Dividends
The following is a summary of our fiscal 2019, 2018 and 2017 activities related to dividends on our common stock (in millions, except per share amounts).
On May 22, 2019, we declared a cash dividend of $0.48 per share of common stock, payable on July 24, 2019 to shareholders of record as of the close of business on July 5, 2019. The timing and amount of future dividends will depend on market conditions, corporate business and financial considerations and regulatory requirements. All dividends declared have been determined by the Company to be legally authorized under the laws of the state in which we are incorporated.

                                                                       |                | Year Ended     |
---------------------------------------------------------------------- | -------------- | -------------- | --------------
                                                                       | April 26, 2019 | April 27, 2018 | April 28, 2017
Dividends per share declared                                           | $ 1.60         | $ 0.80         | $ 0.76
Dividend payments allocated to additional paid-in capital              | $ 403          | $ 106          | $ 88
Dividend payments allocated to retained earnings (accumulated deficit) | $ —            | $ 108          | $ 120

 summary fiscal 2019 2018 2017 activities dividends common stock.
 May 22, 2019 declared cash dividend $0. 48 share payable July 24 2019 shareholders business July 5. future dividends market conditions corporate business financial regulatory requirements. dividends authorized laws state.
 April 26, 2019 27, 2018 28, 2017
 Dividends share declared $ 1. 60 $.
 Dividend additional paid capital $ 403 $ 106
 retained earnings deficit


8. Deferred Revenue
Deferred revenue consisted of the following:

                      | December 31, |
--------------------- | ------------ | --------
                      | 2019         | 2018
Current:              |              |
Domains               | $752.7       | $686.3
Hosting and presence  | 526.7        | 483.3
Business applications | 265.0        | 224.1
                      | $1,544.4     | $1,393.7
Noncurrent:           |              |
Domains               | $382.2       | $365.8
Hosting and presence  | 187.2        | 180.6
Business applications | 85.0         | 77.4
                      | $ 654.4      | $623.8

. Deferred Revenue
 December 31,
 2019
 Domains $752. $686.
 Hosting 526. 483.
 265. 224.
 $1,544. $1,393.
 Noncurrent
 Domains $382. $365.
 Hosting 187. 180.
 applications 85. 77.
 654. $623.


A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows:
Included in the total unrecognized tax benefits at December 31, 2019, 2018 and 2017 is $2.4 billion, $2.3 billion and $1.9 billion, respectively, that if recognized, would favorably affect the effective income tax rate.

                                                             |         |         | (dollars in millions)
------------------------------------------------------------ | ------- | ------- | ---------------------
                                                             | 2019    | 2018    | 2017
Balance at January 1,                                        | $ 2,871 | $2,355  | $ 1,902
Additions based on tax positions related to the current year | 149     | 160     | 219
Additions for tax positions of prior years                   | 297     | 699     | 756
Reductions for tax positions of prior years                  | (300)   | (248)   | (419)
Settlements                                                  | (58)    | (40)    | (42)
Lapses of statutes of limitations                            | (89)    | (55)    | (61)
Balance at December 31,                                      | $ 2,870 | $ 2,871 | $ 2,355

reconciliation unrecognized tax benefits
 benefits December 31, 2019 2018 2017 $2. 4 billion $2. 3 billion $1. 9 billion income tax rate.
 2018 2017
 Balance January 1 $ 2,871 $2,355 $ 1,902
 Additions tax positions
 Additions 699 756
 Reductions (300) (248) (419)
 Settlements (58)
 Lapses statutes limitations
 Balance December 31, $ 2,870 $ 2,355


(23) Dividends
Our Board of Directors declared the following dividends payable in 2019 and 2018:
The declaration of dividends is solely at the discretion of our Board of Directors, which may change or terminate our dividend practice at any time for any reason without prior notice. On February 27, 2020, our Board of Directors declared a quarterly cash dividend of $0.25 per share.

Date Declared     | Record Date | Dividend per Share | Total Amount  | Payment Date
----------------- | ----------- | ------------------ | ------------- | ------------
                  |             |                    | (in millions) |
November 21, 2019 | 12/2/2019   | $0.250             | $273          | 12/13/2019
August 22, 2019   | 9/2/2019    | 0.250              | 273           | 9/13/2019
May 23, 2019      | 6/3/2019    | 0.250              | 274           | 6/14/2019
March 1, 2019     | 3/12/2019   | 0.250              | 273           | 3/22/2019
November 14, 2018 | 11/26/2018  | 0.540              | 586           | 12/7/2018
August 21, 2018   | 8/31/2018   | 0.540              | 584           | 9/14/2018
May 23, 2018      | 6/4/2018    | 0.540              | 588           | 6/15/2018
February 21, 2018 | 3/5/2018    | 0.540              | 586           | 3/16/2018

Dividends
 Board Directors declared dividends 2019 2018:
 discretion change terminate dividend practice. February 27, 2020 declared quarterly cash dividend $0. 25 per share.
 Date Declared Record Date Dividend Share Total Amount Payment Date
 millions
 November 21, 2019 12/2. 250 $273
 August 22,. 273
 May 23, 6/3/2019. 274
 March 1, 3/12/2019. 273 3/22
 November 14 11/26/2018.
 August 21, 8. 584
 May 23, 6/4/2018. 588
 February 21, 3/5/2018. 586


Netsmart Discontinued Operation
On December 31, 2018, we sold all of the Class A Common Units of Netsmart held by the Company in exchange for $566.6 million in cash plus a final settlement as determined following the closing.
Prior to the sale, Netsmart comprised a separate reportable segment, which due to its significance to our historical consolidated financial statements and results of operations, is reported as a discontinued operation as a result of the sale. Refer to Note 4, “Business Combinations and Other Investments” for additional information about this transaction.
The following table summarizes Netsmart’s major income and expense line items as reported in the consolidated statements of operations for the years ended December 31, 2018 and 2017:
(1) Activity includes both Netsmart and intercompany transactions that would not have been eliminated if Netsmart’s results were not consolidated.

                                                                    | Year ended December 31, |
------------------------------------------------------------------- | ----------------------- | --------
(In thousands)                                                      | 2018                    | 2017
Major income and expense line items related to Netsmart:            |                         |
Revenue:                                                            |                         |
Software delivery, support and maintenance                          | $214,065                | $198,204
Client services                                                     | 131,166                 | 110,430
Total revenue                                                       | 345,231                 | 308,634
Cost of revenue:                                                    |                         |
Software delivery, support and maintenance                          | 60,100                  | 51,079
Client services                                                     | 94,061                  | 78,317
Amortization of software development and acquisition related assets | 34,357                  | 29,876
Total cost of revenue                                               | 188,518                 | 159,272
Gross profit                                                        | 156,713                 | 149,362
Selling, general and administrative expenses                        | 125,807                 | 85,583
Research and development                                            | 25,315                  | 17,937
Amortization of intangible and acquisition-related assets           | 24,029                  | 16,409
Income from discontinued operations of Netsmart                     | (18,438)                | 29,433
Interest expense                                                    | (59,541)                | (49,939)
Other income                                                        | 101                     | 925
Loss from discontinued operations of Netsmart before income taxes   | (77,878)                | (19,581)
Income tax benefit                                                  | 22,933                  | 45,253
(Loss) income from discontinued operations, net of tax for Netsmart | $(54,945)               | $25,672

Netsmart Discontinued
 December 31, 2018 sold Class A Units $566. 6 million cash final settlement.
 separate reportable segment discontinued. Note 4 Combinations.
 table summarizes income expense consolidated statements December 31, 2018 2017:
 Netsmart intercompany transactions.
 income expense Netsmart
 Revenue
 Software delivery support maintenance $214,065 $198,204
 Client services 131,166 110,430
,231 308,634
 Cost revenue
 60,100 51,079
 94,061 78,317
 Amortization assets 34,357 29,876
 188,518 159,272
 Gross profit 156,713 149,362
 Selling administrative expenses 125,807 85,583
 Research development 25,315 17,937
 Amortization intangible acquisition assets 24,029 16,409
 Income discontinued operations Netsmart (18,438 29,433
 Interest expense (59,541) (49,939)
 Other income
Loss Netsmart (77,878) (19,581)
 benefit 22,933 45,253
 $(54,945) $25,672


14. DEFINED BENEFIT PLANS
As a result of the Rofin acquisition, we have assumed all assets and liabilities of Rofin’s defined benefit plans for the Rofin-Sinar Laser, GmbH (‘‘RSL’’) and Rofin-Sinar Inc. (‘‘RS Inc.’’) employees. The U.S. plan began in fiscal 1995 and is partially funded. Any new employees hired after January 1, 2007, are not eligible for the RS Inc. pension plan. As is the customary practice with German companies, the German pension plan is unfunded. Any new employees hired after 2000 are not eligible for the RSL pension plan. The measurement date of these pension plans is September 30. For these pension plans, actuarial gains and losses are deferred into OCI and amortized over future periods.
Effective January 1, 2012, the RS Inc. defined benefit plan was amended to exclude highly compensated employees, as defined by the Internal Revenue Service, from receiving future years of service under the RS Inc. defined benefit plan. A non-qualified defined benefit plan was created to replace the benefits lost by the employees that were otherwise excluded from the qualified defined benefit plan. Effective August 31, 2018 both the RS Inc. plans were amended to freeze all future compensation benefit accruals.
In addition, we have defined benefit plans in South Korea, Japan, Spain and Italy, covering all full-time employees with at least one year of service, and a defined benefit plan in Germany covering two individuals. As is the customary practice with European and Asian companies, the plans are unfunded, with the exception of the Spanish plan which is partially funded. We have elected to recognize all actuarial gains and losses on these plans immediately, as incurred. The measurement date of these defined benefit plans is September 30.
For financial reporting purposes, the calculation of net periodic pension costs is based upon a number of actuarial assumptions including a discount rate for plan obligations, an assumed rate of return on pension assets and an assumed rate of compensation increase for employees covered by the plan. All of these assumptions were based upon management’s judgment, considering all known trends and uncertainties. Actual results that differ from these assumptions would impact future expense recognition and the cash funding requirements of our defined benefit plans.
Components of net periodic cost are as follows for fiscal 2019, 2018 and 2017 (in thousands):

