NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
NOTE 18 — Income Taxes
Significant components of our deferred tax assets and liabilities are as follows:

                                       | As of December 31, |
-------------------------------------- | ------------------ | -------
                                       | 2019               | 2018
Post-retirement benefits               | $1,100             | $1,061
Inventory reserves                     | 708                | 1,236
Loss carry-forwards                    | 4,724              | 4,647
Credit carry-forwards                  | 15,964             | 16,909
Accrued expenses                       | 4,932              | 5,685
Research expenditures                  | 17,953             | 16,847
Operating lease liabilities            | 6,211              | —
Stock compensation                     | 2,232              | 2,142
Foreign exchange loss                  | 1,986              | 2,245
Other                                  | 230                | 207
Gross deferred tax assets              | 56,040             | 50,979
Depreciation and amortization          | 12,453             | 11,500
Pensions                               | 13,552             | 11,736
Operating lease assets                 | 5,963              | —
Subsidiaries' unremitted earnings      | 1,903              | 1,258
Gross deferred tax liabilities         | 33,871             | 24,494
Net deferred tax assets                | 22,169             | 26,485
Deferred tax asset valuation allowance | (8,011)            | (8,274)
Total net deferred tax assets          | $14,158            | $18,211

FINANCIAL STATEMENTS
 Income
 deferred tax assets liabilities
 December
 Post-retirement benefits $1,100,061
 Inventory reserves
 Loss-forwards
 Credit-forwards 15,964
 Accrued expenses
 Research expenditures 17,953
 lease liabilities 6,211
 Stock compensation 2,232
 Foreign exchange loss 1,986
 deferred tax assets 56,040 50,979
 Depreciation amortization,453
 Pensions 13,552
 unremitted earnings 1,903
 deferred tax liabilities 33,871 24
 deferred tax assets 22,169
 allowance
 deferred tax assets $14,158 $18,211


Deferred tax (liabilities) assets are comprised of the following at:
The Company has Federal tax credit carryforwards of $5.4 million that expire in various tax years from 2028 to 2038. The Company has a Federal operating loss carryforward of $24.5 million expiring from 2029 through 2037 and a Federal operating loss carryforward of $17.9 million with an unlimited carryforward period. The Company also has state tax credit carryforwards of $0.3 million and state operating loss carryforwards of $43.3 million, which vary by jurisdiction and expire in various tax years through 2039.
In assessing the ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.
As a result of this analysis and based on the current year’s taxable income, and utilization of certain carryforwards management determined an increase in the valuation allowance in the current year to be appropriate.
In calculating the valuation allowance, the Company was not permitted to use its existing deferred tax liabilities related to its indefinite-lived intangible assets (i.e. “naked credit deferred tax liabilities”) as a source of taxable income to support the realization of its existing finite-lived deferred tax assets.
Due to the Tax Act, U.S. net operating losses ("NOLs") arising in tax years ending after December 31, 2017 will no longer be subject to the limited 20-year carryforward period. Under the new law, these NOLs carry forward indefinitely, resulting in the creation of indefinite-lived deferred tax assets. Consequently, as the Company schedules its deferred taxes and considers the ability to realize its deferred tax assets in future periods, it needs to consider how existing deferred tax assets, other than historical NOLs, will reverse.
If the reversal is expected to generate an indefinite carryforward NOL under the new law, this may impact the valuation allowance assessment. The indefinite carryforward period for NOLs also means that its deferred tax liabilities related to indefinite-lived intangibles, commonly referred to as “naked credits,” can be considered as support for realization. The adjustment for the 2019 “naked credit” resulted in a $0.01 million deferred tax liability.
In 2019, it was determined that the foreign tax credit carryforward of the Company would not be realizable. The reduction of the foreign tax credit carryforward resulted in a decrease in the valuation allowance for those credits. Therefore, there is no net income tax provision in 2019 related to the reduction in the foreign tax credit carryforward. A valuation allowance is required to the extent it is more likely than not that the future benefit associated with certain Federal and state tax loss carryforwards will not be realized.
The current year income tax provision includes a reduction of the Company’s valuation allowance due to the establishment of a deferred tax liability in connection with the issuance of convertible debt. The establishment of that deferred tax liability created “future taxable income” for the utilization of existing deferred tax assets of the Company, resulting in the $4 million reduction of the Company’s valuation allowance.
The Company records the benefits relating to uncertain tax positions only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the position would be sustained upon examination by taxing authorities. Tax positions that meet the more likely than not threshold are measured using a probability-weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement.
At December 31, 2019, the Company’s reserve for uncertain tax positions is not material and we believe we have adequately provided for its tax-related liabilities. The Company is no longer subject to United States federal income tax examinations for years before 2014.

                                              | December 31,   |
--------------------------------------------- | -------------- | --------
                                              | (in thousands) |
                                              | 2019           | 2018
Deferred tax (liabilities) assets:            |                |
Subordinated debt                             | $(3,659)       | $—
Indefinite lived intangibles                  | (64)           | —
Right of use assets                           | (756)          | —
Software development costs                    | (1,219)        | (1,954)
Acquired intangible assets                    | (446)          | (676)
Depreciation on property, plant and equipment | (352)          | —
Gross deferred tax liabilities                | (6,496)        | (2,630)
Allowances for bad debts and inventory        | 3,013          | 2,785
Capitalized inventory costs                   | 141            | 116
Intangible assets                             | 117            | 420
Employee benefit accruals                     | 2,427          | 1,742
Interest Limitation                           | 1,248          | —
Lease liabilities                             | 772            | —
Federal net operating loss carryforward       | 8,563          | 6,512
State net operating loss carryforward         | 2,317          | 2,112
Tax credit carryforwards                      | 5,777          | 6,176
Depreciation on property, plant and equipment | —              | 373
Other                                         | 912            | 722
Gross deferred tax assets                     | 25,287         | 20,958
Less valuation allowance                      | (18,855)       | (18,328)
Net deferred tax liabilities                  | $(64)          | $—

Deferred tax assets
 Company has Federal tax credit carryforwards $5. 4 million expire 2028 to 2038. Federal operating loss carryforward $24. 5 million expiring 2029 through 2037 Federal operating loss carryforward $17. 9 million unlimited carryforward period. state tax credit carryforwards $0. 3 million state operating loss carryforwards $43. 3 million vary jurisdiction expire through 2039.
 tax assets management considers. realization future taxable income. considers reversal projected future taxable income tax planning strategies.
 determined increase valuation allowance.
 not permitted use existing deferred tax liabilities indefinite-lived assets. taxable income.
 Tax Act. net operating losses after December 31, 2017 subject limited 20-year carryforward period. NOLs carry forward indefinitely indefinite-lived deferred tax assets.Company schedules deferred taxes considers assets.
 reversal indefinite carryforward NOL new law impact valuation allowance assessment. indefinite carryforward period for NOLs deferred tax liabilities indefinite-lived intangibles “naked credits support for realization. adjustment 2019 “naked credit” $0. 01 million deferred tax liability.
 2019 foreign tax credit carryforward realizable. reduction valuation allowance. no net income tax provision 2019 reduction. valuation allowance required future benefit tax loss carryforwards realized.
 current year income tax provision includes reduction valuation allowance due to deferred tax liability issuance convertible debt. created “future taxable income” for deferred tax assets $4 million reduction valuation allowance.
 Company records benefits uncertain tax positions more likely sustained. positions measured largest tax benefit greater than 50% likely upon settlement.
December 31, 2019 reserve tax positions tax liabilities. subject income tax examinations 2014.
 Deferred tax assets
 Subordinated debt,659
 Indefinite intangibles
 Right use assets
 Software development costs
 Acquired intangible assets
 Depreciation property plant equipment
 Gross deferred tax liabilities (6,496)
 Allowances bad debts inventory
 Capitalized inventory costs
 Intangible assets
 Employee benefit accruals 2,427
 Interest Limitation
 Lease liabilities
 Federal net operating loss
 State loss
 Tax credit carryforwards
 Depreciation property plant equipment
 Gross deferred tax assets 25,287
 Less valuation allowance (18,855
 Net deferred tax liabilities


Sales and Marketing
Sales and marketing expenses increased $3.1 million, or 1%, in 2019 as compared to 2018. As a percentage of revenue, sales and marketing expense decreased by approximately two percentage points, resulting from the 2018 Reallocation, increased cost efficiency, and leverage realized from changes to our sales commission plans as we continued our efforts to strategically scale our sales teams and improve their productivity.
Sales and marketing expenses decreased $15.6 million, or 7%, in 2018 as compared to 2017. As a percentage of revenue, sales and marketing expense decreased by approximately eight percentage points, primarily resulting from a combination of increased cost efficiency, reduction in headcount as part of our restructuring activities, and leverage realized from changes to our sales commission plans as we continued our efforts to strategically scale our sales teams and improve their productivity.

                    |          | Year Ended December 31, |
------------------- | -------- | ----------------------- | --------
                    | 2019     | 2018                    | 2017
                    |          | (dollars in thousands)  |
Sales and marketing | $227,733 | $224,635                | $240,271
Percent of revenue  | 39.5%    | 41.8%                   | 49.9%

Sales Marketing
 expenses increased $3. 1 million 1% 2019 2018. decreased two points 2018 Reallocation cost efficiency leverage sales commission plans.
 expenses decreased $15. 6 million 7% 2018 2017. decreased eight percentage points increased cost efficiency reduction headcount restructuring leverage commission plans.
 Year Ended December 31,
 2019 2018 2017
 (dollars thousands
 Sales marketing $227,733  $224,635  $240,271
 Percent revenue 39. 5% 41. 8% 49. 9%


