2021 Q1 Form 10-Q Financial Statement

#000133691721000027 Filed on May 07, 2021

View on sec.gov

Income Statement

Concept 2021 Q1 2020 Q1
Revenue $1.257B $930.2M
YoY Change 35.15% -22.78%
Cost Of Revenue $628.6M $499.3M
YoY Change 25.9% -24.35%
Gross Profit $628.6M $431.0M
YoY Change 45.86% -20.89%
Gross Profit Margin 50.0% 46.33%
Selling, General & Admin $514.6M $552.7M
YoY Change -6.89% 8.47%
% of Gross Profit 81.87% 128.24%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $35.50M $48.60M
YoY Change -26.95% 4.52%
% of Gross Profit 5.65% 11.28%
Operating Expenses $514.6M $552.7M
YoY Change -6.89% 8.47%
Operating Profit $106.9M -$558.2M
YoY Change -119.15% -1683.09%
Interest Expense -$14.10M -$8.800M
YoY Change 60.23% 144.44%
% of Operating Profit -13.19%
Other Income/Expense, Net -$7.180M $1.534M
YoY Change -568.06% -329.99%
Pretax Income $85.57M -$562.6M
YoY Change -115.21% -1953.48%
Income Tax $9.881M $21.55M
% Of Pretax Income 11.55%
Net Earnings $77.75M -$589.7M
YoY Change -113.19% -2723.49%
Net Earnings / Revenue 6.18% -63.39%
Basic Earnings Per Share $0.17 -$1.30
Diluted Earnings Per Share $0.17 -$1.30
COMMON SHARES
Basic Shares Outstanding 456.0M shares 452.9M shares
Diluted Shares Outstanding 459.2M shares 452.9M shares

Balance Sheet

Concept 2021 Q1 2020 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.349B $959.3M
YoY Change 40.59% 232.28%
Cash & Equivalents $1.349B $959.3M
Short-Term Investments
Other Short-Term Assets $260.9M $300.1M
YoY Change -13.06% 0.33%
Inventory $851.8M $940.2M
Prepaid Expenses
Receivables $696.3M $668.4M
Other Receivables $0.00 $0.00
Total Short-Term Assets $3.158B $2.868B
YoY Change 10.1% 29.97%
LONG-TERM ASSETS
Property, Plant & Equipment $632.3M $726.6M
YoY Change -12.97% -10.35%
Goodwill $498.0M $485.7M
YoY Change 2.53% -11.49%
Intangibles $12.55M $40.49M
YoY Change -69.01% 0.95%
Long-Term Investments $0.00
YoY Change -100.0%
Other Assets $78.83M $93.84M
YoY Change -16.0% -24.54%
Total Long-Term Assets $1.757B $1.970B
YoY Change -10.81% -11.65%
TOTAL ASSETS
Total Short-Term Assets $3.158B $2.868B
Total Long-Term Assets $1.757B $1.970B
Total Assets $4.914B $4.838B
YoY Change 1.59% 9.05%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $490.9M $417.4M
YoY Change 17.6% 10.6%
Accrued Expenses $311.9M $267.1M
YoY Change 16.77% -0.4%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $600.0M
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $1.234B $1.692B
YoY Change -27.03% 54.61%
LONG-TERM LIABILITIES
Long-Term Debt $1.010B $593.3M
YoY Change 70.23% 0.48%
Other Long-Term Liabilities $98.54M $88.86M
YoY Change 10.89% -17.12%
Total Long-Term Liabilities $1.108B $682.1M
YoY Change 62.5% -2.22%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.234B $1.692B
Total Long-Term Liabilities $1.108B $682.1M
Total Liabilities $3.144B $3.287B
YoY Change -4.36% 37.76%
SHAREHOLDERS EQUITY
Retained Earnings $747.2M $634.5M
YoY Change 17.78% -45.23%
Common Stock $1.072B $985.8M
YoY Change 8.78% 5.85%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.770B $1.550B
YoY Change
Total Liabilities & Shareholders Equity $4.914B $4.838B
YoY Change 1.59% 9.05%