                                                   |        | Fiscal  |
-------------------------------------------------- | ------ | ------- | ------
                                                   | 2019   | 2018    | 2017
Service cost                                       | $1,955 | $2,262  | $2,077
Interest cost                                      | 1,308  | 1,230   | 1,086
Expected return on plan assets                     | (817)  | (787)   | (736)
Recognized net actuarial (gain) loss               | 470    | 240     | (236)
Foreign exchange impacts                           | (79)   | (56)    | (6)
Recognition of curtailment gain due to plan freeze | —      | (1,236) | —
Net periodic pension cost                          | $2,837 | $1,653  | $2,185

. DEFINED BENEFIT PLANS
 Rofin assumed assets liabilities defined benefit plans Rofin-Sinar Laser. employees. U. S. plan began 1995 partially funded. new employees hired after January 1 2007, not eligible RS. pension plan. German pension plan unfunded. employees after 2000 not eligible RSL pension plan. measurement date September 30. gains losses deferred OCI amortized future periods.
 January 1 2012, RS Inc. defined benefit plan amended highly compensated employees future. non-qualified defined benefit plan benefits. August 31, 2018. plans freeze future compensation benefit accruals.
 defined benefit plans South Korea Japan Spain Italy full-time Germany. plans unfunded exception Spanish plan partially funded. actuarial gains losses immediately. measurement date September 30.
 calculation pension costs based actuarial assumptions discount rate obligations return pension assets compensation increase. management’s judgment.future expense cash funding defined benefit plans.
 Components net cost 2019 2018 2017
 Service cost $1,955 $2,262 $2,077
 Interest cost 1,308 1,230 1,086
 Expected return assets (817) (787
 actuarial loss 470
 Foreign exchange impacts (79)
 curtailment gain plan freeze
 pension cost $2,837 $1,653 $2,185


Results of Operations
The following tables set forth selected consolidated statements of operations data and such data as a percentage of total revenues. The historical results presented below are not necessarily indicative of the results that may be expected for any future period (in thousands):

                                          |           | Year ended December 31, |
----------------------------------------- | --------- | ----------------------- | --------
                                          | 2019      | 2018                    | 2017
Revenues                                  |           |                         |
Subscriptions                             | $817,811  | $612,888                | $465,254
Other                                     | 85,047    | 60,736                  | 38,363
Total revenues                            | 902,858   | 673,624                 | 503,617
Cost of revenues                          |           |                         |
Subscriptions                             | 160,320   | 109,454                 | 89,193
Other                                     | 70,723    | 47,675                  | 32,078
Total cost of revenues                    | 231,043   | 157,129                 | 121,271
Gross profit                              | 671,815   | 516,495                 | 382,346
Operating expenses                        |           |                         |
Research and development                  | 136,363   | 101,042                 | 75,148
Sales and marketing                       | 439,100   | 329,116                 | 240,223
General and administrative                | 142,027   | 102,773                 | 72,313
Total operating expenses                  | 717,490   | 532,931                 | 387,684
Loss from operations                      | (45,675)  | (16,436)                | (5,338)
Other income (expense), net               |           |                         |
Interest expense                          | (20,512)  | (16,102)                | (99)
Other income, net                         | 9,247     | 6,475                   | 1,491
Other income (expense), net               | (11,265)  | (9,627)                 | 1,392
Loss before income taxes                  | (56,940)  | (26,063)                | (3,946)
Provision for (benefit from) income taxes | (3,333)   | 140                     | 258
Net loss                                  | $(53,607) | $(26,203)               | $(4,204)

Operations
 tables revenues. historical results not indicative
 December
 Revenues
 Subscriptions $817,811 $612,888 $465,254
 85,047 60,736 38,363
 revenues 902,858,624 503,617
 Cost
 Subscriptions 160,320 109,454 89,193
 70,723 47,675 32,078
 231,043 157,129 121,271
 Gross profit 671,815 516,495 382,346
 Operating expenses
 Research development 136,363 101,042 75,148
 Sales marketing 439,100 329,116 240,223
 General 142,027 102,773 72,313
 operating expenses 717,490 532,931 387,684
 Loss operations (45,675) (16,436 (5,338
 income
 (20,512),102
 Loss taxes (56,940) (26,063) (3,946)
 taxes (3,333
Net loss(53,607,203,204


Information About Executive Officers
Information regarding our executive officers as of February 28, 2020 is as follows:
Michael Hsing has served on our Board of Directors and has served as our President and Chief Executive Officer since founding MPS in August 1997. Prior to founding MPS, Mr. Hsing was a Senior Silicon Technology Developer at several analog IC companies, where he developed and patented key technologies, which set new standards in the power electronics industry. Mr. Hsing is an inventor on numerous patents related to the process development of bipolar mixed-signal semiconductor manufacturing. Mr. Hsing holds a B.S.E.E. from the University of Florida.
Bernie Blegen has served as our Chief Financial Officer since July 2016 and is responsible for finance, accounting, tax, treasury and investor relations. From August 2011 to June 2016, Mr. Blegen served as our Corporate Controller. Prior to joining MPS, Mr. Blegen held a number of executive finance and accounting positions for other publicly traded technology companies, including Xilinx, Inc. and Credence Systems. Mr. Blegen holds a B.A. from the University of California, Santa Barbara.
Deming Xiao has served as our President of Asia Operations since January 2008. Since joining us in May 2001, Mr. Xiao has held several executive positions, including Foundry Manager and Senior Vice President of Operations. Before joining MPS, from June 2000 to May 2001, Mr. Xiao was Engineering Account Manager at Chartered Semiconductor Manufacturing, Inc. Prior to that, Mr. Xiao spent six years as the Manager of Process Integration Engineering at Fairchild Imaging Sensors. Mr. Xiao holds a B.S. in Semiconductor Physics from Sichuan University, Chengdu, China and an M.S.E.E. from Wayne State University.
Maurice Sciammas has served as our Senior Vice President of Worldwide Sales and Marketing since 2007. Mr. Sciammas joined MPS in July 1999 and served as Vice President of Products and Vice President of Sales (excluding greater China) until he was appointed to his current position. Before joining MPS, he was Director of IC Products at Supertex from 1990 to 1999. He has also held positions at Micrel, Inc. He holds a B.S.E.E. degree from San Jose State University.
Saria Tseng has served as our Vice President, General Counsel and Corporate Secretary since 2004 and additionally as our Vice President, Strategic Corporate Development since 2009. Ms. Tseng joined the Company from MaXXan Systems, Inc., where she was Vice President and General Counsel from 2001 to 2004. Previously, Ms. Tseng was an attorney at Gray Cary Ware & Freidenrich, LLP and Jones, Day, Reavis & Pogue. Ms. Tseng is a member of the state bar in both California and New York and is a member of the bar association of the Republic of China (Taiwan). Ms. Tseng currently serves on the Board of Directors of Super Micro Computer, Inc., a global leader in high performance server technology. Ms. Tseng holds Masters of Law degrees from the University of California at Berkeley and the Chinese Culture University in Taipei.

Name             | Age | Position
---------------- | --- | ----------------------------------------------------------------------------------------
Michael Hsing    | 60  | President, Chief Executive Officer and Director
Bernie Blegen    | 62  | Vice President and Chief Financial Officer
Deming Xiao      | 57  | President of Asia Operations
Maurice Sciammas | 60  | Senior Vice President of Worldwide Sales and Marketing
Saria Tseng      | 49  | Vice President, Strategic Corporate Development, General Counsel and Corporate Secretary

Officers
 February 28, 2020
 Michael Hsing Board Directors President Chief Executive Officer since 1997. Senior Silicon Technology Developer IC companies developed patented technologies power electronics. inventor patents bipolar mixed-signal semiconductor manufacturing. B. University of Florida.
 Bernie Blegen Chief Financial Officer since July 2016 finance accounting tax treasury investor relations. 2011 June 2016,. Corporate Controller. executive finance accounting positions Xilinx. Credence Systems. B. University of California Santa Barbara.
 Deming Xiao President Asia Operations since January 2008. executive positions Manager Senior Vice President Operations. Engineering Account Manager Semiconductor Manufacturing. Manager Process Integration Engineering Fairchild Imaging Sensors. B. S. Semiconductor Physics Sichuan University M. Wayne State University.
 Maurice Sciammas Senior Vice President Worldwide Sales Marketing since 2007. joined MPS July 1999 Vice President Products Sales. Director IC Products Supertex 1990 1999. Micrel,.. San Jose State University.
 Saria Tseng Vice President General Counsel Corporate Secretary 2004 Strategic Corporate Development 2009. MaXXan Systems. Vice President General Counsel 2001 2004. attorney Gray Cary Ware Freidenrich Jones Day Reavis Pogue. member state bar California New York bar association Republic China. Board Directors Super Micro Computer. leader high performance server technology. Masters Law California Berkeley Chinese Culture University Taipei.
 Michael Hsing
 Bernie Blegen Vice
 Senior Vice President Sales Marketing
 Saria Tseng Vice President Strategic Development General Counsel Secretary


Compensation of Key Management Personnel (Including Directors)
Short-term employee benefits comprise fees, salaries, benefits and bonuses earned during the year as well as nonmonetary benefits.
Post-employment benefits comprise the cost of providing defined contribution pensions to senior management in respect of the current period.
Share-based payments comprise the cost of senior management’s participation in share-based payment plans for the period as measured by the fair value of awards in accordance with IFRS2.

