Net profit/(loss) after tax was $(9.8) million (2018: $6.6 million). Non-statutory underlying earnings before interest, tax, depreciation and amortisation (EBITDA) improved from $62.6 million in FY18 to $85.1 million in FY19.
Reconciliation of statutory profit to EBITDA and underlying EBITDA is as follows:

                                                       | 30 June 2019 | 30 June 2018 | Change
------------------------------------------------------ | ------------ | ------------ | ------
                                                       | $’000        | $’000        | %
Net profit/(loss) after tax                            | (9,819)      | 6,639        | (248%)
Add: finance costs                                     | 54,897       | 25,803       | 113%
Less: interest income                                  | (8,220)      | (5,778)      | 42%
Add/(less): income tax expense/(benefit)               | (6,254)      | 4,252        | (247%)
Add: depreciation and amortisation                     | 48,442       | 33,038       | 47%
EBITDA                                                 | 79,046       | 63,954       | 24%
Less: gain on extinguishment of B1 lease               | (1,068)      | -            |
Less: gain on extinguishment of APDC leases            | (1,291)      | -            |
Less: distribution income                              | (1,344)      | (3,191)      | (58%)
Add: APDC transaction costs                            | 5,459        | 1,812        | 201%
Add: landholder duty on acquisition of APDC properties | 3,498        | -            |
Add: Singapore and Japan costs                         | 823          | -            |
Underlying EBITDA                                      | 85,123       | 62,575       | 36%

profit after tax $. million. earnings improved $62. million to $85. million FY19.
 Reconciliation profit
 2019 2018
 profit after tax (9,819) 6,639 (248%)
 finance costs 54,897 25 113%
 interest income (8,220 42%
 (6,254) 4,252 (247%
 depreciation amortisation 48,442 47%
 EBITDA 79,046 63,954 24%
 gain extinguishment B1 lease
 APDC leases
 distribution income (1,344 (58%)
 APDC transaction costs 5,459 201%
 landholder duty acquisition APDC 3,498
 Singapore Japan costs
 EBITDA 85,123 62,575 36%


Key Balance Sheet Information
Total assets increased $1,234.7 million as at December 31, 2019 compared to December 31, 2018, principally due to a $485.5 million increase in cash, cash equivalents and marketable securities mainly as a result of the public offering in September 2019, which resulted in net proceeds of $688.0 million. Business acquisitions during the year, largely due to the acquisition of 6RS, further impacted total assets through an increase in goodwill of $273.8 million, a $141.2 million increase in intangible assets and a resulting decrease in cash due to the consideration paid. The remainder of the increase is due to: the adoption of the new lease accounting standard, further discussed in the "Critical Accounting Policies and Estimates" section below, which resulted in the addition of right-of-use assets totaling $134.8 million as at December 31, 2019; a $58.3 million increase in merchant cash advances and loans receivable; a $49.8 million increase in property and equipment, largely related to leaseholds for our offices; a $49.2 million increase in trade and other receivables largely due to an increase in indirect taxes receivable, unbilled revenue related to subscription fees for Plus merchants, transaction fees and shipping charges; and a $19.4 million increase in deferred tax assets. Total liabilities increased by $309.7 million, principally as a result of the adoption of the new leasing standard, which resulted in $126.8 million of additional lease liabilities related to obtaining right-of-use assets. Accounts payable and accrued liabilities increased by $84.2 million, which was due to an increase in indirect taxes payable, payroll liabilities, and payment processing and interchange fees, partly offset by a decrease in foreign exchange forward contract liabilities. The increase was also due to income taxes payable of $69.4 million driven largely by the one-time capital gain recognized in the period. Deferred tax liabilities increased by $7.6 million, due to the acquisition of 6RS. The growth in sales of our subscription solutions offering, along with the acquisition of 6RS, resulted in an increase of deferred revenue of $21.6 million.

                                                 | December 31, 2019 | December 31, 2018
------------------------------------------------ | ----------------- | -----------------
                                                 | (in thousands)    |
Cash, cash equivalents and marketable securities | $2,455,194        | $1,969,670
Total assets                                     | 3,489,479         | 2,254,785
Total liabilities                                | 473,745           | 164,017
Total non-current liabilities                    | 157,363           | 25,329

 assets increased $1,234. 7 million December 2019 $485. 5 million increase cash equivalents securities public offering September 2019 proceeds $688. 0 million. acquisitions 6RS impacted goodwill $273. 8 million $141. 2 million intangible assets cash. new lease accounting standard right-of-use assets $134. 8 million $58. 3 million cash advances loans $49. 8 million increase property equipment $49. 2 million increase trade receivables indirect taxes unbilled revenue $19. 4 million deferred tax assets. liabilities increased $309. 7 million new leasing standard $126. 8 million liabilities. Accounts payable accrued liabilities increased $84. 2 million indirect taxes payroll liabilities payment processing fees foreign exchange contract liabilities. income taxes $69. 4 million-time capital gain. Deferred tax liabilities increased $7. 6 million acquisition 6RS.growth subscription acquisition 6RS deferred revenue $21. million.
 Cash equivalents securities $2,455,194 $1,969,670
 assets 3,489,479 2,254,785
 liabilities 473,745 164,017
 non-current 157,363 25


Non-GAAP Results
Management uses non-GAAP operating income and non-GAAP EPS to evaluate business performance without the impacts of certain non-cash charges and other charges which are not part of our usual operations. We use these non- GAAP measures to assess performance against business objectives, make business decisions, including developing budgets and forecasting future periods. In addition, management’s incentive plans include these non-GAAP measures as criteria for achievements. These non-GAAP measures are not in accordance with U.S. GAAP and may differ from non- GAAP methods of accounting and reporting used by other companies. However, we believe these non-GAAP measures provide additional information that enables readers to evaluate our business from the perspective of management. The presentation of this additional information should not be considered a substitute for results prepared in accordance with U.S. GAAP.
The non-GAAP results presented below exclude the impact of non-cash related charges, such as stock-based compensation and amortization of intangible assets. In addition, they exclude discontinued operations and other nonrecurring items such as acquisition-related costs and restructuring expenses, as they are not indicative of future performance. The tax effect of our non-GAAP adjustments represents the anticipated annual tax rate applied to each non-GAAP adjustment after consideration of their respective book and tax treatments and effect of adoption of the Tax Act.

Reconciliation of Non-GAAP measure - operating expenses and operating income from continuing operations, excluding certain items (in thousands) | Years Ended December 31, |
----------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------ | ----------
                                                                                | 2019                     | 2018
Gross profit from continuing operations, as reported                                                                                | $ 315,652                | $365,607
Adjustments to gross profit:                                                                                |                          |
Stock-based compensation                                                                                | 525                      | 742
Facility expansion and relocation costs                                                                                | 3,891                    | 1,328
Acquisition-related costs                                                                                | 8,290                    | 569
Non-GAAP gross profit                                                                                | 328,358                  | 368,246
Non-GAAP gross margin                                                                                | 41.6%                    | 51.2%
Operating expenses from continuing operations, as reported                                                                                | 261,264                  | 194,054
Adjustments:                                                                                |                          |
Amortization of intangible assets                                                                                | (12,168)                 | (5,774)
Stock-based compensation                                                                                | (6,803)                  | (8,961)
Acquisition-related costs                                                                                | (12,002)                 | (1,726)
Facility expansion and relocation costs                                                                                | (948)                    | (518)
Restructuring charges                                                                                | (5,038)                  | (4,239)
Non-GAAP operating expenses                                                                                | 224,305                  | 172,836
Non-GAAP operating income                                                                                | $  104,053               | $  195,410

Non-GAAP Results
 Management uses income EPS performance without-cash. measures assess performance decisions budgets. incentive plans include-GAAP measures. measures not U. S. GAAP differ from accounting reporting. provide additional information. for results. GAAP.
 non-GAAP results exclude non-cash charges stock-based compensation amortization intangible assets. exclude discontinued operations nonrecurring items acquisition-related costs restructuring expenses not future performance. tax effect non-GAAP adjustments represents anticipated annual tax rate Tax Act.
 Reconciliation Non-GAAP measure operating expenses income operations excluding items Years Ended December 31,
 Gross profit operations $ 315,652 $365,607
 Adjustments profit
 Stock-based compensation 525 742
 Facility expansion relocation costs 3,891 1,328
 Acquisition-related costs 8,290 569
 Non-GAAP gross profit 328,358 368,246
 margin 41.. 2%
 expenses 261,264 194,054
 Amortization intangible assets (12,168
 Stock compensation
 Acquisition costs,002
 Facility expansion relocation
 Restructuring (4
 Non-GAAP expenses 224,305 172,836
 income 104,053 195,410


15. Revenue from Contracts with Customers
Impact of Adopting Topic 606
The effects of the adoption on the Company's Consolidated Financial Statements for the fiscal year ended September 28, 2019 was as follows (in thousands):

                                     | September 28, 2019
As Reported | Adjustments due to Topic 606 | September 28, 2019
As Adjusted - Without
Adoption of Topic 606
------------------------------------ | ------------------------------ | ---------------------------- | --------------------------------------------------------------
ASSETS                               |                                |                              |
   Contract assets                   | $90,841                        | $90,841                      | $—
Inventories                          | 700,938                        | (81,895)                     | 782,833
LIABILITIES AND SHAREHOLDERS' EQUITY |                                |                              |
Other accrued liabilities            | $106,461                       | $(375)                       | $106,836
Retained earnings                    | 1,178,677                      | 9,321                        | 1,169,356

