RSU Activity We grant RSUs, which represent the right to receive shares of our common stock. Vesting for RSUs is contingent upon the holders’ continued employment with us and may be subject to other conditions (which may include the satisfaction of a performance measure). Also, certain of our performance-based RSUs include a range of shares that may be released at vesting which are above or below the targeted number of RSUs based on actual performance relative to the grant date performance measure. If the vesting conditions are not met, unvested RSUs will be forfeited. Upon vesting of the RSUs, we may withhold shares otherwise deliverable to satisfy tax withholding requirements.
The following table summarizes our RSU activity with performance-based RSUs presented at the maximum potential shares that could be earned and issued at vesting (amounts in thousands except per share amounts):
Certain of our performance-based RSUs did not have an accounting grant date as of December 31, 2019, as there is not a mutual understanding between the Company and the employee of the performance terms. Generally, these performance terms relate to operating income performance for future years where the performance goals have not yet been set. As of December 31, 2019, there were 3.2 million performance-based RSUs outstanding for which the accounting grant date has not been set, of which 1.9 million were 2019 grants. Accordingly, no grant date fair value was established and the weighted average grant date fair value calculated above for 2019 grants excludes these RSUs.
At December 31, 2019, approximately $96 million of total unrecognized compensation cost was related to RSUs and is expected to be recognized over a weighted-average period of 1.64 years. Of the total unrecognized compensation cost, $50 million was related to performance-based RSUs, which is expected to be recognized over a weighted-average period of 1.63 years. The total grant date fair value of vested RSUs was $147 million, $120 million and $64 million for the years ended December 31, 2019, 2018, and 2017, respectively.
The income tax benefit from stock option exercises and RSU vestings was $47 million, $94 million, and $160 million for the years ended December 31, 2019, 2018, and 2017, respectively.

                                   | Number of shares | Weighted-Average Grant Date Fair Value
---------------------------------- | ---------------- | --------------------------------------
Unvested RSUs at December 31, 2018 | 10,623           | $40.39
Granted                            | 4,426            | 45.55
Vested                             | (2,758)          | 47.86
Forfeited                          | (2,963)          | 54.61
Unvested RSUs at December 31, 2019 | 9,328            | $32.60

Activity grant RSUs right receive shares common stock. Vesting contingent employment subject conditions performance measure. performance-based RSUs include shares above or below targeted based performance. conditions unvested RSUs forfeited. withhold shares tax withholding.
 table summarizes RSU activity performance-based maximum potential shares vesting
 performance-based RSUs accounting grant date December 31, 2019 understanding performance terms. income performance future years. December 31, 2019 3. 2 million performance-based RSUs grant date 1. 9 million 2019 grants. no grant date fair value established grant date fair value excludes RSUs.
 December 31, 2019 $96 million unrecognized compensation cost RSUs expected recognized 1. 64 years. $50 million performance-based RSUs. 63 years. total grant date fair value vested RSUs $147 million $120 million $64 million years December 31, 2019 2018 2017.
income tax stock option RSU vestings $47 $94 $160 million 2018 2017.
 Unvested RSUs December 31, 2018 10,623 $40.
 4,426.
 (2,758) 47.
 Forfeited (2,963).
 2019 9,328 $32.


The UK and Ireland business-to-business market remains challenging. The main headwind we face is the decline in traditional calls and lines where we have a relatively high market share. The IP Voice market is significantly more fragmented, with a large number of providers, and we are focused on expanding our share in this growing market.
The mobile market remains competitive and we continue to see pressure on pricing. While overall growth in the broadband market is limited, we are seeing good demand for our premium products such as fibre and 4G Assure. Newer areas such as the Internet of Things, Cloud, SDWAN and security remain good opportunities for us over the longer term.
Adjusted a revenue decreased 5% for the year mainly due to the ongoing decline of fixed voice revenue. We continue to see a steeper than expected reduction in calls per fixed line as usage moves to mobile and IP. We continue to sell less low margin equipment and also experienced ongoing declines in some of our other legacy products such as private circuits. This was partially offset by growth in IP, Mobile and Networking. We’re also continuing to see encouraging growth in messaging volumes in Ventures.
Adjusted a operating costs reduced 6%, helped by labour cost efficiencies from our cost transformation programmes. Adjusteda EBITDA decreased 4%, with our lower cost base more than offset by the reduction in revenue.
Capital expenditure increased 2% and normalised free cash flowb decreased 7%, reflecting the reduction in EBITDA and the higher capital expenditure.
The Retail order intake decreased 15% to £2.9bn for the year due to the signing of a large contract in Republic of Ireland in the prior year. The Wholesale order intake declined 22% to £1.0bn after 2017/18 benefitted from a number of large deals, including the timing of some contract renewals.
a Adjusted measures exclude specific items, as explained in the Additional Information on page 185. b Free cash flow after net interest paid, before pension deficit payments (including the cash tax benefit of pension deficit payments) and specific items. d Enterprise comparatives have been re-presented to reflect the bringing together of our Business and Public Sector and Wholesale and Ventures units into a single Enterprise unit, as well as the transfer of Northern Ireland Networks from Enterprise to Openreach.

Enterprise d                |                |               |                                    |
--------------------------- | -------------- | ------------- | ---------------------------------- | ---
Adjusteda revenue £6,292m   |                |               | Adjusteda operating profit £1,356m |
                            | 2019 (IFRS 15) | 2018 (IAS 18) | Change                             |
Year to 31 March            | £m             | £m            | £m                                 | %
Adjusted a revenue          | 6,292          | 6,647         | (355)                              | (5)
Adjusted a operating costs  | 4,302          | 4,570         | (268)                              | (6)
Adjusted a EBITDA           | 1,990          | 2,077         | (87)                               | (4)
Depreciation & amortisation | 634            | 635           | (1)                                | -
Adjusted a operating profit | 1,356          | 1,442         | (86)                               | (6)
Capital expenditure         | 501            | 492           | 9                                  | 2
Normalised free cash flow b | 1,483          | 1,587         | (104)                              | (7)

UK Ireland business-to-business market challenging. decline traditional calls lines high market share. IP Voice market fragmented large providers focused expanding share.
 mobile market competitive pressure pricing. growth broadband limited good demand premium products fibre 4G. Internet of Things Cloud SDWAN security opportunities.
 revenue decreased 5% decline fixed voice revenue. reduction calls per fixed line mobile IP. less low margin equipment declines products private circuits. offset by growth IP Mobile Networking. growth messaging volumes.
 operating costs reduced 6% labour cost efficiencies. EBITDA decreased 4%.
 Capital expenditure increased 2% free cash decreased 7%.
 Retail order intake decreased 15% to £2. 9bn large contract Republic Ireland. Wholesale order intake declined 22% to £1. 0bn large deals.
 measures exclude items. Free cash flow after interest pension deficit payments.Enterprise comparatives Business Public Sector Wholesale Ventures units single transfer Northern Ireland Networks Enterprise Openreach.
 Adjusteda revenue £6,292m operating profit £1,356m
 2019 (IFRS 15 2018 (IAS 18)
 31 March
 revenue 6,292,647
 operating costs 4,302 4,570
 EBITDA 1,990 2,077
 Depreciation amortisation 634 635
 operating profit 1,356 1,442
 Capital expenditure 501  492
 free cash flow 1,483  1,587


Legislation and regulations regarding our products and ingredients, including the nutritional content of our products, could impact customer preferences and negatively impact our financial results.
Changes in government regulation and consumer eating habits may impact the ingredients and nutritional content of our menu offerings, or require us to disclose the nutritional content of our menu offerings. For example, a number of states, counties, and cities have enacted menu labeling laws requiring multi-unit restaurant operators to disclose certain nutritional information to customers, or have enacted legislation restricting the use of certain types of ingredients in restaurants. Furthermore, the Affordable Care Act requires chain restaurants to publish calorie information on their menus and menu boards. These and other requirements may increase our expenses, slow customers’ ordering process, or negatively influence the demand for our offerings; all of which can impact sales and profitability.
Compliance with current and future laws and regulations in a number of areas, including with respect to ingredients, nutritional content of our products, and packaging and serviceware may be costly and time-consuming. Additionally, if consumer health regulations change significantly, we may be required to modify our menu offerings or packaging, and as a result, may experience higher costs or reduced demand associated with such changes. Some government authorities are increasing regulations regarding trans-fats and sodium. While we have removed all artificial or “added during manufacturing” trans fats from our ingredients, some ingredients have naturally occurring trans-fats. Future requirements limiting trans-fats or sodium content may require us to change our menu offerings or switch to higher cost ingredients. These actions may hinder our ability to operate in some markets or to offer our full menu in these markets, which could have a material adverse effect on our business. If we fail to comply with such laws and regulations, our business could also experience a material adverse effect.
Failure to obtain and maintain required licenses and permits or to comply with food control regulations could lead to the loss of our food service licenses and, thereby, harm our business.
We are required, as a restaurant business, under state and local government regulations to obtain and maintain licenses, permits, and approvals to operate our businesses. Such regulations are subject to change from time to time. Any failure by us or our franchisees to obtain and maintain these licenses, permits, and approvals could adversely affect our financial results.
The following table sets forth information regarding our operating restaurant properties as of September 29, 2019:

                                                                 | Company- |           |
---------------------------------------------------------------- | -------- | --------- | -----
                                                                 | Operated | Franchise | Total
Company-owned restaurant buildings:                              |          |           |
On company-owned land                                            | 9        | 200       | 209
On leased land                                                   | 54       | 581       | 635
Subtotal                                                         | 63       | 781       | 844
Company-leased restaurant buildings on leased land               | 74       | 1,054     | 1,128
Franchise directly-owned or directly-leased restaurant buildings | —        | 271       | 271
Total restaurant buildings                                       | 137      | 2,106     | 2,243

