2015 Q3 Form 10-Q Financial Statement

#000113342115000057 Filed on October 28, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2014 Q3
Revenue $5.979B $5.984B
YoY Change -0.08% -2.0%
Cost Of Revenue $1.889B $2.021B
YoY Change -6.53% -10.65%
Gross Profit $4.090B $3.963B
YoY Change 3.2% 3.1%
Gross Profit Margin 68.41% 66.23%
Selling, General & Admin $663.0M $580.0M
YoY Change 14.31% 4.5%
% of Gross Profit 16.21% 14.64%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $113.0M $105.0M
YoY Change 7.62% -12.5%
% of Gross Profit 2.76% 2.65%
Operating Expenses $663.0M $580.0M
YoY Change 14.31% 4.5%
Operating Profit $794.0M $769.0M
YoY Change 3.25% -2.66%
Interest Expense -$75.00M -$69.00M
YoY Change 8.7% -1.43%
% of Operating Profit -9.45% -8.97%
Other Income/Expense, Net $10.00M -$6.000M
YoY Change -266.67%
Pretax Income $729.0M $694.0M
YoY Change 5.04% -3.61%
Income Tax $213.0M $221.0M
% Of Pretax Income 29.22% 31.84%
Net Earnings $516.0M $473.0M
YoY Change 9.09% -4.83%
Net Earnings / Revenue 8.63% 7.9%
Basic Earnings Per Share $2.78 $2.29
Diluted Earnings Per Share $2.75 $2.26
COMMON SHARES
Basic Shares Outstanding 185.8M shares 206.2M shares
Diluted Shares Outstanding 187.9M shares 209.2M shares

Balance Sheet

Concept 2015 Q3 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.292B $3.402B
YoY Change -62.02% -31.19%
Cash & Equivalents $1.292B $3.402B
Short-Term Investments
Other Short-Term Assets $199.0M $290.0M
YoY Change -31.38% 9.85%
Inventory $856.0M $671.0M
Prepaid Expenses
Receivables $3.268B $3.233B
Other Receivables $0.00 $0.00
Total Short-Term Assets $5.951B $8.122B
YoY Change -26.73% -15.32%
LONG-TERM ASSETS
Property, Plant & Equipment $3.005B $2.845B
YoY Change 5.62% 2.97%
Goodwill $12.46B $12.46B
YoY Change -0.04% 0.2%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $1.200B $1.484B
YoY Change -19.14% 10.83%
Total Long-Term Assets $18.02B $16.92B
YoY Change 6.47% -5.01%
TOTAL ASSETS
Total Short-Term Assets $5.951B $8.122B
Total Long-Term Assets $18.02B $16.92B
Total Assets $23.97B $25.04B
YoY Change -4.3% -8.62%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.194B $1.193B
YoY Change 0.08% -2.29%
Accrued Expenses $1.208B $1.225B
YoY Change -1.39% 15.78%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $5.133B $5.511B
YoY Change -6.86% -4.36%
LONG-TERM LIABILITIES
Long-Term Debt $6.417B $5.926B
YoY Change 8.29% -0.03%
Other Long-Term Liabilities $941.0M $938.0M
YoY Change 0.32% -4.77%
Total Long-Term Liabilities $941.0M $938.0M
YoY Change 0.32% -4.77%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.133B $5.511B
Total Long-Term Liabilities $941.0M $938.0M
Total Liabilities $18.27B $15.15B
YoY Change 20.59% -16.06%
SHAREHOLDERS EQUITY
Retained Earnings $10.61B $12.57B
YoY Change -15.56% 3.05%
Common Stock $183.0M $203.0M
YoY Change -9.85% -88.08%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $5.697B $9.893B
YoY Change
Total Liabilities & Shareholders Equity $23.97B $25.04B
YoY Change -4.3% -8.62%