. Revenue Contracts
 Adopting Topic 606
 effects adoption Company Financial Statements fiscal year September 28, 2019
 Adjustments Topic 606
 Adoption 606
 Contract assets $90,841
 Inventories 700,938 782,833
 LIABILITIES SHAREHOLDERS' EQUITY
 accrued liabilities $106,461
 Retained earnings 1,178,677 1,169,356


Quarterly Results (Unaudited)
The following table sets forth certain unaudited quarterly financial information for the 2019 and 2018 fiscal years. In the opinion of management, this information has been presented on the same basis as the audited consolidated financial statements appearing elsewhere, and all necessary adjustments (consisting primarily of normal recurring accruals) have been included in the amounts stated below to present fairly the unaudited quarterly results when read in conjunction with the audited consolidated financial statements and related notes thereto. The operating results for any quarter are not necessarily indicative of results for any future period.
(1) Includes acquisition and integration charges related to our strategic collaboration with JJMD of $17.6 million, $13.4 million, $12.8 million, $8.9 million and $8.1 million for the three months ended August 31, 2019, May 31, 2019, February 28, 2019, November 30, 2018 and August 31, 2018, respectively.
(2) Includes ($13.3 million), $111.4 million and $30.9 million of income tax (benefit) expense for the three months ended November 30, 2018, August 31, 2018 and February 28, 2018, respectively, related to the Tax Act.
(3) Includes a restructuring of securities loss of $29.6 million for the three months ended August 31, 2019.
(4) Includes a distressed customer charge of $6.2 million, $18.0 million and $14.7 million during the three months ended August 31, 2019, August 31, 2018 and February 28, 2018, respectively.

Fiscal Year 2019                                                  |                |             |                    |
----------------------------------------------------------------- | -------------- | ----------- | ------------------ | ----------------
                                                                  |                |             | Three Months Ended |
(in thousands, except for per share data)                         | August 31,2019 | May 31,2019 | February 28,2019   | November 30,2018
Net revenue                                                       | $6,573,453     | $6,135,602  | $6,066,990         | $6,506,275
Gross profit(4)                                                   | 495,078        | 443,799     | 454,874            | 519,650
Operating income(1)(4)                                            | 189,745        | 140,918     | 153,983            | 216,710
Net income(2)(3)(4)                                               | 53,761         | 44,032      | 67,607             | 124,074
Net income attributable to Jabil Inc.(2)(3)(4)                    | $52,675        | $43,482     | $67,354            | $123,600
Earnings per share attributable to the stockholders of Jabil Inc. |                |             |                    |
Basic                                                             | $0.34          | $0.28       | $0.44              | $0.77
Diluted                                                           | $0.34          | $0.28       | $0.43              | $0.76

Quarterly Results (Unaudited
 table unaudited quarterly financial information 2019 2018 fiscal years. presented audited financial statements adjustments included. operating results not indicative future period.
 Includes acquisition integration charges $17. 6 million $13. 4 million $12. 8 million $8. 9 million $8. 1 million August 31, May February.
 Includes$13. 3 $111. 4 million $30. 9 million income tax) expense.
 Includes restructuring securities loss $29. 6 million August 31,.
 Includes distressed customer charge $6. 2 million $18. 0 million $14. 7 million August 31, February.
 Fiscal Year 2019
 Three Months
 August 31,2019 May 31,2019 February 28,2019 November 30,2018
 Net revenue $6,573,453 $6,135,602 $6,066,990 $6,506,275
 Gross 495,078 443,799 454,874 519,650
Operating 189,745 140,918 153,983 216,710
 Net 53,761 44,032 67,607 124,074
 Jabil Inc. $52,675 $43,482 $67,354 $123,600
 Earnings per share stockholders Jabil Inc.
. 34.
.


In 2019 and 2018, we had pre-tax losses of $19,573 and $25,403 respectively, which are available for carry forward to offset future taxable income. We made determinations to provide full valuation allowances for our net deferred tax assets at the end of 2019 and 2018, including NOL carryforwards generated during the years, based on our evaluation of positive and negative evidence, including our history of operating losses and the uncertainty of generating future taxable income that would enable us to realize our deferred tax assets.
Deferred tax assets (liabilities) consist of the following:
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that a portion of the net deferred assets will not be realized. The ultimate realization of the net deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets at December 31, 2019 will not be realizable. Accordingly, management has maintained a full valuation allowance against its net deferred tax assets at December 31, 2019. The net change in the total valuation allowance for the 12 months ended December 31, 2019 was an increase of $1,816.

                                                   | As of             | As of
-------------------------------------------------- | ----------------- | -----------------
                                                   | December 31, 2019 | December 31, 2018
Deferred tax assets:                               |                   |
Reserves and accruals                              | $62               | $45
Research and development credits and other credits | 1,730             | 1,635
Net operating loss carry forward                   | 27,907            | 25,733
Stock based compensation                           | 8,402             | 8,857
Other                                              | 11                | 26
Total deferred tax assets                          | 38,112            | 36,296
Valuation allowance                                | (38,112)          | (36,296)
Deferred tax assets after valuation allowance      | —                 | —
Total deferred tax liability                       | —                 | —
Net deferred tax assets (liabilities)              | $—                | $—

2019 2018 pre-tax losses $19,573 $25,403 available carry future taxable income. full valuation allowances net deferred tax assets 2019 2018 including NOL carryforwards positive negative evidence operating losses uncertainty future taxable income.
 Deferred tax assets
. future taxable income. net deferred assets December 31, 2019 realizable. maintained full valuation allowance net deferred tax assets December 31, 2019. net change total valuation allowance 12 months December 31, 2019 increase $1,816.
 December 31, 2019 31, 2018
 Deferred tax assets
 Reserves accruals $62 $45
 Research development credits 1,730
 Net operating loss carry forward 27,907 25,733
 Stock based compensation 8,402
 Total deferred tax assets 38,112 36,296
 Valuation allowance
 after valuation allowance
 Total deferred tax liability
 Net deferred tax assets


Segment Results of Operations
In the Company's Consolidated Financial Statements, other operating (income) expense includes (i) (gain) loss on sale or disposal of assets, (ii) lease termination costs, (iii)
asset impairment expense, (iv) accretion of asset retirement obligations, and (v) FCC reimbursements. Each table summarizes the results of operations of our operating
segments and compares the amount of the change between the periods presented (in millions).                                Marine Services Segment
Net revenue: Net revenue from our Marine Services segment for the year ended December 31, 2019 decreased $21.8 million to $172.5 million from $194.3 million for the year ended December 31, 2018. The decrease was primarily driven by a decline in the volume of projects under execution across multiple reporting lines, including power cable repair in offshore renewables, telecom installation work, and a reduction in CWind Group revenue due to focusing on a mix of more profitable projects.
Cost of revenue: Cost of revenue from our Marine Services segment for the year ended December 31, 2019 decreased $35.9 million to $127.1 million from $163.0 million for the year ended December 31, 2018. The decrease was driven by the reduction in revenue, improved vessel utilization, and higher than expected costs on a certain power construction project in the comparable period that were not repeated.
Selling, general and administrative: Selling, general and administrative expenses from our Marine Services segment for the year ended December 31, 2019 increased $5.6 million to $25.8 million from $20.2 million for the year ended December 31, 2018. The increase was primarily due to higher disposition costs in the fourth quarter of 2019 related to the sale of the Marine Services segment. This was partially offset by a reversal of an accrual of bad debt expense in the current period due to a favorable receivable settlement during the quarter. See Note 24. Subsequent Events for the summary of the subsequent events.
Depreciation and amortization: Depreciation and amortization from our Marine Services segment for the year ended December 31, 2019 decreased $1.5 million to $25.7 million from $27.2 million for the year ended December 31, 2018. The decrease was largely attributable to the disposal of assets during the year.
Other operating income: Other operating income decreased $0.7 million from $0.7 million of income for the year ended December 31, 2018, as a result of an impairment expense recorded in 2019 due to the under-utilization of assets on one of the segment's barges.

                                    |        | Years Ended December 31, |
----------------------------------- | ------ | ------------------------ | ---------------------
                                    | 2019   | 2018                     | Increase / (Decrease)
Net revenue                         | $172.5 | $194.3                   | $(21.8)
Cost of revenue                     | 127.1  | 163.0                    | (35.9)
Selling, general and administrative | 25.8   | 20.2                     | 5.6
Depreciation and amortization       | 25.7   | 27.2                     | (1.5)
Other operating income              | —      | (0.7)                    | 0.7
Income (loss) from operations       | $(6.1) | $(15.4)                  | $9.3

Results Operations
 Consolidated Financial Statements expense includes loss sale disposal lease termination costs
 asset impairment expense asset retirement obligations FCC reimbursements. table summarizes results
 compares change. Marine Services Segment
 Net revenue 2019 decreased $21. 8 million to $172. 5 million from $194. 3 million 2018. driven decline projects repair reduction Group revenue profitable projects.
 Cost revenue 2019 decreased $35. 9 million to $127. 1 million from $163. 0 million 2018. driven reduction improved vessel utilization higher costs power construction project.
 Selling administrative expenses 2019 increased $5. 6 million to $25. 8 million from $20. 2 million 2018. increase due higher disposition costs fourth quarter. offset reversal bad debt expense favorable receivable settlement. Note 24.
 Depreciation amortization 2019 decreased $1. 5 million to $25. 7 million from $27. 2 million 2018.decrease attributable disposal assets.
 decreased $0. 7 million. million December 31, 2018 impairment 2019 under-utilization assets.
 Ended December
 Net revenue $172. $194. $(21.
 Cost revenue 127. 163. (35.
 Selling administrative 25. 20. 5.
 Depreciation amortization 25. 27. 2 (1.
 Other operating income.
 Income (loss) operations $(6. 1) $(15. 4) $9.


