Stock-Based Compensation Expense
All share-based awards are measured based on the grant date fair value of the awards and recognized in the Consolidated Statements of Operations and Comprehensive Loss over the period during which the employee is required to perform services in exchange for the award (generally the vesting period of the award).
The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model, which requires assumptions, including the fair value of the Company's underlying common stock, expected term, expected volatility, risk-free interest rate and dividend yield of the Company's common stock. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, share-based compensation expense could be materially different in the future.
These assumptions are estimated as follows:
• Fair Value of Common Stock. The Company uses the five-day volume weighted average price for its common stock as reported on the New York Stock Exchange.
• #Expected Term. The Company determines the expected term based on the average period the stock options are expected to remain outstanding. The Company bases the expected term assumptions on its historical behavior combined with estimates of the post-vesting holding period.
• Expected Volatility. The Company determines the price volatility factor based on the Company's historical volatility over the expected life of the stock options.
• Risk-Free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes valuation model on the yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term of the stock options for each stock option group.
• Expected Dividend. The Company has not paid and does not anticipate paying any cash dividends in the foreseeable future and, therefore, uses an expected dividend yield of zero in the option pricing model.
The grant weighted average assumptions used to estimate the fair value of stock options granted to employees were as follows:

                        | Years ended       |
----------------------- | ----------------- | -----------------
                        | December 31, 2019 | December 31, 2018
Expected volatility     | 50.7%             | 54.2%
Risk-free interest rate | 2.25%             | 2.72%
Dividend yield          | Nil               | Nil
Average expected life   | 4.77              | 5.31

Stock-Based Compensation Expense
 share-based awards measured grant date fair value recognized in Consolidated Statements of Operations Comprehensive Loss services vesting period.
 Company estimates fair value stock options Black-Scholes option valuation model value common stock expected term volatility risk interest rate dividend yield. estimates involve uncertainties judgment. change compensation expense.
 assumptions estimated
 Fair Value Common Stock. uses five-day volume average price common stock New York Stock Exchange.
 #Expected Term. determines term. historical behavior post-vesting holding period.
 Expected Volatility. price volatility historical volatility.
 Risk-Free Interest Rate. yield U. S. Treasury zero-coupon issues equivalent remaining term stock options.
 Expected Dividend. cash dividends uses expected dividend yield zero option pricing model.
 grant weighted average assumptions fair value stock options
 December 31, 2019 December 31, 2018
 Expected volatility.54. 2%
 Risk-free interest. 72%
 Dividend yield
 Average life.


Selected financial data
Unaudited information
The selected financial data shown below include the results of Vodafone India as discontinued operations in all years following the agreement to combine it with Idea Cellular.
Notes: 1 See note 8 to the consolidated financial statements, “Earnings per share”. Earnings and dividends per ADS is calculated by multiplying earnings per ordinary share by ten, the number of ordinary shares per ADS.
2 On 19 February 2014, we announced a “6 for 11” share consolidation effective 24 February 2014. This had the effect of reducing the number of shares in issue from 52,821,751,216 ordinary shares (including 4,351,833,492 ordinary shares held in Treasury) as at the close of business on 18 February 2014 to 28,811,864,298 new ordinary shares in issue immediately after the share consolidation on 24 February 2014.
3 The final dividend for the year ended 31 March 2019 was proposed by the Directors on 14 May 2019 and is payable on 2 August 2019 to holders of record as of 7 June 2019. The total dividends have been translated into US dollars at 31 March 2019 for purposes of the above disclosure but the dividends are payable in US dollars under the terms of the ADS depositary agreement.

At/for the year ended 31 March                              | 2019     | 2018    | 2017     | 2016     | 2015
----------------------------------------------------------- | -------- | ------- | -------- | -------- | -------
Consolidated income statement data (€m)                     |          |         |          |          |
Revenue                                                     | 43,666   | 46,571  | 47,631   | 49,810   | 48,385
Operating (loss)/profit                                     | (951)    | 4,299   | 3,725    | 1,320    | 2,073
(Loss)/profit before taxation                               | (2,613)  | 3,878   | 2,792    | (190)    | 1,734
(Loss)/profit for financial year from continuing operations | (4,109)  | 4,757   | (1,972)  | (5,127)  | 7,805
(Loss)/profit for the financial year                        | (7,644)  | 2,788   | (6,079)  | (5,122)  | 7,477
Consolidated statement of financial position data (€m)      |          |         |          |          |
Total assets                                                | 142,862  | 145,611 | 154,684  | 169,107  | 169,579
Total equity                                                | 63,445   | 68,607  | 73,719   | 85,136   | 93,708
Total equity shareholders’ funds                            | 62,218   | 67,640  | 72,200   | 83,325   | 91,510
Earnings per share1,2                                       |          |         |          |          |
Weighted average number of shares (millions)                |          |         |          |          |
– Basic                                                     | 27,607   | 27,770  | 27,971   | 26,692   | 26,489
– Diluted                                                   | 27,607   | 27,857  | 27,971   | 26,692   | 26,629
Basic (loss)/earnings per ordinary share                    | (29.05)c | 8.78c   | (22.51)c | (20.25)c | 27.48c
Diluted (loss)/earnings per ordinary share                  | (29.05)c | 8.76c   | (22.51)c | (20.25)c | 27.33c
Basic (loss)/earnings per share from continuing operations  | (16.25)c | 15.87c  | (7.83)c  | (20.27)c | 28.72c
Cash dividends1,3                                           |          |         |          |          |
Amount per ordinary share (eurocents)                       | 9.00c    | 15.07c  | 14.77c   | –        | –
Amount per ADS (eurocents)                                  | 9.00c    | 15.07c  | 147.7c   | –        | –
Amount per ordinary share (pence)                           | –        | –       | –        | 11.45p   | 11.22p
Amount per ADS (pence)                                      | –        | –       | –        | 114.5p   | 111.2p
Amount per ordinary share (US cents)                        | 10.10c   | 17.93c  | 18.52c   | 16.49c   | 16.65c
Amount per ADS (US cents)                                   | 10.10c   | 179.3c  | 182.5c   | 164.9c   | 166.5c

financial data
 Vodafone India discontinued operations Idea Cellular.
 note 8 statements per. ten.
 19 February 2014, “6 for 11” share consolidation 24 February 2014. 52,821,751,216 4,351,833,492 28,811,864,298.
 final dividend year 31 March 2019 proposed 14 May 2019 payable 2 August 2019 7 June 2019. dividends translated US dollars 31 March 2019 payable US dollars ADS depositary agreement.
 2019 2018 2017 2016 2015
 Consolidated income statement data (€m)
 Revenue 43,666 46,571 47,631 49,810 48,385
 Operating (loss)/profit (951) 4,299 3,725 1,320 2,073
/profit before taxation (2,613) 3,878 2,792 (190) 1,734
)/profit operations (4,109) 4,757 (1,972) (5,127) 7,805
financial year (7,644) 2,788 (6,079) (5,122) 7,477
 Consolidated financial position data (€m
 assets 142,862 145,611 154,684 169,107,579
 equity 63,445 68,607 73,719 85,136 93,708
 equity shareholders’ funds 62,218 67,640 72,200 83,325 91,510
 Earnings per
 Weighted average shares (millions
 27,607 27,770 27,971 26,692
/earnings share (29. 8. (22. 27.
 (29. 8. 27.
 operations (16. 25 15. (7. 28.
 Cash dividends1
 Amount ordinary share (eurocents 9. 15. 14.
 9. 147.
 Amount ordinary share (pence 11. 45p 11. 22p
ADS 114. 111. 2p
 ordinary share cents 10. 17. 18. 52c 16. 65c
 ADS cents 10. 179. 182. 5c 164. 166.


11. Quarterly financial information (unaudited): (Continued)
(1) Included in net income for the three months ended September 30, 2019 and December 31, 2019 are an unrealized gain and (loss) on foreign exchange on the Company’s 2024 Notes of $6.1 million and ($4.0) million, respectively.

                                                                |                | Three months ended                                 |                    |
--------------------------------------------------------------- | -------------- | -------------------------------------------------- | ------------------ | -----------------
                                                                | March 31, 2018 | June 30, 2018                                      | September 30, 2018 | December 31, 2018
                                                                |                | (in thousands, except share and per share amounts) |                    |
Service revenue                                                 | $128,706       | $129,296                                           | $130,139           | $132,049
Network operations, including equity-based compensation expense | 54,875         | 54,379                                             | 54,615             | 55,660
Gains on equipment transactions                                 | 117            | 357                                                | 416                | 92
Operating income                                                | 20,637         | 21,354                                             | 22,255             | 22,311
Net income                                                      | 6,784          | 6,552                                              | 8,231              | 7,100
Net income per common share—basic and diluted                   | 0.15           | 0.15                                               | 0.18               | 0.16
Weighted-average number of common shares—basic                  | 44,923,973     | 45,016,767                                         | 45,105,830         | 45,284,481
Weighted-average number of common shares—diluted                | 45,294,697     | 45,536,473                                         | 45,699,635         | 45,803,418

. Quarterly financial information
 income three months September December 31, unrealized gain foreign exchange 2024 Notes $6. 1 million$4. million.
 Three months
 March 31, June 30 September December 31, 2018
 Service revenue $128,706 $129,296 $130,139 $132,049
 Network operations equity compensation expense 54,875 54,379 55,660
 Gains equipment transactions 117
 Operating income 20,637 21,354 22,255
 Net income 6,784 6,552 8,231 7,100
 common diluted.
-average 44,923,973 45,016,767,105,830
 45,294,697,536,473,635,803,418


