Property and equipment consist of the following (in thousands):
Depreciation expense was $1.2 million and $1.6 million for the years ended December 31, 2019 and 2018, respectively.
Amortization of capitalized internal-use software and website development costs was $157,000 and $247,000 for the years ended December 31, 2019 and 2018, respectively.

December 31,                                              |          |
--------------------------------------------------------- | -------- | --------
                                                          | 2019     | 2018
Computer hardware and software                            | $3,427   | $3,353
Office equipment and office furniture                     | 8,148    | 7,814
Capitalized internal-use software and website development | 4,390    | 4,383
Leasehold improvements                                    | 6,247    | 6,140
                                                          | 22,212   | 21,690
Less accumulated depreciation and amortization            | (19,230) | (17,900)
Total                                                     | $2,982   | $3,790

Property equipment
 Depreciation $1. 2 million $1. 6 million December 2019 2018.
 Amortization software website $157,000 $247,000.
 Computer hardware software $3,427 $3,353
 Office equipment furniture 8,148
 software website development 4,390
 Leasehold improvements 6,247
 depreciation amortization (19,230
 $2,982 $3,790


The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the award vesting term of four years. Forfeitures are accounted for as they occur.
Total stock-based compensation cost capitalized in inventory was less than $0.8 million in the years ended December 31, 2019, 2018 and 2017.
As of December 31, 2019, $7.8 million of unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.1 years and $41.3 million of unrecognized compensation cost related to unvested RSUs is expected to be recognized over a weighted-average period of 2.2 years. If there are any modifications or cancellations of the underlying unvested awards, the Company may be required to accelerate, increase or cancel all or a portion of the remaining unearned stock-based compensation expense.
The  following  table  sets  forth  the  stock-based  compensation  expense  resulting  from  stock  options,  RSUs,  and  the  ESPP  included  in  the  Company’s consolidated statements of operations:

                           |         | Year Ended December 31, |
-------------------------- | ------- | ----------------------- | -------
                           | 2019    | 2018                    | 2017
                           |         | (In thousands)          |
Cost of revenue            | $2,843  | $2,435                  | $1,406
Research and development   | 6,532   | 4,283                   | 2,968
Sales and marketing        | 9,069   | 8,267                   | 5,481
General and administrative | 10,693  | 11,476                  | 9,114
Total                      | $29,137 | $26,461                 | $18,969

Company recognizes compensation costs service period four years. Forfeitures accounted.
 stock-based compensation cost less than $0. 8 million December 2019 2018 2017.
 December 2019 $7. 8 million unrecognized stock options 2. 1 years $41. 3 million unvested RSUs 2. years. modifications cancellations awards accelerate increase cancel unearned stock compensation expense.
 table stock-based compensation expense stock options RSUs ESPP consolidated statements operations
 Year Ended December 31,
 Cost revenue $2,843 $2,435 $1,406
 Research development 6,532
 Sales marketing 9,069
 General administrative 10,693
 Total $29,137 $26,461 $18,969


Note 11. Non-current assets - deferred tax assets
Critical accounting judgements, estimates and assumptions
Deferred tax assets are recognised for deductible temporary differences only if the Group considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Calculation of future taxable amounts involve the use of assumptions and management judgments.
A deferred tax asset can only be recorded for the portion of a potential benefit where utilisation is considered probable. The assessment of future taxable amounts involves the use of assumptions and management judgments. The Group has fully recognised a deferred tax asset of $79.3m in relation to assets previously transferred to USA. It is considered probable that there will be future taxable income in the USA to fully realise these temporary differences.

Consolidated                                                        |        |
------------------------------------------------------------------- | ------ | ------
                                                                    | 2019   | 2018
                                                                    | US$000 | US$000
Deferred tax asset comprises temporary differences attributable to: |        |
Amounts recognised in profit or loss:                               |        |
Tax losses                                                          | 2,068  | 688
Property, plant and equipment                                       | (176)  | 58
Employee benefits                                                   | 608    | 235
Employee entitlements                                               | 714    | -
Intellectual property                                               | 79,260 | 79,011
Revenue received in advance                                         | 633    | 1,019
Provisions                                                          | 1,054  | 328
Foreign currency translation                                        | 613    | 534
Tax credits                                                         | 17     | -
Deferred rent                                                       | 82     | 163
                                                                    | 84,873 | 82,036
Amounts recognised in equity:                                       |        |
Transaction costs on share issue                                    | -      | 84
Deferred tax asset                                                  | 84,873 | 82,120
Amount expected to be recovered within 12 months                    | 26,588 | 26,995
Amount expected to be recovered after more than 12 months           | 58,285 | 55,125
Movements:                                                          |        |
Opening balance                                                     | 82,120 | 82,946
Credited/(charged) to profit or loss (note 5)                       | 2,440  | (933)
Additions through business combinations (note 28)                   | 314    | 105
Translation differences                                             | (1)    | 2
Closing balance                                                     | 84,873 | 82,120

11. Non-current assets deferred tax assets
 assets recognised for deductible differences Group probable future taxable amounts. Calculation amounts assumptions management judgments.
 deferred tax asset recorded potential benefit probable. Group recognised deferred tax asset $79. 3m assets transferred USA. probable future taxable income USA temporary differences.
 Deferred tax asset comprises temporary differences
 Amounts recognised profit loss
 Tax losses 2,068
 Property plant equipment
 Employee benefits
 entitlements
 Intellectual property 79,260
 Revenue received advance
 Provisions
 Foreign currency translation
 Tax credits
 Deferred rent
 84,873
 Amounts recognised in equity
 Transaction costs on share issue
 Deferred tax asset
 recovered within 12 months 26,588
 after more 12 months 58,285 55,125
balance 82,120
 Credited profit loss 2,440
 Additions 314
 Translation differences
 Closing balance 84,873 82,120


1. Description of the business and summary of significant accounting policies: (Continued)
Shares of restricted stock are included in the computation of basic EPS as they vest and are included in diluted EPS, to the extent they are dilutive, determined using the treasury stock method.
The following details the determination of the diluted weighted average shares:

                                     | Year Ended December 31, 2019 | Year Ended December 31, 2018 | Year Ended December 31, 2017
------------------------------------ | ---------------------------- | ---------------------------- | ----------------------------
Weighted average common shares—basic | 45,542,315                   | 45,280,161                   | 44,855,263
Dilutive effect of stock options     | 32,222                       | 33,134                       | 31,534
Dilutive effect of restricted stock  | 505,858                      | 467,659                      | 297,406
                                     | 46,080,395                   | 45,780,954                   | 45,184,203

. business accounting policies
 Shares restricted stock basic EPS diluted EPS treasury stock method.
 diluted average shares
 2019 2018 2017
 Weighted average 45,542,315 45,280,161 44,855,263
 Dilutive stock options 32,222 33,134 31,534
 restricted stock 505,858,659 297,406
 46,080,395 45,780,954 45,184,203