The provision for income taxes differs from the amount computed by applying the statutory federal tax rate to income before income taxes. The sources and tax effects of the differences in the total income tax provision are as follows (amounts in millions):
(1) The release of prior year tax positions during fiscal 2019 increased the basic and diluted net income per common share by $0.32 and $0.30, respectively. The release of prior year tax positions during fiscal 2018 increased the basic and diluted net income per common share by $0.05. The release of prior year tax positions during fiscal 2017 increased the basic and diluted net income per common share by $0.17 and $0.15, respectively.
The foreign tax rate differential benefit primarily relates to the Company's operations in Thailand, Malta and Ireland. The Company's Thailand manufacturing operations are currently subject to numerous tax holidays granted to the Company based on its investment in property, plant and equipment in Thailand. The Company's tax holiday periods in Thailand expire between fiscal 2022 and 2026, however, the Company actively seeks to obtain new tax holidays. The Company does not expect the future expiration of any of its tax holiday periods in Thailand to have a material impact on its effective tax rate. The Company’s Microsemi operations in Malaysia are subject to a tax holiday that effectively reduces the income tax rate in that jurisdiction. Microsemi’s tax holiday in Malaysia was granted in 2009 and is effective through December 2019, subject to continued compliance with the tax holiday’s requirements. The aggregate dollar expense derived from these tax holidays approximated $0.1 million in fiscal 2019. The aggregate dollar benefit derived from these tax holidays approximated $6.2 million and $13.2 million in fiscal 2018 and 2017, respectively. The impact of the tax holidays during fiscal 2019 did not impact basic and diluted net income per common share. The impact of the tax holidays during fiscal 2018 increased the basic and diluted net income per common share by $0.03 and $0.02, respectively. The impact of the tax holidays during fiscal 2017 increased the basic and diluted net income per common share by $0.06.

                                                                        |          | Year Ended March 31, |
----------------------------------------------------------------------- | -------- | -------------------- | -------
                                                                        | 2019     | 2018                 | 2017
Computed expected income tax provision                                  | $43.0    | $232.6               | $31.4
State income taxes, net of federal benefit                              | (8.7)    | (1.3)                | (4.6)
Foreign income taxed at lower than the federal rate                     | (94.0)   | (208.8)              | (105.0)
Impact of the Act - one-time transition tax, net of foreign tax credits | 13.1     | 653.7                | —
Impact of the Act - deferred tax effects, net of valuation allowance    | —        | (136.7)              | —
Global intangible low-taxed income                                      | 95.4     | —                    | —
Business realignment                                                    | (90.6)   | —                    | —
Increases related to current year tax positions                         | 9.0      | 32.0                 | 53.7
Decreases related to prior year tax positions (1)                       | (75.1)   | (11.3)               | (36.3)
Share-based compensation                                                | (13.3)   | (27.2)               | (25.0)
Research and development tax credits                                    | (27.5)   | (17.0)               | (12.8)
Intercompany prepaid tax asset amortization                             | 5.2      | 7.4                  | 7.9
Foreign exchange                                                        | 4.6      | (20.5)               | (1.7)
Other                                                                   | (2.6)    | (0.5)                | 9.8
Change in valuation allowance                                           | (9.9)    | (20.5)               | 1.8
Total income tax provision (benefit)                                    | $(151.4) | $481.9               | $(80.8)

provision income taxes from federal tax rate before. sources tax effects differences income tax
 prior year tax positions 2019 increased diluted net income per common share $0. 32 $0. 30. 2018 increased $0. 05. 2017 increased income $0. 17 $0. 15.
 foreign tax rate differential benefit relates to Company operations in Thailand Malta Ireland. Thailand manufacturing operations subject to tax holidays. tax holiday periods expire 2022 2026 seeks new tax holidays. expiration impact tax rate. Microsemi operations in Malaysia subject tax holiday reduces income tax rate. tax holiday granted 2009 effective through December 2019. expense tax holidays $0. 1 million in 2019. benefit $6. 2 million $13. 2 million in 2018 2017. tax holidays 2019 impact net income per share. 2018 increased income by $0. 03 $0. 02. 2017 increased income per by $0. 06.
 Year Ended March

 2019
 income tax provision $43. $232. $31.
 State income taxes federal benefit (8.
 Foreign income taxed lower federal rate (94. (105.
 one-time transition tax foreign tax credits 13. 653.
 deferred tax effects valuation allowance (136.
 low-taxed income 95.
 realignment (90.
 Increases current tax positions 9. 32. 53.
 prior year tax positions (75. (11.
 Share-based compensation (13. (27. (25.
 development tax credits (27. (17. (12.
 prepaid tax asset amortization 5. 7.
 Foreign exchange 4. (20.
.
 valuation allowance (9.
 income tax provision $(151. $481.(80.


Cash Flows
Fiscal Year 2019 Cash Flows
Net cash provided by operations was $45.0 million for fiscal 2019 consisting of $24.2 million of net income and $47.6 million of non-cash charges, partially offset by an increase in working capital of $26.8 million. The increase in non-cash charges of $9.4 million is primarily driven by changes in the fair value of earn-out liabilities of $4.4 million and higher depreciation and amortization expense. The increase in working capital of $26.8 million is a result of organic growth and acquisitions and includes $1.8 million of earn-out liability payments classified as operating activities.
Net cash used in investing activities was $44.2 million in fiscal 2019 driven by $16.1 million in capital expenditures which included implementations of our Enterprise Resource Planning system and the buildouts of our headquarters in Ridgefield, CT and distribution center in Dallas, Texas. The Company used $28.1 million in cash to fund acquisitions, the most significant of which was Bassian.
Net cash provided by financing activities was $96.9 million for fiscal 2019 driven by $145.0 million of net proceeds received from the issuance of our Senior Notes, partially offset by $44.2 million to settle all borrowings outstanding on our ABL and $2.4 million of earn-out liability payments classified as financing activities.
Fiscal Year 2018 Cash Flows
Net cash provided by operations was $45.1 million for fiscal 2018 consisting of $20.4 million of net income and $38.2 million of non-cash charges, partially offset by a $13.5 million increase in working capital as a result of organic growth and acquisitions.
Net cash used in investing activities was $33.7 million for fiscal 2018 driven by $19.8 million in capital expenditures which included implementations of our Enterprise Resource Planning system and the buildout of our distribution centers in Portland, OR, Dallas, TX and Toronto, Canada. The remaining cash used in investing activities of $13.9 million was mainly used to fund small strategic acquisitions.
Net cash used in financing activities was $10.4 million for fiscal 2018 . During fiscal 2018, we entered into a new ABL which effectively doubled our borrowing capacity. We drew $47.1 million from the ABL to make an equivalent prepayment on our term loan which lowered the effective interest rates charged on our outstanding indebtedness. We also made additional principal payments of $5.2 million on our indebtedness, paid a $3.0 million earn-out related to our Fells Point acquisition, and made a $1.5 million payment for financing fees related to our new ABL.

                                                |                    | Fiscal Year Ended  |
----------------------------------------------- | ------------------ | ------------------ | -----------------
                                                | December 27, 2019  | December 28, 2018  | December 29, 2017
Net income                                      | $24,193            | $20,402            | $14,366
Non-cash charges                                | $47,625            | $38,186            | $28,725
Changes in working capital                      | $(26,811)          | $(13,506)          | $(11,594)
Cash provided by operating activities           | $45,007            | $45,082            | $31,497
Cash used in investing activities               | $(44,154)          | $(33,688)          | $(42,406)
Cash provided by (used in) financing activities | $96,947            | $(10,442)          | $19,429

 2019 $45. million $24. 2 million net income $47. 6 million non-cash charges offset working capital $26. 8 million. non-cash $9. 4 million earn-out liabilities $4. 4 million depreciation amortization expense. increase capital $26. million growth $1. 8 million earn liability payments.
 investing $44. 2 million $16. 1 million capital expenditures Enterprise Resource Planning headquarters Ridgefield distribution Dallas. $28. 1 million acquisitions Bassian.
 $96. 9 million $145. million proceeds Senior Notes offset $44. 2 million $2. 4 million earn-out liability payments.
 2018
 $45. 1 million $20. 4 million net income $38. 2 million non-cash charges offset $13. 5 million increase working capital growth.
 investing $33. 7 million $19. 8 million capital expenditures Enterprise Resource Planning centers. remaining $13. 9 million acquisitions.
 financing $10. 4 million.2018 ABL doubled borrowing capacity. drew $47. million lowered interest rates. payments $5. 2 million $3. million Fells Point acquisition $1. 5 million financing fees.
 Fiscal Year Ended
 27, 2019 29,
 Net income $24,193 $20,402 $14,366
 Non-cash charges $47,625 $38,186 $28,725
 working capital $(26,811) $(13,506)
 operating $45,007 $45,082 $31,497
 investing(44,154,688,406
 financing $96,947,442 $19,429


6. Property, Plant and Equipment
Property, plant and equipment is comprised of the following:
Depreciation expense on property, plant and equipment, including assets accounted for as finance leases, totaled $290.2 million in 2019, $239.6 million in 2018 and $190.4 million in 2017. The portion of depreciation expense associated with cost of providing services was 87%, 85% and 84% in 2019, 2018 and 2017, respectively. There are numerous assets included within network equipment resulting in a range of depreciable lives between 2 and 50 years, the majority of which fall within the range of 7 to 25 years
No asset impairment losses were recognized in 2019, 2018 or 2017 on property, plant and equipment.

