2023 Q2 Form 10-Q Financial Statement

#000146866623000022 Filed on June 08, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2022 Q2
Revenue $94.40M $121.0M
YoY Change -22.0% -13.23%
Cost Of Revenue $42.79M $49.44M
YoY Change -13.45% -13.59%
Gross Profit $51.61M $71.58M
YoY Change -27.9% -12.98%
Gross Profit Margin 54.67% 59.15%
Selling, General & Admin $56.79M $64.61M
YoY Change -12.1% 4.27%
% of Gross Profit 110.04% 90.26%
Research & Development $31.17M $33.33M
YoY Change -6.48% 18.4%
% of Gross Profit 60.4% 46.56%
Depreciation & Amortization $8.980M $9.383M
YoY Change -4.3% -5.39%
% of Gross Profit 17.4% 13.11%
Operating Expenses $87.96M $97.94M
YoY Change -10.19% 8.68%
Operating Profit -$36.35M -$26.36M
YoY Change 37.93% 235.49%
Interest Expense -$1.746M -$697.0K
YoY Change 150.5% -23.15%
% of Operating Profit
Other Income/Expense, Net -$1.746M -$697.0K
YoY Change 150.5% -23.15%
Pretax Income -$38.10M -$27.05M
YoY Change 40.83% 208.72%
Income Tax -$7.128M -$5.455M
% Of Pretax Income
Net Earnings -$30.97M -$21.60M
YoY Change 43.39% 238.0%
Net Earnings / Revenue -32.81% -17.85%
Basic Earnings Per Share -$0.36 -$0.26
Diluted Earnings Per Share -$0.36 -$257.8K
COMMON SHARES
Basic Shares Outstanding 85.43M shares 83.76M shares
Diluted Shares Outstanding 85.43M shares 83.76M shares

Balance Sheet

Concept 2023 Q2 2022 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $94.51M $186.2M
YoY Change -49.25% 3.11%
Cash & Equivalents $94.51M $186.2M
Short-Term Investments
Other Short-Term Assets $17.52M $27.08M
YoY Change -35.31% 60.02%
Inventory $675.0K $373.0K
Prepaid Expenses
Receivables $56.99M $74.90M
Other Receivables $0.00 $0.00
Total Short-Term Assets $169.7M $288.6M
YoY Change -41.19% -1.55%
LONG-TERM ASSETS
Property, Plant & Equipment $4.122M $7.241M
YoY Change -43.07% -52.5%
Goodwill $425.4M $425.9M
YoY Change -0.12% -0.09%
Intangibles $99.41M $127.6M
YoY Change -22.12% -16.16%
Long-Term Investments
YoY Change
Other Assets $64.73M $69.35M
YoY Change -6.67% -9.61%
Total Long-Term Assets $603.0M $646.3M
YoY Change -6.7% -6.56%
TOTAL ASSETS
Total Short-Term Assets $169.7M $288.6M
Total Long-Term Assets $603.0M $646.3M
Total Assets $772.7M $934.9M
YoY Change -17.35% -5.07%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $14.77M $22.86M
YoY Change -35.4% 30.82%
Accrued Expenses $53.49M $55.06M
YoY Change -2.86% -8.52%
Deferred Revenue $139.6M $163.1M
YoY Change -14.39% -1.9%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $207.8M $241.0M
YoY Change -13.75% -1.19%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $14.28M $42.65M
YoY Change -66.51% -15.73%
Total Long-Term Liabilities $14.28M $42.65M
YoY Change -66.51% -15.73%
TOTAL LIABILITIES
Total Short-Term Liabilities $207.8M $241.0M
Total Long-Term Liabilities $14.28M $42.65M
Total Liabilities $243.0M $309.6M
YoY Change -21.49% -4.38%
SHAREHOLDERS EQUITY
Retained Earnings -$415.1M -$291.2M
YoY Change 42.54% 23.28%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $19.90M
YoY Change 0.0%
Treasury Stock Shares 1.257M shares
Shareholders Equity $529.7M $625.3M
YoY Change
Total Liabilities & Shareholders Equity $772.7M $934.9M
YoY Change -17.35% -5.07%