Legislation regulations products ingredients nutritional content impact customer preferences financial results.
 Changes in government regulation consumer eating habits may impact ingredients nutritional content require. states counties cities enacted menu labeling laws nutritional information use ingredients. Affordable Care Act requires restaurants publish calorie information menus. requirements may increase expenses slow ordering process influence demand impact sales profitability.
 Compliance with current future laws regulations ingredients nutritional content packaging serviceware costly time-consuming. if consumer health regulations change modify menu packaging higher costs reduced demand. authorities regulations trans-fats sodium. removed artificial fats some naturally occurring trans-fats. Future requirements limiting trans-fats sodium may require change menu switch to higher cost ingredients. operate markets full menu business. If fail.
 Failure to obtain maintain licenses permits food control regulations loss licenses harm business.
 required under regulations to obtain maintain licenses permits approvals. regulations subject to change.failure licenses permits approvals affect financial results.
 table restaurant properties September 29, 2019
-owned restaurant buildings
 company-owned land 9 200 209
 leased land 54  581 635
 63  781 844
-leased buildings land 74 1,054 1,128
 directly-owned restaurant buildings 271
 Total buildings 137 2,106 2,243


GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
Note 13. Income Taxes
GreenSky, Inc. is taxed as a corporation and pays corporate federal, state and local taxes on income allocated to it from GS Holdings based upon GreenSky, Inc.’s economic interest held in GS Holdings. GS Holdings is treated as a pass-through partnership for income tax reporting purposes and not subject to federal income tax. Accordingly, the Company is not liable for income taxes on the portion of GS Holdings' earnings not allocated to it. The results for the year ended December 31, 2017 do not reflect income tax expense because, prior to the Reorganization Transactions, the consolidated GSLLC (and subsequently GS Holdings) pass-through entity was not subject to corporate tax.
The Company's income before income tax expense of $88,848, $133,514 and $138,668 during the years ended December 31, 2019, 2018 and 2017, respectively, consisted entirely of income earned in the United States.
Components of income tax expense consisted of the following for the years indicated: Year

                                       | Year Ended December 31, |
-------------------------------------- | ----------------------- | ------
                                       | 2019                    | 2018
Current income tax expense (benefit):  |                         |
Federal                                | $5                      | $4
State                                  | 10                      | 5
Deferred income tax expense (benefit): |                         |
Federal                                | 4,206                   | 4,860
State                                  | (11,346)                | 665
Income tax expense (benefit)           | $(7,125)                | $5,534

GreenSky, Inc. FINANCIAL STATEMENTS States Dollars share data
 13. Income Taxes
. taxed corporation pays federal state local taxes income GS Holdings. interest GS Holdings. pass-through partnership not federal income tax. not liable taxes GS Holdings earnings not allocated. results year December 31, 2017 reflect income tax expense Reorganization GSLLC not subject corporate tax.
 income before tax expense $88,848 $133,514 $138,668 years December 31, 2019 2018 2017 earned United States.
 income tax expense
 Current income tax expense
 Federal $4
 State
 Deferred income tax expense
 Federal
 State
 tax expense $,125 $5,534


Indefinite-lived Intangible Assets
Indefinite-lived intangible assets consist entirely of acquired in-process research and development technology, or IPR&D. The following table sets forth the Company’s activities related to the indefinite-lived intangible assets:
The Company performs its annual assessment of indefinite-lived intangible assets on October 31 each year or more frequently if events or changes in circumstances indicate that the asset might be impaired utilizing a qualitative test as a precursor to the quantitative test comparing the fair value of the assets with their carrying amount. Based on the qualitative test, if it is more likely than not that indicators of impairment exists, the Company proceeds to perform a quantitative analysis. Based on the Company’s assessment as of October 31, 2019, no indicators of impairment were identified.
In the years ended December 31, 2019 and 2018, no IPR&D impairment losses were recorded. In the year ended December 31, 2017, the Company recognized impairment losses of $2.0 million related to the Company's abandonment of a single IPR&D project.

Years Ended December 31,                     |         |
-------------------------------------------- | ------- | ------
                                             | 2019    | 2018
(in thousands)                               |         |
Beginning balance                            | $4,400  | $4,400
Transfers to developed technology from IPR&D | (4,400) | —
Ending balance                               | $—      | $4,400

Indefinite-lived Intangible Assets
 acquired-process research technology. table Company’s activities
 Company performs annual assessment October 31 qualitative test fair value carrying amount. indicators impairment quantitative analysis. assessment October 31, 2019 no indicators impairment identified.
 years ended December 31, 2019 2018 no IPR&D impairment losses recorded. December 31, 2017 recognized impairment losses $2. 0 million abandonment IPR&D project.
 Years Ended December 31,
 2019 2018
 thousands
 Beginning balance $4,400
 Transfers to developed technology from IPR&D
 Ending balance


Capital Expenditures
Our 2020 capital program includes capital to fund advanced networks and services, including expanding our core networks, adding capacity and density to our 4G LTE network in order to stay ahead of our customers’ increasing data demands and deploying our 5G network, transforming our structure to deploy the Intelligent Edge Network while reducing the cost to deliver services to our customers, and pursuing other opportunities to drive operating efficiencies. We expect that the new network architecture will simplify operations by eliminating legacy network elements, improve our 4G LTE coverage, speed the deployment of 5G technology, and create new enterprise opportunities in the business market. The level and the timing of the Company’s capital expenditures within these broad categories can vary significantly as a result of a variety of factors outside of our control, such as material weather events, equipment availability from vendors and permits from local governments. Capital expenditures for 2020 are expected to be in the range of $17.0 billion to $18.0 billion, including the continued investment in our 5G network. Capital expenditures were $17.9 billion in 2019 and $16.7 billion in 2018. We believe that we have significant discretion over the amount and timing of our capital expenditures on a Company-wide basis as we are not subject to any agreement that would require significant capital expenditures on a designated schedule or upon the occurrence of designated events.
Consolidated Financial Condition
We use the net cash generated from our operations to fund expansion and modernization of our networks, service and repay external financing, pay dividends, invest in new businesses and spectrum and, when appropriate, buy back shares of our outstanding common stock. Our sources of funds, primarily from operations and, to the extent necessary, from external financing arrangements, are sufficient to meet ongoing operating and investing requirements.
We expect that our capital spending requirements will continue to be financed primarily through internally generated funds. Debt or equity financing may be needed to fund additional investments or development activities or to maintain an appropriate capital structure to ensure our financial flexibility. Our cash and cash equivalents are held both domestically and internationally, and are invested to maintain principal and provide liquidity. See “Market Risk” for additional information regarding our foreign currency risk management strategies.
Our available external financing arrangements include an active commercial paper program, credit available under credit facilities and other bank lines of credit, vendor financing arrangements, issuances of registered debt or equity securities, U.S. retail medium-term notes and other capital market securities that are privately-placed or offered overseas. In addition, we monetize our device payment plan agreement receivables through asset-backed debt transactions.

                                                       |          | (dollars in millions)
------------------------------------------------------ | -------- | ---------------------
Years Ended December 31,                               | 2019     | 2018
Cash flows provided by (used in)                       |          |
Operating activities                                   | $ 35,746 | $ 34,339
Investing activities                                   | (17,581) | (17,934)
Financing activities                                   | (18,164) | (15,377)
Increase in cash, cash equivalents and restricted cash | $1       | $ 1,028

 2020 capital program includes networks services expanding networks adding capacity density 4G LTE network data demands 5G network transforming structure Intelligent Edge Network reducing cost operating efficiencies. new network architecture operations elements 4G LTE coverage speed deployment 5G enterprise opportunities. capital expenditures vary weather events equipment availability permits. Capital expenditures 2020 $17. 0 billion to $18. 0 billion including investment 5G network. Capital expenditures $17. 9 billion 2019 $16. 7 billion 2018. discretion over timing capital expenditures not subject agreement.
 Financial
 net cash fund expansion modernization service repay external financing pay dividends invest new businesses buy back shares common stock. funds operations external financing sufficient operating investing requirements.
 capital spending internally generated funds. Debt equity financing may needed investments capital structure financial flexibility. cash equivalents held domestically internationally invested maintain principal liquidity.foreign currency risk.
 external financing commercial paper program vendor financing registered debt equity securities. retail notes capital market securities overseas. monetize payment receivables asset-backed debt.
 millions
 Ended December
 Cash flows
 Operating $ 35,746 $ 34,339
 Investing (17,581) (17,934)
 Financing (18,164 (15,377
 Increase cash equivalents restricted cash 1,028


Stock Repurchase Program
As of April 26, 2019, our Board of Directors has authorized the repurchase of up to $13.6 billion of our common stock under our stock repurchase program . Under this program, which we may suspend or discontinue at any time, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management.
The following table summarizes activity related to this program (in millions, except per share amounts):
The aggregate purchase price of our stock repurchases for fiscal 2019 consisted of $2.1 billion of open market purchases of which $1.0 billion and $1.1 billion were allocated to additional paid-in capital and retained earnings (accumulated deficit), respectively.
Since the May 13, 2003 inception of our stock repurchase program through April 26, 2019, we repurchased a total of 313 million shares of our common stock at an average price of $37.46 per share, for an aggregate purchase price of $11.7 billion.

