(12) Basic and Diluted Net Loss per Share
Basic net loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential dilutive shares of common stock. Basic and diluted net loss per share of common stock were the same for all periods presented as the impact of all potentially dilutive securities outstanding was anti-dilutive. The Company uses the if converted method for calculating any potential dilutive effect on diluted loss per share.
The following common equivalent shares were excluded from the diluted net loss per share calculation because their inclusion would have been anti-dilutive:
In connection with the issuance of the 2024 Notes in December 2019, the Company paid $44.9 million to enter into capped call option agreements to reduce the potential dilution to holders of the Company’s common stock upon conversion of the 2024 Notes. In connection with the issuance of the 2022 Notes in November 2017, the Company paid $12.9 million to enter into capped call option agreements to reduce the potential dilution to holders of the Company’s common stock upon conversion of the 2022 Notes.
In December 2019, the Company partially terminated capped call options related to the 2022 Notes and received $5.8 million. The capped call option agreements are excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive.

                                |           | Year Ended December 31, |
------------------------------- | --------- | ----------------------- | ---------
                                | 2019      | 2018                    | 2017
Convertible senior notes        | 6,733,914 | 3,411,199               | 3,411,199
Stock-based compensation grants | 2,038,174 | 2,562,274               | 3,268,610
Total                           | 8,772,088 | 5,973,473               | 6,679,809

Basic Diluted Net Loss per Share
 computed weighted-average shares. Diluted loss potential dilutive shares. net loss same all periods impact dilutive securities anti-dilutive. Company uses converted method dilutive effect.
 shares excluded from loss anti-dilutive
 2024 Notes December 2019 Company paid $44. 9 million capped call option agreements reduce dilution. 2022 Notes November 2017 paid $12. 9 million reduce dilution.
 December 2019 terminated capped call options received $5. 8 million. capped agreements excluded from diluted net loss per share antidilutive.
 Year Ended December 31,
 2019 2018 2017
 Convertible senior notes 6,733,914,199
 Stock-based compensation grants 2,038,174 2,562,274 3,268,610
 Total 8,772,088 5,973,473 6,679,809


Defined Benefit Pension Plan Assets
The investments of the plans are managed by insurance companies or third-party investment managers selected by Autodesk's Trustees, consistent with regulations or market practice of the country where the assets are invested. Investments managed by qualified insurance companies or third-party investment managers under standard contracts follow local regulations, and Autodesk is not actively involved in their investment strategies.
Defined benefit pension plan assets measured at fair value on a recurring basis consisted of the following investment categories at the end of each period as follows:
The insurance contracts in the preceding table represent the immediate cash surrender value of assets managed by qualified insurance companies. Autodesk does not have control over the target allocation or visibility of the investment strategies of those investments. Insurance contracts and investments held by insurance companies made up 35% and 44% of total plan assets as of January 31, 2019 and January 31, 2018, respectively.
The assets held in the investment fund in the preceding table are invested in a diversified growth fund actively managed by Russell Investments in association with Aon Hewitt. The objective of the fund is to generate capital appreciation on a longterm basis through a diversified portfolio of investments. The fund aims to deliver equity-like returns in the medium to long term with around two-thirds the volatility of equity markets. The fair value of the assets held in the investment fund are priced monthly at net asset value without restrictions on redemption.

                                             | Fiscal Year Ended January 31, |         |         |       |
-------------------------------------------- | ----------------------------- | ------- | ------- | ----- | ------
                                             | 2019                          |         |         |       | 2018
                                             | Level 1                       | Level 2 | Level 3 | Total | Total
Insurance contracts                          | $—                            | $28.0   | $—      | $28.0 | $53.0
Other investments                            | —                             | 14.5    | —       | 14.5  | 17.0
Total assets measured at fair value          | $—                            | $42.5   | $—      | $42.5 | 70.0
Cash                                         |                               |         |         | 4.3   | 0.2
Investment Fund valued using net asset value |                               |         |         | 34.0  | 50.9
Total pension plan assets at fair value      |                               |         |         | $80.8 | $121.1

Benefit Pension Plan Assets
 managed by insurance companies third-party investment managers selected by Autodesk's Trustees consistent with regulations country. Investments companies follow local regulations Autodesk not involved in strategies.
 pension plan assets measured fair value investment categories
 insurance contracts represent immediate cash surrender value. Autodesk control over target allocation investment strategies. Insurance contracts investments 35% and 44% of plan assets as January 31, 2019 31, 2018.
 assets investment fund diversified growth fund by Russell Investments Aon Hewitt. objective generate capital appreciation diversified portfolio. aims equity-like returns medium to long term two-thirds volatility equity markets. assets priced monthly at net asset value without restrictions redemption.
 Fiscal Year Ended January 31,
 Insurance contracts $28.
 Other investments.
 Total assets at fair value $42. 70.
 Cash 4..
 Investment Fund net asset value 34.
 pension plan assets value $80. $121.


