Reconciliations of total segment net revenues and total segment operating income to consolidated net revenues and consolidated income before income tax expense are presented in the table below (amounts in millions):
(1) Includes other income and expenses from operating segments managed outside the reportable segments, including our Distribution business. Also includes unallocated corporate income and expenses.
(2) Since certain of our games are hosted online or include significant online functionality that represents a separate performance obligation, we defer the transaction price allocable to the online functionality from the sale of these games and then recognize the attributable revenues over the relevant estimated service periods, which are generally less than a year. The related cost of revenues is deferred and recognized as an expense as the related revenues are recognized. This table reflects the net effect from the deferrals of revenues and recognition of deferred revenues, along with the related cost of revenues, on certain of our online enabled products.
(3) Intersegment revenues reflect licensing and service fees charged between segments.
(4) Reflects restructuring initiatives, which include severance and other restructuring-related costs.
(5) Reflects the impact of other unusual or unique tax‑related items and activities.

                                                                                | For the Years Ended December 31, |
------------------------------------------------------------------------------------------------ | -------------------------------- | ------
                                                                                | 2019                             | 2018
Reconciliation to consolidated net revenues:                                                     |                                  |
Segment net revenues                                                                             | $5,969                           | $6,835
Revenues from non-reportable segments (1)                                                        | 462                              | 480
Net effect from recognition (deferral) of deferred net revenues (2)                              | 101                              | 238
Elimination of intersegment revenues (3)                                                         | (43)                             | (53)
Consolidated net revenues                                                                        | $6,489                           | $7,500
Reconciliation to consolidated income before income tax expense:                                 |                                  |
Segment operating income                                                                         | $2,054                           | $2,446
Operating income (loss) from non-reportable segments (1)                                         | 24                               | 31
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2) | 52                               | 100
Share-based compensation expense                                                                 | (166)                            | (209)
Amortization of intangible assets                                                                | (203)                            | (370)
Restructuring and related costs (4)                                                              | (137)                            | (10)
Discrete tax-related items (5)                                                                   | (17)                             | —
Consolidated operating income                                                                    | 1,607                            | 1,988
Interest and other expense (income), net                                                         | (26)                             | 71
Loss on extinguishment of debt                                                                   | —                                | 40
Consolidated income before income tax expense                                                    | $1,633                           | $1,877

Reconciliations segment net revenues operating income consolidated before tax expense table
 Includes income expenses outside Distribution business. unallocated corporate income expenses.
 games online defer transaction price recognize revenues service periods less than year. related cost revenues deferred recognized expense. reflects net effect deferrals online products.
 Intersegment revenues reflect licensing service fees.
 Reflects restructuring initiatives severance costs.
 Reflects impact unusual tax‐related items activities.
 Years December
 Reconciliation to consolidated net revenues
 net revenues $5,969 $6,835
 Revenues from non-reportable segments
 Net effect deferred revenues
 Elimination intersegment revenues
 Consolidated net revenues $6,489 $7,500
 Reconciliation consolidated income before tax expense
 operating income $2,054 $2,446
 (loss) from non-reportable segments

 Share-based compensation (166) (209)
 Amortization intangible assets (203) (370)
 Restructuring costs (137)
 tax items
 Consolidated operating income 1,607 1,988
 Interest expense
 Loss extinguishment debt
 income tax $1,633 $1,877


34. Share-based payment continued
3.8 million share incentives were granted during 2019 (2018 2.7 million). The fair value of share incentives has been estimated as at the date of grant using the Black-Scholes binomial model. The following table gives the assumptions made in arriving at the share-based payment charge and the fair value:
The expected volatility was determined by calculating the historical volatility of the Company’s share price over the previous two years which management considers to be the period which is likely to be most representative of future volatility. The risk free rate is calculated by reference to UK government bonds.

                                        | 2019      | 2018
--------------------------------------- | --------- | -----
Weighted average share price (pence)    | 163.1     | 112.9
Weighted average exercise price (pence) | 0.0       | 0.0
Weighted average fair value (pence)     | 141.1     | 95.1
Expected volatility (%)                 | 31.6–32.8 | 30.6
Option life (years):                    |           |
– Performance Shares                    | 3.0       | 3.0
– Options and SARs                      | 10.0      | 10.0
Risk free rate (%)                      | 0.48-0.72 | 0.88
Dividend yield (%)                      | 2.5–3.0   | 3.0

. Share-based payment
. 8 million incentives granted 2019. 7 million. fair value estimated date grant Black-Scholes binomial model. table assumptions-based payment charge fair value
 expected volatility determined historical volatility share price future volatility. risk free rate UK government bonds.
 average share price 163. 112.
 exercise price.
 fair value 141. 95.
 Expected volatility (%) 31. 6–32. 30.
 Option life
 Performance Shares 3.
 Options SARs 10.
 Risk free rate.
 Dividend yield (%) 2. 5–3.


GWL Corporate Free Cash Flow(1)
Following the reorganization of Choice Properties to GWL, management evaluates the cash generating capabilities of GWL Corporate(2) based on the various cash flow streams it receives from its operating subsidiaries. As a result, the GWL Corporate free cash flow(1) is based on the dividends received from Loblaw, distributions received from Choice Properties and net cash flow contributions received from Weston Foods less corporate expenses, interest and income taxes paid. Lease payments are excluded from the calculation of GWL Corporate free cash flow(1) to normalize for the impact of the implementation of IFRS 16.
(i) Included in Other and Intersegment, GWL Corporate includes all other company level activities that are not allocated to the reportable operating segments, such as net interest expense, corporate activities and administrative costs. Also included are preferred share dividends paid.

For the quarters and years ended December 31          | Quarters ended |      | Yeas ended |
----------------------------------------------------- | -------------- | ---- | ---------- | -----
($ millions)                                          | 2019           | 2018 | 2019       | 2018
Weston Foods adjusted EBITDA(1)                       | 56             | 59   | 223        | 233
Weston Foods capital expenditures                     | (70)           | (91) | (194)      | (212)
Distributions from Choice Properties                  | 82             | 43   | 325        | 43
Dividends from Loblaw                                 | –              | –    | 233        | 212
Weston Foods income taxes paid                        | –              | (2)  | (7)        | (32)
Other                                                 | 64             | 21   | (41)       | (23)
GWL Corporate cash flow from operating businesses (1) | 132            | 30   | 539        | 221
GWL Corporate and financing costs (i)                 | (24)           | (33) | (109)      | (108)
Income taxes paid                                     | (4)            | (2)  | (19)       | (14)
GWL Corporate free cash flow (1)                      | 104            | (5)  | 411        | 99

GWL Corporate Free Cash Flow(1)
 reorganization Choice Properties GWL management evaluates cash generating GWL cash flow subsidiaries. GWL Corporate free cash based dividends Loblaw distributions Choice Properties cash Weston Foods less corporate expenses interest income taxes. Lease payments excluded IFRS 16.
 GWL Corporate includes company activities net interest expense corporate activities administrative costs. preferred share dividends.
 quarters years ended December 31
$ millions 2019
 Weston Foods EBITDA(1) 56 223 233
 capital expenditures (70) (194)
 Distributions Choice Properties
 Dividends from Loblaw
 Weston Foods income taxes paid
 GWL Corporate cash flow from operating businesses 132  30  539 221
 GWL Corporate financing costs (24)
 Income taxes paid
 Corporate free cash flow 411


NOTE 26 – EARNINGS PER SHARE AND DIVIDEND PER SHARE
When calculating diluted earnings per share for 2018 and 2017, RSUs have been omitted as they are out-of-the-money and thus anti-dilutive, but the RSUs may potentially dilute earnings per share in the future. Please refer to note 3 for information on the RSU share options.

                                                                                | 2019  | 2018  | 2017
------------------------------------------------------------------------------------ | ----- | ----- | ----
EARNINGS PER SHARE                                                                   |       |       |
Net profit/(loss) for the year (USDm)                                                | 166.0 | -34.8 | 2.4
Million shares                                                                       |       |       |
Weighted average number of shares                                                    | 74.3  | 73.4  | 62.3
Weighted average number of treasury shares                                           | -0.3  | -0.3  | -0.3
Weighted average number of shares outstanding                                        | 74.0  | 73.1  | 62.0
Dilutive effect of outstanding share options                                         | 0.0   | -     | -
Weighted average number of shares outstanding incl. dilutive effect of share options | 74.0  | 73.1  | 62.0
Basic earnings/(loss) per share (USD)                                                | 2.24  | -0.48 | 0.04
Diluted earnings/(loss) per share (USD)                                              | 2.24  | -0.48 | 0.04

NOTE 26 PER SHARE DIVIDEND
 calculating diluted earnings 2018 2017 RSUs omitted out-of-money anti-dilutive dilute earnings. note 3 RSU share options.
 2018 2017
 EARNINGS PER SHARE
 Net profit/(loss) year (USDm) 166. 8 2. 4
 Weighted average shares 74. 3 73. 4 62. 3
 treasury shares.
 shares 74. 73. 1 62.
 Dilutive effect share options.
. 74. 73. 62.
 earnings/(loss) per share (USD 2. 24. 48.
 Diluted earnings(loss 2. 24.