1 Interest on borrowings includes interest on short-term borrowings and on long-term debt.
FOREIGN EXCHANGE AND CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS We recognized $79 million in net foreign exchange gains in 2019 (2018 – $136 million in net losses). These gains and losses were primarily attributed to our US dollar-denominated commercial paper (US CP) program borrowings (see note 17).
These foreign exchange gains (2018 – losses) were partially offset by the $80 million loss related to the change in fair value of derivatives (2018 – $95 million gain) that was primarily attributed to the debt derivatives, which were not designated as hedges for accounting purposes, we used to substantially offset the foreign exchange risk related to these US dollar-denominated borrowings.
During the year ended December 31, 2018, after determining we would not be able to exercise our outstanding bond forward derivatives (bond forwards) within the designated time frame, we discontinued hedge accounting and reclassified a $21 million loss from the hedging reserve within shareholders’ equity to “change in fair value of derivative instruments” within finance costs.
We subsequently extended the bond forwards and redesignated them as effective hedges. During the year ended December 31, 2019, we exercised these bond forwards. See note 17 for more information on our bond forwards.
NOTE 11: FINANCE COSTS

                                                   | Years ended December 31 | Years ended December 31 | Years ended December 31
-------------------------------------------------- | ----------------------- | ----------------------- | -----------------------
(In millions of dollars)                           | Note                    | 2019                    | 2018
Interest on borrowings 1                           |                         | 746                     | 709
Interest on post-employment benefits liability     | 23                      | 11                      | 14
Loss on repayment of long-term debt                | 21                      | 19                      | 28
(Gain) loss on foreign exchange                    |                         | (79)                    | 136
Change in fair value of derivative instruments     |                         | 80                      | (95)
Capitalized interest                               |                         | (19)                    | (20)
Other                                              |                         | 21                      | 21
Finance costs before interest on lease liabilities |                         | 779                     | 793
Interest expense on lease liabilities              | 8                       | 61                      | -
Total finance costs                                |                         | 840                     | 793

Interest on borrowings includes short long-term debt.
 FOREIGN EXCHANGE CHANGE FAIR VALUE DERIVATIVE INSTRUMENTS recognized $79 million foreign exchange gains 2019 (2018 – $136 million losses. gains US dollar commercial paper) program borrowings.
 offset by $80 million loss change fair value derivatives $95 million gain debt derivatives foreign exchange risk.
 December 31, 2018 discontinued hedge accounting reclassified $21 million loss hedging reserve to “change fair value derivative finance costs.
 extended bond forwards redesignated effective hedges. December 31, 2019 exercised bond forwards. note 17 information.
 11 FINANCE COSTS
 Years ended December 31
 millions
 Interest on borrowings
 Interest post-employment benefits liability
 Loss on repayment long-term debt
 foreign exchange
 Change fair value derivative instruments
 Capitalized interest

 Finance costs interest 779 793
 Interest expense lease 61
 finance costs 840 793


Note: 1 Primarily comprises foreign exchange differences reflected in the income statement in relation to sterling and US dollar balances.
Net financing costs increased by €1.3 billion, primarily driven by mark-to-market losses (including hedges of the mandatory convertible bond) and adverse foreign exchange rate movements. Net financing costs before interest on settlement of tax issues includes increased interest costs as part of the financing for the Liberty Global transaction as well as adverse interest rate movements on borrowings in foreign operations. Excluding these, underlying financing costs remained stable, reflecting consistent average net debt balances and weighted average borrowing costs for both periods.

Net financing costs                                             |         |
--------------------------------------------------------------- | ------- | -------
                                                                | 2019    | 2018
                                                                | €m      | €m
Investment income                                               | 433     | 685
Financing costs                                                 | (2,088) | (1,074)
Net financing costs                                             | (1,655) | (389)
Analysed as:                                                    |         |
Net financing costs before interest on settlement of tax issues | (1,043) | (749)
Interest income arising on settlement of outstanding tax issues | 1       | 11
                                                                | (1,042) | (738)
Mark to market (losses)/gains                                   | (423)   | 27
Foreign exchange (losses)/gains1                                | (190)   | 322
Net financing costs                                             | (1,655) | (389)

foreign exchange differences sterling US dollar.
 financing costs increased €1. 3 billion mark-to-market losses adverse foreign exchange rate movements. costs before interest increased Liberty Global adverse interest rate foreign operations. underlying financing costs stable debt balances borrowing costs.
 financing costs
 Investment income 433
 Financing costs (2,088) (1,074)
 (1,655) (389)
 costs before interest settlement tax issues (1,043)
 Interest income settlement tax issues
 Mark market
 Foreign exchange (losses
 financing costs (1,655) (389)


Fourth quarter gross profit was $1,081 million and gross margin was 39.3%. On a sequential basis, gross margin increased 140 basis points, mainly driven by improved product mix and better manufacturing efficiencies.
Gross margin decreased 70 basis points year-over-year, mainly impacted by price pressure and unsaturation charges, partially offset by improved manufacturing efficiencies, better product mix and favorable currency effects, net of hedging.

                                             |                   | Three Months Ended       |                   | Variation  |
-------------------------------------------- | ----------------- | ------------------------ | ----------------- | ---------- | --------------
                                             | December 31, 2019 | September 29, 2018       | December 31, 2018 | Sequential | Year-Over-Year
                                             |                   | (Unaudited, in millions) |                   |            |
Gross profit                                 | $ 1,081           | $ 967                    | $ 1,059           | 11.8%      | 2.0%
Gross margin (as percentage of net revenues) | 39.3%             | 37.9%                    | 40.0%             | +140 bps   | -70 bps

Fourth quarter profit $1,081 million margin 39. 3%. margin increased 140 points improved product mix manufacturing efficiencies.
 margin decreased 70 year-over-year impacted price pressure unsaturation charges offset improved manufacturing efficiencies currency effects hedging.
 Three Months
 December 31, Year-Over-Year
 profit $ 1,081 11. 8% 2. 0%
 margin revenues 39. 3% 37. 9% 40. 0%


* As adjusted to reflect the impact of the full retrospective adoption of IFRS 15. See Note 2 for further details.
The U.S. Tax Cuts and Jobs Act (the “Tax Act”) enacted on December 22, 2017 introduces a number of changes to U.S. income tax law. Among other changes, the Tax Act (i) reduces the U.S. federal corporate tax rate from 35% to 21%, (ii) enacts limitations regarding the deductibility of interest expense, (iii) modifies the provisions relating to the limitations on deductions for executive compensation of publicly traded corporations, (iv) imposes new limitations on the utilization of net operating loss arising in taxable years beginning after December 31, 2017, (v) repeals the corporate alternative minimum tax and provides for a refund of existing alternative minimum tax credits, and (vi) creates new taxes on certain foreign-sourced earnings and certain related-party payments, which are referred to as the global intangible low-taxed income tax and the base erosion tax, respectively.
As a result of the new U.S. federal statutory corporate tax rate of 21% contained within the Tax Act, the Group recorded non-cash charges of $16.9 million to tax expense and $16.9 million to equity to revalue the Group’s U.S. net deferred tax assets during fiscal year 2018.
In June 2019 and December 2017, as a result of the Group’s assessment of the realizability of its Australian and U.S. deferred tax assets, the Group recorded non-cash charges to tax expense of $54.7 million and $30.4 million, respectively, and $25.8 million to equity in December 2017 to reduce the carrying value of these assets. The assessment of the realizability of the Australian and U.S. deferred tax assets is based on all available positive and negative evidence. Such evidence includes, but is not limited to, recent cumulative earnings or losses, expectations of future taxable income by taxing jurisdiction, and the carry-forward periods available for the utilization of deferred tax assets. The Group will continue to assess and record any necessary changes to align its deferred tax assets to their realizable value.
In December 2017, the Group made changes to its corporate structure to include certain foreign subsidiaries in its U.S. consolidated tax group that resulted in the creation of certain deferred tax assets and liabilities, including a non-recognized deferred tax asset of $2.1 billion related to the fair market value of its intellectual property. The assets are included in the Group’s quarterly assessment and are only recognized to the extent they are determined to be realizable.
The impact on the net deferred tax asset from business combinations of $19.1 million in fiscal year 2019 represents the net deferred tax assets and liabilities recognized as a result of the acquisition of OpsGenie. The Group acquired net operating loss carryforward deferred tax assets of approximately $1.8 million from OpsGenie. The Group also recognized deferred tax liabilities of approximately $19.6 million primarily related to acquired intangibles from OpsGenie, the amortization of which will not be deductible from future taxable profits.

                                            | 2019                  | 2018
------------------------------------------- | --------------------- | ------------
                                            | (U.S. $ in thousands) |
                                            |                       | *As Adjusted
Reconciliation of deferred tax assets, net  |                       |
Balance at the beginning of                 | $47,060               | $140,532
Deferred tax expense for the year           | (15,916)              | (53,297)
Debited to equity                           | (8,884)               | (40,092)
Adjustment in respect of income tax payable | —                     | (83)
Impact from business combinations           | (19,092)              | —
Currency revaluation impact                 | 44                    | —
Balance at the ending of                    | $3,212                | $47,060

adjusted impact IFRS 15. Note 2.
 U. S. Tax Cuts Jobs Act December 22, 2017 changes. income tax law. reduces. federal corporate tax rate 35% to 21% enacts deductibility interest expense modifies executive compensation limitations net operating loss December 31, 2017 repeals corporate alternative minimum tax refund tax credits creates new taxes foreign-sourced earnings related-party payments global intangible low-taxed income tax base erosion tax.
. corporate tax rate 21% Group recorded non-cash charges $16. 9 million tax expense $16. 9 million equity. deferred tax assets 2018.
 June 2019 December 2017. tax recorded non-cash charges tax expense $54. 7 million $30. 4 million $25. 8 million equity 2017 carrying value. assessment. based evidence. recent earnings losses future taxable income carry-forward periods deferred tax.Group changes deferred tax assets realizable value.
 December 2017 foreign subsidiaries. consolidated tax group deferred tax assets liabilities non-recognized deferred tax asset $2. 1 billion intellectual property. assets quarterly assessment recognized realizable.
 impact net deferred tax asset business combinations $19. 1 million 2019 acquisition OpsGenie. acquired deferred tax assets $1. 8 million OpsGenie. recognized deferred tax liabilities $19. 6 million intangibles OpsGenie amortization not deductible future taxable profits.
.
 Reconciliation deferred tax assets
 Balance $47,060 $140,532
 Deferred tax expense (15,916)
 Debited equity
 income tax
 Impact business combinations (19,092)
 Currency revaluation impact
 Balance $3,212 $47,060