AMERICAN TOWER CORPORATION AND SUBSIDIARIES SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (dollars in millions)
(1) Includes amounts incurred primarily for the construction of new sites.
(2) Includes amounts incurred to purchase or otherwise secure the land under communications sites.
(3) Includes amounts incurred to increase the capacity of existing sites, which results in new incremental tenant revenue.
(4) Includes amounts incurred to enhance existing sites by adding additional functionality, capacity or general asset improvements.
(5) Includes amounts incurred in connection with acquisitions or new market launches. Start-up capital expenditures includes non-recurring expenditures contemplated in acquisitions, new market launch business cases or initial deployment of new technologies or innovation solutions that lead to an increase in sitelevel cash flow generation.
(6) Primarily includes regional improvements and other additions.
(7) Primarily includes foreign currency exchange rate fluctuations and other deductions.

                                         | 2019      | 2018      | 2017
---------------------------------------- | --------- | --------- | ---------
Gross amount at beginning                | $15,960.1 | $15,349.0 | $14,277.0
Additions during period:                 |           |           |
Acquisitions                             | 887.0     | 721.4     | 499.7
Discretionary capital projects (1)       | 258.1     | 173.5     | 120.7
Discretionary ground lease purchases (2) | 189.8     | 180.4     | 150.4
Redevelopment capital expenditures (3)   | 213.6     | 177.3     | 138.8
Capital improvements (4)                 | 161.2     | 94.0      | 65.6
Start-up capital expenditures (5)        | 71.3      | 113.1     | 158.1
Other (6)                                | 45.2      | (3.0)     | 106.4
Total additions                          | 1,826.2   | 1,456.7   | 1,239.7
Deductions during period:                |           |           |
Cost of real estate sold or disposed     | (304.6)   | (395.7)   | (246.5)
Other (7)                                | (52.4)    | (449.9)   | 78.8
Total deductions:                        | (357.0)   | (845.6)   | (167.7)
Balance at end                           | $17,429.3 | $15,960.1 | $15,349.0

AMERICAN TOWER CORPORATION SUBSIDIARIES SCHEDULE REAL ESTATE ACCUMULATED DEPRECIATION millions
 construction new sites.
 land communications sites.
 capacity tenant revenue.
 sites functionality capacity asset improvements.
 new market launches. Start-up capital expenditures non expenditures new technologies innovation sitelevel cash flow.
 regional improvements additions.
 foreign currency exchange rate fluctuations deductions.
 amount $15,960. $15,349. $14,277.
 Additions
 Acquisitions 887. 721. 499.
 capital projects 258. 173. 120.
 ground lease purchases 189. 180. 150.
 Redevelopment capital expenditures 213. 177. 138.
 Capital improvements 161. 94. 65.
 Start-up capital expenditures 71. 113. 158.
 45. 106.
 Total additions 1,826. 1,456. 1,239.
 Deductions
real estate. 6). (246.
. 4). 9) 78.
 deductions. (845. 7)
 $17,429. 3 $15,960. $15,349.


(11) STOCK-BASED COMPENSATION
The following tables summarize the Company’s stock-based compensation expense for liability and equity classified awards included in the consolidated statements of operations:
CII Common and Preferred Units
Prior to the Company’s IPO, the Company was given authorization by Communications Infrastructure Investments, LLC (“CII”) to award 625,000,000 of CII’s common units as profits interests to employees, directors, and affiliates of the Company. The common units were historically considered to be stock-based compensation with terms that required the awards to be classified as liabilities due to cash settlement features. The vested portion of the awards was reported as a liability and the fair value was re-measured at each reporting date until the date of settlement, with a corresponding charge (or credit) to stock-based compensation expense. On December 31, 2016, the CII common units became fully vested and as such there is no remaining unrecognized compensation cost associated with CII common units for any period subsequent to December 31, 2016.
The value of the CII common units was derived from the value of CII’s investments in the Company and Onvoy, LLC and its subsidiaries (“OVS”), a company that provided voice and managed services which the Company spun off during the year ended June 30, 2014. As the value derived from each of these investments was separately determinable and there was a plan in place to distribute the value associated with the investment in Company shares separate from the value derived from OVS, the two components were accounted for separately. The OVS component of the CII awards was adjusted to fair value each reporting period. On December 31, 2015, CII entered into an agreement to sell OVS to a third party. The sale was completed in May 2016. Based on the sale price, the estimated fair value of OVS awards was increased, resulting in an increase to stock based compensation expense and corresponding increase to additional paid-in capital of $12.9 million for the year ended June 30, 2016. Proceeds from the sale to be distributed to the Company’s employees was paid by CII.

