2018 Q3 Form 10-K Financial Statement

#000005836118000038 Filed on December 14, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2018 Q2 2018
Revenue $139.7M $132.6M $544.0M
YoY Change -0.37% -4.83% -4.05%
Cost Of Revenue $7.000M $6.400M $24.90M
YoY Change 22.81% 4.92% 0.0%
Gross Profit $132.7M $126.2M $519.0M
YoY Change -1.34% -5.26% -4.24%
Gross Profit Margin 94.99% 95.16% 95.41%
Selling, General & Admin $49.60M $48.60M $199.2M
YoY Change -8.32% -5.81% -6.52%
% of Gross Profit 37.38% 38.51% 38.38%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $7.800M $3.606M $31.77M
YoY Change -24.27% -10.1% -23.05%
% of Gross Profit 5.88% 2.86% 6.12%
Operating Expenses $108.3M $114.0M $467.5M
YoY Change -5.0% -5.29% -3.69%
Operating Profit $24.40M $20.16M $85.69M
YoY Change 19.02% -1.98% -3.86%
Interest Expense -$10.60M $12.91M $52.84M
YoY Change -20.9% -9.89% -8.22%
% of Operating Profit -43.44% 64.07% 61.66%
Other Income/Expense, Net $100.0K -$13.43M -$54.87M
YoY Change -96.0% 8.04% 12.18%
Pretax Income $5.000M $6.722M $30.82M
YoY Change -15.25% -17.32% -23.36%
Income Tax $600.0K $1.972M -$16.23M
% Of Pretax Income 12.0% 29.34% -52.65%
Net Earnings $4.100M $4.458M $45.77M
YoY Change 28.73% -25.64% 66.54%
Net Earnings / Revenue 2.93% 3.36% 8.41%
Basic Earnings Per Share $0.08 $0.84
Diluted Earnings Per Share $732.1K $0.08 $0.82
COMMON SHARES
Basic Shares Outstanding 57.15M shares 54.78M 54.70M
Diluted Shares Outstanding 56.08M 55.95M

Balance Sheet

Concept 2018 Q3 2018 Q2 2018
SHORT-TERM ASSETS
Cash & Short-Term Investments $5.400M $16.00M $5.400M
YoY Change -49.06% -36.0% -49.06%
Cash & Equivalents $5.380M $16.03M $5.400M
Short-Term Investments
Other Short-Term Assets $4.567M $5.608M $4.600M
YoY Change 10.53% 4.65% 12.2%
Inventory $5.684M $5.145M $5.700M
Prepaid Expenses
Receivables $43.71M $46.00M $43.70M
Other Receivables $0.00 $200.0K $0.00
Total Short-Term Assets $59.34M $72.99M $59.30M
YoY Change -12.52% -11.84% -12.54%
LONG-TERM ASSETS
Property, Plant & Equipment $92.33M $104.6M $92.30M
YoY Change -19.15% -11.41% -19.18%
Goodwill $246.2M $246.4M
YoY Change -0.1% 1.0%
Intangibles $119.8M $124.0M
YoY Change -12.09% -11.11%
Long-Term Investments $29.22M $27.88M $40.20M
YoY Change 0.12% -5.08% 2.81%
Other Assets $1.415M $2.814M $17.60M
YoY Change -9.64% 69.52% 3.53%
Total Long-Term Assets $516.1M $531.8M $516.1M
YoY Change -6.68% -4.73% -6.69%
TOTAL ASSETS
Total Short-Term Assets $59.34M $72.99M $59.30M
Total Long-Term Assets $516.1M $531.8M $516.1M
Total Assets $575.4M $604.8M $575.4M
YoY Change -7.32% -5.65% -7.33%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $12.75M $17.76M $12.70M
YoY Change -25.14% 17.49% -25.29%
Accrued Expenses $19.64M $19.03M $21.70M
YoY Change -13.12% -8.09% -9.21%
Deferred Revenue $23.90M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $7.027M $18.00M $7.000M
YoY Change -76.72% -43.99% -76.82%
Total Short-Term Liabilities $65.34M $92.39M $65.30M
YoY Change -33.47% -14.08% -33.5%
LONG-TERM LIABILITIES
Long-Term Debt $460.8M $463.5M $460.8M
YoY Change -7.17% -9.69% -7.17%
Other Long-Term Liabilities $10.56M $11.01M $46.40M
YoY Change 5.18% 14.62% -27.61%
Total Long-Term Liabilities $471.3M $474.5M $507.2M
YoY Change -6.93% -9.24% -9.51%
TOTAL LIABILITIES
Total Short-Term Liabilities $65.34M $92.39M $65.30M
Total Long-Term Liabilities $471.3M $474.5M $507.2M
Total Liabilities $611.7M $653.1M $612.8M
YoY Change -14.1% -11.94% -14.07%
SHAREHOLDERS EQUITY
Retained Earnings -$279.7M -$286.8M
YoY Change -14.86% -13.53%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$37.35M -$49.34M -$37.40M
YoY Change
Total Liabilities & Shareholders Equity $575.4M $604.8M $575.4M
YoY Change -7.32% -5.65% -7.33%

