Restricted Stock: The Company’s 2007 Stock Compensation Plan permits our Compensation Committee to grant other stock-based awards. The Company has awarded restricted stock grants to employees that vest over one to ten years.
The Company repurchased a total of 40,933 shares of our common stock at an average price of $13.51 in connection with payment of taxes upon the vesting of restricted stock previously issued to employees for the year ended September 30, 2019. The Company repurchased a total of 41,989 shares of our common stock at an average price of $11.66 in connection with payment of taxes upon the vesting of restricted stock previously issued to employees for the year ended September 30, 2018.
Employee Stock Purchase Plan: The Clearfield, Inc. 2010 Employee Stock Purchase Plan (“ESPP”) allows participating employees to purchase shares of the Company’s common stock at a discount through payroll deductions. The ESPP is available to all employees subject to certain eligibility requirements. Terms of the ESPP provide that participating employees may purchase the Company’s common stock on a voluntary after tax basis. Employees may purchase the Company’s common stock at a price that is no less than the lower of 85% of the fair market value of one share of common stock at the beginning or end of each stock purchase period or phase. The ESPP is carried out in six-month phases, with phases beginning on July 1 and January 1 of each calendar year. For the phases that ended on December 31, 2018 and June 30, 2019, employees purchased 17,312 and 19,923 shares, respectively, at a price of $8.43. For the phases that ended on December 31, 2017 and June 30, 2018, employees purchased 14,242 and 15,932 shares, respectively, at a price of $10.41 and $9.39 per share, respectively. As of September 30, 2019, the Company has withheld approximately $80,708 from employees participating in the phase that began on July 1, 2019. After the employee purchase on June 30, 2019, 49,846 shares of common stock were available for future purchase under the ESPP. Employee Stock Purchase Plan: The Clearfield, Inc. 2010 Employee Stock Purchase Plan (“ESPP”) allows participating employees to purchase shares of the Company’s common stock at a discount through payroll deductions. The ESPP is available to all employees subject to certain eligibility requirements. Terms of the ESPP provide that participating employees may purchase the Company’s common stock on a voluntary after tax basis. Employees may purchase the Company’s common stock at a price that is no less than the lower of 85% of the fair market value of one share of common stock at the beginning or end of each stock purchase period or phase. The ESPP is carried out in six-month phases, with phases beginning on July 1 and January 1 of each calendar year. For the phases that ended on December 31, 2018 and June 30, 2019, employees purchased 17,312 and 19,923 shares, respectively, at a price of $8.43. For the phases that ended on December 31, 2017 and June 30, 2018, employees purchased 14,242 and 15,932 shares, respectively, at a price of $10.41 and $9.39 per share, respectively. As of September 30, 2019, the Company has withheld approximately $80,708 from employees participating in the phase that began on July 1, 2019. After the employee purchase on June 30, 2019, 49,846 shares of common stock were available for future purchase under the ESPP.
Restricted stock transactions during the years ended September 30, 2019 and 2018 are summarized as follows:

                                         | Number of shares | Weighted average grant date fair value
---------------------------------------- | ---------------- | --------------------------------------
Unvested shares as of September 30, 2017 | 370,530          | $15.24
Granted                                  | 7,235            | 14.17
Vested                                   | (113,930)        | 16.45
Forfeited                                | (15,222)         | 15.41
Unvested shares as of September 30, 2018 | 248,613          | 14.65
Granted                                  | 4,340            | 14.40
Vested                                   | (110,683)        | 16.31
Forfeited                                | (11,830)         | 14.47
Unvested shares as of September 30, 2019 | 130,440          | 13.25

Restricted Stock 2007 Stock Compensation Plan permits stock awards. awarded restricted stock grants employees ten years.
 repurchased 40,933 shares common stock average $13. 51 September 30, 2019. repurchased 41,989 shares average $11. 66 September 30, 2018.
 Employee Stock Purchase Plan. allows employees purchase common stock discount payroll deductions. available eligibility requirements. voluntary after tax. no less lower 85% fair market value. six-month phases July 1 January 1 each. phases ended December 31, 2018 June 30, 2019 employees purchased 17,312 19,923 shares $8. 43. December 31, 2017 June 30, 2018 purchased 14,242 15,932 shares $10. 41 $9. 39 per share. September 30, 2019 Company withheld $80,708 from employees phase July 1, 2019. After purchase June 30, 2019 49,846 shares common stock available for future purchase ESPP. Stock Plan.2010 Employee Stock Purchase Plan allows employees purchase common stock discount payroll deductions. available eligibility requirements. stock voluntary after tax. lower 85% fair market value each. six phases July 1 January 1 each. December 31, 2018 June 30, 2019 purchased 17,312 19,923 shares $8. 43. June 2018 purchased 14,242 15,932 shares $10. 41 $9. 39 per share. September 30, 2019 Company withheld $80,708 from employees July 1 2019. June 30, 2019 49,846 shares available future purchase ESPP.
 Restricted stock transactions September 30 2019 2018 summarized
 Unvested shares as September 30, 2017 370,530. 24
 Granted 14. 17
 Vested 16. 45
 Forfeited.
 Unvested September 30, 2018 248,613 14. 65
 Granted. 40
 Vested. 31
 Forfeited. 47
shares September 30 130,440.


Interest expense and financing costs
Fees and discounts associated with the issuance of our debt instruments are recorded as debt discount, which reduces their respective carrying values, and are amortized over their respective terms. Amortization expense is recorded within “Interest and other expense (income), net” in our consolidated statement of operations.
For the years ended December 31, 2019, 2018, and 2017: interest expense was $86 million, $134 million, and $150 million, respectively; amortization of the debt discount and deferred financing costs was $4 million, $6 million, and $12 million, respectively.
A summary of our outstanding debt is as follows (amounts in millions):
With the exception of the 2026 and the 2047 Notes, using Level 2 inputs (i.e., observable market prices in less-than-active markets) at December 31, 2019, the carrying values of the Notes approximated their fair values, as the interest rates were similar to the current rates at which we could borrow funds over the selected interest periods. At December 31, 2019, based on Level 2 inputs, the fair value of the 2026 and the 2047 Notes were $893 million and $456 million, respectively.
Using Level 2 inputs at December 31, 2018, the carrying values of the 2021 Notes and the 2022 Notes approximated their fair values, as the interest rates were similar to the current rates at which we could borrow funds over the selected interest periods. At December 31, 2019, based on Level 2 inputs, the fair values of the 2026 Notes, the 2027 Notes, and the 2047 Notes were $800 million, $376 million, and $360 million, respectively.

                     |                       | At December 31, 2019                              |
-------------------- | --------------------- | ------------------------------------------------- | -------------------
                     | Gross Carrying Amount | Unamortized Discount and Deferred Financing Costs | Net Carrying Amount
2021 Notes           | $650                  | $(2)                                              | $648
2022 Notes           | 400                   | (2)                                               | 398
2026 Notes           | 850                   | (7)                                               | 843
2027 Notes           | 400                   | (5)                                               | 395
2047 Notes           | 400                   | (9)                                               | 391
Total long-term debt | $2,700                | $(25)                                             | $2,675
                     |                       | At December 31, 2018                              |
                     | Gross Carrying Amount | Unamortized Discount and Deferred Financing Costs | Net Carrying Amount
2021 Notes           | 650                   | (3)                                               | 647
2022 Notes           | 400                   | (3)                                               | 397
2026 Notes           | 850                   | (8)                                               | 842
2027 Notes           | 400                   | (5)                                               | 395
2047 Notes           | 400                   | (10)                                              | 390
Total long-term debt | $2,700                | $(29)                                             | $2,671

Interest expense financing costs
 Fees discounts debt instruments recorded as debt discount carrying values amortized over terms. Amortization expense expense consolidated statement operations.
 years December 2019 2018 2017: interest expense $86 million $134 million $150 million amortization debt discount deferred financing costs $4 million $6 million $12 million.
 outstanding debt
 2026 2047 Notes Level 2. December 31, 2019 carrying values approximated fair values interest rates. 2026 2047 Notes $893 million $456 million.
 values 2021 2022 Notes approximated fair values rates. fair values 2047 $800 million $376 million $360 million.
 December 31, 2019
 Gross Carrying Amount Unamortized Discount Deferred Financing Costs Net Carrying Amount
 2021 Notes $650 $648
 2022 Notes 400 398
 2026 Notes 850 843
2027 Notes 395
 2047 391
-term debt $2,700,675
 December 31, 2018
 Gross Carrying Amount Unamortized Discount Deferred Financing Net Carrying
 2021 Notes 650 647
 2022
 2026 850 842
 2027
 2047
-term debt $2,700 $2,671


Income (loss) before expense (benefit) for income taxes for the years ended December 31, 2019, 2018 and 2017 is as follows:
Income (loss) before expense (benefit) for income taxes for international entities reflects income (loss) based on statutory transfer pricing agreements. This amount does not correlate to consolidated international revenue, many of which occur from our U.S. entity.

(In thousands)         | 2019      | 2018      | 2017
---------------------- | --------- | --------- | -------
U.S. entities          | $(29,829) | $(74,131) | $26,552
International entities | 5,052     | 40,760    | 18,135
Total                  | $(24,777) | $(33,371) | $44,687

Income taxes December 2019 2018 2017
 entities reflects transfer pricing agreements. correlate consolidated international revenue.
 2019 2018 2017
. entities $(29,829) $(74,131) $26,552
 International entities 5,052 40,760 18,135
 Total $(24,777) $(33,371) $44,687


4. Segmental information
IFRS 8 ‘Operating segments’ requires the Group to determine its operating segments based on information which is provided internally. Based on the internal reporting information and management structures within the Group, it has been determined that there is only one operating segment, being the Group, as the information reported includes operating results at a consolidated Group level only. This reflects the nature of the business, where the major cost is to support the IT platforms upon which all of the Group’s customers are serviced. These costs are borne centrally and are not attributable to any specific customer type or revenue stream. There is also considered to be only one reporting segment, which is the Group, the results of which are shown in the Consolidated income statement.
Management has determined that there is one operating and reporting segment based on the reports reviewed by the Operational Leadership Team (‘OLT’) which is the chief operating decision-maker (‘CODM’). The OLT is made up of the Executive Directors and Key Management and is responsible for the strategic decision-making of the Group.
The OLT primarily uses the statutory measures of Revenue and Operating profit to assess the performance of the one operating segment. To assist in the analysis of the Group’s revenue-generating trends, the OLT reviews revenue at a disaggregated level as detailed within note 5. The revenue from external parties reported to the OLT is measured in a manner consistent with that in the income statement.
A reconciliation of the one segment’s Operating profit to Profit before tax is shown below.
Following the application of IFRS 16, profit before tax for the year ended 31 March 2018 has been restated (note 2).