Cashflow Statement

Concept 2023 Q2 2022 Q2
OPERATING ACTIVITIES
Net Income -$30.97M -$21.60M
YoY Change 43.39% 238.0%
Depreciation, Depletion And Amortization $8.980M $9.383M
YoY Change -4.3% -5.39%
Cash From Operating Activities -$42.18M -$24.88M
YoY Change 69.55% -18.58%
INVESTING ACTIVITIES
Capital Expenditures $480.0K $413.0K
YoY Change 16.22% -21.18%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$1.690M -$2.114M
YoY Change -20.06% -7.85%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$5.134M -$7.442M
YoY Change -31.01% 8.79%
NET CHANGE
Cash From Operating Activities -$42.18M -$24.88M
Cash From Investing Activities -$1.690M -$2.114M
Cash From Financing Activities -$5.134M -$7.442M
Net Change In Cash -$49.01M -$34.44M
YoY Change 42.32% -13.25%
FREE CASH FLOW
Cash From Operating Activities -$42.18M -$24.88M
Capital Expenditures $480.0K $413.0K
Free Cash Flow -$42.66M -$25.29M
YoY Change 68.68% -18.63%

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CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2023Q1 us-gaap Stockholders Equity
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CY2023Q2 us-gaap Stock Issued During Period Value Share Based Compensation
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CY2023Q2 us-gaap Stockholders Equity
StockholdersEquity
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CY2022Q1 us-gaap Stockholders Equity
StockholdersEquity
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CY2022Q2 us-gaap Net Income Loss
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CY2022Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
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CY2022Q2 us-gaap Stock Issued During Period Value Share Based Compensation
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AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation
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CY2022Q2 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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CY2022Q2 us-gaap Stockholders Equity
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CY2023Q2 us-gaap Fiscal Period
FiscalPeriod
<div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Fiscal Year</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s fiscal year is the 52- or 53-week period ending on the Friday closest to January 31. The Company refers to the fiscal year ending February 2, 2024 and the fiscal year ended February 3, 2023 as fiscal 2024 and fiscal 2023, respectively. Fiscal 2024 consists of 52 weeks and fiscal 2023 consisted of 53 weeks. In fiscal 2024, each quarter has 13 weeks. In fiscal 2023, each quarter consisted of 13 weeks except for the fourth quarter, which consisted of 14 weeks. Unless otherwise indicated, all changes identified for the current-period results represent comparisons to results for the prior corresponding fiscal periods.</span></div>
CY2023Q2 us-gaap Use Of Estimates
UseOfEstimates
Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Estimates are revised as additional information becomes available. In the Condensed Consolidated Statements of Operations, estimates are used when accounting for revenue arrangements, determining the cost of revenue, allocating cost and estimating the impact of contingencies. In the Condensed Consolidated Statements of Financial Position, estimates are used in determining the valuation and recoverability of assets, such as accounts receivables, inventories, fixed assets, capitalized software, goodwill and other identifiable intangible assets. Estimates are also used in determining the reported amounts of liabilities, such as taxes payable and the impact of contingencies. All estimates also impact the Condensed Consolidated Statements of Operations. Actual results could differ from these estimates due to risks and uncertainties, including uncertainty in the current economic environment due to the Ukraine/Russia conflict and impacts of inflation. The Company considered the potential impact of the current economic and geopolitical uncertainty on its estimates and assumptions and determined there was not a material impact to the Company’s condensed consolidated financial statements as of and for the three months ended May 5, 2023. As current economic environment continues to develop, many of the Company’s estimates could require increased judgment and be subject to a higher degree of variability and volatility. As a result, the Company’s estimates may change materially in future periods.
CY2023Q2 us-gaap Net Income Loss
NetIncomeLoss
-30970000 usd
CY2022Q2 us-gaap Net Income Loss
NetIncomeLoss
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CY2023Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2023Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2022Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2022Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2023Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.36
CY2023Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.36
CY2022Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.26
CY2022Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.26
CY2023Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4860000 shares
CY2022Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
5902000 shares
CY2023Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
94395000 usd
CY2022Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
121015000 usd
CY2023Q2 scwx Contractwith Customer Liability Advanced Billing Percent
ContractwithCustomerLiabilityAdvancedBillingPercent
0.65
CY2023Q2 scwx Contractwith Customer Liability Monthly Or Quarterly Billing Percent
ContractwithCustomerLiabilityMonthlyOrQuarterlyBillingPercent
0.35
CY2023Q1 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
156332000 usd
CY2023Q2 scwx Contractwith Customer Liability Increase From Cash Receipts
ContractwithCustomerLiabilityIncreaseFromCashReceipts
63370000 usd
CY2023Q2 scwx Contract With Customer Liability Revenue Recognized Including Opening Balance
ContractWithCustomerLiabilityRevenueRecognizedIncludingOpeningBalance
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CY2023Q2 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
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CY2022Q1 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
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CY2022Q2 scwx Contractwith Customer Liability Increase From Cash Receipts
