2017 Q2 Form 10-Q Financial Statement

#000006198617000037 Filed on August 08, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q4 2016 Q2
Revenue $394.6M $378.2M $457.7M
YoY Change -13.79% -30.36% -4.19%
Cost Of Revenue $318.3M $332.7M $370.4M
YoY Change -14.07% -26.86% -2.5%
Gross Profit $76.30M $45.50M $87.30M
YoY Change -12.6% -48.41% -10.74%
Gross Profit Margin 19.34% 12.03% 19.07%
Selling, General & Admin $58.40M $51.60M $73.40M
YoY Change -20.44% -33.07% -7.67%
% of Gross Profit 76.54% 113.41% 84.08%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $9.300M $11.50M $12.20M
YoY Change -23.77% -22.3% -5.43%
% of Gross Profit 12.19% 25.27% 13.97%
Operating Expenses $58.50M $52.70M $74.60M
YoY Change -21.58% -32.26% -6.87%
Operating Profit $11.90M -$23.80M $3.900M
YoY Change 205.13% 71.22% -77.19%
Interest Expense $9.700M -$10.40M $9.900M
YoY Change -2.02% -58.89% -58.75%
% of Operating Profit 81.51% 253.85%
Other Income/Expense, Net -$6.900M -$10.70M -$8.200M
YoY Change -15.85% -991.67% -63.06%
Pretax Income $3.000M -$34.60M -$4.300M
YoY Change -169.77% -9.42% -15.69%
Income Tax $2.300M -$2.600M $700.0K
% Of Pretax Income 76.67%
Net Earnings $500.0K -$33.40M -$5.800M
YoY Change -108.62% -176.78% -124.89%
Net Earnings / Revenue 0.13% -8.83% -1.27%
Basic Earnings Per Share $0.01 -$0.24 -$0.04
Diluted Earnings Per Share $0.01 -$0.24 -$0.04
COMMON SHARES
Basic Shares Outstanding 35.11M 137.1M shares
Diluted Shares Outstanding 35.65M 137.1M shares

Balance Sheet

Concept 2017 Q2 2016 Q4 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $26.30M $69.90M $40.80M
YoY Change -35.54% 121.9% -39.73%
Cash & Equivalents $26.30M $69.90M $40.80M
Short-Term Investments
Other Short-Term Assets $55.40M $54.00M $45.20M
YoY Change 22.57% 17.65% -65.1%
Inventory $476.2M $429.0M $499.9M
Prepaid Expenses
Receivables $181.6M $134.4M $189.7M
Other Receivables $47.00M $62.40M $58.20M
Total Short-Term Assets $786.5M $749.7M $850.1M
YoY Change -7.48% -28.02% -33.62%
LONG-TERM ASSETS
Property, Plant & Equipment $313.7M $308.8M $415.4M
YoY Change -24.48% -24.81% -27.06%
Goodwill $312.5M $299.6M $307.5M
YoY Change 1.63% -2.25% -74.05%
Intangibles $118.7M $114.1M $118.7M
YoY Change 0.0% -4.36% -82.74%
Long-Term Investments
YoY Change
Other Assets $44.30M $45.60M $68.60M
YoY Change -35.42% -74.3% -44.14%
Total Long-Term Assets $789.2M $768.1M $915.8M
YoY Change -13.82% -69.53% -64.29%
TOTAL ASSETS
Total Short-Term Assets $786.5M $749.7M $850.1M
Total Long-Term Assets $789.2M $768.1M $915.8M
Total Assets $1.576B $1.518B $1.766B
YoY Change -10.77% -57.4% -54.08%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $215.2M $157.7M $228.7M
YoY Change -5.9% -41.27% -47.45%
Accrued Expenses $155.6M $162.5M $148.5M
YoY Change 4.78% -1.1% -48.95%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $11.00M $12.40M $17.20M
YoY Change -36.05% -81.55% -74.52%
Total Short-Term Liabilities $459.7M $412.8M $482.9M
YoY Change -4.8% -53.28% -50.22%
LONG-TERM LIABILITIES
Long-Term Debt $278.1M $269.1M $275.0M
YoY Change 1.13% -79.77% -82.39%
Other Long-Term Liabilities $59.10M $64.10M $77.80M
YoY Change -24.04% -26.58% -27.43%
Total Long-Term Liabilities $519.9M $514.5M $531.7M
YoY Change -2.22% -71.99% -74.39%
TOTAL LIABILITIES
Total Short-Term Liabilities $459.7M $412.8M $482.9M
Total Long-Term Liabilities $519.9M $514.5M $531.7M
Total Liabilities $979.6M $927.3M $1.015B
YoY Change -3.45% -65.91% -66.69%
SHAREHOLDERS EQUITY
Retained Earnings $211.8M $247.3M $378.3M
YoY Change -44.01% -56.02% -24.61%
Common Stock $573.1M $569.0M $565.6M
YoY Change 1.33% 1.72% 2.71%
Preferred Stock
YoY Change
Treasury Stock (at cost) $60.80M $62.90M $69.20M
YoY Change -12.14% -12.15% -3.35%
Treasury Stock Shares $22.44M $23.33M 25.60M shares
Shareholders Equity $596.1M $590.5M $751.3M
YoY Change
Total Liabilities & Shareholders Equity $1.576B $1.518B $1.766B
YoY Change -10.77% -57.4% -54.08%

Cashflow Statement

Concept 2017 Q2 2016 Q4 2016 Q2
OPERATING ACTIVITIES
Net Income $500.0K -$33.40M -$5.800M
YoY Change -108.62% -176.78% -124.89%
Depreciation, Depletion And Amortization $9.300M $11.50M $12.20M
YoY Change -23.77% -22.3% -5.43%
Cash From Operating Activities -$81.60M -$396.7M -$16.30M
YoY Change 400.61% -327.07% -129.37%
INVESTING ACTIVITIES
Capital Expenditures $8.100M -$11.10M -$13.80M
YoY Change -158.7% -51.74% -1.43%
Acquisitions
YoY Change
Other Investing Activities $73.30M $460.5M $0.00
YoY Change 560.69% -100.0%
Cash From Investing Activities $65.20M $449.4M -$13.80M
YoY Change -572.46% 862.31% 21.05%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 6.300M -23.60M -15.90M
YoY Change -139.62% -89.74% -66.46%
NET CHANGE
Cash From Operating Activities -81.60M -396.7M -16.30M
Cash From Investing Activities 65.20M 449.4M -13.80M
Cash From Financing Activities 6.300M -23.60M -15.90M
Net Change In Cash -10.10M 29.10M -46.00M
YoY Change -78.04% -438.37% 1293.94%
FREE CASH FLOW
Cash From Operating Activities -$81.60M -$396.7M -$16.30M
Capital Expenditures $8.100M -$11.10M -$13.80M
Free Cash Flow -$89.70M -$385.6M -$2.500M
YoY Change 3488.0% -295.04% -103.6%

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29100000 USD
CY2016Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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CY2017Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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3000000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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CY2016Q2 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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-197700000 USD
CY2017Q2 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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700000 USD
us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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CY2016Q2 us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
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-0.04
us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
