NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
Following the enactment of the 2017 Tax Cut and Jobs Act and the associated one-time transition tax, in general, repatriation of foreign earnings to the US can be completed with no incremental US Tax. However, there are limited other taxes that continue to apply such as foreign withholding and certain state taxes. The company records a deferred tax liability for the estimated foreign earnings and state tax cost associated with the undistributed foreign earnings that are not permanently reinvested.
The Tax Act also includes provisions for Global Intangible Low-Taxed Income (“GILTI”) wherein taxes on foreign income are imposed in excess of a deemed return on tangible assets of foreign corporations. We elected to recognize the tax on GILTI as an expense in the period the tax is incurred.
We recognize the financial statement benefit of a tax position when it is more-likely-than-not, based on its technical merits, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not threshold is then measured to determine the amount of benefit to be recognized in the financial statements. As of December 31, 2019, we have approximately $5,016 of unrecognized tax benefits, which if recognized, would impact the effective tax rate. We do not anticipate any significant changes in our unrecognized tax benefits within the next 12 months.
A reconciliation of the beginning and ending unrecognized tax benefits is provided below:
Our continuing practice is to recognize interest and/or penalties related to unrecognized tax benefits as income tax expense. As of December 31, 2019, and 2018, $707 and $2,515, respectively, of interest and penalties were accrued.
We are subject to taxation in the U.S., various states, and in non-U.S. jurisdictions. Our U.S. income tax returns are primarily subject to examination from 2016 through 2018; however, U.S. tax authorities also have the ability to review prior tax years to the extent loss carryforwards and tax credit carryforwards are utilized. The open years for the non-U.S. tax returns range from 2008 through 2018 based on local statutes.

                                                        | As of December 31, |
------------------------------------------------------- | ------------------ | -------
                                                        | 2019               | 2018
Balance at January 1                                    | $3,649             | $4,670
Increase related to current year tax positions          | 2,834              | 55
(Decrease) increase related to prior year tax positions | (10)               | 46
Decrease related to lapse in statute of limitation      | (1,457)            | (1,076)
Decrease related to settlements with taxing authorities | —                  | (46)
Balance at December 31                                  | $5,016             | $3,649

FINANCIAL STATEMENTS thousands share data
 2017 Tax Cut Jobs Act one-time transition tax repatriation foreign earnings US no incremental US Tax. limited taxes foreign withholding state taxes. company records deferred tax liability estimated earnings state tax cost undistributed earnings not reinvested.
 Tax Act Global Intangible Low-Taxed Income taxes foreign income return assets. tax GILTI as expense.
 financial statement benefit tax position. measured benefit. December 31, 2019 approximately $5,016 unrecognized tax benefits effective tax rate. changes next 12 months.
 reconciliation unrecognized tax benefits
 interest penalties unrecognized tax benefits as income tax expense. December 31, 2019 2018 $707 $2,515 interest penalties accrued.
 subject to taxation U. states non-U. jurisdictions. income tax returns 2016 through 2018. authorities review prior tax years loss carryforwards tax credit carryforwards.open years non. tax returns 2008 2018 local statutes.
 December
 Balance January 1 $3,649 $4,670
 current tax positions 2,834
 prior tax positions
 statute limitation (1,457)
 settlements taxing authorities
 Balance December 31 $5,016 $3,649


Disaggregation of Revenue
The Company allocates sales from external customers to geographic areas based on the location to which the product is transported. Sales outside the United States are principally to customers in countries in the Caribbean, Canada, Central and South America.
The following table presents our domestic and international sales for each of the last three fiscal years:
Long-lived assets: As of September 30, 2019 and 2018, the Company had property, plant and equipment with a net book value of $1,406,546 and $412,755, respectively, located in Mexico.

                    |             | Year Ended September 30, |
------------------- | ----------- | ------------------------ | -----------
                    | 2019        | 2018                     | 2017
United States       | $78,553,000 | $72,295,000              | $67,901,000
All Other Countries | 6,481,000   | 5,356,000                | 6,047,000
Total Net Sales     | 85,034,000  | $77,651,000              | $73,948,000

 Company allocates sales. Sales Caribbean Canada Central South America.
 table domestic international sales three fiscal years
 Long-lived assets September 30 2019 2018 property plant equipment $1,406,546 $412,755 Mexico.
 United States $78,553,000 $72,295,000 $67,901,000
 Other Countries 6,481,000 5,356,000,047,000
 Net Sales 85,034,000 $77,651,000 $73,948,000


Note 19 – Summarized Quarterly Financial Data (Unaudited)
The following table presents unaudited quarterly operating results for each of our last eight fiscal quarters. This information has been prepared on a basis consistent with our audited financial statements and includes all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of the data.
UNAUDITED QUARTERLY OPERATING RESULTS
(In thousands, except for per share amounts)
(1) Assumes exercise of dilutive securities calculated under the treasury stock method.

Three Months Ended                         | March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019
------------------------------------------ | -------------- | ------------- | ------------------ | -----------------
Net sales                                  | $143,791       | $156,391      | $114,092           | $115,787
Gross profit                               | $60,612        | $65,015       | $46,331            | $47,209
Operating income (loss)                    | $(6,167)       | $562          | $(20,288)          | $(14,070)
Net income (loss)                          | $770           | $3,995        | $(46,123)          | $(11,624)
Earnings (loss) per common share - basic   | $0.02          | $0.08         | $(0.96)            | $(0.25)
Earnings (loss) per common share - diluted | $0.02(1)       | $0.08(1)      | $(0.96)            | $(0.25)

19 Summarized Quarterly Financial Data
 table presents unaudited quarterly results last eight fiscal quarters. statements includes.
 UNAUDITED QUARTERLY OPERATING RESULTS
 thousands share
 dilutive securities treasury stock method.
 Three Months Ended March 31, June September December 31, 2019
 Net sales $143,791 $156,391 $114,092 $115,787
 Gross profit $60,612 $65,015 $46,331 $47,209
 Operating income (loss $(6,167),288,070
 Net income (loss $770 $3,995 $(46,123 $(11,624)
 Earnings per common share.
 diluted.


Research and Development Expense
Research and development expense increased by $19.1 million in 2018 compared to 2017. The increase was primarily due to a $18.1 million increase in employee-related costs, which includes stock-based compensation, associated with our increased headcount from 159 employees as of December 31, 2017 to 229 employees as of December 31, 2018. The remaining increase was principally the result of a $2.9 million increase in hosting and software related cost to support research and development activities and an increase of $0.3 million in software subscription cost which was offset by a $1.0 million decrease in office related expenses to support research and development activities. A total of $7.8 million of internally-developed software costs during 2018 and $6.3 million of internally-developed software costs during 2017 were capitalized, resulting in a decrease of the expense by $1.4 million compared to 2017.

                         | Year Ended December 31, |                        | Change   |
------------------------ | ----------------------- | ---------------------- | -------- | -----
                         | 2018                    | 2017                   | $        | %
                         |                         | (dollars in thousands) |          |
Research and development | $ 41,305                | $ 22,241               | $ 19,064 | 85.7%
% of revenue             | 28%                     | 21%                    |          |

Research Development Expense
 increased $19. 1 million 2018 2017. due $18. 1 million employee costs stock-based compensation increased headcount 159 229 2018. remaining increase $2. 9 million hosting software $0. 3 million software subscription cost offset $1. 0 million office expenses. $7. 8 million 2018 $6. 3 million 2017 expense $1. 4 million 2017.
 Year Ended December 31,
 2018 2017 %
 Research development $ 41,305 $ 22,241  $ 19,064. 7%
 % revenue 28% 21%


Contractual Obligations
The following table provides a summary of our contractual obligations and commercial commitments at December 31, 2019. Additional detail about these items is included in the notes to the consolidated financial statements.
(1) Items included in long-term debt with variable coupon rates exclude unamortized debt issuance costs, and are described in Note 7 to the consolidated financial statements. (2) See Note 6 to the consolidated financial statements for additional information.
(3) Items included in purchase obligations are primarily commitments to purchase content and network services, equipment, software and marketing services, which will be used or sold in the ordinary course of business. These amounts do not represent our entire anticipated purchases in the future, but represent only those items that are the subject of contractual obligations. We also purchase products and services as needed with no firm commitment.
For this reason, the amounts presented in this table alone do not provide a reliable indicator of our expected future cash outflows or changes in our expected cash position. See Note 16 to the consolidated financial statements for additional information.
(4) Other long-term liabilities represent estimated postretirement benefit and qualified pension plan contributions. Estimated qualified pension plan contributions include expected minimum funding contributions, which commence in 2026 based on the plan’s current funded status. Estimated postretirement benefit payments include expected future postretirement benefit payments.
These estimated amounts: (1) are subject to change based on changes to assumptions and future plan performance, which could impact the timing or amounts of these payments; and (2) exclude expectations beyond 5 years due to uncertainty of the timing and amounts. See Note 11 to the consolidated financial statements for additional information.
(5) Represents future minimum payments under the sublease arrangement for our tower transaction. See Note 6 to the consolidated financial statements for additional information.
We are not able to make a reasonable estimate of when the unrecognized tax benefits balance of $2.9 billion and related interest and penalties will be settled with the respective taxing authorities until issues or examinations are further developed. See Note 12 to the consolidated financial statements for additional information.