Foreign Currency Analysis
We generate a significant amount of our revenue in the United States, Germany, Japan, the United Kingdom and Canada
The following table shows the impact of foreign exchange rate changes on our net revenue and total spend:
(1) Please refer to the Glossary of Terms for the definitions of our constant currency growth rates.
Changes in the value of the U.S. dollar may have a significant effect on net revenue, total spend, and income (loss) from operations in future periods. We use foreign currency contracts to reduce the exchange rate effect on a portion of the net revenue of certain anticipated transactions but do not attempt to completely mitigate the impact of fluctuations of such foreign currency against the U.S. dollar.

            | Fiscal Year Ended January 31, 2019                         |                                                                    |
----------- | ---------------------------------------------------------- | ------------------------------------------------------------------ | -------------------------------------------------------------------
            | Percent change compared to prior fiscal year (as reported) | Constant currency percent change compared to prior fiscal year (1) | Positive/negative/neutral impact from foreign exchange rate changes
Revenue     | 25%                                                        | 24%                                                                | Positive
Total spend | 1%                                                         | 1%                                                                 | Neutral

Foreign Currency Analysis
 generate revenue United States Germany Japan Kingdom Canada
 table impact foreign exchange rate changes net revenue spend
 Glossary Terms constant currency growth rates.
 Changes. dollar revenue total spend income. foreign currency contracts reduce exchange rate effect mitigate impact fluctuations.
 Fiscal Year Ended January 31, 2019
 Percent change fiscal year Constant currency percent change Positive impact foreign exchange rate changes
 Revenue 25% 24% Positive
 Total spend 1% Neutral


Contractual Obligations
The following table presents the payments due by fiscal year for our outstanding contractual obligations as of December 31, 2019 (in thousands):
(1) Includes estimated cash interest to be paid over the remaining terms of the underlying debt. Interest payments are based on fixed and floating rates as of December 31, 2019.
(2) Purchase obligations represent agreements to purchase goods or services, including open purchase orders and contracts with fixed volume commitments, that are noncancelable or cancelable with a significant penalty. Purchase obligations for our long-term supply agreements for the purchase of substrate glass and cover glass represent specified termination penalties, which are up to $430 million in the aggregate under the agreements. Our actual purchases under these supply agreements are expected to be approximately $2.4 billion of substrate glass and $500 million of cover glass.
(3) In connection with business or project acquisitions, we may agree to pay additional amounts to the selling parties upon achievement of certain milestones. See Note 14. “Commitments and Contingencies” to our consolidated financial statements for further information.
(4) Transition tax obligations represent estimated payments for U.S. federal taxes associated with accumulated earnings and profits of our foreign corporate subsidiaries. See Note 18. “Income Taxes” to our consolidated financial statements for further information.
(5) Includes expected letter of credit fees and unused revolver fees.
We have excluded $72.2 million of unrecognized tax benefits from the amounts presented above as the timing of such obligations is uncertain.

                                 |            |           | Payments Due by Year |          |
-------------------------------- | ---------- | --------- | -------------------- | -------- | ---------
                                 |            | Less Than | 1 - 3                | 3 - 5    | More Than
                                 | Total      | 1 Year    | Years                | Years    | 5 Years
Long-term debt obligations       | $482,892   | $17,684   | $98,571              | $37,496  | $329,141
Interest payments (1) .          | 168,040    | 17,276    | 29,533               | 27,409   | 93,822
Operating lease obligations      | 162,913    | 15,153    | 28,771               | 26,708   | 92,281
Purchase obligations (2) .       | 1,424,267  | 900,200   | 221,888              | 187,277  | 114,902
Recycling obligations .          | 137,761    | —         | —                    | —        | 137,761
Contingent consideration (3) .   | 6,895      | 2,395     | 4,500                | —        | —
Transition tax obligations (4) . | 76,667     | 6,620     | 14,747               | 32,259   | 23,041
Other obligations (5) .          | 10,527     | 2,933     | 5,164                | 2,430    | —
Total .                          | $2,469,962 | $962,261  | $403,174             | $313,579 | $790,948

Contractual Obligations
 table presents payments due fiscal year obligations December 31, 2019
 Includes estimated cash interest remaining terms debt. based fixed floating rates.
 Purchase obligations agreements goods services noncancelable significant penalty. long-term supply agreements substrate cover glass termination penalties up to $430 million. purchases approximately $2. 4 billion substrate glass $500 million cover glass.
 pay additional amounts selling parties milestones. Note 14.
 Transition tax obligations payments. federal taxes earnings profits foreign subsidiaries. Note 18.
 Includes letter credit fees unused revolver fees.
 excluded $72. 2 million unrecognized tax benefits timing uncertain.
 Payments Due Year
 1 - 3 - 5
 5 Years
 Long-term debt obligations $482,892 $17,684 $98,571 $37,496 $329,141
 Interest payments.168,040 29,533 27,409 93,822
 lease 162 26,708 92,281
 Purchase. 1,424,267,200 221,888 187,277
 Recycling.
.,895 4,500
 Transition tax. 76,667 14,747 32,259 23,041
. 10,527 2,933 5,164 2,430
. $2,469,962 $962,261 $403,174 $313,579 $790,948


Additional Information
The following table presents sales information by geographic area for the years ended December 31, 2019, 2018 and 2017:
Customers comprising more than 10% of revenue can change from year to year. Single customers comprising more than 10% of our revenue in 2019 included three customers at 19%, 17% and 13%. Single customers comprising more than 10% of our revenue in 2018 included two customers at 27% and 17%. Single customers comprising more than 10% of our revenue in 2017 included two customers at 40% and 16%. Other than those with more than 10% of revenues disclosed above, and excluding distributors, our next five largest customers can change, and has historically changed, from year-to-year. These combined customers represented 15%, 18% and 15% of total revenue in 2019, 2018 and 2017, respectively.
As of December 31, 2019, property, plant and equipment, net totaled $73.7 million, which included $69.9 million held in the U.S. and $3.9 million held outside the U.S. As of December 31, 2018, property, plant and equipment, net totaled $80.6 million, which included $77.3 million held in the U.S. and $3.3 million held outside the U.S. Property, plant and equipment, net is reported on a company-wide, functional basis only.

(In thousands)      | 2019     | 2018     | 2017
------------------- | -------- | -------- | --------
United States       | $300,853 | $288,843 | $508,178
Mexico              | 90,795   | 12,186   | 2,246
Germany             | 78,062   | 167,251  | 119,502
Other international | 60,351   | 60,997   | 36,974
Total               | $530,061 | $529,277 | $666,900

 table presents sales by geographic area 2019 2018
 Customers 10% revenue change. 2019 included 19% 17% 13%. 2018 27% 17%. 2017 40% 16%. five largest customers change-to-year. represented 15% 18% 15% revenue 2019 2018 2017.
 December 31, 2019 property equipment totaled $73. 7 million $69. 9 million. $3. 9 million outside. December 31, 2018 $80. 6 million $77. 3 million. $3. 3 million outside. company-wide basis.
 2019 2018 2017
 United States $300,853 $288,843 $508,178
 Mexico 90,795 12,186
 Germany 78,062 167,251 119,502
 international 60,351,997 36,974
 Total $530,061 $529,277 $666,900


AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENT(Tabular amounts in millions, unless otherwise disclosed)
11. ASSET RETIREMENT OBLIGATIONS
The changes in the carrying amount of the Company’s asset retirement obligations were as follows:
(1) Revisions in estimates include decreases to the liability of $6.7 million and $49.4 million related to foreign currency translation for the years ended December 31, 2019 and 2018, respectively.
As of December 31, 2019, the estimated undiscounted future cash outlay for asset retirement obligations was $3.2 billion.

                                   | 2019     | 2018
---------------------------------- | -------- | --------
Beginning balance as of January 1, | $1,210.0 | $1,175.3
Additions                          | 61.8     | 39.6
Accretion expense                  | 81.6     | 83.6
Revisions in estimates (1)         | 56.8     | (81.5)
Settlements                        | (26.1)   | (7.0)
Balance as of December 31,         | $1,384.1 | $1,210.0

AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENT amounts millions
. RETIREMENT OBLIGATIONS
 changes obligations
 Revisions $6. 7 million $49. 4 million foreign currency December 2019 2018.
 future cash outlay obligations $3. 2 billion.
 balance January 1 $1,210. $1,175.
 Additions 61. 39.
 81. 83.
 Revisions estimates 56.
 Settlements.
 Balance December 31, $1,384. $1,210.


Free Cash Flow (non-U.S. GAAP measure). We also present Free Cash Flow, which is a non-U.S. GAAP measure, defined as (i) net cash from operating activities plus (ii) net cash used in investing activities, excluding payment for purchases (and proceeds from the sale) of marketable securities, and net cash variation for joint ventures deconsolidation, which are considered as temporary financial investments. The result of this definition is ultimately net cash from operating activities plus payment for purchase and proceeds from sale of tangible, intangible and financial assets, proceeds received in the sale of businesses and cash paid for business acquisitions.
We believe Free Cash Flow, a non-U.S. GAAP measure, provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations. Free Cash Flow is not a U.S. GAAP measure and does not represent total cash flow since it does not include the cash flows generated by or used in financing activities.
Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchases (and proceeds from the sale) of marketable securities and net cash variation from joint ventures deconsolidation, the net cash from (used in) financing activities and the effect of changes in exchange rates. In addition, our definition of Free Cash Flow may differ from definitions used by other companies. Free Cash Flow is determined from our Consolidated Statements of Cash Flows as follows:
(1) Reflects the total of the following line items reconciled with our Consolidated Statements of Cash Flows relating to the investing activities: Payment for purchase of tangible assets, Proceeds from sale of tangible assets, Payment for purchase of intangible assets, Payment for purchase of financial assets, Proceeds from sale of financial assets, Payment for disposal of equity investment, Proceeds received in sale of businesses, Payment for business acquisitions, net of cash and cash equivalents acquired.
Free Cash Flow was positive $497 million in 2019, compared to positive $533 million and positive $308 million in 2018 and 2017, respectively.