                                         |                | Year Ended     |
---------------------------------------- | -------------- | -------------- | --------------
                                         | April 26, 2019 | April 27, 2018 | April 28, 2017
Number of shares repurchased             | 29             | 15             | 22
Average price per share                  | $ 72.87        | $ 51.57        | $ 32.72
Aggregate purchase price                 | $ 2,111        | $ 794          | $ 705
Remaining authorization at end of period | $ 1,889        | $ 4,000        | $ 794

Stock Repurchase Program
 April 26, 2019 Board Directors authorized repurchase $13. 6 billion common stock. open market privately negotiated accelerated repurchase programs Rule 10b5-1 plan.
 table summarizes activity
 2019 $2. 1 billion open market $1. 0 billion $1. 1 billion additional paid-in capital retained earnings.
 Since May 13, 2003 April 26, 2019 repurchased 313 million shares average $37. 46 per share purchase price $11. 7 billion.
 April 26, 2019 27, 2018 28, 2017
 shares repurchased 29
 Average price per share $ 72. $.
 Aggregate purchase price $ 2,111
 Remaining authorization end period $ 1,889


Operating income in the Industrial Solutions segment increased $78 million in fiscal 2019 from fiscal 2018. The Industrial Solutions segment’s operating income included the following:
Excluding these items, operating income increased in fiscal 2019 primarily as a result of higher volume and improved manufacturing productivity.

                                                                                |       | Fiscal
-------------------------------------------------------------------------------------- | ----- | -------------
                                                                                | 2019  | 2018
                                                                                |       | (in millions)
Acquisition-related charges:                                                           |       |
Acquisition and integration costs                                                      | $  10 | $  6
Charges associated with the amortization of acquisition-related fair value adjustments | 3     | 4
                                                                                | 13    | 10
Restructuring and other charges, net                                                   | 63    | 80
Other items                                                                            | 2     | —
Total                                                                                | $  78 | $  90

Operating income Industrial Solutions segment increased $78 million 2019 2018. included
 increased 2019 higher volume improved manufacturing productivity.
 2018
 millions
 Acquisition-related charges
 $ 10 $ 6
 amortization acquisition-related fair value adjustments
 Restructuring other charges 63
 items
 Total $ 78 $ 90


Changes in the amounts of unrecognized tax benefits were as follows:
We had gross unrecognized tax benefits of $20.6 million and $19.8 million as of December 31, 2019 and 2018, respectively. If the current gross unrecognized tax benefits were recognized, the result would be an increase in our income tax benefit of $20.7 million and $19.6 million, respectively. These amounts are net of accrued interest and penalties relating to unrecognized tax benefits of $0.4 million and $0.2 million, respectively.
We believe that it is reasonably possible that $0.2 million of our currently remaining unrecognized tax benefits may be recognized by the end of 2020, as a result of a lapse of the applicable statute of limitations.

                                                          |          | Year Ended December 31, |
--------------------------------------------------------- | -------- | ----------------------- | --------
(In thousands)                                            | 2019     | 2018                    | 2017
Beginning balance as of January 1                         | $ 19,821 | $ 10,939                | $ 10,616
Increases for tax positions related to the current year   | 1,240    | 8,977                   | 640
Decreases for tax positions related to prior years        | 0        | 0                       | (146)
Increases for tax positions related to prior years        | 95       | 367                     | 153
Decreases relating to settlements with taxing authorities | 0        | 0                       | 0
Increases acquired in business acquisitions               | 0        | 540                     | 0
Foreign currency translation                              | 3        | (5)                     | 10
Reductions due to lapsed statute of limitations           | (555)    | (997)                   | (334)
Ending balance as of December 31                          | $ 20,604 | $ 19,821                | $ 10,939

Changes unrecognized tax benefits
 $20. 6 million $19. 8 million December 31, 2019 2018. current recognized income tax benefit $20. 7 million $19. 6 million. net accrued interest penalties $0. 4 million $0. 2 million.
 possible $0. 2 million benefits recognized by end 2020 lapse statute limitations.
 Ended December 31,
 2019 2018 2017
 balance January 1 $ 19,821 $ 10,939
 Increases tax positions current year 1,240 8,977
 Decreases prior years
 settlements taxing authorities
 Increases business acquisitions
 Foreign currency translation
 Reductions due lapsed statute limitations
 Ending balance December 31 $ 20,604 $ 19,821 $ 10,939


(13) (Loss) Earnings Per Common Share
Basic and diluted (loss) earnings per common share for the years ended December 31, 2019, 2018 and 2017 were calculated as follows:
(1) For the year ended December 31, 2019 and December 31, 2018, we excluded from the calculation of diluted loss per share 3.0 million shares and 4.6 million shares, respectively, potentially issuable under incentive compensation plans or convertible securities, as their effect, if included, would have been anti-dilutive.
Our calculation of diluted (loss) earnings per common share excludes shares of common stock that are issuable upon exercise of stock options when the exercise price is greater than the average market price of our common stock. We also exclude unvested restricted stock awards that are antidilutive as a result of unrecognized compensation cost. Such shares were 6.8 million, 2.7 million and 4.7 million for 2019, 2018 and 2017, respectively.

                                                                                |           | Years Ended December, 31                                             |
----------------------------------------------------------------------------------------------- | --------- | -------------------------------------------------------------------- | -------
                                                                                | 2019      | 2018                                                                 | 2017
                                                                                |           | (Dollars in millions, except per share amounts, shares in thousands) |
Loss income (Numerator):                                                                        |           |                                                                      |
Net (loss) income                                                                               | $(5,269)  | (1,733)                                                              | 1,389
Net (loss) income applicable to common stock for computing basic earnings per common share      | (5,269)   | (1,733)                                                              | 1,389
Net (loss) income as adjusted for purposes of computing diluted earnings per common share       | $(5,269)  | (1,733)                                                              | 1,389
Shares (Denominator):                                                                           |           |                                                                      |
Weighted average number of shares:                                                              |           |                                                                      |
Outstanding during period                                                                       | 1,088,730 | 1,078,409                                                            | 635,576
Non-vested restricted stock                                                                     | (17,289)  | (12,543)                                                             | (7,768)
Weighted average shares outstanding for computing basic earnings per common share               | 1,071,441 | 1,065,866                                                            | 627,808
Incremental common shares attributable to dilutive securities:                                  |           |                                                                      |
Shares issuable under convertible securities                                                    | —         | —                                                                    | 10
Shares issuable under incentive compensation plans                                              | —         | —                                                                    | 875
Number of shares as adjusted for purposes of computing diluted (loss) earnings per common share | 1,071,441 | 1,065,866                                                            | 628,693
Basic (loss) earnings per common share                                                          | $(4.92)   | (1.63)                                                               | 2.21
Diluted (loss) earnings per common share(1)                                                     | $(4.92)   | (1.63)                                                               | 2.21

(Loss Earnings Per Common Share
 Basic diluted earnings years December 31, 2019 2018 2017 calculated
 2019 2018 excluded 3. million 4. 6 million shares potentially issuable incentive compensation plans convertible securities.
 excludes issuable stock options price greater than average market price. unvested restricted stock awards antidilutive unrecognized compensation cost. shares were 6. 8 million 2. 7 million 4. 7 million 2019 2018 2017.
 Years Ended December 31
 2019 2018 2017
 in millions thousands
 Loss income
 Net (loss income (1,733) 1
 earnings
 adjusted diluted earnings
 Shares
 Weighted average number
 1,088,730 1,078,409 635,576
 Non-vested restricted stock (17,289) (12,543 (7,768)
shares earnings share 1,071,441 1,065,866 627,808
 Incremental shares dilutive securities
 convertible securities
 incentive compensation plans 875
 shares adjusted diluted (loss earnings share 1,071,441 1,065,866 628,693
 Basic (loss earnings common share.
 Diluted (loss earnings.


3. EARNINGS PER SHARE:
Basic earnings per share available to common shareholders is calculated by dividing net income less preferred stock dividend requirements by the weighted average common shares outstanding for each period. Diluted earnings per share available to common shareholders is calculated by dividing income from operations less preferred stock dividend requirements (when anti-dilutive) by the sum of the weighted average common shares outstanding and the weighted average dilutive equity awards.

                                                        | For Fiscal Years |
------------------------------------------------------- | ---------------- | ----------
                                                        | 2019 Basic       | 2018 Basic
Weighted average common shares outstanding              | 597,961          | 660,925
Net income available to common shareholders             | $3,202,943       | $3,614,610
Net earnings per share available to common shareholders | $5.36            | $5.47

. EARNINGS PER SHARE
 earnings calculated dividing net income less stock dividend requirements average shares. Diluted earnings calculated income operations less dividend requirements average shares dilutive equity awards.
 Fiscal Years
 2018
 shares 597,961,925
 Net income $3,202,943 $3,614,610
 Net earnings per share $5.


Note 6 Interest expense
Included in interest expense on long-term debt is interest on lease liabilities of $220 million for 2019 and interest on finance leases of $142 million for 2018.
Capitalized interest was calculated using an average rate of 3.96% and 3.88% for 2019 and 2018, respectively, which represents the weighted average interest rate on our outstanding long-term debt.

