2016 Q1 Form 10-K Financial Statement

#000119312516484381 Filed on February 29, 2016

View on sec.gov

Income Statement

Concept 2016 Q1 2014 Q4 2014 Q3
Revenue $323.2M $478.0M
YoY Change 13.3% 10.3%
Cost Of Revenue $163.0M $216.9M
YoY Change 29.95% 21.11%
Gross Profit $160.2M $261.1M
YoY Change 0.23% 2.68%
Gross Profit Margin 49.57% 54.63%
Selling, General & Admin $91.16M $73.06M
YoY Change 31.12% 0.2%
% of Gross Profit 56.89% 27.98%
Research & Development $79.19M $71.95M
YoY Change 22.56% 4.4%
% of Gross Profit 49.42% 27.56%
Depreciation & Amortization $37.70M $38.10M
YoY Change -4.07% 1.06%
% of Gross Profit 23.53% 14.59%
Operating Expenses $286.4M $162.9M
YoY Change 87.16% 1.3%
Operating Profit -$126.2M $98.24M
YoY Change -1945.41% 5.06%
Interest Expense $214.0K $144.0K
YoY Change -96.84% -97.78%
% of Operating Profit 0.15%
Other Income/Expense, Net -$463.0K $654.0K
YoY Change -101.36% -257.97%
Pretax Income -$124.8M $100.7M
YoY Change -452.19% 14.98%
Income Tax -$21.00M $17.72M
% Of Pretax Income 17.6%
Net Earnings -$103.8M $82.95M
YoY Change -564.62% 19.42%
Net Earnings / Revenue -32.12% 17.35%
Basic Earnings Per Share -$0.48 $0.40
Diluted Earnings Per Share -$0.48 $0.38
COMMON SHARES
Basic Shares Outstanding 204.3M shares 216.5M shares 207.4M shares
Diluted Shares Outstanding 218.3M shares

Balance Sheet

Concept 2016 Q1 2014 Q4 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $828.0M $806.5M
YoY Change -10.82% -15.77%
Cash & Equivalents $294.3M $211.7M
Short-Term Investments $533.8M $594.8M
Other Short-Term Assets $6.582M $7.304M
YoY Change -10.13% -38.48%
Inventory $105.1M $108.4M
Prepaid Expenses $95.82M $88.73M
Receivables $151.0M $321.3M
Other Receivables $0.00 $0.00
Total Short-Term Assets $1.244B $1.401B
YoY Change -13.64% -6.25%
LONG-TERM ASSETS
Property, Plant & Equipment $329.0M $335.8M
YoY Change 19.55% 21.92%
Goodwill $273.4M $361.8M
YoY Change -24.42% 3.59%
Intangibles $190.6M $197.5M
YoY Change -24.45% -25.68%
Long-Term Investments $470.8M $374.8M
YoY Change 73.66% 85.45%
Other Assets $10.42M $9.853M
YoY Change -28.59% -50.14%
Total Long-Term Assets $1.295B $1.294B
YoY Change 8.84% 15.82%
TOTAL ASSETS
Total Short-Term Assets $1.244B $1.401B
Total Long-Term Assets $1.295B $1.294B
Total Assets $2.539B $2.695B
YoY Change -3.47% 3.19%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $47.76M $60.31M
YoY Change -24.03% -10.96%
Accrued Expenses $151.2M $188.9M
YoY Change -5.08% 34.16%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change -100.0%
Total Short-Term Liabilities $291.6M $329.8M
YoY Change -38.7% -32.38%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $144.7M $139.4M
YoY Change 12.69% 3.41%
Total Long-Term Liabilities $144.7M $139.4M
YoY Change 12.69% 3.41%
TOTAL LIABILITIES
Total Short-Term Liabilities $291.6M $329.8M
Total Long-Term Liabilities $144.7M $139.4M
Total Liabilities $459.5M $505.1M
YoY Change -28.72% -23.49%
SHAREHOLDERS EQUITY
Retained Earnings $610.1M $726.9M
YoY Change 7.74% 33.65%
Common Stock $1.464B $27.06M
YoY Change 6009.54% 13.1%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.079B $2.190B
YoY Change
Total Liabilities & Shareholders Equity $2.539B $2.695B
YoY Change -3.47% 3.19%