                                      | Year-ended 31 March 2019 | Year-ended 31 March 2018
------------------------------------- | ------------------------ | ------------------------
                                      | $M                       | $M
Short-term employee benefits          | 6.6                      | 9.1
Post-employment benefits              | 0.1                      | 0.1
Share-based payments - equity-settled | 10.4                     | 17.7
Total                                 | 17.1                     | 26.9

Key Management Personnel
 Short-term employee benefits fees salaries benefits bonuses nonmonetary benefits.
 Post-employment benefits pensions senior management.
 Share-based payments senior participation plans fair value IFRS2.
 Year-ended 31 March 2019 31 March 2018
 Short-term benefits 6. 9
 Post-employment benefits.
 Share-based payments equity-settled 10. 17.
.


Foreign exchange earnings and outgo
Export revenue constituted 93.3 percent of the total unconsolidated revenue in FY 2019 (92.2 percent in FY 2018).

                                    |         | (` crore)
----------------------------------- | ------- | ---------
Foreign exchange earnings and outgo | FY 2019 | FY 2018
a. Foreign exchange earnings        | 119,499 | 92,258
b. CIF Value of imports             | 447     | 768
c.Expenditure in foreign currency   | 49,336  | 33,014

exchange earnings
 Export revenue. percent unconsolidated revenue 2019. 2 percent 2018).
 earnings 2019 2018
. 119,499 92,258
. imports 447
. Expenditure foreign currency 49,336 33,014


Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 were as follows:
Current year additions relate to federal and state research credits. Prior year additions primarily relate to stock-based compensation. Prior year reductions are primarily composed of federal and state reserves related to transfer pricing and research credits and resulted from the completion of the 2015 U.S. federal audit in the first quarter of 2019.
Of the $21.2 million of unrecognized tax benefits as of December 31, 2019, $12.7 million would impact the consolidated income tax rate if ultimately recognized. The remaining $8.5 million would impact deferred taxes if recognized.
Teradyne does not anticipate a material change in the balance of unrecognized tax benefits as of December 31, 2019 in the next twelve months.
Teradyne records all interest and penalties related to income taxes as a component of income tax expense. Accrued interest and penalties related to income tax items at December 31, 2019 and 2018 amounted to $1.4 million and $0.3 million, respectively. For the years ended December 31, 2019, 2018 and 2017, expense of $1.1 million, expense of $0.1 million and benefit of $0.1 million, respectively, was recorded for interest and penalties related to income tax items.
Teradyne is subject to U.S. federal income tax, as well as income tax in multiple state, local and foreign jurisdictions. As of December 31, 2019, all material state and local income tax matters have been concluded through 2013, all material federal income tax matters have been concluded through 2015 and all material foreign income tax matters have been concluded through 2011. However, in some jurisdictions, including the United States, operating losses and tax credits may be subject to adjustment until such time as they are utilized and the year of utilization is closed to adjustment.
As of December 31, 2019, Teradyne is not permanently reinvested with respect to the unremitted earnings of non-U.S. subsidiaries to the extent that those earnings exceed local statutory and operational requirements. Remittance of those earnings is not expected to result in material income tax.

                                   | 2019     | 2018           | 2017
---------------------------------- | -------- | -------------- | --------
                                   |          | (in thousands) |
Beginning balance, as of January 1 | $43,395  | $36,263        | $38,958
Additions:                         |          |                |
Tax positions for current year     | 1,322    | 4,716          | 8,208
Tax positions for prior years      | 8,043    | 2,626          | 199
Reductions:                        |          |                |
Tax positions for prior years      | (31,397) | (153)          | (10,573)
Expiration of statutes             | (183)    | (57)           | (325)
Settlements with tax authorities   | —        | —              | (204)
Ending balance, as of December 31  | $21,180  | $43,395        | $36,263

Teradyne’s unrecognized tax benefits 2019 2018 2017
 Current additions federal state research credits. Prior year additions stock-based compensation. reductions federal state reserves pricing research credits 2015 U. federal audit 2019.
 $21. 2 million unrecognized tax benefits 2019 $12. 7 million consolidated income tax rate recognized. $8. 5 million deferred taxes.
 Teradyne change unrecognized tax benefits twelve months.
 Teradyne records interest penalties. penalties December 31, 2019 2018 $1. 4 million $0. 3 million. 2019 2018 2017 expense $1. 1 million $0. 1 million $0. 1 million recorded.
 Teradyne subject to. federal income tax state local foreign jurisdictions. state local tax concluded 2013, federal 2015 foreign 2011. jurisdictions operating losses tax credits adjustment.
 Teradyne not permanently reinvested unremitted earnings non-U. subsidiaries. Remittance not income tax.
2019 2018 2017
 balance January 1 $43,395 $36,263 $38,958
 Additions
 positions 1,322 4,716 8,208
 years 2,626
 Reductions
 prior years (31,397 (10,573
 Expiration statutes
 Settlements tax authorities
 balance December 31 $21,180 $43,395 $36,263


5. INVESTMENTS
The Company determines the appropriate designation of investments at the time of purchase and reevaluates such designation as of each balance sheet date. All of the Company’s investments are designated as available-for-sale debt securities. As of September 30, 2019 and 2018, the Company’s short-term investments have maturity dates of less than one year from the balance sheet date. The Company’s long-term investments have maturity dates of greater than one year from the balance sheet date.
Available-for-sale marketable securities are carried at fair value as determined by quoted market prices for identical or similar assets, with unrealized gains and losses, net of taxes, and reported as a separate component of stockholders’ equity. Management reviews the fair value of the portfolio at least monthly and evaluates individual securities with fair value below amortized cost at the balance sheet date. For debt securities, in order to determine whether impairment is other than-temporary, management must conclude whether the Company intends to sell the impaired security and whether it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. If management intends to sell an impaired debt security or it is more likely than not the Company will be required to sell the security prior to recovering its amortized cost basis, an other-than-temporary impairment is deemed to have occurred. The amount of an other-than-temporary impairment related to a credit loss, or securities that management intends to sell before recovery, is recognized in earnings. The amount of an other-than-temporary impairment on debt securities related to other factors is recorded consistent with changes in the fair value of all other available for-sale securities as a component of stockholders’ equity in other comprehensive income. No other-than-temporary impairment charges were recognized in the fiscal years ended September 30, 2019, 2018, and 2017. There were no realized gains or losses from the sale of available-for-sale securities during the years ended September 30, 2019 and 2017. The Company recorded a net realized loss from the sale of available-for-sale securities of $49,000 during the year ended September 30, 2018.
The cost of securities sold is based on the specific identification method. Amortization of premiums, accretion of discounts, interest, dividend income, and realized gains and losses are included in investment income.
The following tables summarize investments by type of security as of September 30, 2019 and 2018, respectively(amounts shown in thousands):

September 30, 2019:                   | Cost    | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value
------------------------------------- | ------- | ---------------------- | ----------------------- | -----------------
Available-for-sale securities:        |         |                        |                         |
U.S. Treasury, short-term             | $4,240  | $2                     | $—                      | $4,242
Corporate debt securities, short-term | 12,258  | 2                      | —                       | 12,260
U.S. Treasury, long-term              | 1,102   | —                      | (1)                     | 1,101
Corporate debt securities, long-term  | 451     | —                      | —                       | 451
Total                                 | $18,051 | $4                     | $(1)                    | $18,054

. INVESTMENTS
 Company determines designation investments purchase reevaluates each balance sheet date. investments designated as available-for-sale debt securities. September 30, 2019 2018 short-term investments have maturity less than one year from. long-term investments have maturity greater than one year.
 Available-for-sale securities carried at fair value by market prices unrealized gains losses net of taxes separate stockholders’ equity. Management reviews fair value monthly evaluates securities with below amortized cost. For debt securities impairment conclude sell impaired before cost. If other-than-temporary impairment occurred. recognized in earnings. impairment on securities recorded consistent with changes fair value. No other-than-temporary impairment charges recognized in years ended 2019 2018 2017. no realized gains or losses from sale securities 2019 2017. recorded net loss from sale of $49,000 year ended September 30, 2018.
 cost securities identification method. Amortization premiums accretion discounts interest dividend income gains losses investment income.
 tables summarize investments security September 30, 2019 2018
 September 30 2019 Cost Unrealized Gains Losses Fair Market Value
 Available-for-sale securities
. Treasury short-term $4,240
 Corporate debt securities-term 12,258
. Treasury long-term 1
 Corporate debt securities long-term
 $18,051


3. Inventories
Inventories consisted of the following:
The increase in live inventories is attributable to an increase in the quantity of live birds in inventory at the Company's Tyler, Texas facility as it increased production during fiscal 2019, as well as the value at which the Company's live poultry inventories of broilers are recorded. In periods where the Company estimates that the cost to grow live birds in inventory to a marketable age and then process and distribute those birds will be lower in the aggregate than the anticipated sales proceeds, the Company values the broiler inventories on hand at cost and accumulates costs as the birds are grown to a marketable age subsequent to the balance sheet date. In periods where the Company estimates that the cost to grow live birds in inventory to a marketable age and then process and distribute those birds will be higher in the aggregate than the anticipated sales proceeds, the Company will make an adjustment to lower the value of live birds in inventory to the net realizable value. The significant judgments that management makes in order to assess the net realizable value of its broiler inventory include estimating future selling prices of finished products and the related cost of sales to complete. The Company recorded a charge of $2.8 million at October 31, 2019 and of $9.6 million at October 31, 2018 to reduce the values of live broiler inventories on hand at those dates from cost to net realizable value.
The increases in feed, eggs and other, processed poultry and packaging materials inventories are also attributable to an increase in the inventory volume at the Tyler, Texas facility.
The increase in prepared chicken inventory is attributable to the mix of the different finished products in inventory at October 31, 2019, as compared to October 31, 2018, as well as an increase in production volume at the Company's prepared chicken facility in Flowood, Mississippi. During fiscal 2019, the facility processed approximately 129.1 million pounds of prepared chicken products, as compared to approximately 107.6 million pounds during fiscal 2018. Approximately 1.2 million pounds of that increase was in inventory at October 31, 2019, representing an approximately 12% increase in inventory volume.

