| Segment and Geographic Information |
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(9)
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SEGMENT AND GEOGRAPHIC INFORMATION
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The Company has three reportable segments – Domestic Wholesale, International Wholesale and Direct-to-Consumer. Management evaluates segment performance based primarily on sales and gross margin. All other costs and expenses of the Company are analyzed on an aggregate basis and not allocated to the segments. The following summarizes the Company’s operations by segment and geographic area:
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Three Months Ended June 30,
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Six Months Ended June 30,
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(in thousands)
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2021
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2020
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2021
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2020
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Sales
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|
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Domestic Wholesale
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$
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399,653
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$
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130,738
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$
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774,318
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$
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508,700
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International Wholesale
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750,191
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385,181
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1,462,366
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960,380
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Direct-to-Consumer
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507,929
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213,553
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849,507
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502,737
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Total
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$
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1,657,773
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$
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729,472
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$
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3,086,191
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$
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1,971,817
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Gross profit
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Domestic Wholesale
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$
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155,175
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$
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50,425
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$
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295,099
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$
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195,702
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International Wholesale
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349,066
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180,449
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669,847
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420,924
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Direct-to-Consumer
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345,252
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137,692
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564,170
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299,608
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Total
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$
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849,493
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$
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368,566
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$
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1,529,116
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$
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916,234
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.
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Three Months Ended June 30,
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Six Months Ended June 30,
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(in thousands)
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2021
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2020
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2021
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2020
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Sales (1)
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United States
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$
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726,634
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$
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293,820
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$
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1,328,751
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$
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848,994
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International
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931,139
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435,652
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1,757,440
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1,122,823
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Total
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$
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1,657,773
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$
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729,472
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$
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3,086,191
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$
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1,971,817
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(1)
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During the three months ended June 30, 2021 and 2020, sales in China were $316.9 million and $210.0 million. During the six months ended June 30, 2021 and 2020, sales in China were $567.5 million and $301.3 million.
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The Company’s sales to its five largest customers accounted for approximately 9.0% and 8.6% of total sales for the three months ended June 30, 2021 and 2020, and for the six months ended June 30, 2021 and 2020 were 8.3% and 9.2%.
The following summarizes the Company’s assets by segment and geographic area:
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(in thousands)
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As of
June 30, 2021
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As of
December 31, 2020
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Identifiable assets
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Domestic Wholesale
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$
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1,766,716
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$
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1,945,681
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International Wholesale
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2,607,385
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2,436,568
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Direct-to-Consumer
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1,390,630
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1,430,120
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Total
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$
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5,764,731
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$
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5,812,369
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Three Months Ended June 30,
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Six Months Ended June 30,
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(in thousands)
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2021
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2020
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2021
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2020
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Additions to property, plant and equipment
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Domestic Wholesale
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$
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37,711
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$
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23,391
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$
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101,832
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$
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35,209
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International Wholesale
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14,248
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37,543
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25,061
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82,444
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Direct-to-Consumer
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10,023
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13,831
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19,326
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31,999
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Total
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$
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61,982
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$
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74,765
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$
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146,219
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$
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149,652
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(in thousands)
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As of
June 30, 2021
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As of
December 31, 2020
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Property, plant and equipment, net (1)
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United States
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$
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615,149
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$
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535,648
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International
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411,628
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399,793
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Total
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$
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1,026,777
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$
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935,441
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(1)
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Property, plant and equipment, net in China was $250.9 million and $ 241.6 million at June 30, 2021 and December 31, 2020.
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Assets located outside the U.S. consist primarily of cash, accounts receivable, inventory, property, plant and equipment, and other assets. Net assets held outside the U.S. were $3.6 billion and $3.1 billion at June 30, 2021 and December 31, 2020.
The Company performs regular evaluations concerning the ability of customers to satisfy their obligations and provides for estimated doubtful accounts. Domestic accounts receivable generally do not require collateral. Foreign accounts receivable are generally collateralized by letters of credit. The Company’s additions to the provision for expected credit losses for the three months ended June 30, 2021 and 2020 were $0.3 million and $11.1 million and for the six months ended June 30, 2021 and 2020 were $0.3 million and $16.7 million.
The Company’s accounts receivables, excluding the allowance for bad debts, allowances and chargebacks, in different geographic areas are summarized as follows:
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(in thousands)
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As of
June 30, 2021
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As of
December 31, 2020
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Domestic Accounts Receivable
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$
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295,355
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$
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230,546
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Foreign Accounts Receivable
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533,773
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437,816
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The Company’s top five manufacturers produced, as a percentage of total production, the following:
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Three Months Ended June 30,
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Six Months Ended June 30,
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2021
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2020
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2021
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2020
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Manufacturer #1
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17.0
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%
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20.2
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%
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17.9
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%
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23.4
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%
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Manufacturer #2
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7.3
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%
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8.0
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%
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6.1
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%
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7.0
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%
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Manufacturer #3
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5.0
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%
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6.1
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%
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4.9
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%
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5.9
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%
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Manufacturer #4
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4.8
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%
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5.7
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%
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4.8
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%
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4.5
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%
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Manufacturer #5
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4.6
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%
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4.7
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%
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4.3
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%
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4.3
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%
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|
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38.7
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%
|
|
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44.7
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%
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|
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38.0
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%
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45.1
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%
|
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