                                                                                |         | Year Ended December 31, |
------------------------------------------------------------------------------------------------------------------------------- | ------- | ----------------------- | -------
                                                                                | 2019    | 2018                    | 2017
                                                                                |         | (In millions)           |
Net cash from operating activities                                                                                | $1,869  | $1,845                  | $1,677
Net cash used in investing activities                                                                                | (1,172) | (1,212)                 | (1,468)
Excluding:                                                                                |         |                         |
Payment for purchase and proceeds from sale of marketable securities, and net cash variation for joint ventures deconsolidation | (200)   | (100)                   | 99
Payment for purchase and proceeds from sale of tangible and intangible assets, payment for business acquisitions(1)             | (1,372) | (1,312)                 | (1,369)
Free Cash Flow (non-U.S. GAAP measure)                                                                                | $497    | $533                    | $308

Free Cash Flow-U. GAAP measure. net cash operating activities investing excluding purchases proceeds marketable securities cash joint ventures deconsolidation temporary financial investments. net cash from operating activities purchase proceeds sale tangible intangible financial assets proceeds sale businesses cash business.
 Free Cash Flow non. GAAP information investors management measures capacity cash operating investing. not. GAAP represent total cash flow include cash flows financing activities.
 reconciles with total cash flow payment purchases proceeds sale marketable securities cash joint ventures deconsolidation financing effect changes exchange rates. definition Free Cash Flow differ. determined from Consolidated Statements of Cash Flows
 Reflects investing Payment purchase tangible Proceeds sale financial sale disposal equity investment Proceeds sale businesses business cash equivalents.
 Free Cash Flow positive $497 million 2019 compared positive $533 million $308 million in 2018 2017.
Ended December 31,
 2019 2018
 millions
 cash operating activities $1,869 $1,845 $1,677
 investing (1,172 (1,212) (1,468)
 purchase securities joint ventures deconsolidation (200 (100
 sale assets business (1,372) (1,312) (1,369
 Free Cash Flow. $497 $533 $308


11. Segment Information and Geographic Area Information
The following table sets forth certain geographic financial information for fiscal 2019, fiscal 2018 and fiscal 2017. Geographic net sales are determined based on our sales from our various operational locations.

                                         |                | Fiscal Year Ended |
---------------------------------------- | -------------- | ----------------- | --------------
(Dollars in Millions)                    | April 27, 2019 | April 28, 2018    | April 29, 2017
Net Sales:                               |                |                   |
U.S.                                     | $540.5         | $487.5            | $506.9
Malta                                    | 148.5          | 184.0             | 155.5
China                                    | 113.7          | 117.3             | 127.7
Canada                                   | 101.6          | 54.4              | —
Other                                    | 96.0           | 65.1              | 26.4
Total Net Sales                          | $1,000.3       | $908.3            | $816.5
Property, Plant and Equipment, Net:      |                |                   |
U.S.                                     | $83.9          | $63.3             | $44.9
Malta                                    | 33.0           | 36.8              | 26.4
Belgium                                  | 22.1           | 25.0              | —
China                                    | 18.6           | 7.2               | 5.9
Other                                    | 34.3           | 29.9              | 13.4
Total Property, Plant and Equipment, Net | $191.9         | $162.2            | $90.6

. Segment Geographic Area
 table geographic financial information 2019 2018 2017. sales operational locations.
 Fiscal Year
 Millions April 27, 2019 28, 2018 29, 2017
 Sales
. $540. $487. $506.
 148. 184. 155.
 113. 117. 127.
 101. 54.
 96. 65. 26.
 Net Sales $1,000. $908. $816.
 Property Plant Equipment
. $83. $63. $44.
 33. 36. 26.
 22. 25.
 18. 7. 5.
 34. 29. 13.
 Property Plant Equipment $191. $162. $90.


Results of Continuing Operations
The analysis presented below is organized to provide the information we believe will facilitate an understanding of our historical performance and relevant trends going forward, and should be read in conjunction with our Consolidated Financial Statements, including the notes thereto, in Item 8 "Financial Statements and Supplementary Data" of this Annual Report on Form 10 - K.
The following table sets forth, for the periods indicated, certain data derived from our Consolidated Statements of Operations (in thousands):

                                                       | Year Ended December 31, |
------------------------------------------------------ | ----------------------- | ---------
                                                       | 2019                    | 2018
Sales                                                  | $788,948                | $718,892
Gross profit                                           | 315,652                 | 365,607
Operating expenses                                     | 261,264                 | 194,054
Operating income from continuing operations            | 54,388                  | 171,553
Other income (expense), net                            | 12,806                  | 823
Income from continuing operations before income taxes  | 67,194                  | 172,376
Provision for income taxes                             | 10,699                  | 25,227
Income from continuing operations, net of income taxes | $ 56,495                | $ 147,149

Continuing Operations
 analysis historical performance trends Consolidated Financial Statements Item 8 Annual Report Form 10 - K.
 table data Consolidated Statements Operations
 Ended December 31,
 Sales $788,948 $718,892
 Gross profit 315,652 365,607
 Operating expenses 261,264 194,054
 income 54,388 171,553
 Other income 12,806 823
 taxes 67,194 172,376
 Provision income taxes 10,699 25,227
 net taxes $ 56,495 147,149


Commitments and Contractual Obligations
As of June 30, 2019, we have entered into the following contractual obligations with minimum payments for the indicated fiscal periods as follows:
1) Includes interest up to maturity and principal payments. Please see note 10 "Long-Term Debt" for more details.
(2) Net of $30.7 million of sublease income to be received from properties which we have subleased to third parties.

                                |            |                             | Payments due between        |                             |
------------------------------- | ---------- | --------------------------- | --------------------------- | --------------------------- | -----------------------
                                | Total      | July 1, 2019— June 30, 2020 | July 1, 2020— June 30, 2022 | July 1, 2022— June 30, 2024 | July 1, 2024 and beyond
Long-term debt obligations (1)  | $3,408,565 | $147,059                    | $292,156                    | $1,045,567                  | $1,923,783
Operating lease obligations (2) | 318,851    | 72,853                      | 106,394                     | 59,441                      | 80,163
Purchase obligations            | 11,280     | 8,364                       | 2,747                       | 169                         | —
                                | $3,738,696 | $228,276                    | $401,297                    | $1,105,177                  | $2,003,946

Commitments Contractual Obligations
 June 30, 2019 obligations minimum payments
 Includes interest principal payments. note 10-Term Debt.
 $30. 7 million sublease income properties.
 Payments
 July 1, June 30, 2020
 Long-term debt obligations $3,408,565 $147,059 $292,156 $1,045,567 $1,923,783
 Operating lease obligations 318,851 72,853 106,394,441
 Purchase obligations 11,280 8,364
 $3,738,696 $228,276 $401,297 $1,105,177 $2,003,946


8. Directors and Key Management remuneration
The remuneration of Directors is disclosed in the Directors’ remuneration report on pages 64 to 74:
Key Management compensation
During the year to 31 March 2019, Key Management comprised the members of the OLT and the Non-Executive Directors (2018: OLT and the Non-Executive Directors). The remuneration of all Key Management (including Directors) was as follows:

                             | 2019 | 2018
---------------------------- | ---- | ----
                             | £m   | £m
Short-term employee benefits | 5.3  | 4.9
Share-based payments         | 3.5  | 2.6
Termination benefits         | –    | 0.1
Pension contributions        | 0.2  | 0.2
Total                        | 9.0  | 7.8

. Directors Key Management remuneration
 Directors disclosed report pages 64 to 74
 31 March 2019 Key Management OLT Non-Executive Directors. remuneration Key Management
 2019 2018
 £m
 Short-term employee benefits 5. 4.
 Share-based payments.
 Termination benefits.
 Pension contributions.
 Total 9. 7.


A.4.1 Orders and revenue by region
Positive currency translation effects added one percentage point each to order and revenue growth; portfolio transactions had only minimal effects on volume growth year-over-year. The resulting ratio of orders to revenue (book-to-bill) for Siemens in fiscal 2019 was a strong 1.13, again well above 1. The order backlog was € 146 billion as of September 30, 2019, a new high.
1 As defined by the International Monetary Fund.
Orders related to external customers were clearly up year-overyear on growth in nearly all industrial businesses, led by Mobility. Gas and Power, Siemens Healthineers, Smart Infrastructure and SGRE all posted clear growth, while orders declined slightly in Digital Industries. Volume from large orders for Industrial Businesses overall was up substantially due to a sharp increase at Mobility, but also due to a significant increase in SGRE and Gas and Power. Growth in emerging markets was driven by orders from China, and from Russia where Mobility won a € 1.2 billion contract for high-speed trains including maintenance.
Order development was mixed in the Europe, C. I. S., Africa, Middle East region. The majority of industrial businesses posted order growth, led by double-digit growth in Mobility, which won several large contracts in the year under review. This increase was more than offset by a substantial decline in SGRE due mainly to a lower volume from large orders and a decrease in Digital Industries. In contrast to the region overall, orders were up clearly in Germany, driven by sharp growth in Gas and Power which recorded, among others, a large high voltage direct current (HVDC) order. Mobility recorded a significant increase in order intake in Germany, while the other industrial businesses posted declines.
Orders in the Americas region were up significantly year-over-year, benefiting from positive currency translation effects. Double-digit growth in nearly all industrial businesses was led by SGRE and Mobility with particularly sharp increases. The pattern of order development in the U. S. was largely the same as in the Americas region.
In the Asia, Australia region, orders also rose significantly due to growth in nearly all industrial businesses. The primary growth driver was SGRE, which recorded a sharply higher volume from large orders, including two large orders for offshore wind-farms
including service in Taiwan totaling € 2.3 billion. Orders for Mobility dropped substantially compared to the prior year. Clear growth in China included a majority of industrial businesses.

