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Form 8-K

sec.gov

8-K — Sphere Entertainment Co.

Accession: 0001628280-26-030130

Filed: 2026-05-05

Period: 2026-05-05

CIK: 0001795250

SIC: 7900 (SERVICES-AMUSEMENT & RECREATION SERVICES)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — sphr-20260505.htm (Primary)

EX-99.1 (exhibit991sphereentertainm.htm)

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8-K

8-K (Primary)

Filename: sphr-20260505.htm · Sequence: 1

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FALSE000179525000017952502026-05-052026-05-05

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 5, 2026

SPHERE ENTERTAINMENT CO.

(Exact Name of Registrant as Specified in Charter)

Delaware

001-39245

84-3755666

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

Two Pennsylvania Plaza,

New York,

New York

10121

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (725) 258-0001

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)).

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c)).

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading

Symbol(s)

Name of Each Exchange

on Which Registered

Class A Common Stock

SPHR

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02    Results of Operations and Financial Condition.

On May 5, 2026, Sphere Entertainment Co. (the “Company”) announced its financial results for its first quarter ended March 31, 2026. A copy of the press release containing the announcement is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

1

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits

99.1    Press Release dated May 5, 2026.

104    Cover Page Interactive Data File (embedded within the Inline XBRL document).

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SPHERE ENTERTAINMENT CO.

(Registrant)

By: /s/ Robert H. Langer

Name: Robert H. Langer

Title: Executive Vice President, Chief Financial Officer and Treasurer

Dated: May 5, 2026

3

EX-99.1

EX-99.1

Filename: exhibit991sphereentertainm.htm · Sequence: 2

Document

Exhibit 99.1

SPHERE ENTERTAINMENT CO. REPORTS

FIRST QUARTER 2026 RESULTS

NEW YORK, N.Y., May 5, 2026 - Sphere Entertainment Co. (NYSE: SPHR) (“Sphere Entertainment” or the “Company”) today reported financial results for the first quarter ended March 31, 2026.

Recent highlights for the Company’s Sphere segment include:

•Plans to bring Sphere to Abu Dhabi and National Harbor continue to move forward, while the Company also remains in discussions with a significant number of markets globally regarding additional large and smaller-scale Sphere venues;

•The Wizard of Oz at Sphere, the Sphere Experience that opened in Las Vegas on August 28, 2025, surpassed its 500th showing in March;

•Metallica announced a new concert residency at Sphere, with 24 concerts planned beginning in October 2026, while Backstreet Boys announced they will return this summer, extending their residency run to 56 nights total;

•The Company continues to draw robust interest from Exosphere advertisers and sponsors, including the announcement in April of a new multi-year sponsorship agreement with Evian.

For the three months ended March 31, 2026, the Company reported revenues of $386.4 million, an increase of $105.8 million, or 38%, as compared to the prior year quarter. In addition, the Company reported operating income of $7.2 million, an increase of $85.8 million, and adjusted operating income of $110.0 million, an increase of $74.0 million, both as compared to the prior year quarter.(1)

Executive Chairman and CEO James L. Dolan said, “Today’s results demonstrate our continued success proving out Sphere’s business model. Looking ahead, we remain focused on maximizing that model’s full potential in Las Vegas, while executing on our long-term vision for a global network of Sphere venues.”

Segment Results for the Three Months Ended March 31, 2026 and 2025:

(In millions) Three Months Ended

March 31, Change

2026 2025 $ %

Revenues:

Sphere $ 266.0  $ 157.5  $ 108.4  69  %

MSG Networks 120.4  123.0  (2.6) (2) %

Total Revenues $ 386.4  $ 280.6  $ 105.8  38  %

Operating Income (Loss):

Sphere

$ (24.9) $ (93.8) $ 68.9  73  %

MSG Networks

32.1  15.2  16.9  112  %

Total Operating Income (Loss)

$ 7.2  $ (78.6) $ 85.8  NM

Adjusted Operating Income:(1)

Sphere $ 74.3  $ 13.1  $ 61.1  NM

MSG Networks

35.7  22.8  12.9  56  %

Total Adjusted Operating Income

$ 110.0  $ 36.0  $ 74.0  NM

Note: Does not foot due to rounding. NM — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.

(1)See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures.

1

Sphere

For the first quarter 2026, the Sphere segment reported revenues of $266.0 million, an increase of $108.4 million, or 69%, as compared to the prior year quarter.

Revenues related to The Sphere Experience increased $81.7 million as compared to the prior year quarter, which primarily reflected higher per-show revenue for The Wizard of Oz at Sphere. In the current year quarter, The Sphere Experience reflected 209 performances of The Wizard of Oz at Sphere as compared to 200 performances of Postcard from Earth and V-U2 An Immersive Concert Film in the prior year quarter.