FOR THE YEAR ENDED DECEMBER 31     | 2019    | 2018
---------------------------------- | ------- | -------
Interest expense on long-term debt | (1,024) | (918)
Interest expense on other debt     | (153)   | (133)
Capitalized interest               | 45      | 51
Total interest expense             | (1,132) | (1,000)

 lease liabilities $220 million 2019 finance leases $142 million 2018.
 3. 96%. 88% 2019 2018 weighted average interest long-term debt.
 YEAR ENDED DECEMBER 31
 expense long-term debt (1,024)
 other debt (153)
 Capitalized interest
 Total expense (1,132)


Pre-tax income from international operations was $214 million, $890 million, and $353 million for fiscal 2019, 2018, and 2017, respectively.
The components of income tax expense (benefit) recorded in continuing operations are as follows:
As of December 28, 2018, we have completed our accounting for the effects of the enactment of the Tax Cuts and Jobs Act (H.R.1) (the 2017 Tax Act) in accordance with U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 118, and the amounts are no longer considered provisional. We will continue to evaluate any new guidance from the U.S. Department of Treasury and the Internal Revenue Service (IRS) as issued.

                             |                | Year Ended     |
---------------------------- | -------------- | -------------- | --------------
(In millions)                | March 29, 2019 | March 30, 2018 | March 31, 2017
Current:                     |                |                |
Federal                      | $73            | $1,011         | $108
State                        | 15             | 40             | 6
International                | 74             | 107            | 68
Total                        | 162            | 1,158          | 182
Deferred:                    |                |                |
Federal                      | (52)           | (1,664)        | (177)
State                        | (2)            | (151)          | (17)
International                | (16)           | (33)           | (14)
Total                        | (70)           | (1,848)        | (208)
Income tax expense (benefit) | $92            | $(690)         | $(26)

Pre-tax income international operations $214 million $890 million $353 million 2019 2018 2017.
 income tax expense
 December 28, 2018 completed accounting Tax Cuts Jobs Act. Securities Exchange Commission Staff Accounting Bulletin. 118 amounts provisional. evaluate new guidance. Department of Treasury Internal Revenue Service.
 Ended
 millions March 29, 2019 March 30, 2018 31, 2017
 Current
 Federal $73 $1,011 $108
 State
 International
 1,158
 Deferred
 Federal (1,664) (177)
 State
 International
 (1,848)
 Income tax expense (benefit) $92 $(690) $


Unrecognized Tax Benefits
We are providing the following disclosures related to our unrecognized tax benefits and the effect on our effective income tax rate if recognized:
In 2019, our unrecognized tax benefit increased by $33.9 million, primarily related to increases in North America. In 2018, we increased our unrecognized tax benefit by $142.1 million, also primarily related to North America.
If the unrecognized tax benefits at December 31, 2019 were recognized, our income tax provision would decrease by $343.5 million, resulting in a substantially lower effective tax rate. Based on the potential outcome of the Company’s global tax examinations and the expiration of the statute of limitations for specific jurisdictions, it is possible that the unrecognized tax benefits could change significantly within the next 12 months. Absent resolution of significant tax controversy, the associated impact on the reserve balance is estimated to be a decrease in the range of $4.6 to $6.6 million during 2020.
We recognize interest and penalties associated with unrecognized tax benefits in our income tax provision in the Consolidated Statements of Operations. Interest and penalties recorded were $13.1 million, negligible and $4.0 million, respectively in 2019, 2018 and 2017. We had gross liabilities, for interest and penalties, of $56.2 million at December 31, 2019, $18.2 million at December 31, 2018 and $14.8 million at December 31, 2017. The increase in the gross liability related to interest and penalties from 2018 to 2019 was primarily due to a reclass within other non-current liabilities from unrecognized tax benefits to interest and penalties which had no impact on the overall Consolidated Balance Sheets or Consolidated Statement of Operations.
The majority of the unrecognized tax benefit amount of $390.3 million relates to North America.

                                                                |         | Year Ended December 31, |
--------------------------------------------------------------- | ------- | ----------------------- | -------
(in millions)                                                   | 2019    | 2018                    | 2017
Beginning balance of unrecognized tax benefits                  | $ 356.4 | $ 214.3                 | $ 162.6
Additions for tax positions of current year                     | 3.4     | 106.0                   | 7.3
Additions for tax positions of prior years                      | 47.9    | 59.5                    | 49.3
Reductions for tax positions of prior years                     | (16.0)  | (7.0)                   | (4.3)
Reductions for lapses of statutes of limitation and settlements | (1.4)   | (16.4)                  | (0.6)
Ending balance of unrecognized tax benefits                     | $ 390.3 | $ 356.4                 | $ 214.3

Unrecognized Tax Benefits
 disclosures effect income tax rate
 2019 benefit increased $33. 9 million North America. 2018 increased $142. 1 million America.
 benefits December 31, 2019 recognized income tax provision $343. 5 million lower effective tax rate. global tax examinations expiration statute limitations tax benefits change 12 months. impact reserve balance $4. 6 to $6. 6 million 2020.
 interest penalties unrecognized tax benefits Consolidated Statements Operations. $13. 1 million $4. 0 million 2019 2018 2017. gross liabilities $56. 2 million December 31, 2019 $18. 2 million 2018 $14. 8 million 31, 2017. increase liability 2018 2019 due reclass benefits penalties no impact Consolidated Balance Sheets Statement Operations.
 majority unrecognized tax benefit $390. 3 million North America.
 balance unrecognized tax benefits $ 356.
tax positions current 3. 106. 7.
 prior years 47. 59. 49.
 Reductions prior years (16. (7. (4.
 Reductions statutes limitation settlements (1. (16.
 unrecognized tax benefits 390. 214.


Note 16. Accrued Employee Compensation and Benefits
Accrued employee compensation and benefits consisted of the following (in thousands):

                                             | December 31, |
-------------------------------------------- | ------------ | -------
                                             | 2019         | 2018
Accrued compensation                         | $38,186      | $34,095
Accrued bonus and commissions                | 27,039       | 19,835
Accrued vacation                             | 20,647       | 19,019
Accrued employment taxes                     | 16,468       | 15,598
Accrued severance and related costs (Note 5) | 485          | 793
Other                                        | 6,766        | 6,473
                                             | $109,591     | $95,813

. Employee Compensation Benefits
 December
 compensation $38,186 $34,095
 bonus commissions 27,039 19,835
 vacation 20,647 19,019
 taxes 16,468 15,598
 severance costs 793
 6,766 6,473
 $109,591 $95,813


Note 15 Leases
RIGHT-OF-USE ASSETS
BCE’s significant right-of-use assets under leases are satellites, office premises, land, cellular tower sites, retail outlets and OOH advertising spaces. Right-of-use assets are presented in Property, plant and equipment in the statement of financial position.

FOR THE YEAR ENDED DECEMBER 31, 2019     | NETWORK INFRASTRUCTURE AND EQUIPMENT | LAND AND BUILDINGS | TOTAL
---------------------------------------- | ------------------------------------ | ------------------ | -----
COST                                     |                                      |                    |
January 1, 2019                          | 3,329                                | 2,453              | 5,782
Additions                                | 527                                  | 513                | 1,040
Transfers                                | (233)                                | –                  | (233)
Acquired through business combinations   | –                                    | 8                  | 8
Lease terminations                       | (12)                                 | (38)               | (50)
Impairment losses recognized in earnings | (2)                                  | (3)                | (5)
December 31, 2019                        | 3,609                                | 2,933              | 6,542
ACCUMULATED DEPRECIATION                 |                                      |                    |
January 1, 2019                          | 1,042                                | 536                | 1,578
Depreciation                             | 373                                  | 303                | 676
Transfers                                | (111)                                | –                  | (111)
Lease terminations                       | (3)                                  | (22)               | (25)
December 31, 2019                        | 1,301                                | 817                | 2,118
NET CARRYING AMOUNT                      |                                      |                    |
January 1, 2019                          | 2,287                                | 1,917              | 4,204
December 31, 2019                        | 2,308                                | 2,116              | 4,424

 satellites office premises land cellular tower sites retail outlets advertising spaces. Property plant equipment financial position.
 YEAR DECEMBER 31, 2019 INFRASTRUCTURE EQUIPMENT LAND BUILDINGS
 January 1 2019 3,329 2,453
 Additions 527 1,040
 Transfers
 Acquired combinations
 Lease terminations
 losses earnings
 December 31, 3,609 2,933 6,542
 ACCUMULATED DEPRECIATION
 January 1 1,042 536 1,578
 676
 Transfers
 Lease terminations
 31, 1,301 2,118
 CARRYING AMOUNT
 January 1 2,287 1,917 4,204
 31, 2,308 2,116


Non‐executive Director fees are paid from an aggregate annual fee pool of $4,000,000, as approved by shareholders at the AGM on 18 November 2010. Total board and committee fees paid during F19 were $2,859,903 (refer to section 5.1).
Non‐executive Directors do not receive variable pay and no Directors’ fees are paid to Executive Directors.
In recognition of the equal importance and workload of all of the Board’s Committees, the Board reviewed Non‐executive Director fees and determined to increase Chair and Member fees for the People Performance Committee and Sustainability Committee as detailed in the table below, effective 1 July 2019. The table below provides a summary of F19 and F20 Board and Committee fees:

                                                | CHAIR       |             | MEMBER      |
----------------------------------------------- | ----------- | ----------- | ----------- | -----------
                                                | F19 FEE     | F20 FEE     | F19 FEE     | F20 FEE
BOARD AND COMMITTEE FEES ($)                    | INCL. SUPER | INCL. SUPER | INCL. SUPER | INCL. SUPER
Board                                           | $790,531    | $790,531    | $254,990    | $254,990
Audit, Risk Management and Compliance Committee | $65,000     | $65,000     | $32,500     | $32,500
People Performance Committee                    | $54,525     | $65,000     | $27,265     | $32,500
Sustainability Committee                        | $45,000     | $65,000     | $22,500     | $32,500
Nomination Committee                            | Nil         | Nil         | Nil         | Nil