                                      |        | Fiscal year |        | % Change
------------------------------------- | ------ | ----------- | ------ | --------
(in millions of €)                    | 2019   | 2018        | Actual | Comp.
Europe, C. I. S., Africa, Middle East | 46,086 | 46,495      | (1)%   | (1)%
therein: Germany                      | 12,021 | 11,254      | 7%     | 7%
Americas                              | 29,812 | 25,060      | 19%    | 14%
therein: U.S.                         | 21,166 | 18,106      | 17%    | 10%
Asia, Australia                       | 22,101 | 19,742      | 12%    | 11%
therein: China                        | 8,989  | 8,459       | 6%     | 6%
Siemens                               | 97,999 | 91,296      | 7%     | 6%
therein: emerging markets1            | 31,720 | 30,564      | 4%     | 4%

. Orders revenue by region
 currency translation added percentage point order revenue growth portfolio transactions minimal volume growth. ratio orders to revenue Siemens 2019 1. 13,. order backlog € 146 billion September 30, 2019 high.
 International Monetary Fund.
 Orders external customers up year-overyear Mobility. Gas and Power Siemens Healthineers Smart Infrastructure SGRE declined Digital Industries. Volume large orders up Mobility SGRE Gas and Power. Growth emerging markets driven by orders China Russia Mobility won € 1. 2 billion contract high-speed trains.
 Order development mixed Europe C. S. Africa Middle East. majority growth double growth Mobility large contracts. offset by decline SGRE lower volume decrease Digital Industries. orders up Germany Gas and Power. Mobility increase other businesses declines.
 Orders Americas region up-over currency translation. growth led by SGRE Mobility. same.
 Asia Australia orders rose growth.growth driver SGRE higher volume orders offshore wind-farms
 Taiwan € 2. 3 billion. Orders Mobility dropped. growth China industrial businesses.
 Fiscal year
 millions € 2019.
 Europe. Africa Middle East 46,086 46,495
 Germany 12,021 11,254 7%
 Americas 29,812 25,060 19%
. 21,166 18,106 17%
 Asia Australia 22,101 19,742 12%
 China 8,989
 97,999 91,296 7%
 emerging 31,720 30,564 4%


Item 6. Selected Consolidated Financial Data
The following table presents selected consolidated financial data as of and for the five-year period ended December 31, 2019. Our past results of operations are not necessarily indicative of our future results of operations. The following selected consolidated financial data is qualified in its entirety by, and should be read in conjunction with, “Management's Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and the notes thereto included elsewhere herein.
Consolidated Statement of Operations Data:

                                                                           |          |          | Year Ended December 31,               |          |
-------------------------------------------------------------------------- | -------- | -------- | ------------------------------------- | -------- | --------
                                                                           | 2019     | 2018     | 2017                                  | 2016     | 2015
                                                                           |          |          | (In thousands, except per share data) |          |
Revenues                                                                   | $111,412 | $111,322 | $106,524                              | $114,263 | $123,961
Income from operations                                                     | 9,464    | 8,238    | 4,545                                 | 10,186   | 3,820
Income from continuing operations, net of taxes                            | 4,155    | 4,661    | 1,592                                 | 6,007    | 8,523
Income from discontinued operations, net of taxes                          | —        | —        | 1,938                                 | 624      | 2,341
Net income                                                                 | $4,155   | $4,661   | $3,530                                | $6,631   | $10,864
Income per share—basic:                                                    |          |          |                                       |          |
Continuing operations                                                      | $0.35    | $0.38    | $0.12                                 | $0.43    | $0.58
Discontinued operations                                                    | —        | —        | 0.15                                  | 0.04     | 0.16
Net income per share                                                       | $0.35    | $0.38    | $0.27                                 | $0.47    | $0.74
Income per share—diluted:                                                  |          |          |                                       |          |
Continuing operations                                                      | $0.35    | $0.37    | $0.12                                 | $0.43    | $0.58
Discontinued operations                                                    | —        | —        | 0.15                                  | 0.04     | 0.16
Net income per share                                                       | $0.35    | $0.37    | $0.27                                 | $0.47    | $0.74
Shares used in per share calculation from continuing operations —basic     | 11,809   | 12,323   | 12,882                                | 13,997   | 14,722
Shares used in per share calculation from discontinued operations —basic   | 11,809   | 12,323   | 12,882                                | 13,997   | 14,722
Shares used in per share calculation from continuing operations—diluted    | 12,035   | 12,510   | 12,894                                | 13,997   | 14,722
Shares used in per share calculation from discontinuing operations—diluted | 12,035   | 12,510   | 12,894                                | 13,997   | 14,722

. Consolidated Financial Data
 table presents consolidated financial data five-year period ended December 31, 2019. past not indicative future. data qualified's Discussion Analysis Financial Condition Results consolidated financial statements notes.
 Operations Data
 Ended December 31,
 2019 2018 2017 2016 2015
 Revenues $111,412 $111,322 $106,524 $114,263  $123,961
 Income operations 9,464 8,238 4,545 10,186 3,820
 continuing operations net taxes 4,155 4,661 1,592 6,007 8,523
 discontinued operations taxes 1,938 2,341
 Net income $4,155 $4,661 $3,530 $6,631 $10,864
 Income per share—basic
 operations.
 Discontinued operations.
 Net income per share.
 Income per share—diluted
operations. 35. 37. 12. 43. 58
 Discontinued operations. 15. 04. 16
 Net income share. 35. 37. 27. 47. 74
 Shares share calculation continuing operations 11,809 12,323 12,882 13,997 14,722
 discontinued operations 14
 continuing 12,035 12,510 12,894 13,997 14,722
 discontinuing 12,035 12,510 12,894 13,997 14


Deferred income taxes are recorded for differences in the basis of assets and liabilities for financial reporting purposes and tax reporting purposes. Deferred tax assets (liabilities) were comprised of the following:
At January 3, 2020, the Company had state net operating losses of $77 million and state tax credits of $7 million. Both will begin to expire in fiscal 2020; however, the Company expects to utilize $24 million and $7 million of these state net operating losses and state tax credits, respectively. The Company also had foreign net operating losses of $44 million, which do not expire. The Company expects to utilize $9 million of these foreign net operating losses.
Our valuation allowance for deferred tax assets was $20 million and $28 million as of January 3, 2020 and December 28, 2018, respectively. The valuation allowance decreased by $8 million primarily due to the sale of the commercial cybersecurity business and releases related to the expected utilization of certain carryover attributes, partially offset by an increase related to foreign withholding taxes.

                                                | January 3, 2020 | December 28, 2018
----------------------------------------------- | --------------- | -----------------
                                                | (in millions)   |
Operating lease liabilities                     | $115            | $—
Accrued vacation and bonuses                    | 54              | 48
Reserves                                        | 46              | 57
Deferred compensation                           | 26              | 25
Credits and net operating losses carryovers     | 25              | 31
Vesting stock awards                            | 18              | 20
Accumulated other comprehensive loss            | 12              | —
Deferred rent and tenant allowances             | 4               | 18
Investments                                     | 2               | 18
Deferred gain                                   | —               | 20
Other                                           | 9               | 13
Total deferred tax assets                       | 311             | 250
Valuation allowance                             | (20)            | (28)
Deferred tax assets, net of valuation allowance | 291             | 222
Purchased intangible assets                     | $(339)          | $(326)
Operating lease right-of-use assets             | (103)           | —
Deferred revenue                                | (17)            | (40)
Employee benefit contributions                  | (6)             | (4)
Accumulated other comprehensive income          | —               | (6)
Partnership interest                            | —               | (2)
Other                                           | (10)            | (14)
Total deferred tax liabilities                  | (475)           | (392)
Net deferred tax liabilities                    | $(184)          | $(170)

Deferred income taxes recorded differences assets liabilities.
 January 3, 2020 Company state net losses $77 million tax credits $7 million. 2020 utilize $24 million $7 million. foreign net losses $44 million expire. utilize $9 million.
 valuation allowance deferred tax assets $20 million $28 million January 3, 2020 December 28, 2018. decreased $8 million due sale commercial cybersecurity business offset increase foreign withholding taxes.
 January 3 2020 December 28, 2018
 Operating lease liabilities
 Accrued vacation bonuses
 Reserves
 Deferred compensation
 Credits net operating losses carryovers
 Vesting stock awards
 Accumulated loss
 Deferred rent tenant allowances
 Investments
 Deferred gain
 Total deferred tax assets 311
 Valuation allowance
 Purchased intangible assets
 Operating lease right-of-use assets
Deferred revenue (17)
 Employee benefit contributions (6)
 income
 Partnership interest
 deferred tax liabilities (475) (392)
 Net tax


Note 10 – Income taxes
The provision (benefit) for income taxes consists of the following:

                                     | For the Years Ended December 31, |
------------------------------------ | -------------------------------- | -------
                                     | 2019                             | 2018
Current:                             |                                  |
Federal                              | $ (27)                           | $ (13 )
State and local                      | 276                              | 249
Total current                        | 249                              | 236
Deferred                             | 533                              | (461)
Provision (benefit) for income taxes | $ 782                            | $ (225)

10 Income taxes
 Years Ended December 31,
 2019 2018
 Federal $ (27) (13
 State local 276 249
 236
 Deferred 533 (461)
 Provision $ 782 (225)


Equity, liabilities and net debt in the consolidated financial statements
Equity amounts to €2,735 million (30/9/2018: €3,074 million), while liabilities amounts to €11,762 million (30/9/2018: €12,132 million). Net debt related to continuing operations decreased by €0.2 billion in the adjusted year-on-year comparison and amounted to €2.9 billion as of 30 September 2019 (30/09/2018: €3.1 billion).
1 Adjustment of previous year according to explanation in notes
2 Shown in the balance sheet under other financial assets (current).
3 Adjusted for the effects of discontinued operations.