                                                    |           |                  |               |               | (dollars in millions) Payments Due By Period
--------------------------------------------------- | --------- | ---------------- | ------------- | ------------- | --------------------------------------------
Contractual Obligations                             | Total     | Less than 1 year | 1 to 3 years  | 3 to 5 years  | More than 5 years
Long-term debt(1)                                   | $110,865  | $ 10,470         | $ 16,431      | $ 9,803       | $ 74,161
Finance lease obligations(2)                        | 1,213     | 366              | 479           | 244           | 124
Total long-term debt, including current maturities  | 112,078   | 10,836           | 16,910        | 10,047        | 74,285
Interest on long-term debt(1)                       | 62,450    | 4,578            | 8,383         | 7,426         | 42,063
Operating leases(2)                                 | 25,968    | 4,099            | 7,127         | 5,485         | 9,257
Purchase obligations(3)                             | 18,769    | 8,384            | 7,448         | 1,441         | 1,496
Other long-term liabilities(4)                      | 4,135     | 694              | 1,692         | 1,749         | —
Finance obligations(5)                              | 1,539     | 281              | 579           | 603           | 76
Total contractual obligations                       | $ 224,939 | $ 28,872         | $ 42,139      | $ 26,751      | $ 127,177

Contractual Obligations
 table contractual obligations commercial commitments at December 31, 2019. detail in consolidated financial statements.
 long-term debt variable coupon rates exclude unamortized debt costs described in Note 7. See Note 6.
 purchase obligations commitments purchase services equipment software marketing services used sold business. represent entire purchases contractual obligations. purchase products services needed no firm commitment.
 amounts reliable indicator future cash outflows cash position. See Note 16.
 long-term liabilities estimated postretirement benefit qualified pension plan contributions. pension plan contributions minimum funding contributions 2026. postretirement benefit payments future payments.
 subject to change exclude expectations beyond 5 years uncertainty. See Note 11.
 future minimum payments sublease arrangement tower transaction. See Note 6.
 unrecognized tax benefits balance $2. 9 billion interest penalties settled taxing authorities until issues. See Note 12.
 millions Payments Due By Period

 Obligations
 Long-term $110,865 10,470 16,431 74,161
 lease 1,213 366
-term debt 112,078 10,836 16,910 74,285
 Interest-term 62,450 4,578 8,383 7,426 42
 25,968 4,099 7,127 5,485 9,257
 Purchase obligations(3) 18,769 8,384 7,448 1,441 1,496
 long-term liabilities(4) 4,135 694 1,692 1,749
 1,539 281 603
 obligations $ 224,939 28,872 42,139 26,751 127


Deferred commissions
As a result of our adoption of ASC 606, we capitalize sales commissions that are incremental direct costs of obtaining customer contracts for which revenue is not immediately recognized. We then amortize capitalized commissions based on the transfer of goods or services to which they relate. The following tables summarize the activity related to deferred commissions and their balances as reported in our consolidated balance sheets (in millions):

                           |                | Year Ended
-------------------------- | -------------- | --------------
                           | April 26, 2019 | April 27, 2018
Other current assets       | $ 75           | $ 66
Other non-current assets   | 97             | 71
Total deferred commissions | $ 172          | $ 137

Deferred commissions
 ASC 606 capitalize sales commissions contracts. amortize commissions transfer goods services. tables activity deferred commissions balances balance sheets
 April 26, 2019 April 27, 2018
 current assets $ 75 $ 66
 non-current assets 97 71
 deferred commissions $ 172 $ 137


AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in millions, unless otherwise disclosed)
6. NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS
Notes receivable and other non-current assets consisted of the following:
The reduction in Long-term prepaid ground rent is a result of the reclassification of assets to the Right-of-use asset in connection with the Company’s adoption of the new lease accounting standard.

                                              | As of             |
--------------------------------------------- | ----------------- | -----------------
                                              | December 31, 2019 | December 31, 2018
Long-term prepaid ground rent                 | $—                | $607.5
Notes receivable                              | 1.1               | 1.0
Other miscellaneous assets                    | 405.3             | 354.1
Notes receivable and other non-current assets | $406.4            | $962.6

AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
. NOTES RECEIVABLE NON-CURRENT
 reduction Long-term prepaid ground rent reclassification Right-of-use asset new lease accounting standard.
 December 31, 2019 31, 2018
 Long-term prepaid ground rent $607.
 Notes receivable.
 miscellaneous assets.
 $406. $962.


On August 1, 2019 the Company acquired 100% of the limited liability company interest in Automated Packaging Systems, LLC, formerly Automated Packaging Systems, Inc., a manufacturer of automated bagging systems. The acquisition is included in our Product Care reporting segment. Automated offers opportunities to expand the Company's automated solutions as well as expand into adjacent markets.
Consideration exchanged for Automated was $445.7 million in cash. The preliminary opening balance sheet includes $58.2 million of assumed liabilities in connection with a deferred incentive compensation plan for Automated's European employees. Of this amount $19.7 million was paid as of December 31, 2019. Sealed Air will make the remaining payments to deferred incentive compensation plan participants in approximately equal installments over the next two years.
The purchase price was primarily funded with proceeds from the incremental term facility provided for under an amendment to our Credit Agreement, as described in Note 14, "Debt and Credit Facilities," of the Notes to Consolidated Financial Statements. For the year ended December 31, 2019, transaction expenses recognized for the Automated acquisition was $3.3 million. These expenses are included within selling, general and administrative expenses in the Consolidated Statements of Operations.
The following table summarizes the consideration transferred to acquire Automated and the preliminary allocation of the purchase price among the assets acquired and liabilities assumed. The allocation of purchase price is still preliminary as the Company finalizes the final purchase price adjustment with the seller and finalizes other aspects of the valuation including deferred taxes and intangible valuations. Preliminary estimates will be finalized within one year of the date of acquisition.
(1) On August 1, 2019, $8.6 million in cash was initially recorded as Other receivables in our preliminary opening balance sheet as disclosed in the table included in our third quarter 2019 Form 10-Q filing. The Company determined this balance should be reflected in Cash as the amount was settled to Automated on the day of purchase. This change had no impact on consideration paid or on our Consolidated Balance Sheets as of September 30, 2019.
(2) On August 1, 2019, $19.4 million was initially recorded within Other non-current liabilities in our preliminary opening balance sheet as disclosed in the table included in our third quarter 2019 Form 10-Q filing. This amount was related to the second installment payment of the deferred incentive compensation plan for Automated's European employees. As two payments were expected to be made within the first twelve months after acquisition, the amount related to the second payment should have been reflected in other current liabilities. The preliminary allocation as of August 1, 2019 now shows the second installment within other current liabilities.

                                                            | Revised Preliminary  | Measurement | Revised Preliminary
----------------------------------------------------------- | -------------------- | ----------- | -----------------------
                                                            | Allocation           | Period      | Allocation
(In millions)                                               | As of August 1, 2019 | Adjustments | As of December 31, 2019
Total consideration transferred                             | $ 445.7              | $ —         | $ 445.7
Assets:                                                     |                      |             |
Cash and cash equivalents(1)                                | 16.0                 | (0.2)       | 15.8
Trade receivables, net                                      | 37.3                 | —           | 37.3
Other receivables(1)                                        | 0.3                  | —           | 0.3
Inventories, net                                            | 40.7                 | (0.7)       | 40.0
Prepaid expenses and other current assets                   | 2.3                  | —           | 2.3
Property and equipment, net                                 | 79.3                 | 9.3         | 88.6
Identifiable intangible assets, net                         | 78.7                 | (1.4)       | 77.3
Goodwill                                                    | 261.3                | (7.4)       | 253.9
Operating lease right-of-use-assets                         | —                    | 4.3         | 4.3
Other non-current assets                                    | 24.7                 | 1.3         | 26.0
Total assets                                                | $ 540.6              | $ 5.2       | $ 545.8
Liabilities:                                                |                      |             |
Accounts Payable                                            | 12.0                 | —           | 12.0
Current portion of long-term debt                           | 2.6                  | —           | 2.6
Current portion of operating lease liabilities              | —                    | 1.5         | 1.5
Other current liabilities(2)                                | 56.2                 | (1.1)       | 55.1
Long-term debt, less current portion                        | 4.3                  | —           | 4.3
Long-term operating lease liabilities, less current portion | —                    | 2.8         | 2.8
Deferred taxes                                              | —                    | 0.4         | 0.4
Other non-current liabilities(2)                            | 19.8                 | 1.6         | 21.4
Total liabilities                                           | $ 94.9               | $ 5.2       | $ 100.1

August 1, 2019 Company acquired 100% Automated Packaging Systems. manufacturer automated bagging systems. acquisition Product Care reporting segment. Automated expand solutions adjacent markets.
 Automated $445. 7 million cash. preliminary balance sheet $58. 2 million assumed liabilities deferred incentive compensation plan European employees. $19. 7 million paid December 31, 2019. Sealed Air remaining payments installments two years.
 purchase price funded incremental term facility amendment Credit Agreement 14. December 31, 2019 transaction expenses Automated $3. 3 million. selling administrative expenses Consolidated Statements Operations.
 table summarizes consideration Automated preliminary allocation purchase price assets acquired liabilities assumed. preliminary adjustment. estimates finalized one year acquisition.
 August 1, 2019 $8. 6 million cash receivables balance sheet. Cash settled Automated purchase. impact Consolidated Balance Sheets September 30, 2019.
 August 1, 2019 $19.4 million recorded non liabilities preliminary balance sheet third quarter 2019 Form 10-Q filing. related second installment deferred incentive compensation plan Automated European employees. two payments expected twelve months acquisition second payment reflected current liabilities. preliminary allocation August 1 2019 shows second installment liabilities.
 Revised Preliminary
 Allocation
 millions August 1 2019 Adjustments December 31, 2019
 Total consideration transferred $ 445. 7.
 Assets
 Cash cash 16. 15.
 Trade receivables 37.
.
 Inventories 40.
 Prepaid expenses current assets 2.
 Property equipment 79.
 intangible assets 78.
 Goodwill 261. 253.
 Operating lease right-of-use-assets 4.
 non-current assets 24. 26.
 Total assets $ 540. 5. 545.
 Liabilities
 Accounts Payable 12.
 long-term debt 2. 6.
 operating lease liabilities. 5. 5
 56. 2. 55.
-term debt current 4. 3.
 lease 2. 8.
 Deferred taxes. 4.
 non-current 19. 8. 6 21. 4
 liabilities 94. 9 5. 2 100.


