2024 Q2 Form 10-Q Financial Statement

#000152435824000039 Filed on May 07, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1
Revenue $1.140B $1.195B
YoY Change -3.23% 2.22%
Cost Of Revenue $570.0M $594.0M
YoY Change 2.52% 6.83%
Gross Profit $570.0M $601.0M
YoY Change -8.36% -1.96%
Gross Profit Margin 50.0% 50.29%
Selling, General & Admin $280.0M $286.0M
YoY Change 3.7% 2.88%
% of Gross Profit 49.12% 47.59%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $35.00M $38.00M
YoY Change 2.94% 18.75%
% of Gross Profit 6.14% 6.32%
Operating Expenses $280.0M $286.0M
YoY Change 3.7% 2.88%
Operating Profit $290.0M $315.0M
YoY Change -17.61% -5.97%
Interest Expense -$43.00M -$40.00M
YoY Change 19.44% 17.65%
% of Operating Profit -14.83% -12.7%
Other Income/Expense, Net -$1.000M -$1.000M
YoY Change -200.0% -104.76%
Pretax Income $48.00M $81.00M
YoY Change -65.71% -36.72%
Income Tax $10.00M $35.00M
% Of Pretax Income 20.83% 43.21%
Net Earnings $37.00M $47.00M
YoY Change -58.89% -45.98%
Net Earnings / Revenue 3.25% 3.93%
Basic Earnings Per Share $1.04 $1.32
Diluted Earnings Per Share $0.98 $1.22
COMMON SHARES
Basic Shares Outstanding 35.16M shares 35.18M shares
Diluted Shares Outstanding 42.20M shares 42.20M shares

Balance Sheet

Concept 2024 Q2 2024 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $206.0M $237.0M
YoY Change -14.88% -22.55%
Cash & Equivalents $206.0M $237.0M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory $643.0M $637.0M
Prepaid Expenses
Receivables $250.0M $314.0M
Other Receivables $100.0M $90.00M
Total Short-Term Assets $1.199B $1.278B
YoY Change 0.0% 0.87%
LONG-TERM ASSETS
Property, Plant & Equipment $1.295B $1.299B
YoY Change 6.06% 6.91%
Goodwill $3.117B $3.117B
YoY Change 0.0% 0.0%
Intangibles $822.0M $839.0M
YoY Change -7.01% -6.57%
Long-Term Investments
YoY Change
Other Assets $251.0M $313.0M
YoY Change 5.46% 16.79%
Total Long-Term Assets $8.412B $8.589B
YoY Change 1.56% 3.05%
TOTAL ASSETS
Total Short-Term Assets $1.199B $1.278B
Total Long-Term Assets $8.412B $8.589B
Total Assets $9.611B $9.867B
YoY Change 1.36% 2.76%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $198.0M $221.0M
YoY Change -5.26% -0.45%
Accrued Expenses $534.0M $593.0M
YoY Change 7.66% 9.81%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $732.0M $814.0M
YoY Change 3.83% 6.82%
LONG-TERM LIABILITIES
Long-Term Debt $5.235B $5.289B
YoY Change 4.1% 4.42%
Other Long-Term Liabilities $902.0M $1.058B
YoY Change -2.59% 10.67%
Total Long-Term Liabilities $6.137B $6.347B
YoY Change 3.06% 5.41%
TOTAL LIABILITIES
Total Short-Term Liabilities $732.0M $814.0M
Total Long-Term Liabilities $6.137B $6.347B
Total Liabilities $7.239B $7.489B
YoY Change 3.36% 5.15%
SHAREHOLDERS EQUITY
Retained Earnings $773.0M $763.0M
YoY Change 7.66% 16.67%
Common Stock $3.960B $3.952B
YoY Change 0.3% 0.36%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.372B $2.379B
YoY Change
Total Liabilities & Shareholders Equity $9.611B $9.867B
YoY Change 1.36% 2.76%