                                             | Year Ended June 30, |       |
-------------------------------------------- | ------------------- | ----- | ------
                                             | 2019                | 2018  | 2017
                                             | (in millions)       |       |
Included in:                                 |                     |       |
Operating costs                              | $11.3               | $9.9  | $11.3
Selling, general and administrative expenses | 98.0                | 86.8  | 102.8
Total stock-based compensation expense       | $109.3              | $96.7 | $114.1
CII common and preferred units $ — $ — $10.1 | $ —                 | $ —   | $10.1
Part A restricted stock units                | 93.8                | 82.3  | 76.5
Part B restricted stock units                | 13.0                | 12.4  | 26.0
Part C restricted stock units                | 2.5                 | 2.0   | 1.5
Total stock-based compensation expense       | $109.3              | $96.7 | $114.1

-BASED COMPENSATION
 tables summarize stock-based compensation expense liability equity awards statements
 CII Common Preferred Units
 Communications Infrastructure Investments award 625,000,000 common units employees directors affiliates. common units stock-based compensation liabilities cash settlement. vested portion reported as liability fair value re-measured until settlement stock-based compensation expense. December 31, 2016, CII common units fully vested no remaining unrecognized compensation cost 2016.
 value CII common units derived from investments in Company Onvoy, subsidiaries June 30, 2014. value determinable plan distribute separately. OVS component adjusted to fair value each period. December 31, 2015, CII OVS third party. sale completed May 2016. estimated fair value of OVS awards increased stock compensation expense additional paid-in capital $12. 9 million year ended June 30, 2016. Proceeds from sale employees paid by CII.
Year Ended June 30
 2019 2018 2017
 millions
 Operating costs $11. $9.
 Selling administrative expenses 98. 86. 102.
 stock compensation expense $109. $96. $114.
 units $10. $10.
 restricted stock units 93. 82. 76.
 B units 13. 12. 26.
 C stock units.
 stock compensation expense $109. $96. $114.


2.6 Taxes (continued)
1 Net deferred tax liabilities include net deferred tax assets of $2,195,000 (2018: $1,937,000) from the iMoney Group.
Recognition and measurement
Our income tax expense is the sum of current and deferred income tax expenses. Current income tax expense is calculated on accounting profit after adjusting for non-taxable and non-deductible items based on rules set by the tax authorities. Deferred income tax expense is calculated at the tax rates that are expected to apply to the period in which the deferred tax asset is realised or the deferred tax liability is settled. Both our current and deferred income tax expenses are calculated using tax rates that have been enacted or substantively enacted at reporting date.
Our current and deferred taxes are recognised as an expense in profit or loss, except when they relate to items that are directly recognised in other comprehensive income or equity. In this case, our current and deferred tax expenses are also recognised directly in other comprehensive income or equity.
We generally recognise deferred tax liabilities for all taxable temporary differences, except to the extent that the deferred tax liability arises from:
• the initial recognition of goodwill; and
• the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither our accounting profit nor our taxable income at the time of the transaction.
For our investments in controlled entities and associated entities, recognition of deferred tax liabilities is required unless we are able to control the timing of our temporary difference reversal and it is probable that the temporary difference will not reverse.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carried forward unused tax losses and tax credits, can be utilised
Deferred tax assets and deferred tax liabilities are offset in the statement of financial position where they relate to income taxes levied by the same taxation authority and to the extent that we intend to settle our current tax assets and liabilities on a net basis.