Acquisition-Related Expenses
We have incurred acquisition-related expenses related to our acquisition of Level 3. The table below summarizes our acquisition-related expenses, which consist of integration and transformation-related expenses, including severance and retention compensation expenses, and transaction-related expenses:
At December 31, 2019, we had incurred cumulative acquisition-related expenses of $950 million for Level 3. The total amounts of these expenses are included in our selling, general and administrative expenses.
Level 3 incurred transaction-related expenses of $47 million on the date of acquisition. This amount is not included in our results of operations.

                                                |      | Years Ended December 31, |
----------------------------------------------- | ---- | ------------------------ | ----
                                                | 2019 | 2018                     | 2017
                                                |      | (Dollars in millions)    |
Transaction-related expenses                    | $—   | 2                        | 174
Integration and transformation-related expenses | 234  | 391                      | 97
Total acquisition-related expenses              | $234 | 393                      | 271

Acquisition-Related Expenses
 Level 3. table summarizes integration transformation severance retention compensation transaction
 December 31, 2019 incurred $950 million Level 3. selling general administrative expenses.
 transaction $47 million acquisition. not included results operations.
 Ended December 31,
 2019 2018
 millions
 Transaction-related expenses 174
 Integration transformation expenses 234 391
 Total acquisition expenses $234  393


Provision (Benefit) For Income Taxes
Provision for income taxes reflects the tax provision on our operations in foreign and U.S. jurisdictions, offset by tax benefits from a partial release of valuation allowance against U.S. federal and state deferred tax assets ("DTAs") and from lapsing of statute of limitations related to uncertain tax positions in foreign jurisdictions. As of December 28, 2019, we maintain a valuation allowance of $36.6 million primarily against our California deferred tax assets and foreign tax credits, due to uncertainty about the future realization of these assets.
The benefit for income taxes in fiscal 2018 includes a $75.8 million reduction to our valuation allowance on our U.S. deferred tax assets as sufficient positive evidence existed to support the realization of such DTAs. The effective tax rate in fiscal 2018 also benefited from a lower statutory tax rate in the U.S., partially offset by higher profits in foreign jurisdictions.
Our effective tax rate may vary from period to period based on changes in estimated taxable income or loss by jurisdiction, changes to the valuation allowance, changes to U.S. federal, state or foreign tax laws, future expansion into areas with varying country, state, and local income tax rates, deductibility of certain costs and expenses by jurisdiction.

                                     |                   | Fiscal Year Ended      |
------------------------------------ | ----------------- | ---------------------- | -----------------
                                     | December 28, 2019 | December 29, 2018      | December 30, 2017
                                     |                   | (Dollars in thousands) |
Provision (benefit) for income taxes | $11,717           | $(70,109)              | $1,293
Effective tax rate                   | 22.9 %            | (206.6) %              | 3.1 %

Provision Income Taxes
 operations foreign. jurisdictions offset release valuation allowance against. federal state deferred tax assets statute limitations tax positions. December 28, 2019 valuation allowance $36. 6 million against California deferred tax assets foreign tax credits uncertainty future realization.
 2018 $75. 8 million reduction valuation allowance. deferred tax assets. tax rate lower statutory tax rate. offset higher profits foreign jurisdictions.
 tax rate vary estimated taxable income loss valuation allowance. tax laws future expansion deductibility costs expenses.
 Fiscal Year Ended
 December 28, 2019 December 29, 2018 December 30, 2017
 Provision income taxes $11,717 $(70,109) $1,293
 Effective tax rate 22. 9 %.


Our net sales by offering category for North America for 2019 and 2018, were as follows (dollars
in thousands):
Net sales in North America increased 12%, or $661.3 million, in 2019 compared to 2018. This increase reflects the addition of PCM, which reported $716.1 million in net sales in 2019, partially offset by a decline in net sales of the core business of $51.3 million. Net sales of hardware, software and services increased 10%, 14% and 25%, respectively, year over year.

         | North America |            |
-------- | ------------- | ---------- | -------
SalesMix | 2019          | 2018       | %Change
Hardware | $3,957,507    | $3,610,356 | 10%
Software | 1,269,983     | 1,112,715  | 14%
Services | 796,815       | 639,910    | 25%
         | $6,024,305    | $5,362,981 | 12%

net sales North America 2019 2018
 North America increased 12% $661. 3 million 2019. PCM $716. 1 million decline core business $51. 3 million. hardware software services increased 10% 14% 25% year.
 Hardware $3,957,507 $3,610,356
 Software 1,269,983 1,112,715
 Services 796,815 639,910
 $6,024,305 $5,362,981


3.3 DEPRECIATION AND AMORTIZATION
(1) Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections.
Fiscal 2019 depreciation and amortization expense increased by 10.9% resulting mainly from the impact of the MetroCast acquisition combined with additional depreciation from the acquisitions of property, plant and equipment during the fiscal year and the appreciation of the US dollar against the Canadian dollar compared to the prior year.

Years ended August 31,                        | 2019    | 2018 (1) | Change
--------------------------------------------- | ------- | -------- | ------
(in thousands of dollars, except percentages) | $       | $        | %
Depreciation of property, plant and equipment | 423,432 | 387,726  | 9.2
Amortization of intangible assets             | 57,293  | 45,928   | 24.7
                                              | 480,725 | 433,654  | 10.9

. DEPRECIATION AMORTIZATION
 Fiscal 2018 restated IFRS 15 accounting policy reclassify Cogeco Peer 1 discontinued operations. consult policies operations sections.
 Fiscal 2019 depreciation amortization increased. 9% MetroCast acquisition depreciation property plant equipment appreciation US dollar Canadian dollar.
 Years August 31, 2019 2018
 Depreciation property plant equipment 423,432 387,726.
 Amortization intangible assets 57,293 45,928.
 480,725,654.


Long-lived assets by geographic region were as follows (amounts in millions):
The only long-lived assets that we classify by region are our long-term tangible fixed assets, which consist of property, plant, and equipment assets, and beginning with 2019, as a result of our adoption of a new lease accounting standard, our lease ROU assets; all other long-term assets are not allocated by location.
For information regarding significant customers, see “Concentration of Credit Risk” in Note 2.

                                             |      | At December 31, |
-------------------------------------------- | ---- | --------------- | ----
                                             | 2019 | 2018            | 2017
Long-lived assets* by geographic region:     |      |                 |
Americas                                     | $322 | $203            | $197
EMEA                                         | 142  | 62              | 75
Asia Pacific                                 | 21   | 17              | 22
Total long-lived assets by geographic region | $485 | $282            | $294

Long-lived assets region
 region fixed assets property plant equipment 2019 new lease accounting standard ROU assets other not allocated location.
 of Credit Note 2.
 December 31,
 2019 2018 2017
 Long-lived assets region
 Americas $322  $203  $197
 EMEA 142  62 75
 Asia Pacific 21 17
 Total assets $485  $282  $294


20 Trade and Other Receivables
Trade receivables are non interest-bearing and are generally on 30–90 day payment terms depending on the geographical territory in which sales are generated. The carrying value of trade and other receivables also represents their fair value. During the year-ended 31 March 2019 a provision for impairment of $0.6M (2018: $0.6M) was recognised in operating expenses against receivables.
The net contract acquisition expense deferred within the Consolidated Statement of Profit or Loss was $0.9M of the total $259.9M of Sales and Marketing costs (2018: $8.4M / $239.9M).

                                              | 31 March 2019 | 31 March 2018 Restated See note 2
--------------------------------------------- | ------------- | ---------------------------------
                                              | $M            | $M
Current                                       |               |
Trade receivables                             | 128.7         | 151.8
Prepayments                                   | 26.9          | 23.1
Deferral of contract acquisition costs        | 31.5          | 29.5
Other receivables                             | 8.2           | 6.4
Total current trade and other receivables     | 195.3         | 210.8
Non-current                                   |               |
Deferral of contract acquisition costs        | 15.1          | 16.2
Other receivables                             | 1.3           | 1.3
Total non-current trade and other receivables | 16.4          | 17.5

Trade Receivables
 non interest-bearing 30–90 day payment terms territory. carrying value represents fair value.-ended 31 March 2019 provision impairment $0. 6M. operating expenses receivables.
 contract acquisition expense deferred $0. 9M $259. 9M Sales Marketing costs $8. 4M $239. 9M.
 31 March 2019 2018
 receivables 128. 151.
 Prepayments 26. 23.
 Deferral contract acquisition costs 31. 29.
 8. 6.
 195. 210.
 Non-current
 Deferral acquisition costs 15. 16.
.
 non. 17.


ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
The fair value of the Company’s qualified pension plan assets by category for the years ended December 31, are as follows:
At December 31, 2019 our plan’s assets of $14.9 million were invested in five separate funds including a multiasset fund (32.4%), a diversified growth fund (32.6%), an index-linked gilt (13.0%), corporate bonds (14.0%), and insurance contracts (7%). The asset and growth funds aim to generate an ‘equity-like’ return over an economic cycle with significantly reduced volatility relative to equity markets and have scope to use a diverse range of asset classes, including equities, bonds, cash and alternatives, e.g. property, infrastructure, high yield bonds, floating rate debt, private, equity, hedge funds and currency. The bond fund and gilt fund are invested in index-linked gilts and corporate bonds. These investments are intended to provide a degree of protection against changes in the value of our plan’s liabilities related to changes in long-term expectations for interest rates and inflation expectations.

                        |         | December 31, 2019 |         |
----------------------- | ------- | ----------------- | ------- | -------
                        | Level 1 | Level 2           | Level 3 | Total
Multi-Asset Fund        | $ —     | $4,825            | $ —     | $ 4,825
Diversified Growth Fund | —       | 4,855             | —       | 4,855
Index-Linked Gilts      | —       | 1,934             | —       | 1,934
Corporate Bonds         | —       | 2,090             | —       | 2,090
Insurance Contracts     | —       | —                 | 1,045   | 1,045
Cash                    | 154     | —                 | —       | 154
Total                   | $154    | $13,704           | $1,045  | $14,903
                        |         | December 31, 2018 |         |
                        | Level 1 | Level 2           | Level 3 | Total
Multi-Asset Fund        | $ —     | $4,570            | $—      | $4,570
Diversified Growth Fund | —       | 4,650             | —       | 4,650
Index-Linked Gilts      | —       | 2,044             | —       | 2,044
Corporate Bonds         | —       | 2,044             | —       | 2,044
Insurance Contracts     | —       | —                 | 72      | 72
Cash                    | 53      | —                 | —       | 53
Total                   | $53     | $13,308           | $72     | $13,433

ADVANCED ENERGY INDUSTRIES. FINANCIAL STATEMENTS thousands per share amounts
 value pension plan assets category years December 31,
 December 31, 2019 assets $14. 9 million invested five funds multiasset fund. diversified growth fund. index-linked gilt (13. corporate bonds. insurance contracts (7%). asset growth funds generate ‘equity return reduced volatility classes equities bonds cash alternatives. property infrastructure high yield bonds debt private equity hedge funds currency. bond fund gilt fund invested index-linked gilts corporate bonds. investments protection against interest rates inflation.
 December 31, 2019
 Multi-Asset Fund $4,825
 Diversified Growth Fund 4,855
 Index-Linked Gilts 1,934
 Corporate Bonds 2,090
 Insurance Contracts 1,045
 154
 Total $13,704
 December 31, 2018
Multi-Asset Fund $4,570
 Diversified Growth Fund 4,650
 Index-Linked Gilts 2,044
 Corporate Bonds
 Insurance Contracts 72
 Cash  53
 Total $53 $13,308 $72 $13,433


Goodwill
Goodwill consists of the excess of the consideration transferred over the fair value of net assets acquired in business combinations. Autodesk tests goodwill for impairment annually in its fourth fiscal quarter or more often if circumstances indicate a potential impairment may exist, or if events have affected the composition of reporting units.
When goodwill is assessed for impairment, Autodesk has the option to perform an assessment of qualitative factors of impairment (“optional assessment”) prior to necessitating a quantitative impairment test. Should the optional assessment be used for any given fiscal year, qualitative factors to consider include cost factors; financial performance; legal, regulatory, contractual, political, business, or other factors; entity specific factors; industry and market considerations, macroeconomic conditions, and other relevant events and factors affecting the reporting unit. If, after assessing the totality of events or circumstances, it is more likely than not that the fair value of the reporting unit is greater than its carrying value, then performing the quantitative impairment test is unnecessary.
The quantitative impairment test is necessary when either Autodesk does not use the optional assessment or, as a result of the optional assessment, it is not more likely than not that the fair value of the reporting unit is greater than its carrying value. In situations in which an entity's reporting unit is publicly traded, the fair value of the Company may be approximated by its market capitalization, in performing the quantitative impairment test.
Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value. If impairment exists, the carrying value of the goodwill is reduced to fair value through an impairment charge recorded in the Company's statements of operations. The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. The value of Autodesk’s goodwill could also be impacted by future adverse changes such as: (i) declines in Autodesk’s actual financial results, (ii) a sustained decline in Autodesk’s market capitalization, (iii) a significant slowdown in the worldwide economy or the industries Autodesk serves, or (iv) changes in Autodesk’s business strategy.
For the annual impairment test, Autodesk's market capitalization was substantially in excess of the carrying value of the Company as of January 31, 2019. Accordingly, Autodesk has determined there was no goodwill impairment during the fiscal year ended January 31, 2019. In addition, Autodesk did not recognize any goodwill impairment losses in fiscal 2018 or 2017.
The following table summarizes the changes in the carrying amount of goodwill during the fiscal years ended January 31, 2019 and 2018:
(1) Purchase accounting adjustments reflect revisions made to the Company’s preliminary determination of estimated fair value of assets and liabilities assumed during fiscal 2019 and 2018.

(in million)                                                                          | January 31, 2019 | January 31, 2018
------------------------------------------------------------------------------------- | ---------------- | ----------------
Goodwill, beginning of the year                                                       | $1,769.4         | $1,710.3
Less: accumulated impairment losses, beginning of the year                            | (149.2)          | (149.2)
Additions arising from acquisitions during the year                                   | 866.9            | —
Effect of foreign currency translation, measurement period adjustments, and other (1) | (36.3)           | 59.1
Goodwill, end of the year                                                             | $2,450.8         | $1,620.2

Goodwill
 excess consideration transferred over fair value net assets acquired. Autodesk tests goodwill for impairment annually fourth fiscal quarter if potential impairment reporting units.
 Autodesk qualitative factors impairment quantitative impairment test. factors include cost financial performance legal regulatory contractual political business factors entity specific factors industry market considerations macroeconomic conditions events affecting unit. If fair value unit greater than carrying value quantitative impairment test unnecessary.
 test necessary when optional assessment or fair value unit greater than carrying value. unit publicly traded fair value approximated by market capitalization.
 Goodwill impairment estimated fair value less than carrying value. carrying value reduced to fair value through impairment charge statements. evaluating potential impairment subjective requires judgment.Autodesk’s goodwill impacted by future changes financial results market capitalization slowdown economy changes business strategy.
 Autodesk market capitalization excess carrying value January 31, 2019. no goodwill impairment January 31, 2019. goodwill impairment losses 2018 2017.
 table summarizes changes carrying goodwill years 2019
 Purchase accounting adjustments reflect revisions estimated fair value assets liabilities 2019 2018.
 million January 31, 2019 31, 2018
 Goodwill $1,769. 4 $1,710. 3
 accumulated impairment losses (149.
 Additions from acquisitions 866.
 Effect foreign currency translation measurement period adjustments.
 Goodwill end year $2,450. $1,620.


Operating Leases and Other Contractual Commitments
VMware leases office facilities and equipment under various operating arrangements. VMware’s minimum future lease commitments and other contractual commitments at January 31, 2020 were as follows (table in millions):
(1) Amounts in the table above exclude legally binding minimum lease payments for leases signed but not yet commenced of $361 million, as well as expected sublease income.
The amount of the future lease commitments after fiscal 2025 is primarily for the ground leases on VMware’s Palo Alto, California headquarter facilities, which expire in fiscal 2047. As several of VMware’s operating leases are payable in foreign currencies, the operating lease payments may fluctuate in response to changes in the exchange rate between the U.S. dollar and the foreign currencies in which the commitments are payable.

           | Future Lease Commitments(1) | Purchase Obligations | Asset Retirement Obligations | Total
---------- | --------------------------- | -------------------- | ---------------------------- | ------
2021       | $144                        | $168                 | $1                           | $313
2022       | 141                         | 74                   | 3                            | 218
2023       | 127                         | 13                   | 2                            | 142
2024       | 101                         | —                    | —                            | 101
2025       | 77                          | —                    | 2                            | 79
Thereafter | 612                         | —                    | 5                            | 617
Total      | $1,202                      | $255                 | $13                          | $1,470

Operating Leases Contractual Commitments
 VMware leases office facilities equipment. future lease commitments January 31, 2020
 exclude lease payments $361 million sublease income.
 future lease commitments after 2025 ground leases Palo Alto headquarter facilities expire 2047. leases payable foreign currencies payments fluctuate exchange rate. currencies.
 Future Lease Commitments(1) Purchase Obligations Asset Retirement Obligations Total
 2021 $144 $168 $313
 2022 141 74 218
 2023 127 13 142
 2024 101
 2025 77 79
 612 617
 $1,202 $255 $13 $1,470


Property, plant and equipment, net
Property, plant and equipment, net consisted of the following at December 31, 2019 and 2018 (in thousands):
We periodically assess the estimated useful lives of our property, plant and equipment whenever applicable facts and circumstances indicate a change in the estimated useful life of an asset may have occurred. During the year ended December 31, 2019, we revised the estimated useful lives of certain core Series 6 manufacturing equipment from 10 years to 15 years. Such revision was primarily due to the validation of certain aspects of our Series 6 module technology, including the nature of the manufacturing process, the operating and maintenance cost profile of the manufacturing equipment, and the technology’s compatibility with our long-term module technology roadmap. We expect the revised useful lives to reduce depreciation by approximately $15.0 million per year. Depreciation of property, plant and equipment was $176.4 million, $109.1 million, and $91.4 million for the years ended December 31, 2019, 2018, and 2017, respectively.

