2020 Q2 Form 10-Q Financial Statement

#000089353820000124 Filed on July 31, 2020

View on sec.gov

Income Statement

Concept 2020 Q2 2019 Q4 2019 Q2
Revenue $169.6M $451.1M $407.2M
YoY Change -58.34% 14.81% -8.28%
Cost Of Revenue $80.45M $127.3M $123.1M
YoY Change -34.62% 4.77% 4.81%
Gross Profit $89.19M $323.8M $284.1M
YoY Change -68.61% 19.26% -12.98%
Gross Profit Margin 52.58% 71.78% 69.78%
Selling, General & Admin $27.20M $37.20M $30.90M
YoY Change -11.97% 22.37% 6.92%
% of Gross Profit 30.5% 11.49% 10.88%
Research & Development $9.800M $17.60M $10.90M
YoY Change -10.09% 23.08% -22.7%
% of Gross Profit 10.99% 5.44% 3.84%
Depreciation & Amortization $180.8M $228.6M $206.4M
YoY Change -12.4% 25.6% 36.06%
% of Gross Profit 202.72% 70.6% 72.64%
Operating Expenses $225.9M $303.0M $247.1M
YoY Change -8.58% 31.28% 26.85%
Operating Profit -$312.7M $20.80M $104.2M
YoY Change -400.17% -48.89% 85.52%
Interest Expense $40.35M -$141.9M $39.63M
YoY Change 1.83% -138.04% -4.87%
% of Operating Profit -682.21% 38.04%
Other Income/Expense, Net -$185.0K -$500.0K -$562.0K
YoY Change -67.08% -600.0% -131.19%
Pretax Income -$125.9M -$129.8M $63.98M
YoY Change -296.84% -133.13% 292.6%
Income Tax -$36.69M -$27.70M $13.59M
% Of Pretax Income 21.24%
Net Earnings -$89.25M -$102.1M $50.39M
YoY Change -277.13% -132.97% 193.0%
Net Earnings / Revenue -52.62% -22.63% 12.38%
Basic Earnings Per Share -$0.79 $0.45
Diluted Earnings Per Share -$0.79 -$904.3K $0.45
COMMON SHARES
Basic Shares Outstanding 113.0M shares 112.9M shares 112.3M shares
Diluted Shares Outstanding 113.0M shares 112.9M shares

Balance Sheet

Concept 2020 Q2 2019 Q4 2019 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $0.00 $0.00 $0.00
YoY Change -100.0% -100.0%
Cash & Equivalents $10.00K $10.00K $12.00K
Short-Term Investments
Other Short-Term Assets $228.3M $67.90M $122.9M
YoY Change 85.76% -63.04% -23.47%
Inventory
Prepaid Expenses
Receivables $127.2M $184.7M $165.8M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $355.5M $252.6M $288.7M
YoY Change 23.11% -41.15% -69.77%
LONG-TERM ASSETS
Property, Plant & Equipment $4.826B $5.954B $5.985B
YoY Change -19.37% 2.1% 4.67%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $51.94M $65.33M $87.70M
YoY Change -40.77% 92.5% 176.87%
Total Long-Term Assets $86.33M $85.95M $117.9M
YoY Change -26.76% -7.01% 87.63%
TOTAL ASSETS
Total Short-Term Assets $355.5M $252.6M $288.7M
Total Long-Term Assets $86.33M $85.95M $117.9M
Total Assets $5.268B $6.292B $6.392B
YoY Change -17.59% -0.95% -5.11%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $257.1M $52.09M $407.9M
YoY Change -36.97% -7.05% -8.6%
Accrued Expenses $12.60M $96.93M $25.80M
YoY Change -51.16% -30.62%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $307.9M $472.0M $503.9M
YoY Change -38.9% 1.29% -51.91%
LONG-TERM LIABILITIES
Long-Term Debt $2.456B $2.610B $2.721B
YoY Change -9.74% 0.54% 5.74%
Other Long-Term Liabilities $55.07M $61.43M $67.14M
YoY Change -17.97% 44.47% 46.26%
Total Long-Term Liabilities $2.679B $3.071B $3.086B
YoY Change -13.2% 3.53% 4.55%
TOTAL LIABILITIES
Total Short-Term Liabilities $307.9M $472.0M $503.9M
Total Long-Term Liabilities $2.679B $3.071B $3.086B
Total Liabilities $2.987B $3.543B $3.590B
YoY Change -16.8% 3.22% -10.24%
SHAREHOLDERS EQUITY
Retained Earnings $465.3M $967.6M $1.033B
YoY Change -54.96% -17.01% 3.55%
Common Stock $1.826B $1.793B $1.781B
YoY Change 2.56% 1.46% 1.45%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.281B $2.749B $2.802B
YoY Change
Total Liabilities & Shareholders Equity $5.268B $6.292B $6.392B
YoY Change -17.59% -0.95% -5.11%

