2015 Q3 Form 10-Q Financial Statement

#000102116215000035 Filed on October 30, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2014 Q3
Revenue $188.3M $191.8M
YoY Change -1.85% 26.93%
Cost Of Revenue $730.8M $771.4M
YoY Change -5.26% 0.02%
Gross Profit $197.7M $197.6M
YoY Change 0.09% 15.44%
Gross Profit Margin 105.01% 102.98%
Selling, General & Admin $71.32M $68.77M
YoY Change 3.71% 8.16%
% of Gross Profit 36.07% 34.81%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $42.58M $39.01M
YoY Change 9.13% 2.01%
% of Gross Profit 21.53% 19.75%
Operating Expenses $844.7M $879.4M
YoY Change -3.95% 0.58%
Operating Profit $110.0M $114.7M
YoY Change -4.05% 23.37%
Interest Expense -$15.60M -$15.40M
YoY Change 1.3% -24.14%
% of Operating Profit -14.18% -13.43%
Other Income/Expense, Net
YoY Change
Pretax Income $94.42M $99.31M
YoY Change -4.93% 36.7%
Income Tax $32.80M $31.87M
% Of Pretax Income 34.74% 32.09%
Net Earnings $61.61M $67.45M
YoY Change -8.65% 36.21%
Net Earnings / Revenue 32.72% 35.16%
Basic Earnings Per Share $1.25 $1.32
Diluted Earnings Per Share $1.25 $1.32
COMMON SHARES
Basic Shares Outstanding 49.22M shares 51.02M shares
Diluted Shares Outstanding 49.31M shares 51.17M shares

Balance Sheet

Concept 2015 Q3 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $39.10M $33.40M
YoY Change 17.07% 49.11%
Cash & Equivalents $39.09M $33.37M
Short-Term Investments
Other Short-Term Assets $155.0M $115.3M
YoY Change 34.43% 5.39%
Inventory $1.556B $1.235B
Prepaid Expenses
Receivables $540.9M $519.0M
Other Receivables $0.00 $0.00
Total Short-Term Assets $2.291B $1.902B
YoY Change 20.45% 14.45%
LONG-TERM ASSETS
Property, Plant & Equipment $914.3M $963.6M
YoY Change -5.12% 7.23%
Goodwill $2.023B $1.932B
YoY Change 4.67% 11.05%
Intangibles $934.1M $967.9M
YoY Change -3.49% 2.64%
Long-Term Investments
YoY Change
Other Assets $109.9M $49.28M
YoY Change 123.07% -27.81%
Total Long-Term Assets $3.981B $3.913B
YoY Change 1.74% 7.21%
TOTAL ASSETS
Total Short-Term Assets $2.291B $1.902B
Total Long-Term Assets $3.981B $3.913B
Total Assets $6.273B $5.816B
YoY Change 7.86% 9.47%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $399.9M $342.0M
YoY Change 16.94% 17.86%
Accrued Expenses $404.3M $285.2M
YoY Change 41.74% 7.81%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $43.00M $39.60M
YoY Change 8.59% -19.02%
Total Short-Term Liabilities $847.2M $666.8M
YoY Change 27.06% 10.47%
LONG-TERM LIABILITIES
Long-Term Debt $1.557B $1.517B
YoY Change 2.62% 8.4%
Other Long-Term Liabilities $717.5M $409.8M
YoY Change 75.09% 121.7%
Total Long-Term Liabilities $717.5M $409.8M
YoY Change 75.09% 121.7%
TOTAL LIABILITIES
Total Short-Term Liabilities $847.2M $666.8M
Total Long-Term Liabilities $717.5M $409.8M
Total Liabilities $1.565B $1.077B
YoY Change 45.34% 36.54%
SHAREHOLDERS EQUITY
Retained Earnings $1.807B $1.647B
YoY Change 9.68% 19.18%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $200.5M $112.2M
YoY Change 78.74%
Treasury Stock Shares 3.154M shares 1.674M shares
Shareholders Equity $2.257B $2.354B
YoY Change
Total Liabilities & Shareholders Equity $6.273B $5.816B
YoY Change 7.86% 9.47%