October 31,                                          |           |
---------------------------------------------------- | --------- | --------
                                                     | 2019      | 2018
(In thousands)                                       |           |
Live poultry-broilers (net of reserve) and breeders  | $ 179,870 | $150,980
Feed, eggs and other                                 | 47,417    | 37,965
Processed poultry                                    | 35,121    | 30,973
Prepared chicken                                     | 20,032    | 13,591
Packaging materials                                  | 7,488     | 6,547
Total inventories                                    | $289,928  | $240,056

. Inventories
 increase in live inventories attributable to birds Tyler, Texas facility production fiscal 2019 value live poultry inventories. cost to grow live birds lower values broiler inventories at cost accumulates costs grown. cost higher value net realizable value. judgments net realizable value future selling prices finished products cost sales. recorded charge $2. 8 million at October 31, 2019 $9. 6 million at October 31, 2018 to reduce values live broiler inventories cost to net realizable value.
 increases in feed eggs processed poultry packaging materials inventories attributable to increase inventory volume Tyler, Texas facility.
 increase in prepared chicken inventory attributable to finished products October 31, 2019 production volume facility Flowood, Mississippi. 2019 processed 129. 1 million pounds prepared chicken products 107. 6 million pounds 2018. 1. 2 million pounds increase inventory at October 31, 2019 12% increase in inventory volume.

 poultry breeders 179,870 $150,980
 Feed 47,417 37,965
 Processed poultry 35,121 30,973
 Prepared chicken
 Packaging
 inventories $289,928 $240,056


Deferred taxes arise because of differences in the book and tax bases of certain assets and liabilities. Significant components of deferred tax assets and liabilities are as follows:
At December 31, 2019, undistributed earnings of our foreign subsidiaries indefinitely invested outside the U.S. amounted to approximately $3.8 billion. The majority of Verizon’s cash flow is generated from domestic operations and we are not dependent on foreign cash or earnings to meet our funding requirements, nor do we intend to repatriate these undistributed foreign earnings to fund U.S. operations.
Furthermore, a portion of these undistributed earnings represents amounts that legally must be kept in reserve in accordance with certain foreign jurisdictional requirements and are unavailable for distribution or repatriation. As a result, we have not provided U.S. deferred taxes on these undistributed earnings because we intend that they will remain indefinitely reinvested outside of the U.S. and therefore unavailable for use in funding U.S. operations. Determination of the amount of unrecognized deferred taxes related to these undistributed earnings is not practicable.
At December 31, 2019, we had net after-tax loss and credit carry forwards for income tax purposes of approximately $3.0 billion that primarily relate to state and foreign taxes. Of these net after-tax loss and credit carry forwards, approximately $2.0 billion will expire between 2020 and 2039 and approximately $1.0 billion may be carried forward indefinitely.
During 2019, the valuation allowance decreased approximately $481 million. The balance of the valuation allowance at December 31, 2019 and the 2019 activity is primarily related to state and foreign taxes.

                                           |          | (dollars in millions)
------------------------------------------ | -------- | ---------------------
At December 31,                            | 2019     | 2018
Deferred Tax Assets                        |          |
Employee benefits                          | $ 5,048  | $ 5,403
Tax loss and credit carry forwards         | 3,012    | 3,576
Other – assets                             | 5,595    | 1,650
                                           | 13,655   | 10,629
Valuation allowances                       | (2,260)  | (2,741)
Deferred tax assets                        | 11,395   | 7,888
Deferred Tax Liabilities                   |          |
Spectrum and other intangible amortization | 22,388   | 21,976
Depreciation                               | 16,884   | 15,662
Other—liabilities                          | 6,742    | 3,976
Deferred tax liabilities                   | 46,014   | 41,614
Net deferred tax liability                 | $ 34,619 | $ 33,726

Deferred taxes differences tax assets liabilities.
 December 31, 2019 undistributed earnings foreign subsidiaries outside U. $3. 8 billion. majority Verizon’s cash flow domestic operations not dependent on foreign cash earnings earnings U. operations.
 portion reserve unavailable for distribution repatriation. not provided U. S. deferred taxes reinvested. unavailable. operations. Determination deferred taxes practicable.
 December 31, 2019 net after-tax loss credit carry forwards $3. 0 billion state foreign taxes. $2. 0 billion expire 2020 2039 $1. 0 billion carried forward indefinitely.
 valuation allowance decreased $481 million. balance December related to state foreign taxes.
 December
 Deferred Tax Assets
 Employee benefits $ 5,048 $ 5,403
 Tax loss credit carry forwards 3,576
 Other assets 5,595 1,650
 13,655 10,629
Valuation allowances (2,260
 Deferred assets 11,395 7,888
 22,388 21,976
 Depreciation 16,884 15,662
 6,742
 46,014
 34,619 33,726


Net Revenues by Platform
The following tables detail our net revenues by platform (amounts in millions):
(1) Net revenues from “Mobile and ancillary” include revenues from mobile devices, as well as non-platform-specific game-related revenues, such as standalone sales of toys and accessories.
(2) Net revenues from “Other” primarily includes revenues from our Distribution business and the Overwatch League.
Console
The decrease in net revenues from console for 2019, as compared to 2018, was primarily due to:
lower revenues recognized from the Destiny franchise (reflecting our sale of the publishing rights for Destiny to Bungie in December 2018); and lower revenues recognized from Call of Duty franchise catalog titles.
The decrease was partially offset by revenues recognized from Crash Team Racing Nitro-Fueled, which was released in June 2019.
PC
The decrease in net revenues from PC for 2019, as compared to 2018, was primarily due to:
lower revenues recognized from the Destiny franchise; and lower revenues recognized from Hearthstone.
Mobile and Ancillary
The increase in net revenues from mobile and ancillary for 2019, as compared to 2018, was primarily due to revenues recognized from Call of Duty: Mobile, which was released in October 2019.

                                |        | For the Years | Ended December 31,   |
------------------------------- | ------ | ------------- | -------------------- | --------
                                | 2019   | 2018          | Increase/ (decrease) | % Change
Net revenues by platform:       |        |               |                      |
Console                         | $1,920 | $2,538        | $(618)               | (24)%
PC                              | 1,718  | 2,180         | (462)                | (21)
Mobile and ancillary (1)        | 2,203  | 2,175         | 28                   | 1
Other (2)                       | 648    | 607           | 41                   | 7
Total consolidated net revenues | $6,489 | $7,500        | $(1,011)             | (13)

Revenues by Platform
 tables detail revenues by platform
 revenues ancillary” include devices non-platform-specific game-related revenues standalone sales toys accessories.
 Distribution business Overwatch League.
 Console
 decrease revenues console 2019 due to
 lower revenues Destiny franchise Call of Duty titles.
 decrease offset by revenues Crash Team Racing Nitro-Fueled June 2019.
 decrease revenues due to
 lower Destiny franchise Hearthstone.
 Ancillary
 increase due to revenues Call of Duty: Mobile released October 2019.
 Increase
 Net revenues by platform
 Console $1,920  $2,538  $(618) (24)
 PC 1,718  2,180
 Mobile and ancillary 2,203  2,175
 Other 648 607
 Total consolidated net revenues $6,489  $7,500  $(1,011)


NOTE 3. ACQUISITIONS
MGI
On April 4, 2019, we acquired substantially all of the assets comprising the business of MGI Grain Processing, LLC, a Minnesota limited liability company, now conducting business as MGI Grain Incorporated (MGI) for an aggregate purchase price of $3.8 million. The purchase price included $0.3 million deposited in an escrow account at closing which was subsequently released to the sellers in June 2019. MGI owns and operates a grain mill and processing facility in East Grand Forks, Minnesota. We acquired MGI as part of our strategy to expand our product portfolio. The acquisition has been accounted for as a business combination. The results of MGI’s operations are included in our consolidated financial statements beginning April 4, 2019. In 2019, we incurred $0.1 million of MGI acquisition-related costs which are included in selling, general and administrative expenses.
The purchase price for MGI was subject to adjustment if the estimated closing working capital with respect to the assets purchased and the liabilities assumed was different than the actual closing working capital, as defined in the purchase agreement. The seller of MGI paid a working capital adjustment of $18 thousand in 2019. The following table summarizes the purchase price allocation, the consideration transferred to acquire MGI and the amounts of identified assets acquired and liabilities assumed (in thousands).
In the fourth quarter of 2019, our appraiser finalized certain fair value calculations and we completed our review of the calculations. The fair value of MGI’s trade receivables at acquisition, equaled the gross amount of trade receivables. The fair value of the customer relationship intangible at acquisition was estimated using an income approach based on expected future cash flows. As discussed in Note 9, we are amortizing the customer relationship intangible to expense over the 15-year period of expected future economic benefit, in proportion to the discounted expected future cash flows used to estimate the value of the intangible at acquisition. Goodwill primarily was attributed to intangible assets that do not qualify for separate recognition and synergies generated by MGI when combined with our existing operations. The $0.7 million allocated to goodwill is deductible for tax purposes over the next fifteen years.

