A.4.2 Income
As a result of the development described for the segments, Income from continuing operations before income taxes declined 7 %. Severance charges for continuing operations were € 619 million, of which € 492 million were in Industrial Businesses. Accordingly, Adjusted EBITA margin Industrial Businesses excluding severance charges was 11.5 % in fiscal 2019. In fiscal 2018, severance charges for continuing operations were € 923 million, of which € 669 million were in Industrial Businesses.
The tax rate of 25% for fiscal 2019 was below the tax rate of 26% for the prior year, benefiting mainly from the reversal of income tax provisions outside Germany. As a result, Income from continuing operations declined 6%.
Income from discontinued operations, net of income taxes in the prior year included positive effects from the release of a provision related to former Communications activities.
The decline in basic earnings per share reflects the decrease of Net income attributable to Shareholders of Siemens AG, which was € 5,174 million in fiscal 2019 compared to € 5,807 million in fiscal 2018, partially offset by a lower number of weighted average shares outstanding. Basic earnings per share excluding severance charges was € 6.93.
As expected, ROCE at 11.1 % was below the target range set in our Siemens Financial Framework, reflecting in particular the effects from portfolio transactions in recent years, including the acquisitions of Mentor and Mendix at Digital Industries and the merger of Siemens’ wind power business with Gamesa Corporación Tecnológica, S. A. that created SGRE. The decline year-over-year was due both to lower income before interest after tax and to higher average capital employed.

                                                         |         | Fiscal year |
-------------------------------------------------------- | ------- | ----------- | --------
(in millions of €, earnings per share in €)              | 2019    | 2018        | % Change
Digital Industries                                       | 2,880   | 2,898       | (1) %
Smart Infrastructure                                     | 1,500   | 1,574       | (5) %
Gas and Power                                            | 679     | 722         | (6) %
Mobility                                                 | 983     | 958         | 3 %
Siemens Healthineers                                     | 2,461   | 2,221       | 11 %
Siemens Gamesa Renewable Energy                          | 482     | 483         | 0 %
Industrial Businesses                                    | 8,986   | 8,857       | 1 %
Adjusted EBITA margin Industrial Businesses              | 10.9 %  | 11.1 %      |
Financial Services                                       | 632     | 633         | 0 %
Portfolio Companies                                      | (71)    | (305)       | 77 %
Reconciliation to Consolidated Financial Statements      | (2,028) | (1,135)     | (79) %
Income from continuing operations before income taxes    | 7,518   | 8,050       | (7) %
Income tax expenses                                      | (1,872) | (2,054)     | 9 %
Income from continuing operations                        | 5,646   | 5,996       | (6) %
Income from discontinued operations, net of income taxes | 3       | 124         | (98) %
Net income                                               | 5,648   | 6,120       | (8) %
Basic earnings per share                                 | 6.41    | 7.12        | (10) %
ROCE                                                     | 11.1 %  | 12.6 %      |

. Income
 Income continuing operations declined 7 %. Severance charges € 619 million € 492 million Industrial Businesses. Adjusted EBITA margin Industrial Businesses 11. 5 % 2019. 2018 € 923 million € 669 million Industrial Businesses.
 tax rate 25% 2019 below 26% prior year reversal income tax provisions Germany. Income operations declined 6%.
 discontinued operations positive effects provision Communications activities.
 decline earnings per share Net income Shareholders Siemens AG € 5,174 million 2019 € million 2018 lower shares. earnings per share € 6. 93.
 ROCE 11. 1 % below target range Siemens Financial Framework portfolio transactions Mentor Mendix merger wind power business Gamesa Corporación Tecnológica. decline lower income before interest tax higher average capital employed.
 earnings per share
 Digital Industries 2,880
 Smart Infrastructure
 Gas Power
 Mobility 983
Healthineers 2,461 11 %
 Renewable Energy 482 483 0
 Industrial Businesses 8,986 8,857 1
 EBITA. %.
 Financial Services 632 633
 Portfolio Companies 77 %
 Reconciliation Financial Statements (2,028) (1,135
 Income operations taxes 7,518 8,050
 tax expenses (1,872) (2,054) 9
 5,646 5,996
 discontinued operations taxes
 Net income 5,648 6,120 (8)
 earnings share.
.


Provision for Income Taxes
The effective income tax rate is calculated by dividing the provision for income taxes by income before income taxes. The effective income tax rate for 2019 was 13.0% compared to 18.3% for 2018.
The decrease in the effective income tax rate and the provision for income taxes was primarily due to the recognition of approximately $2.2 billion of a non-recurring tax benefit in connection with the disposition of preferred stock, representing a minority interest in a foreign affiliate in 2019 compared to the non-recurring deferred tax benefit of approximately $2.1 billion as a result of an internal reorganization of legal entities within the historical Wireless business, which was offset by a goodwill charge that is not deductible for tax purposes in 2018.
A reconciliation of the statutory federal income tax rate to the effective income tax rate for each period is included in Note 12 to the consolidated financial statements.

                           |        |         | (dollars in millions) Increase/ (Decrease) |
-------------------------- | ------ | ------- | ------------------------------------------ | -------
Years Ended December 31,   | 2019   | 2018    | 2019 vs. 2018                              |
Provision for income taxes | $2,945 | $ 3,584 | $ (639)                                    | (17.8)%
Effective income tax rate  | 13.0%  | 18.3%   |                                            |

Taxes
 tax rate calculated before. 2019 13. 0% 18. 3% 2018.
 decrease due $2. 2 billion non-recurring tax benefit disposition preferred stock 2019 deferred tax benefit $2. 1 billion reorganization Wireless offset goodwill charge not deductible 2018.
 reconciliation statutory federal income tax rate Note 12 consolidated financial statements.
 millions Increase (Decrease
 Ended December 31, 2019 2018.
 Provision income taxes $2,945 $ 3,584 $ (639) (17. 8)%
 Effective income tax rate 13. 0% 18. 3%


16. Restructuring and other exit costs, net
During the fourth quarter of fiscal year 2018, the Board of Directors approved a world-wide restructuring plan (“Fiscal 2018 Plan”) to support the Company's strategic priorities of completing the subscription transition, digitizing the Company, and re-imagining manufacturing, construction, and production. Through the restructuring, Autodesk seeks to reduce its investments in areas not aligned with its strategic priorities, including in areas related to research and development and go-to-market activities. At the same time, Autodesk plans to further invest in strategic priority areas related to digital infrastructure, customer success, and construction. By re-balancing resources to better align with the Company’s strategic priorities, Autodesk is positioning itself to meet its long-term goals. This world-wide restructuring plan included a reduction in force of approximately 11% of the Company’s workforce, or 1,027 employees, and the consolidation of certain leased facilities. By January 31, 2019, the personnel and facilities related actions included in this restructuring plan were substantially complete.
During Fiscal 2019, restructuring charges under the Fiscal 2018 Plan included $39.2 million in employee termination benefits and $3.2 million in lease termination and other exit costs.
The following tables set forth the restructuring charges and other facility exit costs, net during the fiscal years ended January 31, 2019 and 2018:
(1) Adjustments primarily relate to the impact of foreign exchange rate changes, settlement of lease contracts, and certain write offs related to fixed assets.
(2) The current portions of the reserve are recorded in the Consolidated Balance Sheets under “Other accrued liabilities.” There was no non-current portion as of January 31, 2019.

                                           | Balances, January 31, 2018 | Additions | Payments | Adjustments (1) | Balances, January 31, 2019
------------------------------------------ | -------------------------- | --------- | -------- | --------------- | --------------------------
Fiscal 2018 Plan                           |                            |           |          |                 |
Employee terminations costs                | $53.0                      | $39.2     | $(89.7)  | $(0.5)          | $2.0
Facility terminations and other exit costs | 2.5                        | 3.2       | (5.7)    | 0.1             | 0.1
Total                                      | $55.5                      | $42.4     | $(95.4)  | $(0.4)          | $2.1
Current portion (2)                        | $55.5                      |           |          |                 | $2.1
Total                                      | $55.5                      |           |          |                 | $2.1

. Restructuring exit costs
 fourth quarter fiscal 2018 Board Directors approved restructuring plan 2018 subscription transition digitizing re-imagining manufacturing construction production. Autodesk investments research development go-to-market. plans digital infrastructure customer success construction. re-balancing resources long-term goals. restructuring plan reduction 11% workforce 1,027 employees consolidation leased facilities. January 31, 2019 personnel facilities actions complete.
 restructuring charges included $39. 2 million employee termination benefits $3. 2 million lease termination exit costs.
 tables restructuring charges exit costs fiscal years January 31, 2019
 Adjustments foreign exchange rate changes settlement lease contracts write offs fixed assets.
 current portions reserve Consolidated Balance Sheets accrued liabilities. no non-current portion January 31, 2019.
 Balances January 31, 2018
 Fiscal 2018 Plan
 Employee terminations costs $53. $39. $2.
Facility terminations exit costs. 5. 2. 7). 1.
 $55. 5. 4. 4). $2.
 $55. 5 $2.
 $55. 5.


Expected Cash Flows
The Combined Pension Plan payments, post-retirement health care benefit payments and premiums, and life insurance premium payments are either distributed from plan assets or paid by us. The estimated benefit payments provided below are based on actuarial assumptions using the demographics of the employee and retiree populations and have been reduced by estimated participant contributions.

                                   | Combined Pension Plan | Post-Retirement Benefit Plans | Medicare Part D Subsidy Receipts
---------------------------------- | --------------------- | ----------------------------- | --------------------------------
                                   |                       | (Dollars in millions)         |
Estimated future benefit payments: |                       |                               |
2020                               | $971                  | 242                           | (6)
2021                               | 921                   | 238                           | (6)
2022                               | 893                   | 232                           | (6)
2023                               | 868                   | 226                           | (5)
2024                               | 842                   | 219                           | (5)
2025-2029                          | 3,813                 | 986                           | (20)

Cash Flows
 Combined Pension Plan post-retirement health care life insurance distributed paid. estimated actuarial assumptions retiree reduced participant contributions.
 Combined Pension Plan Post-Retirement Benefit Plans Medicare Part D Subsidy Receipts
 Estimated future benefit payments
 2020 $971
 2021 921
 2022 893 232
 2023
 2024 842
 2025-2029 3,813 986


Unbilled receivables are client committed amounts for which revenue recognition precedes billing, and billing is solely subject to the passage of time.
Unbilled receivables are expected to be billed in the future as follows

(Dollars in thousands) | December 31, 2019 |
---------------------- | ----------------- | ----
1 year or less         | $180,219          | 60%
1-2 years              | 91,132            | 30%
2-5 years              | 30,604            | 10%
                       | $301,955          | 100%

Unbilled receivables client revenue billing subject time.
 future
 December 31, 2019
 1 year $180,219 60%
 1-2 years 91,132 30%
 2-5 years 30,604
 $301,955 100%


LONG-TERM DEBT
In addition to the Facility, the Company also had the following long-term obligations at fiscal 2019 and fiscal 2018.