Operating Expenses
The following table highlights our operating expenses and operating loss as a percentage of net revenues:

                                                                  |               | Year Ended   |
----------------------------------------------------------------- | ------------- | ------------ | -------------
                                                                  | June 30,
2019 | June 30,2018 | June 30,
2017
Research and development                                          | 21.1%         | 18.7%        | 15.4%
Sales and marketing                                               | 28.7%         | 27.2%        | 26.8%
General and administrative                                        | 5.6%          | 5.2%         | 6.2%
Acquisition and integration costs, net of bargain purchase gain   | 0.3%          | 5.5%         | 2.2%
Restructuring charges, net of reversals                           | 0.5%          | 0.8%         | 1.5%
Amortization of intangibles                                       | 0.6%          | 0.9%         | 1.4%
Total operating expenses                                          | 56.8%         | 58.3%        | 53.5%
Operating (loss) income                                           | (1.5)%        | (3.9)%       | 1.0%

 table loss revenues
 30
 2019
 Research development 21. 1% 18. 7% 15.
 Sales marketing 28. 7% 27. 2% 26. 8%
 5. 6%. 6. 2%
 Acquisition integration costs bargain purchase gain.
 Restructuring charges reversals.
 Amortization intangibles.
 operating expenses 56. 8% 58. 3% 53. 5%
 Operating (loss income. 5)% (3. 9).


7 Employee benefits
Pension plans
The Company is accounting for pension costs in accordance with International Accounting Standard 19.
The disclosures shown here are in respect of the Company’s defined benefit obligations. Other plans operated by the Company were defined contribution plans.
The total expense relating to the Company’s defined contribution pension plans in the current year was £0.7m (2018: £0.6m).
At 31st December 2019 the post-retirement mortality assumptions in respect of the Company Defined Benefit Scheme follows 85%/96% (male/female) of SAPS S2, CMI 2017 projections with a long term trend of 1.25% p.a. At 31st December 2018 the postretirement mortality assumptions in respect of the Company Defined Benefit Scheme follows 85% of SAPS S2 Light base table for males and 96% of SAPS S2 base table for females with CMI Core Projection Model 2016 improvements commencing in 2007, subject to a 1.25% p.a. long-term trend. These assumptions are regularly reviewed in light of scheme-specific experience and more widely available statistics.
The financial assumptions used at 31st December were:
The assumptions used by the actuary are the best estimates chosen from a range of possible actuarial assumptions, which due to the timescale covered, may not necessarily be borne out in practice.

                             | Weighted-average assumptions used to define the benefit obligations |
---------------------------- | ------------------------------------------------------------------- | ----
                             | 2019                                                                | 2018
                             | %                                                                   | %
Rate of increase in salaries | 2.4                                                                 | 2.7
Rate of increase in pensions | 2.8                                                                 | 2.9
Rate of price inflation      | 2.9                                                                 | 3.2
Discount rate                | 2.1                                                                 | 2.7

Employee benefits
 Pension plans
 Company accounting pension costs International Accounting Standard 19.
 disclosures defined benefit obligations. defined contribution plans.
 total expense contribution pension plans current year £0. 7m (2018 £0. 6m.
 31st December 2019 post mortality assumptions 85%/96% SAPS S2 CMI 2017 projections long term trend 1. 25%. 31st December 2018 postretirement mortality assumptions 85% SAPS S2 96% females CMI Core Projection Model 2016 improvements 1. 25%. long-term trend. assumptions reviewed scheme-specific experience statistics.
 financial assumptions 31st December
 best estimates.
 Weighted-average assumptions benefit obligations
 increase salaries.
 increase pensions.
 price inflation.
 Discount.


Contract balances
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
Accrued income relates to the Group’s rights to consideration for services provided but not invoiced at the reporting date. Accrued income is transferred to receivables when invoiced.
Deferred income relates to advanced consideration received for which revenue is recognised as or when services are provided. Included within deferred income is £11.2m (2018: £nil) relating to consideration received from Auto Trader Auto Stock Limited (which forms part of the Group’s joint venture) for the provision of data services (note 16). Revenue relating to this service is recognised on a straight-line basis over a period of 20 years.

                                                               | 2019   | 2018
-------------------------------------------------------------- | ------ | -----
                                                               | £m     | £m
Receivables, which are included in trade and other receivables | 27.0   | 28.8
Accrued income                                                 | 28.0   | 26.7
Deferred income                                                | (13.2) | (1.8)

Contract balances
 table receivables assets liabilities contracts customers.
 Accrued income Group’s rights services not invoiced reporting date. transferred to receivables when invoiced.
 Deferred income advanced consideration revenue recognised. £11. 2m (2018 £nil) Auto Trader Auto Stock Limited joint venture data services. Revenue recognised straight-line 20 years.
 Receivables 27. 28.
 Accrued income. 26. 7
 Deferred income (13.


Options outstanding that are exercisable and that have vested and are expected to vest as of January 31, 2020 were as follows (outstanding options in thousands, aggregate intrinsic value in in millions):
(1) The aggregate intrinsic values represent the total pre-tax intrinsic values based on VMware's closing stock price of $148.06 as of January 31, 2020, which would have been received by the option holders had all in-the-money options been exercised as of that date.
The total fair value of VMware stock options that vested during the years ended January 31, 2020, February 1, 2019 and February 2, 2018 was $64 million, $35 million and $32 million, respectively. Total fair value of Pivotal stock options that vested during the years ended January 31, 2020, February 1, 2019 and February 2, 2018 was $27 million, $41 million and $23 million, respectively.
The VMware stock options exercised during the years ended January 31, 2020, February 1, 2019 and February 2, 2018 had a pre-tax intrinsic value of $103 million, $56 million, and $62 million, respectively. The Pivotal options exercised during the years ended January 31, 2020 and February 1, 2019 had a pre-tax intrinsic value of $278 million and $97 million, respectively, and was not material during the year ended February 2, 2018. The pre-tax intrinsic value of Pivotal options exercised during the year ended January 31, 2020 includes vested options that were settled in cash as part of the Pivotal acquisition.

                            |                     | VMware Stock Options |                                                         |
--------------------------- | ------------------- | -------------------- | ------------------------------------------------------- | ----------------------------
                            | Outstanding Options | Exercise Price       | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value(1)
Exercisable                 | 945                 | $47.24               | 3.81                                                    | $95
Vested and expected to vest | 2,589               | 56.13                | 6.41                                                    | 238

Options exercisable vested expected vest January 31, 2020 thousands aggregate value
 aggregate intrinsic values pre-tax VMware's closing stock price $148. 06 January 31, 2020 received options exercised.
 total fair value VMware stock options January 31, 2020 February 2019 2018 $64 million $35 million $32 million. Pivotal stock options $27 million $41 million $23 million.
 VMware stock options pre-tax intrinsic value $103 million $56 million $62 million. Pivotal options $278 million $97 million not material February 2 2018. value Pivotal options includes vested options settled cash acquisition.
 VMware Stock Options
 Outstanding Options Exercise Price Weighted- Average Contractual Term years Aggregate Intrinsic
 Exercisable 945 $47. 24 3. 81 $95
 Vested expected vest 2,589. 238


EBITDA: TORM defines EBITDA as earnings before financial income and expenses, depreciation, impairment, amortization and taxes. The computation of EBITDA refers to financial income and expenses which the Company deems to be equivalent to “interest” for purposes of presenting EBITDA. Financial expenses consist of interest on borrowings, losses on foreign exchange transactions and bank charges. Financial income consists of interest income and gains on foreign exchange transactions.
EBITDA is used as a supplemental financial measure by Management and external users of financial statements, such as lenders, to assess TORM's operating performance as well as compliance with the financial covenants and restrictions contained in the Company's financing agreements. TORM believes that EBITDA assists Management and investors by increasing comparability of the Company's performance from period to period. This increased comparability is achieved by excluding the potentially disparate effects of interest, depreciation, impairment, amortization and taxes. These are items that could be affected by various changing financing methods and capital structure and which may significantly affect profit/(loss) between periods. Including EBITDA as a measure benefits investors in selecting between investment alternatives.
EBITDA excludes some, but not all, items that affect profit/(loss), and these measures may vary among other companies and not be directly comparable. The following table reconciles EBITDA to net profit/ (loss), the most directly comparable IFRS financial measure, for the periods presented:

USDm                                            | 2019   | 2018  | 2017
----------------------------------------------- | ------ | ----- | -----
Reconciliation to net profit/(loss)             |        |       |
Net profit/(loss) for the year                  | 166.0  | -34.8 | 2.4
Tax                                             | 0.8    | 1.6   | 0.8
Financial expenses                              | 41.9   | 39.3  | 40.6
Financial income                                | -2.8   | -3.3  | -4.3
Depreciation                                    | 110.1  | 114.5 | 114.5
Impairment (reversal)/losses on tangible assets | -114.0 | 3.2   | 3.6
EBITDA                                          | 202.0  | 120.5 | 157.6

TORM defines earnings before financial income expenses depreciation impairment amortization taxes. computation refers financial income expenses equivalent to. expenses interest borrowings losses foreign exchange transactions bank charges. Financial income interest gains foreign exchange transactions.
 EBITDA supplemental financial measure TORM operating performance compliance financial covenants restrictions financing agreements. assists comparability performance. excluding interest depreciation impairment amortization taxes. affected financing methods capital structure affect profit/(loss) between periods. EBITDA benefits investors investment alternatives.
 excludes not items profit/ vary. table reconciles EBITDA to net profit periods
 2019 2018 2017
 Reconciliation to net profit/(loss)
 166. 2.
 Tax. 1.
 Financial expenses 41. 39. 40.
 Financial income -2. -3. -4.
 Depreciation 110. 114.
tangible assets -114. 3. 2.
 202. 120. 5 157.


