2018 Q1 Form 10-Q Financial Statement

#000010917718000023 Filed on May 04, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q3 2017 Q1
Revenue $882.6M $987.4M $869.0M
YoY Change 1.57% 35.32% -31.43%
Cost Of Revenue $494.8M $1.030B $445.6M
YoY Change 11.04% 35.22% -40.33%
Gross Profit $306.0M $359.2M $321.5M
YoY Change -4.82% 17.73% 0.31%
Gross Profit Margin 34.67% 36.38% 37.0%
Selling, General & Admin $10.70M $350.8M $216.5M
YoY Change -95.06% 0.14% -35.47%
% of Gross Profit 3.5% 97.66% 67.34%
Research & Development $11.50M $23.70M
YoY Change
% of Gross Profit 3.76% 6.6%
Depreciation & Amortization $30.10M $53.00M $16.00M
YoY Change 88.13% -54.74% -64.29%
% of Gross Profit 9.84% 14.76% 4.98%
Operating Expenses $274.7M $374.5M $216.5M
YoY Change 26.88% 6.91% -35.47%
Operating Profit $31.30M -$15.30M $95.30M
YoY Change -67.16% -66.15% -33.12%
Interest Expense $67.60M -$75.90M $77.70M
YoY Change -13.0% -31.5% -17.69%
% of Operating Profit 215.97% 81.53%
Other Income/Expense, Net $200.0K -$5.400M -$1.400M
YoY Change -114.29% -590.91%
Pretax Income -$36.40M -$31.00M $16.20M
YoY Change -324.69% -211.51% -66.32%
Income Tax -$1.700M -$60.90M $24.00M
% Of Pretax Income 148.15%
Net Earnings -$28.90M -$26.30M -$82.00M
YoY Change -64.76% 260.27% 231.98%
Net Earnings / Revenue -3.27% -2.66% -9.44%
Basic Earnings Per Share -$0.89 -$0.81 -$2.54
Diluted Earnings Per Share -$0.89 -$0.81 -$2.54
COMMON SHARES
Basic Shares Outstanding 32.50M 200.5M shares 200.0M shares
Diluted Shares Outstanding 32.50M 200.0M shares

Balance Sheet

Concept 2018 Q1 2017 Q3 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $759.0M $270.0M $321.0M
YoY Change 136.45% -41.94% -31.12%
Cash & Equivalents $758.8M $270.1M $294.6M
Short-Term Investments $0.00
Other Short-Term Assets $2.038B $28.98B $8.000M
YoY Change 25375.0% 362200.0% 60.0%
Inventory $610.5M $587.8M $836.3M
Prepaid Expenses
Receivables $338.0M $365.4M $576.0M
Other Receivables $62.20M $28.90M $0.00
Total Short-Term Assets $3.805B $32.14B $1.741B
YoY Change 118.57% 1662.24% -15.16%
LONG-TERM ASSETS
Property, Plant & Equipment $504.5M $499.0M $661.7M
YoY Change -23.76% 35.82% -0.5%
Goodwill $2.280B $1.462B $2.474B
YoY Change -7.83% 10.97% -0.81%
Intangibles $1.590B $1.720B $2.313B
YoY Change -31.26% 12.03% -4.93%
Long-Term Investments $11.00M
YoY Change -92.09%
Other Assets $61.00M $1.420B $29.50B
YoY Change -99.79% -94.63% 6.6%
Total Long-Term Assets $4.435B $3.725B $34.96B
YoY Change -87.31% -88.27% 4.65%
TOTAL ASSETS
Total Short-Term Assets $3.805B $32.14B $1.741B
Total Long-Term Assets $4.435B $3.725B $34.96B
Total Assets $8.240B $35.86B $36.70B
YoY Change -77.54% 6.8% 3.5%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $360.0M $558.3M $847.0M
YoY Change -57.5% 76.68% 0.95%
Accrued Expenses $104.0M $134.0M
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $70.30M $161.4M $0.00
YoY Change -32.55%
Long-Term Debt Due $70.00M $169.8M $35.80M
YoY Change 95.53% 2.29% -177.83%
Total Short-Term Liabilities $1.223B $27.91B $2.577B
YoY Change -52.56% 2148.36% -3.56%
LONG-TERM LIABILITIES
Long-Term Debt $5.248B $5.523B $5.588B
YoY Change -6.08% 5.67% -9.67%
Other Long-Term Liabilities $140.0M $71.20M $26.14B
YoY Change -99.46% 8.25%
Total Long-Term Liabilities $5.248B $5.594B $5.588B
YoY Change -6.08% 7.03% -9.67%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.223B $27.91B $2.577B
Total Long-Term Liabilities $5.248B $5.594B $5.588B
Total Liabilities $6.897B $33.92B $34.93B
YoY Change -80.26% 6.78% 2.89%
SHAREHOLDERS EQUITY
Retained Earnings -$455.6M -$925.9M -$901.8M
YoY Change -49.48% -10.27% 0.0%
Common Stock $1.273B $1.375B $1.413B
YoY Change -9.92% -5.12% -1.88%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $691.6M $758.0M $605.0M
YoY Change
Total Liabilities & Shareholders Equity $8.240B $35.86B $36.70B
YoY Change -77.54% 6.8% 3.5%