                                              | CONSOLIDATED |
--------------------------------------------- | ------------ | ----------
                                              | 2019 $’000   | 2018 $’000
Deferred taxes                                |              |
Deferred tax assets relate to the following:  |              |
Trade and other payables                      | 2,312        | 1,558
Provisions                                    | 4,759        | 2,230
Property, Plant and Equipment                 | -            | 1,680
ITAA 97 Section 40-880 business related costs | 92           | 105
Unrealised foreign exchange differences       | 58           | 56
Unused tax losses                             | 4,837        | 4,665
Other                                         | 13           | 114
Total deferred tax assets                     | 12,071       | 10,408
                                              |              |
Deferred tax liabilities relate to following: |              |
Trail commission asset                        | (34,168)     | (31,253)
Property, Plant and Equipment                 | (581)        | -
Development costs                             | (2,109)      | (2,359)
Total deferred tax liabilities                | (36,858)     | (33,612)
Net deferred tax liabilities1                 | (24,787)     | (23,204)

. 6 Taxes
 Net deferred tax liabilities include $2,195,000 (2018: $1,937,000) iMoney Group.
 income tax expense sum current deferred expenses. calculated on accounting profit after adjusting non-taxable items tax authorities. Deferred tax calculated tax rates realised settled. tax rates enacted at reporting date.
 current deferred taxes recognised as expense in profit loss except recognised income equity.
 recognise deferred tax liabilities for taxable temporary differences except arises from
 initial recognition goodwill
 liability transaction not business combination affects accounting profit taxable income.
 investments in controlled entities recognition deferred tax liabilities required unless timing temporary difference reversal.
 Deferred tax assets recognised taxable profit available against deductible temporary differences unused tax losses tax credits
Deferred tax assets liabilities offset financial position income taxes settle liabilities.
 2019 2018
 Deferred taxes
 Trade payables 2,312 1,558
 Provisions 2,230
 Property Plant Equipment
 97 Section 40-880 business costs
 foreign exchange differences
 Unused tax losses 4,837,665
 deferred tax assets 12,071 10,408
 liabilities
 commission asset (34,168 (31,253)
 Property Plant Equipment
 Development costs (2,109
 deferred tax liabilities (36,858) (33,612)
 Net deferred tax (24,787


IMFT: Since 2006, we have owned 51% of IMFT, a joint venture between us and Intel. IMFT is governed by a Board of Managers, for which the number of managers appointed by each member varies based on the members' respective ownership interests. IMFT manufactures semiconductor products exclusively for its members under a long-term supply agreement at prices approximating cost. In 2018, IMFT discontinued production of NAND and subsequent to that time manufactured 3D XPoint memory. In 2018, we announced that we and Intel will no longer jointly develop 3D XPoint technology beyond the second generation and we substantially completed this cost-sharing arrangement in the first quarter of 2020. IMFT sales to Intel were $731 million, $507 million, and $493 million for 2019, 2018, and 2017, respectively.
IMFT's capital requirements are generally determined based on an annual plan approved by the members, and capital contributions to IMFT are requested as needed. Capital requests are made to the members in proportion to their then-current ownership interest. Members may elect to not contribute their proportional share, and in such event, the contributing member may elect to contribute any amount of the capital request, either in the form of an equity contribution or member debt financing. Under the supply agreement, the members have rights and obligations to the capacity of IMFT in proportion to their investment, including member debt financing. Any capital contribution or member debt financing results in a proportionate adjustment to the sharing of output on an eight-month lag. Pursuant to the terms of the IMFT joint venture agreement, Intel provided debt financing of $1.01 billion to IMFT in 2018 and IMFT repaid $316 million to Intel in 2019. As of August 29, 2019, current debt included $693 million of IMFT Member Debt. Members pay their proportionate share of fixed costs associated with IMFT's capacity.  IMFT's capital requirements are generally determined based on an annual plan approved by the members, and capital contributions to IMFT are requested as needed. Capital requests are made to the members in proportion to their then-current ownership interest. Members may elect to not contribute their proportional share, and in such event, the contributing member may elect to contribute any amount of the capital request, either in the form of an equity contribution or member debt financing. Under the supply agreement, the members have rights and obligations to the capacity of IMFT in proportion to their investment, including member debt financing. Any capital contribution or member debt financing results in a proportionate adjustment to the sharing of output on an eight-month lag. Pursuant to the terms of the IMFT joint venture agreement, Intel provided debt financing of $1.01 billion to IMFT in 2018 and IMFT repaid $316 million to Intel in 2019. As of August 29, 2019, current debt included $693 million of IMFT Member Debt. Members pay their proportionate share of fixed costs associated with IMFT's capacity.
In January 2019, we exercised our option to acquire Intel's interest in IMFT. Subsequently, Intel set the closing date to occur on October 31, 2019, at which time IMFT will become a wholly-owned subsidiary. In the first quarter of 2020, we expect to pay Intel approximately $1.4 billion in cash for Intel's noncontrolling interest in IMFT and IMFT member debt. Pursuant to the terms of the IMFT wafer supply agreement, Intel notified us of its election to receive supply from IMFT from the closing date through April 2020 at a volume equal to approximately 50% of their volume from IMFT in the six-month period prior to closing.
Creditors of IMFT have recourse only to IMFT's assets and do not have recourse to any other of our assets. The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets:
Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets.