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)
Credit risk
Credit risk is the risk that a counterparty will fail to discharge its obligations and cause a financial loss and arises from cash and cash equivalents, short-term investments, favorable derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including trade and other receivables, dividends receivable and other amounts due from related parties. The Group is exposed to credit risk in the event of non-performance by any of its counterparties. To limit this risk, the Group currently deals primarily with financial institutions and customers with high credit ratings.
For the year ended December 31, 2019, 70.0% of the Group’s revenue was earned from Shell (December 31, 2018 and December 31, 2017, 74.2% and 92.6%, respectively) and accounts receivable were not collateralized; however, management believes that the credit risk is partially offset by the creditworthiness of the Group’s counterparties. BG Group was acquired by Shell on February 15, 2016. This acquisition does not impact the contractual obligations under the existing charter party agreements. The Group did not experience significant credit losses on its accounts receivable portfolio during the three years ended December 31, 2019. The carrying amount of financial assets recorded in the consolidated financial statements represents the Group’s maximum exposure to credit risk. Management monitors exposure to credit risk, and they believe that there is no substantial credit risk arising from the Group’s counterparties.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.

                                                                | As of December 31, |
--------------------------------------------------------------- | ------------------ | -------
                                                                | 2018               | 2019
Cash and cash equivalents                                       | 342,594            | 263,747
Short-term investments                                          | 25,000             | 4,500
Trade and other receivables                                     | 20,244             | 24,900
Dividends receivable and other amounts due from related parties | 33,395             | 573
Derivative financial instruments                                | 15,188             | 4,001

GasLog Ltd. Subsidiaries
 consolidated financial statements
 years December 31, 2017 2018 2019
 amounts U. S. Dollars except
 Credit risk
 counterparty loss cash equivalents short-term investments derivative financial instruments deposits banks credit exposures receivables dividends. Group exposed credit risk non-performance. deals financial institutions customers high credit ratings.
 December 31, 2019 70. 0% revenue Shell 2018 2017 74. 2% 92. 6% accounts receivable not collateralized credit risk offset creditworthiness counterparties. BG Group acquired Shell February 15, 2016. obligations. credit losses receivable years 2019. financial assets maximum exposure credit risk. monitors no substantial credit risk counterparties.
 credit risk liquid funds derivative instruments limited counterparties banks high credit ratings.
 December
 2019
 Cash equivalents 342,594 263,747
 Short-term investments 25,000 4,500
receivables 20,244 24,900
 Dividends 33,395
 instruments 15,188 4


A reconciliation of the combined Canadian federal and provincial income tax rate with our effective income tax rate is as follows:
In Fiscal 2019, 2018 and 2017, respectively, substantially all the tax rate differential for international jurisdictions was driven by earnings in the United States.
The effective tax rate decreased to a provision of 35.2% for the year ended June 30, 2019, compared to 37.2% for the year ended June 30, 2018. The increase in tax expense of $11.1 million was primarily due to the increase in net income taxed at foreign rates of $10.7 million, an increase of $26.4 million in reserves for unrecognized tax benefits, an increase of $16.1 million arising on the introduction of BEAT in Fiscal 2019, and an increase of $16.3 million relating to the tax impact of internal reorganizations of subsidiaries, partially offset by a the reversal of accruals for undistributed United States earnings of $14.8 million, the Fiscal 2018 impact of United States tax reform of $19.0 million which did not recur in Fiscal 2019, an increase in tax credits for research and development of $9.7 million, an increase of $6.8 million in the release of valuation allowance, a decrease of $5.8 million in the impact of withholding taxes in Fiscal 2019. The remainder of the difference was due to normal course movements and non-material items.
In July 2016, we implemented a reorganization of our subsidiaries worldwide with the view to continuing to enhance operational and administrative efficiencies through further consolidated ownership, management, and development of our intellectual property (IP) in Canada, continuing to reduce the number of entities in our group and working towards our objective of having a single operating legal entity in each jurisdiction. A significant tax benefit of $876.1 million, associated primarily with the recognition of a net deferred tax asset arising from the entry of the IP into Canada, was recognized in the first quarter of Fiscal 2017. For more information relating to this, please refer to our Annual Report on Form 10-K for the year ended June 30, 2017.
As of June 30, 2019, we have approximately $242.3 million of domestic non-capital loss carryforwards. In addition, we have $387.6 million of foreign non-capital loss carryforwards of which $53.8 million have no expiry date. The remainder of the domestic and foreign losses expires between 2020 and 2039. In addition, investment tax credits of $58.6 million will expire between 2020 and 2039.

                                                   |          | Year Ended June 30, |
-------------------------------------------------- | -------- | ------------------- | ----------
                                                   | 2019     | 2018                | 2017
Expected statutory rate                            | 26.5%    | 26.5%               | 26.5%
Expected provision for income taxes                | $116,752 | $102,323            | $66,131
Effect of foreign tax rate differences             | (1,344)  | 2,352               | 8,647
Change in valuation allowance                      | (5,045)  | 1,779               | 520
Amortization of deferred charges                   | —        | 4,242               | 6,298
Effect of permanent differences                    | (577)    | 4,332               | 3,673
Effect of changes in unrecognized tax benefits     | 31,992   | 5,543               | 14,427
Effect of withholding taxes                        | 2,097    | 7,927               | 3,845
Difference in tax filings from provision           | (250)    | 1,321               | (7,836)
Effect of U.S. tax reform                          | —        | 19,037              | —
Effect of tax credits for research and development | (13,550) | (3,875)             | (2,643)
Effect of accrual for undistributed earnings       | (13,112) | (1,154)             | 5,613
Effect of Base Erosion and Anti-Abuse Tax (BEAT)   | 16,030   | —                   | —
Other Items                                        | 5,473    | (1)                 | 1,075
Impact of internal reorganization of subsidiaries  | 16,471   | —                   | (876,114)
                                                   | 154,937  | $143,826            | $(776,364)

Canadian
 2019 2018 2017 tax rate differential international driven earnings United States.
 effective tax rate decreased 35. 2% June 2019 37. 2% 2018. increase tax expense $11. 1 million due net income foreign rates $10. 7 million $26. 4 million reserves tax benefits $16. 1 million BEAT 2019 $16. 3 million reorganizations offset reversal accruals United States earnings $14. 8 million 2018 tax reform $19. 0 million increase tax credits research development $9. 7 million $6. 8 million valuation allowance decrease $5. 8 million withholding taxes. difference normal course movements non-material items.
 July 2016, reorganization subsidiaries efficiencies consolidated ownership intellectual property entities single entity each jurisdiction. tax benefit $876. 1 million net deferred tax IP recognized Fiscal 2017. Annual Report Form 10-K June 30 2017.
 June 30 2019 $242. 3 million domestic non-capital loss carryforwards.$387. 6 million foreign non-capital loss carryforwards $53. 8 million no expiry. remainder expires 2020 2039. investment tax credits $58. 6 million expire 2020 2039.
 Ended June 30
 statutory rate 26. 5%.
 income taxes $116,752 $102,323 $66,131
 foreign tax rate differences (1,344
 valuation allowance (5,045) 1,779
 Amortization deferred charges 4,242 6,298
 permanent differences 4,332 3,673
 unrecognized tax benefits 31,992 5,543 14,427
 withholding taxes 2,097 7,927 3,845
 tax filings 1,321
. tax reform
 tax credits research development
 undistributed earnings
 Base Erosion Anti-Abuse Tax 16,030
 reorganization subsidiaries
 $143,826


IFRS balance sheet items
Our total investment in joint ventures was £524.1 million at 31 December 2019 (which includes investments in joint ventures of £326.6 million and loans to joint ventures £197.5 million), a decrease of £299.8 million from 31 December 2018. The key driver in the year related to the share of loss of joint ventures of £158.9 million, which primarily included underlying earnings of £27.9 million and a property revaluation deficit of £182.9 million, a £200.7 million transfer of intu Puerto Venecia and intu Asturias to held for sale, partially offset by the residual interest in intu Derby of £93.9 million being classified as a joint venture.
We are exposed to foreign exchange movements on our overseas investments. At 31 December 2019 the exposure was 24 per cent of net assets attributable to shareholders, the increase from the 31 December 2018 exposure of 15 per cent being due to the property revaluation deficit in the UK. Adjusted for the disposals in intu Puerto Venecia and intu Asturias, this exposure would be reduced to 15 per cent.
1 A reconciliation from the IFRS consolidated balance sheet to the amounts presented above is provided in the presentation of information on page 159. A further reconciliation of EPRA NAV to IFRS net assets attributable to owners of intu properties plc is provided within EPRA measures on page 169.
2 Other assets and liabilities includes property, plant and equipment, other non-current assets, trade and other receivables, trade and other payables, current tax liabilities, deferred tax liabilities and other payables.
3 Relates primarily to our partner’s 40 per cent stake in intu Metrocentre. The amount is considered to be recoverable in view of the £195.4 million owed to the non-controlling interest (which is included in the Group’s borrowings in note 23).
4 Other adjustments relate to fair value of derivative financial instruments, fair value of convertible bonds, deferred tax on investment and development property, share of joint ventures’ adjusted items and non-controlling interest recoverable balance not recognised in EPRA NAV.
The key drivers in the decrease in IFRS net assets attributable to owners of intu properties plc of £1,907.5 million as well as the decrease in EPRA NAV of £1,969.8 million and EPRA NAV per share of 146 pence in the year are discussed below.
A Investment and development property
Investment and development property has decreased by £2,534.1 million:
—deficit on revaluation of £1,979.7 million (see E above within the income statement section)
—disposals in the year, including the part disposal of intu Derby in July 2019, transfer of intu Puerto Venecia and intu Asturias to assets held for sale (see B below) and sundry asset disposals
—capital expenditure of £129.2 million on projects enhancing the value and appeal of our centres, including £44.5 million on the Primark anchored intu Trafford Centre’s Barton Square extension, £14.5 million on the redevelopment of intu Broadmarsh and £11.2 million on the now completed leisure extension at intu Lakeside
B Joint ventures and other assets classified as held for sale
intu Puerto Venecia and intu Asturias were classified as joint ventures held for sale at 31 December 2019 and recognised at their expected net proceeds.
intu Puerto Venecia
In December 2019 the Group announced the disposal of its joint venture interest in intu Puerto Venecia to Generali Shopping Centre Fund S.C.S. SICAV-SIF and Union Investment Real Estate GMBH for €475.3 million (intu share €237.7 million), an 11 per cent discount to the June 2019 valuation. This is expected to complete in early April and deliver net proceeds to intu of around £95.4 million after repaying asset-level debt, working capital adjustments, fees and taxation.