€ million                                    | 30/9/2018 1 | 30/9/2018 adjusted3 | 30/9/2019
-------------------------------------------- | ----------- | ------------------- | ---------
Equity                                       | 3,074       | 3,074               | 2,735
Liabilities                                  | 12,132      | 12,132              | 11,762
Net debt                                     | 2,710       | 3,102               | 2,858
Financial liabilities (incl. finance leases) | 4,010       | 4,010               | 3,369
Cash and cash equivalents                    | 1,298       | 906                 | 500
Short-term financial investments2            | 2           | 2                   | 11

Equity liabilities net debt consolidated financial statements
 Equity €2,735 million (30/9/2018 €3,074 liabilities €11,762 million €12,132 million. Net debt operations decreased €0. 2 billion €2. 9 billion 30 September 2019 €3. 1 billion.
 Adjustment previous year
 financial assets.
 Adjusted discontinued operations.
 Equity
 Liabilities 12,132
 Net debt
 Financial liabilities. finance leases 4,010
 Cash equivalents 1,298
 Short-term financial


(c) Additional Segment Information
The majority of our assets as of July 27, 2019 and July 28, 2018 were attributable to our U.S. operations. In fiscal 2019, 2018, and 2017, no single customer accounted for 10% or more of revenue.
Property and equipment information is based on the physical location of the assets. The following table presents property and equipment information for geographic areas (in millions):

                             | July 27, 2019 | July 28, 2018 | July 29, 2017
---------------------------- | ------------- | ------------- | -------------
Property and equipment, net: |               |               |
United States                | $2,266        | $2,487        | $2,711
International                | 523           | 519           | 611
Total                        | $2,789        | $3,006        | $3,322

Additional Segment
 majority assets July 27, 2019 28, 2018. operations. 2019 2017 no customer 10% revenue.
 Property equipment physical location. table geographic areas
 July 27, 2019 28, 2018 29, 2017
 United States $2,266 $2,487 $2,711
 International
 $2,789 $3 $3


NOTE 2. RIGHT-OF-USE ASSETS
The Company leases many assets, including land, buildings, houses, motor vehicles, machinery and equipment. Leases typically run up to a period of 5 years, some with an option to renew the lease after the end of the non-cancelable period. Lease payments are renegotiated on a periodic basis; timing is depending on the region and type of lease. The Company has not entered into any sub-lease arrangements.
Right-of-use assets

                                            | Land and buildings | Motor vehicles | Other machinery and equipment | Total
------------------------------------------- | ------------------ | -------------- | ----------------------------- | -------
Balance January 1, 2019                     | 23,579             | 1,488          | 620                           | 25,687
Additions                                   | 6,475              | 1,588          | 16                            | 8,079
Transfer from property, plant and equipment | 459                | –              | –                             | 459
Modifications and reassessments             | 75                 | 31             | (24)                          | 82
Retirements                                 | –                  | –              | –                             | –
Depreciation for the year                   | (6,057)            | (1,008)        | (268)                         | (7,333)
Foreign currency translation effect         | 518                | 43             | 12                            | 573
Balance December 31, 2019                   | 25,049             | 2,142          | 356                           | 27,547

.-USE
 Company leases land buildings houses vehicles machinery equipment. Leases 5 years option. payments region type. sub-lease arrangements.
-use assets
 Land buildings Motor vehicles machinery equipment
 Balance January 1 2019 23,579 1,488 25,687
 Additions 6,475 1,588 8,079
 Transfer property equipment 459
 Modifications reassessments 75
 Retirements
 Depreciation (6,057) (1,008) (268) (7,333
 Foreign currency translation effect 518
 Balance December 31, 2019 25,049  2,142 356 27,547


EXECUTIVE OFFICERS OF THE REGISTRANT
Executive officers of our Company are appointed by the Board of Directors and serve at the discretion of the Board. The following table sets forth certain information with respect to all executive officers of our Company.
CHRISTOPHER H. ATAYAN has served in various senior executive positions with the Company since March 2006, including his service as Chairman of the Board since January 2008 and Chief Executive Officer since October 2006, and has been a director of the Company since 2004. Mr. Atayan has served as the Senior Managing Director of Slusser Associates, a private equity and investment banking firm, since 1988, and has been engaged in private equity and investment banking since 1982. He also serves on the Board of Eastek Holdings, LLC, a manufacturing company.
ANDREW C. PLUMMER has served as our President and Chief Operating Officer since October 2018, as our Chief Financial Officer since January 2007, and as our Secretary from January 2007 to October 2018. From 2004 to 2007, Mr. Plummer served our company in various roles including Acting Chief Financial Officer, Corporate Controller, and Manager of SEC Compliance. Prior to joining our company in 2004, Mr. Plummer practiced public accounting, primarily with the accounting firm Deloitte and Touche, LLP (now Deloitte).
CHARLES J. SCHMADERER has served as the Company’s Vice President and Corporate Controller since April 2018 and as Secretary since October 2018. From 2006 to 2018, Mr. Schmaderer served the Company in various roles including as the Vice President of Financial Reporting and Assistant Secretary, and as the Director of Financial and SEC Reporting. Prior to joining AMCON in 2006, Mr. Schmaderer practiced public accounting, primarily with the accounting firm Grant Thornton, LLP and also holds a Master of Business Administration (MBA).

Name                  | Age | Position
--------------------- | --- | --------------------------------------------------------
Christopher H. Atayan | 59  | Chairman of the Board, Chief Executive Officer, Director
Andrew C. Plummer     | 45  | President, Chief Financial Officer, Director
Charles J. Schmaderer | 50  | Vice President, Corporate Controller, Secretary

EXECUTIVE OFFICERS
 Board Directors. officers.
 CHRISTOPHER H. ATAYAN senior executive positions since March 2006, Chairman January 2008 Chief Executive Officer October 2006, director since 2004. Senior Managing Director Slusser since 1988 since 1982. Board Eastek Holdings manufacturing company.
 ANDREW C. PLUMMER President Chief Operating Officer since October 2018 Chief Financial Officer January 2007, Secretary January 2007 October 2018. Acting Chief Financial Officer Corporate Controller Manager SEC Compliance. Deloitte Touche.
 CHARLES J. SCHMADERER Vice President Corporate Controller since April 2018 Secretary since October 2018. 2006. Vice President Financial Reporting Assistant Secretary Director Financial SEC Reporting. accounting Grant Thornton Master of Business Administration (MBA).
 Christopher H. Atayan 59 Chairman Board Chief Executive Officer Director
 Andrew. Plummer Chief Financial
 Charles. Schmaderer 50 Vice President Corporate Controller Secretary


Accounts Receivable
The following is a summary of Accounts receivable (in thousands):

                                | June 30,
2019 | June 30,
2018
------------------------------- | ------------- | -------------
Accounts receivable             | $201,365      | $225,167
Allowance for doubtful accounts | (1,054)       | (1,478)
Allowance for product returns   | (25,897)      | (11,266)
Accounts receivable, net        | $174,414      | $212,423

 summary
 30
 2019
 2018
 $201,365 $225,167
 doubtful accounts (1,054)
 product returns (25,897) (11,266)
 $174,414 $212,423


Financial position and cash flow
Capital expenditure and cash flow
Net operating cash inflow was $4,709,000, which was $4,081,000 lower than last year. The reduction in operating revenue was offset by lower operational costs. However, net cash was impacted by the increase in trail to upfront revenue mix. In addition, as a result of the loss position reported for FY18, the Group received a net tax refund of $2,327,000 during the year, compared to the prior year net tax paid of $172,000.
Net investing cash outflows for the year was $12,337,000. The $7,755,000 decrease in spend in investing activities relates to the Group’s controlling interest acquisition of iMoney in December 2017.
Net financing cash outflows for the 2019 year totalled $3,471,000. This included $2,839,000 lease payments and $497,000 interest expense related to leases. The material decrease against the prior year comparative period relates to $32,918,000 paid in share buy-backs and dividends in the prior period.

CASH FLOW SUMMARY                             | 2019 $’000 | 2018 $’000 RESTATED | CHANGE
--------------------------------------------- | ---------- | ------------------- | ------
Net cash provided  from operating  activities | 4,709      | 8,790               | 46%
Net cash used in  investing activities        | (12,337)   | (20,092)            | (39%)
Net cash used in financing activities         | (3,471)    | (36,014)            | (90%)
Net change in cash and cash equivalent        | (11,099)   | (47,316)            | (77%)

Financial position cash flow
 Capital
 operating cash inflow $4,709,000 $4,081,000 lower last. reduction offset lower costs. cash impacted trail upfront revenue. loss received tax refund $2,327,000 prior $172,000.
 investing cash $12,337,000. $7,755,000 decrease acquisition iMoney 2017.
 financing cash outflows $3,471,000. $2,839,000 lease payments $497,000 interest. decrease $32,918,000 share buy-backs dividends.
 CASH FLOW SUMMARY 2019 2018
 operating 4,709 46%
 investing (12,337 (39%
 financing (3,471) (36,014) (90%
 (11,099) (47,316) (77%