                                                  |           | December 31, | Depreciable
------------------------------------------------- | --------- | ------------ | ---------------
(dollars in millions)                             | 2019      | 2018         | Lives (Years)
Land and rights-of-way                            | $117.2    | $117.2       | 20 - Indefinite
Buildings and leasehold improvements              | 315.4     | 305.2        | 5 - 40
Network equipment                                 | 4,044.6   | 3,913.3      | 2 - 50
Office software, furniture, fixtures and vehicles | 229.3     | 216.3        | 2-14
Construction in process                           | 38.9      | 47.1         | n/a
Gross value                                       | 4,745.4   | 4,599.1      |
Accumulated depreciation                          | (2,964.6) | (2,755.1)    |
Property, plant and equipment, net                | $1,780.8  | $1,844.0     |

. Property Plant Equipment
 Depreciation expense $290. 2 million 2019 $239. 6 million 2018 $190. 4 million 2017. depreciation services 87% 85% 84% 2019 2018 2017. assets depreciable lives 2 50 years 7 to 25 years
 No asset impairment losses 2019 2018 2017.
 Depreciable
 millions Lives
 Land rights-of-way $117.
 Buildings leasehold improvements 315. 305.
 Network equipment 4,044. 3,913.
 Office software furniture fixtures vehicles 229. 216.
 Construction.
 Gross value 4,745. 4,599.
 Accumulated depreciation (2,964.,755.
 Property plant equipment $1,780. $1,844.


Intangible Assets
The following table presents the company’s intangible asset balances by major asset class.
* Amounts as of December 31, 2019 include a decrease of $42 million in net intangible asset balances due to foreign currency translation. There was no foreign currency impact on net intangible assets for the year ended December 31, 2018.
** Other intangibles are primarily acquired proprietary and nonproprietary business processes, methodologies and systems.

                       |          |              |
---------------------- | -------- | ------------ | --------
($ in millions)        |          |              |
                       | Gross    |              | Net
                       | Carrying | Accumulated  | Carrying
At December 31, 2019:* | Amount   | Amortization | Amount
Intangible asset class |          |              |
Capitalized software   | $ 1,749  | $  (743)     | $ 1,006
Client relationships   | 8,921    | (1,433)      | 7,488
Completed technology   | 6,261    | (1,400)      | 4,861
Patents/trademarks     | 2,301    | (445)        | 1,856
Other**                | 56       | (31)         | 24
Total                  | $19,287  | $(4,052)     | $15,235
($ in millions)        |          |              |
                       | Gross    |              | Net
                       | Carrying | Accumulated  | Carrying
At December 31, 2018:  | Amount   | Amortization | Amount
Intangible asset class |          |              |
Capitalized software   | $1,568   | $  (629)     | $  939
Client relationships   | 2,068    | (1,123)      | 945
Completed technology   | 2,156    | (1,296)      | 860
Patents/trademarks     | 641      | (330)        | 311
Other**                | 56       | (23)         | 32
Total                  | $6,489   | $(3,402)     | $3,087

Intangible Assets
 table presents intangible asset balances by asset class.
 Amounts December 31, 2019 decrease $42 million balances due foreign currency translation. no foreign currency impact assets year December 31, 2018.
 intangibles acquired nonproprietary business processes methodologies systems.
 millions
 December 31, 2019
 Intangible asset
 Capitalized software $ 1,749 (743) 1,006
 Client relationships 8,921 7,488
 Completed technology 6,261
 Patents/trademarks 2,301 1,856
 $19,287 $(4,052) $15,235
 December 31,
 Intangible asset
 Capitalized software $1,568 939
 Client relationships 2,068
 Completed technology 2,156
 Patents/trademarks 641
 $6,489 $(3,402) $3,087


NOTE E – PROPERTY AND EQUIPMENT
The Company’s property and equipment as of December 31, 2019 and 2018 consists of the following:
Depreciation and amortization expense included as a charge to income was $66,082 and $67,107 for the years ended December 31, 2019 and 2018, respectively.

                                          | 2019      | 2018
----------------------------------------- | --------- | ---------
Development test equipment                | $16,461   | $19,110
Computer software                         | 76,134    | 76,134
Office equipment                          | 66,685    | 61,367
Office fixtures and furniture             | 330,568   | 330,568
Leasehold improvements                    | 18,016    | 18,016
Total                                     | 507,864   | 505,195
Accumulated depreciation and amortization | (321,339) | (257,906)
Total property and equipment              | 186,525   | $247,289

PROPERTY EQUIPMENT
 December 2019 2018
 Depreciation amortization expense income $66,082 $67,107 2019.
 Development equipment $16,461 $19
 Computer software 76,134
 Office equipment 66,685
 fixtures furniture 330,568
 Leasehold improvements 18,016
 depreciation amortization (321,339
 property equipment 186,525 $247,289


Operating Expenses
Cost of Services Cost of services increased $549 million, or 3.6%, during 2019 compared to 2018, primarily due to increases in rent expense as a result of adding capacity to the networks to support demand as well as an increase due to the adoption of the new lease accounting standard in 2019, increases in costs related to the device protection package offered to our wireless retail postpaid customers, as well as regulatory fees.
These increases were partially offset by decreases in employee-related costs primarily due to the Voluntary Separation Program, as well as decreases in access costs and roaming.
Cost of Wireless Equipment Cost of wireless equipment decreased $544 million, or 2.9%, during 2019 compared to 2018, primarily as a result of declines in the number of wireless devices sold as a result of an elongation of the handset upgrade cycle. These decrease were partially offset by a shift to higher priced devices in the mix of wireless devices sold.
Selling, General and Administrative Expense Selling, general and administrative expense increased $938 million, or 6.0%, during 2019 compared to 2018, primarily due to increases in sales commission and bad debt expense, and an increase in advertising costs. The increase in sales commission expense during 2019 compared to 2018 was primarily due to a lower net deferral of commission costs as a result of the adoption of Topic 606 on January 1, 2018 using a modified retrospective approach.
These increases were partially offset by decreases in employee-related costs primarily due to the Voluntary Separation Program.
Depreciation and Amortization Expense Depreciation and amortization expense decreased $599 million, or 5.0%, during 2019 compared to 2018, driven by the change in the mix of total Verizon depreciable assets and Consumer’s usage of those assets.

                                             |          |          | (dollars in millions) Increase/ (Decrease) |
-------------------------------------------- | -------- | -------- | ------------------------------------------ | -----
Years Ended December 31,                     | 2019     | 2018     | 2019 vs. 2018                              |
Cost of services                             | $15,884  | $15,335  | $ 549                                      | 3.6%
Cost of wireless equipment                   | 18,219   | 18,763   | (544)                                      | (2.9)
Selling, general and administrative expense  | 16,639   | 15,701   | 938                                        | 6.0
Depreciation and amortization expense        | 11,353   | 11,952   | (599)                                      | (5.0)
Total Operating Expenses                     | $ 62,095 | $ 61,751 | $ 344                                      | 0.6

Operating Expenses
 Cost Services increased $549 million 3. 6% 2019 2018 due to rent expense adding capacity new lease accounting standard device protection package regulatory fees.
 increases offset by employee-related costs Voluntary Separation Program access costs roaming.
 Cost Wireless Equipment decreased $544 million 2. 9% 2019 2018 declines devices sold handset upgrade cycle. offset by higher priced devices.
 Selling General Administrative Expense increased $938 million 6. 0% 2019 due to increases sales commission bad debt expense advertising costs. increase due to lower net deferral commission costs Topic 606 2018 modified retrospective approach.
 offset by employee costs Voluntary Separation Program.
 Depreciation Amortization Expense decreased $599 million 5. 0% 2019 change Verizon depreciable assets Consumer’s usage.
 millions Increase
 Years Ended December 31, 2019.
services $15,884,335.
 wireless equipment 18,219,763 (544).
 Selling 16,639 15,701 938.
 Depreciation amortization 11,353,952 (599).
 Operating Expenses 62,095 61,751 344.


Remaining performance obligations
Remaining performance obligations represent contracted revenue that has not been recognized, which include contract liabilities and amounts that will be billed and recognized as revenue in future periods. As of March 29, 2019, we had $2,608 million of remaining performance obligations, which does not include customer deposit liabilities of approximately $505 million, and the approximate percentages expected to be recognized as revenue in the future are as follows:
Percentages may not add to 100% due to rounding.