£m                                                            | Notes | 2019      | 2018      | Change
------------------------------------------------------------- | ----- | --------- | --------- | ---------
Investment and development property                           | A     | 6,721.6   | 9,255.7   | (2,534.1)
Joint ventures and other assets classified as held for sale   | B     | 163.7     | –         | 163.7
Investment in associates                                      | C     | 53.7      | 65.6      | (11.9)
Net external debt                                             | D     | (4,498.4) | (4,867.2) | 368.8
Derivative financial instruments                              | E     | (286.9)   | (284.0)   | (2.9)
Other assets and liabilities2                                 |       | (307.7)   | (342.0)   | 34.3
Net assets                                                    |       | 1,846.0   | 3,828.1   | (1,982.1)
Non-controlling interest3                                     |       | 58.2      | (16.4)    | 74.6
IFRS net assets attributable to owners of intu properties plc |       | 1,904.2   | 3,811.7   | (1,907.5)
Other adjustments4                                            |       | 73.1      | 135.4     | (62.3)
EPRA NAV                                                      |       | 1,977.3   | 3,947.1   | (1,969.8)
EPRA NAV per share (pence)                                    | F     | 147p      | 293p      | (146)p

IFRS
 investment joint ventures £524. 1 million 31 December 2019 £326. 6 million loans £197. 5 decrease £299. 8 million 2018. loss £158. 9 million earnings £27. 9 million property revaluation deficit £182. 9 million £200. 7 million transfer intu Puerto Venecia Asturias residual interest intu Derby £93. 9 million.
 exposed foreign exchange overseas investments. 31 December 2019 exposure 24 per cent net assets increase 2018 15 per cent property revaluation deficit. disposals Puerto Venecia Asturias 15 per cent.
 reconciliation page 159. page 169.
 property plant equipment non assets trade receivables payables tax liabilities deferred tax liabilities.
 partner’s 40 per cent stake intu Metrocentre. recoverable £195. 4 million non-controlling interest.
 adjustments value derivative instruments convertible bonds deferred tax property joint non-controlling interest recoverable balance.
IFRS assets intu properties £1,907. 5 million EPRA NAV £1,969. 8 million per share 146 pence.
 Investment development property
 decreased £2,534. 1 million
 revaluation £1,979. 7 million
 intu Derby transfer intu Puerto Venecia Asturias assets
 expenditure £129. 2 million projects enhancing £44. 5 million Trafford Barton Square extension £14. 5 million redevelopment Broadmarsh £11. 2 million leisure extension Lakeside
 Joint ventures
 intu Puerto Venecia Asturias 31 December 2019 proceeds.
 disposal joint venture interest Puerto Venecia Generali Shopping Centre Fund. Union Investment Real Estate €475. 3 million share €237. 7 11 per cent discount June 2019 valuation. expected complete early April net proceeds £95. 4 million after repaying debt capital adjustments fees taxation.
 Investment development property.
 Joint ventures assets.163.
 Investment associates 53. 65. (11.
 debt (4,498. (4,867. 368. 8
 financial instruments (286. (284. (2.
 assets (307. (342. 34. 3
 assets 1,846. 3,828. (1,982.
 Non-controlling 58. (16. 74.
 IFRS assets properties 1,904. 3,811. (1,907.
 73. 135.
 EPRA NAV 1,977. (1,969. 8)
 NAV share


Restricted Stock Units (RSUs): RSUs represent the right to receive one share of NortonLifeLock common stock for each vested RSU upon the settlement date, subject to continued employment through each vesting date.
(1) Mr. Clark did not receive an RSU award for FY19.
(2) In FY19, Messrs. Taylor and Noviello, as FY18 NEOs, were granted a mix of PRUs and RSUs at 70% and 30%, respectively. All other executives, other than Mr. Clark, received a mix of PRUs and RSUs at 50% and 50%, respectively.

NEO                     | FY19 RSU Award Amount (#)(2) | Grant Date Value ($)
----------------------- | ---------------------------- | --------------------
Gregory S. Clark(1)     | 0                            | 0
Nicholas R. Noviello    | 95,416                       | 2,106,785
Amy L. Cappellanti-Wolf | 78,620                       | 1,683,254
Samir Kapuria           | 238,243                      | 5,100,783
Scott C. Taylor         | 61,339                       | 1,354,365

Stock Units right share NortonLifeLock stock employment.
. Clark RSU award FY19.
. Taylor Noviello granted PRUs RSUs 70% 30%. executives. RSUs 50%.
 FY19 RSU Award Amount Grant Value
 Gregory.
 Nicholas. Noviello 95,416 2,106,785
. Cappellanti-Wolf 78,620 1,683,254
 Samir Kapuria 238,243 5,100,783
 Scott. Taylor 61,339 1,354,365


Adoption of ASC 606
On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, applying the modified retrospective method to all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period.
The impact of adopting the standard primarily related to a change in the timing of revenue recognition for voyage charter contracts. In the past, the Company recognized revenue from voyage charters ratably over the estimated length of each voyage, calculated on a discharge-to-discharge basis.
Under the new standard, the Company recognizes revenue from voyage charters ratably over the estimated length of each voyage, calculated on a load-to-discharge basis. In addition, the adoption of ASC 606 resulted in a corresponding change in the timing of recognition of voyage expenses for voyage charter contracts.
The cumulative effect of the changes made to the Company's consolidated January 1, 2018 balance sheet for the adoption of ASC 606 was as follows:
For the year ended December 31, 2018, revenues increased by $1,418, net income increased by $1,101 and basic and diluted net income per share increased by $0.01 as a result of applying ASC 606.

                      | Balance at December 31, 2017 | Adjustments Due to ASC 606 | Balance at January 1, 2018
--------------------- | ---------------------------- | -------------------------- | --------------------------
Assets                |                              |                            |
Voyage receivables    | $24,209                      | $1,336                     | $25,545
Liabilities           |                              |                            |
Deferred income taxes | 83,671                       | (108)                      | 83,563
Equity                |                              |                            |
Accumulated deficit   | (265,758)                    | (1,228)                    | (266,986)

Adoption ASC 606
 January 1 2018 Company adopted ASC 606 Revenue Contracts modified retrospective method contracts not completed. Results presented ASC 606 prior amounts not adjusted accounting standards.
 impact revenue recognition voyage charter contracts. recognized revenue.
 new standard recognizes-to-discharge. ASC 606 timing voyage expenses.
 cumulative effect changes consolidated January 1, 2018 balance sheet ASC
 year December 31, 2018 revenues increased $1,418 net income $1,101 net income per share increased $0. 01 ASC 606.
 Balance December 31, 2017 Adjustments Due ASC 606 Balance January 1, 2018
 Assets
 Voyage receivables $24,209 $1,336 $25,545
 Liabilities
 Deferred income taxes 83,671 83,563
 Equity
 Accumulated deficit (265,758)


The determination of which country a particular sale is allocated to is based on the destination of the product shipment. No other individual country accounted for more than 10% of net revenue during these periods. Although a large percentage of the Company’s products is shipped to Asia, and in particular, China, the Company believes that a significant number of the systems designed by customers and incorporating the Company’s semiconductor products are subsequently sold outside Asia to Europe, Middle East, and Africa, or EMEA markets and North American markets.
Long-lived assets, which consists of property and equipment, net, leased right-of-use assets, intangible assets, net, and goodwill, by geographic area are as follows (in thousands):
(1) Amounts do not include leased right-of-use assets in the prior period due to the adoption of ASC 842 under the modified retrospective method with a cumulative effect adjustment to accumulated deficit as of January 1, 2019.

              | As of December 31, |            |          |
------------- | ------------------ | ---------- | -------- | ----------
              | 2019               |            | 2018(1)  |
              | Amount             | % of total | Amount   | % of total
United States | $385,302           | 85%        | $426,321 | 85%
Singapore     | 63,556             | 14%        | 71,945   | 14%
Rest of world | 5,034              | 1%         | 3,368    | 1%
Total         | $453,892           | 100%       | $501,634 | 100%

determination country sale destination product shipment. No country 10% net revenue. percentage products shipped to Asia China significant systems sold outside Asia Europe Middle East Africa EMEA North American markets.
 Long-lived assets property equipment net leased right-of-use assets intangible assets goodwill by geographic area
 Amounts include leased right-of-use assets ASC 842 modified retrospective method cumulative adjustment deficit as January 1, 2019.
 December 31,
 % of total
 United States $385,302 85% $426,321
 Singapore 63,556 14%
 Rest of world 5,034 1%
 Total $453,892 100% $501,634


NOTE 10 – FREIGHT RECEIVABLES
As of 31 December 2019, freight receivables included receivables at a value of USD 0.0m (2018: USD 0.0m 2017: USD 0.0m) that are individually determined to be impaired to a value of USD 0.0m (2018: USD 0.0m, 2017: USD 0.0m).
Management makes allowance for expected credit loss based on the simplified approach to provide for expected credit losses, which permits the use of the lifetime expected loss provision for all trade receivables. Expected credit loss for receivables overdue more than 180 days is 25%-100%, depending on category. Expected credit loss for receivables overdue more than one year is 100%.