Cashflow Statement

Concept 2020 Q2 2019 Q4 2019 Q2
OPERATING ACTIVITIES
Net Income -$89.25M -$102.1M $50.39M
YoY Change -277.13% -132.97% 193.0%
Depreciation, Depletion And Amortization $180.8M $228.6M $206.4M
YoY Change -12.4% 25.6% 36.06%
Cash From Operating Activities $114.4M $242.0M $259.9M
YoY Change -55.98% 34.89% 51.63%
INVESTING ACTIVITIES
Capital Expenditures -$170.9M -$235.2M -$326.8M
YoY Change -47.71% -15.76% -26.79%
Acquisitions
YoY Change
Other Investing Activities $100.0K $600.0K $6.400M
YoY Change -98.44% -88.68% -97.45%
Cash From Investing Activities -$170.8M -$234.6M -$320.4M
YoY Change -46.69% -14.35% 64.31%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 56.40M -10.90M 66.80M
YoY Change -15.57% 153.49% -1857.89%
NET CHANGE
Cash From Operating Activities 114.4M 242.0M 259.9M
Cash From Investing Activities -170.8M -234.6M -320.4M
Cash From Financing Activities 56.40M -10.90M 66.80M
Net Change In Cash 0.000 -3.500M 6.300M
YoY Change -100.0% -96.46% -122.99%
FREE CASH FLOW
Cash From Operating Activities $114.4M $242.0M $259.9M
Capital Expenditures -$170.9M -$235.2M -$326.8M
Free Cash Flow $285.3M $477.2M $586.7M
YoY Change -51.37% 4.06% -5.03%