                                  |                                         | Percent Expected to be Recognized as Revenue |              |              |
--------------------------------- | --------------------------------------- | -------------------------------------------- | ------------ | ------------ | --------------
(in millions, except percentages) | Total Remaining Performance Obligations | 0-12 Months                                  | 13-24 Months | 25-36 Months | Over 36 Months
Enterprise Security               | $2,059                                  | 65%                                          | 24%          | 10%          | 2%
Consumer Cyber Safety             | 549                                     | 95%                                          | 4%           | 1%           | -%
Total                             | $2,608                                  | 71%                                          | 19%          | 8%           | 1%

performance obligations
 contracted revenue liabilities. March 29, 2019 $2,608 million remaining obligations customer deposit liabilities $505 million percentages revenue
 not add 100% rounding.
 millions Total Obligations 0-12 Months 13-24 Months 25-36 Months
 Enterprise Security  $2,059  65%  24%  10% 2%
 Consumer Cyber Safety  549 95% 4% 1%
 Total $2,608  71% 19% 8%


Note 8. Goodwill and Intangible Assets, Net
The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands):

                                | Customer Relationships | Developed Technology | Trade Name | Total
------------------------------- | ---------------------- | -------------------- | ---------- | --------
Balance as of January 1, 2018   | $88,526                | $5,532               | $228       | $94,286
Amortization                    | (11,262)               | (3,854)              | (103)      | (15,219)
Balance as of December 31, 2018 | 77,264                 | 1,678                | 125        | 79,067
Intangible assets acquired      | 19,805                 | 16,583               | 2,219      | 38,607
Amortization                    | (12,673)               | (1,441)              | (122)      | (14,236)
Balance as of December 31, 2019 | $84,396                | $16,820              | $2,222     | $103,438

. Goodwill Intangible Assets
 Trade
 Balance January 1 2018 $88,526 $5,532 $94,286
 Amortization (11,262) (3,854 (15,219)
 December 31, 2018 77,264 1,678 79,067
 assets 19,805 16,583 38,607
 Amortization (12,673 (14,236)
 December 31, 2019 $84,396 $16,820 $2 $103,438


Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the year in which the differences are expected to be reversed.
Significant deferred tax assets and liabilities consisted of the following (in thousands):
We are required to evaluate the realizability of our deferred tax assets in both our U.S. and non-U.S. jurisdictions on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. From the fourth quarter of fiscal 2009 to the third quarter of fiscal 2018, we maintained a 100% valuation allowance against most of our U.S. deferred tax assets because there was insufficient positive evidence to overcome the existing negative evidence such that it was not more likely than not that the U.S. deferred tax assets were realizable.
While we reported U.S. pre-tax income in fiscal 2015 and fiscal 2017, because we reported U.S. pre-tax losses during the previous seven fiscal years, we continued to maintain the 100% valuation allowance through the third quarter of fiscal 2018.
As of December 29, 2018, we had reported positive operating performance in the U.S. for two consecutive fiscal years and had also reported a cumulative threeyear U.S. pre-tax profit. In addition, during the fourth quarter of fiscal 2018, we completed our financial plan for fiscal 2019 and expected continued positive operating performance in the U.S. We also considered forecasts of future taxable income and evaluated the utilization of net operating losses and tax credit carryforwards prior to their expiration.
After considering these factors, we determined that the positive evidence overcame any negative evidence and concluded that it was more likely than not that the U.S. deferred tax assets were realizable. As a result, we released the valuation allowance against a significant portion of the U.S. federal deferred tax assets and a portion of the U.S. state deferred tax assets during the fourth quarter of fiscal 2018.
The valuation allowance decreased by $75.8 million in fiscal 2018, primarily due to the release of the valuation allowance on U.S. deferred tax assets. As of December 28, 2019, we maintained a valuation allowance of $36.6 million, primarily related to California deferred tax assets and foreign tax credit carryovers, due to uncertainty about the future realization of these assets.

                                      | As of             |
------------------------------------- | ----------------- | -----------------
                                      | December 28, 2019 | December 29, 2018
Tax credits                           | $44,696           | $39,586
Inventory reserve                     | 12,350            | 10,850
Other reserves and accruals           | 5,852             | 5,398
Non-statutory stock options           | 2,982             | 2,722
Depreciation and amortization         | 27,758            | 1,979
Net operating loss carryforwards      | 21,410            | 61,275
Gross deferred tax assets             | 115,048           | 121,810
Valuation allowance                   | (36,604)          | (34,037)
Total deferred tax assets             | 78,444            | 87,773
Acquired intangibles and fixed assets | (13,997)          | (12,667)
Unrealized investment gains           | (106)             | (107)
Tax on undistributed earnings         | (75)              | (53)
Total deferred tax liabilities        | (14,178)          | (12,827)
Net deferred tax assets               | $64,266           | $74,946

Deferred Tax Assets Liabilities
 recognized for future tax consequences differences tax basis enacted tax rates.
 deferred tax assets liabilities
 evaluate realizability deferred tax assets in U. non-U. jurisdictions valuation allowance. 2009 to 2018 maintained 100% valuation allowance against U. deferred tax assets insufficient positive evidence negative evidence.
 reported. pre-tax income in 2015 2017.-tax losses previous seven years 100% valuation allowance through third quarter 2018.
 December 29, 2018 positive operating performance. for two consecutive fiscal years threeyear. pre-tax profit. completed financial plan for 2019 expected positive operating performance. considered forecasts future taxable income evaluated utilization of net operating losses tax credit carryforwards.
 positive evidence overcame negative evidence likely. deferred tax assets realizable. released valuation allowance against. federal. state deferred tax assets during fourth quarter fiscal 2018.
 valuation allowance decreased by $75.2018 valuation allowance. deferred tax. valuation allowance $36. 6 million California tax foreign credit carryovers future realization.
 Tax credits $44,696 $39,586
 Inventory reserve 12,350
 Non-statutory stock options 2,982
 Depreciation amortization 27,758
 loss carryforwards 21,410
 deferred tax assets 115,048 121,810
 Valuation allowance (36,604)
 deferred tax assets 78,444
 Acquired intangibles assets,997
 Unrealized investment gains
 undistributed earnings
 deferred tax liabilities,178
 deferred tax $64,266 $74,946


The following table presents cumulative items not recognized as a component of net periodic benefits expense as of December 31, 2017, items recognized as a component of net periodic benefits expense in 2018, additional items deferred during 2018 and cumulative items not recognized as a component of net periodic benefits expense as of December 31, 2017. The items not recognized as a component of net periodic benefits expense have been recorded on our consolidated balance sheets in accumulated other comprehensive loss:
(1) Amounts currently recognized in net periodic benefits expense include $375 million of benefit arising from the adoption of ASU 2018-02. See Note 1— Background and Summary of Significant Accounting Policies for further detail.
(2) Amounts currently recognized in net periodic benefits expense include $32 million arising from the adoption of ASU 2018-02. See Note 1— Background and Summary of Significant Accounting Policies for further detail.

                                           |          |                                              | As of and for the Years Ended December 31, |                    |
------------------------------------------ | -------- | -------------------------------------------- | ------------------------------------------ | ------------------ | -------
                                           | 2017     | Recognition of Net Periodic Benefits Expense | Deferrals                                  | Net Change in AOCL | 2018
                                           |          |                                              | (Dollars in millions)                      |                    |
Accumulated other comprehensive loss:      |          |                                              |                                            |                    |
Pension plans:                             |          |                                              |                                            |                    |
Net actuarial (loss) gain                  | $(2,892) | 179                                          | (260)                                      | (81)               | (2,973)
Prior service benefit (cost)               | 54       | (8)                                          | —                                          | (8)                | 46
Deferred income tax benefit (expense)(1)   | 1,107    | (418)                                        | 65                                         | (353)              | 754
Total pension plans                        | (1,731)  | (247)                                        | (195)                                      | (442)              | (2,173)
Post-retirement benefit plans:             |          |                                              |                                            |                    |
Net actuarial (loss) gain                  | (250)    | —                                            | 257                                        | 257                | 7
Prior service (cost) benefit               | (107)    | 20                                           | —                                          | 20                 | (87)
Deferred income tax benefit (expense)(2)   | 122      | (37)                                         | (63)                                       | (100)              | 22
Total post-retirement benefit plans        | (235)    | (17)                                         | 194                                        | 177                | (58)
Total accumulated other comprehensive loss | $(1,966) | (264)                                        | (1)                                        | (265)              | (2,231)

table presents items not recognized December 31, 2017 recognized 2018 items deferred 2018 not recognized. items not recognized recorded on consolidated balance sheets accumulated comprehensive loss
 recognized include $375 million ASU 2018-02. Note.
 $32 million ASU 2018-02.
 2017 Recognition of Net Periodic Benefits Expense Deferrals Net Change AOCL 2018
 millions
 Accumulated loss
 Pension plans
 Net actuarial (loss) gain $(2,892)  179  (260)  (81) (2,973)
 Prior service benefit (cost 54
 Deferred income tax benefit (expense 1,107  (418) 65  (353)  754
 Total pension plans (1,731)  (247) (195)  (442) (2,173)
 Post-retirement benefit plans
 Net actuarial (loss) gain  (250)  257
service benefit (107) 20
 Deferred income tax benefit 122 (100
 post-retirement benefit plans (235) 194 177 (58)
 loss $(1,966) (264)


9. Debtors
The Directors consider that the carrying amount of trade and other debtors approximates their fair value.
The Company has no significant concentration of credit risk attributable to its trade debtors as the exposure is spread over a large number of customers.
Assets recognised from costs to obtain a contract relate to capitalised incremental costs to obtain a contract, being sales commissions arising on contracts with customers of more than one year in length. No assets were impaired or derecognised during the current year or prior year.

                                                  |       | 2019      | 2018
------------------------------------------------- | ----- | --------- | ---------
                                                  | Notes | £ million | £ million
Due within one year                               |       |           |
Trade debtors                                     |       | 5.2       | 7.0
Owed by subsidiaries                              |       | 13.7      | 9.6
Other debtors                                     |       | 0.2       | 0.7
Prepayments                                       |       | 0.4       | 0.6
Current tax asset                                 |       | 1.0       | 0.6
Deferred tax                                      | 13    | –         | 1.3
Assets recognised from costs to obtain a contract |       | 0.1       | 0.1
                                                  |       | 20.6      | 19.9
Due after one year                                |       |           |
Defined benefit pension plan surplus              | 3     | 8.8       | 2.0

. Debtors
 Directors consider carrying trade approximates fair value.
 Company no significant credit risk trade debtors exposure spread large customers.
 Assets recognised costs contract costs sales commissions contracts more one year. No assets impaired derecognised current prior year.
 £ million
 Due within one year
 Trade debtors 5. 7.
 Owed subsidiaries 13. 9.
 Other debtors.
 Prepayments.
 Current tax asset.
 Deferred tax.
 Assets recognised costs contract.
 20. 19.
 Due after one year
 benefit pension plan surplus.


