Components of Company's Income Tax Provision |
Below are the components of the Company’s income tax
provision for the periods indicated:
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Successor |
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Predecessor |
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Period from
06/30/2014
through
12/31/2014
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Six months
Ended
06/29/2014
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Year
Ended
12/31/2013
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Year
Ended
12/31/2012
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Current:
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Federal & State
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$ |
102 |
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$ |
105 |
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$ |
552 |
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$ |
206 |
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Foreign
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|
800 |
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|
212 |
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|
795 |
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344 |
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Total current
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|
902 |
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|
317 |
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1,347 |
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|
550 |
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Deferred:
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Federal & State
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(7,081 |
) |
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(23,056 |
) |
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(2,857 |
) |
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(5,000 |
) |
Foreign
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(98 |
) |
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328 |
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(890 |
) |
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(746 |
) |
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Total deferred
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(7,179 |
) |
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(22,728 |
) |
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(3,747 |
) |
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(5,746 |
) |
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Valuation allowance
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89 |
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(1,717 |
) |
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(381 |
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28 |
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Income tax benefit
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$ |
(6,188 |
) |
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$ |
(24,128 |
) |
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$ |
(2,781 |
) |
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$ |
(5,168 |
) |
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Deferred Tax Assets and Liabilities |
The table below reflects the significant components of the
Company’s net deferred tax assets and liabilities at
December 31, 2014 and 2013:
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Successor Period
As of December 31, 2014
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Predecessor Period
As of December 31, 2013
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Current |
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Non-current |
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Current |
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Non-current |
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Deferred Tax Asset:
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Inventory
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$ |
9,905 |
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$ |
— |
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$ |
8,377 |
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$ |
— |
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Bad debt reserve
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|
956 |
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— |
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|
978 |
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— |
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Casualty loss reserve
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|
363 |
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|
502 |
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|
297 |
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|
410 |
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Accrued bonus / deferred compensation
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1,013 |
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|
907 |
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1,805 |
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4,608 |
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Deferred rent
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— |
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68 |
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— |
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|
546 |
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Derivative security value
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|
276 |
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— |
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(120 |
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— |
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Deferred distribution of foreign subsidiary
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312 |
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— |
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Deferred financing fees
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— |
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5,190 |
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— |
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|
283 |
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Deferred revenue - shipping terms
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421 |
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|
285 |
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— |
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Medical insurance reserve
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373 |
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— |
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|
355 |
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— |
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Original issue discount amortization
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513 |
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— |
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|
596 |
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Transaction costs
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1,389 |
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— |
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3,454 |
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Federal / foreign net operating loss
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37,552 |
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— |
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20,595 |
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State net operating loss
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|
4,089 |
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— |
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2,524 |
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Unrecognized tax benefit
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(58 |
) |
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— |
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(2,024 |
) |
Tax credit carryforwards
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3,619 |
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— |
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2,881 |
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All other
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31 |
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531 |
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(275 |
) |
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824 |
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Gross deferred tax assets
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|
13,338 |
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|
54,614 |
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|
11,702 |
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34,697 |
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Valuation allowance for deferred tax assets
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(99 |
) |
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(1,124 |
) |
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(606 |
) |
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(2,302 |
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Net deferred tax assets
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$ |
13,239 |
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$ |
53,490 |
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$ |
11,096 |
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$ |
32,395 |
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Deferred Tax Liability:
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Intangible asset amortization
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$ |
— |
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$ |
303,124 |
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$ |
— |
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$ |
135,335 |
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Property and equipment
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— |
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24,147 |
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— |
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17,106 |
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All other items
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— |
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— |
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— |
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14 |
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Deferred tax liabilities
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$ |
— |
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$ |
327,271 |
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$ |
— |
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$ |
152,455 |
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Net deferred tax liability
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$ |
260,542 |
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$ |
108,964 |
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Long term net deferred tax liability
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$ |
273,781 |
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$ |
120,060 |
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Current net deferred tax asset
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13,239 |
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|
11,096 |
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Long term net deferred tax asset
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— |
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— |
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Net deferred tax liability
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$ |
260,542 |
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$ |
108,964 |
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Components of Changes in Unrecognized Tax Benefits |
The following is a summary of the changes for the periods
indicated below:
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|
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|
|
Successor |
|
|
|
|
Predecessor |
|
|
|
Period from
06/30/2014
through
12/31/2014 |
|
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|
|
Six months
Ended
06/29/2014
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|
Year
Ended
12/31/2013 |
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Year
Ended
12/31/2012 |
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Unrecognized tax benefits - beginning balance
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$ |
465 |
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$ |
2,024 |
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$ |
3,002 |
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$ |
4,440 |
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Gross increases - tax positions in current period
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|
— |
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— |
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— |
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— |
|
Gross increases - tax positions in prior period
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— |
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|
560 |
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|
— |
|
Gross decreases - tax positions in prior period
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(30 |
) |
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|
(1,559 |
) |
|
|
(1,538 |
) |
|
|
(1,438 |
) |
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Unrecognized tax benefits - ending balance
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$ |
435 |
|
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$ |
465 |
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$ |
2,024 |
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|
$ |
3,002 |
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Amount of unrecognized tax benefit that, if recognized would affect
the company’s effective tax rate
|
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$ |
435 |
|
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$ |
465 |
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$ |
2,024 |
|
|
$ |
3,002 |
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