The total compensation of the Executive Board members for each of the years 2019, 2018, and 2017 was as follows:
Executive Board Compensation
1) Portion of total executive compensation allocated to the respective year

€ thousands                  | 2019   | 2018   | 2017
---------------------------- | ------ | ------ | ------
Short-term employee benefits | 17,378 | 18,652 | 16,634
Share-based payment1)        | 32,393 | 23,646 | 25,723
Subtotal1)                   | 49,771 | 42,298 | 42,357
Post-employment benefits     | 2,825  | 1,106  | 1,312
Thereof defined-benefit      | 2,056  | 250    | 423
Thereof defined-contribution | 769    | 856    | 889
Total1)                      | 52,596 | 43,404 | 43,669

compensation Executive Board 2019 2018 2017
 compensation
 2019 2018
 Short-term benefits 17,378 18,652,634
 Share-based 32,393 23,646 25,723
 49,771 42,298
 Post-employment benefits 2,825 1,106 1,312
 defined-benefit 2,056 423
-contribution 769 856
 52,596 43,404 43,669


BALANCE SHEET DATA
(In thousands)
(1) Working capital consists of current assets less current liabilities. Amounts prior to 2016 have been recast to conform to the current period’s presentation as a result of our adoption of Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes. See Note 1 of Notes to Consolidated Financial Statements, included in Part II, Item 8 of this report for additional information.
(2) Total debt outstanding consisted of taxable revenue bonds due to the State of Alabama Industrial Development Authority. The bonds matured on January 1, 2020 and were repaid in full on January 2, 2020. See Note 12 of Notes to Consolidated Financial Statements, included in Part II, Item 8 of this report for additional information.

As of December 31,   | 2019     | 2018     | 2017     | 2016     | 2015
-------------------- | -------- | -------- | -------- | -------- | --------
Working capital (1)  | $207,599 | $237,416 | $306,296 | $226,367 | $219,219
Total assets         | $545,118 | $628,027 | $669,094 | $667,235 | $632,904
Total debt (2)       | $24,600  | $25,600  | $26,700  | $27,800  | $28,900
Stockholders’ equity | $380,426 | $446,279 | $497,911 | $479,517 | $480,160

BALANCE SHEET
 Working capital assets less liabilities. Accounting Standards Update 2015-17. Note 1.
 debt taxable bonds Alabama Industrial Development Authority. bonds matured January 1 2020 repaid January 2, 2020. Note 12.
 December 31, 2019 2018 2017 2016 2015
 Working capital $207,599 $237,416 $306,296 $226,367 $219,219
 Total assets $545,118 $628,027 $669,094 $667,235 $632,904
 Total debt $24,600 $25,600 $26,700 $27 $28
 Stockholders’ equity $380,426 $446,279 $497,911


Administrative expenses
The Group has adopted IFRS 16 ‘Leases’ in the period, which impacts Other costs and Depreciation & amortisation within Operating profit. Property and vehicle rental charges are no longer included in other costs, and depreciation now includes depreciation on leased assets. Prior period comparatives have been restated to reflect these changes as the fully retrospective approach has been used.
Operating costs continue to be well controlled, with administrative expenses increasing by 3% to £112.3m (2018 restated: £108.8m).
People costs, which comprise all staff costs including third-party contractor costs, increased by 3% in the year to £56.4m (2018: £54.8m). The increase in people costs was driven primarily by underlying salary costs which increased due to strong competition for digital talent, however this has been partially offset by a reduction in average full-time equivalent employees (‘FTEs’) (including contractors) to 804 (2018: 824). The number of FTEs was particularly impacted in the fourth quarter by the transfer of 15 staff to Dealer Auction, our joint venture with Cox Automotive UK. Share-based payments, including applicable national insurance costs of £5.9m (2018: £3.7m), have been included within people costs. The year-on-year increase in the share-based payment charge was due to leavers under the Performance Share Plan in 2018 for which a credit was recognised in the prior year, and a change in the way senior management are remunerated. The Group now settles a greater proportion of the senior management incentive scheme in shares which increases the share-based payment charge with an offset realised within cash bonuses.
Marketing spend increased in line with revenue by 8% to £17.6m (2018: £16.3m), as we look to maintain and enhance our audience position and educate consumers on new products such as new car offerings and search by monthly payment.
Other costs, which include data services, property related costs and other overheads, remain well controlled and increased by 2% on a like-for-like basis to £29.4m (2018 restated: £28.7m).
Depreciation & amortisation remained broadly flat at £8.9m (2018 restated: £9.0m). Within this was depreciation of £2.0m in relation to lease assets (2018 restated: £1.9m).
1    2018 has been restated for the impact of IFRS 16.

                              | 2019  | 2018  |
----------------------------- | ----- | ----- | ------
Costs                         | £m    | £m    | Change
People costs                  | 56.4  | 54.8  | 3%
Marketing                     | 17.6  | 16.3  | 8%
Other costs                   | 29.4  | 28.7  | 2%
Depreciation and amortisation | 8.9   | 9.0   | (1%)
Total administrative expenses | 112.3 | 108.8 | 3%

 Group adopted IFRS 16 ‘Leases’ impacts costs Depreciation amortisation Operating profit. Property vehicle rental charges included depreciation includes leased assets. Prior comparatives restated.
 Operating costs controlled administrative expenses increasing 3% to £112. 3m (2018 £108. 8m.
 People costs increased 3% £56. 4m (2018 £54. 8m. increase salary costs digital offset reduction full-time employees 804 (2018 824). impacted transfer 15 staff Dealer Auction Cox Automotive. Share-based payments national insurance costs £5. 9m (2018 £3. included costs. increase due Performance Share Plan change senior management. Group settles senior management incentive scheme shares increases cash bonuses.
 Marketing spend increased 8% to £17. 6m (2018 £16.
 Other costs data services property overheads controlled increased 2% to £29. 4m (2018 £28. 7m.
Depreciation amortisation flat £8. 9m restated £9. depreciation £2. lease assets restated £1. 9m.
 restated IFRS 16.
 Costs
 56. 54. 3%
 Marketing 17. 16. 8%
 29. 28.
 Depreciation amortisation 8. 9 9.
 administrative expenses 112. 108. 3%


Property and equipment, net (in millions):
In September 2017, we entered into an agreement to sell certain land and buildings located in Sunnyvale, California, with a book value of $118 million, for a total of $306 million, through two separate and independent closings. Upon the completion of the first closing in fiscal 2018, we consummated the sale of properties with a net book value of $66 million for cash proceeds of $210 million, resulting in a gain, net of direct selling costs, of $142 million. The remaining properties, consisting of land with a net book value of $52 million, were classified as assets held-for-sale, and included as other current assets in our consolidated balance sheets as of April 26, 2019 and April 27, 2018. We will consummate the sale of these properties, and receive cash proceeds of $96 million, upon the completion of the second closing, which is expected to occur within the next 12 months. That closing is subject to due diligence, certain termination rights and customary closing conditions, including local governmental approval of the subdivision of a land parcel.

                                                      | April 26, 2019 | April 27, 2018
----------------------------------------------------- | -------------- | --------------
Land                                                  | $ 106          | $ 106
Buildings and improvements                            | 605            | 594
Leasehold improvements                                | 86             | 88
Computer, production, engineering and other equipment | 817            | 733
Computer software                                     | 357            | 357
Furniture and fixtures                                | 105            | 99
Construction-in-progress                              | 10             | 27
                                                      | 2,086          | 2,004
Accumulated depreciation and amortization             | (1,327 )       | (1,248 )
Property and equipment, net                           | $ 759          | $ 756

Property equipment net
 September 2017 sell land buildings Sunnyvale California book value $118 million $306 million two closings. first closing 2018 sale value $66 million cash proceeds $210 million gain $142 million. remaining properties $52 million assets held-for-sale balance sheets April 26, 2019 27, 2018. consummate sale receive cash proceeds $96 million second closing 12 months. subject due diligence termination rights closing conditions local approval.
 April 26, 2019 April 27, 2018
 Land 106
 Buildings improvements 605
 Leasehold improvements
 Computer production engineering equipment
 software
 Furniture fixtures
 Construction-in-progress
 Accumulated depreciation amortization (1,327
 Property equipment net $ 759 $ 756


S. INCOME TAXES
The components of income (loss) before income taxes and the provision (benefit) for income taxes as shown in the consolidated statements of operations were as follows:
Income tax expense for 2019, 2018 and 2017 totaled $58.3 million, $16.0 million and $266.7 million, respectively. The effective tax rate for 2019, 2018 and 2017 was 11.1%, 3.4% and 50.9%, respectively.
On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”), making significant changes to the Internal Revenue Code. The Tax Reform Act has significant direct and indirect implications for accounting for income taxes under ASC 740, “Accounting for Income Taxes” some of which could not be calculated with precision until further clarification and guidance was made available from tax authorities, regulatory bodies or the FASB. In light of this uncertainty, on December 22, 2017 the SEC issued Staff Accounting Bulletin (“SAB”) No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” to address uncertainty in the application of U.S. GAAP when the registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. In accordance with SAB 118, Teradyne recorded $186.0 million of additional income tax expense in the fourth quarter of 2017 which represented Teradyne’s best estimate of the impact of the Tax Reform Act in accordance with Teradyne’s understanding of the Tax Reform Act and available guidance as of that date. The $186.0 million was primarily composed of expense of $161.0 million related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings, $33.6 million of expense related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, and a benefit of $10.3 million associated with the impact of correlative adjustments on uncertain tax positions. In accordance with the requirements of SAB 118, in the fourth quarter of 2018, Teradyne completed its analysis of the effect of the Tax Reform Act based on the application of the most recently available guidance as of December 31, 2018 and recorded $49.5 million of net income tax benefit. The net benefit consisted of $51.7 million of benefit resulting from a reduction in the estimate of the one-time transition tax on the mandatory deemed repatriation of foreign earnings and an expense of $2.2 million associated with the impact of correlative adjustments on uncertain tax positions.