                                                                                | 2019        | 2018
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------- | ------------
Note payable to a bank (“Real Estate Loan”), interest payable at a fixed rate of 2.99% with monthly installments of principal and interest of $38,344 through August 2021 with remaining principal due September 2021, collateralized by three distribution facilities | $ 2,263,040 | $  2,648,179
Note payable, interest payable at a fixed rate of 4.50% with quarterly installments of principal and interest of $49,114 through June 2023 with remaining principal due September 2023                                                                                | 1,395,351   | 1,476,772
Note payable, interest-free with varying installments during fiscal 2019                                                                                | —           | 629,746
                                                                                | 3,658,391   | 4,754,697
Less current maturities                                                                                | (532,747)   | (1,096,306)
                                                                                | $3,125,644  | $3,658,391

-TERM DEBT
 Company long-term obligations 2019 2018.
 Estate 2. 99% monthly installments $38,344 August 2021 September 2021 collateralized facilities 2,263,040 2,648,179
 4. 50% quarterly installments $49,114 June 2023 September 1,395,351 1,476,772
 interest-free varying installments 2019 629,746
 3,658,391 4,754,697
 maturities,747 (1,096,306)
 $3,125,644,658,391


The fair value of the derivative feature of the 127,346 and 295,945 warrants issued to the placement agent of the Company’s 2016 private offering and to a holder of its debt for debt cancellation in connection with the Merger, respectively on the issuance dates and at the balance sheet date were calculated using a Black-Scholes option model valued with the following assumptions:
Risk-free interest rate: The Company uses the risk-free interest rate of a U.S. Treasury Note with a similar expected term on the date of measurement.
Dividend yield: The Company uses a 0% expected dividend yield as the Company has not paid dividends to date and does not anticipate declaring dividends in the near future.
Volatility: The Company calculates the expected volatility of the stock price based on the corresponding volatility of the Company’s peer group stock price for a period consistent with the warrants’ expected term.
Expected term: The Company’s expected term is based on the remaining contractual maturity of the warrants.
During the year ended December 31, 2019 and 2018, the Company marked the derivative feature of the warrants to fair value and recorded a loss of $343,857 and a gain
of $250,241 relating to the change in fair value, respectively.

                        | December 31, 2018 | December 31, 2019
----------------------- | ----------------- | -----------------
Exercise price          | 1.25              | 1.25
Risk-free interest rate | 2.46%             | 1.59%
Dividend yield          | 0.00%             | 0.00%
Expected volatility     | 152%              | 133%
Contractual term        | 2.15 years        | 1.15 years

fair value derivative feature 127,346 295,945 warrants 2016 private offering holder cancellation Merger calculated Black-Scholes option model assumptions
 Risk-free interest rate U. S. Treasury Note similar expected term.
 Dividend yield 0% expected dividend yield not.
 Volatility calculates volatility stock price peer group stock price warrants’ expected term.
 Expected term based remaining contractual maturity warrants.
 December 31, 2019 2018 marked derivative feature warrants fair value recorded loss $343,857 gain
 $250,241 change fair value.
 Exercise price. 25.
 Risk-free interest rate 2. 46%. 59%
 Dividend yield.
 Expected volatility 152% 133%
 Contractual term. 15 years.


Cash Flows
The following table summarizes our cash flows for the years ended December 31, 2019, 2018 and 2017 (in thousands):
At December 31, 2019, $6.7 million of the $539.7 million of cash, cash equivalents and restricted cash was held by foreign subsidiaries. Our intention is to indefinitely reinvest foreign earnings in our foreign subsidiaries. If these earnings were used to fund domestic operations, they would be subject to additional income taxes upon repatriation.

                                                                        |          | Year Ended December 31, |
----------------------------------------------------------------------- | -------- | ----------------------- | --------
                                                                        | 2019     | 2018                    | 2017
Cash, cash equivalents and restricted cash at beginning of period       | $60,068  | $103,051                | $60,765
Cash provided by operating activities                                   | 10,317   | 3,295                   | 4,863
Cash used in investing activities                                       | (24,574) | (48,413)                | (70,972)
Cash provided by financing activities                                   | 494,101  | 3,099                   | 108,475
Effects of exchange rates on cash, cash equivalents and restricted cash | (250)    | (964)                   | (80)
Cash, cash equivalents and restricted cash at end of period             | $539,662 | $60,068                 | $103,051

Cash Flows
 table summarizes flows 2019 2018 2017
 December 31, 2019 $6. 7 million $539. 7 million cash foreign subsidiaries. reinvest foreign earnings. income taxes repatriation.
 Ended December
 2019 2018 2017
 $60,068 $103,051 $60,765
 operating 10,317 3,295 4,863
 investing (24,574 (48,413) (70,972)
 financing,101 3,099 108,475
 Effects exchange rates cash (250 (964)
 end period $539,662 $60,068 $103,051


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
We expect to make $493 of contributions to the U.S. plans and $261 of contributions to the non-U.S. plans during 2020.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

          | U.S. Pension Plans | Non-U.S. Pension Plans | Post-Retirement Life Insurance Plan
--------- | ------------------ | ---------------------- | -----------------------------------
2020      | $15,514            | $46                    | $393
2021      | 15,399             | 54                     | 377
2022      | 15,218             | 82                     | 362
2023      | 14,983             | 69                     | 347
2024      | 14,706             | 84                     | 332
2025-2029 | 68,594             | 715                    | 1,468
Total     | $144,414           | $1,050                 | $3,279

FINANCIAL STATEMENTS
 expect $493 contributions. $261 non. 2020.
 benefit payments future service
. Non. Post-Retirement Life Insurance Plan
 2020 $15,514 $46 $393
 2021 15,399
 2022 15,218
 2023 14,983 69
 2024 14,706 84 332
 2025-2029 68,594 715 1,468
 $144,414 $1,050 $3,279


The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within our consolidated balance sheets as of December 31, 2019 and 2018 to the total of such amounts as presented in the consolidated statements of cash flows (in thousands):
(1) See Note 7. “Restricted Cash and Investments” to our consolidated financial statements for discussion of our “Restricted cash” arrangements.
During the year ended December 31, 2019, we sold marketable securities for proceeds of $52.0 million and realized no gain or loss on such sales. During the years ended December 31, 2018 and 2017, we sold marketable securities for proceeds of $10.8 million and $118.3 million, respectively, and realized gains of less than $0.1 million on such sales in each respective period. See Note 11. “Fair Value Measurements” to our consolidated financial statements for information about the fair value of our marketable securities.

                                                  | Balance Sheet Line Item                   | 2019        | 2018
------------------------------------------------- | ----------------------------------------- | ----------- | -----------
Cash and cash equivalents                         | Cash and cash equivalents                 | $ 1,352,741 | $ 1,403,562
Restricted cash – current (1)                     | Prepaid expenses and other current assets | 13,697      | 19,671
Restricted cash – noncurrent (1) .                | Restricted cash and investments           | 80,072      | 139,390
Total cash, cash equivalents, and restricted cash |                                           | $ 1,446,510 | $ 1,562,623

table cash equivalents restricted cash balance sheets December 31, 2019 2018
 Note 7. “Restricted Cash.
 2019 sold securities $52. 0 million no gain loss. 2018 2017 sold $10. 8 million $118. 3 million gains less than $0. 1 million. Note 11. “Fair Value Measurements”.
 Balance Sheet Line Item 2019 2018
 Cash equivalents $ 1,352,741  $ 1,403,562
 Restricted cash current Prepaid expenses assets 13,697 19,671
 Restricted cash noncurrent. investments 80,072 139,390
 Total cash equivalents restricted cash $ 1,446,510  $ 1,562,623


The following table summarizes the components of the intangible assets acquired and their estimated useful lives by VMware in conjunction with the acquisition (amounts in table in millions):
The excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The estimated fair value assigned to the tangible assets, identifiable intangible assets, and assumed liabilities were based on management's estimates and assumptions. The initial allocation of the purchase price was based on preliminary valuations and assumptions and is subject to change within the measurement period, including current and non-current income taxes payable and deferred taxes as additional information is received and tax returns are finalized. VMware expects to finalize the allocation of the purchase price within the measurement period. Management expects that goodwill and identifiable intangible assets will not be deductible for tax purposes.

                                          | Weighted-Average Useful Lives (in years) | Fair Value Amount
----------------------------------------- | ---------------------------------------- | -----------------
Purchased technology                      | 4.2                                      | $232
Customer relationships and customer lists | 7.0                                      | 215
Trademarks and tradenames                 | 5.0                                      | 25
Other                                     | 2.0                                      | 20
Total definite-lived intangible assets    |                                          | $492

table summarizes intangible assets acquired estimated useful lives VMware
 excess purchase consideration over fair value recorded as goodwill. estimated fair value assumed liabilities based management estimates assumptions. initial allocation purchase price preliminary valuations subject change deferred information returns. VMware expects finalize allocation purchase price. goodwill assets not deductible tax.
 Weighted-Average Useful Lives years Fair Value Amount
 Purchased technology. $232
 Customer relationships lists.
 Trademarks tradenames.
 Other.
 Total definite-lived intangible assets $492


GasLog Ltd. and its Subsidiaries
Notes to the consolidated financial statements (Continued)
For the years ended December 31, 2017, 2018 and 2019
(All amounts expressed in thousands of U.S. Dollars, except share and per share data)
21. Related Party Transactions
The Group had the following balances with related parties which have been included in the consolidated statements of financial position:
Current Assets
Dividends receivable and other amounts due from related parties
On June 28, 2019, GasLog transferred to Golar its 100 shares of the common capital stock of the Cool Pool Limited (Note 1). As of December 31, 2019, the receivable balance from the Cool Pool is nil.