Non‐executive Director fees paid annual fee pool $4,000,000 approved AGM 18 November 2010. board committee fees F19 $2,859,903 section.
 Non‐executive Directors variable pay no Directors’ fees paid.
 reviewed Director fees Chair Member fees People Performance Committee Sustainability Committee effective 1 July 2019. F19 F20 Board Committee fees
 BOARD COMMITTEE FEES ($.
 Board $790,531 $254,990
 Audit Risk Management Compliance Committee $65,000 $32,500
 People Performance Committee $54,525 $65,000
 Sustainability Committee $45,000 $65,000 $22
 Nomination Committee


8. Stock option and award plan: (Continued)
A summary of the Company’s non-vested restricted stock awards as of December 31, 2019 and the changes during the year ended December 31, 2019 are as follows:
The weighted average per share grant date fair value of restricted stock granted was $53.53 in 2019 (0.5 million shares) $44.02 in 2018 (0.5 million shares) and $40.52 in 2017 (0.5 million shares). The fair value was determined using the quoted market price of the Company’s common stock on the date of grant. Valuations were obtained to determine the fair value for the shares granted to the Company’s CEO that are subject to the total shareholder return of the Company’s common stock compared to the total shareholder return of the Nasdaq Telecommunications Index. The fair value of shares of restricted stock vested in 2019, 2018 and 2017 was $20.8 million, $19.1 million and $12.6 million, respectively.
Equity-based compensation expense related to stock options and restricted stock was $18.5 million, $17.7 million, and $13.3 million for 2019, 2018, and 2017, respectively. The income tax benefit related to stock options and restricted stock was $3.0 million, $1.8 million, and $2.5 million for 2019, 2018, and 2017, respectively. The Company capitalized compensation expense related to stock options and restricted stock for 2019, 2018, and 2017 of $1.8 million, $1.7 million and $1.2 million, respectively. As of December 31, 2019, there was $31.7 million of total unrecognized compensation cost related to non-vested equity-based compensation awards. That cost is expected to be recognized over a weighted average period of 1.9 years.

Non-vested awards               | Shares    | Weighted-Average Grant Date Fair Value
------------------------------- | --------- | --------------------------------------
Non-vested at December 31, 2018 | 1,187,586 | $41.12
Granted                         | 473,550   | $53.53
Vested                          | (365,223) | $41.83
Forfeited                       | (12,632)  | $50.49
Non-vested at December 31, 2019 | 1,283,281 | $45.40

. Stock option award plan
 non-vested stock awards December 31, 2019 changes
 average per share grant value stock $53. 2019. $44. 2018. $40. 2017. value determined quoted market price common stock. Valuations return Nasdaq Telecommunications Index. fair value stock 2019 2018 2017 $20. 8 million $19. 1 million $12. 6 million.
 Equity-based compensation expense $18. 5 million $17. 7 million $13. 3 million 2019 2017. income tax benefit $3. million $1. million $2. 5 million. capitalized compensation expense $1. million $1. 7 million $1. 2 million. December 31, 2019 $31. 7 million unrecognized compensation cost non-vested equity-based compensation awards. recognized 1. 9 years.
 awards-Average Grant Fair Value
 December 31, 2018 1,187,586 $41.
 $53.
.
.
 Non-vested December 2019 1,283,281.


20. DIVIDENDS
A regular dividend of 3 cents per share has been declared. This final dividend of 3 cents per share, partially franked to 2.6 cents per share, was announced to the market on 23 August 2019. The amount declared has not been recognised as a liability in the accounts of Hansen Technologies Ltd as at 30 June 2019.
1. The final dividend paid of 4 cents per share, franked to 4 cents, comprised of an ordinary dividend of 3 cents per share, together with a special dividend of 1 cent per share.
The above available amounts are based on the balance of the dividend franking account at year end adjusted for: • franking credits that will arise from the payment of any current tax liability; • franking debits that will arise from the payment of any dividends recognised as a liability at year end; • franking credits that will arise from the receipt of any dividends recognised as receivables at year end; and • franking credits that the entity may be prevented from distributing in subsequent years.

                                                                                | 2019   | 2018
---------------------------------------------------------------------------------------------------------------------------------- | ------ | ------
                                                                                | $’000  | $’000
Dividends paid during the year (net of dividend re-investment)                                                                     |        |
4 cent per share final dividend paid 27 September 2018 – fully franked1                                                            | 7,319  |
3 cent per share final dividend paid 30 September 2017 – fully franked                                                             |        | 5,175
3 cent per share interim dividend paid 29 March 2019 – fully franked                                                               | 5,318  |
3 cent per share interim dividend paid 29 March 2018 – fully franked                                                               |        | 5,217
                                                                                | 12,637 | 10,392
Proposed dividend not recognised at the end of the year                                                                            | 5,922  | 7,865
Dividends franking account                                                                                |        |
30% franking credits, on a tax paid basis, are available to shareholders of Hansen Technologies Ltd for subsequent financial years | 1,586  | 3,125

. DIVIDENDS
 regular dividend 3 cents per share declared. final dividend 3 partially franked 2. 6 cents announced 23 August 2019. not recognised liability Hansen Technologies Ltd 30 June 2019.
. final dividend 4 cents per share franked 4 ordinary 3 special dividend 1 cent share.
 amounts based balance dividend franking account year end adjusted franking credits current tax liability debits dividends credits receipt dividends credits subsequent years.
 Dividends paid re-investment
 4 cent per share final dividend 27 September 2018
 3 cent per share final dividend 30 September 2017 franked
 3 cent interim dividend 29 March 2019 franked
 29 March 2018 franked
 dividend not recognised end year
 Dividends
 30% franking credits available shareholders Hansen Technologies Ltd subsequent financial years


Financial risk management
The Group’s treasury function centrally manages the Group’s funding requirement, net foreign exchange exposure, interest rate management exposures and counterparty risk arising from investments and derivatives.
Treasury operations are conducted within a framework of policies and guidelines authorised and reviewed by the Board, most recently in July 2018
A treasury risk committee comprising of the Group’s Chief Financial Officer, Group General Counsel and Company Secretary, Group Financial Controller, Group Treasury Director and Group Director of Financial Controlling and Operations meets three times a year to review treasury activities and its members receive management information relating to treasury activities on a quarterly basis. The Group’s accounting function, which does not report to the Group Treasury Director, provides regular update reports of treasury activity to the Board. The Group’s internal auditor reviews the internal control environment regularly.
The Group uses a number of derivative instruments for currency and interest rate risk management purposes only that are transacted by specialist treasury personnel. The Group mitigates banking sector credit risk by the use of collateral support agreements.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial asset leading to a financial loss for the Group. The Group is exposed to credit risk from its operating activities and from its financing activities, the Group considers its maximum exposure to credit risk at 31 March to be:
Expected credit loss
The Group has financial assets classified and measured at amortised cost and fair value through other comprehensive income that are subject to the expected credit loss model requirements of IFRS 9. Cash at bank and in hand and certain other investments are both classified and measured at amortised cost and subject to these impairment requirements. However, the identified expected credit loss is considered to be immaterial.
Information about expected credit losses for trade receivables and contract assets can be found under “operating activities” on page 164.

                                        | 2019 €m | 2018 €m
--------------------------------------- | ------- | -------
Cash at bank and in hand                | 2,434   | 2,197
Repurchase agreements and bank deposits | 2,196   | –
Money market funds                      | 9,007   | 2,477
Managed investment funds                | 6,405   | 3,891
Government securities                   | 3,011   | 1,974
Other investments                       | 4,418   | 6,087
Derivative financial instruments        | 3,634   | 2,629
Trade receivables                       | 5,077   | 5,402
Contract assets and other receivables   | 5,155   | 3,410
                                        | 41,337  | 28,067

Financial risk management
 treasury function manages funding foreign exchange interest rate counterparty risk from investments derivatives.
 operations policies guidelines reviewed by Board July 2018
 treasury risk committee Chief Financial Officer Counsel Financial Controller Treasury Director Controlling meets three times information quarterly. accounting provides reports. internal auditor reviews control.
 uses derivative instruments for currency interest rate risk management transacted by specialist treasury personnel. mitigates banking sector credit risk collateral support agreements.
 Credit risk
 counterparty obligations loss. exposed to risk from operating financing activities maximum exposure risk at 31 March
 Expected credit loss
 financial assets amortised cost fair value subject to credit loss IFRS 9. Cash bank hand investments. expected credit loss immaterial.
 Information assets “operating activities” on page 164.
 Cash at bank in hand 2,434 2,197
 Repurchase agreements bank deposits
9,007 2,477
 3,891
 Government securities 3,011 1,974
 investments 6,087
 instruments 3,634 2,629
 receivables 5,077,402
,155
,337


The reconciliation from non-current segment assets to non-current group assets is shown in the following table: non-current assets according to segment reporting only include the values of continuing operations in the previous year. Therefore, the non-current assets of METRO China must be taken into account in the previous year and are therefore part of the reconciliation:
1 Adjustment of previous year according to explanation in notes.