                                     | 2019        | 2018
------------------------------------ | ----------- | -----------
Land                                 | $14,241     | $14,382
Buildings and improvements .         | 664,266     | 567,605
Machinery and equipment .            | 2,436,997   | 1,826,434
Office equipment and furniture .     | 159,848     | 178,011
Leasehold improvements               | 48,772      | 49,055
Construction in progress             | 243,107     | 405,581
Property, plant and equipment, gross | 3,567,231   | 3,041,068
Accumulated depreciation .           | (1,386,082) | (1,284,857)
Property, plant and equipment, net   | $2,181,149  | $1,756,211

Property plant equipment
 December 31, 2019 2018
 estimated useful lives. 2019 revised Series 6 equipment 10 to 15 years. due Series 6 technology long-term roadmap. reduce depreciation $15. 0 million per year. Depreciation $176. 4 million $109. 1 million $91. 4 million December 31, 2019 2018 2017.
 Land $14,241 $14,382
 Buildings improvements. 664,266,605
 Machinery equipment. 2,436,997 1,826,434
 Office equipment furniture. 159,848 178,011
 Leasehold improvements 48,772
 Construction 243,107 405,581
 Property plant equipment 3,567,231 3,041,068
 Accumulated depreciation. (1,386,082),284,857)
 $2,181,149 $1,756,211


Our financial performance
This section presents our operating performance, providing commentary on how the revenue and the adjusted EBITDA performance of the Group and its operating segments have developed over the last year. Following the adoption of IFRS 15 “Revenue from Contracts with Customers” on 1 April 2018, the Group’s statutory results for the year ended 31 March 2019 are on an IFRS 15 basis, whereas the statutory results for the year ended 31 March 2018 are on an IAS 18 basis as previously reported, with any comparison between the two bases of reporting not being meaningful. As a result, the discussion of our operating financial performance is primarily on an IAS 18 basis for all years presented. See “Alternative performance measures” on page 231 for more information and reconciliations to the closest respective equivalent GAAP measures.
Notes:
* All amounts in the Our financial performance section marked with an “*” represent organic growth which presents performance on a comparable basis, both in terms of merger and acquisition activity and movements in foreign exchange rates. Organic growth is an alternative performance measure. See “Alternative performance measures” on page 231 for further details and reconciliations to the respective closest equivalent GAAP measure.
Revenue and service revenue include the regional results of Europe, Rest of the World, Other (which includes the results of partner market activities) and eliminations. The 2019 results reflect average foreign exchange rates of €1:£0.88, €1:INR 80.93, €1:ZAR 15.92, €1:TKL 6.05 and €1: EGP 20.61.
2 Service revenue, adjusted EBITDA, adjusted EBIT and adjusted operating profit are alternative performance measures. Alternative performance measures are non-GAAP measures that are presented to provide readers with additional financial information that is regularly reviewed by management and should not be viewed in isolation or as an alternative to the equivalent GAAP measures. See “Alternative performance measures” on page 231 for more information and reconciliations to the closest respective equivalent GAAP measure and “Definition of terms” on page 250 for further details.
3 Share of adjusted results in equity accounted associates and joint ventures excludes amortisation of acquired customer bases and brand intangible assets, restructuring costs and other costs of €0.6 billion which are included in amortisation of acquired customer base and brand intangible assets, restructuring costs and other income and expense respectively.

Group1,2                                                            |            |           |           |               |
------------------------------------------------------------------- | ---------- | --------- | --------- | ------------- | ----------
                                                                    | 2019       | 2019      | 2018      | IAS 18 growth |
                                                                    | IFRS 15 €m | IAS 18 €m | IAS 18 €m | Reported %    | Organic* %
Revenue                                                             | 43,666     | 45,066    | 46,571    | (3.2)         | (0.1)
Service revenue                                                     | 36,458     | 39,220    | 41,066    | (4.5)         | (0.9)
Other revenue                                                       | 7,208      | 5,846     | 5,505     |               |
Adjusted EBITDA                                                     | 13,918     | 14,139    | 14,737    | (4.1)         | (0.5)
Depreciation and amortisation                                       | (9,665)    | (9,665)   | (9,910)   |               |
Adjusted EBIT                                                       | 4,253      | 4,474     | 4,827     | (7.3)         | (2.5)
Share of adjusted results in associates and joint ventures3         | (348)      | (291)     | 389       |               |
Adjusted operating profit                                           | 3,905      | 4,183     | 5,216     | (19.8)        | (0.2)
Adjustments for:                                                    |            |           |           |               |
Impairment loss                                                     | (3,525)    |           | –         |               |
Restructuring costs                                                 | (486)      |           | (156)     |               |
Amortisation of acquired customer bases and brand intangible assets | (583)      |           | (974)     |               |
Other income and expense                                            | (262)      |           | 213       |               |
Operating (loss)/profit                                             | (951)      |           | 4,299     |               |
Non-operating income and expense                                    | (7)        |           | (32)      |               |
Net financing costs                                                 | (1,655)    |           | (389)     |               |
Income tax (expense)/credit                                         | (1,496)    |           | 879       |               |
(Loss)/profit for the financial year from continuing operations     | (4,109)    |           | 4,757     |               |
Loss for the financial year from discontinued operations            | (3,535)    |           | (1,969)   |               |
(Loss)/profit for the financial year                                | (7,644)    |           | 2,788     |               |

financial performance
 presents operating performance revenue adjusted EBITDA Group segments year. IFRS 15 Contracts 1 April 2018 results 31 March 2019 IFRS 15 31 March 2018 18 comparison. operating financial performance IAS 18 years. “Alternative performance measures” page 231 reconciliations GAAP measures.
 financial performance organic growth comparable merger acquisition activity foreign exchange rates. alternative performance measure. “Alternative performance page 231 reconciliations.
 Revenue service revenue include regional results Europe Rest World Other market eliminations. 2019 results reflect average foreign exchange rates €1:£0. 88 €1:INR 80. 93 €1:ZAR 15. 92 €1:TKL 6. 05 €1: EGP 20. 61.
 Service revenue adjusted EBITDA EBIT operating profit alternative performance measures. non-GAAP additional financial information not. See performance page 231 reconciliations GAAP “Definition terms” page 250.
adjusted results equity associates joint ventures excludes amortisation customer bases brand intangible assets restructuring costs. 6 billion.
 IAS 18 growth
 IFRS
 Revenue 43,666  45,066  46,571 .
 Service revenue 36,458  39,220  41,066.
 Other revenue 7,208   5,505
 Adjusted EBITDA 13,918  14,139  14,737 .
 Depreciation amortisation (9,665)
 Adjusted EBIT 4,253  4,474  4,827 .
 Share adjusted results associates joint (348)
 Adjusted operating profit 3,905  4,183  5,216 .
 Adjustments
 Impairment loss (3,525)
 Restructuring costs (486)
 Amortisation customer bases brand intangible assets (583)
 Other income expense (262)
Operating (951) 4,299
 Non-operating income expense (7)
 Net financing costs (1,655) (389)
 Income tax (1,496)
 continuing operations (4,109)
 Loss discontinued operations (3,535) (1,969)
 (7,644) 2,788


Item 6. Selected Financial Data
You should read the following selected consolidated financial data in conjunction with Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," and our consolidated financial statements and the related notes included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Annual Report on Form 10-K.
The consolidated statements of income data for each of the years ended December 31, 2019, 2018, and 2017 and the consolidated balance sheets data as of December 31, 2019 and 2018 are derived from our audited consolidated financial statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Annual Report on Form 10-K. The consolidated statements of income data for the years ended December 31, 2016 and 2015 and the consolidated balance sheets data as of December 31, 2017, 2016, and 2015 are derived from our audited consolidated financial statements, except as otherwise noted, that are not included in this Annual Report on Form 10-K. Our historical results are not necessarily indicative of our results in any future period.
(1) Total costs and expenses include 4,840 million, 4,150 million, 3,720 million, 3,220 million, and 2,970 million of share-based compensation for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, respectively.

                                                                            |         |         | Year Ended December 31,              |         |
--------------------------------------------------------------------------- | ------- | ------- | ------------------------------------ | ------- | -------
                                                                            | 2019    | 2018    | 2017                                 | 2016    | 2015
                                                                            |         |         | (in millions, except per share data) |         |
Consolidated Statements of Income Data:                                     |         |         |                                      |         |
Revenue                                                                     | $70,697 | $55,838 | $40,653                              | $27,638 | $17,928
Total costs and expenses(1)                                                 | $46,711 | $30,925 | $20,450                              | $15,211 | $11,703
Income from operations                                                      | $23,986 | $24,913 | $20,203                              | $12,427 | $6,225
Income before provision for income taxes                                    | $24,812 | $25,361 | $20,594                              | $12,518 | $6,194
Net income                                                                  | $18,485 | $22,112 | $15,934                              | $10,217 | $3,688
Net income attributable to Class A and Class B common stockholders          | $18,485 | $22,111 | $15,920                              | $10,188 | $3,669
Earnings per share attributable to Class A and Class B common stockholders: |         |         |                                      |         |
Basic                                                                       | $6.48   | $7.65   | $5.49                                | $3.56   | $1.31
Diluted                                                                     | $6.43   | $7.57   | $5.39                                | $3.49   | $1.29

Item 6. Financial Data
 consolidated financial data Part II Item 7 Discussion Analysis Financial Condition Results Operations consolidated financial statements notes Part II Item 8 Annual Report Form 10-K.
 consolidated statements income December 31, 2019 2018 2017 balance sheets statements Part II 8. income December 31, 2016 2015 balance sheets statements. historical results not indicative future.
 costs expenses include 4,840 million 4,150 million 3,720 million 3,220 million 2,970 million share-based compensation years December 31, 2019 2018 2017 2016, 2015,.
 2016
 Consolidated Statements Income Data
 Revenue $70,697  $55,838  $40,653 $27,638 $17,928
 Total costs $46,711 $30,925 $20,450 $15,211 $11,703
 Income operations $23,986  $24,913  $20,203 $12,427  $6,225
taxes $24,812 $25,361 $20,594 $12,518 $6,194
 $18,485 $22,112 $15,934 $10,217 $3,688
 B stockholders $18,485 $22,111 $15,920 $10,188 $3,669
 Earnings share
 $6. $7. $5.
 $6. $7. $5.