Cashflow Statement

Concept 2016 Q1 2014 Q4 2014 Q3
OPERATING ACTIVITIES
Net Income -$103.8M $82.95M
YoY Change -564.62% 19.42%
Depreciation, Depletion And Amortization $37.70M $38.10M
YoY Change -4.07% 1.06%
Cash From Operating Activities $175.0M $133.7M
YoY Change 295.03% -13.96%
INVESTING ACTIVITIES
Capital Expenditures -$22.60M -$55.00M
YoY Change -5.04% 71.34%
Acquisitions
YoY Change
Other Investing Activities -$55.90M -$119.3M
YoY Change -77.9% -155.33%
Cash From Investing Activities -$78.50M -$174.3M
YoY Change -71.63% -194.99%
FINANCING ACTIVITIES
Cash Dividend Paid $12.80M
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -14.00M -2.300M
YoY Change -1266.67% -136.51%
NET CHANGE
Cash From Operating Activities 175.0M 133.7M
Cash From Investing Activities -78.50M -174.3M
Cash From Financing Activities -14.00M -2.300M
Net Change In Cash 82.50M -42.90M
YoY Change -135.68% -112.43%
FREE CASH FLOW
Cash From Operating Activities $175.0M $133.7M
Capital Expenditures -$22.60M -$55.00M
Free Cash Flow $197.6M $188.7M
YoY Change 190.16% 0.64%