                                 | 2019   | (Restated) 2018
-------------------------------- | ------ | ---------------
                                 | £m     | £m
Total segment Revenue            | 355.1  | 330.1
Total segment Operating profit   | 243.7  | 221.3
Finance costs – net              | (10.2) | (10.6)
Profit on the sale of subsidiary | 8.7    | –
Profit before tax                | 242.2  | 210.7

. Segmental information
 IFRS 8 ‘Operating segments’ requires Group determine segments internally. one operating segment includes results consolidated Group level. major cost IT platforms. costs borne centrally not attributable specific customer type revenue stream. one reporting segment Group results in Consolidated income statement.
 Management determined one operating reporting segment Operational Leadership Team chief operating decision-maker. OLT responsible strategic decision-making.
 OLT uses statutory measures Revenue Operating profit assess performance operating segment. reviews revenue disaggregated level. revenue from external parties OLT measured consistent income statement.
 reconciliation Operating profit to Profit before tax shown.
 IFRS 16 profit before tax year ended 31 March 2018 restated.
 £m
 Total segment Revenue 355. 330.
 Operating profit 243. 221.
 Finance costs net (10.
 Profit sale of subsidiary 8.
 Profit before tax 242. 210.


25. RELATED PARTY TRANSACTIONS
a) Transactions with Golar Partners and subsidiaries:
Income (expenses):
(i) Management and administrative services revenue - On March 30, 2011, Golar Partners entered into a management and administrative services agreement with Golar Management Limited ("Golar Management"), a wholly-owned subsidiary of Golar, pursuant to which Golar Management will provide to Golar Partners certain management and administrative services. The services provided by Golar Management are charged at cost plus a management fee equal to 5% of Golar Management’s costs and expenses incurred in connection with providing these services. Golar Partners may terminate the agreement by providing 120 days written notice.
(ii) Ship management fees - Golar and certain of its affiliates charge ship management fees to Golar Partners for the provision of technical and commercial management of Golar Partners' vessels. Each of Golar Partners’ vessels is subject to management agreements pursuant to which certain commercial and technical management services are provided by Golar Management. Golar Partners may terminate these agreements by providing 30 days written notice.
(iv) Charterhire expenses - This consists of the charterhire expenses that we incurred for the charter back from Golar Partners of the Golar Grand. In connection with the sale of the Golar Grand to Golar Partners in November 2012, we issued an option where, in the event that the charterer did not renew or extend its charter for the Golar Grand beyond February 2015, the Partnership had the option to require us to charter the vessel through to October 2017. In February 2015, the option was exercised. Accordingly, we recognized charterhire costs of $17.4 million for the year ended December 31, 2017, in relation to the Golar Grand.

(iv) Charterhire expenses - This consists of the charterhire expenses that we incurred for the charter back from Golar Partners of the Golar Grand. In connection with the sale of the Golar Grand to Golar Partners in November 2012, we issued an option where, in the event that the charterer did not renew or extend its charter for the Golar Grand beyond February 2015, the Partnership had the option to require us to charter the vessel through to October 2017. In February 2015, the option was exercised. Accordingly, we recognized charterhire costs of $17.4 million for the year ended December 31, 2017, in relation to the Golar Grand.
(v) Share options expense - This relates to a recharge of share option expense to Golar Partners in relation to share options in Golar granted to certain of Golar Partners' directors, officers and employees.
(vi) Interest expense on deposits payable
Expense under Tundra Letter Agreement - In May 2016, we completed the Golar Tundra Sale and received a total cash consideration of $107.2 million. We agreed to pay Golar Partners a daily fee plus operating expenses for the right to use the Golar Tundra from the date the Golar Tundra Sale was closed, until the date that the vessel would commence operations under the Golar Tundra Time Charter. In return, Golar Partners agreed to remit to us any hire income received with respect to the Golar Tundra during that period. We have accounted for $nil, $nil and $2.2 million as interest expense for the year ended December 31, 2019, 2018 and 2017, respectively.
Deferred purchase price - In May 2017, the Golar Tundra had not commenced her charter and, accordingly, Golar Partners elected to exercise the Tundra Put Right to require us to repurchase Tundra Corp at a price equal to the original purchase price. In connection with Golar Partners exercising the Tundra Put Right, we and Golar Partners entered into an agreement pursuant to which we agreed to purchase Tundra Corp from Golar Partners on the date of the closing of the Tundra Put Sale in return we will be required to pay an amount equal to $107.2 million (the "Deferred Purchase Price") plus an additional amount equal to 5% per annum of the Deferred Purchase Price (the "Additional Amount"). The Deferred Purchase Price and the Additional Amount was applied to the net sale price of the Hilli Disposal (defined below) on July 12, 2018. We have accounted for $nil, $2.9 million and $1.1 million as interest expense for the year ended December 31, 2019, 2018 and 2017, respectively.
Deposit received from Golar Partners - On August 15, 2017, we entered into the Hilli Sale Agreement with Golar Partners for the Hilli, or the Hilli Disposal, from the Sellers of the Hilli Common Units in Hilli LLC. See note 5. Concurrent with the execution of the Hilli Sale Agreement, we received a further $70 million deposit from Golar Partners, upon which we pay interest at a rate of 5% per annum. We applied the deposit received and interest accrued to the purchase price on July 12, 2018, upon completion of the Hilli Disposal. We have accounted for $nil, $1.9 million and $1.3 million, as interest expense for the year ended December 31, 2019, 2018 and 2017, respectively.

(in thousands of $)                                | 2019   | 2018    | 2017
-------------------------------------------------- | ------ | ------- | --------
Management and administrative services revenue (i) | 9,645  | 9,809   | 7,762
Ship management fees revenue (ii)                  | 4,460  | 5,200   | 5,903
Interest income on short-term loan (iii)           | (109)  | —       | —
Charterhire expenses (iv)                          | —      | —       | (17,423)
Share options expense recharge (v)                 | —      | —       | 228
Interest expense on deposits payable (vi)          | —      | (4,779) | (4,622)
Total                                              | 13,996 | 10,230  | (8,152)

. RELATED PARTY TRANSACTIONS
 Transactions with Golar Partners subsidiaries
 Income (expenses):
 Management administrative services revenue March 30, 2011, Golar Partners management administrative services agreement with Golar Management Limited wholly-owned subsidiary Golar Golar Management management services. services charged at cost plus management fee 5% costs expenses. Golar Partners may terminate agreement 120 days notice.
 Ship management fees Golar affiliates charge ship management fees to Golar Partners technical commercial management Golar Partners' vessels. subject to management agreements services by Golar Management. terminate agreements 30 days notice.
 Charterhire expenses expenses for charter from Golar Golar Grand. sale Golar 2012, option charterer February 2015, charter October 2017. option exercised. recognized charterhire costs of $17. 4 million for year ended December 31, 2017 Golar Grand.
 Charterhire expenses. sale 2012, option charterer charter February 2015, charter October.February 2015, option exercised. recognized charterhire costs $17. 4 million year December 31, 2017 Golar Grand.
 Share options expense recharge share option expense Golar Partners share options directors officers employees.
 Interest expense deposits
 Tundra Letter Agreement May 2016, Golar Tundra Sale received cash $107. 2 million. agreed pay Golar Partners daily fee operating expenses Golar Tundra operations Time Charter. remit hire income. accounted $nil $2. 2 million interest expense year December 31, 2019 2018 2017.
 Deferred purchase price May 2017 Golar Tundra charter Golar Partners repurchase equal original purchase price. purchase Tundra closing pay $107. 2 million Purchase additional 5% per annum Price. applied net sale price Hilli Disposal July 12, 2018. accounted $nil $2. 9 million $1. 1 million interest expense year ended December 31, 2019 2018 2017.
Deposit Golar Partners August 15, 2017 Hilli Sale Agreement Golar Common Units. $70 million deposit Golar Partners interest 5% per annum. applied deposit interest purchase price July 12, 2018 Hilli Disposal. accounted $1. 9 million $1. 3 million interest expense year December 31, 2019 2018 2017.
 Management administrative services revenue 9,645 9,809 7,762
 Ship management fees 4,460 5,200 5,903
 Interest income short-term loan
 Charterhire expenses
 Share options expense recharge
 Interest expense deposits (4,779) (4,622)
 13,996 10,230


The following is a summary of stock option activity during fiscal 2019:
Net income before income taxes included compensation expense related to the amortization of the Company’s stock option awards of $0.1 million during both fiscal 2019 and fiscal 2018. At September 2019, total unamortized compensation expense related to stock options was approximately $0.3 million. This unamortized compensation expense is expected to be amortized over approximately the next 38 months.
The aggregate intrinsic value of stock options exercisable was approximately $0.2 million and $0.3 million at September 2019 and September 2018, respectively.
The total intrinsic value of stock options exercised was $0.1 million in both fiscal 2019 and fiscal 2018. The total fair value of stock options vested was $0.4 million during both fiscal 2019 and fiscal 2018.