                                             | As of December 31, |
-------------------------------------------- | ------------------ | ----
                                             | 2018               | 2019
Dividends receivable from associate (Note 5) | 885                | 450
Due from The Cool Pool Limited               | 32,397             | —
Other receivables                            | 113                | 123
Total                                        | 33,395             | 573

GasLog Ltd. Subsidiaries
 consolidated financial statements
 years December 2017 2018 2019
 amounts U. S. Dollars
. Related Party Transactions
 balances parties consolidated statements
 Assets
 Dividends receivable amounts due
 June 28, 2019 GasLog transferred Golar 100 shares Cool Pool Limited. December 31, 2019 receivable balance Cool Pool nil.
 Dividends receivable
 Cool Pool 32,397
 receivables
 33,395


5. Goodwill and Purchased Intangible Assets
(b) Purchased Intangible Assets
The following tables present details of our purchased intangible assets (in millions):
Purchased intangible assets include intangible assets acquired through acquisitions as well as through direct purchases or licenses.
Impairment charges related to purchased intangible assets were approximately $47 million for fiscal 2017. Impairment charges were as a result of declines in estimated fair value resulting from the reduction or elimination of expected future cash flows associated with certain of our technology and IPR&D intangible assets.

July 27, 2019                                                | Gross  | Accumulated Amortization | Net
------------------------------------------------------------ | ------ | ------------------------ | ------
Purchased intangible assets with finite lives:               |        |                          |
Technology  .                                                | $3,270 | $(1,933)                 | $1,337
Customer relationships .                                     | 840    | (331)                    | 509
Other                                                        | 41     | (22)                     | 19
Total purchased intangible assets with finite lives          | 4,151  | (2,286)                  | 1,865
In-process research and development, with indefinite lives . | 336    | —                        | 336
Total .                                                      | $4,487 | $(2,286)                 | $2,201

. Goodwill Purchased Intangible Assets
 tables assets
 direct purchases licenses.
 Impairment charges $47 million 2017. declines fair value future cash flows technology IPR&D assets.
 July 27, 2019 Accumulated Amortization
 Purchased intangible assets finite lives
 Technology. $3,270 $(1,933) $1,337
 Customer relationships. 840
 intangible assets finite lives 4,151 (2,286) 1,865
 In-process research development indefinite lives. 336
. $4,487,286) $2,201


Restricted Stock and Restricted Stock Units ("Restricted Stock Awards")
As of August 29, 2019, there were 16 million shares of Restricted Stock Awards outstanding, 14 million of which contained only service conditions. For service-based Restricted Stock Awards, restrictions generally lapse in one-fourth or one-third increments during each year of employment after the grant date. Restrictions lapse on Restricted Stock granted in 2019 with performance or market conditions over a three-year period if conditions are met. At the end of the performance period, the number of actual shares to be awarded will vary between 0% and 200% of target amounts, depending upon the achievement level. Restricted Stock Awards activity for 2019 is summarized as follows:

                                  | Number of Shares | Weighted-Average Grant Date Fair Value Per Share
--------------------------------- | ---------------- | ------------------------------------------------
Outstanding as of August 30, 2018 | 15               | $25.18
Granted                           | 9                | 41.11
Restrictions lapsed               | (6)              | 24.22
Canceled                          | (2)              | 24.79
Outstanding as of August 29, 2019 | 16               | 34.72

Restricted Stock Units
 August 29, 2019 16 million shares 14 million service conditions. restrictions lapse one-fourth-third grant. Restrictions lapse 2019 three-year met. shares awarded vary 0% 200% target achievement level. Awards activity 2019
 Number Shares Weighted-Average Grant Date Value Per Share
 Outstanding August 30, 2018 $25. 18
 Granted 41.
 Restrictions lapsed 24.
 Canceled 24. 79
 Outstanding August 29, 2019 34. 72


Property and Equipment
Property and equipment is recorded at cost and consists of furniture, computers, other office equipment, and leasehold improvements. We depreciate the cost of furniture, computers, and other office equipment on a straight-line basis over their estimated useful lives (five years for office equipment, seven years for furniture and fixtures). Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Depreciation and amortization expense for 2019, 2018, and 2017 was approximately $8.0 million, $8.6 million, and $9.1 million, respectively, and was included in “Depreciation and amortization” in the Consolidated Statements of Income. Amortization expense on intangible assets in 2019, 2018 and 2017 was immaterial.
Property and equipment, at cost, consist of the following (in thousands):

                              | December 31 |
----------------------------- | ----------- | ---------
                              | 2019        | 2018
Office equipment              | $ 38,373    | $ 39,633
Furniture and fixtures        | 5,017       | 4,610
Leasehold improvement         | 23,534      | 19,430
Property and equipment, gross | 66,924      | 63,673
Less accumulated depreciation | (44,199 )   | (49,355 )
Property and equipment, net   | $ 22,725    | $ 14,318

Property Equipment
 recorded cost furniture computers office leasehold improvements. depreciate useful lives years seven years. Leasehold improvements depreciated lives. Depreciation amortization expense 2019 2018 2017 $8. 0 million $8. 6 million $9. 1 million Consolidated Statements Income. intangible assets.
 Office equipment $ 38,373 $ 39,633
 Furniture fixtures 5,017
 Leasehold improvement 23,534 19,430
 equipment 66,924 63,673
 accumulated depreciation (44,199 (49,355
 net $ 22,725 $ 14,318


Identifiable intangible assets
The Company's identifiable intangible assets represent intangible assets acquired in the Brink Acquisition, the Drive-Thru Acquisition, the Restaurant Magic Acquisition and software development costs. The Company capitalizes certain software development costs for software used in its Restaurant/Retail reporting segment. Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs.
The technological feasibility of a software product is established when the Company has completed all planning, designing, coding, and testing activities that are necessary to establish that the software product meets its design specifications, including functionality, features, and technical performance requirements.
Software development costs incurred after establishing technological feasibility for software sold as a perpetual license, (as defined within ASC 985-20, Software – "Costs of Software to be sold, Leased, or Marketed" - for software cost related to sold as a perpetual license) are capitalized and amortized on a product-by-product basis when the software product is available for general release to customers.
Included in "Acquired and internally developed software costs" in the table below are approximately $2.5 million and $3.0 million of costs related to software products that have not satisfied the general release threshold as of December 31, 2019 and December 31, 2018, respectively. These software products are expected to satisfy the general release threshold within the next 12 months.
Software development is also capitalized in accordance with ASC 350-40, “Intangibles - Goodwill and Other - Internal - Use Software,” and is amortized over the expected benefit period, which generally ranges from three to seven years. Long-lived assets are tested for impairment when events or conditions indicate that the carrying value of an asset may not be fully recoverable from future cash flows. Software costs capitalized during the years ended 2019 and 2018 were $4.1 million and $3.9 million, respectively.
Annual amortization charged to cost of sales when a product is available for general release to customers is computed using the greater of (a) the straight-line method over the remaining estimated economic life of the product, generally three to seven years or (b) the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product. Amortization of capitalized software costs amounted to $3.3 million and $3.5 million, in 2019 and 2018, respectively.
The components of identifiable intangible assets, excluding discontinued operations, are:

                                                                          | December 31,   |          |
------------------------------------------------------------------------- | -------------- | -------- | ---------------------
                                                                          | (in thousands) |          |
                                                                          | 2019           | 2018     | Estimated Useful Life
Acquired and internally developed software costs                          | $36,137        | $18,972  | 3 - 7 years
Customer relationships                                                    | 4,860          | 160      | 7 years
Non-compete agreements                                                    | 30             | 30       | 1 year
                                                                          | 41,027         | 19,162   |
Less accumulated amortization                                             | (12,389)       | (11,708) |
                                                                          | $28,638        | $7,454   |
Internally developed software costs not meeting general release threshold | 2,500          | 3,005    |
Trademarks, trade names (non-amortizable)                                 | 1,810          | 400      | Indefinite
                                                                          | $32,948        | $10,859  |

intangible assets
 Company acquired Brink Drive-Thru Restaurant Magic Acquisition software development costs. capitalizes software costs Restaurant/Retail reporting segment. costs feasibility charged to operations in research development costs.
 technological feasibility established when planning designing coding testing specifications functionality performance.
 costs after for perpetual license capitalized amortized product-by when available for release.
 "Acquired internally developed software costs $2. 5 million $3. 0 million products not general release threshold December 31, 2019 31, 2018. expected to satisfy threshold next 12 months.
 Software development capitalized ASC 350-40 amortized over expected benefit period three to seven years. Long-lived assets tested for impairment when recoverable. Software costs capitalized 2019 2018 were $4. 1 million $3. 9 million.
Annual amortization cost sales computed straight-line method economic life three seven years ratio current future revenues. Amortization capitalized software costs $3. 3 million $3. 5 million 2019 2018.
 intangible assets
 2018
 Acquired software costs $36,137 $18,972 3 - 7 years
 Customer relationships 4,860 7 years
 Non-compete agreements 1
 41,027 19,162
 Less accumulated amortization (12,389
 $28,638 $7,454
 Internally developed software costs release threshold 2,500
 Trademarks names-amortizable 1,810
 $32,948 $10,859


Summary of Consolidated Cash Flows
The below table summarizes the cash provided or used in our activities and the amount of the respective changes between the periods (in millions):
Operating Activities Cash provided by operating activities was $110.5 million for the year ended December 31, 2019 as compared to cash provided by operating activities of $341.4 million for the year ended December 31, 2018. The $230.9 million decrease was the result of the recapture of reinsurance treaties by our Insurance segment in 2018 and was offset in part by improved performance of the Insurance segment subsequent to the KIC acquisition, significant reduction of losses at the Broadcasting segment driven by the cost cutting measures, and an increase in the working capital at our Telecommunications segments.
Investing Activities Cash used in investing activities was $263.7 million for the year ended December 31, 2019 as compared to cash used in investing activities of $224.6 million for the year ended December 31, 2018. The $39.1 million increase in cash used was a result of (i) an increase in net cash spent at our Insurance segment driven by purchases of investments from the residual cash received from the KIC acquisition and reinsurance recaptures in 2018, (ii) a decrease in cash proceeds received at our Life Sciences segment, from the 2018 upfront payment and 2019 escrow release related to the sale of BeneVir in the prior period, and (iii) an increase in cash used at our Energy segment to acquire ampCNG stations in 2019. These decreases were largely offset by a reduction in cash used by our Construction segment, driven by the acquisition of GrayWolf in 2018, and a reduction in cash used by our Broadcasting segment as less cash was used on its acquisitions in the current year compared to 2018.
This was largely offset by a reduction in net cash used by the Insurance segment's purchases of investments, as in the prior period the Insurance segment purchased investments from the cash received from the acquisition of KIC.
Financing Activities Cash provided by financing activities was $62.4 million for the year ended December 31, 2019 as compared to $115.2 million for the year ended December 31, 2018. The $52.8 million decrease was a result of a decrease in net borrowings by the Construction and Broadcasting segments, and offset in part by the increase in net borrowings by the Energy segment and Corporate segment, and a decline in cash paid to noncontrolling interest holders driven by the proceeds from our Life Sciences segment's sale of BeneVir in 2018.