USDm                                               | 2019 | 2018 | 2017
-------------------------------------------------- | ---- | ---- | ----
Analysis as of 31 December of freight receivables: |      |      |
Gross freight receivables:                         |      |      |
Not yet due                                        | 39.8 | 44.0 | 25.5
Due < 30 days                                      | 22.5 | 18.8 | 26.0
Due between 30 and 180 days                        | 25.3 | 20.5 | 18.4
Due > 180 days                                     | 6.0  | 4.4  | 2.7
Total gross                                        | 93.6 | 87.7 | 72.6
Allowance for expected credit loss                 | 3.7  | 1.7  | 1.3
Total net                                          | 89.9 | 86.0 | 71.3

10 FREIGHT RECEIVABLES
 31 December 2019 freight receivables USD 0. impaired USD 0.
 Management expected credit loss lifetime loss trade receivables. loss receivables overdue more 180 days 25%-100% depending category. overdue one year 100%.
 2019 2018 2017
 Analysis 31 December freight receivables
 freight receivables
 39. 8 44. 25.
 Due < 30 days 22. 18. 26.
 between 30 180 days 25. 20. 18.
 > 180 days 6. 4. 2.
 93. 87. 72.
 Allowance expected credit loss 3. 1. 1.
 89. 86. 71.


Note 9 Earnings per share
The following table shows the components used in the calculation of basic and diluted earnings per common share for earnings attributable to common shareholders.
(1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 61,170 in 2019 and 12,252,594 in 2018.

FOR THE YEAR ENDED DECEMBER 31                                               | 2019  | 2018
---------------------------------------------------------------------------- | ----- | -----
Net earnings attributable to common shareholders – basic                     | 3,040 | 2,785
Dividends declared per common share (in dollars)                             | 3.17  | 3.02
Weighted average number of common shares outstanding (in millions)           |       |
Weighted average number of common shares outstanding – basic                 | 900.8 | 898.6
Assumed exercise of stock options (1)                                        | 0.6   | 0.3
Weighted average number of common shares outstanding – diluted (in millions) | 901.4 | 898.9

Earnings per share
 table shows components basic diluted earnings common share.
 calculation includes future compensation cost dilutive options. excludes options price higher average market value common share. excluded options 61,170 2019 12,252,594 2018.
 YEAR ENDED DECEMBER 31 2019
 Net earnings shareholders 2,785
 Dividends per common share dollars 3. 17.
 Weighted average shares outstanding millions
 900. 898.
 Assumed stock options.
 diluted 901. 4 898.


Note 5: Income Taxes
On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including: a federal corporate rate reduction from 35% to 21%; limitations on the deductibility of interest expense and executive compensation; creation of the base erosion anti-abuse tax (“BEAT”), a new minimum tax; and the transition of U.S. international taxation from a worldwide tax system to a modified territorial tax system. The change to a modified territorial tax system resulted in a one-time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. (the “Transition Tax”), with future distributions not subject to U.S. federal income tax when repatriated. A majority of the provisions in the Tax Act are effective January 1, 2018.
In response to the Tax Act, the SEC staff issued guidance on accounting for the tax effects of the Tax Act. The guidance provides a one-year measurement period for companies to complete the accounting. The Company reflected the income tax effects of those aspects of the Tax Act for which the accounting is complete. To the extent a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, a company should record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act.
In connection with the Company's initial analysis of the impact of the Tax Act, the Company has recorded a provisional estimate of discrete net tax expense of $508,000 for the period ended December 31, 2017. This discrete expense consists of provisional estimates of zero expense for the Transition Tax, $173,000 net benefit for the decrease in the Company's deferred tax liability on unremitted foreign earnings, and $681,000 net expense for remeasurement of the Company's deferred tax assets and liabilities for the corporate rate reduction.
During the year ended December 31, 2018, we completed our accounting for the income tax effects of the Tax Act. We did not recognize any additional discrete net tax expense in addition to the provisional amounts recorded at December 31, 2017 for the enactment-date effects of the Tax Act, for a total of $508,000 of discrete net tax expense.
As of December 31, 2019, the Company is permanently reinvested in certain Non-U.S. subsidiaries and does not have a deferred tax liability related to its undistributed foreign earnings. The estimated amount of the unrecognized deferred tax liability attributed to future withholding taxes on dividend distributions of undistributed earnings for certain non-U.S. subsidiaries, which the Company intends to reinvest the related earnings indefinitely in its operations outside the U.S., is approximately $484,000 at December 31, 2019
The components of income before income tax expense are as follows (in thousands):

Year Ended December 31, |         |
----------------------- | ------- | ------
                        | 2019    | 2018
U.S.                    | $11,553 | $8,677
Foreign                 | (2,604) | (391)
                        | $8,949  | $8,286

5 Income Taxes
 December 22, 2017. government enacted Tax Cuts and Jobs Act. includes changes. corporate income tax system federal corporate rate reduction 35% to 21% limitations deductibility interest expense executive compensation base erosion anti-abuse tax new minimum tax transition. taxation worldwide to modified territorial tax system. one-time. tax liability earnings not repatriated. “Transition future distributions not subject. tax repatriated. provisions Act effective January 1, 2018.
 SEC staff issued guidance accounting tax effects. one-year measurement period accounting. tax effects. accounting incomplete record provisional estimate financial statements. If tax laws before Act.
 Company recorded provisional estimate discrete net tax expense $508,000 period ended December 31, 2017. zero expense Transition Tax $173,000 net benefit decrease deferred tax liability unremitted foreign earnings $681,000 expense remeasurement deferred tax assets liabilities corporate rate reduction.
year ended December 31, 2018 completed accounting income tax Tax Act. additional net tax expense December 31, 2017 total $508,000 tax expense.
 December 31, 2019 Company reinvested Non-U. S. subsidiaries deferred tax liability undistributed foreign earnings. estimated unrecognized deferred tax liability future taxes dividend distributions. approximately $484,000 December 31, 2019
 components income tax expense
 Year Ended December 31,
 U. S. $11,553 $8,677
 Foreign
 $8,949 $8,286


During the year ended 31 December 2019, the Company repurchased 3,486,700 shares on the Stock Exchange for an aggregate consideration of approximately HKD1.16 billion before expenses. The repurchased shares were subsequently cancelled. The repurchase was effected by the Board for the enhancement of shareholder value in the long term. Details of the shares repurchased are as follows:
Save as disclosed above and in Note 32 to the consolidated financial statements, neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company’s shares during the year ended 31 December 2019.

                          | Purchase consideration per share |            |            |
------------------------- | -------------------------------- | ---------- | ---------- | -------------
                          |                                  |            |            | Aggregate
                          | No. of shares                    | Highest    | Lowest     | consideration
Month of purchase in 2019 | purchased                        | price paid | price paid | paid
                          |                                  | HKD        | HKD        | HKD
August                    | 362,200                          | 327.00     | 312.40     | 116,330,916
September                 | 2,294,500                        | 351.00     | 323.60     | 776,104,729
October                   | 830,000                          | 327.80     | 317.40     | 268,272,462
Total:                    | 3,486,700                        |            |            | 1,160,708,107

31 December 2019 Company repurchased 3,486,700 shares Stock Exchange HKD1. 16 billion before. repurchased shares cancelled. repurchase Board enhancement shareholder value. shares repurchased
 neither Company subsidiaries purchased sold redeemed shares 31 December 2019.
 Purchase consideration per share
 No. shares Highest Lowest
 Month purchase 2019 price paid
 HKD
 August 362,200 327. 116,330,916
 September 2,294,500. 776,104,729
 October 830,000 327. 317. 268,272,462
 Total 3,486,700 1,160,708,107


ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
The following table presents our unaudited pro forma results for the acquisitions of Artesyn and LumaSense:
The unaudited pro forma results for all periods presented include adjustments made to account for certain costs and transactions that would have been incurred had the acquisitions been completed at the beginning of the year prior to the year of acquisition. These include adjustments to amortization charges for acquired intangible assets, interest and financing expenses, transaction costs, amortization of purchased gross profit and the alignment of various accounting policies. These adjustments are net of any applicable tax impact and were included to arrive at the pro forma results above.
Artesyn’s operating results have been included in the Advanced Energy’s operating results for the periods subsequent to the completion of the acquisition on September 10, 2019. During the year ended December 31, 2019, Artesyn contributed total sales of $220.3 million and net income of $7.1 million, including interest and other expense associated with the financing of the transaction.