Event-related revenues increased $24.4 million as compared to the prior year quarter, primarily due to (i) higher revenues from brand events, due to one additional brand event held in the current year quarter and higher per-event revenue, and (ii) higher revenues from concerts, primarily due to six additional concert residency shows held at Sphere in Las Vegas during the current year period.

Revenues from sponsorship, Exosphere advertising and suite license fees increased $1.6 million as compared to the prior year quarter, primarily reflecting an increase in sponsorship revenues and higher suite license fee revenues.

Other revenues increased $0.7 million as compared to the prior year quarter.

For the first quarter 2026, the Sphere segment had direct operating expenses of $99.2 million, an increase of $28.7 million, or 41%, as compared to the prior year quarter. Expenses associated with The Sphere Experience increased $18.1 million as compared to the prior year quarter, primarily due to higher per-show expenses for The Wizard of Oz at Sphere. Event-related expenses increased $10.8 million as compared to the prior year quarter, primarily due to (i) higher expenses from brand events, due to higher per-event expenses and an increase in the number of brand events held in the current year quarter, and (ii) higher expenses from concerts, due to an increase in the number of concert residency shows held at Sphere in Las Vegas, partially offset by lower per-concert expenses.

For the first quarter 2026, selling, general and administrative expenses of $106.6 million increased $10.2 million, or 11%, as compared to the prior year quarter, primarily due to the impact of mark-to-market adjustments on certain share-based compensation awards as a result of the appreciation in the Company’s stock price during the current year quarter.

For the first quarter 2026, operating loss of $24.9 million improved by $68.9 million, or 73%, and adjusted operating income of $74.3 million increased $61.1 million, both as compared to the prior year quarter, primarily due to the increase in revenues, partially offset by higher direct operating expenses and higher selling, general and administrative expenses.

MSG Networks

For the first quarter 2026, the MSG Networks segment reported total revenues of $120.4 million, a decrease of $2.6 million, or 2%, as compared to the prior year quarter.

Advertising revenue decreased $4.9 million as compared to the prior year quarter, primarily due to a lower number of live regular season professional sports telecasts. This decrease was partially offset by an increase in distribution revenue of $1.8 million, primarily reflecting the absence of revenues from Altice during MSG Networks’ non-carriage period from January 1, 2025 through February 21, 2025 in the prior year quarter, partially offset by a decrease in total subscribers of approximately 16.0% (excluding the impact of the Altice non-carriage period in the prior year quarter).

For the first quarter 2026, direct operating expenses of $70.4 million decreased $17.4 million, or 20%, as compared to the prior year quarter. Rights fees expense decreased $16.5 million as compared to the prior year quarter, primarily reflecting reductions in media rights fees as a result of the amendments to MSG Networks’ media rights agreements with certain professional sports teams.

For the first quarter 2026, selling, general and administrative expenses of $15.1 million decreased $2.8 million, or 15%, as compared to the prior year quarter. This decrease was primarily due to (i) lower professional fees of $3.6 million, mainly due to the absence of costs associated with pursuing a work-out of MSG Networks’ credit facilities recorded in the prior year quarter, and (ii) lower employee compensation and related benefits of $2.3 million, partially offset by (iii) higher advertising and marketing costs of $3.0 million.

For the first quarter 2026, operating income of $32.1 million increased $16.9 million as compared to the prior year quarter, primarily due to lower direct operating expenses and, to a lesser extent, lower selling, general and administrative expenses (including merger, debt work-out and acquisition related costs), partially offset by the decrease in revenues. Adjusted operating income of $35.7 million increased $12.9 million, or 56%, as compared to the prior year quarter, primarily due to lower direct operating expenses, partially offset by the decrease in revenues and higher selling, general and administrative expenses (excluding merger, debt work-out and acquisition related costs).

2

About Sphere Entertainment Co.

Sphere Entertainment Co. is a leader in immersive experiences, technology and media. The Company includes Sphere, an experiential medium powered by advanced technologies. The first Sphere opened in Las Vegas, with plans also announced for Sphere venues in Abu Dhabi and National Harbor. In addition, the Company includes MSG Networks, which operates two regional sports and entertainment networks, MSG Network and MSG Sportsnet, as well as a direct-to-consumer and authenticated streaming product, MSG+, delivering a wide range of live sports content and other programming. More information is available at www.sphereentertainmentco.com.