Cashflow Statement

Concept 2021 Q1 2020 Q1
OPERATING ACTIVITIES
Net Income $77.75M -$589.7M
YoY Change -113.19% -2723.49%
Depreciation, Depletion And Amortization $35.50M $48.60M
YoY Change -26.95% 4.52%
Cash From Operating Activities -$150.6M -$366.7M
YoY Change -58.94% 308.42%
INVESTING ACTIVITIES
Capital Expenditures $8.465M $31.50M
YoY Change -73.13% -12.29%
Acquisitions
YoY Change
Other Investing Activities $600.0K -$37.30M
YoY Change -101.61%
Cash From Investing Activities -$7.904M -$68.84M
YoY Change -88.52% 91.7%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $0.00 $100.0M
YoY Change -100.0% -37.98%
Cash From Financing Activities -$3.443M $599.0M
YoY Change -100.57% -522.88%
NET CHANGE
Cash From Operating Activities -$150.6M -$366.7M
Cash From Investing Activities -$7.904M -$68.84M
Cash From Financing Activities -$3.443M $599.0M
Net Change In Cash -$168.8M $172.2M
YoY Change -198.07% -164.26%
FREE CASH FLOW
Cash From Operating Activities -$150.6M -$366.7M
Capital Expenditures $8.465M $31.50M
Free Cash Flow -$159.1M -$398.2M
YoY Change -60.06% 216.79%