Interest expense includes the following (in millions):
The remaining period over which the unamortized debt discount will be recognized as non-cash interest expense is 7.88 years, 5.88 years, and 17.88 years for the 2017 Senior Convertible Debt, 2015 Senior Convertible Debt and 2017 Junior Convertible Debt, respectively.
In November 2017, the Company called for redemption $14.6 million in principal value of the remaining outstanding 2007 Junior Subordinated Convertible Debt (2007 Junior Convertible Debt) with an effective redemption date of December 15, 2017 for which substantially all holders submitted requests to convert. Prior to the call, conversion requests were received in both the second and third quarters of fiscal 2018. Total conversions for fiscal 2018 were for a principal amount of $32.5 million for which the Company settled the principal amount in cash and issued 0.5 million shares of its common stock in respect of the conversion value in excess of the principal amount for the conversions occurring prior to the redemption notice and $41.0  of redemption. A loss on total conversions was recorded for $2.2 million.
In June 2017, the Company exchanged, in privately negotiated transactions, $111.3 million aggregate principal amount of its 2007 Junior Convertible Debt for (i) $111.3 million principal amount of 2017 Junior Convertible Debt with a market value of $119.3 million plus (ii) the issuance of 3.2 million shares of the Company's common stock with a value of $254.6 million, of which $56.3 million was allocated to the fair value of the liability and $321.1 million was allocated to the reacquisition of the equity component for total consideration of $374.0 million. The transaction resulted in a loss on settlement of the 2007 Junior Convertible Debt of approximately $13.8 million, which represented the difference between the fair value of the liability component at time of repurchase and the sum of the carrying values of the debt component and any unamortized debt issuance costs. The debt discount on the new 2017 Junior Convertible Debt was the difference between the par value and the fair value of the debt resulting in a debt discount of $55.1 million which will be amortized to interest expense using the effective interest method over the term of the debt.
In February 2017, the Company issued the 2017 Senior Convertible Debt and 2017 Junior Convertible Debt for net proceeds of $2.04 billion and $567.7 million, respectively. In connection with the issuance of these instruments, the Company incurred issuance costs of $33.7 million, of which $17.8 million and $3.4 million was recorded as convertible debt issuance costs related to the 2017 Senior Convertible Debt and 2017 Junior Convertible Debt, respectively, and will be amortized using the effective interest method over the term of the debt. The balance of $12.5 million in fees was recorded to equity. Interest on both instruments is payable semi-annually on February 15 and August 15 of each year.
In February 2015, the Company issued the 2015 Senior Convertible Debt for net proceeds of approximately $1.69 billion. In connection with the issuance, the Company incurred issuance costs of $30.3 million, of which $20.4 million was recorded as debt issuance costs and will be amortized using the effective interest method over the term of the debt. The balance of $9.9 million was recorded to equity.
The Company utilized the proceeds from the issuances of the 2017 Senior Convertible Debt, 2017 Junior Convertible Debt, and 2015 Senior Convertible Debt to reduce amounts borrowed under its Credit Facility and to settle a portion of the 2007 Junior Convertible Debt in privately negotiated transactions. In February 2017 and February 2015, the Company settled $431.3 million and $575.0 million, respectively, in aggregate principal of its 2007 Junior Convertible Debt. The February 2015 repurchase consisted solely of cash. In February 2017, the Company used cash of $431.3 million and an aggregate of 12.0 million in shares of the Company's common stock valued at $862.7 million for total consideration of $1.29 billion to repurchase $431.3 million of the 2007 Junior Convertible Debt, of which $188.0 million was allocated to the liability component and $1.11 billion was allocated to the equity component. In addition, in February 2017, there was an inducement fee of $5.0 million which was recorded in the consolidated statements of income in loss on settlement of debt. The consideration transferred in February 2015 was $1.13 billion, of which $238.3 million was allocated to the liability component and $896.3 million was allocated to the equity component. In the case of both settlements of the 2007 Junior Convertible Debt, the consideration was allocated to the liability and equity components using the equivalent rate that reflected the borrowing rate for a similar nonconvertible debt prior to the retirement. The transactions resulted in a loss on settlement of debt of approximately $43.9 million and $50.6 million in fiscal 2017 and fiscal 2015, respectively, which represented, in each case, the difference between the fair value of the liability component at time of repurchase and the sum of the carrying values of the debt component and any unamortized debt issuance costs.

                                                      |        | Year Ended March 31, |
----------------------------------------------------- | ------ | -------------------- | ------
                                                      | 2019   | 2018                 | 2017
Debt issuance amortization                            | $12.9  | $3.1                 | $2.4
Debt discount amortization                            | 2.2    | —                    | —
Interest expense                                      | 291.8  | 6.6                  | 40.4
Total interest expense on Senior Secured Indebtedness | 306.9  | 9.7                  | 42.8
Debt issuance amortization                            | 3.6    | 3.5                  | 2.1
Debt discount amortization                            | 112.4  | 106.1                | 56.1
Coupon interest expense                               | 77.1   | 77.3                 | 44.5
Total interest expense on Convertible Debt            | 193.1  | 186.9                | 102.7
Other interest expense                                | 2.9    | 2.4                  | 0.8
Total interest expense                                | $502.9 | $199.0               | $146.3

Interest expense includes
 unamortized debt discount non-cash 7. 5. 17. 2017 2015 2017 Junior Debt.
 November 2017 Company called redemption $14. 6 million 2007 Junior Convertible Debt effective redemption date December 15, 2017 holders. conversion requests received second third quarters fiscal 2018. conversions $32. 5 million settled cash issued 0. 5 million shares common stock. loss conversions $2. 2 million.
 June 2017 Company exchanged $111. 3 million 2007 Junior Convertible Debt $111. 3 million 2017 $119. 3 million 3. 2 million shares common stock $254. 6 million $56. 3 million fair value liability $321. 1 million reacquisition equity $374. 0 million. loss settlement 2007 Debt $13. 8 million difference fair value liability carrying values debt unamortized debt issuance costs.debt discount 2017 Junior Convertible Debt par value fair value discount $55. 1 million amortized interest.
 February 2017 issued 2017 Senior net proceeds $2. 04 billion $567. 7 million. incurred costs $33. 7 million $17. 8 million $3. 4 million amortized interest. balance $12. 5 million fees recorded equity. Interest payable semi-annually February 15 August 15.
 February 2015, issued 2015 Senior Convertible Debt proceeds $1. 69 billion. incurred costs $30. 3 million $20. 4 million amortized interest. balance $9. 9 million equity.
 utilized proceeds 2017 Credit Facility 2007 Junior Convertible Debt. February 2017 2015, settled $431. 3 million $575. 0 million 2007 Junior Convertible Debt. February 2015 repurchase cash. 2017 used cash $431. 3 million 12. 0 million shares common stock $862. 7 million total $1.29 billion repurchase $431. 3 million 2007 Junior Convertible Debt $188. million liability $1. 11 billion equity. February 2017 inducement fee $5. million recorded statements loss settlement debt. consideration transferred February 2015 $1. 13 billion $238. 3 million liability $896. 3 million equity. settlements 2007 Junior Convertible Debt allocated liability equity equivalent rate borrowing rate nonconvertible debt retirement. transactions loss settlement $43. 9 million $50. 6 million 2017 2015, difference fair value liability repurchase carrying values debt unamortized debt issuance costs.
 March 31,
 amortization $12. $3. $2.
.
 291. 6. 40.
 Senior Secured Indebtedness 306. 42.
 3.
 112. 106. 56.
 77. 44.
 Convertible Debt 193. 186. 102.
expense 2. 9. 4.
 $502. $199. $146.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
NOTE 9 — Accrued Expenses and Other Liabilities
The components of accrued expenses and other liabilities are as follows:

                                             | As of December 31, |
-------------------------------------------- | ------------------ | -------
                                             | 2019               | 2018
Accrued product-related costs                | $4,464             | $4,377
Accrued income taxes                         | 7,903              | 6,914
Accrued property and other taxes             | 1,574              | 1,976
Accrued professional fees                    | 1,599              | 3,350
Contract liabilities                         | 2,877              | 1,981
Dividends payable                            | 1,299              | 1,310
Remediation reserves                         | 11,444             | 11,274
Other accrued liabilities                    | 5,218              | 6,165
Total accrued expenses and other liabilities | $36,378            | $37,347

FINANCIAL STATEMENTS
 9 Accrued Expenses Liabilities
 December
 product costs $4,464 $4,377
 income taxes
 property taxes 1,574 1,976
 professional fees 1,599 3,350
 Contract liabilities 2,877 1,981
 Dividends 1,299 1,310
 Remediation reserves 11,444,274
 liabilities 5,218 6,165
 $36,378 $37,347


Restricted Share Units
The following table illustrates the number and WASP on date of award, and movements in, restricted share units (“RSUs”) and cash-based awards granted under the 2015 LTIP:
RSUs and cash-based awards have a vesting period between two to five years, with no award vesting within the first 12 months of the grant.

                                     | Year-ended 31 March 2019 |         | Year-ended 31 March 2018 |
------------------------------------ | ------------------------ | ------- | ------------------------ | -------
                                     | Number                   | WASP    | Number                   | WASP
Restricted share units               | 000’s                    | £ pence | 000’s                    | £ pence
Outstanding at the start of the year | 14,840                   | 316.09  | 15,350                   | 215.92
Awarded                              | 8,749                    | 478.44  | 6,337                    | 453.14
Forfeited                            | (1,421)                  | 426.11  | (1,421)                  | 284.15
Released                             | (6,822)                  | 309.77  | (5,426)                  | 218.49
Outstanding at the end of the year   | 15,346                   | 401.27  | 14,840                   | 316.09

Restricted Share Units
 table illustrates WASP award restricted units cash-based awards 2015 LTIP
 vesting period two five years no vesting first 12 months.
 Year-ended 31 March 2019 31 March 2018
 Restricted share units
 Outstanding 14,840 316. 15 215. 92
 Awarded 8,749 478. 6,337 453.
 Forfeited (1,421) 426. 284.
 Released (6,822) 309.,426 218.
 end 15,346 401. 14,840 316.