As of                                 | 2019   | 2018
------------------------------------- | ------ | ------
Assets                                |        |
Cash and equivalents                  | $130   | $91
Receivables                           | 128    | 126
Inventories                           | 124    | 114
Other current assets                  | 9      | 8
Total current assets                  | 391    | 339
Property, plant, and equipment        | 2,235  | 2,641
Other noncurrent assets               | 38     | 45
Total assets                          | $2,664 | $3,025
Liabilities                           |        |
Accounts payable and accrued expenses | $118   | $138
Current debt                          | 696    | 20
Other current liabilities             | 37     | 9
Total current liabilities             | 851    | 167
Long-term debt                        | 53     | 1,064
Other noncurrent liabilities          | 5      | 74
Total liabilities                     | $909   | $1,305

Since 2006, owned 51% IMFT joint venture Intel. governed Board of Managers varies ownership. manufactures semiconductor products members long-term supply agreement cost. 2018 discontinued production NAND manufactured 3D XPoint memory. Intel no longer develop 3D XPoint beyond second generation completed cost-sharing first quarter 2020. IMFT sales Intel $731 million $507 million $493 million 2019 2018 2017.
 IMFT capital requirements determined annual plan contributions requested as needed. ownership. equity contribution or member debt financing. members rights obligations capacity IMFT investment debt financing. results adjustment output eight-month lag. Intel provided debt financing $1. 01 billion IMFT 2018 IMFT repaid $316 million Intel 2019. August 29, 2019 current debt $693 million IMFT Member Debt. Members pay fixed costs IMFT. capital requirements determined annual plan contributions requested needed. ownership.Members contribute share capital equity contribution debt financing. members rights obligations capacity IMFT investment including debt financing. capital contribution debt financing output eight-month lag. Intel provided debt financing $1. 01 billion IMFT 2018 IMFT repaid $316 million Intel 2019. August 29, 2019 debt $693 million IMFT Member Debt. Members pay fixed costs IMFT capacity.
 January 2019 acquire Intel interest IMFT. closing date October 31, 2019 IMFT wholly-owned subsidiary. first quarter 2020 pay Intel $1. 4 billion cash noncontrolling interest IMFT debt. Intel receive supply IMFT April 2020 volume 50% volume six-month.
 Creditors IMFT recourse assets. assets liabilities IMFT consolidated balance sheets
 exclude intercompany balances.
 2018
 Assets
 Cash equivalents $130 $91
 Receivables 128
 Inventories 124
 Other current assets
 Total assets 391 339
Property plant equipment 2,235 2,641
 noncurrent assets
 $2,664 $3,025
 accrued expenses $118
 debt
 851 167
 Long-term debt 53 1,064
 74
 $909 $1,305


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
Disaggregated Revenue
The following table presents revenues disaggregated by the major markets we serve:

                    | Twelve Months Ended December 31, |
------------------- | -------------------------------- | --------
                    | 2019                             | 2018
Transportation      | $299,005                         | $300,124
Industrial          | 78,369                           | 86,968
Medical             | 41,901                           | 40,663
Aerospace & Defense | 32,569                           | 23,323
Telecom & IT        | 17,155                           | 19,405
Total               | $468,999                         | $470,483

FINANCIAL STATEMENTS
 Revenue
 revenues markets
 Twelve Months December
 Transportation $299,005 $300,124
 Industrial 78,369
 Medical 41,901 40,663
 Aerospace Defense 32,569 23,323
 Telecom IT 17,155
 $468,999 $470,483


Accumulated Benefit Obligation
The following table provides information for the plans with an accumulated benefit obligation for fiscal years 2019 and 2018 (in thousands):

                               | August 31, |
------------------------------ | ---------- | --------
                               | 2019       | 2018
Projected benefit obligation   | $174,690   | $161,104
Accumulated benefit obligation | $161,729   | $152,380
Fair value of plan assets      | $158,101   | $151,715