Cashflow Statement

Concept 2015 Q3 2014 Q3
OPERATING ACTIVITIES
Net Income $61.61M $67.45M
YoY Change -8.65% 36.21%
Depreciation, Depletion And Amortization $42.58M $39.01M
YoY Change 9.13% 2.01%
Cash From Operating Activities -$30.10M $310.5M
YoY Change -109.69% 879.5%
INVESTING ACTIVITIES
Capital Expenditures -$20.10M -$36.00M
YoY Change -44.17% -42.95%
Acquisitions
YoY Change
Other Investing Activities $1.000M -$11.90M
YoY Change -108.4% -440.0%
Cash From Investing Activities -$19.20M -$47.90M
YoY Change -59.92% -19.36%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 48.80M -253.1M
YoY Change -119.28% -911.22%
NET CHANGE
Cash From Operating Activities -30.10M 310.5M
Cash From Investing Activities -19.20M -47.90M
Cash From Financing Activities 48.80M -253.1M
Net Change In Cash -500.0K 9.500M
YoY Change -105.26% 171.43%
FREE CASH FLOW
Cash From Operating Activities -$30.10M $310.5M
Capital Expenditures -$20.10M -$36.00M
Free Cash Flow -$10.00M $346.5M
YoY Change -102.89% 265.51%