2019 Annual LTI Grants. Except for Messrs. Dev, Trezise and Andrews, the Committee granted annual LTI
awards to our named executives in February 2019 at amounts substantially similar to the awards granted to
them in 2018. Mr. Dev’s 2019 LTI target was increased to $2,700,000, as previously approved by the Committee
upon his promotion to CFO in November 2018. Mr. Andrews’ 2019 LTI target was increased to $750,000, as
previously approved by the Committee following a review of compensation benchmarking in November 2018. In
February 2019, the Committee reviewed the compensation benchmarking data for all executive officers and
increased Mr. Trezise’s LTI target to $800,000 and left unchanged the LTI target for our other NEOs.
On February 28, 2019, the Committee granted our named executives the following number of (i) restricted shares or RSUs that will vest over a three-year period principally in exchange for continued service (“time-vested restricted shares or RSUs”), (ii) performance-based restricted shares or RSUs that will vest in two equal installments on March 1 of each of 2021 and 2022 based on attainment during the 2019 Performance Period, as defined above, of an Adjusted EBITDA Run Rate target of 0.0% (the “Performance-Vested Shares or RSUs”), as described further above:
(1) Represents the number of restricted shares or RSUs granted in 2019.
(2) As discussed further above, the actual number of shares that vest in the future may be lower or higher, depending on the level of performance achieved.
(3) Dividends on the shares of restricted stock (or, with respect to RSUs, dividend equivalents) will not be paid while unvested, but will accrue and paid or be forfeited in tandem with the vesting of the related shares or RSUs.
(4) For purposes of these grants, we determined both the number of time-vested and performance-based restricted shares or RSUs by dividing the total grant value granted to the executive by the volume-weighted average closing price of a share of our common stock over the 15-trading-day period ending five trading days prior to the grant date (“VWAP”), rounding to the nearest whole share. However, as noted previously, for purposes of reporting these awards in the Summary Compensation Table, our shares of time-vested restricted stock or RSUs are valued based on the closing price of our common stock on the date of grant and our shares of performance-based restricted stock or RSUs are valued as of the grant date based on probable outcomes, as required by applicable accounting and SEC disclosure rules. See footnote 2 to the Summary Compensation Table for more information.
(5) Mr. Storey’s annual grant was in the form of RSUs.

                     |                                       | 2019 Annual LTI Grants |                                             |                |
-------------------- | ------------------------------------- | ---------------------- | ------------------------------------------- | -------------- | --------------------
                     | Time-vested Restricted Shares or RSUs |                        | Performance-based Restricted Shares or RSUs |                |
Named Officer        | No. of Shares(1)(3)                   | Grant Value(1)         | No. of Shares(2)(3)                         | Grant Value(4) | Total Grant Value(4)
Current Executives:  |                                       |                        |                                             |                |
Jeffrey K. Storey(5) | 358,884                               | $5,040,000             | 538,328                                     | $7,560,000     | $12,600,000
Indraneel Dev        | 76,904                                | 1,080,000              | 115,356                                     | 1,620,000      | 2,700,000
Stacey W. Goff       | 56,966                                | 800,000                | 85,449                                      | 1,200,000      | 2,000,000
Scott A. Trezise     | 22,786                                | 320,000                | 34,180                                      | 480,000        | 800,000
Shaun. C. Andrews    | 21,362                                | 300,000                | 32,043                                      | 450,000        | 750,000

2019 Annual LTI Grants. Dev Trezise Andrews Committee granted annual LTI
 awards executives February 2019 similar
 2018. Dev’s 2019 LTI target increased $2,700,000
 CFO November 2018. Andrews’ 2019 LTI target increased $750,000
 2018.
 February 2019 Committee reviewed
 increased. Trezise’s LTI target to $800,000 unchanged other NEOs.
 February 28, 2019 Committee granted executives restricted shares RSUs three-year period service performance-based restricted shares two installments March 1 2021 2022 2019 Performance Period Adjusted EBITDA Run Rate target 0. 0% “Performance-Vested Shares
 Represents shares granted 2019.
 shares future may lower or higher performance.
 Dividends shares not paid unvested accrue with vesting shares RSUs.
determined time-vested performance-based shares grant value by volume-weighted average closing price common stock 15-trading-day period grant nearest share. time-vested valued closing price performance-based probable outcomes accounting SEC disclosure rules. footnote 2 Summary Compensation Table.
. Storey’s annual grant RSUs.
 2019 Annual LTI Grants
 Time-vested Performance-based Restricted Shares
. Grant.
 Current Executives
 Jeffrey K. Storey(5) 358,884  $5,040,000 538,328  $7,560,000 $12,600,000
 Indraneel Dev 76,904  1,080,000 115,356  1,620,000 2,700,000
 Stacey W. Goff 56,966  800,000 85,449 1,200,000 2,000,000
 Scott A. Trezise 22,786 320,000 34,180 480,000 800,000
 Shaun. C.32,043 450,000 750,000


AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in millions, unless otherwise disclosed)
23. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
Selected quarterly financial data for the years ended December 31, 2019 and 2018 is as follows (in millions, except per share data):
(1) Represents Operating expenses, exclusive of Depreciation, amortization and accretion, Selling, general, administrative and development expense, and Other operating expenses.

                                                                                |           | Three Months Ended |               |              |
------------------------------------------------------------------------------------------- | --------- | ------------------ | ------------- | ------------ | ------------------------
                                                                                | March 31, | June 30,           | September 30, | December 31, | Year Ended, December 31,
2019:                                                                                |           |                    |               |              |
Operating revenues                                                                          | $1,813.4  | $1,889.6           | $1,953.6      | $1,923.7     | $7,580.3
Costs of operations (1)                                                                     | 543.4     | 563.3              | 559.9         | 550.2        | 2,216.8
Operating income                                                                            | 614.9     | 683.9              | 728.3         | 661.3        | 2,688.4
Net income                                                                                | 407.6     | 434.3              | 505.3         | 569.4        | 1,916.6
Net income attributable to American Tower Corporation stockholders                          | 397.4     | 429.1              | 498.6         | 562.7        | 1,887.8
Net income attributable to American Tower Corporation common stockholders                   | 397.4     | 429.1              | 498.6         | 562.7        | 1,887.8
Basic net income per share attributable to American Tower Corporation common stockholders   | 0.90      | 0.97               | 1.13          | 1.27         | 4.27
Diluted net income per share attributable to American Tower Corporation common stockholders | 0.89      | 0.96               | 1.12          | 1.26         | 4.24

AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
. QUARTERLY FINANCIAL DATA
 data December 31, 2019 2018 millions
 Operating expenses Depreciation amortization accretion Selling administrative development expense Other operating expenses.
 Three Months
 March June September December
 2019
 Operating revenues $1,813. $1,889. $1,953. $1,923. $7,580.
 Costs operations 543. 563. 559. 550. 2,216.
 Operating income 614. 683. 728. 661. 2,688.
 Net income 407. 434. 505. 569. 1,916.
 income American Tower Corporation 397. 429. 498. 562. 1,887.
 397. 429. 498. 562. 1,887.
 net income share. 4.
income share American Tower Corporation. 89. 96. 12. 26.


The following table presents a rollforward of our restructuring liability as of September 30, 2019, which is included within accrued compensation and other current liabilities within our Consolidated Balance Sheet, (in millions):
Certain restructuring costs are based upon estimates. Actual amounts paid may ultimately differ from these estimates. If additional costs are incurred or recognized amounts exceed costs, such changes in estimates will be recognized when incurred.

                                 | Restructuring Liability Employee Separation and other | Restructuring Liability Consulting Costs
-------------------------------- | ----------------------------------------------------- | ----------------------------------------
Balance as of October 1, 2017    | $ 1.0                                                 | $  —
Accrued costs                    | 4.2                                                   | 0.8
Cash payments                    | (4.6)                                                 | (0.5)
Balance as of September 30, 2018 | $  0.6                                                | $  0.3
Accrued costs                    | 7.5                                                   | 7.9
Cash payments                    | (6.1)                                                 | (7.4)
Balance as of September 30, 2019 | $  2.0                                                | $  0.8

table restructuring liability September 30, 2019 included accrued compensation liabilities Consolidated Balance Sheet
 restructuring costs based estimates. amounts differ estimates. additional costs incurred changes estimates recognized.
 Liability Employee Separation Consulting Costs
 Balance October 1, 2017 $ 1.
 Accrued costs.
 Cash payments.
 Balance September 30, 2018 $.
 Accrued costs 7.
 payments.
 Balance September 30, 2019.


Long-term Incentive Program Performance Share Awards
During the year ended December 31, 2017, pursuant to the Company’s 2016 Incentive Plan, the Company granted long-term incentive program performance share awards (“LTIP performance shares”). These LTIP performance shares are earned, if at all, based upon the achievement, over a specified period that must not be less than one year and is typically a three-year performance period, of performance goals related to (i) the compound annual growth over the performance period in the sales for the Company as determined by the Company, and (ii) the cumulative operating income or EBITDA over the performance period as determined by the Company. Up to 200% of the LTIP performance shares may be earned upon achievement of performance goals equal to or exceeding the maximum target levels for the performance goals over the performance period. On a quarterly basis, management
A summary of the nonvested LTIP performance shares is as follows:
During the year ended December 31, 2019, the Company revised the expected attainment rates for outstanding LTIP performance shares due to changes in forecasted sales and operating income, resulting in additional stock-based compensation expense of approximately $3.7 million.

                               | Number of Shares at Expected Attainment | Weighted Average Grant Date Fair Value
------------------------------ | --------------------------------------- | --------------------------------------
Nonvested at December 31, 2018 | 540,697                                 | $19.83
Forfeited                      | -56,567                                 | 18.80
Change in expected attainment  | 185,339                                 | 20.09
Nonvested at December 31, 2019 | 669,469                                 | $20.12

Long-term Incentive Program Performance Share Awards
 December 31, 2017 granted long-term incentive performance awards. earned not one year three-year goals compound annual growth sales cumulative operating income EBITDA. 200% LTIP shares earned performance goals maximum target levels. quarterly
 summary nonvested LTIP performance shares
 December 31, 2019 revised expected attainment rates LTIP shares changes sales operating income additional stock-based compensation expense $3. 7 million.
 Shares Expected Attainment Weighted Average Grant Date Value
 Nonvested December 31, 2018 540,697 $19.
 Forfeited -56,567.
 attainment 185,339.
 Nonvested December 31, 2019,469 $20.