                              | Number of Shares | Weighted Average Exercise Price
----------------------------- | ---------------- | -------------------------------
Outstanding at September 2018 | 33,800           | $  77.85
Granted                       | 5,450            | 84.00
Exercised                     | (2,800)          | 79.22
Forfeited/Expired             | —                | —
Outstanding at September 2019 | 36,450           | $  78.67

summary stock option activity 2019
 Net income taxes compensation expense stock option awards. 1 million. September 2019 unamortized compensation expense $0. 3 million. amortized 38 months.
 value stock options $0. 2 million. 3 million September 2019 2018.
 exercised $0. 1 million. fair value options vested $0. 4 million.
 Number Shares Weighted Average Exercise Price
 Outstanding September 2018 33,800 $ 77.
 5,450.
.
 Forfeited
 September 2019 36,450 $.


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)
9. Trade and Other Receivables
Trade and other receivables consist of the following:
Trade and other receivables are amounts due from third parties for services performed in the ordinary course of business. They are generally due for settlement immediately and therefore are all classified as current. Trade and other receivables are recognized initially at the amount of consideration that is unconditional unless they contain certain significant financing components, at which point they are recognized at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest rate method.
Accrued income represents net revenues receivable from charterers, which have not yet been invoiced; all other amounts not yet invoiced are included under Other receivables.
As of December 31, 2018 and 2019 no allowance for expected credit losses was recorded.

                  | As of December 31, |
----------------- | ------------------ | ------
                  | 2018               | 2019
Trade receivables | 808                | 9,463
VAT receivable    | 1,094              | 637
Accrued income    | 9,473              | 8,274
Insurance claims  | 1,282              | 1,400
Other receivables | 7,587              | 5,126
Total             | 20,244             | 24,900

GasLog Ltd. Subsidiaries
 consolidated financial statements
 years December 31, 2017 2018 2019
 amounts U. S. Dollars
. Trade Receivables
 due third parties. settlement current. recognized unconditional financing fair value. Group holds trade receivables contractual cash flows measures amortized cost interest rate method.
 Accrued income net revenues charterers not invoiced Other receivables.
 December 31, 2018 2019 allowance credit losses.
 2019
 Trade receivables 808 9,463
 VAT 1,094 637
 Accrued income 9,473 8,274
 Insurance claims 1,282
 Other receivables 7,587 5,126
 Total 20,244 24


Marketable Securities
Marketable securities consisted of the following (in thousands):
We classify our marketable securities as available-for-sale. All marketable securities represent the investment of funds available for current operations, notwithstanding their contractual maturities. Such marketable securities are recorded at fair value and unrealized gains and losses are recorded in Accumulated other comprehensive income (loss) until realized.
We typically invest in highly-rated securities with low probabilities of default. Our investment policy requires investments to be rated single A or better, limits the types of acceptable investments, concentration as to security holder and duration of the investment. The gross unrealized gains and losses in fiscal 2019 and 2018 were caused primarily by changes in interest rates.
The longer the duration of marketable securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. We anticipate recovering the full cost of the securities either as market conditions improve, or as the securities mature. Accordingly, we believe that the unrealized losses are not other-than-temporary.
When evaluating the investments for otherthan- temporary impairment, we review factors such as the length of time and extent to which fair value has been below the amortized cost basis, current market liquidity, interest rate risk, the financial condition of the issuer, and credit rating downgrades. As of December 28, 2019 and December 29, 2018, gross unrealized losses related to our marketable securities portfolio were not material.

December 28, 2019      | Amortized Cost   | Gains   | Losses   | Fair Value
---------------------- | ---------------- | ------- | -------- | ------------
U.S. Treasuries        | $10,458          | $11     | $—       | $10,469
Commercial paper       | 3,914            | 1       | (4)      | 3,911
Corporate bond         | 33,867           | 68      | (7)      | 33,928
Certificate of deposit | 3,584            | 5       | —        | 3,589
Agency securities      | 24,408           | 38      | (16)     | 24,430
                       | $76,231          | $123    | $(27)    | $76,327
December 29, 2018      | Amortized Cost   | Gains   | Losses   | Fair Value
U.S. Treasuries        | $7,997           | $1      | $(1)     | $7,997
Commercial paper       | 2,296            | —       | (1)      | 2,295
Corporate bond         | 30,833           | 1       | (160)    | 30,674
Certificate of deposit | 960              | —       | (3)      | 957
Agency securities      | 8,667            | —       | (59)     | 8,608
                       | $50,753          | $2      | $(224)   | $50,531

Marketable Securities
 available-for-sale. current operations contractual maturities. recorded at fair value unrealized gains losses recorded until.
 invest highly-rated securities low probabilities default. policy requires rated A or better limits concentration duration. unrealized gains losses 2019 2018 caused by interest rates.
 longer duration susceptible to interest rates bond yields. yields increase lower yield-cost show-market unrealized loss. anticipate recovering full cost market conditions securities mature. unrealized losses not-temporary.
 fair value amortized cost market liquidity interest rate risk financial condition credit rating downgrades. December 28, 2019 29, 2018 unrealized losses not material.
 2019 Amortized Cost Gains Losses Fair Value
. Treasuries $10,458,469
 Commercial paper 3,914
 Corporate bond 33,867 33,928
 Certificate of deposit 3,584
securities 24,408 24,430
 $76,231 $123
 December 29, 2018 Amortized Cost Gains Losses Fair
. Treasuries $7,997
 Commercial paper 2,296
 Corporate bond 30,833,674
 Certificate deposit 960
 securities 8,667,608
 $50,753 $2 $50,531


Net Pool Allocation: Net pool allocation increased by $10.5 million, from $7.3 million during the year ended December 31, 2017 to $17.8 million during the year ended December 31, 2018. The increase in net pool allocation was attributable to the movement in the adjustment of the net pool results earned by the GasLog vessels in accordance with the pool distribution formula. GasLog recognized gross revenues and gross voyage expenses and commissions of $102.3 million and $10.2 million, respectively, from the operation of its vessels in the Cool Pool during the year ended December 31, 2018 (December 31, 2017: $38.0 million and $9.1 million, respectively). The increase in GasLog’s total net pool performance was driven by higher spot rates and higher utilization achieved by all vessels trading in the Cool Pool. GasLog’s total net pool performance is presented below:
Voyage Expenses and Commissions: Voyage expenses and commissions increased by 32.5%, or $5.0 million, from $15.4 million during the year ended December 31, 2017 to $20.4 million during the year ended December 31, 2018. The increase in voyage expenses and commissions is mainly attributable to an increase of $3.6 million in bunkers consumed and voyage expenses during certain unchartered and off-hire periods, an increase of $0.3 million in voyage expenses of the vessels operating in the spot market and an increase of $1.1 million in brokers’ commissions.

                                                                                | For the year ended |
---------------------------------------------------------------------------------------- | ------------------ | --------
                                                                                | 2017               | 2018
Amounts in thousands of U.S. Dollars                                                     |                    |
Pool gross revenues (included in Revenues)                                               | 38,046             | 102,253
Pool gross voyage expenses and commissions (included in Voyage expenses and commissions) | (9,122)            | (10,154)
GasLog’s adjustment for net pool allocation (included in Net pool allocation)            | 7,254              | 17,818
GasLog’s total net pool performance                                                      | 36,178             | 109,917

Net Pool Allocation increased $10. 5 million from $7. 3 million 2017 to $17. 8 million 2018. attributable results GasLog vessels distribution formula. GasLog recognized revenues voyage expenses commissions $102. 3 million $10. 2 million Cool Pool 2018 $38. 0 million $9. 1 million. increase performance driven by higher spot rates utilization.
 Voyage Expenses Commissions increased 32. 5% $5. 0 million from $15. 4 million 2017 to $20. 4 million 2018. attributable $3. 6 million bunkers consumed voyage expenses unchartered off-hire periods $0. 3 million voyage expenses spot $1. 1 million brokers’ commissions.
.
 revenues 38,046 102,253
 voyage expenses commissions (9,122
 adjustment net pool allocation 7,254 17,818
 total net pool performance 36,178 109,917


Debt
At both December 31, 2019 and December 31, 2018, our total outstanding debt was $2.7 billion, bearing interest at a weighted average rate of 3.18%.
A summary of our outstanding debt as of December 31, 2019, is as follows (amounts in millions):

           |                       | December 31, 2019                                 |
---------- | --------------------- | ------------------------------------------------- | -------------------
           | Gross Carrying Amount | Unamortized Discount and Deferred Financing Costs | Net Carrying Amount
2021 Notes | $650                  | $(2)                                              | $648
2022 Notes | 400                   | (2)                                               | 398
2026 Notes | 850                   | (7)                                               | 843
2027 Notes | 400                   | (5)                                               | 395
2047 Notes | 400                   | (9)                                               | 391
Total debt | $2,700                | $(25)                                             | $2,675

 December 31, 2019 2018 outstanding debt $2. 7 billion 3. 18%.
 summary debt
 December 31, 2019
 Gross Carrying Amount Unamortized Discount Deferred Financing Costs Net Carrying Amount
 2021 Notes $650 $648
 2022
 2026 843
 2027 395
 2047 391
 Total debt $2,700 $2,675


Deferred revenue and financed unearned services revenue (in millions):
The following table summarizes the components of our deferred revenue and financed unearned services balance as reported in our consolidated balance sheets (in millions):
Deferred product revenue represents unrecognized revenue related to undelivered product commitments and other product deliveries that have not met all revenue recognition criteria. Deferred services revenue represents customer payments made in advance for services, which include software and hardware maintenance contracts and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 18 – Commitments and Contingencies for additional information related to these arrangements

                                   | April 26, 2019 | April 27, 2018
---------------------------------- | -------------- | --------------
Deferred product revenue           | $ 84           | $ 107
Deferred services revenue          | 3,502          | 3,134
Financed unearned services revenue | 82             | 122
Total                              | $ 3,668        | $ 3,363
Reported as:                       |                |
Short-term                         | $ 1,825        | $ 1,712
Long-term                          | 1,843          | 1,651
Total                              | $ 3,668        | $ 3,363