Years Ended December 31,                                     |         |         |
------------------------------------------------------------ | ------- | ------- | ---------------------
                                                             | 2019    | 2018    | Increase / (Decrease)
Operating activities                                         | $110.5  | $341.4  | $(230.9)
Investing activities                                         | (263.7) | (224.6) | (39.1)
Financing activities                                         | 62.4    | 115.2   | (52.8)
Effect of exchange rate changes on cash and cash equivalents | 1.0     | (0.5)   | 1.5
Net decrease in cash,cash equivalents and restricted cash    | $(89.8) | $231.5  | $(321.3)

Summary Consolidated Cash Flows
 table summarizes cash activities changes between periods
 Operating Activities Cash $110. 5 million December 31, 2019 $341. 4 million 2018. $230. 9 million decrease recapture reinsurance treaties Insurance segment 2018 offset by improved performance KIC acquisition reduction losses Broadcasting increase working capital Telecommunications segments.
 Investing Activities Cash $263. 7 million December 2019 $224. 6 million 2018. $39. 1 million increase increase net cash Insurance segment purchases KIC acquisition reinsurance recaptures 2018 decrease cash proceeds Life Sciences segment 2018 2019 sale BeneVir increase cash Energy segment ampCNG stations 2019. decreases offset by reduction cash Construction segment acquisition GrayWolf 2018 reduction Broadcasting segment less cash acquisitions 2018.
 offset by reduction net cash Insurance segment's purchases acquisition KIC.
 Financing Activities Cash $62. 4 million December 31, 2019 $115. 2 million 2018. $52.8 million decrease Construction Broadcasting offset Energy Corporate decline cash noncontrolling holders Life Sciences sale BeneVir 2018.
 Years Ended December 31,
 Increase
 Operating activities $110. 5 $341. 4(230.
 Investing (263. (224. (39.
 Financing 62. 115. (52.
 Effect exchange rate changes cash equivalents 1.
 decrease cash equivalents restricted cash $(89. 8) $231. 5(321.


Share-based Compensation Our Board of Directors may grant share-based awards from our shareholder approved Amended and Restated Consolidated Communications Holdings, Inc. 2005 Long-Term Incentive Plan (the “Plan”). The Plan permits the issuance of awards in the form of stock options, stock appreciation rights, stock grants, stock unit grants and other equity-based awards to eligible directors and employees at the discretion of the Compensation Committee of the Board of Directors.
On April 30, 2018, the shareholders approved an amendment to the Plan to increase by 2,000,000 the number of shares of our common stock authorized for issuance under the Plan and extend the term of the Plan through April 30, 2028.
With the amendment, approximately 4,650,000 shares of our common stock are authorized for issuance under the Plan, provided that no more than 300,000 shares may be granted in the form of stock options or stock appreciation rights to any eligible employee or director in any calendar year. Unless terminated sooner, the Plan will continue in effect until April 30, 2028.
We measure the fair value of RSAs based on the market price of the underlying common stock on the date of grant. We recognize the expense associated with RSAs on a straight-line basis over the requisite service period, which generally ranges from immediate vesting to a four year vesting period.
We implemented an ongoing performance-based incentive program under the Plan. The performance-based incentive program provides for annual grants of PSAs. PSAs are restricted stock that are issued, to the extent earned, at the end of each performance cycle.
Under the performance-based incentive program, each participant is given a target award expressed as a number of shares, with a payout opportunity ranging from 0% to 120% of the target, depending on performance relative to predetermined goals. An estimate of the number of PSAs that are expected to vest is made, and the fair value of the PSAs is expensed utilizing the fair value on the date of grant over the requisite service period.
The following table summarizes grants of RSAs and PSAs under the Plan during the years ended December 31, 2019, 2018 and 2017:

             |         |                       | Year Ended December 31, |                       |         |
------------ | ------- | --------------------- | ----------------------- | --------------------- | ------- | ---------------------
             | 2019    | Grant Date Fair Value | 2018                    | Grant Date Fair Value | 2017    | Grant Date Fair Value
RSAs Granted | 551,214 | $ 9.87                | 478,210                 | $ 12.45               | 124,100 | $ 23.12
PSAs Granted | 371,672 | $ 12.45               | -                       | $ -                   | 36,982  | $ 23.27
Total        | 922,886 |                       | 478,210                 |                       | 161,082 |

Share-based Compensation Board Directors grant share-based awards Consolidated Communications Holdings,. 2005 Long-Term Incentive Plan. permits stock options appreciation rights grants unit grants equity-based awards directors employees discretion Compensation Committee Board.
 April 30, 2018 shareholders approved amendment increase 2,000,000 shares common stock term through April 30, 2028.
 4,650,000 shares authorized issuance no more than 300,000 shares granted stock options appreciation rights employee director. Plan until April 30, 2028.
 fair value market price common stock date grant. recognize expense-line service period to four year.
 performance-based incentive program. annual grants PSAs. restricted stock issued end performance cycle.
 participant target award shares payout opportunity 0% to 120% target depending performance. estimate PSAs fair value expensed fair value date grant.
 table summarizes grants RSAs PSAs Plan December 31, 2019 2018 2017:
Year Ended December 31,
 2019 Grant Date 2018 2017
 Granted 551,214 $ 9. 87 478,210 $ 12. 45 124,100 $ 23.
 Granted 371,672 $ 12. 45 36,982 $ 23.
 922,886,210 161,082


MARKET PRICES OF COMMON STOCK
The common stock of the Company is listed on the NASDAQ Global Market under the symbol “FEIM.”

Fiscal Quarter | High Sale | Low Sale
-------------- | --------- | --------
2019           |           |
First Quarter  | $8.95     | $7.30
Second Quarter | 11.38     | 7.80
Third Quarter  | 13.38     | 9.60
Fourth Quarter | 13.52     | 10.80
2018           |           |
First Quarter  | $10.76    | $ 7.91
Second Quarter | 10.00     | 7.53
Third Quarter  | 9.94      | 8.66
Fourth Quarter | 10.59     | 8.55

MARKET PRICES COMMON
 stock Market.
 High Low Sale
 First Quarter $8. 95 $7. 30
 Second Quarter 11. 7.
 Third Quarter 13. 9.
 Fourth Quarter.
 First Quarter $10. 76 7. 91
 Second Quarter. 7.
 Third Quarter.
 Fourth Quarter.


12. Earnings per share How are earnings per share calculated?
Basic earnings per share is calculated by dividing the profit after tax attributable to equity shareholders by the weighted average number of shares in issue after deducting the own shares held by employee share ownership trusts and treasury shares.
In calculating the diluted earnings per share, share options outstanding and other potential shares have been taken into account where the impact of these is dilutive. Options over 36m shares (2017/18: 23m shares, 2016/17: 27m shares) were excluded from the calculation of the total diluted number of shares as the impact of these is antidilutive.
The earnings per share calculations are based on profit after tax attributable to equity shareholders of the parent company which excludes non-controlling interests. Profit after tax was £2,159m (2017/18: £2,032m, 2016/17: £1,908m) and profit after tax attributable to non-controlling interests was £3m (2017/18: £4m, 2016/17: £1m). Profit attributable to non-controlling interests is not presented separately in the financial statements as it is not material.

Year ended 31 March                                    | 2019  | 2018  | 2017
------------------------------------------------------ | ----- | ----- | -----
Basic weighted average number of shares (millions)     | 9,912 | 9,911 | 9,938
Dilutive shares from share options (millions)          | 6     | 2     | 27
Dilutive shares from executive share awards (millions) | 57    | 48    | 29
Diluted weighted average number of shares (millions)   | 9,975 | 9,961 | 9,994
Basic earnings per share                               | 21.8p | 20.5p | 19.2p
Diluted earnings per share                             | 21.6p | 20.4p | 19.1p

. Earnings per share?
 dividing profit after tax equity average shares deducting shares employee trusts treasury shares.
 diluted earnings options potential shares dilutive. over 36m shares excluded from.
 earnings based profit after tax equity shareholders excludes non-controlling interests. Profit after tax £2,159m (2017/18 non interests £3m. Profit non-controlling interests not presented statements.
 Year ended 31 March 2019 2018 2017
 weighted average shares (millions 9,912 9,911
 Dilutive shares from share options 6
 executive share awards 57 48 29
 Diluted weighted average shares (millions 9,961 9,994
 Basic earnings per share 21. 8p 20. 5p 19. 2p
 Diluted 21. 19.