                                     | 2019     | 2018           | 2017
------------------------------------ | -------- | -------------- | --------
                                     |          | (in thousands) |
Income before income taxes           |          |                |
U.S                                  | $192,442 | $189,691       | $76,699
Non-U.S                              | 333,330  | 278,110        | 447,713
                                     | $525,772 | $467,801       | $524,412
Provision (benefit) for income taxes |          |                |
Current:                             |          |                |
U.S. Federal                         | $19,297  | $(59,122)      | $162,679
Non-U.S                              | 52,810   | 45,083         | 64,313
State                                | (4,347)  | 1,721          | 2,623
                                     | 67,760   | (12,318)       | 229,615
Deferred:                            |          |                |
U.S. Federal                         | (4,522)  | 29,252         | 43,687
Non-U.S                              | (8,007)  | (1,243)        | (6,476)
State                                | 3,073    | 331            | (106)
                                     | (9,456)  | 28,340         | 37,105
Total provision for income taxes     | $58,304  | $16,022        | $266,720

. INCOME TAXES
 income before provision consolidated statements operations
 Income tax expense 2019 2018 2017 totaled $58. 3 million $16. 0 million $266. 7 million. effective tax rate 11. 1% 3. 4% 50. 9%.
 December 22, 2017 U. S. enacted Tax Cuts Jobs Act 2017 Reform Internal Revenue Code. implications accounting income taxes ASC clarification tax authorities FASB. December 22, 2017 SEC issued Staff Accounting Bulletin No. 118 Tax Accounting Implications Tax Cuts and Jobs Act uncertainty. GAAP information tax Reform Act. Teradyne recorded $186. 0 million additional income tax expense fourth quarter 2017 estimate impact Tax Reform Act. $186. million expense $161. 0 million-time transition tax repatriation foreign earnings $33. 6 million remeasurement deferred tax assets liabilities benefit $10. 3 million adjustments uncertain tax positions.quarter 2018 Teradyne Tax Reform Act recorded $49. million net income tax benefit. $51. 7 million reduction one-time transition tax foreign earnings expense $2. 2 million adjustments tax positions.
 Income before taxes
. $192,442 $189,691 $76,699
 Non. 333,330 278,110 447,713
 $525,772 $467,801 $524,412
 Provision) income taxes
. $19,297(59,122 $162,679
 Non. 52,810 45,083 64,313
 2,623
 67,760 (12,318) 229,615
 Deferred
. (4,522) 29,252 43,687
 Non. (8,007) (1,243) (6,476)
 37,105
 Total provision income taxes $58,304 $16,022 $266,720


RECENT DEVELOPMENTS AND RESULTS OF OPERATIONS
The results of operations that follow have first been divided into (a) our controlling interests in our publicly-traded subsidiaries Teekay LNG and Teekay Tankers and (b) Teekay Parent.
Within these groups, we have further subdivided the results into their respective lines of business. The following table (a) presents revenues and income (loss) from vessel operations for each of Teekay LNG and Teekay Tankers, and for Teekay Parent, and (b) reconciles these amounts to our consolidated financial statements.
(1) During 2019, Teekay Tankers' ship-to-ship transfer business provided operational and maintenance services to Teekay LNG Bahrain Operations L.L.C., an entity wholly-owned by Teekay LNG, for the LNG receiving and regasification terminal in Bahrain. Also during 2019, the Magellan Spirit LNG carrier was chartered by Teekay LNG to Teekay Parent for a short period of time. During 2018, Teekay Parent chartered in two LNG carriers from Teekay LNG until March and April 2018.

                                | Revenues  |           | Income (loss) from vessel operations |
------------------------------- | --------- | --------- | ------------------------------------ | -------
(in thousands of U.S. dollars)  | 2019      | 2018      | 2019                                 | 2018
Teekay LNG                      | 601,256   | 510,762   | 299,253                              | 148,599
Teekay Tankers                  | 943,917   | 776,493   | 123,883                              | 7,204
Teekay Parent                   | 413,806   | 451,659   | (219,094)                            | 8,516
Elimination of intercompany (1) | (13,588)  | (10,426)  | —                                    | —
Teekay Corporation Consolidated | 1,945,391 | 1,728,488 | 204,042                              | 164,319

DEVELOPMENTS RESULTS
 divided interests Teekay LNG Tankers Teekay Parent.
 subdivided lines business. table presents revenues income (loss Teekay LNG Tankers Parent reconciles consolidated financial statements.
 2019 Teekay Tankers transfer services LNG Bahrain Operations. LNG terminal Bahrain. Magellan Spirit LNG carrier chartered LNG Teekay Parent. Teekay Parent chartered two LNG carriers March April 2018.
 Revenues Income (loss) operations
. dollars
 Teekay LNG,256 510,762 299,253 148,599
 Teekay Tankers 943,917 776,493 123,883 7
 Teekay Parent 413,806 451,659 (219,094) 8,516
,426
 Teekay Corporation Consolidated 1,945,391 1,728,488 204,042 164,319


Note 4. Expenses
Accounting policy for expenses
Operating lease costs
Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a straight-line basis over the term of the lease.
Finance costs
All finance costs are expensed in the period in which they are incurred.
Research and development costs
Expenditure on research activities, undertaken with the prospect of obtaining new technical knowledge and understanding, is recognised in the statement of profit or loss and other comprehensive income as an expense when it is incurred.
Expenditure on development activities is charged as incurred, or deferred where these costs are directly associated with either integration of acquired technology or the development of new technology and it is determined that the technology has reached technological feasibility. Costs are deferred to future periods to the extent that they are expected beyond any reasonable doubt to be recoverable. The costs capitalised comprises directly attributable costs, including costs of materials, services and direct labour. Deferred costs are amortised from the date of commercial release on a straight-line basis over the period of the expected benefit, which varies from 2 to 10 years.

Consolidated                                                       |        |
------------------------------------------------------------------ | ------ | ------
                                                                   | 2019   | 2018
                                                                   | US$000 | US$000
Profit before income tax includes the following specific expenses: |        |
Included in professional advice expense                            |        |
Costs associated with acquisitions                                 | 244    | 572
Finance costs                                                      |        |
Interest and finance charges paid/payable                          | 1      | 2
Unwinding of the discount on provisions                            | 199    | 60
Finance costs expensed                                             | 200    | 62
Operating leases included in income statement                      |        |
Office rent                                                        | 4,339  | 3,538
Equipment                                                          | 12     | 16
Motor vehicle                                                      | 51     | 96
Total expense relating to operating leases                         | 4,402  | 3,650
Post-employment benefits                                           |        |
Post-employment benefits: defined contribution                     | 2,169  | 1,870
Research and development costs expensed                            |        |
Research and development costs incurred                            | 18,478 | 17,793

Note 4. Expenses
 Accounting policy
 Operating lease costs
 incentives charged to profit loss-line over term lease.
 Finance costs
 expensed incurred.
 Research development costs
 new technical knowledge recognised in profit loss income expense.
 charged incurred deferred associated with integration acquired technology or development new technology technological feasibility. Costs deferred to future periods expected recoverable. costs capitalised attributable costs materials services direct labour. Deferred costs amortised from date commercial release expected benefit 2 to 10 years.
 US$000
 Profit before income tax includes expenses
 professional advice expense
 Costs acquisitions
 Finance costs
 Interest finance charges
 Unwinding discount provisions
 Finance costs expensed
 Operating leases income statement
 Office rent 3,538
 Equipment
 Motor vehicle
 expense operating leases 3,650
 Post-employment benefits
expensed
 incurred 18,478 17,793


21. Supplemental Data
The following are additional required disclosures and other material items:

                                                             |        | Years Ended June 30, |
------------------------------------------------------------ | ------ | -------------------- | -------
($ in millions)                                              | 2019   | 2018                 | 2017
Cost Data:                                                   |        |                      |
Repairs and maintenance costs                                | $120.4 | $108.0               | $99.1
Cash Flow Data:                                              |        |                      |
Noncash investing and financing activities:                  |        |                      |
Noncash purchases of property, plant, equipment and software | $16.1  | $16.5                | $13.7
Cash paid (received) during the year for:                    |        |                      |
Interest payments, net                                       | $27.6  | $29.5                | $27.7
Income tax payments (refunds), net                           | $27.5  | $33.7                | $(33.3)

. Supplemental Data
 disclosures material items
 Ended June 30
 millions 2019
 Cost Data
 Repairs maintenance $120. $108. $99.
 Cash Flow
 Noncash investing financing
 purchases property plant equipment software $16. $16. $13.
 Cash
 Interest payments $27. $29. $27.
 Income tax payments $27. $33.