Facts In Submission

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CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
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CY2014 us-gaap Effective Income Tax Rate Reconciliation Tax Credits Research
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CY2014 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2014 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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CY2014 us-gaap Increase Decrease In Inventories
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CY2014 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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CY2014 us-gaap Income Taxes Paid Net
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CY2014 us-gaap Revenues
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CY2014 us-gaap Increase Decrease In Accounts Receivable
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CY2014 us-gaap Investment Income Interest
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CY2014 us-gaap Payments Of Dividends
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CY2014 us-gaap Foreign Currency Transaction Gain Loss Realized
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CY2014 us-gaap Sales Revenue Goods Net
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CY2014 us-gaap Extended Product Warranty Accrual Warranties Issued
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CY2014 us-gaap Income Tax Reconciliation Tax Holidays
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CY2014 us-gaap Gain Loss On Foreign Currency Derivative Instruments Not Designated As Hedging Instruments
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CY2014 us-gaap Interest Paid
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CY2014 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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645000
CY2014 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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3781000
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2417000
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CY2014 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax
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2400000
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CY2014 us-gaap Adjustments To Additional Paid In Capital Tax Effect From Share Based Compensation
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CY2014 us-gaap Goodwill Impairment Loss
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CY2014 us-gaap Current State And Local Tax Expense Benefit
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CY2014 us-gaap Depreciation
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1433000
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1449000
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CY2014 us-gaap Advertising Expense
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1728000
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 18px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>C.&#xA0;&#xA0;&#xA0;&#xA0;RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">In November 2015, the FASB issued Accounting Standards Update (&#x201C;ASU&#x201D;) 2015-17, <i>&#x201C;Balance Sheet Classification of Deferred Taxes</i>.<i>&#x201D;</i> ASU 2015-17 is aimed at reducing complexity in accounting standards. Currently, GAAP requires the deferred taxes for each jurisdiction to be presented as a net current asset or liability and net noncurrent asset or liability. This requires a jurisdiction-by-jurisdiction analysis based on the classification of the assets and liabilities to which the underlying temporary differences relate, or, in the case of loss or credit carryforwards, based on the period in which the attribute is expected to be realized. Any valuation allowance is then required to be allocated on a pro rata basis, by jurisdiction, between current and noncurrent deferred tax assets. To simplify presentation, the new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction, companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. The new guidance is effective in fiscal years beginning after December&#xA0;15, 2016, including interim periods within those years. Early adoption is permitted as of the beginning of an interim or annual reporting period. The guidance may be applied either prospectively, for all deferred tax assets and liabilities, or retrospectively by reclassifying the comparative balance sheet. Teradyne will early adopt this ASU prospectively in January 2016. This ASU is expected to have no impact on Teradyne&#x2019;s results of operations.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">In September 2015, the FASB issued ASU 2015-16, <i>&#x201C;Business Combinations (Topic 805)&#x2014;Simplifying the Accounting for Measurement-Period Adjustments</i>.<i>&#x201D;</i> ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are identified, including the cumulative effect of the change in provisional amount as if the accounting had been completed at the acquisition date. ASU 2015-16 is effective for reporting periods beginning after December&#xA0;15, 2015 and is applied prospectively. Early adoption is permitted. Teradyne early adopted this ASU in 2015. Adoption of this ASU did not have a material impact on Teradyne&#x2019;s financial position and results of operations.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">On April&#xA0;7, 2015, the FASB issued ASU 2015-03, <i>&#x201C;Simplifying the Presentation of Debt Issuance Costs,&#x201D;</i> which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation for debt discount. ASU 2015-03 does not specifically address requirements for the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. On August&#xA0;8, 2015, the FASB issued ASU 2015-15, <i>&#x201C;Interest&#x2014;Imputation of Interest (Subtopic 835-30)&#x201D;</i> clarifying that debt issuance costs related to line-of-credit arrangements could be presented as an asset and amortized over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. For Teradyne, the standard is effective for financial statements issued for fiscal years beginning after December&#xA0;15, 2015, and interim periods within those years. This ASU is expected to have no impact on Teradyne&#x2019;s financial position and results of operations.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">In May 2014, the FASB issued ASU 2014-09, <i>&#x201C;Revenue from Contracts with Customers (Topic 606),&#x201D;</i> which will replace numerous requirements in U.S. GAAP, including industry-specific requirements, and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to show the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled to in exchange for those goods or services. In August 2015, FASB issued ASU 2015-14, which deferred the effective date of the new revenue standard by one year. For Teradyne, the standard will be effective in the first quarter of 2018. Early adoption is permitted but not before the original effective date (that is, annual periods beginning after December&#xA0;15, 2016). The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. Teradyne has not yet selected a transition method. Teradyne is currently evaluating the impact of this ASU on its financial position and results of operations.</font></p> </div>
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>A.&#xA0;&#xA0;&#xA0;&#xA0;THE COMPANY</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">Teradyne, Inc. (&#x201C;Teradyne&#x201D;) is a leading global supplier of automation equipment for test and industrial applications. Teradyne designs, develops, manufactures and sells automatic test systems used to test semiconductors, wireless products, data storage and complex electronics systems in the consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne&#x2019;s industrial automation products include collaborative robots used by global manufacturing and light industrial customers to improve quality, increase manufacturing efficiency and decrease manufacturing costs. Teradyne&#x2019;s automatic test equipment and industrial automation products and services include:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td width="4%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">semiconductor test (&#x201C;Semiconductor Test&#x201D;) systems;</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td width="4%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">defense/aerospace (&#x201C;Defense/Aerospace&#x201D;) test instrumentation and systems, storage test (&#x201C;Storage Test&#x201D;) systems, and circuit-board test and inspection (&#x201C;Production Board Test&#x201D;) systems (collectively these products represent &#x201C;System Test&#x201D;);</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td width="4%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">wireless test (&#x201C;Wireless Test&#x201D;) systems; and</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td width="4%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">industrial automation (&#x201C;Industrial Automation&#x201D;) products.</font></p> </td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">On June&#xA0;11, 2015, Teradyne acquired Universal Robots A/S (&#x201C;Universal Robots&#x201D;) for approximately $284&#xA0;million of cash plus up to an additional $65 million of cash if certain performance targets are met extending through 2018. Universal Robots is the leading supplier of collaborative robots which are low-cost, easy-to-deploy and simple-to-program robots that work side by side with production workers. Universal Robots is a separate operating and reportable segment, Industrial Automation.</font></p> </div>
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CY2014Q4 us-gaap Restructuring Settlement And Impairment Provisions
RestructuringSettlementAndImpairmentProvisions
1198000
CY2014Q4 us-gaap Cost Of Revenue
CostOfRevenue
163010000
CY2014Q4 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-21002000
CY2014Q4 us-gaap Research And Development Expense Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseExcludingAcquiredInProcessCost
79188000
CY2014Q4 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
91157000
CY2014Q4 us-gaap Cost Of Goods Sold
CostOfGoodsSold
131337000
CY2014Q4 us-gaap Cost Of Services
CostOfServices
31673000
CY2015Q2 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
0.06
CY2015Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.15
CY2015Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.15
CY2015Q2 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
70076000
CY2015Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
5660000
CY2015Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
35124000
CY2015Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
42438000
CY2015Q2 us-gaap Revenues
Revenues
342401000
CY2015Q2 us-gaap Investment Income Interest
InvestmentIncomeInterest
1816000
CY2015Q2 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
272325000
CY2015Q2 us-gaap Net Income Loss
NetIncomeLoss
32787000
CY2015Q2 us-gaap Gross Profit
GrossProfit
192423000
CY2015Q2 us-gaap Interest Expense
InterestExpense
162000
CY2015Q2 us-gaap Operating Expenses
OperatingExpenses
157299000
CY2015Q2 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
13808000
CY2015Q2 us-gaap Cost Of Revenue
CostOfRevenue
149978000
CY2015Q2 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
9651000
CY2015Q2 us-gaap Research And Development Expense Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseExcludingAcquiredInProcessCost
71450000
CY2015Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
72041000
CY2015Q2 us-gaap Cost Of Goods Sold
CostOfGoodsSold
118996000
CY2015Q2 us-gaap Cost Of Services
CostOfServices
30982000

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