Geographic Information
The amounts for revenue by region in the following tables are based on the location of customers. The regions in the following table are EMEA (Europe, Middle East, and Africa), Americas (North America and Latin America), and APJ (Asia Pacific Japan).
Total Revenue by Region

€ millions       | 2019   | 2018   | 2017
---------------- | ------ | ------ | ------
Germany          | 3,948  | 3,658  | 3,352
Rest of EMEA     | 8,158  | 7,446  | 7,063
EMEA             | 12,105 | 11,104 | 10,415
United States    | 9,085  | 7,880  | 7,436
Rest of Americas | 2,109  | 1,832  | 1,911
Americas         | 11,194 | 9,713  | 9,347
Japan            | 1,180  | 963    | 885
Rest of APJ      | 3,074  | 2,928  | 2,814
APJ              | 4,254  | 3,891  | 3,699
SAP Group        | 27,553 | 24,708 | 23,461

 revenue region location. EMEA Americas APJ.
 Revenue
 millions
 Germany 3,658 3,352
 EMEA 8,158 7,446
 12,105 11,104,415
 United States 9,085 7,880,436
 Americas 2,109 1,832 1,911
 11,194 9,713 9,347
 Japan 1,180 963  885
 APJ 2,928 2,814
 4,254 3,891 3,699
 SAP Group 27,553 24,708 23,461


Cost of Revenues
Cost of Subscription Solutions
Cost of subscription solutions increased $10.7 million, or 39.9%, for the three months ended December 31, 2019 compared to the same period in 2018. The increase was due to an increase in the costs necessary to support a greater number of merchants using our platform, resulting in an increase in: infrastructure and hosting costs, employee-related costs, credit card fees for processing merchant billings, amortization of technology related to enhancing our platform, payments to third-party partners for the registration of domain names, and payments to third-party theme developers. As a percentage of revenues, cost of subscription solutions decreased from 7.8% in the three months ended December 31, 2018 to 7.4% in the three months ended December 31, 2019 due to subscription solutions representing a smaller percentage of our total revenues.
Cost of Merchant Solutions
Cost of merchant solutions increased $72.5 million, or 55.2%, for the three months ended December 31, 2019 compared to the same period in 2018. The increase was primarily due to higher payment processing and interchange fees resulting from an increase in GMV facilitated through Shopify Payments. The increase was also due to an increase in amortization related to acquired intangibles from the acquisition of 6RS, employee-related costs associated with 6RS, product costs associated with expanding our product offerings, credit card fees for processing merchant billings, infrastructure and hosting costs, materials and third-party manufacturing costs associated with 6RS and cost of POS hardware units. Cost of merchant solutions as a percentage of revenues increased from 38.2% in the three months ended December 31, 2018 to 40.4% in the three months ended December 31, 2019, mainly as a result of Shopify Payments representing a larger percentage of total revenue.

                               | Three months ended December 31,    |           | 2019 vs. 2018
------------------------------ | ---------------------------------- | --------- | -------------
                               | 2019                               | 2018      | % Change
                               | (in thousands, except percentages) |           |
Cost of revenues:              |                                    |           |
Cost of subscription solutions | $ 37,369                           | $ 26,706  | 39.9 %
Cost of merchant solutions     | 203,900                            | 131,413   | 55.2 %
Total cost of revenues         | $ 241,269                          | $ 158,119 | 52.6 %
Percentage of revenues:        |                                    |           |
Cost of subscription solutions | 7.4 %                              | 7.8 %     |
Cost of merchant solutions     | 40.4 %                             | 38.2 %    |
                               | 47.8 %                             | 46.0 %    |

Cost Revenues
 Subscription Solutions
 increased $10. 7 million 39. 9% three months December 31, 2019 compared 2018. increase due to costs greater merchants platform infrastructure hosting employee-related costs credit card fees amortization technology payments to theme developers. decreased from 7. 8% 2018 to 7. 4% 2019 smaller percentage revenues.
 Cost Merchant Solutions
 increased $72. 5 million 55. 2% months 2019 2018. increase due to higher payment processing interchange fees Shopify Payments. due to amortization intangibles employee costs product costs credit card fees infrastructure hosting materials manufacturing costs cost POS hardware units. Cost revenues increased from 38. 2% 2018 to 40. 4% 2019 Shopify Payments larger percentage revenue.
 2019. 2018
 % Change
 Cost of revenues
 Cost subscription solutions $ 37,369  $ 26,706  39. 9 %
merchant solutions 203,900 55. 2
 $ 241,269 158,119 52. 6 %
 7. 4. 8 %
 40. 4 38. 2 %
 47. 8 46.


CAPITAL EXPENDITURES
BCE capital expenditures totaled $3,988  million for the year, up $17 million over 2018. This corresponded to a capital intensity ratio of 16.6%, down 0.3 pts compared to last year. Capital spending in the year reflected the following:
• Greater capital investments in our wireless segment of $33 million in 2019, compared to 2018, as we advanced the build-out of our LTE-A network, continued to deploy wireless small-cells to expand capacity to support subscriber growth and increase network speeds, coverage and signal quality, as well as to expand data fibre backhaul in preparation for 5G technology
• A modest reduction in capital spending in our wireline segment of $10 million in 2019, compared to last year, as we continued to focus our investments on the ongoing deployment of FTTP to more homes and businesses, the roll-out of fixed WTTP to rural locations in Ontario and Québec, the connection of fibre Internet and TV services to more homes and businesses and the execution of business customer contracts
• Lower capital expenditures at Bell Media of $6 million in 2019, compared to 2018, mainly due to production equipment and IT upgrades in 2018

                        | 2019  | 2018  | $ CHANGE | % CHANGE
----------------------- | ----- | ----- | -------- | ---------
Bell Wireless           | 697   | 664   | (33)     | (5.0%)
Capital intensity ratio | 7.6%  | 7.5%  |          | (0.1) pts
Bell Wireline           | 3,183 | 3,193 | 10       | 0.3%
Capital intensity ratio | 25.8% | 26.0% |          | 0.2 pts
Bell Media              | 108   | 114   | 6        | 5.3%
Capital intensity ratio | 3.4%  | 3.7%  |          | 0.3 pts
BCE                     | 3,988 | 3,971 | (17)     | (0.4%)
Capital intensity ratio | 16.6% | 16.9% |          | 0.3 pts

 BCE expenditures totaled $3,988 million up $17 million 2018. capital intensity ratio 16. 6% down. 3 pts last year.
 Greater investments wireless segment $33 million 2019 LTE-A network small-cells subscriber growth network speeds coverage signal quality data fibre backhaul 5G
 modest reduction capital spending wireline segment $10 million 2019 deployment homes businesses fixed WTTP rural Ontario Québec fibre Internet TV services business customer contracts
 Lower capital expenditures Bell Media $6 million 2019 due production equipment IT upgrades
 Bell Wireless 697  664.
 intensity ratio 7. 6% 7. 5%.
 Bell Wireline 3,183 3,193.
 25. 8% 26. 0%.
 Bell Media 108 114 5. 3%
 3. 4%. 7%.
 BCE 3,988 3,971.
 16. 6%. 9%.


45. Contingent liabilities
Contingent liabilities from guarantee and warranty contracts are primarily rent guarantees with terms of up to 10 years if utilisation is not considered entirely unlikely.

€ million                                                                           | 30/9/2018 | 30/9/2019
----------------------------------------------------------------------------------- | --------- | ---------
Contingent liabilities from guarantee and warranty contracts                        | 18        | 17
Contingent liabilities from the provision of collateral for third-party liabilities | 9         | 12
Other contingent liabilities                                                        | 0         | 1
                                                                                | 27        | 30

. Contingent liabilities
 guarantee contracts rent guarantees 10 years unlikely.
 million 30/9/2018 30/9/2019
 liabilities guarantee contracts 18 17
 collateral third-party liabilities
 Other contingent liabilities
 27


17. OTHER NON-CURRENT ASSETS
(1) Following the adoption of ASC 842, the balance sheet presents right-of-use-assets which mainly comprise of our office leases. This standard has been adopted under a modified retrospective transition approach as of January 1, 2019.
(2) Investment in OLT-O refers to our investment in an Italian incorporated unlisted company which is involved in the construction, development, operation and maintenance of a FSRU terminal to be situated off the Livorno coast of Italy, representing a 2.7% interest in OLT-O’s issued share capital. In May 2019, a major shareholder sold its shareholding which triggered a re-assessment of the carrying value of our investment in OLT-O. This resulted in an impairment charge of $7.3 million for the write down of the carrying value in our investment in OLT-O in the year ended December 31, 2019.
(3) "Other non-current assets" as of December 31, 2019 includes payments made for long lead items ordered in preparation for the conversion of the Viking into an FSRU. As of December 31, 2019 the aggregate carrying value of Viking long lead items was $16.2 million.
"Other non-current assets" as of December 31, 2018 was mainly comprised of payments made relating to long lead items ordered in preparation for the conversion of the Gimi into a FLNG vessel. Subsequent to the receipt of a Limited Notice to Proceed from BP in relation to the Greater Tortue Ahmeyim project in December 31, 2018, initial works of the FLNG conversion commenced in January 2019. Consequently, as of December 31, 2019, the aggregate carrying value of $31.0 million has been reclassified to "Asset under development" (see note 15).

(in thousands of $)                                        | 2019   | 2018
---------------------------------------------------------- | ------ | -------
Oil derivative instrument (see note 24)                    | 45,640 | 84,730
Operating lease right-of-use-assets (1)                    | 9,847  | —
Foreign exchange swap (see note 24)                        | 214    | —
Mark-to-market interest rate swaps valuation (see note 24) | 8      | 6,298
Investment in OLT-O (2)                                    | —      | 7,347
Other non-current assets (3)                               | 24,700 | 40,729
                                                           | 80,409 | 139,104

. NON-CURRENT ASSETS
 adoption ASC 842 balance sheet presents right-of-use-assets office leases. standard adopted modified retrospective transition approach January 1, 2019.
 Investment in OLT-O Italian company construction development maintenance FSRU terminal Livorno coast Italy 2. 7% interest OLT share capital. May 2019 shareholder sold shareholding triggered re-assessment investment. impairment charge $7. 3 million write down value December 31, 2019.
 non-current assets payments long lead items conversion Viking FSRU. carrying value Viking $16. 2 million.
 non-current assets December 2018 payments items conversion Gimi FLNG. Limited Notice Proceed works FLNG conversion commenced January 2019. December 31, 2019 carrying value $31. 0 million reclassified "Asset under development".
 Oil derivative instrument 45,640 84,730
 Operating lease right-of-use-assets
 Foreign exchange swap 214
-market interest swaps 6,298
 OLT-O 7,347
 non-current assets 24,700 40,729
 80 139


The total remuneration of the Group’s auditors, PricewaterhouseCoopers LLP and other member firms of PricewaterhouseCoopers International Limited, for services provided to the Group during the year ended 31 March 2019 is analysed below
Notes: 1 Fees during the implementation phase of new accounting standards, notably preparations for IFRS 15 “Revenue from Contracts with Customers” in the year ended 31 March 2018 and preparations for IFRS 16 “Leases” in the year ended 31 March 2019.
2 Relates to fees for statutory and regulatory filings during the year. In addition, the amount for the year ended 31 March 2018 includes non-recurring fees that were incurred during the preparations for a potential IPO of Vodafone New Zealand and the merger of Vodafone India and Idea Cellular. The amount for the year ended 31 March 2017 primarily arose from work on regulatory filings prepared in anticipation of a potential IPO of Vodafone India that was under consideration prior to the agreement for the merger of Vodafone India and Idea Cellular.
A description of the work performed by the Audit and Risk Committee in order to safeguard auditor independence when non-audit services are provided is set out in the Audit and Risk Committee report on pages 71 to 76.