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

                                                                                |           | Three Months Ended |               |              |
------------------------------------------------------------------------------------------- | --------- | ------------------ | ------------- | ------------ | -----------------------
                                                                                | March 31, | June 30,           | September 30, | December 31, | Year Ended December 31,
2018:                                                                                |           |                    |               |              |
Operating revenues                                                                          | $1,741.8  | $1,780.9           | $1,785.5      | $2,131.9     | $7,440.1
Costs of operations (1)                                                                     | 519.9     | 560.3              | 556.7         | 540.9        | 2,177.8
Operating income                                                                            | 402.9     | 546.0              | 567.2         | 388.9        | 1,905.0
Net income                                                                                | 280.3     | 314.4              | 377.3         | 292.7        | 1,264.7
Net income attributable to American Tower Corporation stockholders                          | 285.2     | 306.7              | 366.9         | 277.6        | 1,236.4
Dividends on preferred stock                                                                | (9.4)     | —                  | —             | —            | (9.4)
Net income attributable to American Tower Corporation common stockholders                   | 275.8     | 306.7              | 366.9         | 277.6        | 1,227.0
Basic net income per share attributable to American Tower Corporation common stockholders   | 0.63      | 0.69               | 0.83          | 0.63         | 2.79
Diluted net income per share attributable to American Tower Corporation common stockholders | 0.63      | 0.69               | 0.83          | 0.62         | 2.77

AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
. SELECTED QUARTERLY FINANCIAL DATA
 data years December 31, 2019 2018 millions
 Operating expenses Depreciation amortization accretion Selling administrative development Other operating expenses.
 Three Months
 March June September December
 Operating revenues $1,741. $1,780. $1,785. $2,131. $7,440.
 Costs operations 519. 560. 556. 540. 2,177.
 Operating income 402. 546. 567. 388. 1,905.
 income 280. 314. 377. 292. 1,264.
 income American Tower Corporation 285. 306. 366. 277. 1,236.
 Dividends.
 income American Tower Corporation 275. 306. 366. 277. 1,227.
 net income share American Tower Corporation.
income share American Tower Corporation. 63. 69. 83. 62.


16. Transactions With Affiliate:
Our business includes certain transactions with our majority shareholder, Kyocera, that are governed by agreements between the parties that define the sales terms,
including pricing for the products. The nature and amounts of transactions with Kyocera are included in the table below.
Kyocera notified AVX pursuant to the Products Supply and Distribution Agreement in December 2016 of its intent, effective January 1, 2018, to market its
manufactured electronic and interconnect products globally using Kyocera’s sales force rather than continuing to have AVX resell such products in the Americas,
Europe and Asia. During fiscal 2017, 2018 and 2019 sales of Kyocera resale products by AVX were $318,928, $296,316 and $18,951, respectively, and related operating
profit was $17,076, $18,177 and $3,300, respectively

                                                                                |         | Fiscal Yaar Ended March 31, |
--------------------------------------------------------------------------------- | ------- | --------------------------- | -------
                                                                                | 2017    | 2018                        | 2019
Sales:                                                                            |         |                             |
Product and equipment sales to affliates                                          | $30,303 | $26,069                     | $10,436
Purchases                                                                         |         |                             |
Purchases of resale inventories, raw materials, supplies, equipment, and services | 303,793 | 256,660                     | 9,399
Other                                                                             |         |                             |
Dividends paid                                                                    | 52,983  | 54,810                      | 56,028

. Transactions Affiliate
 business includes transactions Kyocera governed agreements sales terms
 pricing. transactions table.
 Kyocera notified AVX 2016 market
 electronic products globally sales force
. 2017 2018 2019 sales Kyocera $318,928 $296,316 $18,951
 profit $17,076 $18,177 $3,300
 Fiscal Ended March 31,
 2017 2018 2019
 Sales
 Product equipment sales affliates $30,303 $26,069 $10,436
 resale inventories raw materials supplies equipment services 303,793 256,660 9,399
 Dividends paid 52,983 54,810


The Company’s unused short-term lines of credit amounted to NT$77,658 million and NT$64,169 million as of December 31, 2018 and 2019, respectively.
(10) Short-Term Loans

                      | As of December 31, |
--------------------- | ------------------ | -----------------
                      | 2018               | 2019
                      | NT$(In Thousands)  | NT$(In Thousands)
Unsecured bank loans  | $7,780,552         | $8,080,200
Unsecured other loans | 5,323,256          | 3,935,006
Total                 | $13,103,808        | $12,015,206

unused short-term lines NT$77,658 million$64,169 million December 2018 2019.
 Unsecured bank loans $7,780,552
 Unsecured other loans 5,323,256 3,935,006
 $13,103,808 $12,015,206


Assumptions
Weighted-average actuarial assumptions used to determine net periodic benefit cost and projected benefit obligation for the plans for the fiscal years 2019, 2018 and 2017 were as follows:
(1) The expected return on plan assets assumption used in calculating net periodic benefit cost is based on historical return experience and estimates of future long-term performance with consideration to the expected investment mix of the plan.
(2) The discount rate is used to state expected cash flows relating to future benefits at a present value on the measurement date. This rate represents the market rate for high-quality fixed income investments whose timing would match the cash outflow of retirement benefits. Other assumptions include demographic factors such as retirement, mortality and turnover.

                                            |      | Pension |
------------------------------------------- | ---- | ------- | ----
                                            | 2019 | 2018    | 2017
Net periodic benefit cost:                  |      |         |
Expected long-term return on plan assets(1) | 3.6% | 3.8%    | 3.3%
Rate of compensation increase               | 4.4% | 3.3%    | 2.7%
Discount rate                               | 2.2% | 2.1%    | 1.9%
Projected benefit obligation:               |      |         |
Expected long-term return on plan assets    | 2.0% | 3.6%    | 4.0%
Rate of compensation increase               | 4.3% | 4.4%    | 4.4%
Discount rate(2)                            | 1.7% | 2.2%    | 2.3%

 Weighted-average net benefit cost projected benefit obligation fiscal years 2019 2018 2017
 expected return plan assets based historical return experience future long-term performance investment mix.
 discount rate cash flows future benefits present value measurement date. represents market rate high-quality fixed income investments cash outflow retirement benefits. assumptions include demographic factors retirement mortality turnover.
 Net periodic benefit cost
 Expected long-term return plan 3. 6%. 8%. 3%
 Rate compensation increase. 4%.
.
 Projected benefit obligation
 Expected long-term return 2. 0% 3. 6% 4.
 compensation increase.
. 7%