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-0.04
us-gaap Income Loss From Continuing Operations Per Basic Share
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-1.44
CY2017Q2 us-gaap Income Loss From Continuing Operations Per Basic Share
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0.00
us-gaap Income Loss From Continuing Operations Per Basic Share
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CY2016Q2 us-gaap Income Loss From Continuing Operations Per Diluted Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2017Q2 us-gaap Income Loss From Continuing Operations Per Diluted Share
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0.00
us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2016Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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-0.01
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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-0.03
CY2017Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.00
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.00
CY2016Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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-0.01
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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CY2017Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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0.00
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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0.00
CY2016Q2 us-gaap Income Tax Expense Benefit
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700000 USD
us-gaap Income Tax Expense Benefit
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108400000 USD
CY2017Q2 us-gaap Income Tax Expense Benefit
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2300000 USD
us-gaap Income Tax Expense Benefit
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3800000 USD
us-gaap Increase Decrease In Accounts Payable
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us-gaap Increase Decrease In Accounts Payable
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46800000 USD
us-gaap Increase Decrease In Accounts Receivable
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33300000 USD
us-gaap Increase Decrease In Accounts Receivable
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40200000 USD
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-15300000 USD
us-gaap Increase Decrease In Accrued Liabilities
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us-gaap Increase Decrease In Deferred Income Taxes
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-111400000 USD
us-gaap Increase Decrease In Deferred Income Taxes
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0 USD
us-gaap Increase Decrease In Inventories
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39900000 USD
us-gaap Increase Decrease In Inventories
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34600000 USD
us-gaap Increase Decrease In Notes Receivable Current
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-7500000 USD
us-gaap Increase Decrease In Notes Receivable Current
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-9500000 USD
us-gaap Increase Decrease In Other Operating Assets
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9700000 USD
us-gaap Increase Decrease In Other Operating Assets
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4400000 USD
CY2016Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
CY2017Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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2180983 shares
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CY2017Q2 us-gaap Intangible Assets Gross Excluding Goodwill
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166900000 USD
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114100000 USD
CY2017Q2 us-gaap Intangible Assets Net Excluding Goodwill
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118700000 USD
CY2016Q2 us-gaap Interest Expense
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9900000 USD
us-gaap Interest Expense
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19600000 USD
CY2017Q2 us-gaap Interest Expense
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9700000 USD
us-gaap Interest Expense
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19800000 USD
CY2016Q4 us-gaap Inventory Finished Goods
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270900000 USD
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269100000 USD
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468600000 USD
CY2017Q2 us-gaap Inventory Gross
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520900000 USD
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429000000 USD
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476200000 USD
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109300000 USD
CY2017Q2 us-gaap Inventory Raw Materials
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123900000 USD
CY2016Q4 us-gaap Inventory Valuation Reserves
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39600000 USD
CY2017Q2 us-gaap Inventory Valuation Reserves
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44700000 USD
CY2016Q4 us-gaap Inventory Work In Process
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88400000 USD
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127900000 USD
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1575700000 USD
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CY2017Q2 us-gaap Liabilities Current
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459700000 USD
CY2016Q4 us-gaap Liabilities Noncurrent
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514500000 USD
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519900000 USD
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21700000 USD
CY2017Q2 us-gaap Litigation Reserve Current
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22300000 USD
CY2016Q4 us-gaap Long Term Debt And Capital Lease Obligations