ContractwithCustomerLiabilityIncreaseFromCashReceipts
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CY2022Q2 scwx Contract With Customer Liability Revenue Recognized Including Opening Balance
ContractWithCustomerLiabilityRevenueRecognizedIncludingOpeningBalance
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CY2022Q2 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
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CY2023Q2 scwx Revenue Performance Obligation Number Of Elements
RevenuePerformanceObligationNumberOfElements
2 performanceobligationelement
CY2023Q2 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
247317000 usd
CY2023Q2 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
136224000 usd
CY2023Q2 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
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CY2023Q2 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
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CY2023Q2 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
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CY2023Q2 us-gaap Capitalized Contract Cost Impairment Loss
CapitalizedContractCostImpairmentLoss
0 usd
CY2022Q2 us-gaap Capitalized Contract Cost Impairment Loss
CapitalizedContractCostImpairmentLoss
0 usd
CY2023Q2 us-gaap Goodwill
Goodwill
425400000 usd
CY2023Q1 us-gaap Goodwill
Goodwill
425500000 usd
CY2023Q2 us-gaap Number Of Reporting Units
NumberOfReportingUnits
1 reportingunit
CY2023Q2 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
344339000 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
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CY2023Q2 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
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CY2023Q1 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
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CY2023Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
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CY2023Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
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CY2023Q2 us-gaap Intangible Assets Gross Excluding Goodwill
IntangibleAssetsGrossExcludingGoodwill
374457000 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
275043000 usd
CY2023Q2 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
99414000 usd
CY2023Q1 us-gaap Intangible Assets Gross Excluding Goodwill
IntangibleAssetsGrossExcludingGoodwill
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CY2023Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
267039000 usd
CY2023Q1 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
106208000 usd
CY2023Q2 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
8000000 usd
CY2022Q2 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
7800000 usd
CY2023Q2 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
0 usd
CY2022Q2 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
0 usd
CY2023Q2 us-gaap Variable Lease Cost
VariableLeaseCost
21300 usd
CY2022Q2 us-gaap Variable Lease Cost
VariableLeaseCost
115800 usd
CY2023Q2 us-gaap Short Term Lease Cost
ShortTermLeaseCost
0 usd
CY2022Q2 us-gaap Short Term Lease Cost
ShortTermLeaseCost
900 usd
CY2023Q2 us-gaap Operating Lease Payments
OperatingLeasePayments
1300000 usd
CY2022Q2 us-gaap Operating Lease Payments
OperatingLeasePayments
1600000 usd
CY2023Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P3Y4M24D
CY2023Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0539
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
3997000 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
5095000 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
4526000 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
4088000 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
0 usd
CY2023Q2 scwx Lessee Operating Lease Liability To Be Paid After Year Four
LesseeOperatingLeaseLiabilityToBePaidAfterYearFour
0 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
17706000 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
1363000 usd
CY2023Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
16343000 usd
CY2023Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-38098000 usd
CY2022Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-27053000 usd
CY2023Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-7128000 usd
CY2022Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-5455000 usd
CY2023Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.187
CY2022Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.202
CY2023Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.187
CY2022Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.202
CY2023Q2 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost
1400000 usd
CY2022Q2 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost
500000 usd
CY2023Q2 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
5800000 usd
CY2023Q1 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
5800000 usd
CY2023Q2 us-gaap Deferred Tax Assets Liabilities Net
DeferredTaxAssetsLiabilitiesNet
5900000 usd
CY2023Q2 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
4500000 usd
CY2023Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
4500000 usd
CY2023Q2 us-gaap Due To Related Parties Current And Noncurrent
DueToRelatedPartiesCurrentAndNoncurrent
6371000 usd
CY2023Q1 us-gaap Due To Related Parties Current And Noncurrent
DueToRelatedPartiesCurrentAndNoncurrent
1141000 usd
CY2023 us-gaap Restructuring Charges
RestructuringCharges
15500000 usd
CY2023Q1 us-gaap Restructuring Reserve
RestructuringReserve
8900000 usd
CY2023Q2 us-gaap Payments For Restructuring
PaymentsForRestructuring
7400000 usd
CY2023Q2 us-gaap Restructuring Reserve
RestructuringReserve
1500000 usd
CY2022Q1 us-gaap Restructuring Reserve
RestructuringReserve
0 usd
CY2023 us-gaap Restructuring Charges
RestructuringCharges
15471000 usd
CY2023 us-gaap Payments For Restructuring
PaymentsForRestructuring
415000 usd
CY2023 us-gaap Restructuring Reserve Settled Without Cash2
RestructuringReserveSettledWithoutCash2
6112000 usd
CY2023Q1 us-gaap Restructuring Reserve
RestructuringReserve
8944000 usd
CY2023Q2 us-gaap Payments For Restructuring
PaymentsForRestructuring
7413000 usd
CY2023Q2 us-gaap Restructuring Reserve
RestructuringReserve
1531000 usd

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