Cashflow Statement

Concept 2018 Q1 2017 Q3 2017 Q1
OPERATING ACTIVITIES
Net Income -$28.90M -$26.30M -$82.00M
YoY Change -64.76% 260.27% 231.98%
Depreciation, Depletion And Amortization $30.10M $53.00M $16.00M
YoY Change 88.13% -54.74% -64.29%
Cash From Operating Activities -$124.4M $516.9M -$217.6M
YoY Change -42.83% 34.47% -249.86%
INVESTING ACTIVITIES
Capital Expenditures $17.80M $30.70M $16.00M
YoY Change 11.25% -14.25% -25.23%
Acquisitions
YoY Change
Other Investing Activities $24.50M -$241.5M -$182.0M
YoY Change -113.46% -6.03% -48.5%
Cash From Investing Activities $6.700M -$272.2M -$198.0M
YoY Change -103.38% -7.04% -47.17%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -774.5M -230.1M 394.4M
YoY Change -296.37% 208.45% 234.8%
NET CHANGE
Cash From Operating Activities -124.4M 516.9M -217.6M
Cash From Investing Activities 6.700M -272.2M -198.0M
Cash From Financing Activities -774.5M -230.1M 394.4M
Net Change In Cash -892.2M 14.60M -21.20M
YoY Change 4108.49% -14.12% -81.04%
FREE CASH FLOW
Cash From Operating Activities -$124.4M $516.9M -$217.6M
Capital Expenditures $17.80M $30.70M $16.00M
Free Cash Flow -$142.2M $486.2M -$233.6M
YoY Change -39.13% 39.47% -288.69%