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CY2020Q1 ua Increase Decrease In Accrued Expenses And Other Liabilities
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226315000 USD
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1263000 USD
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CY2020Q1 us-gaap Proceeds From Sale Of Property Plant And Equipment
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CY2020Q1 us-gaap Proceeds From Issuance Of Long Term Debt
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CY2020Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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858000 USD
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CY2020Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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40000 USD
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13081000 USD
CY2021Q1 us-gaap Nature Of Operations
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DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION<div style="margin-top:2pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Business</span></div><div style="margin-top:5pt;text-indent:36pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Under Armour, Inc. (together with its wholly owned subsidiaries, the "Company") is a developer, marketer and distributor of branded athletic performance apparel, footwear, and accessories. The Company creates products engineered to solve problems and make athletes better, as well as digital health and fitness apps built to connect people and drive performance. The Company's products are made, sold and worn worldwide.</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="margin-top:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Basis of Presentation</span></div><div style="margin-top:5pt;text-indent:36pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The accompanying unaudited condensed consolidated financial statements include the accounts of Under Armour Inc. and its wholly owned subsidiaries. Certain information in footnote disclosures normally included in annual financial statements was condensed or omitted for the interim periods presented in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim consolidated financial statements. These unaudited condensed consolidated financial statements are presented in U.S. Dollars. In the opinion of management, all adjustments consisting of normal, recurring adjustments considered necessary for a fair statement of the financial position and results of operations were included. Intercompany balances and transactions were eliminated upon consolidation. The unaudited condensed consolidated balance sheet as of March 31, 2021 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 ("Fiscal 2020"), filed with the SEC on February 24, 2021 ("Annual Report on Form 10-K for Fiscal 2020"), which should be read in conjunction with these unaudited condensed consolidated financial statements. The unaudited results for the three months ended March 31, 2021, are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2021 ("Fiscal 2021"), or any other portions thereof. </span></div><div style="margin-top:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Connected Fitness</span></div><div style="margin-top:5pt;text-indent:36pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Prior to January 1, 2021, the Company's previously reported "Connected Fitness" segment was composed of digital subscription and advertising conducted through various platforms, predominantly the MyFitnessPal, MapMyFitness, consisting of applications such as MapMyRun and MapMyRide (collectively "MMR"), and Endomondo platforms. While the Company continues to operate the MMR platforms, MyFitnessPal was sold in December 2020 and Endomondo was wound down in December 2020 as part of the Company's 2020 restructuring plan. As a result of these changes, starting in the first quarter of Fiscal 2021 the Company no longer reports Connected Fitness as a discrete reportable segment. The operating results of MMR are now included within the Company’s Corporate Other segment. Where applicable, all prior period balances that used to reflect Connected Fitness discretely have been recast to be included within the Corporate Other reportable segment, to conform with current period presentation. Such reclassifications did not affect total consolidated net revenues, consolidated income from operations or consolidated net income.</span></div><div style="margin-top:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Management Estimates and COVID-19 Update</span></div><div style="margin-top:5pt;text-indent:36pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates, judgments and assumptions are evaluated on an on-going basis. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable at that time; however, actual results could differ from these estimates. </span></div><div style="margin-top:5pt;text-indent:36pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Further, COVID-19 continues to significantly impact the global economy. As the impacts of the pandemic continue to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. The extent to which the evolving pandemic impacts the Company's financial statements will depend on a number of factors including, but not limited to, any new information that may emerge concerning the severity of COVID-19 and the actions that governments may take to contain the virus or treat its impact. While the Company believes it has made appropriate accounting estimates and assumptions based on the facts and circumstances available as of this reporting date, the Company may experience further impacts based on long-term effects on the Company's customers and the countries in which the </span></div>Company operates. Please see the risk factors discussed in Part I, Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for Fiscal 2020.
CY2021Q1 us-gaap Use Of Estimates
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<div style="margin-top:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Management Estimates and COVID-19 Update</span></div><div style="margin-top:5pt;text-indent:36pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates, judgments and assumptions are evaluated on an on-going basis. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable at that time; however, actual results could differ from these estimates. </span></div><div style="margin-top:5pt;text-indent:36pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Further, COVID-19 continues to significantly impact the global economy. As the impacts of the pandemic continue to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. The extent to which the evolving pandemic impacts the Company's financial statements will depend on a number of factors including, but not limited to, any new information that may emerge concerning the severity of COVID-19 and the actions that governments may take to contain the virus or treat its impact. While the Company believes it has made appropriate accounting estimates and assumptions based on the facts and circumstances available as of this reporting date, the Company may experience further impacts based on long-term effects on the Company's customers and the countries in which the </span></div>Company operates. Please see the risk factors discussed in Part I, Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for Fiscal 2020.
CY2021Q1 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2020Q1 us-gaap Restricted Cash
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1528515000 USD
CY2020Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q1 us-gaap Concentration Risk Credit Risk