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269100000 USD
CY2017Q2 us-gaap Long Term Debt And Capital Lease Obligations
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278100000 USD
us-gaap Net Cash Provided By Used In Financing Activities
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228600000 USD
us-gaap Net Cash Provided By Used In Financing Activities
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5500000 USD
us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
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228400000 USD
us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
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5500000 USD
us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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-5300000 USD
us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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-23500000 USD
us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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-5300000 USD
us-gaap Net Cash Provided By Used In Operating Activities
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-226500000 USD
us-gaap Net Cash Provided By Used In Operating Activities
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-44600000 USD
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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-178800000 USD
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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-44400000 USD
CY2016Q2 us-gaap Net Income Loss
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us-gaap Net Income Loss
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CY2017Q2 us-gaap Net Income Loss
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500000 USD
us-gaap Net Income Loss
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CY2017Q2 us-gaap Nonoperating Income Expense
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62400000 USD
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47000000 USD
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21100000 USD
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18000000 USD
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1 segment
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3900000 USD
us-gaap Operating Income Loss
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4700000 USD
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9900000 USD
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96300000 USD
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54000000 USD
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55400000 USD
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45600000 USD
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44300000 USD
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1500000 USD
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100000 USD
us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
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600000 USD
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Tax
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1100000 USD
CY2017Q2 us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Tax
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0 USD
us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Tax
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0 USD
CY2016Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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31800000 USD
CY2017Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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23100000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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33200000 USD
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35700000 USD
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23700000 USD
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34900000 USD
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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CY2017Q2 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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CY2016Q2 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
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0 USD
us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
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0 USD
CY2017Q2 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
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4500000 USD
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2100000 USD
us-gaap Other Nonoperating Income Expense
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3200000 USD
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200000 USD
us-gaap Other Operating Income Expense Net
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38000000 USD
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36400000 USD
us-gaap Payments For Proceeds From Other Investing Activities
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16600000 USD
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8300000 USD
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0 USD
us-gaap Payments To Acquire Property Plant And Equipment
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24700000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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11900000 USD
CY2016Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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PreferredStockParOrStatedValuePerShare
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CY2017Q2 us-gaap Preferred Stock Shares Authorized
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CY2017Q2 us-gaap Preferred Stock Shares Outstanding
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us-gaap Standard Product Warranty Accrual Warranties Issued
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16300000 USD
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2400000.0 shares