Facts In Submission

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us-gaap Discontinued Operation Provision For Loss Gain On Disposal Net Of Tax
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CY2017Q3 us-gaap Goodwill
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us-gaap Disposal Group Not Discontinued Operation Loss Gain On Write Down
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us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Diluted
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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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us-gaap Effective Income Tax Rate Continuing Operations
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us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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314800000 USD
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57500000 USD
us-gaap Finite Lived Intangible Assets Foreign Currency Translation Gain Loss
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6900000 USD
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us-gaap Income Loss From Continuing Operations
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us-gaap Income Loss From Continuing Operations
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16200000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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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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40800000 USD
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us-gaap Income Loss From Continuing Operations Per Basic Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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700000 USD
us-gaap Income Loss From Discontinued Operations Net Of Tax
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CY2017Q1 us-gaap Income Tax Expense Benefit
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CY2018Q1 us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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10400000 USD
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0 USD
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204600000 USD
us-gaap Increase Decrease In Operating Capital
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208800000 USD
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1029000000 USD
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us-gaap Interest Expense
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156400000 USD
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67600000 USD
us-gaap Interest Expense
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143100000 USD
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365100000 USD
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CY2018Q1 us-gaap Inventory Net
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95700000 USD
CY2018Q1 us-gaap Inventory Raw Materials Net Of Reserves
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us-gaap Inventory Recall Expense
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0 USD
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35500000 USD
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CY2017Q3 us-gaap Liabilities Of Disposal Group Including Discontinued Operation Current
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156100000 USD
CY2018Q1 us-gaap Liabilities Of Disposal Group Including Discontinued Operation Noncurrent
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
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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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us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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us-gaap Net Income Loss
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us-gaap Operating Income Loss
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CY2018Q1 us-gaap Operating Income Loss
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us-gaap Operating Income Loss
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us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Net Of Tax
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3900000 USD
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us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
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us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
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us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Before Tax
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CY2018Q1 us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Before Tax
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0 USD
us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Before Tax
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19700000 USD
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Before Tax
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CY2017Q1 us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Tax
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Tax
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CY2017Q1 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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CY2018Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax
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CY2017Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Noncontrolling Interest
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Noncontrolling Interest
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Noncontrolling Interest
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7600000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Reclassification Adjustments And Tax
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800000 USD
us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Reclassification Adjustments And Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Reclassification Adjustments And Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Tax
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CY2018Q1 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Tax
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CY2017Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
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1800000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
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3900000 USD
CY2018Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
0 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
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6300000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Before Tax
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1300000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Before Tax
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2600000 USD
CY2018Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Before Tax
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800000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Before Tax
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1600000 USD