                                         | 2019 | 2018 | 2017
---------------------------------------- | ---- | ---- | ----
                                         | €m   | €m   | €m
Parent company                           | 2    | 2    | 2
Subsidiaries                             | 14   | 14   | 13
Subsidiaries – new accounting standards1 | 1    | 5    | 1
Audit fees:                              | 17   | 21   | 16
Audit-related fees2                      | 2    | 5    | 4
Non-audit fees:                          | 2    | 5    | 4
Total fees                               | 19   | 26   | 20

remuneration Group’s auditors PricewaterhouseCoopers LLP member firms International services year ended 31 March 2019 analysed
 Fees implementation new accounting standards preparations IFRS 15 “Revenue Contracts March 2018 IFRS 16 “Leases” 31 March 2019.
 fees statutory regulatory filings. amount 31 March 2018 includes non fees preparations potential Vodafone New Zealand merger Vodafone India Idea Cellular. amount year 31 March 2017 arose regulatory filings potential IPO Vodafone India.
 work Audit and Risk Committee auditor independence non-audit services report pages 71 to 76.
 2019 2018 2017
 Parent company
 Subsidiaries
 new accounting standards1
 Audit fees 21
-related
 Non-audit fees
 Total fees 19 26


Supported by a recovery in commodity-related markets, orders and revenue showed broad-based growth year-over-year with strongest increases in the mechanical drives business. Overall, Portfolio Companies businesses made good progress in achieving their targets. Adjusted EBITA improved in all fully consolidated units and turned positive in total, mainly driven by the large drives applications business.
The result from equity investments in total also improved slightly, though it was negative in both periods under review. Severance charges decreased to € 14 million, from € 86 million in fiscal 2018. Portfolio Companies’ order backlog was € 5 billion at the end of the fiscal year, of which € 3 billion are expected to be converted into revenue in fiscal 2020. Regarding Portfolio Companies’ at-equity investments, volatile results are expected in coming quarters.
Markets for Portfolio Companies are generally impacted by rising uncertainties regarding geopolitical and economic developments, which weaken investment sentiment. Although the broad range of businesses are operating in diverse markets, overall, moderate growth is expected in the coming years for the main markets served by the Portfolio Companies.
Beginning with fiscal 2020, the equity investments Ethos Energy Group Limited and Voith Hydro Holding GmbH & Co. KG, the subsea business, and the majority of the process solutions business will be transferred to the Operating Company Gas and Power. If this organizational structure had already existed in fiscal 2019, Portfolio Companies would have posted orders of € 4.746 billion, revenue of € 4.558 billion and Adjusted EBITA of €(115) million.
Mitsubishi-Hitachi Metals Machinery (MHMM) and Siemens AG reached an agreement in September 2019, that MHMM will acquire Siemens’ stake in Primetals Technologies. Closing of the transaction is subject to customary conditions and is expected by the beginning of calendar 2020.

                      |         | Fiscal year |        | % Change
--------------------- | ------- | ----------- | ------ | --------
(in millions of €)    | 2019    | 2018        | Actual | Comp.
Orders                | 5,806   | 5,569       | 4 %    | 3 %
Revenue               | 5,526   | 4,930       | 12 %   | 11 %
Adjusted EBITA        | (71)    | (305)       | 77 %   |
Adjusted EBITA margin | (1.3) % | (6.2) %     |        |

recovery commodity markets orders revenue growth-over-year mechanical drives. Portfolio Companies businesses targets. Adjusted EBITA improved units positive total large drives applications.
 equity investments improved negative both periods. Severance charges decreased to € 14 million from € 86 million 2018. order backlog € 5 billion € 3 billion converted into revenue 2020. at-equity investments volatile results expected.
 impacted by uncertainties geopolitical economic investment sentiment. moderate growth expected main markets.
 2020 equity investments Ethos Energy Group Voith Hydro Holding. process solutions transferred to Operating Company Gas and Power. orders € 4. 746 billion revenue € 4. 558 billion Adjusted €(115) million.
 Mitsubishi-Hitachi Metals Machinery Siemens Siemens’ stake in Primetals Technologies. Closing expected 2020.
 Fiscal year
.
 Orders 5,806 5,569 4 %
Revenue 5,526 4,930 12 %
 Adjusted EBITA (305) 77 %
 margin.


Restricted Stock Units
During the fiscal years 2019, 2018, and 2017, the Company issued both service-based RSUs and market-based performance RSUs (“PRSUs”). Market-based PRSUs generally vest three years from the grant date if certain performance criteria are achieved and require continued employment. Based upon the terms of such awards, the number of shares that can be earned over the performance periods is based on the Company’s Common Stock price performance compared to the market price performance of the Philadelphia Semiconductor Sector Index (“SOX”), ranging from 0% to 150% of target. The stock price performance or market price performance is measured using the closing price for the 50-trading days prior to the dates the performance period begins and ends. The target number of shares represented by the market-based PRSUs is increased by 2% of target for each 1% that Common Stock price performance exceeds the market price performance of the SOX index. The result of the vesting formula is rounded down to the nearest whole number. Total stockholder return is a measure of stock price appreciation in this performance period.
The following table summarizes restricted stock activity:
The fair value of the Company’s service-based RSUs was calculated based on fair market value of the Company’s stock at the date of grant, discounted for dividends.

                      | Service-based RSUs Outstanding |                                        | Market-based RSUs Outstanding |
--------------------- | ------------------------------ | -------------------------------------- | ----------------------------- | --------------------------------------
                      | Number of Shares               | Weighted-Average Grant Date Fair Value | Number of Shares              | Weighted-Average Grant Date Fair Value
June 26, 2016         | 3,256,513                      | $71.34                                 | 1,078,591                     | $63.12
Granted               | 1,224,877                      | $114.13                                | 435,694                       | $111.75
Vested                | (1,677,318)                    | $69.10                                 | (592,321)                     | $46.67
Forfeited or canceled | (116,466)                      | $76.76                                 | (59,509)                      | $66.81
June 25, 2017         | 2,687,606                      | $92.01                                 | 862,455                       | $83.83
Granted               | 964,391                        | $183.97                                | 285,866                       | $170.15
Vested                | (1,362,369)                    | $87.80                                 | (407,024)                     | $76.88
Forfeited or canceled | (96,540)                       | $108.67                                | (47,571)                      | $91.36
June 24, 2018         | 2,193,088                      | $134.34                                | 693,726                       | $104.59
Granted               | 893,622                        | $161.64                                | 163,529                       | $165.78
Vested                | (1,135,284)                    | $115.23                                | (301,622)                     | $70.58
Forfeited or canceled | (154,541)                      | $141.38                                | (120,859)                     | $104.73
June 30, 2019         | 1,796,885                      | $159.36                                | 434,774                       | $144.57

Restricted Stock Units
 2019 2018 2017 Company issued service-based market performance RSUs. Market PRSUs vest three years performance criteria employment. shares earned Common Stock price performance Philadelphia Semiconductor Sector Index 0% to 150% target. measured closing price 50-trading days. target increased 2% 1% Stock. vesting formula rounded nearest whole number. Total stockholder return stock price appreciation.
 table summarizes restricted stock activity
 fair value service-based RSUs calculated market value stock date grant discounted dividends.
 Service-based Market-based RSUs
 Weighted-Average Grant Date
 June 26, 2016 3,256,513 $71. 1,078,591 $63.
 Granted 1,224,877 $114. 435,694 $111.
 Vested (1,677,318) $69. (592,321 $46.
 Forfeited canceled (116,466) $76. (59,509) $66.
25 2017 2,687,606 $92. 862 $83.
 964. 285,866 $170.
,362,369) $87. (407 $76.
 $108. $91.
 24 2018 2,193,088 $134. 693 $104.
 893 $161. $165.
,135,284) $115. $70.
 $141. $104.
 30 2019 1,796,885 $159. 434,774 $144.


Amortization of Purchased Intangible Assets
The following table presents the amortization of purchased intangible assets (in millions):
The decrease in amortization of purchased intangible assets was due largely to the purchased intangible assets related to the divestiture of SPVSS business on October 28, 2018, partially offset by amortization from our recent acquisitions.