Cashflow Statement

Concept 2018 Q3 2018 Q2 2018
OPERATING ACTIVITIES
Net Income $4.100M $4.458M $45.77M
YoY Change 28.73% -25.64% 66.54%
Depreciation, Depletion And Amortization $7.800M $3.606M $31.77M
YoY Change -24.27% -10.1% -23.05%
Cash From Operating Activities $2.300M $21.90M $59.30M
YoY Change -82.17% -15.77% -17.96%
INVESTING ACTIVITIES
Capital Expenditures -$1.700M -$1.800M $6.025M
YoY Change 88.89% 63.64% 47.74%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $3.800M $700.0K $1.864M
YoY Change -160.32% 0.0% 274.3%
Cash From Investing Activities $2.000M -$1.200M -$72.00K
YoY Change -128.17% 140.0% -99.24%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $73.53M
YoY Change -0.35%
Cash From Financing Activities -15.00M -17.00M -$64.47M
YoY Change -25.37% 2.41% -6.83%
NET CHANGE
Cash From Operating Activities 2.300M 21.90M $59.30M
Cash From Investing Activities 2.000M -1.200M -$72.00K
Cash From Financing Activities -15.00M -17.00M -$64.47M
Net Change In Cash -10.70M 3.700M -$5.241M
YoY Change -25.17% -58.43% -17.63%
FREE CASH FLOW
Cash From Operating Activities $2.300M $21.90M $59.30M
Capital Expenditures -$1.700M -$1.800M $6.025M
Free Cash Flow $4.000M $23.70M $53.27M
YoY Change -71.01% -12.55% -21.89%