Cashflow Statement

Concept 2024 Q2 2024 Q1
OPERATING ACTIVITIES
Net Income $37.00M $47.00M
YoY Change -58.89% -45.98%
Depreciation, Depletion And Amortization $35.00M $38.00M
YoY Change 2.94% 18.75%
Cash From Operating Activities $30.00M $3.000M
YoY Change -61.04% -106.0%
INVESTING ACTIVITIES
Capital Expenditures $13.00M $16.00M
YoY Change -50.0% -56.76%
Acquisitions
YoY Change
Other Investing Activities -$6.000M -$4.000M
YoY Change -160.0%
Cash From Investing Activities -$19.00M -$69.00M
YoY Change 18.75% 86.49%
FINANCING ACTIVITIES
Cash Dividend Paid $54.00M
YoY Change 0.0%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -102.0M $43.00M
YoY Change -34.19% -122.16%
NET CHANGE
Cash From Operating Activities 30.00M $3.000M
Cash From Investing Activities -19.00M -$69.00M
Cash From Financing Activities -102.0M $43.00M
Net Change In Cash -91.00M -$24.00M
YoY Change -3.19% -91.43%
FREE CASH FLOW
Cash From Operating Activities $30.00M $3.000M
Capital Expenditures $13.00M $16.00M
Free Cash Flow $17.00M -$13.00M
YoY Change -66.67% -85.06%