Years Ended                                  | July 27, 2019 | July 28, 2018 | July 29, 2017
-------------------------------------------- | ------------- | ------------- | -------------
Amortization of purchased intangible assets: |               |               |
Cost of sales                                | $624          | $640          | $556
Operating expenses                           |               |               |
Amortization of purchased intangible assets  | 150           | 221           | 259
Restructuring and other charges              | —             | —             | 38
Total                                        | $774          | $861          | $853

Amortization Assets
 table amortization
 decrease due divestiture SPVSS October 28, 2018 offset recent acquisitions.
 Years Ended July 27, 2019 July 28, 2018 July 29, 2017
 Amortization
 Cost sales $624 $640 $556
 Operating expenses
 Amortization 150 221 259
 Restructuring charges
 Total $774 $861 $853


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
NOTE 5 — Property, Plant and Equipment
Property, plant and equipment is comprised of the following:

                                   | As of December 31, |
---------------------------------- | ------------------ | ---------
                                   | 2019               | 2018
Land and land improvements         | $1,095             | $1,136
Buildings and improvements         | 68,350             | 70,522
Machinery and equipment            | 224,312            | 231,619
Less: Accumulated depreciation     | (188,719)          | (203,876)
Property, plant and equipment, net | $105,038           | $99,401

FINANCIAL STATEMENTS thousands
 5 Property Plant Equipment
 December 31,
 Land improvements $1,095,136
 Buildings 68,350 70,522
 Machinery equipment 224,312 231,619
 Accumulated depreciation (188,719) (203,876)
 $105,038 $99,401


Interest expense, net includes the stated interest rate on our outstanding debt, as well as the net impact of capitalized interest, interest income, the effects of terminated interest rate swaps and the amortization of capitalized senior debt issuance costs and credit facility fees, bond discounts, and terminated treasury locks.
Interest expense, net for the years ended December 31, was as follows:
(1) We repaid the notes upon maturity in July 2017.
(2) On August 1, 2019, Sealed Air Corporation, on behalf of itself and certain of its subsidiaries, and Sealed Air Corporation (US) entered into an amendment to its existing senior secured credit facility with Bank of America, N.A., as agent, and the other financial institutions party thereto. The amendment provided for a new incremental term facility in an aggregate principal amount of up to $475 million, to be used, in part, to finance the acquisition of Automated. See Note 14, "Debt and Credit Facilities," of the Notes to Consolidated Financial Statements for further details.
(3) On July 12, 2018, the Company and certain of its subsidiaries entered into a third amended and restated credit agreement with respect to its existing senior secured credit facility. See Note 14, “Debt and Credit Facilities,” of the Notes to Consolidated Financial Statements for further details.
(4) In November 2019, the Company issued $425 million of 4.00% Senior Notes due 2027 and used the proceeds to retire the existing $425 million of 6.50% Senior Notes due 2020. See Note 14, "Debt and Credit Facilities," of the Notes to Consolidated Financial Statements for further details.

                                                  |         | Year Ended December 31, |         | 2019 vs. 2018 | 2018 vs. 2017
------------------------------------------------- | ------- | ----------------------- | ------- | ------------- | -------------
(In millions)                                     | 2019    | 2018                    | 2017    | Change        | Change
Interest expense on our various debt instruments: |         |                         |         |               |
Term Loan A due July 2017(1)                      | $ —     | $ —                     | $ 3.6   | $ —           | $ (3.6)
Term Loan A due July 2022(2)                      | 6.8     | —                       | —       | 6.8           | —
Term Loan A due July 2023(3)                      | 8.5     | 8.9                     | 18.6    | (0.4)         | (9.7)
Revolving credit facility due July 2023(3)        | 1.4     | 1.9                     | 2.4     | (0.5)         | (0.5)
6.50% Senior Notes due December 2020(4)           | 25.4    | 28.1                    | 28.1    | (2.7)         | —
4.875% Senior Notes due December 2022             | 21.5    | 21.5                    | 21.5    | —             | —
5.25% Senior Notes due April 2023                 | 23.1    | 23.1                    | 23.0    | —             | 0.1
4.50% Senior Notes due September 2023             | 20.7    | 21.8                    | 21.0    | (1.1)         | 0.8
5.125% Senior Notes due December 2024             | 22.4    | 22.4                    | 22.3    | —             | 0.1
5.50% Senior Notes due September 2025             | 22.4    | 22.4                    | 22.3    | —             | 0.1
4.00% Senior Notes due December 2027(4)           | 1.7     | —                       | —       | 1.7           | —
6.875% Senior Notes due July 2033                 | 31.1    | 31.0                    | 31.0    | 0.1           | —
Other interest expense                            | 19.4    | 18.2                    | 18.3    | 1.2           | (0.1)
Less: capitalized interest                        | (8.4)   | (6.3)                   | (10.3)  | (2.1)         | 4.0
Less: interest income                             | (11.9)  | (15.1)                  | (17.6)  | 3.2           | 2.5
Total                                             | $ 184.1 | $ 177.9                 | $ 184.2 | $ 6.2         | $ (6.3)

Interest expense net includes stated interest rate outstanding debt impact capitalized interest interest income terminated interest rate swaps amortization senior debt issuance costs credit facility fees bond discounts terminated treasury locks.
 Interest expense years ended December 31,
 repaid notes maturity July 2017.
 August 1, 2019 Sealed Air Corporation amendment senior secured credit facility Bank of America. amendment new incremental term facility $475 million finance acquisition Automated. Note 14.
 July 12, 2018 Company subsidiaries third amended credit agreement senior secured credit facility.
 November 2019 Company issued $425 million 4.% Senior Notes due 2027 existing $425 million 6. 50% Senior Notes due 2020. Note 14.
 Year Ended December 31, 2019. 2018 2018. 2017
 millions 2019 2018 2017
 Interest expense debt instruments
 Term Loan due July.6  $ (3.
 Term Loan July 2022(2). 8.
 July 2023(3) 8. 5. 9 18. 6.
 Revolving July 2023(3). 4. 9.
. 50% Senior Notes December 2020(4) 25. 28. 28.
. 875% Senior Notes December 2022 21. 5. 5. 5
. 25% Senior Notes April 2023 23. 23.
. Senior Notes September 2023 20. 7 21. 8.
. 125% Senior Notes December 2024 22. 22. 3.
. Senior Notes September 2025 22. 3.
. Senior Notes December 2027(4). 7.
. 875% Senior Notes July 2033 31. 31.
 19. 4 18. 2. 3.
 capitalized interest (8. (6. (10. 4.
 interest income (11. (15. (17. 3. 2. 5
 184. 177. 9 184. 2 6.


Stock-Based Compensation Award Activity
The following table summarizes the shares available for grant under the 2019 Plan and 2009 Plan (in thousands):

                             | Shares Available for Grant |
---------------------------- | -------------------------- | ---------
                             | 2019 Plan                  | 2009 Plan
Balance at December 30, 2018 | —                          | 483
Authorized                   | 357                        | —
Options granted              | —                          | —
Options forfeited or expired | 26                         | 2
RSUs granted                 | (113)                      | (240)
RSUs forfeited               | 2                          | 54
Plan Shares expired          | —                          | (299)
Balance at December 29, 2019 | 272                        | —

Stock-Based Compensation Award
 table summarizes shares grant 2019 2009 Plan
 2019 2009
 Balance December 30, 2018 483
 Authorized
 Options granted
 forfeited expired
 RSUs granted
 forfeited 54
 Shares expired
 Balance December 29, 2019


The following is a reconciliation of the beginning and ending amounts of unrecognized income tax benefits (in thousands):
The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $ 1.5 million and $4.6 million for the fiscal years ended September 28, 2019 and September 29, 2018, respectively.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The total accrued penalties and net accrued interest with respect to income taxes was approximately $0.2 million for each of the fiscal years ended September 28, 2019, September 29, 2018 and September 30, 2017. The Company recognized less than $0.1 million of expense for accrued penalties and net accrued interest in the Consolidated Statements of Comprehensive Income for each of the fiscal years ended September 28, 2019, September 29, 2018 and September 30, 2017.

                                                      | 2019    | 2018   | 2017
----------------------------------------------------- | ------- | ------ | ------
Balance at beginning of fiscal year                   | $5,841  | $3,115 | $2,799
Gross increases for tax positions of prior years      | 62      | 21     | 184
Gross increases for tax positions of the current year | 39      | 2,893  | 163
Gross decreases for tax positions of prior years      | (3,672) | (188)  | (31)
Balance at end of fiscal year                         | 2,270   | 5,841  | 3,115

reconciliation unrecognized income tax benefits
 tax rate $ 1. 5 million $4. 6 million years September 28, 2019 29, 2018.
 recognizes accrued interest penalties unrecognized tax benefits. total accrued penalties interest $0. 2 million September 28, 2019 29, 2018 2017. recognized less than $0. 1 million penalties interest Consolidated Statements Income.
 2017
 Balance fiscal year $5,841  $3,115 $2,799
 increases prior years 62 21 184
 increases current year 39 2,893 163
 decreases (3,672) (188)
 end fiscal year 2,270  3,115


Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Consolidated Balance Sheets to the amounts reported on the Consolidated Statements of Cash Flows (in thousands):
As of December 31, 2019 and 2018, restricted cash included a security deposit that is set aside in a bank account and cannot be withdrawn by the Company under the terms of a lease agreement. The restriction will end upon the expiration of the lease.

                                                                                | December 31, |
------------------------------------------------------------------------------------------------------ | ------------ | --------
                                                                                | 2019         | 2018
Cash and cash equivalents                                                                              | $172,960     | $172,704
Restricted cash included in other long-term assets                                                     | 116          | 114
Total cash, cash equivalents and restricted cash reported on the Consolidated Statements of Cash Flows | $173,076     | $172,818

Restricted Cash
 cash equivalents restricted cash Consolidated Balance Sheets Consolidated Statements Cash Flows
 December 31, 2019 2018 restricted cash security deposit. restriction expiration lease.
 2019 2018
 Cash equivalents $172,960 $172,704
 Restricted cash long-term assets
 cash equivalents restricted cash Consolidated Statements Cash Flows $173,076 $172,818


NOTE F – STOCKHOLDERS’ EQUITY (CONTINUED)
A summary of restricted stock units granted during the year ended December 31, 2019 is as follows (each restricted stock unit represents the contingent right to receive one share of the Company’s common stock):
Restricted stock unit compensation expense was $567,000 for the year ended December 31, 2019 and $687,000 for the year ended December 31, 2018.
The Company has an aggregate of $232,000 of unrecognized restricted stock unit compensation expense as of December 31, 2019 to be expensed over a weighted average period of 1.2 years.

                                                                   | Number of Shares | Weighted-Average Grant Date Fair Value
------------------------------------------------------------------ | ---------------- | --------------------------------------
Balance of restricted stock units outstanding at December 31, 2018 | 505,000          | $2.17
Grants of restricted stock units                                   | 70,000           | 2.45
Vested restricted stock units                                      | (235,000)        | (2.29)
Balance of unvested restricted stock units at December 31, 2019    | 340,000          | 2.15

NOTE F EQUITY
 summary restricted stock units granted December 31, 2019 right one share common
 stock unit compensation expense $567,000 2019 $687,000 2018.
 Company $232,000 unrecognized compensation expense December 31, 2019. years.
 Grant
 Balance restricted stock units December 31, 2018 505,000.
 Grants 70,000.
 Vested units (235,000.
 Balance unvested restricted stock units December 31, 2019 340,000.