Cashflow Statement

Concept 2015 Q3 2014 Q3
OPERATING ACTIVITIES
Net Income $516.0M $473.0M
YoY Change 9.09% -4.83%
Depreciation, Depletion And Amortization $113.0M $105.0M
YoY Change 7.62% -12.5%
Cash From Operating Activities $557.0M $933.0M
YoY Change -40.3% -1.79%
INVESTING ACTIVITIES
Capital Expenditures -$102.0M -$109.0M
YoY Change -6.42% 21.11%
Acquisitions
YoY Change
Other Investing Activities $38.00M $0.00
YoY Change -100.0%
Cash From Investing Activities -$64.00M -$109.0M
YoY Change -41.28% 25.29%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.108B -898.0M
YoY Change 23.39% 9.11%
NET CHANGE
Cash From Operating Activities 557.0M 933.0M
Cash From Investing Activities -64.00M -109.0M
Cash From Financing Activities -1.108B -898.0M
Net Change In Cash -615.0M -74.00M
YoY Change 731.08% -285.0%
FREE CASH FLOW
Cash From Operating Activities $557.0M $933.0M
Capital Expenditures -$102.0M -$109.0M
Free Cash Flow $659.0M $1.042B
YoY Change -36.76% 0.19%

Facts In Submission

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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 Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
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CY2014Q3 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 Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTax
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CY2015Q3 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 Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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35000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Net Of Tax
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108000000 USD
CY2015Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansNetOfTax
96000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Net Of Tax
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288000000 USD
CY2014Q4 us-gaap Other Liabilities Current
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CY2015Q3 us-gaap Other Liabilities Noncurrent
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us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
50000000 USD
us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
16000000 USD
CY2014Q3 us-gaap Other Nonoperating Income Expense
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us-gaap Other Nonoperating Income Expense
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10000000 USD
CY2015Q3 us-gaap Other Nonoperating Income Expense
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10000000 USD
us-gaap Other Nonoperating Income Expense
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8000000 USD
us-gaap Payments For Proceeds From Other Investing Activities
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments Of Dividends Common Stock
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us-gaap Payments Of Dividends Common Stock
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us-gaap Payments To Acquire Property Plant And Equipment
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285000000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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334000000 USD
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CY2015Q3 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
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CY2014Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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1
CY2015Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
1
CY2014Q4 us-gaap Preferred Stock Shares Authorized
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CY2015Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
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CY2014Q4 us-gaap Preferred Stock Shares Issued
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CY2015Q3 us-gaap Preferred Stock Shares Issued
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CY2014Q4 us-gaap Preferred Stock Shares Outstanding
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CY2015Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2014Q4 us-gaap Preferred Stock Value
PreferredStockValue
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CY2015Q3 us-gaap Preferred Stock Value
PreferredStockValue
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us-gaap Proceeds From Issuance Of Long Term Debt
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us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
600000000 USD
us-gaap Proceeds From Payments For Other Financing Activities
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us-gaap Proceeds From Payments For Other Financing Activities
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CY2014Q4 us-gaap Property Plant And Equipment Net
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CY2015Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
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CY2014Q4 us-gaap Receivables Long Term Contracts Or Programs
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CY2015Q3 us-gaap Receivables Long Term Contracts Or Programs
ReceivablesLongTermContractsOrPrograms
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CY2014Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2015Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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CY2014Q3 us-gaap Sales Revenue Goods Net
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us-gaap Sales Revenue Goods Net
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us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
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CY2014Q3 us-gaap Sales Revenue Net
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us-gaap Sales Revenue Net
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us-gaap Sales Revenue Net
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us-gaap Sales Revenue Services Net
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CY2015Q3 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
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us-gaap Sales Revenue Services Net
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us-gaap Share Based Compensation
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us-gaap Share Based Compensation
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CY2014Q3 us-gaap Stockholders Equity
StockholdersEquity
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CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
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CY2015Q3 us-gaap Stockholders Equity
StockholdersEquity
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us-gaap Tax Adjustments Settlements And Unusual Provisions
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CY2014Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