CY2017Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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314500000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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CY2018Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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0 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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26000000 USD
CY2017Q3 us-gaap Other Liabilities
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26200000 USD
CY2018Q1 us-gaap Other Liabilities
OtherLiabilities
101100000 USD
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us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
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CY2018Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
200000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
1200000 USD
CY2017Q3 us-gaap Other Receivables Net Current
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19700000 USD
CY2018Q1 us-gaap Other Receivables Net Current
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62200000 USD
us-gaap Payments For Proceeds From Other Investing Activities
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1400000 USD
us-gaap Payments Of Debt Issuance Costs
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3800000 USD
us-gaap Payments Of Debt Issuance Costs
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300000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
37400000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
22700000 USD
us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
37100000 USD
us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
34200000 USD
CY2017Q3 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent
38600000 USD
CY2018Q1 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent
38800000 USD
CY2015Q3 us-gaap Preferred Stock Liquidation Preference Value
PreferredStockLiquidationPreferenceValue
617100000 USD
CY2016Q3 us-gaap Preferred Stock Liquidation Preference Value
PreferredStockLiquidationPreferenceValue
0 USD
CY2016Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2016Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2015Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
394300 shares
CY2016Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2017Q3 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
54800000 USD
CY2018Q1 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
60200000 USD
us-gaap Proceeds From Issuance Of Secured Debt
ProceedsFromIssuanceOfSecuredDebt
261500000 USD
us-gaap Proceeds From Issuance Of Secured Debt
ProceedsFromIssuanceOfSecuredDebt
573200000 USD
us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
5500000 USD
us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
10000000 USD
us-gaap Proceeds From Sale Maturity And Collections Of Investments
ProceedsFromSaleMaturityAndCollectionsOfInvestments
900000 USD
us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
200000 USD
us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
1520200000 USD
CY2018Q1 us-gaap Product Liability Accrual Period Expense
ProductLiabilityAccrualPeriodExpense
700000 USD
us-gaap Product Liability Accrual Period Expense
ProductLiabilityAccrualPeriodExpense
1100000 USD
CY2017Q1 us-gaap Profit Loss
ProfitLoss
-51400000 USD
us-gaap Profit Loss
ProfitLoss
209400000 USD
CY2018Q1 us-gaap Profit Loss
ProfitLoss
-36600000 USD
us-gaap Profit Loss
ProfitLoss
542300000 USD
CY2017Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
778100000 USD
CY2018Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
812000000 USD
CY2017Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
503900000 USD
CY2018Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
504500000 USD
us-gaap Provision For Loan And Lease Losses
ProvisionForLoanAndLeaseLosses
1900000 USD
CY2017Q3 us-gaap Receivables Net Current
ReceivablesNetCurrent
266000000 USD
CY2018Q1 us-gaap Receivables Net Current
ReceivablesNetCurrent
337600000 USD
us-gaap Repayments Of Other Debt
RepaymentsOfOtherDebt
165200000 USD
us-gaap Repayments Of Other Debt
RepaymentsOfOtherDebt
994400000 USD
CY2018Q1 us-gaap Restructuring And Related Cost Cost Incurred To Date1
RestructuringAndRelatedCostCostIncurredToDate1
109100000 USD
CY2018Q1 us-gaap Restructuring And Related Cost Expected Cost Remaining1
RestructuringAndRelatedCostExpectedCostRemaining1
19200000 USD
CY2017Q1 us-gaap Restructuring And Related Cost Incurred Cost
RestructuringAndRelatedCostIncurredCost
8000000 USD
us-gaap Restructuring And Related Cost Incurred Cost
RestructuringAndRelatedCostIncurredCost
10200000 USD
CY2018Q1 us-gaap Restructuring And Related Cost Incurred Cost
RestructuringAndRelatedCostIncurredCost
23200000 USD
us-gaap Restructuring And Related Cost Incurred Cost
RestructuringAndRelatedCostIncurredCost
43600000 USD
CY2017Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-925900000 USD
CY2018Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-455600000 USD
CY2017Q1 us-gaap Revenues
Revenues
757400000 USD
us-gaap Revenues
Revenues
1359700000 USD
CY2018Q1 us-gaap Revenues
Revenues
766100000 USD
us-gaap Revenues
Revenues
1412600000 USD
CY2017Q1 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
756400000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
1358700000 USD
CY2018Q1 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
766100000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
1412600000 USD
CY2017Q1 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
216500000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
415400000 USD
CY2018Q1 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
242400000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
458500000 USD
CY2017Q1 us-gaap Share Based Compensation
ShareBasedCompensation
14000000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
23500000 USD
CY2018Q1 us-gaap Share Based Compensation
ShareBasedCompensation
3100000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
1100000 USD
CY2017Q3 us-gaap Short Term Borrowings
ShortTermBorrowings
161400000 USD
CY2018Q1 us-gaap Short Term Borrowings
ShortTermBorrowings
70300000 USD
CY2017Q3 us-gaap Stockholders Equity
StockholdersEquity
758000000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
691600000 USD
CY2017Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1946900000 USD
CY2018Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1343700000 USD
CY2017Q1 us-gaap Unrealized Gain Loss On Investments
UnrealizedGainLossOnInvestments
138000000 USD
us-gaap Unrealized Gain Loss On Investments
UnrealizedGainLossOnInvestments
-151100000 USD
CY2018Q1 us-gaap Unrealized Gain Loss On Investments
UnrealizedGainLossOnInvestments
0 USD
us-gaap Unrealized Gain Loss On Investments
UnrealizedGainLossOnInvestments
12100000 USD
CY2017Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
199981000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
199579000 shares
CY2018Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
201646000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
201105000 shares
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates and Assumptions</font></div><div style="line-height:120%;padding-bottom:4px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the Company&#8217;s </font><font style="font-family:inherit;font-size:10pt;">Condensed Consolidated Financial Statements</font><font style="font-family:inherit;font-size:10pt;"> in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.&#160;Actual results could differ from those estimates and assumptions used.</font></div></div>

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