Repurchase of Company Shares
In November 2018, the Board of Directors authorized management to repurchase up to an additional $5.0 billion of Common Stock on such terms and conditions as it deems appropriate. These repurchases can be conducted on the open market or as private purchases and may include the use of derivative contracts with large financial institutions, in all cases subject to compliance with applicable law. This repurchase program has no termination date and may be suspended or discontinued at any time. Funding for this share repurchase program may be through a combination of cash on hand, cash generation, and borrowings. As of June 30, 2019, we have purchased approximately $2.0 billion of shares under this authorization, $0.5 billion via open market trading and $1.5 billion utilizing accelerated share repurchase arrangements.
Accelerated Share Repurchase Agreements
On June 4, 2019, we entered into four separate accelerated share repurchase agreements (collectively, the “June 2019 ASR”) with two financial institutions to repurchase a total of $750 million of Common Stock. We took an initial delivery of approximately 3.1 million shares, which represented 75% of the prepayment amount divided by our closing stock price on June 4, 2019. The total number of shares received under the June 2019 ASR will be based upon the average daily volume weighted average price of our Common Stock during the repurchase period, less an agreed upon discount. Final settlement of the June 2019 ASR is anticipated to occur no later than November 20, 2019.
On January 31, 2019, we entered into two separate accelerated share repurchase agreements (collectively, the “January 2019 ASR”) with two financial institutions to repurchase a total of $760 million of Common Stock. We took an initial delivery of approximately 3.3 million shares, which represented 75% of the prepayment amount divided by our closing stock price on January 30, 2019. The total number of shares received under the January 2019 ASR was based upon the average daily volume weighted average price of our Common Stock during the repurchase period, less an agreed upon discount. Final settlement of the agreements occurred during May 2019, resulted in the receipt of approximately 0.8 million additional shares, which yielded a weighted-average share price of approximately $182.32 for the transaction period.
Share repurchases, including those under the repurchase program, were as follows:
(1) During the fiscal year ended June 30, 2019, we acquired 0.5 million shares at a total cost of $80.5 million which we withheld through net share settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under our equity compensation plans. The shares retained by us through these net share settlements are not a part of the Board-authorized repurchase program but instead are authorized under our equity compensation plan.
(2) Average price paid per share excludes effect of accelerated share repurchases, see additional disclosure above regarding our accelerated share repurchase activity during the fiscal year.

Period                                            | Total Number of Shares Repurchased (1) | Average Price Paid per Share(2)       | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Amount Available Under Repurchase Program
------------------------------------------------- | -------------------------------------- | ------------------------------------- | -------------------------------------------------------------------------------- | -----------------------------------------
                                                  |                                        | (in thousands, except per share data) |                                                                                |
Available balance as of June 24, 2018             |                                        |                                       |                                                                                | $1,733,638
Quarter ended September 23, 2018                  | 7,821                                  | $183.46                               | 7,807                                                                            | 108
Board authorization, $5.0 billion, November  2018 |                                        |                                       |                                                                                | 5,000,000
Quarter ended December 23, 2018                   | 1,693                                  | $145.30                               | 1,683                                                                            | 5,000,000
Quarter ended March 31, 2019                      | 6,125                                  | $172.06                               | 5,702                                                                            | 4,138,494
April 1, 2019 - April 28, 2019                    | 3                                      | $193.52                               | —                                                                                | 4,138,494
April 29, 2019 - May 26, 2019                     | 1,147                                  | $190.89                               | 1,143                                                                            | 3,920,258
May 27, 2019 - June 30, 2019                      | 4,728                                  | $176.68                               | 4,724                                                                            | 3,033,500
Total                                             | 21,517                                 | $181.72                               | 21,059                                                                           | $ 3,033,500

Repurchase Company Shares
 November 2018 Board Directors authorized management repurchase additional $5. 0 billion Common Stock. repurchases open market private derivative contracts financial institutions subject compliance law. program no termination suspended discontinued. Funding cash cash generation borrowings. June 30, 2019 purchased $2. 0 billion $0. 5 billion open market trading $1. 5 billion accelerated share repurchase arrangements.
 June 4, 2019 two financial institutions repurchase $750 million Common Stock. initial delivery 3. 1 million shares 75% prepayment closing stock price June 4. total shares based average daily volume price Common Stock less discount. Final settlement November 20, 2019.
 January 31, 2019 two agreements repurchase $760 million Common Stock. initial delivery 3. 3 million shares 75% prepayment closing stock price. total shares based average daily volume price Common Stock less discount.settlement agreements May 2019 receipt. 8 million additional shares-average share price $182. 32.
 Share repurchases
 fiscal year June 30 2019 acquired. 5 million shares $80. 5 million withheld net share settlements tax restricted stock awards equity compensation plans. shares retained not Board-authorized repurchase program authorized equity compensation plan.
 Average price paid per share excludes accelerated share repurchases.
 Total Number Shares Repurchased Average Price Paid per Shares Publicly Announced Plans Programs Amount Repurchase Program
 balance June 24, 2018 $1,733,638
 Quarter September 23, 2018 $183.
 Board authorization $5. billion November 2018
 Quarter December 23, 2018 1,693 $145.
 Quarter March 31, 2019,125 $172. 4,138,494
 April 1, 28,.
 April 26, $190.1,143,258
 May June 30 $176. 3,033,500
 21,517 $181. 21,059 3,033


31. NET DEFERRED GAIN (Cont’d)
NetLink Trust (“NLT”) is a business trust established as part of the Info-communications Media Development Authority of Singapore’s effective open access requirements under Singapore’s Next Generation Nationwide Broadband Network.
In prior years, Singtel had sold certain infrastructure assets, namely ducts, manholes and exchange buildings (“Assets”) to NLT. At the consolidated level, the gain on disposal of Assets recognised by Singtel is deferred in the Group’s statement of financial position and amortised over the useful lives of the Assets. The unamortised deferred gain is released to the Group’s income statement when NLT is partially or fully sold, based on the proportionate equity interest disposed.
Singtel sold its 100% interest in NLT to NetLink NBN Trust (the “Trust”) in July 2017 for cash as well as a 24.8% interest in the Trust. Net deferred gains of S$1.10 billion were correspondingly released to the Group’s income statement in the previous financial year upon this sale. Following the divestment, Singtel ceased to own units in NLT but continues to have an interest of 24.8% in the Trust which owns all the units in NLT.

Singtel sold its 100% interest in NLT to NetLink NBN Trust (the “Trust”) in July 2017 for cash as well as a 24.8% interest in the Trust. Net deferred gains of S$1.10 billion were correspondingly released to the Group’s income statement in the previous financial year upon this sale. Following the divestment, Singtel ceased to own units in NLT but continues to have an interest of 24.8% in the Trust which owns all the units in NLT.

                                                 |          | Group    |
------------------------------------------------ | -------- | -------- | -------
                                                 | 31 March | 31 March | 1 April
                                                 | 2019     | 2018     | 2017
                                                 | S$ Mil   | S$ Mil   | S$ Mil
Unamortised deferred gain                        | 446.3    | 452.7    | 1,616.5
Reclassification from ‘Associates’ (see Note 23) | (50.5)   | (74.9)   | (265.0)
Net deferred gain                                | 395.8    | 377.8    | 1,351.5
Classified as –                                  |          |          |
Current                                          | 20.8     | 20.1     | 68.8
Non-current                                      | 375.0    | 357.7    | 1,282.7
                                                 | 395.8    | 377.8    | 1,351.5

. NET DEFERRED GAIN
 NetLink Trust Info-communications Media Development Authority Next Generation Nationwide Broadband Network.
 Singtel sold infrastructure assets manholes exchange buildings NLT. gain on disposal deferred financial position amortised over lives. unamortised deferred gain released income when NLT or sold equity.
 Singtel sold 100% interest NLT NetLink NBN Trust July 2017 for cash 24. 8% interest. Net deferred gains S$1. 10 billion released income year. Singtel ceased units NLT interest 24. 8%.
 Singtel sold 100% interest NLT NetLink Trust July 2017 for cash 24. 8% interest. Net deferred gains S$1. 10 billion released. Singtel ceased own units interest 24. 8% Trust units.
 31 March 1 April
 2019 2018
 Unamortised deferred gain 446. 1,616.
Reclassification Note 23 (50. 9).
 deferred gain 395. 377. 8 1,351.
 20. 8. 68.
 Non-current 375. 357. 7 1,282.
. 1,351.