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<div style="margin-top:6pt"><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:285.00pt"><tr><td style="width:1.0pt"></td><td style="width:16.75pt"></td><td style="width:1.0pt"></td><td style="width:1.0pt"></td><td style="width:264.25pt"></td><td style="width:1.0pt"></td></tr><tr style="height:14pt"><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">1. </span></td><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:100%">BASIS OF PRESENTATION</span></td></tr></table></div><div style="margin-top:3pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Interim Consolidated Financial Statements present the results of operations, financial position and cash flows of Marriott Vacations Worldwide Corporation (referred to in this report as (i) “we,” “us,” “Marriott Vacations Worldwide,” “MVW,” or the “Company,” which includes our consolidated subsidiaries except where the context of the reference is to a single corporate entity, or (ii) “MVWC,” which shall refer only to Marriott Vacations Worldwide Corporation, without its consolidated subsidiaries). In order to make this report easier to read, we refer throughout to (i) our Interim Consolidated Financial Statements as our “Financial Statements,” (ii) our Interim Consolidated Statements of Income as our “Income Statements,” (iii) our Interim Consolidated Balance Sheets as our “Balance Sheets,” and (iv) our Interim Consolidated Statements of Cash Flows as our “Cash Flows.” In addition, references throughout to numbered “Footnotes” refer to the numbered Notes in the Interim Condensed Notes to Consolidated Financial Statements, unless otherwise noted. Capitalized terms used and not specifically defined herein have the same meanings given those terms in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Annual Report”). We also use certain other terms that are defined within these Financial Statements.</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Financial Statements presented herein and discussed below include 100% of the assets, liabilities, revenues, expenses, and cash flows of Marriott Vacations Worldwide, all entities in which Marriott Vacations Worldwide has a controlling voting interest (“subsidiaries”), and variable interest entities (“VIEs”) for which Marriott Vacations Worldwide is the primary beneficiary in accordance with consolidation accounting guidance. References in these Financial Statements to net income attributable to common stockholders and MVW stockholders’ equity do not include noncontrolling interests, which represent the outside ownership of our consolidated non-wholly owned entities and are reported separately. Intercompany accounts and transactions between consolidated entities have been eliminated in consolidation.</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">These Financial Statements reflect our financial position, results of operations, and cash flows as prepared in conformity with United States Generally Accepted Accounting Principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition, cost of vacation ownership products, inventory valuation, goodwill and intangibles valuation, accounting for acquired vacation ownership notes receivable, vacation ownership notes receivable reserves, income taxes, and loss contingencies. The uncertainties in the broader macroeconomic environment, including inflation outpacing wage growth, continuing high interest rates, mixed economic indicators and increased global insecurity, have made it more challenging to make these estimates. Actual results could differ from our estimates, and such differences may be material.</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In our opinion, our Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position, the results of our operations, and cash flows for the periods presented. Interim results may not be indicative of fiscal year performance because of, among other reasons, general macroeconomic conditions, including inflationary pressures and seasonal and short-term variations. These Financial Statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe our footnote disclosures are adequate to make the information presented not misleading, the Financial Statements in this report should be read in conjunction with the consolidated financial statements and notes thereto in our 2023 Annual Report.</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We refer to the business and brands that we acquired in the acquisition of ILG, LLC, formerly known as ILG, Inc. (“ILG”), in 2018 (the “ILG Acquisition”) as “Legacy-ILG.” We refer to the business we conducted prior to the ILG Acquisition and the associated brands as “Legacy-MVW.” We refer to the business and brand that we acquired in the acquisition of Welk Hospitality Group, Inc. (“Welk”) in 2021 (the “Welk Acquisition”) as “Legacy-Welk.” During 2023, we rebranded all Legacy-Welk resorts as Hyatt Vacation Club resorts. Additionally, we use the term “Marriott Vacation Ownership” to refer to our Marriott-, Sheraton-, and Westin-brands and the term “Hyatt Vacation Ownership” to refer to our Hyatt-brands.</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We have reclassified certain prior year amounts to conform with our current year presentation.</span></div>
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CY2023Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
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CY2024Q1 us-gaap Inventory Real Estate Timeshare Available For Sale
InventoryRealEstateTimeshareAvailableForSale
625000000 usd
CY2023Q4 us-gaap Inventory Real Estate Timeshare Available For Sale
InventoryRealEstateTimeshareAvailableForSale
624000000 usd
CY2024Q1 us-gaap Inventory Work In Process
InventoryWorkInProcess
2000000 usd
CY2023Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
0 usd
CY2024Q1 vac Inventory Timeshare Gross
InventoryTimeshareGross
627000000 usd
CY2023Q4 vac Inventory Timeshare Gross
InventoryTimeshareGross
624000000 usd
CY2024Q1 vac Operating Supplies And Inventories
OperatingSuppliesAndInventories
10000000 usd
CY2023Q4 vac Operating Supplies And Inventories
OperatingSuppliesAndInventories
10000000 usd
CY2024Q1 vac Inventory Timeshare
InventoryTimeshare
637000000 usd
CY2023Q4 vac Inventory Timeshare
InventoryTimeshare
634000000 usd
CY2024Q1 vac Real Estate Inventory Increase Decrease True Up
RealEstateInventoryIncreaseDecreaseTrueUp
5000000 usd
CY2023Q1 vac Real Estate Inventory Increase Decrease True Up
RealEstateInventoryIncreaseDecreaseTrueUp
11000000 usd
CY2024Q1 vac Amount Of Completed Vacation Ownership Units Classified As Property And Equipment
AmountOfCompletedVacationOwnershipUnitsClassifiedAsPropertyAndEquipment
349000000 usd
