -19.52%
Total Short-Term Liabilities $352.9M $315.6M $325.2M
YoY Change 8.52% -2.15%
LONG-TERM LIABILITIES
Long-Term Debt $671.3M $728.9M $811.0M
YoY Change -17.23% 35.05%
Other Long-Term Liabilities $53.44M $53.70M $49.78M
YoY Change 7.34% -1.75%
Total Long-Term Liabilities $240.5M $241.4M $203.7M
YoY Change 18.06% -27.64%
TOTAL LIABILITIES
Total Short-Term Liabilities $352.9M $315.6M $325.2M
Total Long-Term Liabilities $240.5M $241.4M $203.7M
Total Liabilities $593.4M $557.0M $528.9M
YoY Change 12.2% -13.84%
SHAREHOLDERS EQUITY
Retained Earnings $841.8M $809.1M $772.7M
YoY Change 8.93% 12.19%
Common Stock $614.4M $614.1M $597.5M
YoY Change 2.82% 3.44%
Preferred Stock
YoY Change
Treasury Stock (at cost) $197.9M $202.1M $189.0M
YoY Change 4.71% -4.97%
Treasury Stock Shares 18.65M shares 19.38M shares 19.49M shares
Shareholders Equity $1.158B $1.123B $1.137B
YoY Change
Total Liabilities & Shareholders Equity $2.423B $2.409B $2.477B
YoY Change -2.19% 14.65%

Cashflow Statement

Concept 2015 Q2 2015 Q1 2014 Q2
OPERATING ACTIVITIES
Net Income $61.40M $28.01M $61.10M
YoY Change 0.49% -45.45%
Depreciation, Depletion And Amortization $39.80M $30.30M $39.30M
YoY Change 1.27% 14.91%
Cash From Operating Activities $118.4M $93.80M $121.8M
YoY Change -2.79% 40.32%
INVESTING ACTIVITIES
Capital Expenditures -$25.00M -$25.20M -$23.60M
YoY Change 5.93% 4.42%
Acquisitions
YoY Change
Other Investing Activities -$300.0K $22.20M $9.700M
YoY Change -103.09% -113.9%
Cash From Investing Activities -$25.30M -$3.000M -$13.90M
YoY Change 82.01% -84.94%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -92.60M -91.30M -107.7M
YoY Change -14.02% -1756.92%
NET CHANGE
Cash From Operating Activities 118.4M 93.80M 121.8M
Cash From Investing Activities -25.30M -3.000M -13.90M
Cash From Financing Activities -92.60M -91.30M -107.7M
Net Change In Cash 500.0K -500.0K 200.0K
YoY Change 150.0% -80.0%
FREE CASH FLOW
Cash From Operating Activities $118.4M $93.80M $121.8M
Capital Expenditures -$25.00M -$25.20M -$23.60M
Free Cash Flow $143.4M $119.0M $145.4M
YoY Change -1.38% 32.91%