15 Financial risk management (continued)
(b) Credit risk
Credit risk arises from cash and cash equivalents, and trade and other receivables.
(ii) Trade and other receivables
Customer credit risk is managed subject to the Group’s established policy, procedures and control relating to customer credit risk management. Credit evaluations are performed on all customers. Outstanding customer receivables are monitored regularly.
The Group aims to minimise concentration of credit risk by undertaking transactions with a large number of customers. In addition, receivable balances are monitored on an ongoing basis with the intention that the Group’s exposure to bad debts is minimised.
Revenues from data centre services of $61.2 million were derived from two customers (2018: $44.4 million from one customer) whose revenue comprised more than 37% (2018: 29%) of total data centre services revenue.
The maximum exposure to credit risk at the end of the reporting period is the carrying value of each class of the financial assets mentioned above and each class of receivable disclosed in Note 5. The Group does not require collateral in respect of financial assets.
The Group applies the simplified approach to providing for expected credit losses prescribed by AASB 9, which permits the use of the lifetime expected loss provision for all trade receivables. The loss allowance provision as at 30 June 2019 is determined as follows; the expected credit losses below also incorporate forward looking information.

30 June 2019             | Current | 0 to 30 days past due | 31 to 60 days past due | More than 60 days past due | Total
------------------------ | ------- | --------------------- | ---------------------- | -------------------------- | ------
                         | $'000   | $'000                 | $'000                  | $'000                      | $'000
Expected loss rate       | 1%      | 5%                    | 7.5%                   | 20%                        | -
Gross carrying amount    | 23,762  | 2,068                 | 787                    | 1,703                      | 28,320
Loss allowance provision | 238     | 103                   | 59                     | 341                        | 741
Net receivables          | 23,524  | 1,965                 | 728                    | 1,362                      | 27,579

Financial risk management
 Credit risk
 from cash equivalents trade receivables.
 credit risk managed policy. Credit evaluations customers. Outstanding receivables monitored.
 credit risk. receivable balances monitored exposure bad debts.
 Revenues data centre services $61. 2 million from two customers (2018 $44. 4 million one 37% (2018 29%) total revenue.
 maximum exposure to credit risk carrying value financial assets. require collateral.
 applies simplified approach credit losses AASB 9 lifetime loss provision for trade receivables. loss allowance provision 30 June 2019.
 Current 0 to 30 days past 31 to 60 days due More than 60 days Total
 Expected loss rate 1%  5%. 20%
 Gross carrying amount 23,762 2,068  787 1,703 28,320
 Loss allowance provision  238  103 59  341
receivables 1,965 27,579


Section 6: Our investments
This section outlines our group structure and includes information about our controlled and associated entities. It provides details of changes to these investments and their effect on our financial position and performance during the financial year. It also includes the results of our associated entities.
6.1 Parent entity disclosures
The accounting policies of the parent entity, iSelect Limited, which have been applied in determining the financial information shown below, are the same as those applied in the consolidated financial statements except for accounting for investments in subsidiaries which are measured at cost.
There are no contractual or contingent liabilities of the parent as at reporting date (2018: $nil). iSelect Limited has issued bank guarantees and letters of credit to third parties for various operational purposes. It is not expected these guarantees will be called on.

                                              | CONSOLIDATE |
--------------------------------------------- | ----------- | ----------
                                              | 2019 $’000  | 2018 $’000
Financial Position                            |             |
Assets                                        |             |
Current Assets                                | 4,297       | 7,869
Non-Current Assets                            | 165,165     | 174,810
Total Assets                                  | 169,462     | 182,679
Liabilities                                   |             |
Current Liabilities                           | 92,352      | 93,067
Total Liabilities                             | 92,352      | 93,067
Net Assets                                    | 77,110      | 89,612
Equity                                        |             |
Contributed Equity                            | 111,290     | 111,066
Reserves                                      | 3,960       | 3,198
Accumulated Losses                            | (38,140)    | (24,652)
Total Equity                                  | 77,110      | 89,612
Financial Performance                         |             |
Loss of the parent entity                     | (4,812)     | (163)
Total comprehensive loss of the parent entity | (4,812)     | (163)

Section 6 investments
 outlines group structure controlled entities. changes financial position performance. results.
. Parent entity disclosures
 accounting policies iSelect Limited same consolidated financial statements investments subsidiaries cost.
 no contractual contingent liabilities reporting date. iSelect issued bank guarantees letters credit operational purposes. guarantees called.
 2019 2018
 Financial Position
 Current 4,297 7,869
 Non-Current Assets 165,165 174,810
 Total Assets 169,462 182,679
 Liabilities
 92,352 93,067
 Net Assets 77,110 89,612
 Contributed Equity 111,290 111,066
 Reserves 3,960 3,198
 Accumulated Losses (38,140) (24,652
,110
 Financial Performance
 Loss parent entity (4,812)


7. Property, Plant and Equipment and Leases
Property, plant and equipment at April 30, 2019 and 2018, consisted of the following (in thousands):
Depreciation and amortization expense for the years ended April 30, 2019 and 2018 was $2,802,000 and $2,484,000, respectively.
Maintenance and repairs charged to operations for the years ended April 30, 2019 and 2018 was approximately $309,000 and $466,000, respectively.
The Company leases its Long Island, New York headquarters building. On July 25, 2018, the Company signed an amendment to the lease which extends the current lease terms ten years and eight months through September 30, 2029. Pursuant to the amendment to the lease agreement, the annual rent will increase from $1,046,810 in 2019 to $1,276,056 in 2029. Under the terms of the lease, the Company is required to pay its proportionate share of real estate taxes, insurance and other charges.
In addition, the Company’s subsidiaries in New Jersey and California lease their office and manufacturing facilities. On February 1, 2018, FEI-Elcom entered into a new lease agreement in New Jersey for office and manufacturing space encompassing approximately 9,000 square feet. The monthly rent is $9,673 through the end of the lease which expires in January 31, 2021. FEI-Zyfer has signed a second amendment to its lease in California, which extends the lease an additional 88 months, beginning October 1, 2017 and expiring January 31, 2025. The average annual rent over the period of the amendment is approximately $312,000. FEI-Zyfer leases office and manufacturing space encompassing 27,850 square feet.
Rent expense under operating leases for the years ended April 30, 2019 and 2018 was approximately $1.2 million and $1.7 million, respectively. The Company records rent expense on its New York building and FEI-Zyfer facility on the straight-line method over the lives of the respective leases. As a result, as of April 30, 2019 and 2018, the Company’s Consolidated Balance Sheet included deferred rent payable of approximately $236,000 and $110,000, respectively, which will be recognized over the respective rental periods.

                                    | 2019      | 2018
----------------------------------- | --------- | --------
Buildings and building improvements | $2,692    | $2,790
Machinery, equipment and furniture  | 57,157    | 57,503
                                    | 59,849    | 60,293
Less, accumulated depreciation      | (46,811 ) | (46,166)
                                    | $13,038   | $ 14,127

. Property Plant Equipment Leases
 April 30, 2019 2018
 Depreciation amortization expense $2,802,000 $2,484,000.
 Maintenance repairs $309,000 $466,000.
 Company leases Long Island New York headquarters. July 25, 2018 amendment ten years September 30, 2029. annual rent $1,046,810 2019 to $1,276,056 2029. real estate taxes insurance charges.
 subsidiaries New Jersey California lease office manufacturing facilities. February 1, 2018 lease New Jersey office manufacturing space feet. monthly rent $9,673 January 31, 2021. amendment 88 months 2017 January 31, 2025. average annual rent $312,000. leases office manufacturing 27,850 square feet.
 Rent expense April 2019 2018 $1. 2 million $1. 7 million. rent expense New York building FEI-Zyfer facility.April 30 2019 Balance Sheet deferred rent $236,000 $110,000 recognized rental periods.
 Buildings improvements $2,692 $2,790
 Machinery furniture 57,157
 60,293
 accumulated depreciation (46,811,166
 $13,038,127


Valuation of Goodwill
Goodwill balances by reporting unit are as follows:
Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill is not amortized but is subject to an impairment test at a reporting unit level on an annual basis and when circumstances indicate that an impairment is more-likely-than-not. Such circumstances that might indicate an impairment is more-likely-than-not include a significant adverse change in the business climate for one of our reporting units or a decision to dispose of a reporting unit or a significant portion of a reporting unit. The test for goodwill impairment is a two-step process. The first step of the test is performed by comparing the fair value of each reporting unit to its carrying amount, including recorded goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step is performed to measure the amount of the impairment, if any, by comparing the implied fair value of goodwill to its carrying amount. Any resulting impairment would be recorded in the current period.
Determining the fair value of a reporting unit for purposes of the goodwill impairment test or for changes in our operating structure is judgmental in nature and involves the use of estimates and assumptions. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and also the magnitude of any such charge. Estimates of fair value are primarily determined using discounted cash flows and market multiples from publicly traded comparable companies. These approaches use significant estimates and assumptions including projected future cash flows, discount rate reflecting the inherent risk in future cash flows, perpetual growth rate and determination of appropriate market comparables.
We evaluate our reporting units when changes in our operating structure occur, and if necessary, reassign goodwill using a relative fair value allocation approach. As described in Note 18 to our Consolidated Financial Statements in Item 8 of this Form 10-K, beginning on October 1, 2017, we concluded that CMS became a separate operating segment. In conjunction with the changes to reporting units, we reassigned goodwill between CGD and CMS based on their relative fair values as of October 1, 2017. We estimated the fair value of CGD and CMS at October 1, 2017 based upon market multiples from publicly traded comparable companies in addition to discounted cash flows models for CMS and for a combination of CGD and CMS based on discrete financial forecasts developed by management for planning purposes. Cash flows beyond the discrete forecasts were estimated based on projected growth rates and financial ratios, influenced by an analysis of historical ratios and by calculating a terminal value at the end of the discrete financial forecasts. For the October 1, 2017 valuations, future cash flows were discounted to present value using a discount rate of 13% for our CMS reporting unit and 11% for the combination of our CGD and CMS reporting units.
For the first step of our fiscal 2019 annual impairment test, we estimated the fair value of CTS based upon market multiples from publicly traded comparable companies and for CGD and CMS, we estimated the fair value based upon a combination of market multiples from publicly traded comparable companies and discounted cash flow models. The discounted cash flows were based on discrete three-year financial forecasts developed by management for planning purposes. Cash flows beyond the discrete forecasts were estimated based on projected growth rates and financial ratios, influenced by an analysis of historical ratios and by calculating a terminal value at the end of the three-year forecasts. The future cash flows were discounted to present value using a discount rate of 15% for CGD and 12.5% for CMS. The results of our 2019 annual impairment test indicated that the estimated fair value for our CTS and CGD reporting units exceeded their carrying amounts by over 100%, while the estimated fair value of our CMS reporting unit exceeded its carrying amount by over 60%.
Unforeseen negative changes in future business or other market conditions for any of our reporting units including margin compression or loss of business, could cause recorded goodwill to be impaired in the future. Also, changes in estimates and assumptions we make in conducting our goodwill assessment could affect the estimated fair value of our reporting units and could result in a goodwill impairment charge in a future period.