Facts In Submission

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CY2019Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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us-gaap Revenue From Contract With Customer Including Assessed Tax
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CurrentFederalTaxExpenseBenefit
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us-gaap Current Federal Tax Expense Benefit
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CurrentFederalTaxExpenseBenefit
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CurrentStateAndLocalTaxExpenseBenefit
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CurrentStateAndLocalTaxExpenseBenefit
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DeferredIncomeTaxExpenseBenefit
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DeferredIncomeTaxExpenseBenefit
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us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
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CY2020Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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IncomeTaxExpenseBenefit
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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us-gaap Interest Costs Capitalized
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us-gaap Interest Costs Capitalized
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us-gaap Defined Benefit Plan Service Cost
DefinedBenefitPlanServiceCost
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us-gaap Defined Benefit Plan Amortization Of Prior Service Cost Credit
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-1.13
CY2020Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.79
CY2019Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.45
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-4.43
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-1.13
CY2020Q2 us-gaap Derivative Fair Value Of Derivative Net
DerivativeFairValueOfDerivativeNet
183700000 USD
CY2019Q4 us-gaap Derivative Fair Value Of Derivative Net
DerivativeFairValueOfDerivativeNet
21500000 USD
CY2020Q2 us-gaap Derivative Fair Value Of Derivative Asset
DerivativeFairValueOfDerivativeAsset
245972000 USD
CY2019Q4 us-gaap Derivative Fair Value Of Derivative Asset
DerivativeFairValueOfDerivativeAsset
75808000 USD
CY2020Q2 us-gaap Derivative Fair Value Of Derivative Liability
DerivativeFairValueOfDerivativeLiability
62278000 USD
CY2019Q4 us-gaap Derivative Fair Value Of Derivative Liability
DerivativeFairValueOfDerivativeLiability
54290000 USD
CY2020Q2 us-gaap Derivative Asset Not Offset Policy Election Deduction
DerivativeAssetNotOffsetPolicyElectionDeduction
62278000 USD
CY2019Q4 us-gaap Derivative Asset Not Offset Policy Election Deduction
DerivativeAssetNotOffsetPolicyElectionDeduction
35075000 USD
CY2020Q2 us-gaap Derivative Liability Not Offset Policy Election Deduction
DerivativeLiabilityNotOffsetPolicyElectionDeduction
62278000 USD
sm Derivativesettlementgainorloss
Derivativesettlementgainorloss
-215965000 USD
CY2019Q4 us-gaap Derivative Liability Not Offset Policy Election Deduction
DerivativeLiabilityNotOffsetPolicyElectionDeduction
35075000 USD
CY2020Q2 us-gaap Derivative Asset Fair Value Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
DerivativeAssetFairValueOffsetAgainstCollateralNetOfNotSubjectToMasterNettingArrangementPolicyElection
183694000 USD
CY2019Q4 us-gaap Derivative Asset Fair Value Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
DerivativeAssetFairValueOffsetAgainstCollateralNetOfNotSubjectToMasterNettingArrangementPolicyElection
40733000 USD
CY2020Q2 us-gaap Derivative Liability Fair Value Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
DerivativeLiabilityFairValueOffsetAgainstCollateralNetOfNotSubjectToMasterNettingArrangementPolicyElection
0 USD
CY2019Q4 us-gaap Derivative Liability Fair Value Offset Against Collateral Net Of Not Subject To Master Netting Arrangement Policy Election
DerivativeLiabilityFairValueOffsetAgainstCollateralNetOfNotSubjectToMasterNettingArrangementPolicyElection
19215000 USD
CY2020Q2 sm Derivativesettlementgainorloss
Derivativesettlementgainorloss
-142528000 USD
CY2019Q2 sm Derivativesettlementgainorloss
Derivativesettlementgainorloss
-4090000 USD
sm Derivativesettlementgainorloss
Derivativesettlementgainorloss
879000 USD
CY2020Q2 us-gaap Gain Loss On Derivative Instruments Net Pretax
GainLossOnDerivativeInstrumentsNetPretax
-167200000 USD
CY2019Q2 us-gaap Gain Loss On Derivative Instruments Net Pretax
GainLossOnDerivativeInstrumentsNetPretax
79655000 USD