Non-GAAP Financial Measures

We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) before (i) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets, (ii) amortization for capitalized cloud computing arrangement costs, (iii) share-based compensation expense, (iv) restructuring charges or credits, (v) merger, debt work-out and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries, (vi) gains or losses on sales or dispositions of businesses and associated settlements, (vii) the impact of purchase accounting adjustments related to business acquisitions, and (viii) gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. We eliminate merger, debt work-out and acquisition-related costs, including merger related litigation expenses, net of insurance recoveries, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan, provides investors with a clearer picture of the Company’s operating performance given that, in accordance with U.S. generally accepted accounting principles (“GAAP”), gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan are recognized in operating income (loss) whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in other income (expense), net, which is not reflected in operating income (loss).

We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our business segments and the Company on a consolidated basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 5 of this release.

Forward-Looking Statements

This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.

# # #

Contacts:

Ari Danes, CFA

Investor Relations

(212) 465-6072

Grace Kaminer

Investor Relations

(212) 631-5076

Conference Call Information:

The conference call will be Webcast live today at 10:00 a.m. ET at investor.sphereentertainmentco.com

Conference call dial-in number is 888-800-3155 / Conference ID Number 8089430

Conference call replay number is 800-770-2030 / Conference ID Number 8089430 until May 12, 2026

3

SPHERE ENTERTAINMENT CO.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended

March 31,

2026 2025

Revenues $ 386,412  $ 280,574

Operating expenses:

Direct operating expenses 169,647  158,323

Selling, general, and administrative expenses 121,703  114,269

Depreciation and amortization 84,367  84,229

Impairment and other losses, net 79  521

Restructuring charges 3,414  1,841

Operating income (loss)

7,202  (78,609)

Other income (expense):

Loss on extinguishment of debt

(2,071) —

Interest income 3,951  3,878

Interest expense (8,039) (26,206)

Other expense, net (1,424) (1,340)

Loss from continuing operations before income taxes (381) (102,277)

Income tax benefit 4,841  20,323

Net income (loss)

$ 4,460  $ (81,954)

Less: Net income attributable to participating securities

6,053  —

Net loss attributable to Sphere Entertainment Co.’s stockholders $ (1,593) $ (81,954)

Basic loss per common share attributable to Sphere Entertainment Co.’s stockholders

$ (0.04) $ (2.27)

Diluted loss per common share attributable to Sphere Entertainment Co.’s stockholders $ (0.04) $ (2.27)

Weighted-average number of common shares outstanding:

Basic 35,878  36,110

Diluted 35,878  36,110

4

SPHERE ENTERTAINMENT CO.

ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO

ADJUSTED OPERATING INCOME (LOSS)

(In thousands)

(Unaudited)

The following is a description of the adjustments to operating income (loss) in arriving at adjusted operating income as described in this earnings release:

•Share-based compensation. This adjustment eliminates the compensation expense relating to restricted stock units, performance stock units and stock options granted under the Sphere Entertainment Employee Stock Plan, MSG Sports Employee Stock Plan, MSG Networks Employee Stock Plan, as amended and assumed by Sphere Entertainment, and Sphere Entertainment Non-Employee Director Plan.

•Depreciation and amortization. This adjustment eliminates depreciation and amortization of property and equipment and intangible assets.

•Restructuring charges. This adjustment eliminates costs related to termination benefits provided to certain executives and employees.

•Impairment and other losses (gains), net. This adjustment eliminates non-cash impairment charges and the impact of gains or losses from the disposition of assets or businesses.

•Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries. This adjustment eliminates costs related to mergers, debt work-outs and acquisitions, including litigation expenses.

•Amortization for capitalized cloud computing arrangement costs. This adjustment eliminates amortization of capitalized cloud computing arrangement costs.

•Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the Company's executive deferred compensation plan.

Three Months Ended

March 31,

2026 2025

Operating income (loss)

$ 7,202  $ (78,609)

Share-based compensation 13,910  21,595

Depreciation and amortization 84,367  84,229

Restructuring charges 3,414  1,841

Impairment and other losses, net 79  521

Merger, debt work-out, and acquisition related costs, net of insurance recoveries 87  4,791

Amortization for capitalized cloud computing arrangement costs 917  1,579

Remeasurement of deferred compensation plan liabilities —  21

Adjusted operating income $ 109,976  $ 35,968

5

SPHERE ENTERTAINMENT CO.