LIQUIDITY AND CAPITAL RESOURCES
Our primary source of cash is from the sale of our software and related services. Our primary use of cash is payment of our operating costs, which consist primarily of employee-related expenses, such as compensation and benefits, as well as general operating expenses for marketing, facilities and overhead costs. In addition to operating expenses, we also use cash to fund our stock repurchase program and invest in our growth initiatives, which include acquisitions of products, technology and businesses. See further discussion of these items below.
At January 31, 2019, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling $953.6 million and net accounts receivable of $474.3 million
On December 17, 2018, Autodesk entered into a new Credit Agreement (the “Credit Agreement”) for an unsecured revolving loan facility in the aggregate principal amount of $650.0 million, with an option to request increases in the amount of the credit facility by up to an additional $350.0 million. The Credit Agreement replaced and terminated our $400.0 million Amended and Restated Credit Agreement. The maturity date on the line of credit facility is December 2023. At January 31, 2019, Autodesk had no outstanding borrowings on this line of credit. As of March 25, 2019, we have no amounts outstanding under the credit facility. See Part II, Item 8, Note 8, "Borrowing Arrangements," in the Notes to Consolidated Financial Statements for further discussion on our covenant requirements. If we are unable to remain in compliance with the covenants, we will not be able to draw on our credit facility.
On December 17, 2018, we also entered into a Term Loan Agreement (the “Term Loan Agreement”) which provided for a delayed draw term loan facility in the aggregate principal amount of $500.0 million. On December 19, 2018, we borrowed a $500.0 million term loan under the Term Loan Agreement in connection with the acquisition of PlanGrid. See Part II, Item 8,Note 8, "Borrowing Arrangements," in the Notes to Consolidated Financial Statements for further discussion on the Term Loan Agreement terms and Part II, Item 8, Note 6, "Acquisitions" for further discussion on the PlanGrid acquisition.
In addition to the term loan, as of January 31, 2019, we have $1.6 billion aggregate principal amount of Notes outstanding. See Part II, Item 8, Note 8, "Borrowing Arrangements," in the Notes to Consolidated Financial Statements for further discussion.
Our cash and cash equivalents are held by diversified financial institutions globally. Our primary commercial banking relationship is with Citigroup and its global affiliates. In addition, Citibank N.A., an affiliate of Citigroup, is one of the lead lenders and agent in the syndicate of our $650.0 million line of credit.
Long-term cash requirements for items other than normal operating expenses are anticipated for the following: repayment of debt; common stock repurchases; the acquisition of businesses, software products, or technologies complementary to our business; and capital expenditures, including the purchase and implementation of internal-use software applications
Our cash, cash equivalents, and marketable securities balances are concentrated in a few locations around the world, with substantial amounts held outside of the United States. As of January 31, 2019, approximately 52% of our total cash or cash equivalents and marketable securities are located in foreign jurisdictions and that percentage will fluctuate subject to business needs. There are several factors that can impact our ability to utilize foreign cash balances, such as foreign exchange restrictions, foreign regulatory restrictions or adverse tax costs. The Tax Act includes a mandatory one-time tax on accumulated earnings of foreign subsidiaries and generally eliminates U.S. taxes on foreign subsidiary distributions in future periods. As a result, earnings in foreign jurisdictions are generally available for distribution to the U.S. with little to no incremental U.S. taxes. We regularly review our capital structure and consider a variety of potential financing alternatives and planning strategies to ensure we have the proper liquidity available in the locations in which it is needed. We expect to meet our liquidity needs through a combination of current cash balances, ongoing cash flows, and external borrowings.
Cash from operations could also be affected by various risks and uncertainties, including, but not limited to the risks detailed in Part I, Item 1A titled “Risk Factors.” However, based on our current business plan and revenue prospects, we believe that our existing balances, our anticipated cash flows from operations and our available credit facility will be sufficient to meet our working capital and operating resource expenditure requirements for at least the next 12 months.
Our revenue, earnings, cash flows, receivables, and payables are subject to fluctuations due to changes in foreign currency exchange rates, for which we have put in place foreign currency contracts as part of our risk management strategy. See Part II, Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” for further discussion.
Net cash provided by operating activities of $377.1 million for fiscal 2019 consisted of $371.8 million of non-cash expenses, including stock-based compensation expense, restructuring charges, net, depreciation, amortization and accretion expense, offsetting our net loss of $80.8 million, and included $86.1 million of cash flow provided by changes in operating assets and liabilities.
The primary working capital source of cash was an increase in deferred revenue from $1,955.1 million as of January 31, 2018, to $2,091.4 million as of January 31, 2019. The primary working capital uses of cash were decreases in accounts payable and other accrued liabilities.
Net cash used in investing activities was $710.4 million for fiscal 2019 and was primarily due to acquisitions, net of cash acquired and purchases of marketable securities. These cash outflows were partially offset by sales and maturities of marketable securities.
At January 31, 2019, our short-term investment portfolio had an estimated fair value of $67.6 million and a cost basis of $62.8 million. The portfolio fair value consisted of $60.3 million of trading securities that were invested in a defined set of mutual funds as directed by the participants in our Deferred Compensation Plan (see Note 7, “Deferred Compensation,” in the Notes to Consolidated Financial Statements for further discussion) and $7.3 million invested in other available-for-sale shortterm securities.
Net cash provided by financing activities was $151.9 million in fiscal 2019 and was primarily due to proceeds from debt issuance, net of discount and proceeds from issuance of stock. These cash inflows were partially offset by repurchases of our common stock and taxes paid related to net share settlement of equity awards.

                                                    |         | Fiscal year ended January 31, |
--------------------------------------------------- | ------- | ----------------------------- | -------
(in millions)                                       | 2019    | 2018                          | 2017
Net cash provided by operating activities           | $377.1  | $0.9                          | $169.7
Net cash (used in) provided by investing activities | (710.4) | 506.4                         | 272.0
Net cash provided by (used in) financing activities | 151.9   | (656.6)                       | (578.3)