                                                                               | Estimated at June 30, 2019     | Adjustments                     | Final as of December 31, 2019
------------------------------------------------------------------------------ | ------------------------------ | ------------------------------- | ------------------------------
Cash                                                                           | $3,795                         | $ -                             | $3,795
Working capital adjustment to purchase price                                   | (38)                           | 20                              | (18)
Total fair value of consideration transferred                                  | 3,757                          | 20                              | 3,777
Accounts receivable                                                            | 591                            | -                               | 591
Inventories                                                                    | 149                            | -                               | 149
Deposits and other current assets                                              | 4                              | 8                               | 12
Property and equipment                                                         | 1,560                          | -                               | 1,560
Customer relationship                                                          | 930                            | -                               | 930
Other finite-lived intangible assets                                           | 35                             | -                               | 35
Accounts payable                                                               | (219)                          | -                               | (219)
Finance lease liabilities                                                      | (18)                           | -                               | (18)
Net recognized amounts of identifiable assets acquired and liabilities assumed | 3,032                          | 8                               | 3,040
Goodwill                                                                       | $                          725 | $                            12 | $                          737

. ACQUISITIONS
 MGI
 April 4, 2019 acquired assets MGI Grain Processing Minnesota MGI Grain Incorporated purchase price $3. 8 million. included $0. 3 million deposited escrow released sellers June 2019. MGI owns operates grain mill processing facility East Grand Forks Minnesota. acquired product portfolio. acquisition accounted business combination. operations consolidated financial statements April 4 2019. incurred $0. 1 million MGI acquisition-related costs selling administrative expenses.
 purchase price subject adjustment estimated closing working capital. seller paid working capital adjustment $18 thousand 2019. table summarizes purchase price allocation consideration transferred MGI assets acquired liabilities assumed.
 fourth quarter 2019 appraiser finalized fair value calculations. fair value trade receivables acquisition equaled gross receivables. customer intangible estimated future cash flows. amortizing customer intangible expense 15-year future cash flows. Goodwill intangible assets.7 million goodwill deductible tax fifteen years.
 Estimated June 30 2019 Final December 31, 2019
 Cash $3,795
 Working capital adjustment purchase price
 value transferred 3,757
 Accounts receivable 591
 Inventories 149
 Deposits current assets
 Property equipment 1,560
 Customer relationship 930
 finite-lived intangible assets 35
 Accounts payable (219)
 Finance lease liabilities
 assets acquired liabilities assumed 3,032
 Goodwill $ 725


Deferred Revenue
The following table summarizes contract liabilities which are shown as deferred revenue (in thousands):
Total deferred revenue increased primarily due to the extended duration period of new maintenance contracts during fiscal year 2019.

                                  | June 30,
2019 | June 30,
2018
--------------------------------- | ------------- | -------------
Deferred maintenance              | $192,955      | $164,986
Other deferred revenue            | 10,287        | 9,539
Total deferred revenue, net       | 203,242       | 174,525
Less: current portion             | 144,230       | 130,865
Non-current deferred revenue, net | $59,012       | $43,660

 table summarizes contract liabilities deferred
 increased extended maintenance contracts 2019.
 Deferred maintenance $192,955 $164,986
 revenue 10,287 9,539
 203,242 174,525
 current 144,230 130,865
 Non-current deferred revenue $59,012 $43,660


GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
Note 5. Accounts Receivable
Accounts receivable consisted of the following as of the dates indicated

                    | Accounts Receivable, Gross | Allowance for Losses | Accounts Receivable, Net
------------------- | -------------------------- | -------------------- | ------------------------
December 31, 2019   |                            |                      |
Transaction related | $12,863                    | $(238)               | $12,625
Servicing related   | 6,868                      | —                    | 6,868
Total               | $19,731                    | $(238)               | $19,493
December 31, 2018   |                            |                      |
Transaction related | $14,704                    | $(168)               | $14,536
Servicing related   | 864                        | —                    | 864
Total               | $15,568                    | $(168)               | $15,400

GreenSky Inc. FINANCIAL STATEMENTS States Dollars thousands share data
 5. Accounts Receivable
 Gross Allowance Losses Net
 December 31, 2019
 Transaction $12,863 $(238) $12,625
 Servicing 6,868
 $19,731 $19,493
 December 31, 2018
 $14,704 $(168) $14,536
 Servicing
 $15,568 $15,400


(a) EBITDA is calculated as operating profit less interest income and other gains/losses, net and adding back depreciation of property, plant and equipment, investment properties as well as right-of-use assets, and amortisation of intangible assets. Adjusted EBITDA is calculated as EBITDA plus equity-settled share-based compensation expenses.
(b) Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues.
(c) Net debt represents period end balance and is calculated as cash and cash equivalents, plus term deposits and others, minus borrowings and notes payable.
(d) Capital expenditures consist of additions (excluding business combinations) to property, plant and equipment, construction in progress, investment properties, land use rights and intangible assets (excluding video and music contents, game licences and other contents).

                              | Unaudited                           |              |             |             |
----------------------------- | ----------------------------------- | ------------ | ----------- | ----------- | -----------
                              | Three months ended                  |              |             | Year ended  |
                              | 31 December                         | 30 September | 31 December | 31 December | 31 December
                              | 2019                                | 2019         | 2018        | 2019        | 2018
                              | (RMB in millions, unless specified) |              |             |             |
EBITDA (a)                    | 35,675                              | 35,378       | 27,180      | 137,268     | 110,404
Adjusted EBITDA (a)           | 38,572                              | 38,123       | 29,701      | 147,395     | 118,273
Adjusted EBITDA margin (b)    | 36%                                 | 39%          | 35%         | 39%         | 38%
Interest and related expenses | 2,348                               | 2,086        | 1,345       | 7,690       | 4,898
Net debt (c)                  | (15,552)                            | (7,173)      | (12,170)    | (15,552)    | (12,170)
Capital expenditures (d)      | 16,869                              | 6,632        | 4,564       | 32,369      | 23,941

EBITDA calculated operating profit less interest income gains/losses depreciation property plant equipment investment properties right-of-use assets amortisation intangible assets. Adjusted EBITDA plus equity compensation expenses.
 Adjusted EBITDA margin by revenues.
 Net debt balance cash equivalents deposits minus borrowings notes payable.
 Capital expenditures additions property plant equipment construction investment properties land use rights intangible assets video music game licences.
 months
 millions
 EBITDA 35,675,378 27,180 137,268 110,404
 Adjusted EBITDA 38,572 29,701 147,395 118,273
 Adjusted EBITDA margin 36%
 Interest related expenses 2,348 2,086 1,345 7,690 4,898
 Net debt (15,552 (12,170
expenditures,869 6,632 4,564,369


Note 7 Other expense
Impairment of Assets
2019
Impairment charges in 2019 included $85 million allocated to indefinite-life intangible assets, and $8 million allocated primarily to property, plant and equipment. These impairment charges relate to broadcast licences and certain assets for various radio markets within our Bell Media segment. The impairment charges were a result of continued advertising demand and ratings pressures in the industry resulting from audience declines, as well as competitive pressure from streaming services. The charges were determined by comparing the carrying value of the CGUs to their fair value less cost of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of January 1, 2020 to December 31, 2024, using a discount rate of 7.5% and a perpetuity growth rate of nil as well as market multiple data from public companies and market transactions. The carrying value of these CGUs was $464 million at December 31, 2019.
2018
Impairment charges in  2018 included $145  million allocated to indefinite-life intangible assets, and $14 million allocated to finite-life intangible assets. These impairment charges primarily relate to our French TV channels within our Bell Media segment. These impairments were the result of revenue and profitability declines from lower audience levels and subscriber erosion. The charges were determined by comparing the carrying value of the CGUs to their fair value less costs of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of January 1, 2019 to December 31, 2023, using a discount rate of 8.0% to 8.5% and a perpetuity growth rate of nil, as well as market multiple data from public companies and market transactions. The carrying value of these CGUs was $515 million at December 31, 2018. In the previous year’s impairment analysis, the company’s French Pay and French Specialty TV channels were tested for recoverability separately. In 2018, the CGUs were grouped to form one French CGU which reflects the evolution of the cash flows from our content strategies as well as the CRTC beginning to regulate Canadian broadcasters under a group licence approach based on language.
Additionally, in 2018, we recorded an indefinite-life intangible asset impairment charge of $31 million within our Bell Media segment as a result of a strategic decision to retire a brand.
EQUITY LOSSES FROM INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
We recorded a loss on investment of $53 million and $20 million in 2019 and 2018, respectively, related to equity losses on our share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures. The obligation is marked to market each reporting period and the gain or loss on investment is recorded as equity gains or losses from investments in associates and joint ventures.
GAINS (LOSSES) ON INVESTMENTS
In 2019 we recorded gains of $13 million which included a gain on an obligation to repurchase at fair value the minority interest in one of our subsidiaries.
In 2018, we recorded losses of $34 million which included a loss on an obligation to repurchase at fair value the minority interest in one of our subsidiaries.

FOR THE YEAR ENDED DECEMBER 31                                                                                | NOTE   | 2019  | 2018
------------------------------------------------------------------------------------------------------------------------- | ------ | ----- | -----
Impairment of assets                                                                                | 14, 16 | (102) | (200)
Equity losses from investments in associates and joint ventures                                                           | 17     |       |
Losses on investments                                                                                |        | (53)  | (20)
Operations                                                                                |        | (19)  | (15)
Early debt redemption costs                                                                                | 22     | (18)  | (20)
(Losses) gains on retirements and disposals of property, plant and equipment and intangible assets                        |        | (9)   | 11
Net mark-to-market gains (losses) on derivatives used to economically hedge equity settled share-based compensation plans |        | 138   | (80)
Gains (losses) on investments                                                                                |        | 13    | (34)
Other                                                                                |        | 37    | 10
Total other expense                                                                                |        | (13)  | (348)