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<div style="margin-top:14pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentration of Credit Risk</span></div><div style="margin-top:5pt;text-indent:24pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that subject the Company to significant concentration of credit risk consist primarily of accounts receivable. The majority of the Company’s accounts receivable is due from large wholesale customers. None of the Company's customers accounted for more than 10% of accounts receivable as of March 31, 2021, December 31, 2020 and March 31, 2020, respectively. For the three months ended March 31, 2021 and 2020, no customer accounted for more than 10% of the Company's net revenues. The Company regularly evaluates the credit risk of the large wholesale customers which make up the majority of the Company's accounts receivable. Refer to the "Credit Losses - Allowance for Doubtful Accounts" below for a discussion of the evaluation of credit losses.</span></div>
CY2020Q4 us-gaap Allowance For Doubtful Accounts Receivable
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CY2021Q1 us-gaap Allowance For Doubtful Accounts Receivable
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7029000 USD
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0 USD
CY2021Q1 ua Prepaid Expense And Other Current Assets Allowance For Credit Loss Recovery
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CY2021Q1 ua Prepaid Expense And Other Current Assets Allowance For Credit Loss
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7029000 USD
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CY2020Q1 us-gaap Contract With Customer Liability
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CY2021Q1 us-gaap Contract With Customer Liability Revenue Recognized
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4300000 USD
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20300000 USD
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23300000 USD
CY2020Q1 ua Handling Costs
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14900000 USD
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34935000 USD
CY2020Q1 us-gaap Operating Lease Cost
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37872000 USD
CY2021Q1 us-gaap Variable Lease Payment
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2920000 USD
CY2020Q1 us-gaap Variable Lease Payment
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1986000 USD
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P9Y18D
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P9Y1M13D
CY2020Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P9Y7M20D
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CY2020Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
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0.0399
CY2021Q1 us-gaap Operating Lease Payments
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45909000 USD
CY2020Q2 us-gaap Repayments Of Long Term Lines Of Credit
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CY2020Q1 us-gaap Operating Lease Payments
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36547000 USD
CY2021Q1 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2020Q1 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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72963000 USD
CY2021Q1 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
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150290000 USD
CY2021Q1 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
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163805000 USD
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143554000 USD
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LesseeOperatingLeaseLiabilityPaymentsDueYearThree
124776000 USD
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96576000 USD
CY2021Q1 ua Lessee Operating Lease Liability To Be Paid After Year Four
LesseeOperatingLeaseLiabilityToBePaidAfterYearFour
467029000 USD
CY2021Q1 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
1146030000 USD
CY2021Q1 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
183820000 USD
CY2021Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
962210000 USD
CY2021Q1 ua Lessee Operating Lease Leases Not Yet Commenced Liability
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5500000 USD
CY2021Q1 us-gaap Debt Instrument Interest Rate Effective Percentage
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0.068
CY2021Q1 us-gaap Interest Income Expense Net
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CY2020Q1 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
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CY2021Q1 us-gaap Revenues
Revenues
1257195000 USD
CY2020Q1 us-gaap Revenues
Revenues
930240000 USD
CY2021Q1 us-gaap Cost Of Goods And Services Sold
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628554000 USD
CY2020Q1 us-gaap Cost Of Goods And Services Sold
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499256000 USD
CY2021Q1 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-14137000 USD
CY2020Q1 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-5960000 USD
CY2021Q1 us-gaap Other Nonoperating Income Expense
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-7180000 USD
CY2020Q1 us-gaap Other Nonoperating Income Expense
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1534000 USD
CY2021Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-7180000 USD
CY2020Q1 us-gaap Other Nonoperating Income Expense
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1534000 USD
CY2021Q1 us-gaap Maximum Remaining Maturity Of Foreign Currency Derivatives1
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P24M
CY2021Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.115
CY2020Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
-0.038
CY2021Q1 us-gaap Net Income Loss
NetIncomeLoss
77752000 USD
CY2020Q1 us-gaap Net Income Loss
NetIncomeLoss
-589681000 USD
CY2021Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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456014000 shares
CY2020Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
452871000 shares
CY2021Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
3212000 shares
CY2020Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2021Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
459226000 shares
CY2021Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
459226000 shares
CY2020Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
452871000 shares
CY2021Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.17
CY2020Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-1.30
CY2021Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.17
CY2020Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-1.30
CY2021Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4300000 shares
CY2020Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
0 shares
CY2021Q1 us-gaap Revenues
Revenues
1257195000 USD
CY2020Q1 us-gaap Revenues
Revenues
930240000 USD
CY2021Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
106890000 USD
CY2020Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-558180000 USD
CY2021Q1 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-14137000 USD
CY2020Q1 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-5960000 USD
CY2021Q1 us-gaap Other Nonoperating Income Expense
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-7180000 USD
CY2020Q1 us-gaap Other Nonoperating Income Expense
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1534000 USD
CY2021Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
85573000 USD
CY2020Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-562606000 USD
CY2021Q1 us-gaap Revenues
Revenues
1257195000 USD
CY2020Q1 us-gaap Revenues
Revenues
930240000 USD
CY2021Q1 us-gaap Revenues
Revenues
1257195000 USD
CY2020Q1 us-gaap Revenues
Revenues
930240000 USD

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