LIQUIDITY CAPITAL RESOURCES
 primary cash sale software services. operating costs employee-related expenses compensation benefits marketing facilities overhead. cash stock repurchase growth initiatives.
 January 31, 2019 principal sources liquidity cash equivalents marketable securities $953. 6 million net accounts receivable $474. 3 million
 December 17, 2018 Credit Agreement unsecured revolving loan $650. 0 million option $350. 0 million. $400. 0 million Amended Restated Credit Agreement. maturity date December 2023. January 31, 2019 no outstanding borrowings. March 25, 2019 no. Part II Item 8 Note 8 Arrangements Notes Consolidated Financial Statements. draw credit facility.
 December 17, 2018 Term Loan Agreement delayed draw term loan principal $500. 0 million. December 19, 2018 borrowed $500. 0 million term loan acquisition PlanGrid.Part II Item 8 8 Arrangements Notes Consolidated Financial Statements Term Loan Agreement Part II Item 8 Note 6 "Acquisitions PlanGrid acquisition.
 January 31, 2019 $1. 6 billion Notes outstanding. Part II Item 8 Note 8 Arrangements Statements.
 cash equivalents held diversified financial institutions. banking relationship Citigroup. Citibank N. affiliate Citigroup $650. 0 million line credit.
 Long-term cash requirements repayment debt common stock repurchases acquisition businesses software capital expenditures software
 cash equivalents marketable securities locations amounts outside United States. January 31, 2019 52% cash equivalents securities foreign jurisdictions. foreign cash exchange restrictions regulatory restrictions adverse tax costs. Tax Act-time tax earnings foreign subsidiaries eliminates U. S. taxes distributions. earnings foreign jurisdictions available distribution. little no U. taxes. review capital structure potential financing alternatives strategies liquidity.expect meet liquidity needs cash balances flows external borrowings.
 Cash affected risks. business plan revenue balances cash flows credit facility working capital operating resource expenditure requirements next 12 months.
 revenue earnings cash flows receivables payables foreign currency rates foreign currency contracts risk management strategy. Part II Item 7A Market.
 Net cash $377. 1 million 2019 $371. 8 million non-cash expenses loss $80. 8 million $86. 1 million cash flow operating assets liabilities.
 primary increase deferred revenue $1,955. 1 million to $2,091. 4 million 2019. decreases accounts payable accrued liabilities.
 Net cash investing $710. 4 million due purchases marketable securities. outflows offset sales maturities securities.
 short-term investment portfolio fair value $67. 6 million cost basis $62. 8 million. fair value $60.3 million trading securities mutual funds Deferred Compensation Plan Note 7 Financial Statements $7. 3 million shortterm securities.
 Net cash financing $151. 9 million 2019 due debt discount stock. offset repurchases common stock taxes settlement equity awards.
 Fiscal year January 31,
 Net cash operating activities $377. 1 $0. $169. 7
 investing (710. 4) 506. 4 272.
 financing 151. 9 (656. 6) (578. 3)


AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in millions, unless otherwise disclosed)
At December 31, 2019, the Company had net federal, state and foreign operating loss carryforwards available to reduce future taxable income. If not utilized, the Company’s NOLs expire as follows:

Years ended December 31, | Federal | State  | Foreign
------------------------ | ------- | ------ | -------
2020 to 2024             | $—      | $222.3 | $11.9
2025 to 2029             | 141.6   | 285.7  | 104.8
2030 to 2034             | 7.0     | 41.4   | 19.6
2035 to 2039             | 3.6     | 159.5  | —
Indefinite carryforward  | 22.8    | —      | 853.8
Total                    | $175.0  | $708.9 | $990.1

AMERICAN TOWER CORPORATION SUBSIDIARIES
 FINANCIAL STATEMENTS
 amounts millions
 December 31, 2019 federal state foreign loss carryforwards income. NOLs expire
 Years December 31,
 2020 2024 $222. $11.
 2025 2029 141. 104.
 2030 2034.
 2035 2039. 159.
 carryforward 22. 853.
 $175. $708. $990.


Financial review
2019 was a challenging year for the retail property sector with the ongoing structural changes and low consumer confidence impacting some weaker retailers and leading to a higher level of CVAs and administrations. This impacted our revenue, net rental income and property valuations, with like-for-like net rental income down 9.1 per cent and the property revaluation deficit was £1,979.7 million.
Fixing the balance sheet is our top strategic priority and although the notes accompanying these financial statements indicate a material uncertainty in relation to intu’s ability to continue as a going concern we have options including alternative capital structures and further disposals to put us on a stronger financial footing.
1 A reconciliation from the IFRS consolidated income statement to the underlying earnings amounts presented above is provided in presentation of information on page 161.
2 Other underlying amounts includes net other income, share of underlying profit in associates and any underlying amounts attributable to non-controlling interests.
3 Other non-underlying amounts includes losses on disposal of subsidiaries, gains on sale of investment and development property, write-down on recognition of joint ventures and other assets classified as held for sale, impairment of goodwill, impairment of investment in associates, impairment of loan to associate, exceptional administration expenses, exceptional tax, and any non-underlying amounts attributable to non-controlling interests.
The IFRS loss for the year attributable to owners of intu properties plc increased by £818.7 million to £1,950.9 million, with the IFRS basic loss per share increasing by 60.8 pence. Underlying earnings decreased by £65.9 million to £127.2 million, with a corresponding reduction in underlying EPS of 4.9 pence. The key drivers of these variances are discussed below.

£m                                                                    | Notes | 2019      | 2018      | Change
--------------------------------------------------------------------- | ----- | --------- | --------- | -------
Net rental income                                                     | A     | 401.6     | 450.5     | (48.9)
Administration expenses                                               | B     | (40.5)    | (44.0)    | 3.5
Net finance costs                                                     | C     | (224.6)   | (220.4)   | (4.2)
Tax on underlying profit                                              | D     | (17.6)    | (0.7)     | (16.9)
Other underlying amounts2                                             |       | 8.3       | 7.7       | 0.6
Underlying earnings1                                                  |       | 127.2     | 193.1     | (65.9)
Revaluation of investment and development property                    | E     | (1,979.7) | (1,405.0) | (574.7)
Change in fair value of financial
instruments                         | F     | (75.3)    | 86.3      | (161.6)
Other finance charges – exceptional                                   | G     | (37.7)    | (28.4)    | (9.3)
Other non-underlying amounts3                                         |       | 14.6      | 21.8      | (7.2)
IFRS loss for the year attributable
to owners of intu properties plc1 |       | (1,950.9) | (1,132.2) | (818.7)
IFRS basic loss per share (pence)                                     |       | (145.1)p  | (84.3)p   | (60.8)p
Underlying EPS (pence)                                                |       | 9.5p      | 14.4p     | (4.9)p

 2019 challenging retail property structural changes low consumer confidence retailers higher CVAs administrations. impacted revenue rental income property valuations like-for-like rental income down 9. 1 per cent property revaluation deficit £1,979. 7 million.
 Fixing balance sheet top priority uncertainty intu’s options alternative capital structures disposals.
 reconciliation IFRS income underlying earnings page 161.
 underlying amounts net income profit non-controlling interests.
 losses disposal subsidiaries gains sale property write-down joint ventures impairment goodwill investment loan administration expenses tax.
 IFRS loss intu properties increased £818. 7 million to £1,950. 9 million IFRS loss per share 60. 8 pence. Underlying earnings decreased £65. 9 million to £127. 2 million reduction EPS 4. 9 pence. key drivers.
 Net rental income.
 Administration expenses.(44. 3. 5
 finance costs (224. (220. (4.
 Tax underlying profit (17. (16.
 8. 7.
 127. 193. (65.
 Revaluation investment development property (1,979. (1,405. (574.
 value financial
 instruments (75. 86. (161.
 finance charges (37. (28. (9.
 non-underlying 14. 21. (7.
 IFRS loss
 owners properties (1,950. (1,132. (818.
 IFRS loss share (145. (84. (60.
 EPS 9. 14. (4.