Deferred financed unearned services
 table summarizes deferred
 Deferred product revenue undelivered. Deferred services payments. Financed unearned services undelivered services third financing. Note 18 Commitments Contingencies information
 April 26, 2019 April 27, 2018
 Deferred product revenue $ 84 $ 107
 services 3,502 3,134
 Financed unearned services 82 122
 $ 3,668 $ 3,363
 Short-term $ 1,825 $ 1,712
 Long-term 1,843 1,651
 $ 3,668 3,363


DESCRIPTION OF THE PLANS
ESP
The ESP is designed to encourage employees of BCE and its participating subsidiaries to own shares of BCE. Each year, employees can choose to have a certain percentage of their eligible annual earnings withheld through regular payroll deductions for the purchase of BCE common shares. In some cases, the employer also will contribute a percentage of the employee’s eligible annual earnings to the plan, up to a specified maximum. Dividends are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividends paid on BCE common shares.
The ESP allows employees to contribute up to 12% of their annual earnings with a maximum employer contribution of 2%.
Employer contributions to the ESP and related dividends are subject to employees holding their shares for a two-year vesting period.
The trustee of the ESP buys BCE common shares for the participants on the open market, by private purchase or from treasury. BCE determines the method the trustee uses to buy the shares.
At December 31, 2019, 4,360,087 common shares were authorized for issuance from treasury under the ESP.
The following table summarizes the status of unvested employer contributions at December 31, 2019 and 2018.
(1) The weighted average fair value of the shares contributed was $60 in 2019 and $55 in 2018.

NUMBER OF ESP SHARES                | 2019      | 2018
----------------------------------- | --------- | ---------
Unvested contributions, January 1   | 1,120,426 | 1,039,030
Contributions (1)                   | 623,705   | 671,911
Dividends credited                  | 57,083    | 56,926
Vested                              | (523,359) | (501,089)
Forfeited                           | (153,657) | (146,352)
Unvested contributions, December 31 | 1,124,198 | 1,120,426

 ESP
 employees BCE own shares. employees earnings purchase BCE shares. employer earnings. Dividends credited equivalent BCE shares.
 ESP allows 12% annual earnings maximum employer contribution 2%.
 contributions dividends subject shares two-year vesting period.
 trustee buys BCE shares open market private purchase treasury.
 December 31, 2019 4,360,087 shares authorized issuance.
 table unvested contributions December 31, 2019 2018.
 average fair value $60 2019 $55 2018.
 ESP SHARES
 Unvested contributions January 1 1,120,426 1,039,030
 623,705 671,911
 Dividends credited 57,083 56,926
 Vested (523,359) (501,089)
 Forfeited (153,657) (146,352)
 Unvested contributions December 31 1,124,198 1,120,426


Operational Highlights
Altium achieved US$177.2 million in sales (a 23% increase) and US$171.8 million in product revenue (a 23% increase).
The Board and Systems business revenue grew to US$126.8 million with all regions reporting positive results. EMEA grew revenue to US$44.6 million, an increase of 15% and continued the transformation of its business model to direct transactional sales in key markets. The America’s achieved revenue of US$50.9 million which was a 14% growth rate. China results were outstanding with revenue at US$19.8 million, a growth rate of 37%. The Altium focus on our business in China led us to open a new sales office in Beijing and to expand our existing sales centres in Shenzhen and Shanghai. The expansion of our footprint in China will enable us to increase our penetration of the market.

Consolidated                  |         |         |
----------------------------- | ------- | ------- | ------
                              | 2019    | 2018    | Change
Product Sales                 | US$’000 | US$’000 | %
Altium Designer licenses      | 65,157  | 53,088  | 23%
Altium Designer subscriptions | 58,959  | 53,701  | 10%
Octopart search advertising   | 17,940  | 11,968  | 50%
TASKING licenses              | 13,536  | 10,432  | 30%
TASKING maintenance           | 8,324   | 4,706   | 67%
Altium Nexus                  | 6,277   | 3,769   | 67%
Service sales                 | 3,337   | 4,624   | (28%)
Other                         | 3,656   | 2,254   | 62%
Total Product Sales           | 177,216 | 144,541 | 23%

 Altium achieved US$177. 2 million sales 23% increase US$171. 8 million product revenue 23%.
 Board Systems revenue grew US$126. 8 million regions positive. EMEA US$44. 6 million 15% transactional sales. America’s US$50. 9 million 14% growth. China US$19. 8 million growth 37%. focus new office Beijing centres Shenzhen Shanghai. expansion penetration.
 Sales US$’000
 Designer licenses 65,157 53,088 23%
 subscriptions 58,959 53 10%
 advertising 17,940
 licenses 10
 maintenance 8,324 67%
 Nexus 6 3
 Service sales 3,337 (28%)
 3 62%
 Product Sales 177,216 144,541 23%


Gross Profit
Year Ended December 31, 2019 Compared with the Year Ended December 31, 2018
Gross profit and margin decreased during the year ended December 31, 2019 compared to prior year primarily due to an increase in hosting migration costs, higher amortization of software development, recognition of previously deferred costs and the sale of OneContent business on April 2, 2018, which carried a higher gross margin compared with our other businesses. These were partially offset with an increase in organic sales for Veradigm and our acute solutions in 2019.
Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017
Gross profit increased during the year ended December 31, 2018 compared with the year ended December 31, 2017 primarily due to acquisitions. From a revenue mix perspective, gross profit associated with our recurring revenue streams, which include the delivery of recurring subscription-based software sales, support and maintenance, and recurring client services improved as we continued to expand our customer base for these services, particularly those related to outsourcing and revenue cycle management. Gross profit associated with our non-recurring software delivery, support and maintenance revenue stream decreased primarily due to fewer perpetual software license sales of our acute and population health management solutions. Gross profit associated with our non-recurring client services revenue stream, which includes non-recurring project-based client services, decreased primarily driven by higher internal personnel costs, including those related to incremental resources from recent acquisitions. Gross margin decreased primarily due to lower sales of higher margin perpetual software licenses and higher amortization of software development and acquisition-related assets driven by additional amortization expense associated with intangible assets acquired as part of recent acquisitions.

                      | Year Ended December 31, |             |           |                         |
--------------------- | ----------------------- | ----------- | --------- | ----------------------- | -----------------------
(In thousands)        | 2019                    | 2018        | 2017      | 2019 % Change from 2018 | 2018 % Change from 2017
Total cost of revenue | $ 1,058,097             | $ 1,025,419 | $ 864,909 | 3.2%                    | 18.6%
Gross profit          | $ 713,580               | $ 724,543   | $ 632,799 | (1.5%)                  | 14.5%
Gross margin %        | 40.3%                   | 41.4%       | 42.3%     |                         |

Gross Profit
 Year Ended December 31, 2019 2018
 profit margin decreased 2019 due to hosting migration costs higher amortization software development deferred costs sale OneContent April 2, 2018 higher gross margin. offset increase organic sales Veradigm acute solutions 2019.
 Year Ended December 31, 2018 2017
 Gross profit increased 2018 due to acquisitions. profit recurring revenue streams software client services improved. profit non software maintenance decreased fewer software license sales. profit non-recurring client services decreased higher internal personnel costs. margin decreased due lower sales higher margin software licenses higher amortization software development acquisition assets.
 Year Ended December 31,
 2019 2018 2017 % Change 2018
 Total cost revenue $ 1,058,097  $ 1,025,419  $ 864,909  3. 2% 18. 6%
 Gross profit $ 713,580  $ 724,543  $ 632,799.14.
 margin 40. 41. 42. 3%


Trade Receivables, Net
The carrying amounts reported in the Consolidated Balance Sheets for Trade receivables, net approximate their fair value because of their short-term nature.
A summary of Trade receivables, net of allowance for doubtful accounts is as follows (in millions):
In addition to the amounts above, we have unbilled receivables that we do not expect to collect within the next year included in Other non-current assets in our Consolidated Balance Sheets. Billings for these receivables are based on contractual terms. Refer to Note 11 — Other Non-Current Assets.

                                | December 31, |
------------------------------- | ------------ | ------
                                | 2019         | 2018
Trade receivables — billed      | $136.6       | $136.6
Trade receivables — unbilled    | 39.8         | 37.0
Trade receivables               | 176.4        | 173.6
Allowance for doubtful accounts | (1.3)        | (1.3)
Trade receivables, net          | $175.1       | $172.3

Trade Receivables
 amounts Consolidated Balance Sheets approximate fair value short-term nature.
 summary allowance doubtful accounts
 unbilled receivables next year non-current assets. Billings based contractual terms. Note 11 Non-Current Assets.
 receivables billed $136. 6.
 unbilled 39. 8 37.
 176. 4 173. 6
 Allowance doubtful accounts (1. 3).
 receivables net $175. $172.


This section sets out the assets and liabilities subject to a committed plan to sell.
At 30 June 2019, assets held for sale includes Group properties (2018: assets and liabilities relating to the Petrol business, and other Group properties, have been classified as held for sale).
Assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, and financial assets which are specifically exempt from this measurement requirement.
An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the asset is recognised at the date of derecognition. Assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities classified as held for sale continue to be recognised.