us-gaap Gain Loss On Derivative Instruments Net Pretax
GainLossOnDerivativeInstrumentsNetPretax
378140000 USD
us-gaap Gain Loss On Derivative Instruments Net Pretax
GainLossOnDerivativeInstrumentsNetPretax
-97426000 USD
CY2020Q2 sm Percentageof Proved Property Securedfor Credit Facility Borrowing
PercentageofProvedPropertySecuredforCreditFacilityBorrowing
0.85
us-gaap Property Plant And Equipment Impairment
PropertyPlantAndEquipmentImpairment
<div style="margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-style:italic;font-weight:400;line-height:120%;">Oil and Gas Properties and Other Property and Equipment</span></div><div style="text-indent:36pt;margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:120%;">The Company had no assets included in total property and equipment, net, measured at fair value as of June 30, 2020, or December 31, 2019.</span></div><div style="text-indent:36pt;margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-style:italic;font-weight:400;line-height:120%;">Proved oil and gas properties</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:120%;">. Proved oil and gas property costs are evaluated for impairment and reduced to fair value when there is an indication that associated carrying costs may not be recoverable. The Company uses an income valuation technique, which converts future cash flows to a single present value amount, to measure the fair value of proved properties using a discount rate, price and cost forecasts, and certain reserve risk-adjustment factors, as selected by the Company’s management. The Company uses a discount rate that represents a current market-based weighted average cost of capital. The prices for oil and gas are forecast based on NYMEX strip pricing, adjusted for basis differentials, for the first five years, after which a flat terminal price is used for each commodity stream. The prices for NGLs are forecasted using Oil Price Information Service (“OPIS”) Mont Belvieu pricing, for as long as the market is actively trading, after which a flat terminal price is used. Future operating costs are also adjusted as deemed appropriate for these estimates. Certain undeveloped reserve estimates are also risk-adjusted given the risk to related projected cash flows due to performance and exploitation uncertainties.</span></div><div style="text-indent:36pt;margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-style:italic;font-weight:400;line-height:120%;">Other Property and Equipment.</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:120%;"> Other property and equipment costs are evaluated for impairment and reduced to fair value when there is an indication the carrying costs may not be recoverable. To measure the fair value of other property and equipment, the Company uses an income valuation technique or market approach depending on the quality of information available to support management’s assumptions and the circumstances. The valuation includes consideration of the proved and unproved assets supported by the property and equipment, future cash flows associated with the assets, and fixed costs necessary to operate and maintain the assets.</span></div><div style="text-indent:36pt;margin-bottom:12pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial',sans-serif;font-size:9pt;font-weight:400;line-height:120%;">No proved property impairment expense was recorded during the three months ended June 30, 2020. For the six months ended June 30, 2020, the Company recorded impairment expense of $956.7 million related to its South Texas proved oil and gas properties and related support facilities due to the decrease in commodity price forecasts at the end of the first quarter of 2020, specifically decreases in oil and NGL prices. The Company used a discount rate of 11 percent in its calculation of the present value of expected future cash flows based on the prevailing market-based weighed average cost of capital as of March 31, 2020. No proved property impairment expense was recorded during the three or six months ended June 30, 2019.</span></div>
CY2020Q2 us-gaap Property Plant And Equipment Fair Value Disclosure
PropertyPlantAndEquipmentFairValueDisclosure
0 USD
CY2020Q2 sm Impairmentof Proved Oiland Gas Properties
ImpairmentofProvedOilandGasProperties
0 USD
sm Impairmentof Proved Oiland Gas Properties
ImpairmentofProvedOilandGasProperties
956700000 USD
CY2019Q2 sm Impairmentof Proved Oiland Gas Properties
ImpairmentofProvedOilandGasProperties
0 USD
CY2019Q2 sm Impairmentof Proved Oiland Gas Properties
ImpairmentofProvedOilandGasProperties
0 USD
CY2020Q2 sm Impairmentof Proved Oiland Gas Properties
ImpairmentofProvedOilandGasProperties