September 30,                | 2019     | 2018          | 2017
---------------------------- | -------- | ------------- | --------
                             |          | (in millions) |
Cubic Transportation Systems | $  254.6 | $  49.8       | $  50.9
Cubic Mission Solutions      | 181.4    | 138.1         | —
Cubic Global Defense         | 142.1    | 145.7         | 270.7
Total goodwill               | $  578.1 | $  333.6      | $  321.6

Valuation Goodwill
 balances by reporting unit
 represents purchase price fair value assets acquired. not amortized subject to impairment test reporting unit level annual circumstances impairment more-likely-than-not. significant adverse change business climate decision dispose portion. test goodwill impairment two-step process. first fair value reporting unit to carrying amount including. If exceeds fair value second impairment fair value goodwill. resulting impairment recorded current period.
 Determining fair value goodwill impairment test changes judgmental involves estimates assumptions. impairment charge magnitude. Estimates determined discounted cash flows market multiples from publicly traded comparable companies. future cash flows discount rate perpetual growth rate market comparables.
 evaluate reporting units changes operating structure reassign goodwill relative fair value allocation approach. Note 18 Financial Statements Item 8 Form 10-K October 1, 2017 CMS separate operating segment.changes reporting units reassigned goodwill between CGD CMS fair values October 1, 2017. estimated fair value CGD CMS October 1 2017 market multiples discounted cash flows CMS financial forecasts. Cash flows estimated projected growth rates financial ratios historical ratios terminal value. valuations future cash flows discounted to present value 13% CMS 11% CGD CMS.
 fiscal 2019 estimated fair value CTS market multiples CGD CMS market multiples discounted cash flow models. discounted cash flows based three-year financial forecasts. Cash flows estimated projected growth rates financial ratios historical ratios terminal value. future cash flows discounted to present value discount 15% for CGD 12. 5% for CMS. 2019 test estimated fair value CTS CGD exceeded carrying amounts over 100% CMS exceeded carrying amount over 60%.
 negative changes in future business market conditions margin compression loss could cause goodwill.changes estimates assumptions goodwill affect value units goodwill impairment.
 30 2019
 millions
 Cubic Transportation Systems $ 254. 49. $ 50.
 Mission Solutions 181. 138.
 Global Defense 142. 145. 7 270.
 goodwill $. $. 6 $ 321.


Other Income (Expense), Net
Other expense, net decreased by $31 thousand in 2019 compared to 2018 as a result of the recognition of a $1.4 million loss on extinguishment related to the partial repurchase of our 2022 Notes and a $1.1 million increase in interest expense related to our convertible senior notes, offset by an increase of $2.7 million of interest income earned on our investment as a result of proceeds invested from our convertible note and common stock offerings.

                   | Year Ended December 31, |                        | Change |
------------------ | ----------------------- | ---------------------- | ------ | ------
                   | 2019                    | 2018                   | $      | %
                   |                         | (dollars in thousands) |        |
Other expense, net | $ 4,597                 | $ 4,628                | $ (31) | (0.7)%
% of revenue       | 2%                      | 3%                     |        |

Income Net
 decreased $31 thousand 2019 2018 $1. 4 million loss extinguishment repurchase 2022 Notes $1. 1 million increase interest expense convertible senior notes offset $2. 7 million interest income convertible note common stock offerings.
 Ended December 31,
 2019 2018
 expense net $ 4,597 $ 4,628.
 revenue 2% 3%


F. INVENTORIES
Inventories, net consisted of the following at December 31, 2019 and 2018:
Inventory reserves for the years ended December 31, 2019 and 2018 were $103.6 million and $100.8 million, respectively.

                | 2019           | 2018
--------------- | -------------- | --------
                | (in thousands) |
Raw material    | $118,595       | $89,365
Work-in-process | 32,695         | 31,014
Finished goods  | 45,401         | 33,162
                | $196,691       | $153,541

.
 December 31, 2019
 reserves $103. 6 million $100. 8 million.
 Raw material $118,595 $89,365
 Work-in-process 32,695 31,014
 Finished goods 45,401
 $196,691 $153,541


NOTE 14. INCOME (LOSS) PER SHARE (EPS)
Basic EPS is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. Our outstanding convertible preferred stocks are considered participating securities as the holders may participate in undistributed earnings with holders of common shares and are not obligated to share in our net losses.
Diluted EPS is computed by dividing the net income attributable to RiceBran Technologies common shareholders by the weighted average number of common shares outstanding during the period increased by the number of additional common shares that would have been outstanding if the impact of assumed exercises and conversions is dilutive. The dilutive effects of outstanding options, warrants, nonvested shares and restricted stock units that vest solely on the basis of a service condition are calculated using the treasury stock method. The dilutive effects of the outstanding preferred stock are calculated using the if-converted method.
Below are reconciliations of the numerators and denominators in the EPS computations, and information on potentially dilutive securities.
The impacts of potentially dilutive securities outstanding at December 31, 2019 and 2018, were not included in the calculation of diluted EPS in 2019 and 2018 because to do so would be anti-dilutive. Those securities listed in the table above which were anti-dilutive in 2019 and 2018, which remain outstanding, could potentially dilute EPS in the future.

Year Ended December 31                                                                                |            |
------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------- | ----------
                                                                                | 2019       | 2018
NUMERATOR: Basic and diluted - loss from continuing operations (in thousands)                                                                                | $ (13,735) | $ (8,101)
DENOMINATOR: Basic and diluted - weighted average number of common shares outstanding (in thousands)                                                                     | 32,359,316 | 22,099,149
Number of shares of common stock which could be purchased with weighted average outstanding securities not included in diluted EPS because effect would be antidilutive: |            |
Stock options                                                                                | 1,024,811  | 911,264
Warrants                                                                                | 8,443,547  | 16,383,944
Convertible preferred stock                                                                                | 224,848    | 581,680
Restricted stock units                                                                                | 1,235,287  | 623,603
Weighted average number of nonvested shares of common stock not included in diluted EPS because effect would be antidilutive                                             | 659,581    | 1,169,986

14. INCOME (LOSS) PER SHARE (EPS)
 calculated two-class method earnings allocated common stock participating securities rights dividends. convertible preferred stocks participating securities earnings not obligated net losses.
 Diluted EPS computed net income RiceBran Technologies common shares additional shares conversions dilutive. dilutive effects options warrants nonvested shares restricted stock units calculated treasury stock method. outstanding preferred stock if-converted method.
 reconciliations numerators denominators EPS computations information potentially dilutive securities.
 impacts dilutive securities December 31, 2019 2018 not included EPS. securities anti-dilutive could dilute EPS.
 Ended December 31
 NUMERATOR diluted loss operations thousands $ (13,735) $ (8,101)
 DENOMINATOR average common shares 32,359,316 22,099,149
shares common stock
 Stock options 1,024,811 911,264
 Warrants 8,443,547 16,383,944
 Convertible stock 224,848 581,680
 Restricted stock units 1,235,287 623,603
 nonvested shares 659,581 1,169,986


Stock-based compensation
The Company recognized $2.3 million, $2.1 million and $1.9 million of stock-based compensation expense for the years ended March 31, 2019, 2018 and 2017, respectively, as follows:
Stock-based compensation expense in the years ended March 31, 2019, 2018 and 2017 included $211,000, $207,000 and $150,000, respectively, related to the Company’s Employee Stock Purchase Plan.