€ million                                         | 30/9/2018 | 30/9/2019
------------------------------------------------- | --------- | ---------
Non-current segment assets                        | 6,348     | 6,268
plus non-current segment assets METRO China       | 560       | 0
Financial assets                                  | 88        | 97
Investments accounted for using the equity method | 178       | 179
Deferred tax assets                               | 329       | 191
Other                                             | 1         | 1
Non-current group assets                          | 7,503     | 6,736

reconciliation non-current group assets include values operations previous year. assets METRO China part reconciliation
 Adjustment previous year.
 € million 30/9/2018 30/9/2019
 Non-current assets 6,348 6,268
 METRO China 560
 Financial assets 88
 Investments equity 178
 Deferred tax assets 329 191
 Non-current group assets 7,503 6,736


3.5 INCOME TAXES
(1) Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections.
Fiscal 2019 income taxes expense amounted to $83.7 million compared to a recovery of $17.2 million for the prior year mainly attributable to: • the effect of the federal rate reduction in the second quarter of fiscal 2018 in the United States; • the increase in profit before income taxes which is mostly related to the impact of the MetroCast acquisition completed in the second quarter of fiscal 2018, and • the appreciation of the US dollar against the Canadian dollar compared to the prior year.
On March 19, 2019, the Department of Finance Canada confirmed the acceleration of tax depreciation on most capital investments for property, plant and equipment acquired after November 20, 2018, which phases out during the period from 2023 to 2028. The federal accelerated tax depreciation had a favorable impact on the current income tax expense of the Corporation in fiscal 2019. On March 21, 2019, the Québec Department of Finance confirmed that it would harmonize with the Federal legislation.
On December 22, 2017, the U.S. federal government enacted the Tax Cuts and Jobs Act (the "Act"). The tax reform reduced the general federal corporate tax rate from 35% to 21% starting after 2017 which reduced net deferred tax liabilities by approximately $94 million (US$74 million) in the second quarter of fiscal 2018. In addition, the Act calls for other changes such as interest deductibility limitations, full deduction of acquisitions of tangible assets, net operating losses limitations as well as base erosion anti-avoidance, which together with tax rate reductions, had an overall favorable impact on the income tax expense.

Years ended August 31,                                                             | 2019     | 2018 (1) | Change
---------------------------------------------------------------------------------- | -------- | -------- | ------
(in thousands of dollars, except percentages)                                      | $        | $        | %
Profit before income taxes                                                         | 440,563  | 367,380  | 19.9
Combined Canadian income tax rate                                                  | 26.50%   | 26.50%   | —
Income taxes at combined Canadian income tax rate                                  | 116,749  | 97,356   | 19.9
Difference in operations' statutory income tax rates                               | 1,466    | (3)      | —
Impact on deferred taxes as a result of changes in substantively enacted tax rates | 15       | (94,175) | —
Impact on income taxes arising from non-deductible expenses and non-taxable profit | (565)    | 1,670    | —
Tax impacts related to foreign operations                                          | (28,633) | (22,099) | 29.6
Other                                                                              | (5,377)  | 53       | —
                                                                                | 83,655   | (17,198) | —

. INCOME TAXES
 Fiscal 2018 IFRS 15 accounting policy Cogeco Peer 1 discontinued operations. consult "Accounting policies "Discontinued operations sections.
 Fiscal 2019 income taxes expense $83. 7 million $17. 2 million federal rate reduction increase profit before income taxes MetroCast acquisition appreciation US dollar Canadian dollar.
 March 19, 2019 Department Finance tax depreciation capital investments after November 20, 2018 2023 to 2028. income tax expense 2019. March 21, 2019 Québec Department Finance Federal legislation.
 December 22, 2017. enacted Tax Cuts and Jobs Act. reduced corporate tax rate 35% to 21% reduced deferred tax liabilities $94 million (US$74 million) second quarter 2018. interest deductibility full deduction acquisitions net operating losses limitations base erosion anti-avoidance income tax expense.
 Years ended August 31, 2019 2018
 Profit before income taxes 440,563 367,380.
Canadian income tax 26.
 116,749 97,356.
 Difference tax rates 1,466
 Impact deferred taxes tax rates 15 (94,175)
 non expenses non-taxable profit (565) 1,670
 Tax impacts foreign operations (28,633) (22,099).
 (5,377)
 83,655 (17,198)


Contractual Obligations As of December 31, 2019, our contractual obligations were as follows:
(1) Interest on long-term debt includes amounts due on fixed and variable rate debt. As the rates on our variable debt are subject to change, the rates in effect at December 31, 2019 were used in determining our future interest obligations. Expected settlements of interest rate swap agreements were estimated using yield curves in effect at December 31, 2019.
(2) Unrecorded purchase obligations include binding commitments for future capital expenditures and service and maintenance agreements to support various computer hardware and software applications and certain equipment. If we terminate any of the contracts prior to their expiration date, we would be liable for minimum commitment payments as defined by the contractual terms of the contracts.
(3) Recorded obligations include amounts in accounts payable and accrued expenses for external goods and services received as of December 31, 2019 and expected to be settled in cash.
(4) Expected contributions to our pension and post-retirement benefit plans for the next 5 years. Actual contributions could differ from these estimates and extend beyond 5 years.
Defined Benefit Pension Plans As required, we contribute to qualified defined pension plans and non-qualified supplemental retirement plans (collectively the “Pension Plans”) and other post-retirement benefit plans, which provide retirement benefits to certain eligible employees. Contributions are intended to provide for benefits attributed to service to date. Our funding policy is to contribute annually an actuarially determined amount consistent with applicable federal income tax regulations.
The cost to maintain our Pension Plans and future funding requirements are affected by several factors including the expected return on investment of the assets held by the Pension Plans, changes in the discount rate used to calculate pension expense and the amortization of unrecognized gains and losses. Returns generated on the Pension Plans assets have historically funded a significant portion of the benefits paid under the Pension Plans. We used a weighted-average expected long-term rate of return of 6.97% and 7.03% in 2019 and 2018, respectively. As of January 1, 2020, we estimate the longterm rate of return of Plan assets will be 6.25%. The Pension Plans invest in marketable equity securities which are exposed to changes in the financial markets. If the financial markets experience a downturn and returns fall below our estimate, we could be required to make material contributions to the Pension Plans, which could adversely affect our cash flows from operations.
Net pension and post-retirement costs were $11.5 million, $5.6 million and $3.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. We contributed $27.5 million, $26.2 million and $12.5 million in 2019, 2018 and 2017, respectively to our Pension Plans. For our other post-retirement plans, we contributed $8.5 million, $9.7 million and $6.5 million in 2019, 2018 and 2017, respectively. In 2020, we expect to make contributions totaling approximately $25.0 million to our Pension Plans and $8.9 million to our other post-retirement benefit plans. Our contribution amounts meet the minimum funding requirements as set forth in employee benefit and tax laws. See Note 11 to the consolidated financial statements for a more detailed discussion regarding our pension and other post-retirement plans.

(In thousands)                             | Less than 1 Year | 1 -3 Years | 3 -5 Years  | Thereafter | Total
------------------------------------------ | ---------------- | ---------- | ----------- | ---------- | -----------
Long-term debt                             | $ 18,350         | $ 521,700  | $ 1,729,663 | $ —        | $ 2,269,713
Interest on long-term debt obligations (1) | 128,731          | 246,834    | 65,552      | —          | 441,117
Finance leases                             | 10,280           | 8,285      | 3,404       | 6,604      | 28,573
Operating leases                           | 7,860            | 10,751     | 5,660       | 10,691     | 34,962
Unconditional purchase obligations:        |                  |            |             |            |
Unrecorded (2)                             | 36,488           | 37,830     | 19,954      | 1,371      | 95,643
Recorded (3)                               | 98,035           | —          | —           | —          | 98,035
Pension funding (4)                        | 33,861           | 64,311     | 65,959      | —          | 164,131

Contractual Obligations December 31, 2019 obligations
 Interest long-term debt fixed variable rate debt. rates change future interest obligations. settlements interest rate swap agreements estimated using yield curves.
 Unrecorded purchase obligations include future capital expenditures service maintenance agreements computer hardware software equipment. contracts liable minimum commitment payments.
 Recorded obligations include accounts payable accrued expenses goods services settled cash.
 contributions pension post-retirement benefit plans next 5 years. contributions differ beyond.
 Defined Benefit Pension Plans contribute pension non supplemental retirement plans post benefit plans benefits. Contributions. annually actuarially determined amount federal income tax regulations.
 cost Pension Plans future funding return investment discount rate pension expense amortization unrecognized gains losses. Returns assets funded benefits. long-term rate return 6. 97% 7. 03% 2019 2018. January 1, 2020 longterm rate return 6. 25%.Pension Plans invest equity securities markets. returns cash.
 pension post-retirement costs $11. 5 million $5. 6 million $3. 8 million 2018 2017. contributed $27. 5 million $26. 2 million $12. 5 million Pension Plans. other post-retirement plans $8. 5 million $9. 7 million $6. 5 million. 2020 expect $25. 0 million Pension Plans $8. 9 million other post-retirement plans. meet minimum funding requirements employee benefit tax laws. Note 11.
 1 -3 3 -5 Years
 Long-term debt $ 18,350 521,700 1,729,663 2,269,713
 Interest long-term debt obligations 128,731 246,834 65,552,117
 Finance leases 10,280 8,285
 Operating leases 7,860 34,962
 Unconditional purchase obligations
Unrecorded 36,488 37,830 19,954 1,371 95,643
 Recorded 98,035
 33,861 64,311 65,959


9. Available-for-Sale Debt Investments and Equity Investments
The following table summarizes our available-for-sale debt investments and equity investments (in millions):
(1) We held equity interests in certain private equity funds of $0.6 billion as of July 27, 2019 which are accounted for under the NAV practical expedient following the adoption of ASU 2016-01, Financial Instruments, starting in the first quarter of fiscal 2019.