CY2016Q4 us-gaap Preferred Stock Value
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0 USD
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160200000 USD
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0 USD
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261100000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
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0 USD
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0 USD
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10300000 USD
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900000 USD
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5300000 USD
CY2016Q4 us-gaap Product Liability Contingency Accrual Present Value
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21700000 USD
CY2017Q2 us-gaap Product Liability Contingency Accrual Present Value
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22300000 USD
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36500000 USD
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32500000 USD
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4800000 USD
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5900000 USD
us-gaap Restructuring Charges
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17600000 USD
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4500000 USD
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4700000 USD
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247300000 USD
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211800000 USD
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457700000 USD
us-gaap Sales Revenue Net
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885100000 USD
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394600000 USD
us-gaap Sales Revenue Net
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700400000 USD
CY2016Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
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1700000 shares
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
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0 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
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1100000 shares
CY2015Q4 us-gaap Standard Product Warranty Accrual
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28600000 USD
CY2017Q2 us-gaap Standard Product Warranty Accrual
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29600000 USD
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500000 USD
us-gaap Standard Product Warranty Accrual Foreign Currency Translation Gain Loss
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23700000 USD
us-gaap Standard Product Warranty Accrual Payments
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16400000 USD
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590500000 USD
CY2017Q2 us-gaap Stockholders Equity
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596100000 USD
CY2016Q4 us-gaap Transfer Of Financial Assets Accounted For As Sales Fair Value Of Derecognized Assets
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19500000 USD
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32700000 USD
CY2016Q4 us-gaap Treasury Stock Shares
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22570004 shares
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62900000 USD
CY2017Q2 us-gaap Treasury Stock Value
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60800000 USD
CY2016Q4 us-gaap Unrecognized Tax Benefits
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15800000 USD
CY2017Q2 us-gaap Unrecognized Tax Benefits
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15600000 USD
CY2016Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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137138220 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
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136869066 shares
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
142618685 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
140260690 shares
CY2016Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
137138220 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
136869066 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
140437702 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
140260690 shares
us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Recent Accounting Changes and Pronouncements</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2017, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) No. - 2017-09 &#8220;Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting,&#8221; to provide clarity and reduce both diversity in practice and cost complexity when applying the guidance in Topic 718 to a change to the terms and conditions of a stock-based payment award. ASU 2017-09 also provides guidance about the types of changes to the terms or conditions of a share-based payment award that require an entity to apply modification accounting in accordance with Topic 718. The standard is effective for annual periods beginning after December 15, 2017, and for interim periods therein. Early adoption is permitted. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2017, the FASB issued ASU No. 2017-08 &#8220;Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities,&#8221; to shorten the amortization period for the premium to the earliest call date instead of the contractual life of the instrument. This new guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with early adoption permitted. Entities will be required to apply the new guidance using the modified retrospective method with a cumulative-effect adjustment to retained earnings upon the adoption date. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2017, the FASB issued ASU No. 2017-07 &#8220;Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.