                                    |        | Year Ended March 31,  |
----------------------------------- | ------ | --------------------- | ------
                                    | 2019   | 2018                  | 2017
                                    |        | (In thousands)        |
Cost of revenues                    | $234   | $259                  | $282
Research and development            | 1,310  | 1,141                 | 980
Selling, general and administrative | 722    | 670                   | 615
Total                               | $2,266 | $2,070                | $1,877

 recognized $2. 3 million. 1 million $1. 9 million stock compensation expense years March 2019 2018 2017
 included $211,000 $207,000 $150,000 Employee Stock Purchase Plan.
 March
 Cost revenues $234 $259
 Research development 1,310 1,141
 Selling general administrative 722 615
 $2,266 $2,070 $1,877


Principal Activities
The principal activities during the financial year within the Group were health, life and car insurance policy sales, mortgage brokerage, energy, broadband and financial referral services. There have been no significant changes in the nature of these activities during the year.
Review of results and operations1
Summary of financial results
1 Throughout this report, certain non-IFRS information, such as EBITDA, EBIT, Net Profit after Tax (NPAT), Earnings Per Share (EPS), Conversion Ratio, Leads and Revenue Per Sale (RPS) are used. Earnings before interest and income tax expense (EBIT) reflects profit for the year prior to including the effect of net finance costs and income taxes. Earnings before interest, income tax expense, depreciation and amortisation and loss on associate (EBITDA) reflects profits for the year prior to including the effect of net finance costs, income taxes, depreciation and amortisation and loss on associate. The individual components of EBITDA and EBIT are included as line items in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. Non-IFRS information is not audited. Reference to underlying results excludes the financial impacts of iMoney performance, impairment losses and write-offs from discontinued assets and operations, and material one-off transactions resulting from operations which are no longer core to the business.
2 Refer to the Reported versus Underlying Results reconciliation on page 112. The reconciliation forms part of the Review of Results and Operations
3 Restated due to retrospective adoption of new Accounting Standards.

                                                     | 2019  $’000 | 2018 $’000 RESTATED3 | CHANGE
---------------------------------------------------- | ----------- | -------------------- | ------
Continuing Operations                                |             |                      |
Operating revenue                                    | 154,159     | 176,931              | (13%)
Gross profit                                         | 52,963      | 45,139               | 17%
EBITDA                                               | 7,202       | 10,878               | (34%)
EBIT                                                 | (1,040)     | 1,405                | (174%)
NPAT                                                 | (2,003)     | 1,089                | (284%)
Reported Results (including discontinued operations) |             |                      |
Operating revenue                                    | 154,585     | 178,139              | (13%)
Gross profit                                         | 53,225      | 45,944               | 16
EBITDA                                               | 6,062       | (5,700)              | 206
EBIT                                                 | (2,252)     | (15,278)             | 85
NPAT                                                 | (4,360)     | (15,640)             | 72
EPS (cents)                                          | (1.7)       | (7.0)                | 76
Underlying Results                                   |             |                      |
Underlying EBITDA2                                   | 22,866      | 15,739               | 45
Underlying EBIT2                                     | 15,151      | 8,537                | 77
Underlying NPAT2                                     | 11,062      | 6,732                | 64
Underlying EPS2                                      | 5.1         | 3.1                  | 65

Activities
 health life car insurance sales mortgage brokerage energy broadband financial referral services. no significant changes.
 Review results
 Summary financial results
 non-IFRS information EBITDA Net Profit after Tax Earnings Per Share Conversion Ratio Leads Revenue Per Sale. Earnings before interest tax profit finance costs taxes. before interest depreciation loss profits. Consolidated Statement Profit Loss. Non-IFRS information not audited. results excludes impacts iMoney performance losses write-offs discontinued assets operations transactions.
 Reported versus Underlying Results reconciliation page 112. Review Results Operations
 Restated new Accounting Standards.
 2019 2018
 Operations
 Operating revenue 154,159 176,931 (13%)
 Gross profit 52,963 45,139 17%
 EBITDA 7,202 10,878 (34%
 EBIT (1,040) 1,405 (174%)
NPAT 1,089 (284%
 Results discontinued operations
 Operating revenue 154,585 178,139 (13%)
 Gross profit 53,225 45,944
 EBITDA 6,062 (5,700
 EBIT (2,252) (15,278
 (4,360 (15,640
 EPS.
 Results
 22,866 15,739
 15,151 8,537
 11,062
 EPS2.


GasLog Ltd. and its Subsidiaries
Notes to the consolidated financial statements (Continued)
For the years ended December 31, 2017, 2018 and 2019
(All amounts expressed in thousands of U.S. Dollars, except share and per share data)
14. Other Payables and Accruals
An analysis of other payables and accruals is as follows:
The unearned revenue represents charter hires received in advance in December 2019 relating to the hire period of January 2020 for 22 vessels (December 2018: 17 vessels).

                  | As of December 31, |
----------------- | ------------------ | -------
                  | 2018               | 2019
Unearned revenue  | 38,680             | 48,183
Accrued off-hire  | 7,376              | 6,968
Accrued purchases | 18,578             | 9,759
Accrued interest  | 38,107             | 36,746
Other accruals    | 24,709             | 34,586
Total             | 127,450            | 136,242

GasLog Ltd. Subsidiaries
 consolidated financial statements
 December 2017 2018 2019
 amounts. Dollars
.
 unearned revenue charter hires December 2019 January 2020 22 vessels 17.
 December
 Unearned revenue 38,680 48,183
 off-hire 7,376
 purchases 18,578 9,759
 interest 38,107 36,746
 Other accruals 24,709 34,586
 127,450 136,242


Note 3. Revenue from Contracts with Customers
Contract Assets
Our contract assets consist of capitalized commission costs and upfront payments made to customers. The current portion of capitalized commission costs and upfront payments made to customers are included in other current assets within our consolidated balance sheets. The non-current portion of capitalized commission costs and upfront payments made to customers are reflected in other assets within our consolidated balance sheets. Our amortization of contract assets during the years ended December 31, 2019 and 2018 were $2.4 million and $2.0 million, respectively. There were no amortized commission costs during the year ended December 31, 2017.
We review the capitalized costs for impairment at least annually. Impairment exists if the carrying amount of the asset recognized from contract costs exceeds the remaining amount of consideration we expect to receive in exchange for providing the goods and services to which such asset relates, less the costs that relate directly to providing those good and services and that have not been recognized as an expense. We did not record an impairment loss on our contract assets during the years ended December 31, 2019, 2018 and 2017.
The changes in our contract assets are as follows (in thousands):

                                                                          | Year Ended December 31, |
------------------------------------------------------------------------- | ----------------------- | -------
                                                                          | 2019                    | 2018
Beginning of period balance                                               | $2,881                  | $—
Commission costs and upfront payments to a customer capitalized in period | 4,141                   | 4,864
Amortization of contract assets                                           | (2,444)                 | (1,983)
End of period balance                                                     | $4,578                  | $2,881

. Revenue from Contracts Customers
 Assets
 assets capitalized commission costs upfront payments. current included in assets. non-current reflected. amortization contract assets December 31, 2019 2018 $2. 4 million $2. 0 million. no amortized commission costs December 31, 2017.
 review capitalized costs for impairment annually. Impairment exists if contract exceeds consideration. impairment loss on contract assets December 31, 2019 2018 2017.
 changes in contract assets thousands):
 Year Ended December 31,
 2018
 Beginning period balance $2,881
 Commission costs upfront payments 4,141,864
 Amortization contract assets (2,444) (1,983)
 End period balance $4,578 $2,881


2. CONCENTRATIONS OF CREDIT RISK
The Company’s principal financial instrument subject to potential concentration of credit risk is accounts receivable, which is unsecured. The Company provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of accounts receivable. The Company has adopted credit policies and standards intended to accommodate industry growth and inherent risk and it believes that credit risks are moderated by the financial stability of its major customers, conservative payment terms and the Company’s strict credit policies.
Revenue from significant customers, those representing 10% or more of revenue for the respective periods, are summarized as follows:
The Company provided its products to Apple through sales to multiple contract manufacturers.
These customers primarily purchase RF and Wi-Fi solutions for cellular base stations and a variety of mobile devices, including smartphones, wearables, laptops, tablets and cellular-based applications for the IoT.
Accounts receivable related to these customers (which includes multiple contract manufacturers) accounted for 49%, 26%, and 40% of the Company’s total net accounts receivable balance as of March 30, 2019, March 31, 2018 and April 1, 2017, respectively.
On May 16, 2019, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce placed Huawei and 68 of its non-U.S. affiliates on the “entity list” under Export Administration Regulations (EAR), which had the effect of prohibiting all future sales by the Company of any product to Huawei or its affiliates, absent obtaining a license from BIS. While BIS has broad authority to issue licenses, the rulemaking imposes a presumption that licenses will be denied.
Although Huawei is not prohibited from paying (and the Company is not restricted from collecting) accounts receivable for products sold to Huawei prior to the BIS action, the credit risks associated with these accounts may have increased as a result of this development. As of the date of this report, the Company is unable to predict the scope or duration of the new EAR restrictions on Huawei or the impact to the Company’s business or future results of operations.

                                         |      | Fiscal Year |
---------------------------------------- | ---- | ----------- | ----
                                         | 2019 | 2018        | 2017
Apple Inc. (“Apple”)                     | 32%  | 36%         | 34%
Huawei Technologies Co., Ltd. (“Huawei”) | 13%  | 8%          | 11%

. CREDIT RISK
 principal financial instrument is accounts receivable unsecured. provides for doubtful accounts equal to estimated losses. adopted credit policies standards industry growth risk risks moderated by financial stability customers conservative payment terms strict credit policies.
 Revenue from significant customers 10% or more revenue
 Company provided products to Apple multiple contract manufacturers.
 customers purchase RF Wi-Fi solutions for cellular base stations mobile devices.
 Accounts receivable 49% 26%, 40% net accounts receivable balance March 30, 2019 March 31, 2018 April 1, 2017.
 May 16, 2019 Bureau of Industry Security. placed Huawei 68 non-U. S. affiliates on Export future sales license from BIS. licenses presumption licenses denied.
 Huawei not prohibited from paying collecting accounts receivable for products credit risks may increased. predict scope duration new EAR restrictions on Huawei impact business future results.