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11231000 USD
us-gaap Increase Decrease In Accounts Payable And Other Operating Liabilities
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us-gaap Increase Decrease In Accounts Receivable
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us-gaap Increase Decrease In Accounts Receivable
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30945000 USD
us-gaap Increase Decrease In Inventories
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80273000 USD
us-gaap Increase Decrease In Inventories
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273225000 USD
us-gaap Increase Decrease In Other Operating Assets
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-3405000 USD
us-gaap Increase Decrease In Other Operating Assets
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us-gaap Increase Decrease In Other Operating Capital Net
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530000 USD
us-gaap Increase Decrease In Other Operating Capital Net
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us-gaap Increase Decrease In Pension And Postretirement Obligations
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us-gaap Increase Decrease In Pension And Postretirement Obligations
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us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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CY2015Q3 us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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0 shares
us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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0 shares
CY2014Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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177000 shares
CY2015Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
89000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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103000 shares
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us-gaap Line Of Credit Facility Increase Decrease For Period Net
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CY2015Q1 us-gaap Long Term Debt And Capital Lease Obligations
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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 Operating Activities
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us-gaap Other Comprehensive Income Defined Benefit Plan Net Prior Service Costs Credit Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Defined Benefit Plan Net Prior Service Costs Credit Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Net Of Tax Portion Attributable To Parent
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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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CY2015Q3 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 Net Of Tax
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us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
OtherComprehensiveIncomeDefinedBenefitPlansNetUnamortizedGainLossArisingDuringPeriodTax
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CY2015Q3 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 Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
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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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CY2015Q3 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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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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CY2014Q3 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
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CY2015Q3 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
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us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
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CY2014Q2 us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
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us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax
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CY2015Q3 us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
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us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
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CY2014Q3 us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
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OtherComprehensiveIncomeLossDerivativesQualifyingAsHedgesNetOfTax
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges 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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OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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CY2015Q3 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation 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
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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CY2015Q3 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Benefit Plan Improvement Tax Effect
OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansBenefitPlanImprovementTaxEffect
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CY2015Q3 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Benefit Plan Improvement Tax Effect
OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansBenefitPlanImprovementTaxEffect
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Benefit Plan Improvement Tax Effect
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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CY2015Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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CY2014Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
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CY2015Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
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2000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
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2000 USD
CY2014Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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0 USD
CY2015Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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CY2014Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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CY2015Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
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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
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4090000 USD
us-gaap Payments Of Dividends
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us-gaap Payments Of Financing Costs
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us-gaap Payments Of Financing Costs
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us-gaap Payments Related To Tax Withholding For Share Based Compensation
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us-gaap Payments Related To Tax Withholding For Share Based Compensation
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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5986000 USD
CY2014Q3 us-gaap Payments To Acquire Machinery And Equipment
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us-gaap Payments To Acquire Machinery And Equipment
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CY2015Q3 us-gaap Payments To Acquire Machinery And Equipment
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us-gaap Payments To Acquire Machinery And Equipment
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38128000 USD
CY2015Q1 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
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CY2015Q3 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
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492433000 USD
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CY2015Q3 us-gaap Prepaid Expense And Other Assets Current
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28775000 USD
CY2015Q1 us-gaap Preproduction Costs Related To Long Term Supply Arrangements Costs Capitalized
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306983000 USD
CY2015Q3 us-gaap Preproduction Costs Related To Long Term Supply Arrangements Costs Capitalized
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426540000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
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342960000 USD
us-gaap Share Based Compensation
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1990000 USD
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us-gaap Sales Revenue Net
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1891028000 USD
CY2015Q3 us-gaap Sales Revenue Net
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954774000 USD
us-gaap Sales Revenue Net
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1914412000 USD
CY2014Q3 us-gaap Selling General And Administrative Expense
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68770000 USD
us-gaap Selling General And Administrative Expense
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134479000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
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us-gaap Proceeds From Payments For Other Financing Activities
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0 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
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1192000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
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1561000 USD
us-gaap Proceeds From Stock Options Exercised
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356000 USD
us-gaap Proceeds From Stock Options Exercised
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0 USD
CY2015Q1 us-gaap Product Warranty Accrual
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CY2015Q3 us-gaap Product Warranty Accrual
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107290000 USD
CY2015Q1 us-gaap Progress Payments Netted Against Inventory For Long Term Contracts Or Programs
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189923000 USD
CY2015Q3 us-gaap Progress Payments Netted Against Inventory For Long Term Contracts Or Programs
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138696000 USD
CY2015Q1 us-gaap Property Plant And Equipment Net
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CY2015Q3 us-gaap Property Plant And Equipment Net
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us-gaap Provision For Doubtful Accounts
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us-gaap Provision For Doubtful Accounts
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1248000 USD
CY2014Q2 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
1564000 USD
us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
3132000 USD
CY2015Q3 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
1131000 USD
us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
-46000 USD
us-gaap Reimbursement Revenue
ReimbursementRevenue
-553000 USD
us-gaap Reimbursement Revenue
ReimbursementRevenue
0 USD
us-gaap Repayments Of Long Term Debt And Capital Securities
RepaymentsOfLongTermDebtAndCapitalSecurities
427343000 USD
us-gaap Repayments Of Long Term Debt And Capital Securities
RepaymentsOfLongTermDebtAndCapitalSecurities
44207000 USD
CY2014Q3 us-gaap Restructuring And Related Cost Incurred Cost
RestructuringAndRelatedCostIncurredCost
196000 USD
us-gaap Restructuring And Related Cost Incurred Cost
RestructuringAndRelatedCostIncurredCost
3193000 USD
CY2014Q3 us-gaap Restructuring Charges
RestructuringCharges
196000 USD
us-gaap Restructuring Charges
RestructuringCharges
3193000 USD
CY2015Q3 us-gaap Restructuring Charges
RestructuringCharges
0 USD
us-gaap Restructuring Charges
RestructuringCharges
0 USD
CY2015Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
1686217000 USD
CY2015Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
1806618000 USD
CY2014Q3 us-gaap Revenues
Revenues
191849000 USD
us-gaap Revenues
Revenues
351683000 USD
CY2015Q3 us-gaap Revenues
Revenues
188308000 USD
us-gaap Revenues
Revenues
379625000 USD
CY2015Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
71321000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
144602000 USD
CY2014Q3 us-gaap Share Based Compensation
ShareBasedCompensation
1060000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
2056000 USD
CY2015Q3 us-gaap Share Based Compensation
ShareBasedCompensation
1199000 USD
us-gaap Standard Product Warranty Description
StandardProductWarrantyDescription
3
CY2015Q3 us-gaap Stock Repurchase Program Remaining Number Of Shares Authorized To Be Repurchased
StockRepurchaseProgramRemainingNumberOfSharesAuthorizedToBeRepurchased
2277789 shares
us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
93018000 USD
CY2015Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
2135784000 USD
CY2015Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
2257382000 USD
CY2015Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
3187867 shares
CY2015Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
3153782 shares
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
1386740 shares
CY2015Q1 us-gaap Treasury Stock Value
TreasuryStockValue
203514000 USD
CY2015Q3 us-gaap Treasury Stock Value
TreasuryStockValue
200457000 USD
CY2015Q1 us-gaap Unamortized Debt Issuance Expense
UnamortizedDebtIssuanceExpense
-10796000 USD
CY2015Q3 us-gaap Unamortized Debt Issuance Expense
UnamortizedDebtIssuanceExpense
-9887000 USD
CY2015Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
8348000 USD
CY2015Q3 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
8358000 USD
CY2015Q1 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
207000 USD
CY2015Q3 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
223000 USD
CY2015Q1 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
8348000 USD
CY2015Q3 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
8358000 USD
CY2014Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
51169000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
51627000 shares
CY2015Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
49308000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
49311000 shares
CY2014Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
51015000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
51351000 shares
CY2015Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
49219000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
49208000 shares
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Use of Estimates</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.</font></div></div>

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