A.3.10 Reconciliation to Consolidated Financial Statements
The negative swing in Corporate items was mainly due to large positive effects in fiscal 2018 – the gain of € 900 million resulting from the transfer of Siemens’ shares in Atos SE to Siemens Pension- Trust e. V. and the gain of € 655 million from the sale of OSRAM Licht AG shares. These effects substantially outweighed a positive result in fiscal 2019 from the measurement of a major asset retirement obligation, which was previously reported in Centrally managed portfolio activities. Severance charges within Corporate items were € 99 million (€ 159 million in fiscal 2018).

                                                                    |         | Fiscal year
------------------------------------------------------------------- | ------- | -----------
(in millions of €)                                                  | 2019    | 2018
Real Estate Services                                                | 145     | 140
Corporate items                                                     | (562)   | 631
Centrally carried pension expense                                   | (264)   | (423)
Amortization of intangible assets acquired in business combinations | (1,133) | (1,164)
Eliminations, Corporate Treasury and other reconciling items        | (215)   | (318)
Reconciliation to Consolidated financial Statements                 | (2,028) | (1,135)

. Reconciliation Financial Statements
 negative swing Corporate 2018 gain € 900 million transfer shares Pension Trust. € 655 million sale OSRAM Licht shares. outweighed 2019 major asset retirement obligation. Severance charges € 99 million (€ 159 million 2018).
 Real Estate Services
 Corporate items (562
 pension expense (264)
 Amortization intangible assets (1,133,164
 Eliminations Corporate Treasury reconciling items (215) (318)
 Reconciliation Consolidated Statements (2,028) (1,135


Other non-current assets
Other non-current assets consisted of the following (in thousands):

                                    | December 31, 2019 | December 31, 2018
----------------------------------- | ----------------- | -----------------
Right of use assets                 | $33,014           | $—
Deferred contract acquisition costs | 3,297             | 3,184
Deposits                            | 2,338             | 1,975
Other                               | 3,197             | 3,461
Total other non-current assets      | 41,846            | $8,620

non-current assets
 December 31, 2019
 Right use $33,014
 Deferred acquisition costs 3,297 3,184
 Deposits 2,338
 3,197
-current assets 41,846 $8,620


The components of the provision for income taxes attributable to continuing operations are as follows (in thousands):
On a consolidated basis, the Company has incurred operating losses and has recorded a full valuation allowance against its US, UK, New Zealand, Hong Kong, and Brazil deferred tax assets for all periods to date and, accordingly, has not recorded a provision (benefit) for income taxes for any of the periods presented other than a provision (benefit) for certain foreign and state income taxes. Certain foreign subsidiaries and branches of the Company provide intercompany services and are compensated on a cost-plus basis, and therefore, have incurred liabilities for foreign income taxes in their respective jurisdictions.

                                   |        | Year Ended December 31, |
---------------------------------- | ------ | ----------------------- | ------
                                   | 2019   | 2018                    | 2017
Current income tax provision:      |        |                         |
Federal                            | $—     | $—                      | $—
State                              | 225    | 204                     | 114
Foreign                            | 2,467  | 2,514                   | 1,580
Total current income tax provision | 2,692  | 2,718                   | 1,694
Deferred income tax benefit:       |        |                         |
Federal                            | $—     | —                       | $—
State                              | —      | —                       | —
Foreign                            | (2)    | (123)                   | 52
Total deferred income tax benefit  | (2)    | (123)                   | 52
Total income tax provision         | $2,690 | $2,595                  | $1,746

components provision income taxes
 Company incurred losses recorded full valuation allowance against US UK New Zealand Hong Kong Brazil deferred tax assets not recorded provision (benefit certain foreign state taxes. foreign subsidiaries branches provide services compensated cost-plus incurred liabilities foreign income taxes jurisdictions.
 Year Ended December 31,
 2019 2018 2017
 Current income tax provision
 Federal
 State 225 204 114
 Foreign 2,467 2,514 1,580
 2,692  2,718  1,694
 Deferred income tax benefit
 Federal
 State
 Foreign
 tax
 $2,690 $2,595  $1,746


Income from Equity Investees
Marine Services: Income from equity investees within our Marine Services segment for the year ended December 31, 2019 decreased $14.1 million to $5.6 million from $19.7 million for the year ended year ended December 31, 2018. The decrease was driven by HMN, due to lower revenues on large turnkey projects underway than in the comparable period.
The equity investment in HMN has contributed $5.0 million and $12.7 million in income from equity investees for the years ended December 31, 2019 and 2018, respectively. Further contributing to the reduction in income were losses at SBSS from a loss contingency related to ongoing legal disputes and lower vessel utilization.
Life Sciences: Loss from equity investees within our Life Sciences segment for the year ended December 31, 2019 decreased $0.6 million to $3.4 million from $4.0 million for the year ended December 31, 2018. The decrease in losses were largely due to lower equity method losses recorded from our investment in MediBeacon due to the timing of clinical trials and revenue from a licensing agreement which did not occur in the comparable periods.

                             |       | Years Ended December 31, |
---------------------------- | ----- | ------------------------ | ---------------------
                             | 2019  | 2018                     | Increase / (Decrease)
Construction                 | $—    | $ (0.2)                  | $ 0.2
Marine Services              | 5.6   | 19.7                     | (14.1)
Life Sciences                | (3.4) | (4.0)                    | 0.6
Other                        | —     | (0.1)                    | 0.1
Income from equity investees | $ 2.2 | $ 15.4                   | $ (13.2)

Income Equity Investees
 Marine Services Income December 31, 2019 decreased $14. 1 million to $5. 6 million from $19. 7 million 2018. decrease driven by HMN lower revenues large turnkey projects.
 equity investment HMN contributed $5. 0 million $12. 7 million income 2019 2018. reduction losses SBSS legal disputes lower vessel utilization.
 Life Sciences Loss equity investees December 2019 decreased $0. 6 million to $3. 4 million from $4. 0 million 2018. due to lower equity losses investment MediBeacon timing clinical trials revenue licensing agreement.
 2019 2018 Increase
 Construction.
 Marine Services.
 Life Sciences.
.
 Income equity investees.


The fair value of the Company’s service-based RSUs was calculated based on fair market value of the Company’s stock at the date of grant, discounted for dividends.
The fair value of the Company’s market-based PRSUs granted during fiscal years 2019, 2018, and 2017 was calculated using a Monte Carlo simulation model at the date of the grant. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award:
As of June 30, 2019, the Company had $271.9 million of total unrecognized compensation expense related to all unvested RSUs granted which is expected to be recognized over a weighted-average remaining period of 2.2 years.

                        |               | YearEnded     |
----------------------- | ------------- | ------------- | -------------
                        | June 30, 2019 | June 24, 2018 | June 25, 2017
Expected volatility     | 32.65%        | 34.07%        | 27.48%
Risk-free interest rate | 2.52%         | 2.35%         | 1.55%
Expected term (years)   | 2.92          | 2.92          | 2.92
Dividend yield          | 2.49%         | 1.05%         | 1.50%

value service-based RSUs calculated market stock discounted dividends.
 market-based PRSUs granted 2019 2018 2017 calculated Monte Carlo simulation model. subjective assumptions stock price volatility estimated life
 June 30, 2019 $271. 9 million unrecognized compensation expense unvested RSUs 2. years.
 Expected volatility 32. 65% 34. 07% 27. 48%
 Risk-free interest rate 2. 52%. 35%. 55%
 Expected term 2. 92.
 Dividend yield 2. 49%. 05%.