The Company’s consolidated net revenues disaggregated by product group are presented in Note 19. The following tables present the Company’s consolidated net revenues disaggregated by geographical region of
shipment and nature.
(1) Net revenues by geographical region of shipment are classified by location of customer invoiced or reclassified by shipment destination in line with customer demand. For example, products ordered by U.S.-based companies to be invoiced to Asia Pacific affiliates are classified as Asia Pacific revenues.
(2) Original Equipment Manufacturers (“OEM”) are the end-customers to which the Company provides direct marketing application engineering support, while Distribution customers refers to the distributors and representatives that the Company engages to distribute its products around the world.
As of January 1, 2018, the Company adopted the converged guidance on revenue from contract with customers with no material impact on the Company’s recognition practices as substantially similar performance conditions exist under the new guidance and past practice.
The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed.

                                                   |                   | Year ended        |
-------------------------------------------------- | ----------------- | ----------------- | -----------------
                                                   | December 31, 2019 | December 31, 2018 | December 31, 2017
Net revenues by geographical region of shipment(1) |                   |                   |
EMEA                                               | 2,265             | 2,478             | 2,142
Americas                                           | 1,351             | 1,264             | 1,085
Asia Pacific                                       | 5,940             | 5,922             | 5,120
Total revenues                                     | 9,556             | 9,664             | 8,347
Net revenues by nature                             |                   |                   |
Revenues from sale of products                     | 9,381             | 9,461             | 8,175
Revenues from sale of services                     | 148               | 151               | 133
Other revenues                                     | 27                | 52                | 39
Total revenues                                     | 9,556             | 9,664             | 8,347
Net revenues by market channel(2)                  |                   |                   |
Original Equipment Manufacturers (“OEM”)           | 6,720             | 6,325             | 5,549
Distribution                                       | 2,836             | 3,339             | 2,798
Total revenues                                     | 9,556             | 9,664             | 8,347

consolidated net revenues disaggregated by product group Note 19. tables revenues disaggregated by geographical region
 shipment nature.
 revenues region classified location shipment destination. products ordered U. S. Asia Pacific Asia Pacific revenues.
 Original Equipment Manufacturers end-customers marketing engineering support Distribution customers distributors representatives.
 January 1, 2018 adopted converged guidance revenue contract no impact recognition practices similar.
 disclose value unsatisfied performance obligations for contracts one year less contracts revenue.
 2019 2018 2017
 revenues by geographical region
 EMEA 2,265 2,478 2,142
 Americas 1,351 1,264 1,085
 Asia Pacific 5,940 5,120
 Total 9,556 9,664 8,347
 revenues nature
 sale products 9,381 9,461 8,175
 services 148 151
 Other revenues
 Total revenues 9,556 9,664 8,347
revenues
 Equipment 6,720 5,549
 Distribution 2,836 3,339,798
 revenues 9,556,664 8,347


Operating Cash Flow Activities
Year Ended December 31, 2019 Compared with the Year Ended December 31, 2018
Net cash provided by operating activities – continuing operations decreased during the year ended December 31, 2019 compared with prior year. The decrease in income from operations and the increase in non-cash adjustments to net income in 2019 partially related to the absence in the gains on sale of divestitures, such as OneContent in 2018.
The increase in non-cash adjustments to net loss in 2019 also related to higher depreciation and the amortization of right-to-use assets. The net loss and the cash impact of changes in operating assets and liabilities during 2019 reflects the $145 million settlement with the DOJ in connection with the Practice Fusion investigations.
Net cash used in operating activities – discontinued operations during the year ended December 31, 2019 reflects an advance income tax payment related to the gain realized on the sale of our investment in Netsmart on December 31, 2018.
Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017
Net cash provided by operating activities – continuing operations decreased during the year ended December 31, 2018 compared with the prior year primarily due to working capital changes and higher costs during the year ended December 31, 2018 compared with the prior year, which primarily included higher interest expense, transaction-related and legal expenses, and incentive-based compensation payments.
The decrease in non-cash adjustments to net loss was primarily driven by lower non-cash impairment charges associated with long-term investments, intangibles and goodwill during the year ended December 31, 2018 compared with the prior year.
Net cash provided by operating activities – discontinued operations decreased during the year ended December 31, 2018 compared with the prior year primarily driven by the additional tax provision relating to the gain from the sale of our investment in Netsmart on December 31, 2018. Netsmart generated cash from operations during both 2018 and 2017. During 2018, Netsmart’s cash provided by operations decreased by approximately $16 million primarily driven by higher interest expenses paid attributable to Netsmart’s credit facilities.

                                                                              |             | Year Ended December 31, |             |                         |
----------------------------------------------------------------------------- | ----------- | ----------------------- | ----------- | ----------------------- | -----------------------
(In thousands)                                                                | 2019        | 2018                    | 2017        | 2019 $ Change from 2018 | 2018 $ Change from 2017
Net (loss) income                                                             | $ (182,602) | $ 407,807               | $ (154,175) | $ (590,409)             | $ 561,982
Less: Loss from discontinued operations                                       | 0           | 395,138                 | 30,348      | (395,138)               | 364,790
(Loss) income from continuing operations                                      | (182,602)   | 12,669                  | (184,523)   | (195,271)               | 197,192
Non-cash adjustments to net (loss) income                                     | 277,217     | 136,651                 | 351,835     | 140,566                 | (215,184)
Cash impact of changes in operating assets and liabilities                    | (18,361)    | (60,086)                | 57,746      | 41,725                  | (117,832)
Net cash provided by operating activities - continuing operations             | 76,254      | 89,234                  | 225,058     | (12,980)                | (135,824)
Net cash (used in) provided by operating activities - discontinued operations | (30,000)    | (21,343)                | 54,357      | (8,657)                 | (75,700)
Net cash provided by operating activities                                     | $ 46,254    | $ 67,891                | $ 279,415   | $ (21,637)              | $ (211,524)

Operating Cash Flow Activities
 Ended December 31, 2019 2018
 Net cash operations decreased. decrease income increase non-cash adjustments income related gains sale divestitures.
 increase non-cash adjustments net loss related higher depreciation amortization right-to-use assets. net loss cash impact reflects $145 million settlement DOJ Practice Fusion investigations.
 Net cash operations reflects advance income tax payment gain sale investment Netsmart December 31, 2018.
 Year Ended December 2018 2017
 Net cash operations decreased due working capital changes higher costs interest transaction legal expenses incentive-based compensation payments.
 decrease non-cash adjustments net loss driven lower non impairment charges long-term investments intangibles goodwill.
 Net cash discontinued operations decreased driven additional tax provision gain sale investment Netsmart. Netsmart generated cash operations 2018 2017. 2018 cash decreased $16 million higher interest expenses credit facilities.
 Year Ended December

 Net income (182,602) 407,807 (154,175 (590,409) 561,982
 discontinued operations 395,138 30,348 364,790
 operations (182,602) 12,669 (184,523) (195,271) 197,192
 Non-cash adjustments 277,217 136,651 351,835 140,566 (215,184)
 impact assets liabilities (18,361) (60,086) 57,746 41,725 (117,832)
 76,254 89,234 225,058 (135,824)
 discontinued operations (30,000 (21,343) 54,357 (8,657 (75,700
 46,254 67,891 279,415 (21,637 (211,524)


NOTE 19—SEGMENT INFORMATION
ASC Topic 280, “Segment Reporting” (Topic 280), establishes standards for reporting, by public business enterprises, information about operating segments, products and services, geographic areas, and major customers. The method of determining what information, under Topic 280, to report is based on the way that an entity organizes operating segments for making operational decisions and how the entity’s management and chief operating decision maker (CODM) assess an entity’s financial performance. Our operations are analyzed by management and our CODM as being part of a single industry segment: the design, development, marketing and sales of Enterprise Information Management software and solutions.
The following table sets forth the distribution of revenues, by significant geographic area, for the periods indicated:

                    |            | Year Ended June 30, |
------------------- | ---------- | ------------------- | ----------
                    | 2019       | 2018                | 2017
Revenues:           |            |                     |
Canada              | $153,890   | $149,812            | $227,115
United States       | 1,490,863  | 1,425,244           | 1,090,049
United Kingdom      | 182,815    | 201,821             | 159,817
Germany             | 203,403    | 198,253             | 166,611
Rest of Europe      | 534,204    | 517,693             | 394,132
All other countries | 303,580    | 322,418             | 253,333
Total revenues      | $2,868,755 | $2,815,241          | $2,291,057

INFORMATION
 ASC Topic 280 standards segments products services geographic areas customers. segments financial performance. operations analyzed industry segment design development marketing sales Enterprise Information Management software solutions.
 table distribution revenues geographic area
 June 30
 Revenues
 Canada $153,890 $149,812 $227,115
 United States 1,490,863 1,425,244  1,090,049
 Kingdom 182,815 201,821 159,817
 Germany 203,403 198,253 166,611
 Europe 534,204 517,693 394,132
 other countries 303,580 322,418 253,333
 Total revenues $2,868,755 $2,815,241 $2,291,057