                                                                | 2019 | 2018
--------------------------------------------------------------- | ---- | ----
                                                                | $M   | $M
Property, plant and equipment                                   | 209  | 666
Other assets                                                    | 16   | 155
Total assets classified as held for sale                        | 225  | 821
Provisions                                                      | –    | 21
Total liabilities directly associated with assets held for sale | –    | 21

section sets assets liabilities plan sell.
 30 June 2019 assets held sale Group properties Petrol business classified held sale.
 Assets classified sale if carrying amount recovered sale transaction sale probable. measured lower carrying amount fair value less costs sell except deferred tax employee benefits financial assets exempt.
 impairment loss recognised write-down fair value costs sell. gain recognised increases fair value costs not excess cumulative impairment loss. gain loss not recognised sale recognised date derecognition. Assets not depreciated amortised classified held sale. Interest expenses liabilities recognised.
 2019 2018
 Property plant equipment
 Other assets
 assets held sale 225
 liabilities associated assets held sale


3. REVENUE FROM CONTRACTS WITH CUSTOMERS
Revenues and related costs on construction contracts are recognized as the performance obligations are satisfied over time in accordance with ASC 606, Revenue from Contracts with Customers. Under ASC 606, revenue and associated profit, will be recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). The cost of uninstalled materials or equipment will generally be excluded from the Company’s recognition of profit, unless specifically produced or manufactured for a project, because such costs are not considered to be a measure of progress.
The following table represents a disaggregation of revenue by customer type from contracts with customers for the years ended December 31, 2019 and 2018:

                                               | Year Ended December 31, |
---------------------------------------------- | ----------------------- | -------
                                               | 2019                    | 2018
Agricultural, Commercial, and Industrial (ACI) | $28,940                 | $33,193
Public Works                                   | 12,128                  | 17,986
Residential                                    | 18,762                  | 19,786
Total                                          | 59,830                  | 70,965

. REVENUE CONTRACTS CUSTOMERS
 Revenues costs construction contracts recognized performance obligations satisfied ASC 606. revenue profit recognized customer obtains control goods services. uninstalled materials equipment excluded profit unless produced not progress.
 table disaggregation revenue by customer type contracts years December 31, 2019 2018:
 Agricultural Commercial Industrial $28,940 $33,193
 Public Works 12,128 17,986
 Residential 18,762 19,786
 Total 59,830 70,965


Net Pool Allocation: Net pool allocation decreased by $22.1 million, from a positive $17.8 million during the year ended December 31, 2018 to a negative $4.3 million during the year ended December 31, 2019. The decrease in net pool allocation was attributable to the movement in the adjustment of the net pool results generated by the GasLog vessels in accordance with the pool distribution formula for the total fleet of the pool, as well as GasLog’s vessels exiting the Cool Pool in June and July 2019. GasLog recognized gross revenues and gross voyage expenses and commissions of $45.3 million and $8.1 million, respectively, from the operation of its vessels in the Cool Pool during the year ended December 31, 2019 (December 31, 2018: $102.3 million and $10.2 million, respectively). GasLog’s total net pool performance is presented below:
Voyage Expenses and Commissions: Voyage expenses and commissions increased by 16.7%, or $3.4 million, from $20.4 million during the year ended December 31, 2018 to $23.8 million during the year ended December 31, 2019. The increase in voyage expenses and commissions is mainly attributable to an increase of $3.4 million in bunkers and voyage expenses consumed during certain unchartered and off-hire periods for the vessels trading in the spot market.

                                                                                | For the year ended |
---------------------------------------------------------------------------------------- | ------------------ | -------
                                                                                | 2018               | 2019
Amounts in thousands of U.S. Dollars                                                     |                    |
Pool gross revenues (included in Revenues)                                               | 102,253            | 45,253
Pool gross voyage expenses and commissions (included in Voyage expenses and commissions) | (10,154)           | (8,086)
GasLog’s adjustment for net pool allocation (included in Net pool allocation)            | 17,818             | (4,264)
GasLog’s total net pool performance                                                      | 109,917            | 32,903

Net Pool Allocation decreased $22. 1 million from positive $17. 8 million 2018 to negative $4. 3 million 2019. attributable results GasLog vessels vessels exiting Cool Pool June July 2019. recognized revenues voyage expenses commissions $45. 3 million $8. 1 million December 31, 2019 $102. 3 million $10. 2 million. total net pool performance
 Voyage Expenses Commissions increased 16. 7% $3. 4 million from $20. 4 million 2018 to $23. 8 million 2019. attributable increase $3. 4 million bunkers voyage expenses unchartered off-hire periods spot market.
 2019
.
 revenues 102,253 45,253
 voyage expenses commissions (10,154
 GasLog’s adjustment net pool allocation 17,818
 total net pool performance 109,917 32,903


Customers and Markets
Our primary customers, in terms of our sales revenues, include premier integrated device manufacturers, such as Texas Instruments and Intel Mobile, plus leading fabless design companies, such as Broadcom, MediaTek, Realtek, Qualcomm and Novatek. Although we are not dependent on any single customer, a significant portion of our operating revenues has been generated from sales to a few customers. Our top ten customers accounted for approximately 51.3% of our operating revenues in 2019. Set forth below is a geographic breakdown of our operating revenues in 2017, 2018 and 2019 by the location of our customers.

                            |       | Years Ended December 31, |
--------------------------- | ----- | ------------------------ | -----
Region                      | 2017  | 2018                     | 2019
                            | %     | %                        | %
Taiwan                      | 32.8  | 36.4                     | 36.4
Singapore                   | 20.6  | 16.4                     | 16.2
China (including Hong Kong) | 12.7  | 12.2                     | 12.9
Japan                       | 3.2   | 3.9                      | 6.6
USA                         | 12.2  | 15.6                     | 13.5
Europe                      | 9.6   | 8.3                      | 4.7
Others                      | 8.9   | 7.2                      | 9.7
Total                       | 100.0 | 100.0                    | 100.0

Customers Markets
 primary customers include device manufacturers Texas Instruments Intel Mobile design companies Broadcom MediaTek Realtek Qualcomm Novatek. not dependent on single customer operating revenues generated from sales few customers. top ten customers. 3% operating revenues 2019. geographic breakdown operating revenues 2017 2018 2019 by location.
 Ended December 31,
 2017 2018 2019
 Taiwan 32. 36.
 Singapore 20. 16.
 China Hong Kong 12.
 Japan 3. 6.
 12. 15. 13.
 Europe 9. 8.
. 9.
 100.


Export sales from the U.S. during the years ended December 31, 2019, 2018 and 2017 were $531.8, $578.0 and $512.5, respectively. In the year ended December 31, 2019, these exports were shipped primarily to Asia (33%), Europe (24%), Canada (18%), Middle East (13%) and other (12%).
Sales to customers outside the U.S. accounted for a significant portion of Roper’s revenues. Sales are attributed to geographic areas based upon the location where the product is ultimately shipped. Roper’s net revenues for the years ended December 31, 2019, 2018 and 2017 are shown below by region, except for Canada, which is presented separately as it is the only country in which Roper has had greater than 4% of total revenues for any of the three years presented:

                  | Application Software | Network Software & Systems | Measurement & Analytical MeasurementSolutions | Process Technologies | Total
----------------- | -------------------- | -------------------------- | --------------------------------------------- | -------------------- | ----------
2019              |                      |                            |                                               |                      |
Canada            | $   41.0             | $   71.1                   | $   81.4                                      | $   28.9             | $ 222.4
Europe            | 188.8                | 36.7                       | 307.2                                         | 113.8                | 646.5
Asia              | 3.5                  | 18.8                       | 185.0                                         | 108.0                | 315.3
Middle East       | 8.6                  | 37.5                       | 13.1                                          | 44.4                 | 103.6
Rest of the world | 25.8                 | 9.5                        | 45.3                                          | 55.2                 | 135.8
Total             | $ 267.7              | $ 173.6                    | $ 632.0                                       | $ 350.3              | $ 1,423.6
2018              |                      |                            |                                               |                      |
Canada            | $   38.5             | $   58.5                   | $   79.3                                      | $   35.0             | $    211.3
Europe            | 188.6                | 12.2                       | 361.7                                         | 117.5                | 680.0
Asia              | 3.2                  | 11.0                       | 220.3                                         | 115.4                | 349.9
Middle East       | 4.7                  | 48.6                       | 14.4                                          | 34.4                 | 102.1
Rest of the world | 29.5                 | 7.8                        | 42.5                                          | 55.0                 | 134.8
Total             | $  264.5             | $  138.1                   | $  718.2                                      | $  357.3             | $  1,478.1
2017              |                      |                            |                                               |                      |
Canada            | $   26.6             | $   52.9                   | $   72.9                                      | $   34.7             | $    187.1
Europe            | 176.5                | 11.0                       | 310.6                                         | 98.1                 | 596.2
Asia              | 2.4                  | 7.3                        | 205.9                                         | 109.8                | 325.4
Middle East       | 4.8                  | 58.8                       | 13.4                                          | 35.5                 | 112.5
Rest of the world | 23.2                 | 6.1                        | 42.0                                          | 48.7                 | 120.0
Total             | $  233.5             | $  136.1                   | $  644.8                                      | $  326.8             | $  1,341.2

Export sales U. December 2019 2018 2017 $531. $578. $512. 5. exports shipped Asia Europe (24%) Canada (18%) Middle East (13%) (12%).
 Sales outside. significant portion Roper’s revenues. geographic areas. net revenues December 2019 2018 2017 region except Canada only country 4% total revenues
 Application Software Network Software Systems Measurement Analytical Process Technologies
 Canada $ 41. $ 71. $ 81. 28. $ 222.
 Europe 188. 36. 307. 113. 646.
 Asia 3. 18. 185. 108. 315.
 Middle East 8. 37. 13. 44. 103.
 world 25. 9. 45. 55. 135.
 $ 267. $ 173. $ 632. 350. 1,423.
 Canada $ 38. 58. $ 79. 35. $ 211.
 Europe 188. 12. 361. 117. 680.
 Asia 3. 2 11. 220. 115. 349.
 Middle East 4. 7 48. 14. 34. 102.
 world 29. 5 7. 42. 55. 134.
. 138. 718. 357. 1,478.
 Canada 26. 6 52. 72. 34. 187.
 176. 5 11. 310. 98. 596.
 2. 7. 205. 109. 325.
 Middle East 4. 58. 13. 35. 112.
 world 23. 6. 42. 48. 120.
 233. 136. 326. 1,341.


Revenue by geographic area are as follows (in thousands):
Revenues by geographic area are based upon the country of billing. The geographic location of distributors and OEM customers may be different from the geographic location of the ultimate end users of the products and services provided by us. No single non-U.S. country accounted for more than 10% of our revenue in fiscal years ended February 28, 2019, 2018 and 2017.