Segment Data
Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses; for which separate financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker to assess the performance of the individual segment and make decisions about resources to be allocated to the segment.
The Company derives its revenue from providing comprehensive electronics design, production and product management services. The chief operating decision maker evaluates performance and allocates resources on a segment basis. The Company’s operating segments consist of two segments – EMS and DMS, which are also the Company’s reportable segments. The segments are organized based on the economic profiles of the services performed, including manufacturing capabilities, market strategy, margins, return on capital and risk profiles.
The EMS segment is focused around leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, utilizing the Company’s large scale manufacturing infrastructure and the ability to serve a broad range of end markets. The EMS segment is a high volume business that produces products at a quicker rate (i.e. cycle time) and in larger quantities and includes customers primarily in the automotive and transportation, capital equipment, cloud, computing and storage, defense and aerospace, industrial and energy, networking and telecommunications, print and retail, and smart home and appliances industries.
The DMS segment is focused on providing engineering solutions, with an emphasis on material sciences, technologies and healthcare. The DMS segment includes customers primarily in the edge devices and accessories, healthcare, mobility and packaging industries.
Net revenue for the operating segments is attributed to the segment in which the service is performed. An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net revenue less cost of revenue, segment selling, general and administrative expenses, segment research and development expenses and an allocation of corporate manufacturing expenses and selling, general and administrative expenses. Segment income does not include amortization of intangibles, stock-based compensation expense and related charges, restructuring and related charges, distressed customer charges, acquisition and integration charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, restructuring of securities loss, goodwill impairment charges, business interruption and impairment charges, net, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations, other expense, interest income, interest expense, income tax expense or adjustment for net income (loss) attributable to noncontrolling interests.
Total segment assets are defined as accounts receivable, inventories, net, customer-related property, plant and equipment, intangible assets net of accumulated amortization and goodwill. All other non-segment assets are reviewed on a global basis by management. Transactions between operating segments are generally recorded at amounts that approximate those at which we would transact with third parties. 99
The following tables set forth operating segment information (in thousands):

            |             | Fiscal Year Ended August 31, |
----------- | ----------- | ---------------------------- | -----------
            | 2019        | 2018                         | 2017
Net revenue |             |                              |
EMS         | $15,430,529 | $12,268,600                  | $11,077,622
DMS         | 9,851,791   | 9,826,816                    | 7,985,499
            | $25,282,320 | $22,095,416                  | $19,063,121

Segment Data
 Operating segments components enterprise earn revenues expenses separate financial information results reviewed by chief decision performance resources.
 Company revenue electronics design production product management services. maker evaluates performance allocates resources. segments EMS DMS reportable. organized economic profiles manufacturing capabilities market strategy margins return on capital risk profiles.
 EMS IT supply chain design engineering core electronics large manufacturing infrastructure end markets. high volume. larger quantities customers automotive transportation capital equipment cloud computing storage defense aerospace industrial energy networking telecommunications print retail smart home appliances industries.
 DMS engineering solutions material sciences technologies healthcare. customers edge devices accessories healthcare mobility packaging industries.
 Net revenue attributed to segment. performance evaluated pre-tax operating contribution income. defined net revenue less cost selling administrative expenses research development expenses manufacturing expenses.Segment income amortization stock compensation restructuring distressed customer acquisition loss disposal subsidiaries settlement impairment restructuring goodwill business interruption discontinued operations sale interest tax adjustment noncontrolling interests.
 segment assets accounts receivable inventories customer-related property plant equipment intangible assets amortization goodwill. non assets reviewed management. Transactions segments recorded third parties.
 tables operating segment information
 Fiscal Year Ended August 31,
 Net revenue
 $15,430,529  $12,268,600  $11,077,622
 9,851,791,985,499
 $25,282,320 $22,095,416 $19,063,121


Discontinued Operations
In December 2015, we completed the wind down of engineering, manufacturing and sales of our solar inverter product line (the "inverter business"). Accordingly, the results of our inverter business have been reflected as “Income (loss) from discontinued operations, net of income taxes” on our Consolidated Statements of Operations for all periods presented herein.
The effect of our sales of extended inverter warranties to our customers continues to be reflected in deferred revenue in our Consolidated Balance Sheets. Deferred revenue for extended inverter warranties and the associated costs of warranty service will be reflected in Sales and Cost of goods sold, respectively, from continuing operations in future periods in our Consolidated Statement of Operations, as the deferred revenue, is earned and the associated services are rendered. Extended warranties related to the inverter product line are no longer offered.
ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
The significant items included in "Income (loss) from discontinued operations, net of income taxes" are as follows:

                                                                | Years Ended December 31, |
--------------------------------------------------------------- | ------------------------ | -----
                                                                | 2019                     | 2018
Sales                                                           | $  —                     | $  —
Cost of sales                                                   | (901)                    | (88)
Total operating expense                                         | 1,022                    | 96
Operating income (loss) from discontinued operations            | (121)                    | (8)
Other income (expense)                                          | 10,895                   | (24)
Income (loss) from discontinued operations before income taxes  | 10,774                   | (32)
Provision (benefit) for income taxes                            | 2,294                    | 6
Income (loss) from discontinued operations, net of income taxes | $8,480                   | $(38)

Discontinued Operations
 December 2015, completed engineering manufacturing sales solar inverter line. results reflected (loss) discontinued operations net Consolidated Statements Operations.
 extended inverter warranties reflected deferred revenue Consolidated Balance Sheets. revenue costs reflected Sales Cost goods. Extended warranties inverter no longer offered.
 ADVANCED ENERGY INDUSTRIES. CONSOLIDATED FINANCIAL STATEMENTS
 significant items (loss) discontinued operations net taxes
 Years Ended December 31,
 2018
 Sales $
 Cost sales (901)
 Total operating expense 1,022
 Operating income (loss) discontinued operations (121)
 Other income 10,895
 Income (loss before income taxes 10,774
 Provision (benefit) income taxes 2,294
 net income taxes $8,480