214800000 shares
CY2015Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
187900000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
194000000 shares
CY2014Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
206200000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
211600000 shares
CY2015Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
185800000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
191800000 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:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue from Contracts with Customers</font><font style="font-family:inherit;font-size:10pt;">.</font><font style="font-family:inherit;font-size:10pt;"> ASU 2014-09 supersedes existing revenue recognition guidance, including Accounting Standards Codification (ASC) No. 605-35,</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue Recognition - Construction-Type and Production-Type Contracts.</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">ASU 2014-09 outlines a single set of comprehensive principles for recognizing revenue under U.S. GAAP. Among other things, it requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time. These concepts, as well as other aspects of ASU 2014-09, may change the method and/or timing of revenue recognition for certain of our contracts.</font><font style="font-family:inherit;font-size:10pt;"> On July 9, 2015, the FASB approved a one year deferral of the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017. ASU 2014-09 may be applied either retrospectively or through the use of a modified-retrospective method. We are currently evaluating both methods of adoption as well as the effect ASU 2014-09 will have on the company&#8217;s consolidated financial position, annual results of operations and cash flows.</font></div><div style="line-height:120%;padding-bottom:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font></div></div>
us-gaap Fiscal Period
FiscalPeriod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The quarterly information is labeled using a calendar convention; that is, first quarter is consistently labeled as ending on March&#160;31, second quarter as ending on June&#160;30 and third quarter as ending on September&#160;30. It is the company's long-standing practice to establish actual interim closing dates using a &#8220;fiscal&#8221; calendar, in which we close our books on a Friday near these quarter-end dates in order to normalize the potentially disruptive effects of quarterly closings on business processes. This practice is only used at interim periods within a reporting year.</font></div></div>
us-gaap Guarantees Indemnifications And Warranties Policies
GuaranteesIndemnificationsAndWarrantiesPolicies
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Guarantees of Subsidiary Performance Obligations</font></div><div style="line-height:120%;padding-bottom:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">From time to time in the ordinary course of business, the company guarantees obligations of its subsidiaries under certain contracts. Generally, the company is liable under such an arrangement only if its subsidiary is unable to perform under its contract. Historically, the company has not incurred any substantial liabilities resulting from these guarantees.</font></div><div style="line-height:120%;padding-bottom:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In addition, the company&#8217;s subsidiaries&#160;may enter into joint ventures, teaming and other business arrangements (collectively, Business Arrangements) to support our products and services in domestic and international markets. The company generally strives to limit its exposure under these arrangements to its subsidiary&#8217;s investment in the Business Arrangements or to the extent of such subsidiary&#8217;s obligations under the applicable contract. In some cases, however, we may be required to guarantee performance by the Business Arrangements and, in such cases, the company generally strives to obtain cross-indemnification from the other members of the Business Arrangements.</font></div></div>
us-gaap Revenue Recognition Long Term Contracts
RevenueRecognitionLongTermContracts
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The majority of our sales are derived from long-term contracts with the United States (U.S.) Government for the production of goods, the provision of services, or in some cases, a combination of both. In accounting for these contracts, we utilize either the cost-to-cost or the units-of-delivery method of percentage-of-completion accounting, with cost-to-cost being the predominant method. The company estimates profit on contracts as the difference between total estimated sales and total estimated cost at completion and recognizes that profit either as costs are incurred (cost-to-cost) or as units are delivered (units-of-delivery). The company classifies sales as product or service depending upon the predominant attributes of the contract.</font></div><div style="line-height:120%;padding-bottom:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We recognize changes in estimated contract sales, costs or profits using the cumulative catch-up method of accounting. This method recognizes, in the current period, the cumulative effect of the changes on current and prior periods; sales and profit in future periods of contract performance are recognized as if the revised estimates had been used since contract inception. If it is determined that a loss will result from the performance of a contract, the entire amount of the estimable future loss is charged against income in the period the loss is identified. Loss provisions are first offset against any costs that are included in unbilled accounts receivable or inventoried costs, and any remaining amount is reflected in liabilities.</font></div><div style="line-height:120%;padding-bottom:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Significant changes in estimates on a single contract could have a material effect on the company's unaudited condensed consolidated financial position or results of operations. Where such changes occur, we generally disclose the nature, underlying conditions and financial impact of the change.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Accounting Estimates</font></div><div style="line-height:120%;padding-bottom:6px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The accompanying unaudited condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation thereof requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of sales and expenses during the reporting period. Estimates have been prepared using the most current and best available information; however, actual results could differ materially from those estimates.</font></div></div>

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