                               |         | Year Ended February 28, |
------------------------------ | ------- | ----------------------- | -------
                               | 2019    | 2018                    | 2017
United States                  | 268,453 | 265,613                 | 259,974
Europe, Middle East and Africa | 49,496  | 45,830                  | 49,918
South America                  | 15,134  | 20,699                  | 17,738
Canada                         | 9,815   | 14,958                  | 8,412
Asia and Pacific Rim           | 13,958  | 12,873                  | 8,967
All other                      | 6,944   | 5,939                   | 6,093
                               | 363,800 | 365,912                 | 351,102

Revenue geographic area
 based country billing. distributors OEM customers end users products. No non. country 10% revenue years 2019 2018 2017.
 United States 268,453 265,613 259,974
 Europe Middle East Africa 49,496 45,830
 South America 15,134 20,699 17,738
 Canada 9,815 14,958 8,412
 Asia Pacific Rim 13,958 12,873 8,967
 6,944
 363,800 365,912,102


The average duration of the defined benefit obligation at the end of the reporting period is 6.8 years (2018: 6.3 years) which relates wholly to active participants.
The plan invests entirely in pooled superannuation trust products where prices are quoted daily. The asset allocation of the plan has been set taking into account the membership profile, the liquidity requirements of the plan, and risk appetite of the Group.
The percentage invested in each asset class is as follows:

                          | 2019  | 2018
------------------------- | ----- | -----
                          | %     | %
Equity instruments        | 53.9  | 58.5
Debt instruments          | 18.6  | 22.5
Real estate               | 10.8  | 3.5
Cash and cash equivalents | 3.7   | 3.0
Other                     | 13.0  | 12.5
Total                     | 100.0 | 100.0

average duration defined benefit obligation 6. 8 years (2018. 3 years active participants.
 invests pooled superannuation trust products prices quoted daily. allocation membership profile liquidity requirements risk appetite.
 percentage invested each asset class
 Equity instruments 53. 58.
 Debt instruments 18. 22.
 Real estate 10.
 Cash equivalents.
 13. 12.
 100.


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)
26. Derivative Financial Instruments
The fair value of the derivative assets is as follows:

                                                                                | As of December 31, |
--------------------------------------------------------------------------------------- | ------------------ | -----
                                                                                | 2018               | 2019
Derivative assets carried at fair value through profit or loss (FVTPL)                  |                    |
Interest rate swaps                                                                     | 15,188             | 18
Forward foreign exchange contracts                                                      | —                  | 389
Derivative assets designated and effective as hedging instruments carried at fair value |                    |
Cross currency swaps                                                                    | —                  | 3,594
Total                                                                                | 15,188             | 4,001
Derivative financial instruments, current assets                                        | 6,222              | 429
Derivative financial instruments, non-current assets                                    | 8,966              | 3,572
Total                                                                                | 15,188             | 4,001

GasLog Ltd. Subsidiaries
 financial statements
 years December 31, 2017 2018 2019
 amounts. S. Dollars except
. Derivative Financial Instruments
 fair value
 December 31,
 2019
 assets profit loss
 Interest rate swaps 15,188
 foreign exchange contracts
 hedging instruments
 Cross currency swaps 3,594
 15,188 4,001
 current assets 6,222
 non-current assets 8,966 3,572
 15,188


17. Called up share capital
Called up share capital is the number of shares in issue at their par value. A number of shares were allotted during the year in relation to employee share schemes.
Accounting policies
Equity instruments issued by the Group are recorded at the amount of the proceeds received, net of direct issuance costs.
Notes: 1 At 31 March 2019 the Group held 1,584,882,610 (2018: 2,139,038,029) treasury shares with a nominal value of €264 million (2018: €356 million). The market value of shares held was €2,566 million (2018: €4,738 million). During the year, 45,657,750 (2018: 53,026,317) treasury shares were reissued under Group share schemes. On 25 August 2017, 729,077,001 treasury shares were issued in settlement of tranche 1 of a maturing subordinated mandatory convertible bond issued on 19 February 2016. On 25 February 2019, 799,067,749 treasury shares were issued in settlement of tranche 2 of the maturing subordinated mandatory convertible bond.
2 On 5 March 2019 the Group announced the placing of subordinated mandatory convertible bonds totalling £1.72 billion with a 2 year maturity date in 2021 and £1.72 billion with a 3 year maturity date due in 2022. The bonds are convertible into a total of 2,547,204,739 ordinary shares with a conversion price of £1.3505 per share.
3 Represents US share awards and option scheme awards.

                                                                              |                | 2019  |                | 2018
----------------------------------------------------------------------------- | -------------- | ----- | -------------- | -----
                                                                              | Number         | €m    | Number         | €m
Ordinary shares of 2020⁄21 US cents each allotted, issued and fully paid:1, 2 |                |       |                |
1 April                                                                       | 28,814,803,308 | 4,796 | 28,814,142,848 | 4,796
Allotted during the year3                                                     | 454,870        | –     | 660,460        | –
31 March                                                                      | 28,815,258,178 | 4,796 | 28,814,803,308 | 4,796

. share capital
 shares par value. allotted employee share schemes.
 Equity instruments recorded proceeds issuance costs.
 31 March 2019 Group held 1,584,882,610 (2018 2,139,038,029) treasury shares value €264 million (2018 €356 million. market value €2,566 million (2018 €4,738 million. 45,657,750 (2018 53,026,317) shares reissued Group share schemes. 25 August 2017 729,077,001 shares issued 1 convertible bond. 25 February 2019,067,749 shares issued 2.
 5 March 2019 convertible bonds £1. 72 billion 2 year maturity 2021 £1. 72 billion 3 year 2022. bonds convertible 2,547,204,739 ordinary shares price £1. 3505 per share.
 share awards option scheme awards.
 allotted issued
 28,814,803,308
March 28,815,258,178 4,796


Consolidated Results
The table below sets forth for the fiscal years ended April 30, 2019 and 2018, the percentage of consolidated net sales represented by certain items in the Company’s consolidated statements of operations:

                                                       | 2019   | 2018
------------------------------------------------------ | ------ | -------
Revenues                                               |        |
FEI-NY                                                 | 76.9%  | 68.4%
FEI-Zyfer                                              | 24.7   | 38.8
Less intersegment revenues                             | (1.6)  | (7.2)
                                                       | 100.0  | 100.0
Cost of Revenues                                       | 68.1   | 86.9
Gross profit                                           | 31.9   | 13.1
Selling and Administrative expenses                    | 24.5   | 26.9
Research and Development expenses                      | 13.1   | 17.6
Operating Profit/(Loss)                                | (5.7)  | (31.4)
Other Income (Expenses), net                           | 0.7    | 2.8
Provision (Benefit) for Income Taxes                   | 0.1    | 28.4
Loss from continuing operations                        | (5.1)  | (57.0)
(Loss) Income from discontinued operations, net of tax | -      | (2.5)
Loss on sale of discontinued operations                | -      | (0.9)
Net Loss                                               | (5.1)% | (60.4)%

Consolidated Results
 table fiscal years 30 2019 2018 consolidated sales statements
 Revenues
 76. 9% 68. 4%
 24. 38.
 intersegment revenues. (7.
 100.
 Cost Revenues 68. 86.
 Gross profit 31. 13.
 Selling Administrative expenses 24. 26.
 Research Development expenses 13. 17.
 Operating Profit(Loss (5. (31.
 Income. 2.
 Provision (Benefit Income Taxes. 28.
 Loss continuing operations (5.
 Income discontinued operations.
 Loss discontinued operations.
 Loss (5.


The amount of unrecognized tax benefits at December 31, 2019 increased by $387 million in 2019 to $7,146 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
The additions to unrecognized tax benefits related to the current and prior years were primarily attributable to U.S. federal and state tax matters, as well as non-U.S. tax matters, including transfer pricing, credits and incentives. The settlements and reductions to unrecognized tax benefits for tax positions of prior years were primarily attributable to U.S. federal and state tax matters, non-U.S. audits and impacts due to lapse of statute of limitations.
The unrecognized tax benefits at December 31, 2019 of $7,146 million can be reduced by $584 million associated with timing adjustments, U.S. tax credits, potential transfer pricing adjustments and state income taxes. The net amount of $6,562 million, if recognized, would favorably affect the company’s effective tax rate. The net amounts at December 31, 2018 and 2017 were $6,041 million and $6,064 million, respectively.