 2019 2018 2017
 Apple Inc. 32% 36%
 Huawei Technologies. 13% 8%


Other Income (Expense)
Interest Income
Interest income represents interest earned on our cash, cash equivalents, and investments.
Interest income increased by $16.9 million in fiscal year 2019. The increase in our interest income is associated with the increase in invested funds, primarily as a result of proceeds of approximately $600 million related to the common stock and convertible note offering in March 2018 and, to a lesser extent, higher yields on those invested funds.
Interest Expense
Interest expense includes both stated interest and the amortization of debt discount and issuance costs associated with the $400.0 million aggregate principal amount of our Convertible Senior Notes that were issued in March 2018. Accordingly, interest expense in fiscal year 2019 is higher than fiscal year 2018 as the notes were only outstanding for part of fiscal year 2018.
Interest expense increased $10.9 million in fiscal year 2019, compared to the same period a year ago. Interest expense for fiscal year 2019 consists of noncash interest expense of $12.2 million related to the amortization of debt discount and issuance costs and stated interest of $5.0 million.
Other Income (Expense), Net
Other income (expense), net consists primarily of foreign exchange gains and losses resulting from fluctuations in foreign exchange rates on monetary asset and monetary liability balances that are denominated in currencies other than the functional currency of the entity in which they are recorded. We currently have entities with a functional currency of the Argentine Peso, Australian Dollar, Brazilian Real, British Pound, Canadian Dollar, Euro, Japanese Yen, Malaysian Ringgit, and Polish Zloty.
We realized a net currency exchange loss of $1.9 million in fiscal year 2019 as compared to a net currency exchange gain of $0.5 million in fiscal year 2018 as a result of exchange rate movements on foreign currency denominated accounts against the US Dollar.

                            | Fiscal years ended July 31, |                                    |          |
--------------------------- | --------------------------- | ---------------------------------- | -------- | -----
                            | 2019                        | 2018                               | Change   |
                            | Amount                      | Amount                             | ($)      | (%)
                            |                             | (In thousands, except percentages) |          |
Interest income             | $30,182                     | $13,281                            | 16,901   | 127
Interest expense            | $(17,334)                   | $(6,442)                           | (10,892) | 169
Other income (expense), net | $(1,867)                    | $509                               | (2,376)  | (467)

Income
 Interest
 cash equivalents investments.
 increased $16. 9 million 2019. increase invested funds proceeds $600 million common stock convertible note offering March 2018 higher yields.
 Interest Expense
 includes stated interest amortization debt discount issuance costs $400. 0 million Convertible Senior Notes March 2018. expense 2019 higher.
 expense increased $10. 9 million 2019. noncash $12. 2 million amortization debt discount issuance costs stated interest $5. 0 million.
 Income Net
 foreign exchange gains losses exchange rates balances currencies. entities Argentine Peso Australian Dollar Brazilian Real British Pound Canadian Dollar Euro Japanese Yen Malaysian Ringgit Polish Zloty.
 net currency exchange loss $1. 9 million 2019 gain $0. 5 million 2018 exchange rate movements foreign currency accounts Dollar.
 Fiscal years ended July 31,
 2018
$
 thousands
 Interest income $30,182 $13,281 16,901
 Interest expense $(17,334 $(6,442 (10
 Other income $(1,867) $509


Operating assets and liabilities
5 Trade and other receivables
(a) Trade receivables
(i) Classification as trade receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 30 - 60 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.
(ii) Fair values of trade and other receivables
Due to the short-term nature of the trade and other receivables, their carrying amount is considered to be the same as their fair value.
(iii) Impairment and risk exposure
Information about the Group's impairment policies, calculation of loss allowance and exposure to credit risk, foreign currency risk and interest rate risk can be found in note 15.
(b) Interest receivable
Interest receivable relates to interest accrued on term deposits. Credit risk of this is assessed in the same manner as cash and cash equivalents which is detailed in note 15.

                                |      | 30 June 2019 | 30 June 2018
------------------------------- | ---- | ------------ | ------------
                                | Note | $'000        | $'000
Trade receivables               | 5(a) | 28,320       | 36,522
Loss allowance (see note 15(b)) |      | (741)        | (1,254)
                                |      | 27,579       | 35,268
Interest receivable             | 5(b) | 54           | 27
GST receivable                  |      | 6,222        | 162
Other receivables               |      | 1            | 1,629
Total                           |      | 33,856       | 37,086

Operating assets liabilities
 Trade receivables
 Classification
 due goods services. due settlement 30 - 60 days current. recognised unconditional financing fair value. Group holds receivables collect contractual cash flows measures amortised cost effective interest method.
 Fair values
 short-term carrying amount same fair value.
 Impairment risk exposure
 impairment policies loss allowance credit foreign currency interest rate risk note 15.
 Interest receivable
 accrued term deposits. Credit risk assessed cash equivalents note 15.
 30 June 2019 30 June 2018
 Trade receivables 5(a 28,320 36,522
 Loss allowance 15 (741) (1,254)
 27,579 35,268
 Interest receivable 5(b)
 GST receivable 6,222
 Other receivables 1,629
 33,856 37,086


NOTE 10 – COMMON STOCK PURCHASE WARRANTS
Our warrant activity during the years ended December 31, 2019 and 2018 is shown below (in thousands except price data):
In connection with the issuance of the $10.0 million secured promissory notes in December 2013, we issued common stock purchase warrants (“warrants”) exercisable for 60 thousand shares of our common stock having an exercise price of $2.52 per share (after giving effect to our one-for-five reverse stock split) with an expiration date in December 2020. These warrants contain a cashless exercise feature (See Note 7).
As part of our July 2017 private placement transaction with Mr. Schutte, we issued warrants to purchase 1,782,531 shares of our common stock. The warrants are immediately exercisable at a price of $0.528 per share and expire five years after issuance (See Note 8). We have assigned a relative fair value of $495 thousand to the warrants out of the total $4.0 million proceeds from the private placement transaction and have accounted for these warrants as equity.
On June 28, 2019 as part of the changes made to the loan agreements we had with Mr. Schutte, each having an original due date of January 2, 2020, we issued to him a warrant to purchase 10.0 million shares of our common stock exercisable at a price of $0.01 per share and expire five years after issuance. We obtained a valuation of fair value on the warrant and $1.145 million was allocated to the warrant and accounted for as equity. (see Note 7 and Note 8). The warrant was assigned and transferred by Mr. Schutte to AD Pharma on June 28, 2019.

                     |        |          | December 31, |
-------------------- | ------ | -------- | ------------ | --------
                     |        | 2019     |              | 2018
                     |        | WAvg     |              | WAvg
                     |        | Exercise |              | Exercise
                     | Number | Price    | Number       | Price
Outstanding, Jan. 1  | 1,842  | $0.59    | 1,842        | $0.59
Issued               | 10,000 | 0.01     | -            | -
Exercised            | -      | -        | -            | -
Expired              | -      | -        | -            | -
Modification         | -      | -        | -            | -
Outstanding, Dec. 31 | 11,842 | 0.10     | 1,842        | $0.59

NOTE 10 COMMON WARRANTS
 warrant activity December 31, 2019 2018
 $10. million promissory notes December 2013, issued common stock purchase warrants 60 thousand shares common stock exercise price $2. 52 per share expiration date December 2020. warrants cashless exercise feature.
 July 2017 private placement transaction. Schutte issued warrants purchase 1,782,531 shares common stock. warrants exercisable $0. 528 per share expire five years after issuance. assigned fair value $495 thousand warrants $4. million proceeds placement accounted warrants equity.
 June 28, 2019 changes loan agreements. Schutte January 2, 2020 issued warrant purchase 10. million shares common stock $0. 01 per share five years after issuance. obtained valuation fair value $1. 145 million allocated accounted equity. warrant assigned transferred. AD Pharma June 28, 2019.
.
.01
 Exercised
 Expired
 Modification
 Outstanding Dec. 31 | 11,842 |. 10  1,842 . 59


ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
The final fair values of the assets acquired and liabilities assumed from our acquisitions in 2018 are as follows:

                                        | Trek    | Electrostatic Product Line | LumaSense | Total
--------------------------------------- | ------- | -------------------------- | --------- | --------
Accounts and other receivable, net      | $ 2,818 | $  77                      | $  7,167  | $ 10,062
Inventories                             | 3,941   | 292                        | 9,372     | 13,605
Property and equipment                  | 594     | 50                         | 1,353     | 1,997
Goodwill                                | —       | 1,220                      | 36,258    | 37,478
Intangible assets                       | 788     | 1,400                      | 43,240    | 45,428
Deferred income tax assets              | 606     | —                          | 6,331     | 6,937
Other assets                            | 854     | —                          | 6,004     | 6,858
Total assets acquired                   | 9,601   | 3,039                      | 109,725   | 122,365
Accounts payable                        | 747     | 39                         | 5,734     | 6,520
Deferred income tax liabilities         | —       | —                          | 11,699    | 11,699
Other liabilities                       | 2,782   | —                          | 7,608     | 10,390
Total liabilities assumed               | 3,529   | 39                         | 25,041    | 28,609
Total fair value of net assets acquired | $ 6,072 | $  3,000                   | $  84,684 | $ 93,756

ADVANCED ENERGY INDUSTRIES. FINANCIAL STATEMENTS share
 assets liabilities 2018
 Trek Electrostatic Product Line LumaSense
 Accounts receivable $ 2,818 7,167 10,062
 Inventories 3,941 9,372
 Property equipment 594 1,353
 Goodwill 1,220 36,258 37,478
 Intangible assets 788 1,400
 Deferred income tax assets 606
 Other assets 854
 acquired 9,601 109,725,365
 Accounts payable 747 5,734
 Deferred income tax liabilities
 Other liabilities 2,782
 liabilities assumed 3,529 25,041
 assets acquired $ 6,072 $ 3,000 $ 84,684 93,756


1998 Employee Qualified Stock Purchase Plan (“ESPP”)
Under Autodesk’s ESPP, which was approved by stockholders in 1998, eligible employees may purchase shares of Autodesk’s common stock at their discretion using up to 15% of their eligible compensation, subject to certain limitations, at 85% of the lower of Autodesk's closing price (fair market value) on the offering date or the exercise date. The offering period for ESPP awards consists of four, six-month exercise periods within a 24-month offering period.
At January 31, 2019, a total of 8.1 million shares were available for future issuance. Under the ESPP, the Company issues shares on the first trading day following March 31 and September 30 of each fiscal year. The ESPP does not have an expiration date.
A summary of the ESPP activity for the fiscal years ended January 31, 2019, 2018 and 2017 is as follows:
Autodesk recorded $27.2 million, $25.7 million, and $25.9 million of compensation expense associated with the ESPP in fiscal 2019, 2018, and 2017, respectively.