 Impairment Assets
 2019
 charges $85 million indefinite-life assets $8 million property plant equipment. broadcast licences assets radio markets Bell Media segment. advertising demand ratings pressures audience declines competitive pressure streaming services. determined carrying value fair value less cost disposal. estimated discounted cash flows market-based valuation models five-year cash flow projections January 2020 December 2024 discount rate 7. 5% perpetuity growth rate market data. carrying value $464 million December 31, 2019.
 2018
 charges $145 million indefinite-life $14 million finite-life. French TV channels Bell Media. revenue profitability declines audience levels subscriber erosion. determined value costs disposal. estimated discounted cash flows models 2019 December 2023 discount rate 8. 0% to 8. 5% perpetuity growth rate nil market data. carrying value $515 million December 31, 2018.previous analysis French Pay Specialty TV channels tested recoverability. 2018 CGUs grouped French CGU evolution cash flows content strategies CRTC Canadian broadcasters group licence approach language.
 2018 recorded indefinite-life intangible asset impairment charge $31 million Bell Media segment decision retire brand.
 EQUITY LOSSES INVESTMENTS ASSOCIATES JOINT
 recorded loss investment $53 million $20 million 2019 2018 equity losses obligation repurchase minority interest joint. obligation marked market gain loss recorded equity gains losses.
 2019 gains $13 million gain obligation repurchase minority interest.
 2018 losses $34 million loss obligation.
 YEAR ENDED DECEMBER 31 2019
 Impairment assets
 Equity losses investments associates joint ventures
 Losses investments
 Early debt redemption costs
gains retirements disposals property equipment intangible assets 11
 gains derivatives equity compensation plans 138 (80)
 Gains investments 13 (34)
 10
 expense (348)


Item 6. SELECTED FINANCIAL DATA
The following table summarizes certain selected consolidated financial data, which should be read in conjunction with our consolidated financial statements and notes thereto in Item 8 and with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included under Item 7 in this Annual Report on Form 10-K. The selected consolidated financial data presented below at and for each of the years in the five-year period ended December 31, 2019, is derived from our consolidated financial statements and include the operations of King commencing on February 23, 2016. All amounts set forth in the following tables are in millions, except per share data.
(1) On January 1, 2018, we adopted a new revenue accounting standard utilizing the modified retrospective method of transition. As a result, periods prior to January 1, 2018 have not been restated to reflect the new accounting standard and continue to be reported under the accounting standards that were in effect for those periods.
(2) Net income for 2019, 2018, and 2017 includes the impact of significant discrete tax-related impacts, including incremental income tax expense and benefits in 2017 and 2018 due to the application of the U.S. Tax Reform Act. See further discussion in Note 19 of the notes to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.
(3) Cash and investments consists of cash and cash equivalents along with short-term and long-term investments. We had total investments of $69 million, $155 million, $62 million, $26 million, and $17 million, as of December 31, 2019, December 31, 2018, December 31, 2017, December 31, 2016, and December 31, 2015, respectively. Cash and investments as of December 31, 2015, excludes $3,561 million of cash placed in escrow for the acquisition of King.
(4) For discussion on our debt obligations, see Note 13 of the notes to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.
(5) Net debt is defined as long-term debt, gross less cash and investments
(6) During the three months ended March 31, 2019, we identified an amount which should have been recorded in the three months and year ended December 31, 2018 to reduce income tax expense by $35 million. Our selected financial data for the year ended December 31, 2018, as presented above, has been revised to reflect the correction. See further discussion in Note 2 of the notes to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.

                                  |        |         | For the Years Ended December 31, |        |
--------------------------------- | ------ | ------- | -------------------------------- | ------ | ------
                                  | 2019   | 2018(6) | 2017                             | 2016   | 2015
Statement of Operations Data (1): |        |         |                                  |        |
Net revenues                      | $6,489 | $7,500  | $7,017                           | $6,608 | $4,664
Net income (2)                    | 1,503  | 1,848   | 273                              | 966    | 892
Basic net income per share        | 1.96   | 2.43    | 0.36                             | 1.30   | 1.21
Diluted net income per share      | 1.95   | 2.40    | 0.36                             | 1.28   | 1.19
Cash dividends declared per share | 0.37   | 0.34    | 0.30                             | 0.26   | 0.23
Operating cash flows              | $1,831 | $1,790  | $2,213                           | $2,155 | $1,259
Balance Sheet Data:               |        |         |                                  |        |
Cash and investments (3)          | $5,863 | $4,380  | $4,775                           | $3,271 | $1,840
Total assets                      | 19,845 | 17,890  | 18,668                           | 17,452 | 15,246
Long-term debt, net (4)           | 2,675  | 2,671   | 4,390                            | 4,887  | 4,074
Long-term debt, gross             | 2,700  | 2,700   | 4,440                            | 4,940  | 4,119
Net debt (5)                      | —      | —       | —                                | 1,669  | 2,279

Item 6. SELECTED FINANCIAL DATA
 table summarizes consolidated financial data financial statements notes 8 “Management’s Discussion Analysis Financial Condition Results Item 7 Annual Report Form 10-K. consolidated financial data five-year December 31, 2019 derived from financial statements operations King commencing February 23, 2016. amounts millions except share data.
 January 1, 2018 adopted new revenue accounting standard. periods prior not restated reported.
 Net income 2019 2018 2017 includes tax impacts incremental income tax expense benefits 2017 U. S. Tax Reform Act. Note 19 8.
 Cash investments equivalents short-term long-term investments. total investments $69 million $155 million $62 million $26 million $17 million December 31, 2019 2018 2017 2016, 2015,. excludes $3,561 million escrow King.
 debt obligations Note 13.
 Net debt long-term debt less cash investments
 three months March 31, 2019 December 31, 2018 income tax expense $35 million.financial data December 31, 2018 revised correction. Note 2 consolidated financial statements Item 8 Annual Report Form 10-K.
 Years Ended December
 2019 2017 2016 2015
 Operations Data
 Net revenues $6,489 $7,500 $7,017 $6,608 $4,664
 Net income 1,503 1,848 966 892
 net income share.
 income share.
 Cash dividends share.
 Operating cash flows $1,831 $1,790 $2,213 $2,155 $1,259
 Balance Sheet Data
 Cash investments $5,863 $4,380 $4,775 $3,271 $1,840
 Total assets 19,845 17,890 18,668 17,452 15,246
 Long-term debt 2,675 2,671 4,390
 2,700
 Net debt 1,669 2,279


Other Income (Expense), Net
Additional information relating to Other income (expense), net is as follows:
nm -not meaningful
The change in Other income (expense), net during the year ended December 31, 2019, compared to the similar period in 2018, was primarily driven by early debt redemption costs of $3.6 billion recorded during 2019, compared to $725 million recorded during 2018 (see “Special Items”) as well as pension and benefit charges of $126 million recorded in 2019, compared with pension and benefit credits of $2.1 billion recorded in 2018 (see “Special Items”).

                                               |           |        | (dollars in millions)  Increase/ (Decrease) | Increase/ (Decrease)
---------------------------------------------- | --------- | ------ | ------------------------------------------- | --------------------
Years Ended December 31,                       | 2019      | 2018   | (dollars in millions)                       | 2019 vs. 2018
Interest income                                | $ 121     | $ 94   | $ 27                                        | 28.7%
Other components of net periodic benefit cost  | 627       | 3,068  | (2,441)                                     | (79.6)
Early debt extinguishment costs                | (3,604)   | (725)  | (2,879)                                     | nm
Other, net                                     | (44)      | (73)   | 29                                          | 39.7
Total                                          | $ (2,900) | $2,364 | $ (5,264)                                   | nm

Income Net
 change December 31, 2019 2018 driven early debt redemption costs $3. 6 billion $725 million 2018 pension benefit charges $126 million credits $2. 1 billion 2018.
 (dollars millions Increase
 Years Ended December 31, 2019 2018 millions.
 Interest income $ 121  $ 94  $ 27.
 benefit cost 627 3,068 (2,441.
 Early debt extinguishment costs (3,604) (725) (2,879)
 Other net (44) 29.
 Total $ (2,900) $2,364 (5,264)


The assumptions used to calculate these amounts for fiscal 2019 are set forth under Note 16 of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for fiscal year 2019 filed with the SEC on August 27, 2019.
(2) Amounts shown do not reflect compensation actually received by the NEO. Instead, the amounts shown in this column represent the grant date fair values of stock options issued pursuant to the Company’s 2003 Equity Incentive Plan and certain inducement grants, computed in accordance with FASB ASC Topic 718. The assumptions used to calculate these amounts for fiscal 2019 are set forth under Note 16 of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for fiscal year 2019 filed with the SEC on August 27, 2019.
(3) All non-equity incentive plan compensation was paid pursuant to the Variable Pay Plan.
(4) The amounts in the “All Other Compensation” column for fiscal 2019 include: $4,000 401(k) matching contribution by the Company for each NEOs other than Mr. McNab.
(5) The Compensation Committee awarded Mr. Maletira a one-time discretionary bonus in the amount of $180,000 in connection with his work on the AvComm and Wireless acquisition. Please see “Discretionary Bonuses” under the Compensation Discussion and Analysis on page 36 of this proxy statement.
(6) Mr. Staley was awarded a $60,000 sign-on bonus when he joined the Company in February 2017.
The amounts in the salary, bonus, and non-equity incentive plan compensation columns of the Summary Compensation Table reflect actual amounts paid for the relevant years, while the amounts in the stock awards column reflect accounting values. The tables entitled “Outstanding Equity Awards at Fiscal Year-End Table” and “Option Exercises and Stock Vested Table” provide further information on the named executive officers’ potential realizable value and actual value realized with respect to their equity awards. The Summary Compensation Table should be read in conjunction with the Compensation Discussion and Analysis and the subsequent tables and narrative descriptions.