10. Segment Information
The Company reports financial performance based on its segments, ACI On Premise and ACI On Demand, and analyzes Segment Adjusted EBITDA as a measure of segment profitability.
The Company’s interim Chief Executive Officer is also the chief operating decision maker ("CODM"). The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from Corporate operations.
ACI On Premise serves customers who manage their software on site or through a third-party cloud service provider. These onpremise customers use the Company’s software to develop sophisticated solutions, which are often part of a larger system located and managed at the customer specified site. These customers require a level of control and flexibility that ACI On Premise solutions can offer, and they have the resources and expertise to take a lead role in managing these solutions.
ACI On Demand serves the needs of banks, merchants, and billers who use payments to facilitate their core business. These ondemand solutions are maintained and delivered through the cloud via our global data centers and are available in either a singletenant environment for SaaS offerings, or in a multi-tenant environment for PaaS offerings.
Revenue is attributed to the reportable segments based upon the product sold and mechanism for delivery to the customer. Expenses are attributed to the reportable segments in one of three methods, (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual products, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities as well as information technology and facilities related expense for which multiple segments benefit. The Company also allocates certain depreciation costs to the segments.
Segment Adjusted EBITDA is the measure reported to the CODM for purposes of making decisions on allocating resources and assessing the performance of the Company’s segments and, therefore, Segment Adjusted EBITDA is presented in conformity with ASC 280, Segment Reporting. Segment Adjusted EBITDA is defined as earnings (loss) from operations before interest, income tax expense (benefit), depreciation and amortization (“EBITDA”) adjusted to exclude stock-based compensation, and net other income (expense).
Corporate and unallocated expenses consist of the corporate overhead costs that are not allocated to reportable segments. These overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity, and other costs that are not considered when management evaluates segment performance. For the year ended December 31, 2017, corporate and unallocated expenses included $46.7 million of general and administrative expense for the legal judgment discussed in Note 15, Commitments and Contingencies.
The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands):
Assets are not allocated to segments, and the Company’s CODM does not evaluate operating segments using discrete asset information.

                                       |            | Years Ended December 31, |
-------------------------------------- | ---------- | ------------------------ | ----------
                                       | 2019       | 2018                     | 2017
Revenues                               |            |                          |
ACI On Premise                         | $579,334   | $576,755                 | $598,590
ACI On Demand                          | 678,960    | 433,025                  | 425,601
Total revenue                          | $1,258,294 | $1,009,780               | $1,024,191
Segment Adjusted EBITDA                |            |                          |
ACI On Premise                         | $ 321,305  | $ 323,902                | $ 347,094
ACI On Demand                          | 66,501     | 12,015                   | (1,832 )
Depreciation and amortization          | (122,569 ) | (97,350 )                | (102,224 )
Stock-based compensation expense       | (36,763 )  | (20,360 )                | (13,683 )
Corporate and unallocated expenses     | (104,718 ) | (92,296 )                | (144,715 )
Interest, net                          | (52,066 )  | (30,388 )                | (38,449 )
Other, net                             | 520        | (3,724 )                 | (2,619 )
Income before income taxes             | $ 72,210   | $ 91,799                 | $ 43,572
Depreciation and amortization          |            |                          |
ACI On Premise                         | $ 11,992   | $ 11,634                 | $ 13,094
ACI On Demand                          | 34,395     | 31,541                   | 34,171
Corporate                              | 76,182     | 54,175                   | 54,959
Total depreciation and amortization    | $ 122,569  | $ 97,350                 | $ 102,224
Stock-based compensation expense       |            |                          |
ACI On Premise                         | $ 7,651    | $ 4,348                  | $ 2,234
ACI On Demand                          | 7,995      | 4,338                    | 2,230
Corporate                              | 21,117     | 11,674                   | 9,219
Total stock-based compensation expense | $36,763    | $20,360                  | $13,683

. Segment Information
 Company reports financial performance ACI On Premise ACI On Demand analyzes Segment Adjusted EBITDA profitability.
 interim Chief Executive Officer chief operating decision. CODM senior management consolidated financial information allocation resources operating results revenues Segment Adjusted EBITDA Corporate operations.
 ACI On Premise serves customers software on site or cloud. customers software solutions larger system. require control flexibility ACI solutions resources expertise solutions.
 ACI On Demand serves banks merchants billers payments. solutions maintained delivered cloud global data centers available singletenant or multi-tenant PaaS.
 Revenue attributed to segments product sold mechanism delivery. Expenses attributed direct costs labor costs costs allocated. Allocated costs marketing sales information technology facilities. allocates depreciation costs.
 Segment Adjusted EBITDA CODM decisions allocating resources assessing performance with ASC 280, Segment Reporting.Adjusted EBITDA before interest depreciation amortization stock-based compensation income.
 Corporate unallocated expenses not segments. human resources finance legal accounting merger acquisition. December 31, 2017 included $46. 7 million legal judgment.
 financial data segments
 Assets not allocated segments CODM evaluate segments information.
 Years Ended December
 Revenues
 On Premise $579,334 $576,755 $598,590
 On Demand 678,960
 Total revenue $1,258,294 $1,009,780 $1,024,191
 Segment Adjusted EBITDA
 On Premise 321,305 323,902 347,094
 On Demand 66,501 12,015
 Depreciation amortization (122,569 (97,350,224
 Stock-based compensation expense (36,763 (20,360 (13,683
 Corporate unallocated expenses (104,718 (92,296 (144,715
Interest (52,066 (30,388,449
 (3,724 (2,619
 taxes 72,210 91,799 43,572
 Depreciation amortization
 Premise 11,992 13,094
 Demand 34,395
 Corporate 76,182 54,175
 122,569 97,350 102,224
 compensation expense
 Premise 7,651 4,348
 Demand 7,995 4,338
 Corporate 21,117 11,674
 $36,763 $20,360 $13,683


Cubic Mission Solutions
Sales: CMS sales increased 23% to $207.0 million in fiscal 2018 compared to $168.9 million in 2017. The increase in sales was primarily due to increased orders and shipments of expeditionary satellite communications products, tactical networking products, and Command and Control, Intelligence, Surveillance and Reconnaissance (C2ISR) products and services. Businesses acquired during fiscal years 2018 and 2017 whose operations are included in our CMS operating segment had sales of $5.6 million and $1.5 million for fiscal years 2018 and 2017, respectively.
Amortization of Purchased Intangibles: Amortization of purchased intangibles included in the CMS results amounted to $20.8 million in 2018 and $23.6 million in 2017. The $2.8 million decrease in amortization expense is related to purchased intangible assets that are amortized based upon accelerated methods.
Operating Income: CMS had an operating loss of $0.1 million in 2018 compared to $9.3 million in 2017. CMS realized increased profits from expeditionary satellite communications products, tactical networking products, and C2ISR products and services. As mentioned above, amortization of purchased intangibles decreased to $20.8 million in 2018 compared to $23.6 million in 2017. CMS increased R&D expenditures between 2017 and 2018 by $10.8 million, primarily driven by development of new antenna technologies. Businesses acquired by CMS in fiscal years 2018 and 2017 incurred operating losses of $4.7 million in fiscal 2018 compared to $2.9 million in fiscal 2017. Included in the operating loss incurred by acquired businesses are acquisition transaction costs of $1.6 million and $1.8 million incurred in fiscal years 2018 and 2017, respectively.
Adjusted EBITDA: CMS Adjusted EBITDA increased 82% to $26.2 million in 2018 compared to $14.4 million in 2017.
The increase in CMS Adjusted EBITDA was primarily due to the same items described in the operating income section
above, excluding the changes in amortization expense and acquisition transaction costs discussed above as such items are
excluded from Adjusted EBITDA.