Australian Food’s VOC NPS (including Online) was up 3 pts on the prior year with Store‐controllable VOC steady on the prior year. Store‐controllable VOC improved on Q3’19 where scores were impacted by flood and drought effects on fruit and vegetable prices impacting quality and availability. Fruit & Vegetables and Availability scores improved 1 pt to 78% compared to June 2018, and 5 pts and 2 pts respectively vs. Q3’19. Team Attitude remained stable (89%) compared to June 2018.
In F20, Store‐controllable VOC will be reduced from seven metrics to five, removing Ease of Movement and Correct Price Tickets to simplify the focus for stores on the areas that offer the most opportunity for improvement.
Sales increased by 5.3% to $39.6 billion or 3.3% on a normalised basis. Comparable sales increased by 3.1% for the year with transaction growth of 1.8% and items per basket of 1.7% contributing to comparable item growth of 3.5%.
Despite some challenges during the year, sales momentum improved in H2 with strong growth across a number of Fresh categories. Sales in the second half also benefitted from successful campaigns including Disney Words and Earn & Learn. In Q4, comparable sales increased by 3.6% with comparable transaction growth of 1.4%. Comparable items per basket increased by 1.2%.
Metro continued to grow strongly with further refinement to price, promotional optimisation and range curation. An extra‐small store format was successfully launched in Kirribilli and new stores opened in Rozelle and Kings Cross. At the end of the financial year, 43 Metro‐branded stores and 16 small Woolworths Supermarkets were managed by the Metro team.
In WooliesX, Online VOC scores improved 2 pts to 81% at the end of June, with improvements in Delivery & Pick up and Ease of Website Navigation. Online sales grew 31% (normalised) to $1.4 billion driven by expanded offerings such as Same day, Delivery Now, Drive thru and Drive up.
Australian Food sales per square metre was $17,163 with normalised growth of 2.0% on the prior year. During the year, 24 new stores were opened (21 supermarkets and three Metros), eight were closed and 68 Renewals completed. At year‐end, there were 1,024 Woolworths Supermarkets and Metro stores.
Average prices declined 0.4% for the year, with modest inflation of 0.5% in the fourth quarter as a result of increases in a number of Fresh categories impacted by the drought including Fruit & Vegetables, Meat and Bakery.

                              | F19      | F18      |            | CHANGE
----------------------------- | -------- | -------- | ---------- | ----------
$ MILLION                     | 53 WEEKS | 52 WEEKS | CHANGE     | NORMALISED
Sales                         | 39,568   | 37,589   | 5.3%       | 3.3%
EBITDA                        | 2,613    | 2,430    | 7.5%       | 6.1%
Depreciation and amortisation | (756)    | (673)    | 12.3%      | 12.3%
EBIT                          | 1,857    | 1,757    | 5.7%       | 3.8%
Gross margin (%)              | 28.7     | 29.0     | (24) bps   | (24) bps
Cost of doing business (%)    | 24.0     | 24.3     | (27) bps   | (26) bps
EBIT to sales (%)             | 4.7      | 4.7      | 2 bps      | 2 bps
Sales per square metre ($)    | 17,163   | 16,528   | 3.8%       | 2.0%
Funds employed                | 1,468    | 1,215    | 20.9%      |
ROFE (%)                      | 140.2    | 170.7    | (30.6) pts | (33.2) pts

Australian VOC NPS up 3 pts Store‐controllable VOC steady. improved Q3’19 impacted flood drought fruit. improved 78% 2018. Attitude stable (89%.
 Store‐controllable VOC reduced seven five removing Ease Movement Correct Price Tickets.
 Sales increased 5. 3% $39. 6 billion. 3. 1% transaction growth. 8% items basket. 7%. 5%.
 sales improved H2. campaigns Disney Words Earn Learn. Q4 sales increased 3. 6% transaction growth. 4%. items per basket. 2%.
 Metro refinement price promotional optimisation range curation. extra‐small store format launched Kirribilli stores Rozelle Kings Cross. 43 Metro‐branded stores 16 Woolworths Supermarkets managed.
 Online VOC improved 2 pts 81% June improvements Delivery Pick up Ease Website Navigation. Online sales grew 31% $1. 4 billion.
 Australian Food sales metre $17,163 growth 2. 0%.24 stores opened (21 three eight closed 68 Renewals. year‐end 1,024 Woolworths Supermarkets Metro stores.
 Average prices declined. 4% modest inflation. 5% fourth quarter Fresh categories Fruit Vegetables Meat Bakery.
 53
 Sales 39,568 37,589 5. 3% 3. 3%
 EBITDA 2,613 2,430 7. 5% 6. 1%
 Depreciation amortisation 12.
 EBIT 1,857 5. 7% 3. 8%
 Gross margin 28.
 Cost business (%) 24.
 EBIT sales (%) 4.
 Sales per square metre$ 17,163 16,528 3. 8%.
 Funds employed 1,468.
 ROFE (%) 140.


Disaggregation of Revenues
The nature, amount, timing and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by type of revenue as presented below (in thousands) and by geographic region as presented in Note 3

                            |          | For the Year Ended December 31,
--------------------------- | -------- | -------------------------------
                            | 2019     | 2018
Cloud and related solutions | $896,164 | $766,377
Software and services       | 52,364   | 58,101
Maintenance                 | 48,282   | 50,581
Total revenues              | $996,810 | $875,059

Disaggregation Revenues
 timing uncertainty economic depicted type geographic region Note 3
 Year Ended December 31,
 Cloud solutions $896,164 $766,377
 Software services 52,364 58,101
 Maintenance 48,282 50,581
 revenues $996,810 $875,059


Cost of Revenue
Cost of revenue increased by $15.3 million in 2018 compared to 2017. The increase was primarily due to a $7.2 million increase in employee-related costs, which includes stock-based compensation, associated with our increased headcount from 128 employees as of December 31, 2017 to 173 employees as of December 31, 2018. The remaining increase was principally the result of a $7.0 million increase in hosting, software and messaging costs, a $0.6 million increase attributed to office related expenses to support revenue generating activities and a $0.4 million increase in depreciation and amortization expense attributable to our acquired intangible assets.
Gross margin percentage decreased due to our continued investment in personnel and infrastructure to support our growth in revenue.

                | Year Ended December 31, |                        | Change   |
--------------- | ----------------------- | ---------------------- | -------- | -----
                | 2018                    | 2017                   | $        | %
                |                         | (dollars in thousands) |          |
Cost of revenue | $ 46,810                | $ 31,503               | $ 15,307 | 48.6%
Gross margin %  | 68%                     | 70%                    |          |

Revenue
 increased $15. 3 million 2018 2017. $7. 2 million employee-related costs compensation headcount 128 173 2018. remaining $7. 0 million hosting software messaging costs $0. 6 million office expenses $0. 4 million depreciation amortization acquired intangible assets.
 Gross margin decreased investment personnel infrastructure.
 Ended December 31,
 2018 2017
 Cost revenue $ 46,810 $ 31,503 $ 15,307. 6%
 Gross margin % 68% 70%


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 (Continued)
The fair value of the derivative liabilities is as follows:
Interest rate swap agreements
The Group enters into interest rate swap agreements which convert the floating interest rate exposure into a fixed interest rate in order to hedge a portion of the Group’s exposure to fluctuations in prevailing market interest rates. Under the interest rate swaps, the bank counterparty effects quarterly floating-rate payments to the Group for the notional amount based on the U.S. dollar LIBOR, and the Group effects quarterly payments to the bank on the notional amount at the respective fixed rates.
Interest rate swaps designated as cash flow hedging instruments
As of December 31, 2018 and 2019, there are no interest rate swaps designated as cash flow hedging instruments for accounting purposes.

                                                                                | As of December 31, |
-------------------------------------------------------------------------------------------- | ------------------ | ------
                                                                                | 2018               | 2019
Derivative liabilities carried at fair value through profit or loss (FVTPL)                  |                    |
Interest rate swaps                                                                          | 9,196              | 49,891
Forward foreign exchange contracts                                                           | 1,467              | 41
Derivative liabilities designated and effective as hedging instruments carried at fair value |                    |
Cross currency swaps                                                                         | 1,429              | —
Total                                                                                | 12,092             | 49,932
Derivative financial instruments, current liability                                          | 2,091              | 8,095
Derivative financial instruments, non-current liability                                      | 10,001             | 41,837
Total                                                                                | 12,092             | 49,932

GasLog Ltd. Subsidiaries
 consolidated financial statements
 years December 31, 2017 2018 2019
 amounts U. S. Dollars except
. Derivative Financial Instruments
 fair value liabilities
 Interest rate swap agreements
 Group floating fixed rate hedge market interest rates. bank counterparty effects quarterly floating-rate payments U. S. dollar LIBOR payments fixed rates.
 December 31, 2018 2019 no swaps cash hedging instruments accounting.
 December
 2019
 Derivative liabilities fair value profit loss
 Interest rate swaps 9,196 49,891
 foreign exchange contracts 1,467
 hedging instruments
 Cross currency swaps 1,429
 12,092 49,932
 instruments current 2,091 8,095
 non-current liability 10,001 41,837


The following table summarizes the change in the valuation allowance (in thousands):
As of December 31, 2019, net operating loss (NOL) carryforwards for U.S. federal tax purposes totaled $31.4 million. Effective with the 2017 Tax Act in December 2017, NOLs generated after December 31, 2017, do not expire. Federal NOLs of $9.9 million expire at various dates from 2020 through 2037 and federal NOLs of $21.5 million do not expire. NOL carryforwards for state tax purposes totaled $40.6 million at December 31, 2019 and expire at various dates from 2020 through 2039.