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2035000 USD
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OperatingLeasesFutureMinimumPaymentsDueInFiveYears
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OperatingLeasesFutureMinimumPaymentsDueInFourYears
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CY2018Q3 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
2763000 USD
CY2018Q3 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
3187000 USD
CY2018Q3 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
6000000 USD
CY2017Q3 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
63048000 USD
CY2017Q3 us-gaap Other Assets Current
OtherAssetsCurrent
4132000 USD
CY2018Q3 us-gaap Other Assets Current
OtherAssetsCurrent
4567000 USD
CY2017Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
1566000 USD
CY2018Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
1415000 USD
CY2018Q3 us-gaap Other Commitment
OtherCommitment
680000 USD
CY2016 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-6503000 USD
CY2017 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
6710000 USD
CY2018 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
4322000 USD
CY2016 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
218726000 USD
CY2017 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
199754000 USD
CY2018 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
199653000 USD
CY2017Q3 us-gaap Other Liabilities
OtherLiabilities
7144000 USD
CY2018Q3 us-gaap Other Liabilities
OtherLiabilities
6605000 USD
CY2017Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
10041000 USD
CY2018Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
10561000 USD
CY2016 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-6268000 USD
CY2017 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
10060000 USD
CY2018 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
450000 USD
CY2016 us-gaap Other Operating Activities Cash Flow Statement
OtherOperatingActivitiesCashFlowStatement
3948000 USD
CY2017 us-gaap Other Operating Activities Cash Flow Statement
OtherOperatingActivitiesCashFlowStatement
967000 USD
CY2018 us-gaap Other Operating Activities Cash Flow Statement
OtherOperatingActivitiesCashFlowStatement
-6906000 USD
CY2016 us-gaap Other Sales Revenue Net
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46899000 USD
CY2017 us-gaap Other Sales Revenue Net
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43661000 USD
CY2018 us-gaap Other Sales Revenue Net
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45401000 USD
CY2016 us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
500000 USD
CY2017 us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
498000 USD
CY2018 us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
1864000 USD
CY2016 us-gaap Payments Of Financing Costs
PaymentsOfFinancingCosts
422000 USD
CY2017 us-gaap Payments Of Financing Costs
PaymentsOfFinancingCosts
373000 USD
CY2018 us-gaap Payments Of Financing Costs
PaymentsOfFinancingCosts
437000 USD
CY2016 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
0 USD
CY2017 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
7450000 USD
CY2018 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
0 USD
CY2016 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
7091000 USD
CY2017 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
4078000 USD
CY2018 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
6025000 USD
CY2016 us-gaap Pension Contributions
PensionContributions
4604000 USD
CY2017 us-gaap Pension Contributions
PensionContributions
0 USD
CY2018 us-gaap Pension Contributions
PensionContributions
4990000 USD
CY2017Q3 us-gaap Postemployment Benefits Liability Noncurrent
PostemploymentBenefitsLiabilityNoncurrent
5004000 USD
CY2018 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
6623000 USD
CY2016 us-gaap Profit Loss
ProfitLoss
36019000 USD
CY2016Q4 us-gaap Profit Loss
ProfitLoss
12440000 USD
CY2017Q1 us-gaap Profit Loss
ProfitLoss
6377000 USD
CY2017Q2 us-gaap Profit Loss
ProfitLoss
6287000 USD
CY2017Q3 us-gaap Profit Loss
ProfitLoss
3501000 USD
CY2017 us-gaap Profit Loss
ProfitLoss
28605000 USD
CY2017Q4 us-gaap Profit Loss
ProfitLoss
35327000 USD
CY2018Q1 us-gaap Profit Loss
ProfitLoss
2533000 USD
CY2018Q3 us-gaap Postemployment Benefits Liability Noncurrent
PostemploymentBenefitsLiabilityNoncurrent
2580000 USD
CY2017Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0
CY2018Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0
CY2017Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
500000 shares
CY2018Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
500000 shares
CY2017Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2018Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2018Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2016 us-gaap Proceeds From Insurance Settlement Investing Activities
ProceedsFromInsuranceSettlementInvestingActivities
30646000 USD
CY2017 us-gaap Proceeds From Insurance Settlement Investing Activities
ProceedsFromInsuranceSettlementInvestingActivities
0 USD
CY2018 us-gaap Proceeds From Insurance Settlement Investing Activities
ProceedsFromInsuranceSettlementInvestingActivities
0 USD
CY2016 us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
5000000 USD
CY2017 us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
5000000 USD
CY2018 us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
10000000 USD
CY2016 us-gaap Proceeds From Sale Of Property Plant And Equipment
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9878000 USD
CY2017 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
2582000 USD
CY2018Q2 us-gaap Profit Loss
ProfitLoss
4750000 USD
us-gaap Profit Loss
ProfitLoss
4438000 USD
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ProfitLoss
47048000 USD
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PropertyPlantAndEquipmentGross
472194000 USD
CY2018Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
445850000 USD
CY2017Q3 us-gaap Property Plant And Equipment Net
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114196000 USD
CY2018Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
92328000 USD
CY2016 us-gaap Provision For Doubtful Accounts
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1195000 USD
CY2017 us-gaap Provision For Doubtful Accounts
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1696000 USD
CY2018 us-gaap Provision For Doubtful Accounts
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1952000 USD
CY2016 us-gaap Repayments Of Long Term Debt
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112455000 USD
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RepaymentsOfLongTermDebt
73782000 USD
CY2018 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
73526000 USD
CY2016 us-gaap Restructuring Charges
RestructuringCharges
1825000 USD
CY2017 us-gaap Restructuring Charges
RestructuringCharges
7523000 USD
CY2018 us-gaap Restructuring Charges
RestructuringCharges
5550000 USD
CY2017Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-328524000 USD
CY2018Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-279691000 USD
CY2016 us-gaap Revenues
Revenues
614364000 USD
CY2018 us-gaap Tangible Asset Impairment Charges
TangibleAssetImpairmentCharges
267000 USD
CY2018Q3 us-gaap Unamortized Debt Issuance Expense
UnamortizedDebtIssuanceExpense
17055000 USD
CY2016Q3 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
12531000 USD
CY2016Q4 us-gaap Revenues
Revenues
153989000 USD
CY2017Q1 us-gaap Revenues
Revenues
133387000 USD
CY2017Q2 us-gaap Revenues
Revenues
139355000 USD
CY2017Q3 us-gaap Revenues
Revenues
140212000 USD
CY2017 us-gaap Revenues
Revenues
566943000 USD
CY2017Q4 us-gaap Revenues
Revenues
143786000 USD
CY2018Q1 us-gaap Revenues
Revenues
127805000 USD
CY2018Q2 us-gaap Revenues
Revenues
132618000 USD
us-gaap Revenues
Revenues
139746000 USD
CY2018 us-gaap Revenues
Revenues
543955000 USD
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
2130019 shares
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
3230069 shares
CY2015Q3 us-gaap Stockholders Equity
StockholdersEquity
-128485000 USD
CY2017Q3 us-gaap Stockholders Equity
StockholdersEquity
-92235000 USD
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
-37354000 USD
CY2017Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-91213000 USD
CY2018Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-36260000 USD
CY2016 us-gaap Subscription Revenue
SubscriptionRevenue
194002000 USD
CY2017 us-gaap Subscription Revenue
SubscriptionRevenue
191922000 USD
CY2018 us-gaap Subscription Revenue
SubscriptionRevenue
195108000 USD
CY2016 us-gaap Tangible Asset Impairment Charges
TangibleAssetImpairmentCharges
1367000 USD
CY2017 us-gaap Tangible Asset Impairment Charges
TangibleAssetImpairmentCharges
482000 USD
CY2017Q3 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
13915000 USD
CY2018Q3 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
16104000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromCurrentPeriodTaxPositions
2150000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromCurrentPeriodTaxPositions
2567000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
36000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
132000 USD
CY2017Q3 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
367000 USD
CY2018Q3 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
563000 USD
CY2017 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
802000 USD
CY2018 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
510000 USD
CY2018Q3 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
12779000 USD
CY2016 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1026000 shares
CY2017 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1402000 shares
CY2018 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1246000 shares
CY2016 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
54224000 shares
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
55392000 shares
CY2018 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
55948000 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
53198000 shares
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
53990000 shares
CY2018 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
54702000 shares
CY2018 us-gaap Fiscal Period
FiscalPeriod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Fiscal Year</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">&#160;&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">All of our enterprises use period accounting with the fiscal year ending on the last Sunday in September. </font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Accounting Estimates </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on an on-going basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. </font></div></div>

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