                                                            |             |            | Year Ended December 31, |
----------------------------------------------------------- | ----------- | ---------- | ----------------------- | ----------
                                                            | 2019        |            | 2018                    |
                                                            | As Reported | Pro Forma  | As Reported             | Pro Forma
Total sales                                                 | $788,948    | $1,202,790 | $718,892                | $1,350,037
Net income attributable to Advanced Energy Industries, Inc. | $64,941     | $83,104    | $147,025                | $158,422
Earnings per share:                                         |             |            |                         |
Basic earnings per share                                    | $1.70       | $2.17      | $3.76                   | $4.05
Diluted earnings per share                                  | $ 1.69      | $ 2.16     | $ 3.74                  | $ 4.03

ADVANCED INDUSTRIES. FINANCIAL STATEMENTS share amounts
 table presents unaudited pro forma results acquisitions Artesyn LumaSense
 results include adjustments costs transactions. amortization assets interest financing expenses transaction costs amortization gross profit accounting policies. adjustments net tax impact forma results.
 Artesyn’s operating results included acquisition September 10, 2019. December 31, 2019 contributed sales $220. million net income $7. 1 million including interest financing.
 December
 Total sales $788,948 $1,202,790 $718,892 $1,350,037
 Net income Advanced Energy Industries. $64,941 $83,104 $147,025 $158,422
 Earnings per share
 Basic earnings $1. $2. 17 $3. 76 $4.
 Diluted earnings $ 1. 69 2. 16 3. 74.


Research and Development
Research and development expenses increased $24.2 million, or 31%, in 2019 as compared to 2018. The increase was principally due to the 2018 Reallocation of headcount from sales and marketing to research and development, as well as investments to maintain and improve the functionality of our products. As a result, we incurred increased employee-related costs of $16.3 million and increased overhead costs of $3.4 million.
Research and development expenses increased $15.0 million, or 24%, in 2018 as compared to 2017. The increase was principally due to the 2018 Reallocation of headcount from sales and marketing to research and development, as well as investments to maintain and improve the functionality of our products. As a result, we incurred increased employee-related costs of $12.1 million.

                         |          | Year Ended December 31, |
------------------------ | -------- | ----------------------- | -------
                         | 2019     | 2018                    | 2017
                         |          | (dollars in thousands)  |
Research and development | $101,151 | $76,981                 | $61,975
Percent of revenue       | 17.5%    | 14.3%                   | 12.9%

Research Development
 expenses increased $24. 2 million 31%, 2019 2018. due 2018 Reallocation headcount investments. employee-related costs $16. 3 million overhead costs $3. 4 million.
 expenses increased $15. million 24%, 2018 2017. due 2018 Reallocation investments. increased employee-related costs $12. 1 million.
 Ended December 31,
 2019 2018
 Research development $101,151 $76,981 $61,975
 Percent revenue 17. 5% 14. 3% 12. 9%


Property, Plant and Equipment.
Property, plant and equipment is stated at cost. Maintenance and repair costs are expensed as incurred. Depreciation is calculated using the straight-line method using estimated useful lives of 5 to 40 years for buildings and building improvements and 3 to 15 years for machinery and equipment. A summary of property, plant and equipment is shown below:
Depreciation expense was $27.2 million, $22.5 million and $22.0 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. As of April 27, 2019 and April 28, 2018, capital expenditures recorded in accounts payable totaled $6.4 million and $9.0 million, respectively.

(Dollars in Millions)                      | April 27, 2019 | April 28, 2018
------------------------------------------ | -------------- | --------------
Land                                       | $3.7           | $0.8
Buildings and Building Improvements        | 81.2           | 69.2
Machinery and Equipment                    | 390.7          | 364.7
Total Property, Plant and Equipment, Gross | 475.6          | 434.7
Less: Accumulated Depreciation             | 283.7          | 272.5
Property, Plant and Equipment, Net         | $191.9         | $162.2

Property Plant Equipment.
. Maintenance repair. Depreciation calculated straight-line method lives 5 40 years buildings improvements 3 15 years machinery. summary
 Depreciation $27. 2 million $22. 5 $22. million 2019 2018 2017. April 27, 2019 28, 2018 capital expenditures $6. 4 million $9. million.
 Land $3. $0.
 Buildings Improvements. 69.
 Machinery Equipment 390. 364.
 Equipment 475. 434.
 Accumulated Depreciation 283. 272.
 $191. $162.


ITEM 6. SELECTED FINANCIAL DATA
The selected consolidated statements of operations data for the years ended December 31, 2019, 2018 and 2017 and the selected consolidated balance sheet data as of December 31, 2019 and 2018 are derived from our audited consolidated financial statements included elsewhere in this Annual Report. The selected consolidated statements of operations data for the years ended December 31, 2016 and 2015 and the selected consolidated balance sheet data as of December 31, 2017, 2016 and 2015 are derived from our audited consolidated financial statements not included in this Annual Report. Our historical results are not necessarily indicative of the results to be expected in the future. The selected financial data should be read together with Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and in conjunction with our consolidated financial statements, related notes, and other financial information included elsewhere in this Annual Report. The following tables set forth our selected consolidated financial and other data for the years ended and as of December 31, 2019, 2018, 2017, 2016 and 2015 (in thousands, except share and per share data).
Information about prior period acquisitions that may affect the comparability of the selected financial information presented below is included in Item 1. Business. Information about the $28.0 million expense recorded in general and administrative expense in 2018, which relates to the agreement reached to settle the legal matter alleging violations of the Telephone Consumer Protection Act, or TCPA, and may affect the comparability of the selected financial information presented below, is disclosed in Item 3. “Legal Proceedings.” Information about the $1.7 million of interest recorded within interest income and the $6.9 million of gain recorded within other income, net, in 2019, which relates to promissory note proceeds received from one of our hardware suppliers and proceeds from an acquired promissory note, and may affect the comparability of the selected financial information presented below, is disclosed in Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations."
Certain previously reported amounts in the consolidated statements of operations for the years ended December 31, 2018, 2017, 2016 and 2015 have been reclassified to conform to our current presentation to reflect interest income as a separate line item, which was previously included in other income, net.

                                       |         |         | Year Ended December 31, |        |
-------------------------------------- | ------- | ------- | ----------------------- | ------ | ------
                                       | 2019    | 2018    | 2017                    | 2016   | 2015
Stock-based compensation expense data: |         |         |                         |        |
Sales and marketing                    | $2,075  | $1,196  | $561                    | $536   | $372
General and administrative             | 6,474   | 4,901   | 2,638                   | 1,430  | 2,486
Research and development               | 12,054  | 7,332   | 4,214                   | 2,035  | 1,266
Total stock-based compensation expense | $20,603 | $13,429 | $7,413                  | $4,001 | $4,124

ITEM 6. SELECTED FINANCIAL DATA
 consolidated statements December 31, 2019 2018 2017 balance sheet data derived from audited financial statements Annual Report. December 2016 2015 balance sheet derived from statements not. historical results not indicative future. data read with Item 7. "Management’s Discussion Analysis Financial Condition Results Operations consolidated financial statements notes other information. tables selected consolidated financial data years December 31, 2019 2018 2017 2016 2015 thousands except share per share data.
 Information prior period Item 1. Business. $28. 0 million expense general administrative expense 2018 agreement legal matter violations Telephone Consumer Protection Act disclosed Item 3. “Legal Proceedings. Information $1. 7 million interest interest income $6. 9 million gain other income 2019 promissory note proceeds acquired note disclosed Item 7. "Management’s Discussion Analysis Financial Condition Results Operations.
reported amounts 2018 2017 2016 2015 reclassified interest income.
 Ended December
 2018 2017 2016 2015
 Stock-based compensation expense
 Sales marketing $2,075 $1,196 $561
 General administrative 6,474 4,901 2,638 1,430
 Research development 12,054 7,332 4,214 2,035 1,266
 stock-based compensation expense $20,603 $13,429 $7,413 $4,001 $4,124


Share Repurchase Program
In both fiscal 2019 and 2018, our board of directors authorized increases of $1.5 billion in our share repurchase program. Common shares repurchased under the share repurchase program were as follows:
At fiscal year end 2019, we had $1.5 billion of availability remaining under our share repurchase authorization.

                                    |         | Fiscal        |
----------------------------------- | ------- | ------------- | -----
                                    | 2019    | 2018          | 2017
                                    |         | (in millions) |
Number of common shares repurchased | 12      | 10            | 8
Repurchase value                    | $ 1,014 | $ 966         | $ 621

Share Repurchase Program
 2019 2018 board directors authorized increases $1. 5 billion repurchase program. shares repurchased
 2019 $1. 5 billion remaining repurchase authorization.
 2018
 millions
 shares repurchased 12
 Repurchase value $ 1,014 $ 621


13. Intangible assets continued
Goodwill has been allocated to three CGUs, which align with the reportable operating segments, as follows:

                            | 2019      | 2018
--------------------------- | --------- | ---------
                            | $ million | $ million
Networks & Security         | 73.4      | 72.0
Lifecycle Service Assurance | 37.6      | 37.6
Connected Devices           | 46.1      | 46.1
                            | 157.1     | 155.7

. Intangible assets
 Goodwill allocated three CGUs segments
 2019 $ million
 Networks Security 73. 4 72.
 Lifecycle Service Assurance 37.
 Connected Devices 46.
 157. 155.


18. Trade and other receivables
Following the application of IFRS 16, trade and other receivables have been restated (note 2).
Trade receivables are amounts due from customers for services performed in the ordinary course of business. They are generally due for settlement within 30 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional and has been invoiced at the reporting date. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.
Accrued income relates to the Group’s rights to consideration for services provided but not invoiced at the reporting date. Accrued income is transferred to receivables when invoiced. Other receivables include £0.1m due from Auto Trader Auto Stock Limited, a related party (note 34).
Exposure credit risk and expected credit losses relating to trade and other receivables are disclosed in note 31.