&#8221; This ASU amends ASC 715, Compensation &#8211; Retirement Benefits, to require employers that present a measure of operating income in their statement of income to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs). The other components of net benefit cost, including amortization of prior service cost/credit and settlement and curtailment effects, are to be included in nonoperating expenses. This ASU also allows only the service cost component of net benefit cost to be capitalized (for example, as a cost of inventory). The amendments in this ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets, and is effective for public companies for fiscal years beginning after December 15, 2017; early adoption is permitted. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2017, the FASB issued ASU No. 2017-04 - &#8220;Intangibles &#8211; Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment.&#8221; This ASU simplifies the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit&#8217;s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.&#160; ASU No. 2017-04 will be effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption was permitted for any impairment tests performed after January 1, 2017. The Company early adopted ASU No. 2017-04 effective in the first quarter of 2017.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In November 2016, the FASB issued ASU No. 2016-18 - &#8220;Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).&#8221; The amendments of this ASU address the diversity of presentation of restricted cash by requiring a statement of cash flows to explain the change during the period in the total cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 will be effective for fiscal years beginning after December 15, 2017. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In October 2016, the FASB issued ASU No. 2016-16 - &#8220;Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory,&#8221; which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 will be effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2016, the FASB issued ASU No. 2016-15 - &#8220;Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.&#8221; This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice and affects all entities required to present a statement of cash flows under Topic 230. This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued ASU No. 2014-09 - &#8220;Revenue from Contracts with Customers&#8221; (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This was further clarified with technical corrections issued within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, ASU 2016-20 and ASU 2017-05. The new revenue recognition guidance was issued to provide a single, comprehensive revenue recognition model for all contracts with customer. Under the new guidance, an entity will recognize revenue to depict the transfer of promised goods or services to customer at an amount that the entity expects to be entitled to in exchange for those goods or services. A five-step model has been introduced for an entity to apply when recognizing revenue. The new guidance also includes enhanced disclosure requirements and is effective January 1, 2018, with early adoption permitted as of January 1, 2017. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented, or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Consolidated Statement of Changes in Stockholder's Equity. The Company plans to adopt the new guidance effective January 1, 2018 utilizing the modified retrospective approach. Based upon review of the Company's current revenue recognition practices, the Company has not identified any terms or conditions in the contracts reviewed that would suggest the adoption of ASC 606 will result in a different pattern of revenue recognition than that recorded under current guidance.&#160; However, the Company will continue to evaluate this assessment as further review is performed, which includes incremental contract reviews and finalization of our documentation, which could identify changes under ASU 2014-09.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2016, the FASB issued ASU 2016-09 - &#8220;Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.&#8221; This update is part of the FASB's Simplification Initiative, and its objective is to identify, evaluate and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving usefulness of the information provided to users of financial statements. The update involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The effective date for this ASU is for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2016, the FASB issued ASU No. 2016-06 - &#8220;Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments.&#8221; The amendments clarify the steps required to assess whether a call or put option meets the criteria for bifurcation as an embedded derivative. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued ASU 2016-02 - &#8220;Leases&#8221;, which is intended to improve financial reporting on leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by lease terms of more than 12 months. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2016, the FASB issued ASU 2016-01 - &#8220;Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.&#8221; ASU 2016-01 amends various aspects of the recognition, measurement, presentation and disclosure for financial instruments. Most significantly, ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of an investee) to be measured at fair value with changes in fair value recognized in net income (loss). ASU 2016-01 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2017. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In July 2015, the FASB issued ASU No. 2015-11 - &#8220;Inventory (Topic 330): Simplifying the Measurement of Inventory.&#8221; This update changes the guidance on accounting for inventory accounted for on a first-in first-out (FIFO) basis. Under the revised standard, an entity should measure FIFO inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory measured on a last-in, first-out (LIFO) basis. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.</font></div></div>

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