SEGMENT RESULTS

(In thousands)

(Unaudited)

BUSINESS SEGMENT RESULTS

Three Months Ended March 31, 2026

Sphere MSG Networks Total

Revenues $ 265,965  $ 120,447  $ 386,412

Operating expenses:

Direct operating expenses 99,226  70,421  169,647

Selling, general and administrative expenses 106,596  15,107  121,703

Depreciation and amortization 82,274  2,093  84,367

Impairment and other losses, net 79  —  79

Restructuring charges 2,673  741  3,414

Operating (loss) income $ (24,883) $ 32,085  $ 7,202

Reconciliation to adjusted operating income:

Share-based compensation 13,143  767  13,910

Depreciation and amortization 82,274  2,093  84,367

Restructuring charges 2,673  741  3,414

Impairment and other losses, net 79  —  79

Merger, debt work-out, and acquisition related costs, net of insurance recoveries 87  —  87

Amortization for capitalized cloud computing arrangement costs 917  —  917

Adjusted operating income $ 74,290  $ 35,686  $ 109,976

Three Months Ended March 31, 2025

Sphere MSG Networks Total

Revenues $ 157,545  $ 123,029  $ 280,574

Operating expenses:

Direct operating expenses 70,536  87,787  158,323

Selling, general and administrative expenses 96,404  17,865  114,269

Depreciation and amortization 82,005  2,224  84,229

Impairment and other losses, net 521  —  521

Restructuring charges 1,841  —  1,841

Operating (loss) income $ (93,762) $ 15,153  $ (78,609)

Reconciliation to adjusted operating income:

Share-based compensation 19,954  1,641  21,595

Depreciation and amortization 82,005  2,224  84,229

Restructuring charges 1,841  —  1,841

Impairment and other losses, net 521  —  521

Merger, debt work-out, and acquisition related costs, net of insurance recoveries 988  3,803  4,791

Amortization for capitalized cloud computing arrangement costs 1,579  —  1,579

Remeasurement of deferred compensation plan liabilities 21  —  21

Adjusted operating income $ 13,147  $ 22,821  $ 35,968

6

SPHERE ENTERTAINMENT CO.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

As of

March 31, December 31,

2026 2025

ASSETS

Current Assets:

Cash, cash equivalents, and restricted cash $ 630,151  $ 521,264

Accounts receivable, net 181,549  171,630

Related party receivables, current 20,215  24,457

Prepaid expenses and other current assets 71,655  92,824

Total current assets 903,570  810,175

Non-Current Assets:

Investments 37,650  38,725

Property and equipment, net 2,629,439  2,710,643

Right-of-use lease assets 88,851  91,372

Goodwill 344,772  344,772

Intangible assets, net 20,161  21,817

Other non-current assets 198,243  192,404

Total assets $ 4,222,686  $ 4,209,908

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable $ 36,484  $ 24,593

Accrued expenses and other current liabilities 427,060  431,477

Related party payables, current 11,404  14,301

Current portion of long-term debt, net 57,690  63,009

Operating lease liabilities, current 16,515  17,186

Deferred revenue 193,510  192,808

Total current liabilities 742,663  743,374

Non-Current Liabilities:

Long-term debt, net 752,700  767,439

Operating lease liabilities, non-current 111,463  113,824

Deferred tax liabilities, net 166,661  172,111

Other non-current liabilities 201,272  179,921

Total liabilities 1,974,759  1,976,669

Commitments and contingencies

Equity:

Class A Common Stock (a)

299  297

Class B Common Stock (b)

69  69

Additional paid-in capital 2,480,705  2,470,120

Treasury stock, at cost, 1,054 shares as of March 31, 2026 and December 31, 2025, respectively

(50,024) (50,024)

Accumulated deficit (181,981) (186,441)

Accumulated other comprehensive loss (1,141) (782)

Total stockholders’ equity 2,247,927  2,233,239

Total liabilities and equity $ 4,222,686  $ 4,209,908

_________________

(a)    Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 29,921 and 28,629 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively.

(b)    Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued and outstanding as of March 31, 2026 and December 31, 2025.

7

SPHERE ENTERTAINMENT CO.

SELECTED CASH FLOW INFORMATION

(In thousands)

(Unaudited)

Three Months Ended

March 31,

2026 2025

Net cash provided by operating activities $ 136,241  $ 6,348

Net cash used in investing activities (5,005) (17,570)

Net cash used in financing activities (22,263) (26,307)

Effect of exchange rates on cash, cash equivalents, and restricted cash (86) 98

Net increase (decrease) in cash, cash equivalents, and restricted cash

108,887  (37,431)

Cash, cash equivalents, and restricted cash at beginning of period 521,264  515,633

Cash, cash equivalents, and restricted cash at end of period $ 630,151  $ 478,202

8

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Indicate if registrant meets the emerging growth company criteria.

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Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.

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Two-character EDGAR code representing the state or country of incorporation.

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The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.

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The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.

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Local phone number for entity.

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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.

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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.

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Title of a 12(b) registered security.

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Name of the Exchange on which a security is registered.

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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.

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Trading symbol of an instrument as listed on an exchange.

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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.

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