                                                    | 2019  | (Restated) 2018
--------------------------------------------------- | ----- | ---------------
                                                    | £m    | £m
Trade receivables                                   | 27.0  | 28.8
Less: provision for impairment of trade receivables | (2.1) | (3.4)
Net trade receivables                               | 24.9  | 25.4
Accrued income                                      | 28.0  | 26.7
Prepayments                                         | 2.9   | 2.7
Other receivables                                   | 0.3   | 0.1
Total                                               | 56.1  | 54.9

. Trade receivables
 IFRS 16 restated.
 due customers services. due settlement within 30 days current. recognised unconditional invoiced reporting date. Group holds receivables collect contractual cash flows measures amortised cost effective interest method.
 Accrued income rights not invoiced reporting date. transferred to receivables when invoiced. receivables include £0. 1m due Auto Trader Stock Limited.
 credit risk credit losses disclosed note 31.
 (Restated 2018
 Trade receivables 27. 28.
 impairment receivables.
 Net trade receivables 24. 25.
 Accrued income 28. 26.
 Prepayments.
 Other receivables.
 56. 54.


The following table presents total stock-based compensation cost included in income from continuing operations.
Total unrecognized compensation cost related to non-vested awards at December 31, 2019 was $1.2 billion and is expected to be recognized over a weighted-average period of approximately 2.5 years.
Capitalized stock-based compensation cost was not material at December 31, 2019, 2018 and 2017.

($ in millions)                       |       |       |
------------------------------------- | ----- | ----- | -----
For the year ended December 31:       | 2019  | 2018  | 2017
Cost                                  | $100  | $82   | $91
Selling, general and administrative   | 453   | 361   | 384
Research, development and engineering | 126   | 67    | 59
Pre-tax stock-based compensation cost | 679   | 510   | 534
Income tax benefits                   | (155) | (116) | (131)
Net stock-based compensation cost     | $524  | $393  | $403

table stock-based compensation cost.
 unrecognized cost non-vested awards December 31, 2019 $1. 2 billion expected. years.
 Capitalized stock compensation cost December 2019 2018 2017.
 2019 2018
 $100 $82 $91
 Selling administrative 453
 Research development engineering
 Pre-tax stock compensation cost 510 534
 tax benefits
 Net stock-based compensation cost $524 $393


Goodwill activity for each period was as follows:
During the third quarter of 2018, we made an organizational change to combine our AI investments in edge computing with IOTG; accordingly, approximately $480 million of goodwill was reallocated from “all other” to the IOTG operating segment.
During the fourth quarters of 2019 and 2018, we completed our annual impairment assessments and we concluded that goodwill was not impaired in either of these years. The accumulated impairment loss as of December 28, 2019 was $719 million: $365 million associated with CCG, $275 million associated with DCG, and $79 million associated with IOTG.

(In Millions)                | Dec 29, 2018 | Acquisitions | Transfers | Other | Dec 28, 2019
---------------------------- | ------------ | ------------ | --------- | ----- | ------------
Data Center Group            | $5,424       | $1,758       | $—        | $—    | $7,155
Internet of Things Group     | 1,579        | —            | —         | —     | 1,579
Mobileye                     | 10,290       | —            | —         | —     | 10,290
Programmable Solutions Group | 2,579        | 67           | —         | 8     | 2,681
Client Computing Group       | 4,403        | —            | —         | (70)  | 4,333
All other                    | 238          | —            | —         | —     | 238
Total                        | $24,513      | $1,825       | $—        | $(62) | $26,276
(In Millions)                | Dec 30, 2017 | Acquisitions | Transfers | Other | Dec 29, 2018
Data Center Group            | $5,421       | $3           | $—        | $—    | $5,424
Internet of Things Group     | 1,126        | 16           | 480       | (43)  | 1,579
Mobileye                     | 10,278       | 7            | —         | 5     | 10,290
Programmable Solutions Group | 2,490        | 89           | —         | —     | 2,579
Client Computing Group       | 4,356        | 47           | —         | —     | 4,403
All other                    | 718          | —            | (480)     | —     | 238
Total                        | $24,389      | $162         | $—        | $(38) | $24,513

Goodwill activity period
 third quarter 2018 AI investments IOTG $480 million goodwill reallocated IOTG.
 fourth quarters 2019 2018 annual impairment assessments goodwill not impaired. accumulated impairment loss December 28, 2019 $719 million $365 million CCG $275 million DCG $79 million IOTG.
 Dec 29, 2018 Acquisitions Transfers
 Data Center Group $5,424  $1,758 $7,155
 Internet of Things Group 1,579
 10,290
 Programmable Solutions Group 2,579 2,681
 Client Computing Group 4,403
 $24,513  $1,825 $26,276
 30 2017 Acquisitions Transfers Dec 29, 2018
 Data Center Group $5,421
 Internet of Things Group 1,126 1,579
 10,278
 Programmable Solutions Group 2,490 2,579
Computing Group 4,356 47 4,403
 718 (480) 238
 $24,389 $162 $24,513


18. Geographic Information
Revenue by geography is based on the customer's billing address, and was as follows:
No individual international country represented more than 10% of total revenue in any period presented.

              | Year Ended December 31, |          |
------------- | ----------------------- | -------- | --------
              | 2019                    | 2018     | 2017
U.S.          | $1,979.6                | $1,723.9 | 1,504.5
International | 1,008.5                 | 936.2    | 727.4
              | $2,988.1                | $2,660.1 | $2,231.9

. Information
 Revenue based customer billing address
 No country 10% revenue.
 Ended December 31,
 2019 2018
. $1,979. $1,723. 1,504.
 1,008. 936. 727.
 $2,988. $2,660. $2,231.


Goodwill and Other Intangibles
In accordance with ASC 350, Intangibles – Goodwill and Other, the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level using the discounted cash flow valuation model and allocates goodwill to these reporting units using a relative fair value approach. During this assessment, management relies on a number of factors, including operating results, business plans, and anticipated future cash flows. The Company has identified its reportable segments, ACI On Premise and ACI On Demand, as the reporting units.
The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates, and cash flow projections are the most sensitive and susceptible to change, as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as company-specific risk factors. Operational management, considering industry and company-specific historical and projected data, develops growth rates and cash flow projections for each  flow estimates beyond the last projected period, assuming a constant WACC and low, long-term growth rates. If the recoverability test indicates potential impairment, the Company calculates an implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in a manner similar to how goodwill is calculated in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to the reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded to write down the carrying value. The calculated fair value substantially exceeded the current carrying value for all reporting units for all periods.
Changes in the carrying amount of goodwill attributable to each reporting unit during the year ended December 31, 2019, were as follows (in thousands):
(1) Goodwill from acquisitions relates to the goodwill recorded for the acquisition of E Commerce Group Products, Inc. ("ECG"), along with ECG's subsidiary, Speedpay, Inc. (collectively referred to as "Speedpay") and Walletron, Inc. ("Walletron"), as discussed in Note 3, Acquisition. The purchase price allocations for Speedpay and Walletron are preliminary as of December 31, 2019, and are subject to future changes during the maximum one-year measurement period.
Other intangible assets, which include customer relationships and trademarks and trade names, are amortized using the straight-line method over periods ranging from three years to 20 years. The Company reviews its other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

                                            | ACI On Demand | ACI On Premise | Total
------------------------------------------- | ------------- | -------------- | ----------
Gross Balance, prior to December 31, 2018   | $ 183,783     | $ 773,340      | $ 957,123
Total impairment prior to December 31, 2018 | —             | (47,432)       | (47,432 )
Balance, December 31, 2018                  | 183,783       | 725,908        | 909,691
Goodwill from acquisitions (1)              | 370,834       | —              | 370,834
Balance, December 31, 2019                  | $554,617      | $725,908       | $1,280,525

Goodwill Intangibles
 ASC 350 Company assesses goodwill impairment annually fourth quarter fiscal year October 1 balances. evaluates goodwill unit level discounted cash flow valuation model allocates relative fair value approach. relies factors operating results business plans future cash flows. reportable segments ACI On Premise ACI On Demand units.
 assumptions discounted cash flow valuation model discount rates growth rates cash flow projections terminal value rates. Discount rates growth cash flow projections sensitive change management judgment. Discount rates determined weighted average cost capital. considers market industry data company-specific risk factors. management develops growth rates cash flow projections constant WACC low long-term growth rates. recoverability test impairment calculates implied fair value goodwill. exceeds value no impairment. impairment charge recorded. calculated fair value exceeded current carrying value all reporting units periods.
Changes goodwill unit December 31, 2019
 Goodwill from acquisitions E Commerce Group Products. Speedpay. Walletron. Note. purchase price allocations Walletron preliminary December 31, 2019 subject to changes.
 intangible assets customer relationships trademarks names amortized three to 20 years. Company reviews intangible assets for impairment amount.
 Demand Premise
 Gross Balance December 31, 2018 $ 183,783  $ 773,340  $ 957,123
 Total impairment 2018
 Balance December 183,783 725,908 909,691
 Goodwill from acquisitions 370,834
 Balance December 31, 2019 $554,617  $725,908  $1,280,525


Dell purchases our products and services directly from us, as well as through our channel partners. Information about our revenue and receipts, and unearned revenue from such arrangements, for the periods presented consisted of the following (table in millions):
Sales through Dell as a distributor, which is included in reseller revenue, continues to grow rapidly.
Customer deposits resulting from transactions with Dell were $194 million and $85 million as of January 31, 2020 and February 1, 2019, respectively.