CY2023Q4 vac Amount Of Completed Vacation Ownership Units Classified As Property And Equipment
AmountOfCompletedVacationOwnershipUnitsClassifiedAsPropertyAndEquipment
370000000 usd
CY2024Q1 vac Inventory Deposits
InventoryDeposits
9000000 usd
CY2023Q4 vac Inventory Deposits
InventoryDeposits
3000000 usd
CY2024Q1 vac Surety Bonds
SuretyBonds
122000000 usd
CY2024Q1 vac Guarantor Obligations Maximum Exposure Undiscounted Remainder Of Year
GuarantorObligationsMaximumExposureUndiscountedRemainderOfYear
9000000 usd
CY2024Q1 vac Number Of Consolidated Notes Receivable Pools Outstanding
NumberOfConsolidatedNotesReceivablePoolsOutstanding
14 loan
CY2024Q1 vac Number Of Notes Receivable Pools Under Performance Triggers
NumberOfNotesReceivablePoolsUnderPerformanceTriggers
0 loan
CY2024Q1 vac Number Of Notes Receivable Pools Out Of Compliance
NumberOfNotesReceivablePoolsOutOfCompliance
0 loan
CY2024Q1 us-gaap Finance Lease Liability
FinanceLeaseLiability
197000000 usd
CY2023Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
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CY2024Q1 us-gaap Debt And Capital Lease Obligations
DebtAndCapitalLeaseObligations
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CY2023Q4 us-gaap Debt And Capital Lease Obligations
DebtAndCapitalLeaseObligations
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CY2024Q1 us-gaap Long Term Debt Maturities Repayments Of Principal Remainder Of Fiscal Year
LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear
0 usd
CY2024Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
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784000000 usd
CY2024Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
575000000 usd
CY2024Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
735000000 usd
CY2024Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour
350000000 usd
CY2024Q1 vac Long Term Debt Maturity After Year Four
LongTermDebtMaturityAfterYearFour
500000000 usd
CY2024Q1 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
2944000000 usd
CY2024Q1 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
2 segment
CY2024Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 segment
CY2024Q1 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
100000000 shares
CY2024Q1 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2024Q1 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
75847526 shares
CY2024Q1 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
35163680 shares
CY2024Q1 us-gaap Treasury Stock Common Shares
TreasuryStockCommonShares
40683846 shares
CY2023Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
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CY2023Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
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CY2023Q4 us-gaap Treasury Stock Common Shares
TreasuryStockCommonShares
40488576 shares
CY2024Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
2000000 shares
CY2023Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
2000000 shares
CY2024Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2023Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2024Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2023Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2023Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2024Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2024Q1 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1
414000000 usd
CY2024Q1 us-gaap Common Stock Dividends Per Share Declared
CommonStockDividendsPerShareDeclared
0.76
CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Authorized
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized
1800000 shares
CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
1000000 shares
CY2024Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
7000000 usd
CY2023Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
7000000 usd
CY2024Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
62000000 usd
CY2023Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
24000000 usd
CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.4578
CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.0321
CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0423
CY2024Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y3M
CY2024Q1 us-gaap Purchase Obligation Future Minimum Payments Remainder Of Fiscal Year
PurchaseObligationFutureMinimumPaymentsRemainderOfFiscalYear
65000000 usd
CY2024Q1 us-gaap Purchase Obligation Due In Next Twelve Months
PurchaseObligationDueInNextTwelveMonths
82000000 usd
CY2024Q1 us-gaap Purchase Obligation Due In Second Year
PurchaseObligationDueInSecondYear
41000000 usd
CY2024Q1 us-gaap Payments To Acquire Real Estate And Real Estate Joint Ventures
PaymentsToAcquireRealEstateAndRealEstateJointVentures
48000000 usd
CY2024Q1 vac Payments For Renovation Of Retail Space
PaymentsForRenovationOfRetailSpace
1000000 usd
CY2024Q1 us-gaap Revenues
Revenues
1195000000 usd
CY2023Q1 us-gaap Revenues
Revenues
1169000000 usd
CY2024Q1 vac Corporateand Other Income Expense
CorporateandOtherIncomeExpense
58000000 usd
CY2023Q1 vac Corporateand Other Income Expense
CorporateandOtherIncomeExpense
63000000 usd
CY2024Q1 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-40000000 usd
CY2023Q1 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-34000000 usd
CY2024Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
35000000 usd
CY2023Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
41000000 usd
CY2024Q1 us-gaap Depreciation And Amortization
DepreciationAndAmortization
38000000 usd
CY2023Q1 us-gaap Depreciation And Amortization
DepreciationAndAmortization
32000000 usd
CY2024Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
7000000 usd
CY2023Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
7000000 usd
CY2024Q1 vac Certain Items Adjusted Ebitda Reconciliation
CertainItemsAdjustedEBITDAReconciliation
20000000 usd
CY2023Q1 vac Certain Items Adjusted Ebitda Reconciliation
CertainItemsAdjustedEBITDAReconciliation
2000000 usd
CY2024Q1 us-gaap Net Income Loss
NetIncomeLoss
47000000 usd
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
87000000 usd
CY2024Q1 us-gaap Assets
Assets
9867000000 usd
CY2023Q4 us-gaap Assets
Assets
9680000000 usd
CY2024Q1 vac Revenues Excluding Reimbursed Costs
RevenuesExcludingReimbursedCosts
804000000 usd
CY2023Q1 vac Revenues Excluding Reimbursed Costs
RevenuesExcludingReimbursedCosts
804000000 usd
CY2024Q1 ecd Non Rule10b51 Arr Adopted Flag
NonRule10b51ArrAdoptedFlag
false
CY2024Q1 ecd Rule10b51 Arr Adopted Flag
Rule10b51ArrAdoptedFlag
false
CY2024Q1 ecd Rule10b51 Arr Trmntd Flag
Rule10b51ArrTrmntdFlag
false
CY2024Q1 ecd Non Rule10b51 Arr Trmntd Flag
NonRule10b51ArrTrmntdFlag
false

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