Name            | Fiscal Year | Maximum Possible Value of MSUs Using Grant Date Fair Value | Maximum Possible Value of PSUs Using Grant Date Fair Value
--------------- | ----------- | ---------------------------------------------------------- | ----------------------------------------------------------
Oleg Khaykin    | 2019        | 4,067,526                                                  | —
                | 2018        | 2,457,750                                                  | 909,900
                | 2017        | 659,618                                                    | —
Amar Maletira   | 2019        | 1,379,350                                                  | —
                | 2018        | 1,015,870                                                  | 454,950
                | 2017        | 574,500                                                    | —
Paul McNab      | 2019        | 591,150                                                    | —
                | 2018        | 442,395                                                    | —
                | 2017        | 373,425                                                    | —
Luke Scrivanich | 2019        | 591,150                                                    | —
                | 2018        | 442,395                                                    | —
                | 2017        | 393,600                                                    | —
Gary Staley     | 2019        | 591,150                                                    | —
                | 2018        | 943,527                                                    | —
                | 2017        | 303,948                                                    | —

assumptions 2019 Note 16 Annual Report Form 10-K.
 Amounts reflect compensation received NEO. represent grant date values stock options 2003 Equity Incentive Plan inducement grants FASB ASC Topic 718. assumptions 2019 Note 16.
 non-equity incentive plan compensation paid Variable Pay Plan.
 amounts Other Compensation” column 2019 include $4,000 401(k) matching contribution NEOs. McNab.
 Compensation Committee awarded. Maletira-time discretionary bonus $180,000 AvComm Wireless acquisition. Compensation Discussion Analysis page 36.
. Staley awarded $60,000 sign-on bonus February 2017.
 salary bonus non-equity incentive plan compensation columns reflect amounts paid stock awards column reflect accounting values. tables “Outstanding Equity Awards Fiscal Year-End Table” “Option Exercises Stock Vested Table” information executive officers’ potential. Summary Compensation Table read with Compensation Discussion and Analysis tables.

 Name Fiscal Year Maximum Value MSUs Grant Date
 Oleg Khaykin 4,067,526
 2,457,750 909,900
 2017 659,618
 Amar Maletira 1,379,350
 2018 1,015,870 454,950
 2017 574,500
 Paul McNab 591,150
,395
 373,425
 Luke Scrivanich 591,150
 2017 393,600
 Gary Staley 591,150
 943,527
 2017 303,948


Cost of Revenues
Our Products and Licensing segment costs increased $8.6 million to $16.7 million for the year ended December 31, 2019 compared to $8.1 million for the year ended December 31, 2018. This increase primarily resulted from $3.9 million of cost of revenues from the legacy business of MOI and $4.4 million of cost of revenues from the legacy business of GP during the year ended December 31, 2019, as well as an increase in sales volume.
Our Technology Development segment costs increased $3.2 million, to $18.6 million for the year ended December 31, 2019 compared to $15.4 million for the year ended December 31, 2018. The overall increase in Technology Development segment costs was driven by increases in direct labor and subcontractor costs consistent with the rate of growth in Technology Development segment revenues.

                             | Years ended December 31, |             |               |
---------------------------- | ------------------------ | ----------- | ------------- | ------------
                             | 2019                     | 2018        | $ Difference  | % Difference
Products and licensing costs | $16,684,172              | $8,078,870  | $8,605,302    | 106.5%
Technology development costs | 18,649,161               | 15,400,475  | 3,248,686     | 21.1%
Total costs of revenues      | $35,333,333              | $23,479,345 | $11,853,988   | 50.5%

 Products Licensing increased $8. 6 million to $16. 7 million 2019 $8. 1 million 2018. $3. 9 million MOI $4. 4 million GP sales volume.
 Technology Development costs increased $3. 2 million $18. 6 million 2019 $15. 4 million 2018. driven direct labor subcontractor costs.
 Products licensing costs $16,684,172 $8,078,870 $8,605,302 106. 5%
 Technology development costs 18,649,161 15,400,475 3,248,686 21. 1%
 $35,333,333 $23,479,345 $11,853,988 50. 5%


NantHealth, Inc
Consolidated Statements of Cash Flows (Continued)
(Dollars in thousands)
(1) Cash and cash equivalents included restricted cash of $1,136, $1,136, and $350 at December 31, 2019, 2018, and 2017 included in other assets, respectively. Restricted cash consists of funds that are contractually restricted as to usage or withdrawal related to the Company's security deposits in the form of standby letters of credit for leased facilities. No amounts have been drawn upon the letters of credit as of December 31, 2019.
The accompanying notes are an integral part of these Consolidated Financial Statements.

Year Ended December 31,                                               |        |
--------------------------------------------------------------------- | ------ | ------
                                                                      | 2019   | 2018
Supplemental disclosure of cash flow information                      |        |
Income taxes paid                                                     | $318   | $15
Interest paid                                                         | $5,909 | $5,885
Interest received                                                     | —      | 13
Noncash investing and financing activities                            |        |
Purchases of property and equipment (including internal use software) | 1,068  | 529
Assignment of NantHealth Labs (see Note 20)                           | —      | 8,956

NantHealth
 Consolidated Statements Cash Flows
 equivalents restricted cash $1,136 $350 December 31, 2019 2018 2017 assets. Restricted cash restricted security deposits letters credit leased facilities. No amounts drawn December 31, 2019.
 notes Consolidated Financial Statements.
 Ended December
 Supplemental disclosure cash flow
 Income taxes $318 $15
 Interest $5,909 $5,885
 Noncash investing financing
 Purchases property equipment software
 Assignment NantHealth Labs


The following table presents the percentage relationship of our Consolidated Statement of Operations line items to our consolidated net revenues for the periods presented:
Net revenue. Total revenue decreased $0.3 million, or 0.2% in fiscal 2018 compared to fiscal 2017. Products revenue decreased $4.6 million or 12.1% while support, maintenance and subscription services revenue increased 5.8 million, or 9.1%, as a result of continued focus on selling hosted perpetual and subscription services which increased 35% year over year. Hosted perpetual and subscription services revenue comprised 16% of total consolidated revenues in 2018 compared to 12% in 2017. Professional services revenue decreased $1.4 million, or 5.5%, primarily as a result of a decrease in proprietary services of $1.5 million offset by an increase in remarketed services of $0.1 million.
Gross profit and gross profit margin. Our total gross profit increased $0.6 million, or 1.0%, in fiscal 2018 and total gross profit margin increased 0.6% to 50.6%. Products gross profit decreased $2.8 million and gross profit margin decreased 4.6% to 21.7% primarily as a result of lower product revenue coupled with higher amortization of developed technology by $2.0 million related to the previously announced general availability of the latest version of our rGuest Buy and rGuest Stay software that were placed into service in the first and second quarters of fiscal 2017, and the second quarter of fiscal 2018.
Support, maintenance and subscription services gross profit increased $6.0 million and gross profit margin increased 260 basis points to 75.8% due to the scalable nature of our infrastructure supporting and hosting customers. Professional services gross profit decreased $2.6 million and gross profit margin decreased 9.0% to 19.2% due to lower professional services revenues on higher cost structure following a recent alignment toward enabling the Company to provide more customer-centric services going forward.
Operating expenses Operating expenses, excluding legal settlements and restructuring, severance and other charges, increased $1.0 million, or 1.4%, in fiscal 2018 compared with fiscal 2017. As a percent of total revenue, operating expenses have increased 0.9% in fiscal 2018 compared with fiscal 2017
Product development. Product development includes all expenses associated with research and development. Product development decreased $1.1 million, or 3.8%, during fiscal 2018 as compared to fiscal 2017. This decrease is primarily driven by our shift from contract labor to internal resources resulting in a decrease in contract labor of $5.9 million and an increase in payroll related expenses of $4.7 million.
Sales and marketing. Sales and marketing decreased $2.7 million, or 13.2%, in fiscal 2018 compared with fiscal 2017. The change is due primarily to a decrease of $2.2 million in incentive commissions related to revision of our commission plan from total contract value to annual contract value coupled with lower sales in fiscal 2018.
Depreciation of fixed assets. Depreciation of fixed assets increased $0.2 million or 9.2% in fiscal 2018 as compared to fiscal 2017.
Amortization of intangibles. Amortization of intangibles increased $0.5 million, or 35.0%, in fiscal 2018 as compared to fiscal 2017 due to our latest version of rGuest Pay being placed into service on March 31, 2017.
Restructuring, severance and other charges. Restructuring, severance, and other charges increased $0.2 million during fiscal 2018 compared to fiscal 2017 related to our ongoing efforts to create more efficient teams across the business, which included certain executive changes during the year.
Our restructuring actions are discussed further in Note 4, Restructuring Charges.
Legal settlements. During fiscal 2018 and 2017, we recorded $0.2 million and $0.1 million, respectively, in legal settlements for employment and other business-related matters.

                                                          | Year ended March 31, |
--------------------------------------------------------- | -------------------- | ------
                                                          | 2018                 | 2017
Net revenue:                                              |                      |
Products                                                  | 26.5%                | 30.0%
Support, maintenance and subscription services            | 54.2                 | 49.6
Professional services                                     | 19.3                 | 20.4
Total net revenue                                         | 100.0                | 100.0
Cost of goods sold:                                       |                      |
Products (inclusive of developed technology amortization) | 20.7                 | 22.1
Support, maintenance and subscription services            | 13.1                 | 13.3
Professional services                                     | 15.6                 | 14.6
Total cost of goods sold                                  | 49.4                 | 50.0
Gross profit                                              | 50.6                 | 50.0
Operating expenses:                                       |                      |
Product development                                       | 21.9                 | 22.8
Sales and marketing                                       | 14.2                 | 16.3
General and administrative                                | 18.9                 | 15.6
Depreciation of fixed assets                              | 2.1                  | 1.9
Amortization of intangibles                               | 1.5                  | 1.1
Restructuring, severance and other charges                | 1.4                  | 1.2
Legal settlements                                         | 0.1                  | 0.1
Operating loss                                            | (9.5)%               | (8.9)%

table Consolidated Statement Operations items net revenues
. decreased $0. 3 million. 2% 2018 2017. Products revenue decreased $4. 6 million 12. 1% support maintenance subscription services increased 5. 8 million 9. 1% hosted services 35%. 16% revenues 2018 12% 2017. Professional services revenue decreased $1. 4 million 5. 5% proprietary services $1. 5 million increase remarketed services $0. 1 million.
 Gross profit. increased $0. 6 million. 2018 margin increased. 50. 6%. profit decreased $2. 8 million margin decreased. 6% to 21. 7% lower product revenue higher amortization technology $2. million.
 Support maintenance subscription services profit increased $6. 0 million margin increased 260 75. 8%. Professional services profit decreased $2. 6 million margin decreased. 19. 2% lower services revenues.
 Operating expenses increased $1. 0 million 1. 4% 2018. increased 0. 9% 2018
 Product development. expenses research development.Product development decreased $1. 1 million. 8% 2018. driven shift contract labor to internal resources labor $5. 9 million increase payroll expenses $4. 7 million.
 Sales marketing. decreased $2. 7 million 13. 2% 2018. due decrease $2. 2 million incentive commissions lower sales.
 Depreciation fixed assets. increased $0. 2 million 9. 2% 2018.
 Amortization intangibles. increased $0. 5 million 35. 0% rGuest Pay March 31, 2017.
 Restructuring severance other charges. increased $0. 2 million 2018 efficient teams executive changes.
.
 Legal settlements. recorded $0. 2 million $0. 1 million legal settlements employment business-related matters.
 Year ended March 31,
 Net revenue
 Products 26. 5% 30.
 Support maintenance subscription services 54. 49.
 Professional services 19.
 net revenue.
 Cost of goods sold
 Products. 22.
 Support.
.
cost goods 49. 50.
 profit 50. 6.
 Operating expenses
 Product development 21. 22.
 Sales marketing 14. 16.
 18. 15.
 Depreciation assets 2.
 Amortization intangibles.
 Restructuring severance charges.
 Legal settlements.
 Operating loss.