                                                                        |        | Fiscal year ended January 31, |
----------------------------------------------------------------------- | ------ | ----------------------------- | ------
                                                                        | 2019   | 2018                          | 2017
Issued shares                                                           | 1.0    | 2.0                           | 2.3
Average price of issued shares                                          | $90.25 | $39.03                        | $36.99
Weighted average grant date fair value of awards granted under the ESPP | $42.75 | $32.41                        | $19.20

1998 Employee Qualified Stock Purchase Plan
 approved 1998 employees purchase common stock 15% compensation 85% Autodesk closing price. six-month 24-month.
 January 31, 2019 8. 1 million shares available future issuance. Company issues shares first trading day March 31 September 30 each fiscal year. expiration date.
 ESPP activity years January 31, 2019 2018 2017
 Autodesk recorded $27. 2 million $25. 7 million $25. 9 million compensation expense ESPP 2019 2018 2017.
 January
 Issued shares.
 Average price $90. $39. $36.
 average grant date fair value $42. 75 $32. $19.


Deferred income taxes reflect the net tax effects of temporary differences between the amounts of assets and liabilities for accounting purposes and the amounts used for income tax purposes. The components of the net deferred tax assets (liabilities) are as follows (amounts in millions):
As of December 31, 2019, we had gross tax credit carryforwards of $191 million for state purposes. The tax credit carryforwards are included in Deferred tax assets net of unrealized tax benefits that would apply upon the realization of uncertain tax positions. In addition, we had foreign NOL carryforwards of $32 million at December 31, 2019, attributed mainly to losses in France which can be carried forward indefinitely.
We evaluate deferred tax assets each period for recoverability. We record a valuation allowance for assets that do not meet the threshold of “more likely than not” to be realized in the future. To make that determination, we evaluate the likelihood of realization based on the weight of all positive and negative evidence available. As a result of the Closing Agreement, we received in 2018, we determined at that time that our remaining California research and development credit carryforwards (“CA R&D Credit”) no longer met the threshold of more likely than not to be realized in the future. As such, consistent with our position at December 31, 2018, we have established a full valuation allowance against our CA R&D Credit. For the year ended December 31, 2019, the valuation allowance related to our CA R&D Credit is $71 million. We will reassess this determination quarterly and record a tax benefit if and when future evidence allows for a partial or full release of this valuation allowance.
As of December 31, 2017, we no longer consider the available cash balances related to undistributed earnings held outside of the U.S. by our foreign subsidiaries to be indefinitely reinvested.

,                                                | As of December 31, |
------------------------------------------------ | ------------------ | -----
                                                 | 2019               | 2018
Deferred tax assets:                             |                    |
Allowance for sales returns and price protection | $19                | $25
Accrued expenses                                 | 28                 | 26
Deferred revenue                                 | 119                | 136
Tax attributes carryforwards                     | 93                 | 81
Share-based compensation                         | 54                 | 69
Intangibles                                      | 1,289              | 43
U.S. deferred taxes on foreign earnings          | —                  | 318
Capitalized software development expenses        | 67                 | —
Other                                            | 109                | 28
Deferred tax assets                              | 1,778              | 726
Valuation allowance                              | (181)              | (61)
Deferred tax assets, net of valuation allowance  | 1,597              | 665
Deferred tax liabilities:                        |                    |
Intangibles                                      | (142)              | (140)
Capitalized software development expenses        | —                  | (57)
U.S. deferred taxes on foreign earnings          | (594)              | —
Other                                            | (73)               | (26)
Deferred tax liabilities                         | (809)              | (223)
Net deferred tax assets                          | $788               | $442

Deferred income taxes reflect differences between assets liabilities accounting tax. net deferred tax assets
 December 31, 2019 gross tax credit carryforwards $191 million state. included in Deferred tax assets unrealized tax benefits tax. foreign NOL carryforwards $32 million December 31, 2019 losses France carried forward indefinitely.
 evaluate deferred tax assets for recoverability. record valuation allowance for assets. likelihood positive evidence. Closing Agreement 2018 California research development credit carryforwards threshold. established full valuation allowance against CA R&D Credit. year December 31, 2019 valuation allowance $71 million. reassess quarterly record tax benefit if future evidence allows partial release valuation allowance.
 December 31, 2017 no consider cash balances undistributed earnings outside U. S. by foreign subsidiaries indefinitely reinvested.
 December
 Deferred tax assets
 Allowance for sales returns price protection
Accrued expenses 28
 Deferred revenue 119
 Tax 93
 Share compensation
 Intangibles 1,289
. deferred taxes foreign earnings
 software expenses
 Deferred tax assets 1,778 726
 Valuation allowance
 1,597
 liabilities
 Intangibles (142)
 software expenses
. taxes foreign earnings (594)
 tax liabilities (809)
 deferred tax assets $788


Greenhouse gas emissions
Spirent is committed to acting to combat climate change and reporting its progress. Our total Scope 1 and 2 emissions dropped by 6.14 per cent from 2018, and our emissions per $ million of revenue were down by 10.9 per cent. We have reduced our total emissions by 29 per cent since our 2014 baseline.
The Group responded to the Carbon Disclosure Project in 2019, completing the Climate Change and Supply Chain questionnaires. In 2019 we achieved a Climate Change rating of B (management) (2018 C) and a Supplier Engagement rating of B (management) (2018 B). The average for our sector is C in both categories.

                                                                     | 2019           | 2018
-------------------------------------------------------------------- | -------------- | --------------
                                                                     | Tonnes of CO2e | Tonnes of CO2e
Emissions from:                                                      |                |
Combustion of fuel and operation of facilities (Scope 1)             | 144.7          | 137.2
Electricity, heat, steam and cooling purchased for own use (Scope 2) | 4,641.0        | 4,950.4
Total emissions                                                      | 4,785.7        | 5,087.6
Emissions intensity metrics:                                         |                |
Normalised per FTE employee                                          | 3.46           | 3.57
Normalised per square metre of gross internal area of our facilities | 0.114          | 0.125
Normalised per $ million of revenues                                 | 9.50           | 10.67

Greenhouse gas emissions
 Spirent climate change. Scope 1 2 emissions dropped. 14 2018 emissions $ million revenue down. 9 cent. reduced emissions 29 cent since 2014.
 responded Carbon Disclosure Project 2019 Climate Change Supply Chain questionnaires. achieved Climate Change rating B Supplier Engagement B. average sector C categories.
 Emissions
 Combustion fuel operation facilities 1) 144. 137.
 Electricity heat steam cooling 2) 4,641.,950.
 emissions 4,785. 5,087.
 Emissions intensity metrics
 FTE employee 3.
 metre area.
 $ million revenues.


Cash, Cash Equivalents and Restricted Cash
As of December 31, 2019, the Company had $259.1 million of cash and cash equivalents. Cash and cash equivalents include liquid investments, primarily money market funds, with maturities of less than 90 days at the time of purchase. Management determines the appropriate classification of its investments at the time of purchase and at each balance sheet date.
As of December 31, 2019 and December 31, 2018, the Company had restricted cash of $0.3 million, representing the amount pledged as collateral to the issuer of a standby letter of credit (the “LC”). The LC, which expires in August 2021, has been provided as a guaranty to the lessor of our corporate offices.
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the consolidated statement of cash flows (in thousands):

                                                                                | December 31, |
------------------------------------------------------------------------------- | ------------ | --------
                                                                                | 2019         | 2018
Cash and cash equivalents                                                       | $259,067     | $256,947
Restricted cash included in other assets                                        | 304          | 304
Cash, cash equivalents and restricted cash shown in the statement of cash flows | $259,371     | $257,251

Cash Equivalents Restricted Cash
 December 31, 2019 Company had $259. 1 million cash equivalents. investments money market funds maturities less 90 days. Management determines classification balance.
 December 31, 2019 2018 restricted cash $0. 3 million pledged standby letter credit. expires August 2021 guaranty lessor offices.
 reconciliation cash equivalents restricted cash consolidated balance sheet cash flows
 Cash equivalents $259,067 $256,947
 Restricted cash
 Cash equivalents restricted cash flows $259,371 $257,251