($ in millions)                                                                           |        |         |
----------------------------------------------------------------------------------------- | ------ | ------- | ------
                                                                                | 2019   | 2018    | 2017
Balance at January 1                                                                      | $6,759 | $ 7,031 | $3,740
Additions based on tax positions related to the current year                              | 816    | 394     | 3,029
Additions for tax positions of prior years                                                | 779    | 1,201   | 803
Reductions for tax positions of prior years (including impacts due to a lapse of statute) | (922)  | (1,686) | (367)
Settlements                                                                               | (286)  | (181)   | (174)
Balance at December 31                                                                    | $7,146 | $ 6,759 | $7,031

unrecognized tax benefits December 31, 2019 increased $387 million to $7,146 million.
 additions. federal state tax non-U. tax transfer pricing credits incentives. settlements reductions. federal state tax non. audits statute limitations.
 benefits $7,146 million reduced $584 million timing adjustments. tax credits transfer pricing state income taxes. net $6,562 million effective tax rate. net amounts December 31, 2018 2017 $6,041 million $6,064 million.
 Balance January 1 $6,759 $ 7,031 $3,740
 Additions tax positions 816 3,029
 Additions prior 1,201 803
 Reductions lapse statute (922) (1,686) (367)
 Settlements (286) (181)
 Balance December 31 $7,146 6,759 $7,031


CAPITAL EXPENDITURES
Capital expenditures include costs associated with acquiring property, plant and equipment and placing it into service. The telecommunications business requires extensive and continual investments, including investment in new technologies and the expansion of capacity and geographical reach. Expenditures related to the acquisition of spectrum licences and additions to right-of-use assets are not included in capital expenditures and do not factor into the calculation of free cash flow or capital intensity. See “Managing Our Liquidity and Financial Resources”, “Key Performance Indicators”, and “Non-GAAP Measures and Related Performance Measures” for more information.
Capital expenditures are significant and have a material impact on our cash flows; therefore, our management teams focus on planning, funding, and managing them. We believe this measure best reflects our cost of property, plant and equipment in a given period and is a simpler measure for comparing between periods.
1 Includes additions to property, plant and equipment net of proceeds on disposition, but does not include expenditures for spectrum licences or additions to right-of-use assets. 2 As defined. See “Key Performance Indicators”.
WIRELESS The increase in capital expenditures in Wireless this year was a result of investments made to upgrade our wireless network to continue delivering reliable performance for our customers. We continued augmenting our existing LTE network with 4.5G technology investments that are also 5G-ready to prepare for the commercial launch of 5G in select markets in early 2020. In 2019, we acquired spectrum licences for $1,731 million, which is not included in the table above. See “Managing Our Liquidity and Financial Resources”.
CABLE The decrease in capital expenditures in Cable this year was a result of lower purchases of customer premise equipment and lower investments related to the initial launch of Ignite TV. We have continued upgrading our network infrastructure with additional fibre deployments, including increasing our fibre-to-the-home and fibre-to-the-curb distribution. These upgrades will lower the number of homes passed per node and incorporate the latest technologies to help deliver more bandwidth and an even more reliable customer experience as we progress in our Connected Home roadmap.
MEDIA The increase in capital expenditures this year was a result of higher investments in renovations at various Toronto Blue Jays facilities, partially offset by lower investment in our broadcast and IT infrastructure and the sale of our publishing business.
CORPORATE The increase in Corporate capital expenditures this year was a result of higher investments in IT and our various real estate facilities this year, including the impact of $25 million of proceeds from the sale of certain assets last year.
CAPITAL INTENSITY Capital intensity this year was in line with 2018.

(In millions of dollars, except capital intensity) | Years ended December 31 |       |
-------------------------------------------------- | ----------------------- | ----- | -------
                                                   | 2019                    | 2018  | %Chg
Capital expenditures 1                             |                         |       |
Wireless                                           | 1,320                   | 1,086 | 22
Cable                                              | 1,153                   | 1,429 | (19)
Media                                              | 102                     | 90    | 13
Corporate                                          | 232                     | 185   | 25
Capital expenditures 1                             | 2,807                   | 2,790 | 1
Capital intensity 2                                | 18.6%                   | 18.5% | 0.1 pts

CAPITAL EXPENDITURES
 acquiring property plant equipment service. telecommunications business requires investments new technologies expansion capacity geographical reach. spectrum licences additions right-of-use assets not cash flow capital intensity. See “Managing Liquidity Financial Performance-GAAP Measures Related Performance Measures”.
 Capital expenditures cash flows management focus planning funding managing. measure reflects cost property plant equipment.
 Includes additions property plant equipment spectrum licences additions right-of-use assets. Performance Indicators”.
 WIRELESS increase capital expenditures network. LTE network 4. 5G 5G-ready launch 5G 2020. 2019 acquired spectrum licences for $1,731 million not included table. Liquidity Financial Resources”.
 CABLE decrease capital expenditures lower purchases equipment investments Ignite TV. upgrading network infrastructure fibre deployments fibre-to-the-home-the-curb distribution. upgrades lower homes passed per node technologies more bandwidth reliable experience Connected Home roadmap.
increase capital expenditures renovations Toronto Blue Jays facilities offset lower investment broadcast IT infrastructure sale publishing business.
 CORPORATE increase higher investments IT real estate facilities $25 million sale assets.
 CAPITAL INTENSITY line 2018.
 Years ended December 31
 2019 2018
 Capital expenditures
 Wireless 1,320  1,086
 Cable 1,153  1,429
 Media 102
 Corporate 232 185
 Capital expenditures 2,807 2,790
 intensity. 6%. 5%.


9. BALANCE SHEET DETAILS
Prepaid expenses and other assets consist of the following (in thousands):

                                        | Fiscal year-end |
--------------------------------------- | --------------- | -------
                                        | 2019            | 2018
Prepaid and refundable income taxes     | $44,096         | $37,884
Other taxes receivable                  | 11,208          | 16,930
Prepaid expenses and other assets       | 22,689          | 30,266
Total prepaid expenses and other assets | $77,993         | $85,080

. BALANCE
 Prepaid expenses assets
 Prepaid refundable income taxes $44,096 $37,884
 taxes 11,208 16,930
 Prepaid expenses assets 22,689 30,266
 $77,993 $85,080


Operating income included the following:
(1) Represents the write-off of certain spare parts.
See discussion of operating income below under “Segment Results.”

                                                                                |        | Fiscal
-------------------------------------------------------------------------------------- | ------ | -------------
                                                                                | 2019   | 2018
                                                                                |        | (in millions)
Acquisition-related charges:                                                           |        |
Acquisition and integration costs                                                      | $  27  | $  14
Charges associated with the amortization of acquisition related fair value adjustments | 3      | 8
                                                                                | 30     | 22
Restructuring and other charges, net                                                   | 255    | 126
Other items(1)                                                                         | 17     | —
Total                                                                                | $  302 | $  148

Operating income
 write-off spare parts.
 Results.
 2019 2018
 millions
 Acquisition-related charges
 costs $ 27  $ 14
 amortization acquisition value adjustments 3
 30 22
 Restructuring charges 255  126
 Total $ 302 $ 148


The credit risk profile of trade receivables
Other than those disclosed above no other impairment losses on receivables and contract assets arising from contracts with customers have been recognised. Other than trade receivables there are no financial assets that are past their due date at 31st December 2019.
Payment terms across the Group vary dependent on the geographic location of each operating company. Payment is typically due between 20 and 90 days after the invoice is issued.
All contracts with customers do not contain a significant financing component.
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:

                                     | 2019  | 2018
------------------------------------ | ----- | -----
                                     | £m    | £m
Balance at 1st January               | 9.8   | 9.6
Additional impairment                | 8.6   | 2.8
Amounts written off as uncollectable | (1.2) | (0.7)
Amounts recovered                    | (0.6) | (0.5)
Impairment losses reversed           | (1.1) | (1.4)
Exchange differences                 | (0.7) | –
Balance at 31st December             | 14.8  | 9.8

credit risk profile trade receivables
 no impairment losses assets recognised. no financial assets past due date at 31st December 2019.
 Payment terms vary location. due 20 90 days after invoice issued.
 contracts contain significant financing component.
 movement allowance impairment trade receivables
 2019 Balance at 1st January 9. 8
 Additional impairment.
 Amounts written uncollectable.
 Amounts recovered.
 Impairment losses reversed.
 Exchange differences.
 Balance at 31st December 14.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
NOTE 3 — Accounts Receivable
The components of accounts receivable are as follows:

                                      | As of December 31, |
------------------------------------- | ------------------ | -------
                                      | 2019               | 2018
Accounts receivable, gross            | $78,269            | $79,902
Less: Allowance for doubtful accounts | (261)              | (384)
Accounts receivable, net              | $78,008            | $79,518

FINANCIAL STATEMENTS thousands
 3 Accounts Receivable
 components
 December 31,
 2018
 gross $78,269 $79,902
 Allowance doubtful accounts (261) (384)
 net $78,008 $79,518


Medical Segment Results
Below is a table summarizing results for the fiscal years ended:
Net Sales. The Medical segment had minimal net sales in both periods from newly launched products.
Gross Profit. Medical segment gross profit was a loss of $3.5 million in fiscal 2018 compared to a loss of $3.1 million in fiscal 2017. The increased loss primarily relates to the vertical manufacturing integration of some key components and research efforts to expand the product offerings.
Loss from Operations. Medical segment loss from operations increased $2.9 million to $11.4 million in fiscal 2018 compared to $8.5 million in fiscal 2017. The increased loss relates to higher outside professional fees, research and development and marketing expenses in fiscal 2018. Financial Condition, Liquidity and Capital Resources

(Dollars in Millions) | April 28, 2018 | April 29, 2017 | Net Change ($) | Net Change (%)
--------------------- | -------------- | -------------- | -------------- | --------------
Net Sales             | $ 0.3          | $ 0.2          | $ 0.1          | 50.0 %
Gross Profit          | $ (3.5)        | $ (3.1)        | $ (0.4)        | (12.9)%
Loss from Operations  | $ (11.4)       | $ (8.5)        | $ (2.9)        | (34.1)%

Medical Segment Results
 table fiscal years
 Net Sales. Medical segment minimal sales newly launched products.
 Gross Profit. loss $3. 5 million 2018 $3. 1 million 2017. increased loss vertical manufacturing research product offerings.
 Loss Operations. increased $2. 9 million to $11. 4 million 2018 $8. 5 million 2017. loss higher professional fees research development marketing expenses. Financial Condition Liquidity Capital Resources
 Millions April 28, 2018 April 29, 2017 Net Change$
 Net Sales.
 Gross Profit (3.
 Loss Operations (11.