Operating expenses
nm—not meaningful
Research and development expenses
Research and development expenses increased $15.8 million in the year ended March 31, 2018 compared to the year ended March 31, 2017, which was primarily attributable to increases in personnel-related costs of $10.1 million, information technology and facility costs of $2.3 million, professional services costs of $0.9 million, share-based compensation expense of $0.7 million, travel and other costs of $0.5 million and data center costs of $0.5 million.
Research and development expenses for the year ended March 31, 2018 as compared to the year ended March 31, 2017 were negatively impacted by approximately $0.5 million primarily as a result of the weakening of the U.S. dollar relative to the British pound.
Personnel-related cost increased primarily as a result of salaries and benefits associated with increased headcount throughout the year, information technology and facility costs increased primarily as a result of increased headcount, professional services costs increased primarily as a result of the use of research and development contractors and share-based compensation expense increased primarily as a result of share option grants since the prior year.
Sales and marketing expenses
Sales and marketing expenses increased $25.1 million in the year ended March 31, 2018 compared to the year ended March 31, 2017, which was primarily attributable to increases in personnel-related costs of $13.5 million, marketing costs of $4.7 million, information technology and facilities costs of $3.6 million, travel and other costs of $2.3 million and professional services of $0.8 million.
Sales and marketing expenses for the year ended March 31, 2018 as compared to the year ended March 31, 2017 were negatively impacted by approximately $1.4 million primarily as a result of the weakening of the U.S. dollar relative to the South African rand and British pound. Personnel-related costs increased primarily as a result of salaries and benefits associated with increased headcount. Information technology and facility costs and travel and other costs increased primarily as a result of increased headcount.
General and administrative expenses
General and administrative expenses increased $9.1 million in the year ended March 31, 2018 compared to the year ended March 31, 2017, which was primarily attributable to increases in personnel-related costs of $5.0 million, share-based compensation expense of $1.2 million, information technology and facilities costs of $1.0 million and professional services costs and material supplies of $0.6 million each.
General and administrative expenses for the year ended March 31, 2018 as compared to the year ended March 31, 2017 were negatively impacted by approximately $0.3 million primarily as a result of the weakening of the U.S. dollar against the British pound and South African rand. Personnel-related costs increased primarily as a result of salaries and benefits associated with increased headcount.
Share-based compensation expense increased primarily as a result of share option grants since the prior year. Information technology and facility and material supplies costs increased primarily as a result of increased headcount.
Restructuring and Impairment of long-lived assets
In the fourth quarter of fiscal 2018, upon the exit of our Watertown, Massachusetts corporate office space, we recorded a restructuring charge of $0.8 million for remaining non-cancelable rent and estimated operating expenses for the vacated premises, net of sublease rentals, and a non-cash impairment charge of $1.7 million primarily related to leasehold improvements.

                                    | Year ended March 31, |                        | Period-to-period change |
----------------------------------- | -------------------- | ---------------------- | ----------------------- | --------
% Change                            | 2018                 | 2017                   | Amount                  | % Change
                                    |                      | (dollars in thousands) |                         |
Operating expenses:                 |                      |                        |                         |
Research and development            | $38,373              | $22,593                | $15,780                 | 70%
Sales and marketing                 | 121,246              | 96,154                 | 25,092                  | 26%
General and administrative          | 36,989               | 27,875                 | 9,114                   | 33%
Impairment of long-lived assets     | 1,712                | —                      | 1,712                   | nm
Restructuring                       | 832                  | —                      | 832                     | nm
Total operating expenses            | $199,152             | $146,622               | $52,530                 | 36%

Operating expenses
 Research development expenses
 increased $15. 8 million March 31, 2018 2017 attributable personnel-related costs $10. 1 million information technology facility costs $2. 3 million professional services $0. 9 million share-based compensation expense $0. 7 million travel costs $0. 5 million data center costs $0. 5 million.
 negatively impacted. 5 million weakening. dollar British pound.
 Personnel cost increased salaries headcount information technology facility costs professional services share-based compensation expense share option grants.
 Sales marketing expenses
 increased $25. 1 million personnel-related costs $13. 5 million marketing costs $4. 7 million information technology facilities costs $3. 6 million travel costs $2. 3 million professional services $0. 8 million.
 negatively impacted $1. 4 million weakening. dollar relative pound. salaries headcount. Information technology travel increased headcount.
 General administrative expenses
 increased $9.million March 2018 2017 personnel costs $5. million share-based compensation $1. 2 million information technology facilities $1. million professional services material supplies $0. 6 million.
 expenses impacted $0. 3 million weakening. dollar pound South rand. Personnel costs salaries benefits increased headcount.
 Share-based compensation share option grants. Information technology facility material supplies increased headcount.
 Restructuring Impairment-lived assets
 fourth quarter 2018 Watertown Massachusetts office restructuring charge $0. 8 million non-cancelable rent expenses vacated premises sublease rentals non-cash impairment charge $1. 7 million leasehold improvements.
 March Period-to-period change
 Operating expenses
 Research development $38,373 $22,593 $15,780 70%
 Sales marketing 121,246 26%
 General administrative 36,989 27,875 33%
 Impairment long-lived assets

 expenses $199,152 $146,622 $52,530 36%


The following table provides reconciliation from U.S. GAAP Net income to non-GAAP Adjusted EBITDA (amounts in thousands):
(1) Fiscal years ending March 31, 2018 and 2017 adjusted due to the adoption of ASC 606.
(2) $0.9 million in costs incurred during fiscal year 2018 related to the relocation of the Company's tantalum powder facility equipment from Carson City, Nevada to its existing Matamoros, Mexico plant were reclassified from “Plant start-up costs” to “Restructuring charges” during fiscal year 2019.

                                                            |          | Fiscal Years Ended March 31, |
----------------------------------------------------------- | -------- | ---------------------------- | --------
                                                            | 2019     | 2018                         | 2017
Net income (U.S. GAAP) (1)                                  | $206,587 | $254,127                     | $47,157
Non-GAAP adjustments:                                       |          |                              |
Income tax expense (benefit)                                | (39,460) | 9,132                        | 4,294
Interest expense, net                                       | 19,204   | 32,073                       | 39,731
Depreciation and amortization                               | 52,628   | 50,661                       | 38,151
EBITDA (non-GAAP) (1)                                       | 238,959  | 345,993                      | 129,333
Excluding the following items:                              |          |                              |
Equity (income) loss from equity method investments         | 3,304    | (76,192)                     | (41,643)
Acquisition (gain) loss                                     | —        | (130,880)                    | —
Change in value of TOKIN options                            | —        | —                            | (10,700)
(Gain) loss on write down and disposal of long-lived assets | 1,660    | (992)                        | 10,671
ERP integration costs/IT transition costs                   | 8,813    | 80                           | 7,045
Stock-based compensation                                    | 12,866   | 7,657                        | 4,720
Restructuring charges (2)                                   | 8,779    | 14,843                       | 5,404
R&D grant reimbursements and grant income                   | (4,559)  | —                            | —
Legal expenses/fines related to antitrust class actions     | 11,896   | 16,636                       | 2,640
Net foreign exchange (gain) loss                            | (7,230)  | 13,145                       | (3,758)
TOKIN investment-related expenses                           | —        | —                            | 1,101
Plant start-up costs (2)                                    | (927)    | 929                          | 427
Loss on early extinguishment of debt                        | 15,946   | 486                          | —
Adjusted EBITDA (non-GAAP) (1)                              | $289,507 | $191,705                     | $105,240

table. GAAP Net income non-GAAP Adjusted EBITDA
 years 2018 2017 adjusted ASC 606.
. 9 million costs relocation tantalum powder Carson City Nevada Matamoros Mexico.
 Years Ended March
 Net income. $206,587 $254,127 $47,157
 Non-GAAP adjustments
 Income tax expense (39,460 9,132 4,294
 Interest expense 19,204 32,073 39
 Depreciation amortization 52,628 50,661 38,151
 EBITDA-GAAP 238,959 345,993 129,333
 Equity loss investments 3,304,192) (41,643)
 Acquisition loss
 Change TOKIN options
 loss write down disposal long-lived assets 1,660
 ERP transition costs 8,813
 Stock-based compensation
 Restructuring charges 8,779 14,843 5,404
R&D (4,559)
 Legal expenses antitrust actions 11,896,636
 foreign exchange loss (7,230 13,145
 TOKIN expenses
 Plant start-up costs
 Loss extinguishment debt 15,946
 Adjusted EBITDA $289,507 $191,705