Facts In Submission

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dei Document Type
DocumentType
10-Q
dei Entity Registrant Name
EntityRegistrantName
FLOWERS FOODS INC
dei Trading Symbol
TradingSymbol
FLO
us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> <b>2. ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED</b></p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In May 2014, the FASB issued guidance for recognizing revenue in contracts with customers. This guidance requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. There are five steps outlined in the guidance to achieve this core principle. The company is still analyzing the potential impact of this guidance on the company&#x2019;s Condensed Consolidated Financial Statements. This guidance will be effective for our fiscal 2017, which begins on January&#xA0;1, 2017.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In June 2014, the FASB issued guidance that requires performance targets for a share-based payment award that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. The performance condition should not be reflected in the grant date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period for which the requisite service has already been rendered. The company already applies the standards proscribed in this guidance therefore it will not have an impact on the Condensed Consolidated Financial Statements. This guidance is effective for annual periods and interim periods within those annual periods beginning after December&#xA0;15, 2015, which is our fiscal 2016.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In August 2014, the FASB issued guidance related to management&#x2019;s responsibility to evaluate whether there is substantial doubt about an entity&#x2019;s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards and to provide related footnote disclosures. This guidance is effective for the annual period ending after December&#xA0;15, 2016, and for annual periods and interim periods thereafter. The requirements of this guidance are not expected to have a significant impact on the Condensed Consolidated Financial Statements.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In January 2015, the FASB issued guidance that eliminates the concept of extraordinary items from GAAP. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December&#xA0;15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The requirements of this guidance are not expected to have a significant impact on the Condensed Consolidated Financial Statements.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In February 2015, the FASB issued guidance that focuses on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December&#xA0;15, 2015. A reporting entity may apply the amendments using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. A reporting entity also may apply the amendments retrospectively. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The company is still analyzing the potential impact of this guidance on the company&#x2019;s Condensed Consolidated Financial Statements.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In April 2015, the FASB issued guidance to simplify the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be present in the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discount presentation. This guidance is effective for financial statements for fiscal years beginning after December&#xA0;15, 2015, and interim periods within those years. This guidance is applied on a retrospective basis at adoption and the disclosures for a change in an accounting principle apply. Earlier application is permitted. The requirements for this guidance are not expected to have a significant impact on the Condensed Consolidated Financial Statements.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In April 2015, the FASB issued guidance to provide a practical expedient permitting applicable entities to measure defined benefit plan assets and obligations using the month-end that is closest to the entity&#x2019;s fiscal year-end and apply that practical expedient consistently from year to year. This guidance is effective for fiscal years beginning after December&#xA0;15, 2015, and interim periods within those fiscal years. Earlier application is permitted. The company is still analyzing the potential impact of this guidance on the company&#x2019;s Condensed Consolidated Financial Statements.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In April 2015, the FASB issued guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance is effective for fiscal years beginning after December&#xA0;15, 2015, and interim periods within those fiscal years. Earlier application is permitted. The company is still analyzing the potential impact of this guidance on the company&#x2019;s Condensed Consolidated Financial Statements.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> We have reviewed other recently issued accounting pronouncements and concluded that they are either not applicable to our business or that no material effect is expected as a result of future adoption.</p> </div>
us-gaap Loss Contingency New Claims Filed Number
LossContingencyNewClaimsFiledNumber
4 Lawsuits
dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.354 pure
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
2805000 shares
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
118423000
dei Document Period End Date
DocumentPeriodEndDate
2015-04-25
us-gaap Additional Information About Entitys Reportable Segments
AdditionalInformationAboutEntitysReportableSegments
SEGMENTS — Flowers Foods currently operates two business segments: a direct-store-delivery (“DSD”) segment (“DSD Segment”) and a warehouse delivery segment (“Warehouse Segment”). The DSD Segment (84% of total sales) operates 38 bakeries that market a wide variety of fresh bakery foods, including fresh breads, buns, rolls, tortillas, and snack cakes. These products are sold through a DSD route delivery system to retail and foodservice customers throughout the Northeast, South, Southern Midwest, Southwest, and California. The Warehouse Segment (16% of total sales) operates eight bakeries that produce snack cakes, breads and rolls for national retail, foodservice, vending, and co-pack customers, which are delivered through customers’ warehouse channels and one bakery mix plant
us-gaap Common Stock Dividends Per Share Cash Paid
CommonStockDividendsPerShareCashPaid
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dei Amendment Flag
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dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--01-02
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2015
us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.29
dei Entity Central Index Key
EntityCentralIndexKey
0001128928
dei Document Fiscal Period Focus
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Q1
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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us-gaap Loss Contingency Disclosures
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<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <b>10. LITIGATION</b></p> <!-- xbrl,body --> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> The company and its subsidiaries from time to time are parties to, or targets of, lawsuits, claims, investigations and proceedings, which are being handled and defended in the ordinary course of business. While the company is unable to predict the outcome of these matters, it believes, based upon currently available facts, that it is remote that the ultimate resolution of any such pending matters will have a material adverse effect on its overall financial condition, results of operations or cash flows in the future. However, adverse developments could negatively impact earnings in a particular future fiscal period.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> The company&#x2019;s facilities are subject to various federal, state and local laws and regulations regarding the discharge of material into the environment and the protection of the environment in other ways. The company is not a party to any material proceedings arising under these regulations. The company believes that compliance with existing environmental laws and regulations will not materially affect the consolidated financial condition, results of operations, cash flows or the competitive position of the company. The company believes it is currently in substantial compliance with all material environmental regulations affecting the company and its properties.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> On September 12, 2012, a complaint was filed in the U.S. District Court for the Western District of North Carolina (Charlotte Division) by Scott Rehberg, Willard Allen Riley and Mario Ronchetti against the company and its subsidiary, Flowers Baking Company of Jamestown, LLC. Plaintiffs are or were distributors of our Jamestown subsidiary who contend they were misclassified as independent contractors. The action sought class certification on behalf of a class comprised of independent distributors of our Jamestown subsidiary who are classified as independent contractors. In March 2013, the court conditionally certified the class action for claims under the Fair Labor Standards Act (&#x201C;FLSA&#x201D;). On March 23, 2015, the court re-affirmed its FLSA certification decision and also certified claims under state law.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> At this time, the company is also aware of&#xA0;four other complaints alleging misclassification claims that have been filed in&#xA0;four other jurisdictions. The company and/or its respective subsidiaries are vigorously defending these lawsuits. Given the stage of the complaints and the claims and issues presented, the company cannot reasonably estimate at this time the possible loss or range of loss, if any, that may arise from the unresolved lawsuits.</p> </div>
us-gaap Number Of Reportable Segments
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2 Segment
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209913000 shares
us-gaap Payments To Acquire Assets Investing Activities
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OtherNoncashIncomeExpense
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InvestmentIncomeInterest
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InterestExpense
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ProvisionForDoubtfulAccounts
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TreasuryStockValueAcquiredCostMethod
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ProceedsFromCollectionOfNotesReceivable
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InventoryWriteDown
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NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossNetOfTax
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us-gaap Pension And Other Postretirement Benefit Expense
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us-gaap Proceeds From Stock Options Exercised
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us-gaap Debt Issuance Costs
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flo Number Of Independent Distributors
NumberOfIndependentDistributors
3720 Distributor
CY2014Q3 us-gaap Defined Contribution Plan Number Of Employees Covered
DefinedContributionPlanNumberOfEmployeesCovered
2500 Employee
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0.10 pure
CY2015 us-gaap Unrealized Gain Loss On Interest Rate Cash Flow Hedges Pretax Accumulated Other Comprehensive Income Loss
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3100000

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