5. Income taxes: (Continued)
Our consolidated temporary differences comprising our net deferred tax assets are as follows (in thousands):
At each balance sheet date, the Company assesses the likelihood that it will be able to realize its deferred tax assets. The Company considers all available positive and negative evidence in assessing the need for a valuation allowance. The Company maintains a full valuation allowance against certain of its deferred tax assets consisting primarily of net operating loss carryforwards related to its foreign operations in Canada, Europe, Asia, Latin America and Australia and net operating losses in the United States that are limited for use under Section 382 of the Internal Revenue Code.
As of December 31, 2019, the Company has combined net operating loss carry-forwards of $994.0 million. This amount includes federal net operating loss carry-forwards in the United States of $97.6 million, net operating loss carry-forwards related to its European, Mexican, Canadian and Asian operations of $890.1 million, $3.3 million, $1.8 million and $1.0 million, respectively. Section 382 of the Internal Revenue Code in the United States limits the utilization of net operating losses when ownership changes, as defined by that section, occur. The Company has performed an analysis of its Section 382 ownership changes and has determined that the utilization of certain of its net operating loss carryforwards in the United States is limited based on the annual Section 382 limitation and remaining carryforward period. Of the net operating losses available at December 31, 2019 in the United States $38.4 million are limited for use under Section 382. Net operating loss carryforwards outside of the United States totaling $896.4 million are not subject to limitations similar to Section 382. The net operating loss carryforwards in the United States will expire, if unused, between 2025 and 2036. The net operating loss carry-forwards related to the Company's Mexican, Asian and Canadian operations will expire if unused, between 2020 and 2029. The net operating loss carry- forwards related to the Company's European operations include $744.6 million that do not expire and $145.5 million that expire between 2020 and 2035.
Other than the $2.3 million transition tax recorded in the year ended December 31, 2017 as a result of its foreign earnings the Company has not provided for United States deferred income taxes or foreign withholding taxes on its undistributed earnings for certain non-US subsidiaries earnings or cumulative translation adjustments because these earnings and adjustments are intended to be permanently reinvested in operations outside the United States. It is not practical to determine the amount of the unrecognized deferred tax liability on such undistributed earnings or cumulative translation adjustments.

                                      | December 31, |
------------------------------------- | ------------ | ---------
                                      | 2019         | 2018
Deferred Tax Assets:                  |              |
Net operating loss carry-forwards     | $255,269     | $255,235
Tax credits                           | 2,261        | 2,458
Equity-based compensation             | 4,116        | 3,322
Operating leases                      | 32,289       | —
Total gross deferred tax assets       | 293,935      | 261,015
Valuation allowance                   | (131,069)    | (126,579)
                                      | 162,866      | 134,436
Deferred Tax Liabilities:             |              |
Depreciation and amortization         | 34,884       | 29,769
Accrued liabilities and other         | 107,711      | 101,934
Right-of-use assets                   | 29,670       | —
Gross deferred tax liabilities        | 172,265      | 131,703
Net deferred tax (liabilities) assets | $(9,399)     | $2,733

. Income taxes
 consolidated differences deferred tax assets
 Company assesses likelihood deferred tax assets. considers evidence valuation allowance. maintains full valuation allowance against deferred tax assets net operating loss carryforwards foreign operations Canada Europe Asia Latin America Australia United States limited Section 382 Internal Revenue Code.
 December 31, 2019 Company combined net operating loss carry-forwards $994. 0 million. federal $97. 6 million European Mexican Canadian Asian operations $890. 1 million $3. 3 million $1. 8 million $1. 0 million. Section 382 limits utilization ownership changes. utilization carryforwards limited 382 limitation. losses December 31, 2019 $38. 4 million limited Section 382. loss carryforwards outside States $896. 4 million not subject limitations. carryforwards United States expire 2025 2036. Mexican Asian Canadian operations 2020 2029. loss European operations include $744. 6 million $145.million expire 2020 2035.
 $2. 3 million transition tax December 2017 Company States deferred income undistributed non-US subsidiaries. unrecognized deferred tax liability.
 Deferred Tax Assets
 Net operating loss carry-forwards $255,269
 Tax credits 2,261
 Equity compensation 4,116
 Operating leases 32,289
 deferred tax assets 293,935 261,015
 Valuation allowance (131,069)
 Deferred Tax Liabilities
 Depreciation amortization 34,884
 Accrued liabilities 107,711
 Right-of-use assets 29,670
 Gross deferred tax liabilities 172,265 131,703
 Net deferred tax $,399) $2,733


The funded status of the plans was as follows:
(in thousands)

                                    | Years Ended March 31, |
----------------------------------- | --------------------- | ---------
                                    | 2019                  | 2018
Fair value of plan assets           | $90,365               | $84,718
Less: projected benefit obligations | 143,662               | 128,915
Underfunded status                  | $(53,297)             | $(44,197)

funded status plans
 Ended March 31,
 assets $90,365 $84,718
 obligations 143,662 128,915
 Underfunded $(53,297 $(44,197)


Property and Equipment
Property and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over their estimated useful lives based on asset class. As of December 31, 2019 and 2018, net property and equipment consisted of the following (in thousands):

                               |                                                                 | December 31, |
------------------------------ | --------------------------------------------------------------- | ------------ | ----------
                               | Useful Lives                                                    | 2019         | 2018
Computer and office equipment  | 3 - 5 years                                                     | $143,942     | $129,359
Leasehold improvements lease   | Lesser of useful life of improvement or remaining life of lease | 33,346       | 32,096
Furniture and fixtures         | 7 years                                                         | 12,980       | 12,500
Building and improvements      | 7 - 30 years                                                    | 14,553       | 14,381
Land                           | Non-depreciable                                                 | 1,785        | 1,785
Property and equipment, gross  |                                                                 | 206,606      | 190,121
Less: accumulated depreciation |                                                                 | (136,226 )   | (117,392 )
Property and equipment, net    |                                                                 | $ 70,380     | $ 72,729

Property Equipment
 cost. Depreciation computed-line estimated lives. December 31, 2019 2018 net property equipment
 Computer office equipment 3 - 5 years $143,942 $129,359
 Leasehold improvements 33,346
 Furniture fixtures 7 years 12,980
 Building improvements 7 - 30 years 14,553
 Land Non-depreciable 1,785
 Property equipment 206,606 190,121
 accumulated depreciation (136,226 (117,392
 $ 70,380 $ 72,729


Markets and Pricing
The three largest customer markets in the fresh and frozen chicken industry are food service customers that purchase fresh, bulk-packed products produced from a relatively big bird, retail grocery store customers that purchase fresh, tray- packed products produced from a medium-sized bird, and quick-serve food service customers that purchase products produced from relatively small birds.
The following table sets forth, for each of the Company’s poultry processing plants, the general customer market to which the plant is devoted, the weekly capacity of each plant at full capacity expressed in number of head processed, and the industry's average size of birds processed in the relevant market.
Our big bird plants process a relatively large bird. The chicken products produced at these plants is generally sold as fresh, bulk-packed chicken cut into a variety of products, including boneless breast meat, chicken tenders, whole and cut wings and boneless thigh meat, and is sold primarily to restaurants, food service customers and further processors at negotiated spreads from quoted commodity market prices for those products. We have long-term contracts with many of our customers for these products produced at our big bird plants, but prices for products sold pursuant to those contracts fluctuate based on quoted commodity market prices. The contracts do not require the customers to purchase, or the Company to sell, any specific quantity of product. The dark meat from these birds that is not deboned is sold primarily as frozen leg quarters in the export market or as fresh whole legs to further processors. While we have long-standing relationships with many of our export partners, virtually all of our export sales are at negotiated or spot commodity prices, which prices exhibit fluctuations typical of commodity markets. We have few long-term contracts for this product.
As of October 31, 2019, the Company had the capacity to process 7.1 million head per week in its big bird plants, and its results are materially affected by fluctuations in the commodity market prices for boneless breast meat, chicken tenders, wings, leg quarters and boneless thigh meat as quoted by Urner Barry.
Urner Barry is an independent company specializing in the timely, accurate and independent reporting on market news and market price quotations to its customers in various food and protein industries, including poultry. The Urner Barry spot market prices for boneless breast meat, chicken tenders, leg quarters, whole wings and boneless thighs for the past five calendar years are set forth below and are published with Urner Barry's permission. Realized prices will not necessarily equal quoted market prices since most contracts offer negotiated discounts to quoted market prices, which discounts are negotiated on a customer by customer basis and are influenced by many factors. Selection of a particular market price benchmark is largely customer driven:
Our chill-pack plants process medium sized birds and cut and package the product in various sized individual trays to customers’ specifications. The trays are weighed and pre-priced primarily for customers to resell through retail grocery outlets. While the Company sells some of its chill-pack product under store brand names, most of its chill-pack production is sold under the Company’s Sanderson Farms® brand name. The Company has long-term contracts with most of its chill-pack customers. These agreements typically provide for the pricing of product based on agreed upon, flat prices or on negotiated formulas that use an agreed upon, regularly quoted market price as the base, as well as various other guidelines for the relationship between the parties. All of our contracts with retail grocery store customers also provide for the sale of negotiated quantities of product at periodically negotiated prices, rather than the flat and formula-driven prices discussed above. None of our contracts with retail grocery store customers require the customers to purchase, or the Company to sell, any specific quantity of product. As of October 31, 2019, the Company had the capacity to process 6.5 million head per week at its chill-pack plants, and its results are materially affected by fluctuations in Urner Barry prices and other market benchmarks.
As with products produced at our big bird plants, selection of the desired methodology for pricing chill-pack products is largely customer driven. Prior to the discontinuation in November 2016 of the Georgia Dock index, which had been published by the Georgia Department of Agriculture, many of our chill-pack customers used that index as the base for pricing formulas. As new and renewing contracts have been negotiated, many of our chill-pack customers chose to negotiate flat prices for the life of the contracts, while some of our customers have chosen to use an index published by Express Markets, Inc. ("EMI").
Almost all of our products sold by our prepared chicken plant are sold under long-term contracts at fixed prices related to the spot commodity price of chicken at the time the contract is negotiated, plus a premium for additional processing.