0 USD
CY2019Q2 sm Impairmentof Proved Oiland Gas Properties
ImpairmentofProvedOilandGasProperties
0 USD
CY2019Q2 sm Impairmentof Proved Oiland Gas Properties
ImpairmentofProvedOilandGasProperties
0 USD
sm Impairmentof Proved Oiland Gas Properties
ImpairmentofProvedOilandGasProperties
956700000 USD
sm Impairmentof Proved Oiland Gas Properties
ImpairmentofProvedOilandGasProperties
0 USD
CY2020Q2 sm Impairmentof Unproved Oiland Gas Properties
ImpairmentofUnprovedOilandGasProperties
8800000 USD
CY2019Q2 sm Impairmentof Unproved Oiland Gas Properties
ImpairmentofUnprovedOilandGasProperties
12400000 USD
CY2020Q2 us-gaap Lease Cost
LeaseCost
62200000 USD
sm Impairmentof Unproved Oiland Gas Properties
ImpairmentofUnprovedOilandGasProperties
41900000 USD
sm Impairmentof Unproved Oiland Gas Properties
ImpairmentofUnprovedOilandGasProperties
18800000 USD
CY2020Q2 us-gaap Impairment Of Oil And Gas Properties
ImpairmentOfOilAndGasProperties
8800000 USD
CY2019Q2 us-gaap Impairment Of Oil And Gas Properties
ImpairmentOfOilAndGasProperties
12400000 USD
us-gaap Impairment Of Oil And Gas Properties
ImpairmentOfOilAndGasProperties
998500000 USD
us-gaap Impairment Of Oil And Gas Properties
ImpairmentOfOilAndGasProperties
18800000 USD
CY2020Q2 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights
5900000 shares
CY2020Q2 us-gaap Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1
ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1
0.01
CY2020Q2 sm Warrant Triggering Date Amount
WarrantTriggeringDateAmount
1000000000.0 USD
us-gaap Adjustments To Additional Paid In Capital Warrant Issued
AdjustmentsToAdditionalPaidInCapitalWarrantIssued
21500000 USD
CY2020Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P3Y
CY2020Q2 us-gaap Lessee Operating Lease Renewal Term
LesseeOperatingLeaseRenewalTerm
P10Y
CY2019Q2 us-gaap Lease Cost
LeaseCost
139800000 USD
us-gaap Lease Cost
LeaseCost
135000000.0 USD
us-gaap Lease Cost
LeaseCost
315100000 USD
CY2020Q2 us-gaap Operating Lease Cost
OperatingLeaseCost
4453000 USD
CY2019Q2 us-gaap Operating Lease Cost
OperatingLeaseCost
11479000 USD
us-gaap Operating Lease Cost
OperatingLeaseCost
11287000 USD
us-gaap Operating Lease Cost
OperatingLeaseCost
20458000 USD
CY2020Q2 us-gaap Short Term Lease Cost
ShortTermLeaseCost
36630000 USD
CY2019Q2 us-gaap Short Term Lease Cost
ShortTermLeaseCost
102085000 USD
us-gaap Short Term Lease Cost
ShortTermLeaseCost
80202000 USD
us-gaap Short Term Lease Cost
ShortTermLeaseCost
237002000 USD
CY2020Q2 us-gaap Variable Lease Cost
VariableLeaseCost
21136000 USD
CY2019Q2 us-gaap Variable Lease Cost
VariableLeaseCost
26198000 USD
us-gaap Variable Lease Cost
VariableLeaseCost
43470000 USD
us-gaap Variable Lease Cost
VariableLeaseCost
57606000 USD
CY2020Q2 us-gaap Lease Cost
LeaseCost
62219000 USD
CY2019Q2 us-gaap Lease Cost
LeaseCost
139762000 USD
us-gaap Lease Cost
LeaseCost
134959000 USD
us-gaap Lease Cost
LeaseCost
315066000 USD
CY2020Q2 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
745000 USD
CY2019Q2 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
10500000 USD
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
22700000 USD
us-gaap Operating Lease Payments
OperatingLeasePayments
6065000 USD
us-gaap Operating Lease Payments
OperatingLeasePayments
5966000 USD
sm Operating Lease Payments Investing Activities
OperatingLeasePaymentsInvestingActivities
6188000 USD
sm Operating Lease Payments Investing Activities
OperatingLeasePaymentsInvestingActivities
14808000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
7161000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
12938000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
5948000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
3602000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
2081000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
1640000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
33370000 USD
CY2020Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
3340000 USD
CY2020Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
30030000 USD
CY2020Q2 us-gaap Lessee Operating Lease Discount Rate
LesseeOperatingLeaseDiscountRate
0.069
CY2020Q2 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
27778000 USD
CY2019Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
39717000 USD
CY2020Q2 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
12597000 USD
CY2019Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
19189000 USD
CY2020Q2 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
17433000 USD
CY2019Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
23137000 USD

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