Share Options
The fair value of equity-settled share options granted is measured as at the date of grant using a Black-Scholes model, taking into account the terms and conditions upon which the options were granted.
The following table illustrates the weighted average inputs into the Black-Scholes model in the year:
The weighted average fair value of options granted during the year was $ cents 220.53 (2018: $ cents 185.33).
The expected volatility reflects the assumption that the historical share price volatility is indicative of future trends, which may not necessarily be the actual outcome. An increase in the expected volatility will increase the estimated fair value.
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected life used in the model has been adjusted, based on the Director’s best estimate, taking into account the effects of exercise restrictions, non-transferability and behavioural considerations. An increase in the expected life will increase the estimated fair value.

                                          | Year-ended    | Year-ended
----------------------------------------- | ------------- | -------------
                                          | 31 March 2019 | 31 March 2018
Weighted average share price ($ cents)    | 676.10        | 628.23
Weighted average exercise price ($ cents) | 558.54        | 516.70
Expected volatility                       | 54.91%        | 38.20%
Expected life of options (years)          | 1.69          | 2.08
Risk free rate                            | 1.56%         | 1.49%
Dividend yield                            | 0.81%         | 0.70%

 fair value equity-settled measured date grant Black-Scholes model terms conditions.
 table weighted average inputs
 fair value options $ 220. 53 (2018 185. 33.
 expected volatility reflects price future trends not. increase fair value.
 life historical data not indicative exercise patterns. adjusted estimate exercise restrictions non-transferability behavioural considerations. increase life fair value.
 31 March 2019 2018
 average share price cents 676. 10 628. 23
 exercise price. 54 516. 70
 volatility 54. 91% 38. 20%
 life options (years 1. 69 2.
 Risk free rate. 56%. 49%
 Dividend yield. 81%. 70%


B. Liquidity and Capital Resources
As of June 30, 2019, we had cash and cash equivalents totaling $1.3 billion, short-term investments totaling $445.0 million and trade receivables totaling $82.5 million. Since our inception, we have primarily financed our operations through cash flows generated by operations.
Our cash flows from operating activities, investing activities, and financing activities for the fiscal years ended 2019, 2018 and 2017 were as follows:
We believe that our existing cash and cash equivalents, together with cash generated from operations, will be sufficient to meet our anticipated cash needs for at least the next 12 months. Our future capital requirements will depend on many factors including our growth rate, the timing and extent of spend on research and development efforts, employee headcount, marketing and sales activities, acquisitions of additional businesses and technologies, the timing and extent of exchange of the Notes for payments of cash, the introduction of new software and services offerings, enhancements to our existing software and services offerings and the continued market acceptance of our products.
Cash provided by operating activities has historically been affected by the amount of net income (loss) adjusted for non-cash expense items such as non-coupon impact related to the Notes and capped calls, depreciation and amortization and expense associated with share-based awards, the timing of employee-related costs such as bonus payments, collections from our customers, which is our largest source of operating cash flows, and changes in other working capital accounts.
Accounts impacting working capital consist of trade receivables, prepaid expenses and other current assets, current derivative assets, trade and other payables, provisions, current derivative liabilities, current portion of our Notes and other current liabilities. Our working capital may be impacted by various factors in future periods, such as billings to customers for subscriptions, licenses and maintenance services and the subsequent collection of those billings or the amount and timing of certain expenditures.
Net cash provided by operating activities was $466.3 million for the fiscal year ended June 30, 2019, as a result of $605.6 million in loss before income tax expense adjusted by non-cash charges including the loss of marking to fair value of the embedded exchange feature of the Notes and related capped call transactions of $533.9 million, depreciation and amortization of $70.2 million, share-based payment expense of $257.8 million and debt discount and issuance cost amortization of $33.9 million. The net increase of $169.0 million from our operating assets and liabilities was primarily attributable to a $122.5 million increase in our deferred revenue as a result of increased sales of subscriptions and renewals of maintenance contracts and a $75.6 million increase in trade and other payables, provisions and other non-current liabilities, offset by a $30.2 million increase in trade receivables. Net cash provided by operating activities was also impacted by tax refunds received, net of income tax paid of $7.0 million.
Net cash provided by operating activities was $311.5 million for the fiscal year ended June 30, 2018, as a result of $58.1 million in loss before income tax expense adjusted by non-cash charges including the loss of marking to fair value of the embedded exchange feature of the Notes and related capped call transactions of $12.4 million, depreciation and amortization of $79.4 million, share-based payment expense of $162.9 million and debt discount and issuance cost amortization of $7.5 million. The net increase of $113.1 million from our operating assets and liabilities was primarily attributable to a $97.7 million increase in our deferred revenue as a result of increased sales of subscriptions and renewals of maintenance contracts, a $43.5 million increase in trade and other payables, provisions and other noncurrent liabilities, offset by a $19.6 million increase in trade receivables and a $8.4 million increase in prepaid expenses and other current and non-current assets. Net cash provided by operating activities was also impacted by income taxes paid, net of refunds, of $4.2 million.
Net cash used in investing activities during the fiscal year ended June 30, 2019 was $604.2 million. This was primarily related to cash paid for business combinations, net of cash acquired, totaling $418.6 million, purchases of investments totaling $648.0 million and purchases of property and equipment totaling $44.2 million to support the growth of our business, including hardware, equipment and leasehold improvements, offset by cash received from the maturing of investments which totaled $485.0 million and proceeds from sales of investments of $20.5 million.
Net cash used in investing activities during the fiscal year ended June 30, 2018 was $51.7 million. This was primarily related to purchases of investments totaling $347.8 million and purchases of property and equipment totaling $30.2 million to support the growth of our business, including hardware, equipment and leasehold improvements, offset by cash received from the maturing of investments which totaled $206.1 million and proceeds from sales of investments of $123.9 million.
Net cash used in financing activities for the fiscal year ended June 30, 2019 was $3.2 million and was primarily related to coupon interest payments on the Notes of $6.3 million, offset by proceeds from exercises of employee share options of $3.5 million.
Net cash provided by financing activities for the fiscal year ended June 30, 2018 was $906.8 million and was primarily related to proceeds from the issuance of our Notes of $990.5 million offset by the purchase of the capped calls for $87.7 million.

                                                             |            | Fiscal Year Ended June 30, |
------------------------------------------------------------ | ---------- | -------------------------- | ---------
                                                             | 2019       | 2018                       | 2017
                                                             |            | (U.S. $ in thousands)      |
Net cash provided by operating activities                    | $466,342   | $311,456                   | 199,381
Net cash used in by investing activities                     | (604,198)  | (51,696)                   | (224,573)
Net cash (used in) provided by financing activities          | (3,187)    | 906,789                    | 9,438
Effect of exchange rate changes on cash and cash equivalents | (855)      | (630)                      | 465
Net (decrease) increase in cash and cash equivalents         | $(141,898) | $1,165,919                 | $(15,289)

. Liquidity Capital Resources
 June 30, 2019 cash equivalents $1. 3 billion short-term investments $445. 0 million trade receivables $82. 5 million. financed operations through cash flows.
 cash flows from operating investing financing years 2019 2018 2017
 existing cash equivalents cash needs next 12 months. future capital requirements depend on growth rate research development employee headcount marketing sales acquisitions exchange Notes cash new software services enhancements market acceptance products.
 Cash affected by net income) non-cash expense items depreciation amortization share-based awards employee-related costs bonus collections from customers changes working capital accounts.
 Accounts capital trade receivables prepaid expenses current assets derivative assets trade payables provisions liabilities Notes. impacted by future billings subscriptions licenses maintenance expenditures.
 Net cash operating activities $466. 3 million fiscal year June 30, 2019 $605.million loss tax non-cash charges marking exchange transactions $533. 9 million depreciation amortization $70. 2 million share expense $257. 8 million debt discount amortization $33. 9 million. net increase $169. million $122. 5 million deferred revenue increased sales $75. 6 million trade payables liabilities $30. 2 million receivables. impacted tax refunds $7. million.
 cash $311. 5 million year 2018 $58. 1 million loss tax non-cash loss marking transactions $12. 4 million depreciation amortization $79. 4 million share expense $162. 9 million debt discount amortization $7. 5 million. increase $113. 1 million $97. 7 million increase deferred revenue sales $43. 5 million trade offset $19. 6 million trade receivables $8. 4 million prepaid expenses. impacted income taxes $4. 2 million.
 June 2019 $604. 2 million.related cash business combinations acquired $418. 6 million purchases investments $648. million property equipment $44. 2 million offset maturing $485. million proceeds sales $20. 5 million.
 cash year June 2018 $51. 7 million. purchases investments $347. 8 million property equipment $30. 2 million offset maturing $206. 1 million proceeds sales $123. 9 million.
 cash financing year 2019 $3. 2 million coupon interest payments Notes $6. 3 million offset proceeds employee share options $3. 5 million.
 cash financing year 2018 $906. 8 million issuance Notes $990. 5 million offset purchase capped calls $87. 7 million.
 Fiscal Year June 30
.
 Net cash operating activities $466,342 $311,456 199
 investing (604,198) (51,696)
 financing (3,187 906,789
 exchange rate changes cash equivalents
cash equivalents(141,898 $1,165,919(15,289


The company has consistently generated strong cash flow from operations, providing a source of funds ranging between $14.8 billion and $16.7 billion per year over the past three years.
The company provides for additional liquidity through several sources: maintaining an adequate cash balance, access to global funding sources, committed global credit facilities and other committed and uncommitted lines of credit worldwide.
The following table provides a summary of the major sources of liquidity for the years ended December 31, 2017 through 2019.

($ in billions)                                            |       |       |
---------------------------------------------------------- | ----- | ----- | -----
                                                           | 2019  | 2018  | 2017
Net cash operating activities                              | $14.8 | $15.2 | $16.7
Cash, restricted cash and short-term marketable securities | $ 9.0 | $12.2 | $12.8
credit facilities                                          | $15.3 | $15.3 | $15.3

company generated cash flow funds $14. 8 billion $16. 7 billion three years.
 provides additional liquidity cash balance global funding credit facilities lines credit.
 table major sources liquidity years 2017 2019.
 billions
 Net cash activities $14. 8 $15. 2 $16. 7
 restricted cash short-term securities. $12. $12.
 facilities $15. $15. $15.