ALTERNATIVE PERFORMANCE MEASURES
Time Charter Equivalent (TCE) earnings:
TORM defines TCE earnings, a performance measure, as revenue after port expenses, bunkers and commissions incl. freight and bunker derivatives. The Company reports TCE earnings because we believe it provides additional meaningful information to investors in relation to revenue, the most directly comparable IFRS measure. TCE earnings is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance irrespective of changes in the mix of charter types (i.e. spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods. Below is presented a reconciliation from Revenue to TCE earnings:

USDm                                   | 2019   | 2018   | 2017
-------------------------------------- | ------ | ------ | ------
Reconciliation to revenue              |        |        |
Revenue                                | 692.6  | 635.4  | 657.0
Port expenses, bunkers and commissions | -267.7 | -283.0 | -259.9
TCE earnings                           | 424.9  | 352.4  | 397.1

PERFORMANCE MEASURES
 Time Charter Equivalent earnings
 TORM defines revenue after port expenses bunkers commissions. freight derivatives. Company reports TCE earnings information IFRS measure. TCE earnings standard shipping industry performance measure period-to-period shipping performance charter types. reconciliation Revenue to TCE earnings
 2019 2018
 Reconciliation revenue
 Revenue 692. 635. 657.
 Port expenses bunkers commissions -267. -259.
 TCE earnings 424. 352. 397.


Capital and financial risk management
13 Capital risk management
The Group's objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to provide returns to its shareholders and benefits to its stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
In the future, the Directors may pursue funding options such as debt, sale and leaseback of assets, additional equity and various other funding mechanisms as appropriate in order to undertake its projects and deliver optimum shareholders’ return.
The Group intends to maintain a gearing ratio appropriate for a company of its size and growth.
The Group manages its capital structure by regularly reviewing its gearing ratio to ensure it maintains an appropriate level of gearing within facility covenants. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total interest bearing financial liabilities, less cash and cash equivalents. Total capital is calculated as equity, as shown in the Consolidated Balance Sheet, plus net debt.

                                | 30 June 2019 | 30 June 2018
------------------------------- | ------------ | ------------
                                | $'000        | $'000
Total borrowings and lease      | 867,177      | 302,954
Less: cash and cash equivalents | (398,999)    | (417,982)
Net debt (surplus cash)         | 468,178      | (115,028)
Total equity                    | 875,303      | 893,977
Total capital                   | 1,343,481    | 778,949
Gearing ratio                   | 35.0%        | -%

Capital financial risk management
 Group objectives safeguard going concern provide returns benefits maintain optimal capital structure reduce cost.
 Directors pursue debt sale leaseback equity return.
 gearing ratio size growth.
 manages gearing ratio. ratio calculated net debt divided total capital. debt interest liabilities less cash equivalents. capital equity Consolidated Balance Sheet plus net debt.
 2019 June 2018
 Total borrowings lease 867,177 302,954
 cash equivalents (398,999) (417,982)
 Net debt cash 468,178 (115,028)
 Total equity 875,303 893,977
 capital 1,343,481 778,949
 Gearing ratio 35. 0%


14 Taxation
UK corporation tax for the year-ended 31 March 2019 is calculated at 19% (2018: 19%) of the estimated assessable loss for the period.

                                                  | Year-ended 31 March 2019 | Year-ended 31 March 2018 Restated See note 2
------------------------------------------------- | ------------------------ | --------------------------------------------
                                                  | $M                       | $M
Current income tax:                               |                          |
UK corporation tax                                | 1.3                      | 1.2
Adjustments in respect of previous years UK tax   | 0.3                      | 0.3
Overseas tax before exceptional items             | 22.2                     | 23.0
Adjustment in respect of previous years           | 13.1                     | 10.2
Total current tax charge                          | 36.9                     | 34.7
Deferred tax:                                     |                          |
Origination and reversal of temporary differences | 2.5                      | (16.7)
Impact of changes in US tax rate                  | -                        | 5.4
Adjustment in respect of previous years           | (12.7)                   | (3.5)
Total deferred tax credit                         | (10.2)                   | (14.8)
Total income tax charge                           | 26.7                     | 19.9

 UK corporation tax-ended 31 March 2019 19% estimated assessable loss.
-ended 2019 2018
 Current income tax
 UK corporation tax 1.
 Adjustments previous years.
 Overseas tax items 22. 23.
 13. 10.
 current tax charge 36. 34.
 Deferred tax
 reversal temporary differences 2.
 changes US tax rate 5.
 Adjustment previous years (12.
 deferred tax credit (10. (14.
 income tax charge 26. 19.


Free cash flow generation
Bridge from operating income to free cash flow (illustrative)
Focus on delivering a high conversion of operating income to free cash flow of operating income to free cash flow
of operating income to free cash flow
Ongoing activities to reduce costs “below operating income”, including restructuring, financial net and tax
Striving to maintain working capital efficiency but fluctuations may impact cash flow
Planning assumption for capex is about 2% of net sales, while expected to remain above 2% in 2020 due to the new factory in the US
Ambition to over time maintain restructuring charges to around 1% of net sales
M&A will vary depending on strategic decisions but assumed to be around 1–2% of net sales
Operating margin excluding restructuring charges. All numbers are in relation to net sales.
1) Restructuring charges as reported in the income statement for each year.

                                | 2018   | 2019  | Ambition
------------------------------- | ------ | ----- | ---------
Operating margin                | 4.4%   | 5.0%  | >12%
financial net, tax and other    | -3.8%  | -2.5% | -4%
+ depreciation and amortization | +3.9%  | +2.9% | +3 to 4%
+ depreciation of leased assets | –      | +1.1% | +1%
± change in working capital     | +3.7%  | +1.0% | ±0
- capex                         | - 2.4% | -2.8% | -2%
- leasing payment               | -      | -1.3% | -1%
-  restructuring costs1)        | -3.8%  | -0.4% | -1%
Free cash flow (before M&A)     | 2.0%   | 3.4%  | >8%
- M&A                           | -0.6%  | -0.7% | ~1 to -2%

cash flow
 high conversion operating income
 reduce costs restructuring financial net tax
 working capital efficiency impact cash flow
 capex 2% net sales above 2% 2020 new factory
 maintain restructuring charges 1% net sales
 M&A 1–2% net sales
 Operating margin excluding restructuring charges. net sales.
 Restructuring charges income statement.
 Operating margin 4. 4% 5. 0% >12%
 financial net tax -3. 8% -2. 5% -4%
 depreciation amortization. 9% +2.
 depreciation leased assets +1. +1%
 working capital. 7%.
 2. 4% -2. -2%
 leasing payment. -1%
 restructuring -3. 8%. -1%
 Free cash flow M&A 2. 3. >8%
 M&A. 6%. 7%


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)
19. Financial Income and Costs
An analysis of financial income and costs is as follows:

                                                                                |         | For the year ended December 31, |
------------------------------------------------------------------------------------- | ------- | ------------------------------- | -------
                                                                                | 2017    | 2018                            | 2019
Financial Income                                                                      |         |                                 |
Interest income                                                                       | 2,650   | 4,784                           | 5,318
Total financial income                                                                | 2,650   | 4,784                           | 5,318
Financial Costs                                                                       |         |                                 |
Amortization and write-off of deferred loan/bond issuance costs/premium               | 12,398  | 12,593                          | 14,154
Interest expense on loans and realized loss on cash flow hedges                       | 85,813  | 111,600                         | 122,819
Interest expense on bonds and realized loss on CCSs                                   | 27,085  | 30,029                          | 34,607
Lease charge                                                                          | 10,875  | 10,520                          | 10,506
Loss arising on bond repurchases at a premium (Note 13)13)                            | 1,459   | —                               | 2,119
Other financial costs, including unrealized foreign exchange losses on cash and bonds | 1,551   | 1,885                           | 6,276
Total financial costs                                                                 | 139,181 | 166,627                         | 190,481

GasLog Ltd. Subsidiaries
 consolidated financial statements
 years December 31, 2017 2018 2019
. Dollars
. Financial Income Costs
 December
 Income
 Interest income 2,650 4,784 5,318
 Costs
 Amortization deferred loan 12,398 12,593 14,154
 Interest expense loans loss cash flow hedges 85,813 111,600
 Interest bonds loss CCSs 27,085 30,029 34
 Lease charge 10,875
 Loss bond repurchases 1,459
 costs unrealized foreign exchange losses cash bonds 1,551 1,885 6,276
 costs 139,181 166,627 190,481


Note 16: Quarterly Results of Operations (Unaudited)
The following table sets forth certain quarterly information for fiscal years 2019 and 2018. This information, in the opinion of the Company’s management, reflects all adjustments (consisting only of normal recurring adjustments) necessary to present fairly this information when read in conjunction with the Consolidated Financial Statements and notes thereto included elsewhere herein (amounts in thousands except per share data):
(1) Operating income (loss) as a percentage of net sales fluctuates from quarter to quarter due to a number of factors, including net sales fluctuations, foreign currency exchange, restructuring charges, product mix, the timing and expense of moving product lines to lower-cost locations, the write-down of long lived assets, the net gain/loss on sales and disposals of assets and the relative mix of sales among distributors, original equipment manufacturers, and electronic manufacturing service providers.

Fiscal Year 2019 Quarters Ended |          |          |          |
------------------------------- | -------- | -------- | -------- | --------
                                | Jun-30   | Sep-30   | Dec-31   | Mar-31
Net sales                       | $327,616 | $349,233 | $350,175 | $355,794
Gross margin                    | 94,821   | 113,565  | 123,750  | 126,406
Operating income (1)            | 35,176   | 50,000   | 61,616   | 54,057
Net income                      | $35,220  | $37,141  | $40,806  | $93,420
Net income per basic share      | $0.61    | $0.64    | $0.70    | $1.60
Net income per diluted share    | $0.60    | $0.63    | $0.69    | $1.58

Quarterly Results Operations
 table quarterly information fiscal years 2019 2018. reflects adjustments Consolidated Financial Statements thousands
 Operating income sales fluctuates foreign currency exchange restructuring charges product mix product lines lower-cost write-down assets net gain/loss sales disposals mix sales distributors original equipment manufacturers electronic manufacturing service providers.
 Fiscal Year 2019 Quarters Ended
 Jun-30 Sep-30 Dec-31
 Net sales $327,616 $349,233 $350,175 $355,794
 Gross margin 94,821 113,565 123,750 126,406
 Operating income 35,176 61,616 54,057
 Net income $35,220 $37,141 $40,806 $93,420
 Net income basic share. 61.
 diluted share.