Plant Location            | Market            | Capacity Per Week   | Industry Bird Size
------------------------- | ----------------- | ------------------- | ------------------
Laurel, Mississippi       | Big Bird          | 650,000             | 8.95
Hammond, Louisiana        | Big Bird          | 650,000             | 8.95
Hazlehurst, Mississippi   | Big Bird          | 650,000             | 8.95
Collins, Mississippi      | Big Bird          | 1,300,000           | 8.95
Waco, Texas               | Big Bird          | 1,300,000           | 8.95
Palestine, Texas          | Big Bird          | 1,300,000           | 8.95
St. Pauls, North Carolina | Big Bird          | 1,300,000           | 8.95
McComb, Mississippi       | Chill-Pack Retail | 1,300,000           | 6.52
Bryan, Texas              | Chill-Pack Retail | 1,300,000           | 6.52
Moultrie, Georgia         | Chill-Pack Retail | 1,300,000           | 6.52
Kinston, North Carolina   | Chill-Pack Retail | 1,300,000           | 6.52
Tyler, Texas              | Chill-Pack Retail | 1,300,000           | 6.52

Markets Pricing
 three largest markets in fresh frozen chicken industry food service retail medium-sized quick-serve small.
 table poultry processing plants customer market weekly capacity average size birds.
 big bird plants process large bird. chicken products sold as fresh bulk-packed chicken boneless breast meat chicken tenders whole wings boneless thigh meat to restaurants food service customers further processors at negotiated spreads from commodity market prices. long-term contracts for products prices fluctuate based commodity market prices. require quantity. dark meat sold as frozen leg quarters or fresh whole legs. sales at negotiated spot commodity prices. few long-term contracts for product.
 October 31, 2019 Company process 7. 1 million head per week bird plants results affected by fluctuations commodity market prices for boneless breast meat chicken tenders wings leg quarters boneless thigh meat.
Urner Barry independent company reporting market news price quotations food protein industries including poultry. Urner Barry spot market prices for boneless breast meat chicken tenders leg quarters whole wings boneless thighs past five years published with permission. Realized prices not equal quoted market prices contracts offer negotiated discounts. Selection market price benchmark customer driven
 chill-pack plants process medium sized birds package product trays to specifications. trays weighed pre-priced for retail grocery outlets. sells product under brand names Sanderson Farms® brand name. long-term contracts with chill-pack customers. pricing flat prices negotiated formulas guidelines. contracts with sale negotiated quantities negotiated prices. contracts require specific quantity. As October 31, 2019 process 6. 5 million head per week plants results affected by fluctuations Urner Barry prices market benchmarks.
 pricing chill-pack customer driven.discontinuation November 2016 Georgia Dock index published Georgia Department of Agriculture chill-pack customers used index pricing formulas. new contracts negotiated flat prices some index Express Markets Inc.
 products sold prepared chicken plant long-term contracts at fixed prices spot commodity price chicken premium for additional processing.
 Plant Location  Market Capacity Per Week Industry Bird Size
 Laurel, Mississippi Big Bird 650,000 .
 Hammond, Louisiana.
 Hazlehurst, Mississippi.
 Collins, Mississippi 1,300,000.
 Waco, Texas.
 Palestine Texas.
. Pauls, North Carolina.
 McComb, Mississippi 1,300,000.
 Bryan, Texas 1.
 Moultrie, Georgia 1.
 Kinston, North Carolina.
 Tyler, Texas 1,300,000.


Transactions involving stock options issued to employees are summarized as follows:
The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms, vesting schedules, exercise patterns and pre-vesting and post-vesting forfeitures. The Company estimates the volatility of the Company’s common stock based on the calculated historical volatility of the Company’s common stock using the share price data for the trailing period equal to the expected term prior to the date of the award. The Company bases the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award. The Company has not paid any cash dividends on the Company’s common stock and does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero in the Black-Scholes option valuation model. The Company uses historical data to estimate pre-vesting option forfeitures and records share-based compensation for those awards that are expected to vest. In accordance with ASC 718-10, the Company calculates share-based compensation for changes to the estimate of expected equity award forfeitures based on actual forfeiture experience.

                                 | Number of Shares | Weighted Average Exercise Price Per Share
-------------------------------- | ---------------- | -----------------------------------------
Outstanding at January 1, 2018   | 4,376,474        | $0.16
Granted                          | 67,394           | 0.17
Exercised                        | –                | –
Cancelled or expired             | (1,094,075)      | 0.14
Outstanding at December 31, 2018 | 3,349,793        | $0.16
Granted                          | –                | –
Exercised                        | –                | –
Cancelled or expired             | –                | –
Outstanding at December 31, 2019 | 3,349,793        | $0.16

Transactions stock options employees
 expected life awards represents. Company determines life experience contractual terms vesting schedules exercise patterns pre forfeitures. estimates volatility common stock historical volatility price data term award. bases risk-free interest rate Black-Scholes option valuation model implied yield U. S. Treasury zero-coupon issues term life. paid cash dividends anticipate. uses expected dividend yield zero Black-Scholes option valuation model. uses historical data pre-vesting option forfeitures records share-based compensation awards expected vest. calculates compensation equity award forfeitures forfeiture experience.
 Weighted Average Exercise Price Per Share
 Outstanding January 1, 2018 4,376,474.
 Granted.
 Exercised
 Cancelled expired (1,094,075).
 December 31, 2018 3,349,793.
 Granted
 Cancelled expired
 December 31, 2019 3,349,793.


Annual Dividends Paid and Proposed
The following table sets forth in euro the annual dividends paid or proposed to be paid per ordinary share in respect of each of the years indicated. One SAP ADR currently represents one SAP SE ordinary share. Accordingly, the final dividend per ADR is equal to the dividend for one SAP SE ordinary share and is dependent on the euro/U.S. dollar exchange rate. The table does not reflect tax credits that may be available to German taxpayers who receive dividend payments. If you own our ordinary shares or ADRs and if you are a U.S. resident, refer to “Item 10. Additional Information — Taxation,” for further information.
(1) Translated for the convenience of the reader from euro into U.S. dollars at the Noon Buying Rate for converting euro into U.S. dollars on the dividend payment date. The Depositary is required to convert any dividend payments received from SAP as promptly as practicable upon receipt.
(2) Subject to approval at the Annual General Meeting of Shareholders of SAP SE currently scheduled to be held on May 15, 2020.
(3) Translated for the convenience of the reader from euro into U.S. dollars at the Noon Buying Rate for converting euro into U.S. dollars on February 7, 2020 of US$1.0950 per €1.00. The dividend paid may differ due to changes in the exchange rate.
The amount of dividends paid on the ordinary shares depends on the amount of profits to be distributed by SAP SE, which depends in part upon our financial performance. In addition, the amount of dividends received by holders of ADRs may be affected by fluctuations in exchange rates (see “Item 3. Key Information — Exchange Rates”). The timing, declaration, amount and payment of any future dividend will depend upon our future earnings, capital needs and other relevant factors, in each case as proposed by the Executive Board and the Supervisory Board of SAP SE and approved by the Annual General Meeting of Shareholders.
In light of SAP’s strong financial performance and healthy balance sheet, the Supervisory Board of SAP SE approved, on November 4, 2019, the Executive Board’s plan for enhanced capital return in 2020. Under this new program, the Company intends to repurchase shares and/or issue a special dividend with a combined volume of €1.5 billion by December 31, 2020.

                        | Dividend Paid per Ordinary Share |
----------------------- | -------------------------------- | -------------
Year Ended December 31, | €                                | US$
2015                    | 1.15                             | 1.30 (1)
2016                    | 1.25                             | 1.37 (1)
2017                    | 1.40                             | 1.65 (1)
2018                    | 1.50                             | 1.68 (1)
2019 (proposed)         | 1.58 (2)                         | 1.73 (2), (3)

Annual Dividends Paid Proposed
 table euro annual dividends per ordinary share. One SAP ADR represents one SAP SE ordinary share. final dividend per ADR equal one SAP SE share euro/U. dollar exchange rate. tax credits German taxpayers. shares ADRs U. resident refer “Item 10. Additional Information Taxation.
 Translated euro into. dollars. dividend Depositary convert dividend payments receipt.
 approval Annual General Meeting Shareholders SAP May 15, 2020.
 Translated euro. dollars Noon converting. February 7, 2020 US$1. 0950 per €1. dividend differ exchange rate.
 dividends depends profits SAP SE financial performance. dividends ADRs affected exchange rates “Item 3. Key Information Exchange. timing amount payment future dividend future earnings capital needs factors proposed Executive Board Supervisory Board SAP approved Annual General Meeting Shareholders.
strong financial performance balance Supervisory Board approved November 4 2019 plan enhanced capital return 2020. Company repurchase shares issue special dividend €1. 5 billion December 31, 2020.
 Dividend Paid Ordinary Share
 Ended December 31, US$
 2015. 15. 30
. 25. 37
. 65
. 50. 68
. 58. 73