                                                              | July 27, 2019 | July 28, 2018
------------------------------------------------------------- | ------------- | -------------
Available-for-sale debt investments                           | $21,660       | $37,009
Marketable equity securities                                  | 3             | 605
Total investments                                             | 21,663        | 37,614
Non-marketable equity securities included in other assets (1) | 1,113         | 978
Equity method investments included in other assets            | 87            | 118
Total                                                         | $22,863       | $38,710

. Debt Equity
 table summarizes
 equity interests private equity funds $0. 6 billion July 27, 2019 accounted NAV ASU 2016-01 quarter 2019.
 July 27, 28, 2018
-sale debt investments $21,660 $37,009
 Marketable equity securities
 21,663 37,614
 Non-marketable equity securities
 Equity investments
 $22,863 $38,710


Restricted Stock Units
At September 2019, the Compensation Committee of the Board of Directors had authorized and approved the following restricted stock unit awards to members of the Company’s management team pursuant to the provisions of the Company’s Omnibus Plans: At September 2019, the Compensation Committee of the Board of Directors had authorized and approved the following restricted stock unit awards to members of the Company’s management team pursuant to the provisions of the Company’s Omnibus Plans:
(1) 13,150 of the restricted stock units were vested as of September 2019. The remaining 100 restricted stock units
will vest in equal amounts in October 2019 and October 2020.
(2) 8,666 of the restricted stock units were vested as of September 2019. The remaining 4,334 restricted stock units
will vest in October 2019.
(3) 4,333 of the restricted stock units were vested as of September 2019. 4,333 restricted stock units will vest in
October 2019 and 4,334 will vest in October 2020.
(4) The 15,050 restricted stock units will vest in equal amounts in October 2019, October 2020, and October 2021.
There is no direct cost to the recipients of the restricted stock units, except for any applicable taxes. The recipients of the restricted stock units are entitled to the customary adjustments in the event of stock splits, stock dividends, and certain other distributions on the Company’s common stock. All cash dividends and/or distributions payable to restricted stock recipients will be held in escrow until all the conditions of vesting have been met.
The restricted stock units provide that the recipients can elect, at their option, to receive either common stock in the
Company, or a cash settlement based upon the closing price of the Company’s shares, at the time of vesting. Based on
these award provisions, the compensation expense recorded in the Company’s Statement of Operations reflects the
straight-line amortized fair value based on the liability method under “ASC 718 – Compensation – Stock Compensation”.
Net income before income taxes included compensation expense related to the amortization of the Company’s restricted stock unit awards of approximately $1.2 million during both fiscal 2019 and fiscal 2018. These amounts were recorded as accrued expenses in the Company’s Consolidated Balance Sheet at both September 2019 and September 2018. The tax benefit related to this compensation expense was approximately $0.3 million in both fiscal 2019 and fiscal 2018. The total intrinsic value of restricted stock units vested during fiscal 2019 and fiscal 2018 was approximately $1.1 million and $1.2 million, respectively.

                                             | Restricted Stock Units(1) | Restricted Stock Units(2) | Restricted Stock Units(3) | Restricted Stock Units(4)
-------------------------------------------- | ------------------------- | ------------------------- | ------------------------- | -------------------------
Date of award:                               | October 2015              | October 2016              | October 2017              | October 2018
Original number of awards issued:            | 13,250                    | 13,000                    | 13,000                    | 15,050
Service period:                              | 36 - 60 months            | 36 months                 | 36 months                 | 36 months
Estimated fair value of award at grant date: | $1,112,000                | $1,191,000                | $1,177,000                | $ 1,264,000
Non-vested awards outstanding at             |                           |                           |                           |
September 30, 2019:                          | 100                       | 4,334                     | 8,667                     | 15,050
Fair value of non-vested awards at           |                           |                           |                           |
September 30, 2019 of approximately:         | $8,000                    | $330,000                  | $661,000                  | $ 1,148,000

Restricted Stock Units
 September 2019 Compensation Committee approved restricted stock unit awards management team Omnibus Plans
 13,150 stock units vested September 2019. remaining 100
 vest October 2019 2020.
 8,666 units vested September 2019. remaining 4,334
 vest October 2019.
 4,333 vested September 2019. vest
 October 2019 October 2020.
 15,050 units vest equal October 2019 2020 2021.
 no direct cost to recipients restricted stock units taxes. entitled to customary adjustments stock splits dividends distributions common stock. cash dividends distributions held in escrow until conditions vesting met.
 restricted stock units recipients receive common stock
 or cash settlement closing price shares vesting.
 compensation expense Statement of Operations reflects
 straight-line amortized fair value liability method “ASC 718 – Compensation – Stock Compensation”.
income before taxes compensation expense restricted stock unit awards $1. 2 million 2019 2018. recorded accrued expenses Consolidated Balance Sheet. tax benefit $0. 3 million. total value restricted stock units $1. 1 million $1. 2 million.
 Date award 2015 2016 2017 2018
 Original number awards issued 13,250 13,000
 Service period 36 - 60 months
 Estimated fair value at grant date $1,112,000 $1,191,000 $1,177,000 1,264,000
 Non-vested awards
 September 30, 2019 4,334 8,667 15,050
 Fair value
 $8,000 $330,000 $661,000 1,148,000


Contributions and Direct Benefit Payments
It is the company’s general practice to fund amounts for pensions sufficient to meet the minimum requirements set forth in applicable employee benefits laws and local tax laws. From time to time, the company contributes additional amounts as it deems appropriate.
The following table presents the contributions made to the non-U.S. DB plans, non pension postretirement benefit plans, multi-employer plans, DC plans and direct payments for 2019 and 2018. The cash contributions to the multi-employer plans represent the annual cost included in the net periodic (income)/ cost recognized in the Consolidated Income Statement. The company’s participation in multi-employer plans has no material impact on the company’s financial statements.
In 2019 and 2018, $635 million and $598 million, respectively, was contributed in U.S. Treasury securities, which is considered a non-cash transaction (includes the Active Medical Trust).

($ in millions)                          |        |
---------------------------------------- | ------ | ------
For the year ended December 31:          | 2019   | 2018
Non-U.S. DB plans                        | $  243 | $  325
Non pension postretirement benefit plans | 304    | 335
Multi-employer plans                     | 32     | 38
DC plans                                 | 1,040  | 1,024
Direct benefit payments                  | 559    | 567
Total                                    | $2,177 | $2,288

Contributions Direct Benefit Payments
 pensions employee benefits tax laws. contributes additional.
 contributions non. DB pension postretirement multi-employer DC plans direct payments 2019 2018. cash contributions annual cost Consolidated Income Statement. impact financial statements.
 2019 2018 $635 million $598 million contributed U. Treasury securities non-cash transaction Active Medical Trust.
 December 31 2019
 Non. DB plans 243 325
 pension postretirement plans 304 335
 Multi-employer plans 32
 DC plans 1,040
 Direct benefit payments 559 567
 $2,177 $2,288


The following table summarizes our long-lived assets (consisting of property, plant and equipment) by geography at the end of fiscal 2019, fiscal 2018 and fiscal 2017 (in millions).
We have many suppliers of raw materials and subcontractors which provide our various materials and service needs. We generally seek to have multiple sources of supply for our raw materials and services, but, in some cases, we may rely on a single or limited number of suppliers.

                        |        | March 31, |
----------------------- | ------ | --------- | ------
                        | 2019   | 2018      | 2017
United States           | $521.1 | $393.3    | $388.5
Thailand                | 209.3  | 215.5     | 178.0
Various other countries | 266.3  | 159.1     | 116.8
Total long-lived assets | $996.7 | $767.9    | $683.3

table summarizes long-lived assets property plant equipment by geography end fiscal 2019 2018 2017 millions.
 many suppliers materials subcontractors service needs. seek multiple sources rely single.
 March
 United States $521. $393. $388.
 Thailand 209. 215. 178.
 countries 266. 159. 116. 8
 Total long-lived assets $996. $767. 9 $683.


Realization of net operating loss carryforwards and other deferred tax temporary differences are contingent upon future taxable earnings. The Company’s deferred tax assets were reviewed for expected utilization by assessing the available positive and negative factors surrounding their recoverability.
As of September 30, 2018, the Company’s remaining valuation allowance of approximately $105,000 related to state net operating loss carry forwards. During the fourth quarter of 2019, the Company reversed approximately $58,000 of its valuation allowance. This consisted of decreasing the valuation allowance for the expiration and utilization of state net operating losses in 2019 of approximately $68,000 and increasing the valuation allowance by approximately $10,000 for future expected NOL utilization based on updated profitability estimates and changes to the loss utilization rules. The remaining valuation allowance balance as of September 30, 2019 of approximately $47,000 relates entirely to state net operating loss carry forwards we do not expect to utilize. The Company will continue to assess the assumptions used to determine the amount of our valuation allowance and may adjust the valuation allowance in future periods based on changes in assumptions of estimated future income and other factors. If the valuation allowance is reduced, we would record an income tax benefit in the period the valuation allowance is reduced. If the valuation allowance is increased, we would record additional income tax expense.
Significant components of deferred income tax assets and liabilities are as follows at:

                                              | September 30, 2019 | September 30, 2018
--------------------------------------------- | ------------------ | ------------------
Deferred income tax assets (liabilities):     |                    |
Intangibles                                   | $(75,190)          | $(70,467)
Property and equipment depreciation           | (521,586)          | (552,119)
Net operating loss carry forwards and credits | 377,505            | 464,274
Stock-based compensation                      | 114,118            | 151,558
Inventories                                   | 350,197            | 400,111
Prepaid expenses                              | (63,252)           | (60,806)
Accrued expenses and reserves                 | 371,414            | 250,787
Goodwill                                      | (607,882)          | (583,415)
Gross deferred tax liability                  | (54,676)           | (77)
Valuation allowance                           | (47,014)           | (104,858)
Net deferred tax liability                    | $(101,690)         | $(104,935)

net operating loss carryforwards deferred tax differences contingent future taxable earnings. deferred tax assets reviewed.
 September 30, 2018 remaining valuation allowance $105,000 state net operating loss carry forwards. fourth quarter 2019 reversed $58,000 allowance. $68,000 increasing $10,000 for future NOL utilization profitability. remaining $47,000 state net operating loss carry forwards. assumptions adjust. reduced income tax benefit. increased additional income tax expense.
 deferred income tax assets liabilities
 2018
 assets
 Intangibles $(75,190) $(70,467)
 Property equipment depreciation (521,586) (552,119)
 Net operating loss carry forwards credits 377,505 464,274
 Stock-based compensation 114,118 151,558
 Inventories 350,197 400,111
 Prepaid expenses (63,252) (60,806)
 Accrued expenses reserves 371,414 250,787
Goodwill (607,882)
 deferred tax (54,676)
 Valuation,014)
 deferred tax


8. Credit Facilities and Long-Term Debt
Long-term debt consisted of the following (in thousands except interest rate and installment data):
Certain property, plant, and equipment is pledged as collateral on our note payable. Unless otherwise approved by our lender, we are required by provisions of our loan agreement to (1) maintain minimum levels of working capital (ratio of not less than 1.25 to 1) and net worth (minimum of $90.0 million tangible net worth, plus 45% of cumulative net income); (2) limit dividends paid in any given quarter to not exceed an amount equal to one third of the previous quarter’s consolidated net income (allowed if no events of default), (3) maintain minimum total funded debt to total capitalization (debt to total tangible capitalization not to exceed 55%); and (4) maintain various current and cash-flow coverage ratios (1.25 to 1), among other restrictions. Our debt agreement requires Fred R. Adams, Jr., the Company’s Founder and Chairman Emeritus, or his family, to maintain ownership of Company shares, directly or indirectly, representing not less than 50% of the outstanding voting power of the Company. Certain property, plant, and equipment is pledged as collateral on our note payable. Unless otherwise approved by our lender, we are required by provisions of our loan agreement to (1) maintain minimum levels of working capital (ratio of not less than 1.25 to 1) and net worth (minimum of $90.0 million tangible net worth, plus 45% of cumulative net income); (2) limit dividends paid in any given quarter to not exceed an amount equal to one third of the previous quarter’s consolidated net income (allowed if no events of default), (3) maintain minimum total funded debt to total capitalization (debt to total tangible capitalization not to exceed 55%); and (4) maintain various current and cash-flow coverage ratios (1.25 to 1), among other restrictions. Our debt agreement requires Fred R. Adams, Jr., the Company’s Founder and Chairman Emeritus, or his family, to maintain ownership of Company shares, directly or indirectly, representing not less than 50% of the outstanding voting power of the Company.
Interest, net of amount capitalized, of $644,000, $265,000, and $318,000 was recorded during fiscal 2019, 2018 and 2017, respectively. Interest of zero, $217,000 and $1.1 million was capitalized for construction of certain facilities during fiscal 2019, 2018 and 2017, respectively
On July 10, 2018, we entered into a $100.0 million Senior Secured Revolving Credit Facility (the “Revolving Credit Facility”) with a five-year term. The credit agreement for the Revolving Credit Facility includes an accordion feature permitting the Company, with the consent of the administrative agent, to increase the revolving commitments in the aggregate up to $125.0 million. No amounts were borrowed under the facility as of June 1, 2019 or during fiscal 2019. The Company had $3.7 million of outstanding standby letters of credit issued under the Revolving Credit Facility at June 1, 2019.
The interest rate is based, at the Company’s election, on either the Eurodollar Rate plus the Applicable Margin or the
Base Rate plus the Applicable Margin. The “Eurodollar Rate” means the reserve adjusted rate at which Eurodollar
deposits in the London interbank market for an interest period of one, two, three, six or twelve months (as selected by
the Company) are quoted. The “Base Rate” means a fluctuating rate per annum equal to the highest of (a) the federal funds rate plus 0.50% per annum, (b) the prime rate of interest established by the administrative agent, and (c) the Table of Contents 54 Eurodollar Rate for an interest period of one month plus 1% per annum, subject to certain interest rate floors. The “Applicable Margin” means 0.00% to 0.75% per annum for Base Rate Loans and 1.00% to 1.75% per annum for Eurodollar Rate Loans, in each case depending upon the average outstanding balance at the quarterly pricing date. The Company will pay a commitment fee of 0.20% on the unused portion of the facility.
The Revolving Credit Facility is guaranteed by all the current and future wholly-owned direct and indirect domestic subsidiaries of the Company, and is secured by a first-priority perfected security interest in substantially all of the Company’s and the guarantors’ accounts, payment intangibles, instruments (including promissory notes), chattel paper, inventory (including farm products) and deposit accounts maintained with the administrative agent.
The credit agreement for the Revolving Credit Facility contains customary covenants, including restrictions on the incurrence of liens, incurrence of additional debt, sales of assets and other fundamental corporate changes and investments. The credit agreement requires maintenance of two financial covenants (i) a minimum working capital ratio of 2.00 to 1.00 and (ii) an annual limit on capital expenditures of $100.0 million. Additionally, the credit agreement requires that Fred R. Adams Jr., his spouse, natural children, sons-in-law or grandchildren, or any trust, guardianship, conservatorship or custodianship for the primary benefit of any of the foregoing, or any family limited partnership, similar limited liability company or other entity that 100% of the voting control of such entity is held by any of the foregoing, shall maintain at least 50% of the Company’s voting stock. Failure to satisfy any of these covenants will constitute a default under the terms of the credit agreement. Further, dividends are restricted to the Company’s current dividend policy of one-third of the Company’s net income computed in accordance with generally accepted accounting principles. The Company is allowed to repurchase up to $75.0 million of its capital stock in any year provided there is no default under the credit agreement and the Company has availability of at least $20.0 million under the facility.
The credit agreement for the Revolving Credit Facility also includes customary events of default and customary remedies upon the occurrence of an event of default, including acceleration of the amounts due and foreclosure of the collateral.
At June 1, 2019, we were in compliance with the covenant requirements of all loan agreements.

                                                                                | June 1, 2019 | June 2, 2018
---------------------------------------------------------------------------------------------------------------- | ------------ | ------------
Note payable at 6.20%, due in monthly principal installments of $250,000, plus interest, maturing in fiscal 2020 | $1,500       | $4,500
Note payable at 5.40%, due in monthly principal installments of $125,000, plus interest, matured in fiscal 2019  | —            | 250
Capital lease obligations                                                                                | 1,054        | 1,340
                                                                                | 2,554        | 6,090
Less: capitalized loan costs                                                                                | 217          | —
Total debt                                                                                | 2,337        | 6,090
Less: current maturities                                                                                | 1,696        | 3,536
Long-term debt, less current maturities                                                                          | $641         | $2,554

. Credit Facilities Long-Term Debt
 debt interest installment
 property plant equipment pledged collateral note payable. required maintain working capital 1. 25 to 1) net worth $90. 0 million plus 45% cumulative net limit dividends not exceed third previous quarter’s net income maintain funded debt to capitalization not exceed maintain current cash-flow coverage ratios (1. 25 to 1). agreement requires Fred R. Adams, Jr. Founder Chairman family maintain ownership Company shares 50% voting power. property plant equipment pledged collateral note payable. maintain working capital 1. 25 to 1) net worth $90. 0 million plus 45% net limit dividends not exceed one third previous quarter’s net income maintain funded debt to capitalization not exceed maintain current cash-flow coverage ratios (1. 25 to 1). requires Fred R. Adams Jr. family maintain ownership Company shares 50% voting power.
Interest $644,000 $265,000 $318,000 recorded fiscal 2019 2018 2017. Interest $217,000 $1. 1 million capitalized construction facilities
 July 10, 2018 entered $100. 0 million Senior Secured Revolving Credit Facility five-year term. agreement increase commitments $125. 0 million. No borrowed June 1, 2019. $3. 7 million outstanding standby letters credit issued June 1, 2019.
 interest rate based Eurodollar Rate
 Base Rate. “Eurodollar reserve adjusted rate
 deposits London interbank market months
. “Base Rate” fluctuating rate federal funds rate plus. 50% prime rate Table of Contents 54 Eurodollar Rate 1%. “Applicable Margin” 0.% to. 75% per annum Base Rate Loans 1.% to. 75% per annum Eurodollar Rate Loans average balance. commitment fee 0. 20% unused portion facility.
Revolving Credit Facility guaranteed by current future subsidiaries Company secured by first-priority security interest in Company’s guarantors’ accounts intangibles instruments promissory chattel paper inventory products deposit accounts with administrative agent.
 credit agreement contains covenants restrictions on liens additional debt sales assets corporate changes investments. requires minimum working capital ratio 2. 00 to 1. 00 annual limit capital expenditures $100. 0 million. Fred R. Adams Jr. spouse children sons-in-law grandchildren maintain 50% of Company’s voting stock. Failure default. dividends restricted to current policy one-third of net income. Company repurchase up to $75. 0 million capital stock no default least $20. 0 million.
 includes events of default remedies acceleration of amounts due foreclosure of collateral.
 At June 1, 2019 in compliance with covenant requirements loan agreements.
June 1 2019 2 2018
 6. 20% installments $250,000 2020 $1,500 $4,500
 5. 40% $125,000 2019
 Capital lease obligations
 6,090
 capitalized loan costs
 debt 2,337 6,090
 maturities 1,696
 Long-term debt $641 $2,554