                | Fiscal 2018 | Fiscal 2017   | % Change
--------------- | ----------- | ------------- | --------
                |             | (in millions) |
Sales           | $  207.0    | $  168.9      | 23 %
Operating loss  | (0.1)       | (9.3)         | (99)
Adjusted EBITDA | 26.2        | 14.4          | 82

Solutions
 Sales CMS sales increased 23% $207. million 2018 $168. 9 million 2017. due increased orders shipments satellite communications tactical networking. Businesses acquired 2018 2017 sales $5. 6 million $1. 5 million.
 Amortization Purchased Intangibles $20. 8 million 2018 $23. 6 million 2017. $2. 8 million decrease related assets.
 CMS loss $0. 1 million 2018 $9. 3 million 2017. increased profits communications networking C2ISR. amortization intangibles decreased $20. 8 million 2018 $23. 6 million 2017. increased R&D expenditures $10. 8 million new antenna technologies. Businesses acquired losses $4. 7 million $2. 9 million 2017. transaction costs $1. 6 million $1. 8 million.
 Adjusted EBITDA increased 82% $26. 2 million 2018 $14. 4 million 2017.
 increase due items
 excluding amortization expense transaction costs
.

 millions
 Sales $ 207. $ 168. 23 %
 Operating loss.
 Adjusted EBITDA 26. 14. 4 82


A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows (in thousands):
The total liability for gross unrecognized tax benefits as of December 31, 2019, 2018 and 2017 includes $9.6 million, $0.4 million and $0.2 million, respectively, of unrecognized net tax benefits which, if ultimately recognized, would reduce our annual effective tax rate in a future period. These liabilities, along with liabilities for interest and penalties, are included in accounts payable and accrued expenses and Other long-term liabilities in our consolidated balance sheet. Interest, which is included in Interest expense in our consolidated statement of income, was not material for all years presented.
During the year ended December 31, 2019, we recognized an increase in unrecognized tax benefits of approximately $7.7 million related to an increase in research and development tax credits available to us for tax years 2016-2018 and $1.8 million for the 2019 tax year.
We are subject to income taxes in the U.S., various state and foreign jurisdictions. Tax statutes and regulations within each jurisdiction are subject to interpretation and require significant judgment to apply. We are no longer subject to U.S. federal or non-U.S. income tax examinations by tax authorities for the years before 2015. We are no longer subject to U.S. state tax examinations by tax authorities for the years before 2014. We believe it is reasonably possible that within the next year our unrecognized tax benefits may decrease by $1.9 million due to the acceptance of a portion of our amended research and development credits.

                                                     |        | December 31, |
---------------------------------------------------- | ------ | ------------ | -----
                                                     | 2019   | 2018         | 2017
Gross unrecognized tax benefits at beginning of year | $490   | $220         | $293
Increases in tax positions for prior years           | 7,718  | 36           | —
Increases in tax positions for current year          | 1,839  | 320          | 32
Decreases in tax positions for prior years           | (412)  | —            | —
Lapse in statute of limitations                      | —      | (86)         | (105)
Gross unrecognized tax benefits at end of year       | $9,635 | $490         | $220

reconciliation balances unrecognized tax benefits
 liability December 31, 2019 2018 2017 includes $9. 6 million $0. 4 million $0. 2 million tax benefits recognized annual tax rate. liabilities interest penalties included accounts payable accrued expenses consolidated balance sheet. Interest not material all years.
 December 31, 2019 recognized increase unrecognized tax benefits $7. 7 million research development tax credits 2016-2018 $1. 8 million 2019 year.
 subject income taxes U. state foreign jurisdictions. Tax statutes regulations subject interpretation require judgment. no longer subject. federal. income tax examinations before 2015. state tax examinations before 2014. unrecognized tax benefits decrease by $1. 9 million due acceptance amended research development credits.
 December 31,
 Gross unrecognized tax benefits beginning year $490 $220
 Increases positions prior years
 1,839
 Decreases
statute (105)
 tax benefits year $9,635 $490 $220


NOTE 11 – OTHER RECEIVABLES
No significant other receivables are past due or credit impaired.
The carrying amount is a reasonable approximation of fair value due to the short-term nature of the receivables. Please refer to note 21 for further information on fair value hierarchies.

USDm                                | 2019 | 2018
----------------------------------- | ---- | ----
Partners and commercial managements | 1.9  | -
Derivative financial instruments    | 0.5  | 3.7
Tax receivables                     | 1.5  | 1.2
Other                               | 2.3  | 2.6
Balance as of 31 December           | 6.2  | 7.5

NOTE 11 RECEIVABLES
 No receivables past due credit impaired.
 carrying amount approximation fair value short-term. refer note 21 fair value hierarchies.
 2019
 Partners commercial managements.
 Derivative financial instruments.
 Tax receivables.
.
 Balance 31 December.


Substantial shareholdings
The voting rights in the table below have been determined in accordance with the requirements of the UK Listing Authority’s Disclosure and Transparency Rules DTR 5, and represent 3% or more of the voting rights attached to issued shares in the Company as at 28th February 2020 and 31st December 2019. There are no Controlling Founder Shareholders.

                                  | As at 31.12.19            |                           | As at 28.02.20            |
--------------------------------- | ------------------------- | ------------------------- | ------------------------- | -------------------------
Substantial shareholdings         | Number of Ordinary shares | % of issued share capital | Number of Ordinary shares | % of issued share capital
The Capital Group Companies, Inc. | 6,584,006                 | 8.9%                      | 6,598,428                 | 8.9%
Sun Life Financial, Inc.          | 5,566,823                 | 7.5%                      | 5,481,561                 | 7.4%
BlackRock, Inc.                   | 4,624,204                 | 6.3%                      | 4,913,790                 | 6.7%
Fiera Capital Corporation         | 4,764,251                 | 6.5%                      | 4,768,688                 | 6.5%
APG Groep N.V.                    | 4,068,000                 | 5.5%                      | 4,068,000                 | 5.5%
The Vanguard Group, Inc.          | 2,569,081                 | 3.5%                      | 2,637,287                 | 3.6%

shareholdings
 voting rights determined UK Listing Disclosure Transparency Rules represent 3% voting rights shares 28th February 2020 31st December 2019. no Controlling Founder Shareholders.
 31.
 shareholdings Ordinary shares issued
 Capital Group Companies. 6,584,006 8.
 Sun Life Financial. 5,566,823 7. 5,481,561.
 BlackRock. 4,624,204 6. 3%,790.
 Fiera Capital Corporation 4,764,251 6. 5% 4,768,688.
 APG Groep. 4,068,000.
 Vanguard Group. 2,569,081 3. 5% 2,637,287.