                                          |                  | Revenue and Receipts     |                  | Unearned Revenue |
----------------------------------------- | ---------------- | ------------------------ | ---------------- | ---------------- | ----------------
                                          |                  | For the Year Ended As of |                  | As of            |
                                          | January 31, 2020 | February 1, 2019         | February 2, 2018 | January 31, 2020 | February 1, 2019
Reseller revenue                          | $3,288           | $2,355                   | $1,464           | $3,787           | $2,554
Internal-use revenue                      | 82               | 41                       | 46               | 57               | 29
Collaborative technology project receipts | 10               | 4                        | —                | n/a              | n/a

Dell purchases products services channel partners. revenue receipts unearned revenue
 Sales Dell distributor rapidly.
 Customer deposits $194 million $85 million January 31, 2020 February 1, 2019.
 Revenue Receipts Unearned Revenue
 January 31, 2020 February 1, 2019
 Reseller revenue $3,288 $2,355 $1,464 $3,787 $2,554
 Internal-use revenue 82  41 | 46 | 57  29
 Collaborative technology project receipts 10 4


Note 15. Stock-Based Compensation
Stock-based compensation expense is included in the following line items in the consolidated statements of operations (in thousands):

                                       |         | Year Ended December 31, |
-------------------------------------- | ------- | ----------------------- | ------
Stock-based compensation expense data: | 2019    | 2018                    | 2017
Sales and marketing                    | $2,075  | $1,196                  | $561
General and administrative             | 6,474   | 4,901                   | 2,638
Research and development               | 12,054  | 7,332                   | 4,214
Total stock-based compensation expense | $20,603 | $13,429                 | $7,413

. Stock-Based Compensation
 statements
 Ended December 31,
 2019 2017
 Sales marketing $2,075 $1,196 $561
 General administrative 6,474 4,901 2,638
 Research development 12,054 7,332 4,214
 $20,603 $13,429 $7,413


Balance sheet
Under IAS 12 Income Taxes, provision is made for the deferred tax assets and liabilities associated with the revaluation of assets and liabilities at the corporate tax rate expected to apply to the Group at the time the temporary differences are expected to reverse. For those UK assets and liabilities benefiting from REIT exemption the relevant tax rate will be 0 per cent (2018: 0 per cent), and for other UK assets and liabilities the relevant rate will be 19 per cent if the temporary difference is expected to be realised before 1 April 2020 and 17 per cent if it is expected to be realised on or after 1 April 2020 (2018: 19 per cent before 1 April 2020, 17 per cent thereafter). For Spanish assets and liabilities the relevant tax rate will be 25 per cent (2018: 25 per cent).
Movements in the provision for deferred tax:
The net deferred tax provision of £0.9 million predominantly arises in respect of the revaluation of development property at intu Costa del Sol, partially offset by associated tax losses.

£m                                       | Investment and development property | Other temporary differences | Total
---------------------------------------- | ----------------------------------- | --------------------------- | ------
Provided deferred tax provision/(asset): |                                     |                             |
At 1 January 2018                        | 24.6                                | (0.9)                       | 23.7
Recognised in the income statement       | (5.5)                               | (0.3)                       | (5.8)
Foreign exchange movements               | 0.1                                 | –                           | 0.1
At 31 December 2018                      | 19.2                                | (1.2)                       | 18.0
Recognised in the income statement       | (16.4)                              | (0.2)                       | (16.6)
Foreign exchange movements               | (0.5)                               | –                           | (0.5)
At 31 December 2019                      | 2.3                                 | (1.4)                       | 0.9

Balance sheet
 IAS 12 Income Taxes provision deferred tax assets liabilities revaluation corporate tax rate temporary differences. UK assets liabilities REIT exemption tax rate 0 per cent other 19 per cent realised before 1 April 2020 17 per cent after 1 April 2020 17 thereafter. Spanish assets liabilities tax rate 25 per cent.
 deferred tax
 net deferred tax provision £0. 9 million revaluation development property Costa del Sol offset tax losses.
 Investment development property temporary differences
 deferred tax provision
 1 January 2018 24. 6 (0. 9) 23. 7
 (5. 5).
 exchange.
 31 December 2018 19. 2 (1. 2) 18.
 (16. 4).
.
 31 December 2019 2. 3 (1. 4).


Note 14 Debt and Credit Facilities
Our total debt outstanding consisted of the amounts set forth on the following table:
(1) Short-term borrowings of $98.9 million at December 31, 2019 were comprised of $89.0 million under our revolving credit facility and $9.9 million of short-term borrowings from various lines of credit. Short-term borrowings of $232.8 million at December 31, 2018 were comprised of $140.0 million under our revolving credit facility, $83.9 million under our European securitization program and $8.9 million of short-term borrowings from various lines of credit.
(2) The Current portion of long-term debt includes finance lease liabilities of $10.4 million as of December 31, 2019. The Other debt balance includes $28.7 million for long-term liabilities associated with our finance leases as of December 31, 2019. See Note 4, "Leases," of the Notes to Condensed Consolidated Financial Statements for additional information on finance and operating lease liabilities.
(3) Amounts are net of unamortized discounts and issuance costs of $24.6 million and $24.3 million as of December 31, 2019 and 2018, respectively.
(4) As of December 31, 2019, our weighted average interest rate on our short-term borrowings outstanding was 5.0% and on our long-term debt outstanding was 4.8%. As of December 31, 2018, our weighted average interest rate on our short-term borrowings outstanding was 2.8% and on our long-term debt outstanding was 5.4%.

                                              | December 31, |
--------------------------------------------- | ------------ | ---------
(In millions)                                 | 2019         | 2018
Short-term borrowings (1)                     | $ 98.9       | $ 232.8
Current portion of long-term debt(2)          | 16.7         | 4.9
Total current debt                            | 115.6        | 237.7
Term Loan A due July 2022                     | 474.6        | —
Term Loan A due July 2023                     | 218.2        | 222.2
6.50% Senior Notes due December 2020          | —            | 424.0
4.875% Senior Notes due December 2022         | 421.9        | 421.1
5.25% Senior Notes due April 2023             | 422.0        | 421.2
4.50% Senior Notes due September 2023         | 445.6        | 454.9
5.125% Senior Notes due December 2024         | 421.9        | 421.3
5.50% Senior Notes due September 2025         | 397.4        | 397.1
4.00% Senior Notes due December 2027          | 420.4        | —
6.875% Senior Notes due July 2033             | 445.7        | 445.5
Other(2)                                      | 30.9         | 29.2
Total long-term debt, less current portion(3) | 3,698.6      | 3,236.5
Total debt(4)                                 | $ 3,814.2    | $ 3,474.2

Debt Facilities
 total debt
 Short-term borrowings $98. 9 million December 31, 2019 $89. million revolving credit facility $9. million lines.-term borrowings $232. 8 million December 31, 2018 $140. million revolving credit $83. 9 million European securitization program $8. million lines.
 long-term debt finance lease liabilities $10. 4 million December 31, 2019. Other debt $28. 7 million long-term liabilities finance leases. Note 4 Financial Statements liabilities.
 unamortized discounts issuance costs $24. 6 million $24. 3 million December 31, 2019 2018.
 average interest rate short borrowings. 0% long-term debt 4. 8%. December 31, 2018 2. 8% long-term debt. 4%.
 Short-term borrowings $ 98. 232.
 long-term.
 115.
 Term Loan July 2022.
 2023.
. Notes December 2020.
.875% December 2022 421.
. 25% April 2023 422. 421.
. September 2023 445. 454
. 125% December 2024 421.
. 50% September 2025 397.
. December 2027 420.
. 875% July 2033 445. 445. 5
. 29
 long-term debt 3,698. 3,236. 5
 3,814. 3,474.


A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
As of April 26, 2019, we had $296 million of gross unrecognized tax benefits, of which $252 million has been recorded in other long-term liabilities. Unrecognized tax benefits of $246 million, including penalties, interest and indirect benefits, would affect our provision for income taxes if recognized. As a result of U.S. tax reform, we recorded provisional gross unrecognized tax benefits of $114 million during fiscal 2018.
We recognized a benefit for adjustments to accrued interest and penalties related to unrecognized tax benefits in the income tax provision of approximately $4 million in fiscal 2019 and expense of $5 million in each of fiscal 2018 and 2017. Accrued interest and penalties of $18 million and $22 million were recorded in the consolidated balance sheets as of April 26, 2019 and April 27, 2018, respectively.

                                                             |                | Year Ended     |
------------------------------------------------------------ | -------------- | -------------- | --------------
                                                             | April 26, 2019 | April 27, 2018 | April 28, 2017
Balance at beginning of period                               | $ 348          | $ 218          | $ 216
Additions based on tax positions related to the current year | 11             | 131            | 7
Additions for tax positions of prior years                   | 26             | —              | 7
Decreases for tax positions of prior years                   | (35 )          | (1 )           | —
Settlements                                                  | (54 )          | —              | (12 )
Balance at end of period                                     | $ 296          | $ 348          | $ 218

reconciliation unrecognized tax benefits
 April 26, 2019 $296 million unrecognized tax benefits $252 million long-term liabilities. benefits $246 million affect income taxes. tax reform recorded unrecognized tax benefits $114 million 2018.
 recognized adjustments accrued interest penalties $4 million 2019 $5 million 2018 2017. Accrued interest penalties $18 million $22 million recorded balance sheets April 26, 2019 April 27, 2018.
 April 26, 2019 27, 2018 April 28, 2017
 Balance period $ 348 $ 218 $ 216
 Additions tax positions
 Additions prior
 Decreases
 Settlements
 Balance end period $ 296  $ $ 218