Year Ended December 31                             |        |
-------------------------------------------------- | ------ | -------
                                                   | 2019   | 2018
Vaulation allowances, beginning of year            | $5,398 | $13,872
Net operating loss                                 | 3,284  | 1,920
Expiration of net operating losses and limitations | (7)    | (9,939)
Adjustment to deferred taxes                       | 29     | (321)
Impact of state tax rate change                    | 26     | (146)
Other adjusments                                   | 9      | 12
Valuation allowance, end of year                   | $8,739 | $5,398

table change valuation allowance
 December 31, 2019 net loss carryforwards. federal tax totaled $31. 4 million. 2017 Tax Act NOLs expire. NOLs $9. million expire 2020 2037 $21. 5 million expire. state $40. 6 million December expire 2020 2039.
 31
 allowances $5,398 $13,872
 Net operating loss 3,284
 Expiration losses
 Adjustment deferred taxes
 state tax rate change
 Valuation allowance end year $8,739 $5,398


Results of Operations
Historically, revenues and earnings may or may not be representative of future operating results due to various economic and other factors. The following table sets forth the Consolidated Statements of Operations for the periods indicated (amounts in thousands):
(1) Fiscal years ended March 31, 2018 and 2017 adjusted due to the adoption of ASC 606.

                                                                                |            | Fiscal Years Ended March 31, |
-------------------------------------------------------------------------------------- | ---------- | ---------------------------- | --------
                                                                                | 2019       | 2018                         | 2017
Net sales (1)                                                                          | $1,382,818 | $1,200,181                   | $757,338
Operating costs and expenses:                                                          |            |                              |
Cost of sales (1)                                                                      | 924,276    | 860,744                      | 571,944
Selling, general and administrative expenses                                           | 202,642    | 173,620                      | 107,658
Research and development (1)                                                           | 44,612     | 39,114                       | 26,693
Restructuring charges                                                                  | 8,779      | 14,843                       | 5,404
(Gain) loss on write down and disposal of long-lived assets                            | 1,660      | (992)                        | 10,671
Total operating costs and expenses                                                     | 1,181,969  | 1,087,329                    | 722,370
Operating income (1)                                                                   | 200,849    | 112,852                      | 34,968
Non-operating (income) expense:                                                        |            |                              |
Interest income                                                                        | (2,035)    | (809)                        | (24)
Interest expense                                                                       | 21,239     | 32,882                       | 39,755
Acquisition (gain) loss                                                                | —          | (130,880)                    | —
Change in value of TOKIN options                                                       | —          | —                            | (10,700)
Other (income) expense, net (1)                                                        | 11,214     | 24,592                       | (3,871)
Income before income taxes and equity income (loss) from equity method investments (1) | 170,431    | 187,067                      | 9,808
Income tax expense (benefit) (1)                                                       | (39,460)   | 9,132                        | 4,294
Income before equity income (loss) from equity method investments (1)                  | 209,891    | 177,935                      | 5,514
Equity income (loss) from equity method investments                                    | (3,304)    | 76,192                       | 41,643
Net income (1)                                                                         | $206,587   | $254,127                     | $47,157

Operations
 revenues earnings future factors. Consolidated Statements Operations
 Fiscal years 2018 2017 ASC 606.
 Net sales $1,382,818 $1,200,181 $757,338
 Operating costs expenses
 Cost sales 924,276 860,744 571,944
 Selling administrative expenses 202,642 173,620 107,658
 Research development 44,612 39,114 26,693
 Restructuring charges 8,779 14,843 5,404
 loss write down disposal long-lived assets 1,660 10,671
 operating costs expenses 1,181,969 1,087,329 722,370
 Operating income 200,849 112,852 34,968
 Non-operating
 Interest income
 21,239 32,882 39,755
 Acquisition loss,880
 Change TOKIN options
 11,214 24,592
 taxes investments 170,431 187,067 9,808
tax expense (39,460 9,132 4,294
 209,891 177,935 5,514
 (3,304 76,192 41,643
 Net $206,587 $254,127 $47,157


The Company incurred approximately $106,000 in legal, professional, and other costs related to this acquisition accounted for as selling and administrative expenses when incurred. The remaining weighted-average useful life of intangible assets acquired was 12.5 years as of the acquisition date.
As the active cabinet business was not operated as a separate subsidiary, division or entity, Calix did not maintain separate financial statements for the active cabinet business. As a result, we are unable to accurately determine earnings/loss for the active cabinet business on a standalone basis since the date of acquisition.
The following table below reflects our unaudited pro forma combined results of operations as if the acquisition had taken place as of October 1, 2016 and shows the net sales and net income as if the active cabinet business were combined with the Clearfield business for the years ended September 30, 2018 and 2017.
The pro forma includes estimated expenses relating to the amortization of intangibles purchased, the amortization of the inventory fair value adjustment, and estimated personnel costs:
The pro forma unaudited results do not purport to be indicative of the results which would have been obtained had the acquisition been completed as of the beginning of the earliest period presented or of results that may be obtained in the future. In addition, they do not include any benefits that may result from the acquisition due to synergies that may be derived from the elimination of any duplicative costs.

                       | Pro Forma Year Ended September 30, 2018 (unaudited) | Pro Forma Year Ended September 30, 2017 (unaudited)
---------------------- | --------------------------------------------------- | ---------------------------------------------------
Net sales              | $80,958,789                                         | $89,672,074
Income from operations | $5,554,766                                          | $8,174,841
Net income             | 4,794,757                                           | $5,809,018
Net income per share:  |                                                     |
Basic                  | 0.36                                                | $0.43
Diluted                | 0.36                                                | $0.43

Company incurred $106,000 legal professional costs acquisition selling administrative expenses. remaining life intangible assets 12. 5 years acquisition date.
 active cabinet business not separate subsidiary separate financial statements. unable determine earnings/loss since acquisition.
 table reflects unaudited combined results operations acquisition October 1, 2016 net sales income Clearfield business years ended September 30, 2018 2017.
 includes estimated expenses amortization intangibles purchased inventory fair value adjustment personnel costs
 unaudited results indicative results acquisition future. include benefits acquisition synergies elimination duplicative costs.
 Pro Forma Year Ended September 30, 2018 September 30, 2017
 Net sales $80,958,789 $89,672,074
 Income operations $5,554,766 $8,174,841
 Net income 4,794,757 $5,809,018
 Net income per share
.
.


NAVIOS MARITIME HOLDINGS INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in thousands of U.S. dollars — except share data)
NOTE 6: PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid expenses and other current assets consisted of the following:
Claims receivable mainly represents claims against vessels’ insurance underwriters in respect of damages arising from accidents or other insured risks, as well as claims under charter contracts including off-hires. While it is anticipated that claims receivable will be recovered within one year, such claims may not all be recovered within one year due to the attendant process of settlement. Nonetheless, amounts are classified as current as they represent amounts currently due to the Company. All amounts are shown net of applicable deductibles.
As of December 31, 2018, claims receivable include $11,571 related to insurance claim at the iron ore port terminal in Nueva Palmira, Uruguay.

                                                | December 31, 2019 | December 31, 2018
----------------------------------------------- | ----------------- | -----------------
Prepaid voyage and operating costs              | $5,726            | $9,261
Claims receivable                               | 3,826             | 22,224
Prepaid other taxes                             | 1,012             | 2,682
Advances for working capital purposes           | —                 | 18
Other                                           | 1,675             | 6,005
Total prepaid expenses and other current assets | $12,239           | $40,190

NAVIOS MARITIME HOLDINGS. FINANCIAL STATEMENTS U. S. dollars except share data
 NOTE 6 PREPAID EXPENSES CURRENT ASSETS
 Claims receivable insurance damages accidents charter contracts. settlement. amounts current due. net deductibles.
 December 31, 2018 claims $11,571 insurance claim iron ore port terminal Nueva Palmira Uruguay.
 Prepaid voyage operating costs $5,726 $9,261
 Claims receivable 3,826 22,224
 Prepaid taxes 1,012 2,682
 Advances working capital
 1,675 6,005
 prepaid expenses current assets $12,239 $40,190


NOTE 4 – REMUNERATION TO AUDITORS APPOINTED AT THE PARENT COMPANY’S ANNUAL GENERAL MEETING
Under SEC regulations, the remuneration of the auditor of USD 0.7m (2018: USD 0.8m, 2017: USD 1.0m) is required to be presented as follows: Audit USD 0.6m (2018: USD 0.6m, 2017: USD 0.6m) and other audit-related services USD 0.1m (2018: USD 0.2m, 2017: USD 0.4m).
Our Audit Committee pre-approves all audit, audit-related and non-audit services not prohibited by law to be performed by our independent auditors and associated fees prior to the engagement of the independent auditor with respect to such services.

USDm                                                                                | 2019 | 2018 | 2017
------------------------------------------------------------------------------------ | ---- | ---- | ----
Audit fees                                                                           |      |      |
Fees payable to the Company's auditor for the audit of the Company's annual accounts | 0.4  | 0.4  | 0.4
Audit of the Company's subsidiaries pursuant to legislation                          | 0.2  | 0.2  | 0.2
Total audit fees                                                                     | 0.6  | 0.6  | 0.6
Non-audit fees                                                                       |      |      |
Audit-related services                                                               | 0.1  | 0.2  | 0.4
Tax services                                                                         | 0.0  | -    | -
Total non-audit fees                                                                 | 0.1  | 0.2  | 0.4
Total                                                                                | 0.7  | 0.8  | 1.0

4 REMUNERATION AUDITORS AT PARENT COMPANY’S ANNUAL GENERAL MEETING
 SEC regulations remuneration auditor USD 0. 7m. 8m 1. Audit USD 0. 6m. audit-related services USD 0. 1m. 4m.
 Audit Committee pre-approves audit non-audit services law independent auditors fees engagement auditor.
 2019 2018 2017
 Audit fees
 Company's auditor audit annual accounts. 4. 4. 4
 Audit Company's subsidiaries. 2. 2.
 audit fees. 6. 6.
 Non-audit fees
 services. 1. 2.
 Tax services.
 non-audit fees. 2. 4
. 7. 8.