Accumulated Benefit Obligation
 table obligation 2019 2018
 Projected benefit obligation $174,690 $161,104
 Accumulated $161,729 $152,380
 assets $158,101 $151,715


The table below presents estimated payments and benefits that would have been provided to Messrs. Lien, Walcott and Bertz, assuming their respective qualifying terminations as of December 31, 2019. As a condition of receiving any severance benefits in connection with the change in control agreements, each named executive officer must execute a full waiver and release of all claims in our favor. In addition to the benefits described in the tables below, upon termination of employment each executive officer may be eligible for other benefits that are generally available to all salaried employees, such as life insurance, long-term disability, and 401(k) benefits.
(1) Mr. Lien would receive 18 months of base salary and 150% of his annual target bonus. Mr. Walcott would receive 12 months of base salary and 100% of his annual target bonus. Mr. Bertz would receive six months of base salary, 50% of his annual target bonus and the pro rata portion of his unpaid annual target bonus for the period of completed service.
(2) Mr. Lien would receive 18 months of COBRA benefits reimbursement and Mr. Bertz would receive six months of COBRA benefits reimbursement. Mr. Walcott elected not to receive benefits from the Company that would be eligible for continuation under COBRA. As a result, Mr. Walcott would not be eligible for post-termination COBRA benefits reimbursement.
(3) As of December 31, 2019, Mr. Walcott held a stock option with 13,006 unvested shares subject to such option with an exercise price of $17.15 per share. The exercise price of each of these stock options is greater than $1.38, the closing price of our common stock on The Nasdaq Global Market as of December 31, 2019. As of December 31, 2019, Mr. Walcott had 78,750 unvested RSUs and Mr. Bertz had 40,000 unvested RSUs.
(4) Mr. Lien would receive nine months of base salary and 75% of his annual target bonus; Mr. Walcott would receive six months of base salary and 50% of his target bonus; Mr. Bertz would receive three months of base salary and 25% of his target bonus.
(5) Mr. Lien would receive nine months of COBRA benefits reimbursement and Mr. Bertz would receive three months of COBRA benefits reimbursement. Mr. Walcott elected not to receive benefits from the Company that would be eligible for continuation under COBRA. As a result, Mr. Walcott would not be eligible for post-termination COBRA benefits reimbursement.

                                                      | Chris Lien | Wister Walcott | Robert Bertz
----------------------------------------------------- | ---------- | -------------- | ------------
Termination after Change of Control:                  |            |                |
Cash Severance(1)                                     | $1,200,000 | $450,000       | $254,063
Post-termination COBRA Reimbursement(2)               | 48,160     | —              | 11,098
Acceleration of Stock Options and RSUs(3)             | —          | 108,675        | 55,200
Total                                                 | $1,248,160 | $558,675       | $320,361
Termination not in connection with Change of Control: |            |                |
Cash Severance(4)                                     | $600,000   | $225,000       | $103,125
Post-termination COBRA Reimbursement(5)               | 24,080     | —              | 5,549
Total                                                 | $624,080   | $225,000       | $108,674

table presents estimated payments benefits. Lien Walcott Bertz terminations December 31, 2019. severance benefits executive officer full waiver release claims. termination eligible for benefits life insurance long-term disability 401(k) benefits.
. Lien 18 months base salary 150% annual target bonus. Walcott 12 months 100% target bonus. Bertz six months salary 50% target bonus unpaid annual target bonus.
. Lien 18 months COBRA. Bertz six months. Walcott benefits. eligible for post-termination COBRA benefits.
 2019. Walcott held stock option 13,006 unvested shares exercise price $17. 15 per share. greater than $1. 38 closing price Nasdaq Global Market December 31, 2019. Walcott 78,750 unvested. Bertz RSUs.
. Lien nine months base salary 75% annual target bonus. Walcott six months 50% target bonus. Bertz three months 25% target bonus.
. Lien nine months COBRA benefits.Bertz three months COBRA benefits. Walcott. post-termination COBRA.
 Walcott Bertz
 Termination Change Control
 Cash Severance(1) $1,200,000 $450,000 $254,063
 COBRA Reimbursement(2)
 Acceleration Stock Options RSUs(3) 55
 $1,248,160 $558,675 $320,361
 Termination
 Cash Severance(4) $600,000 $225,000 $103,125
 Post-termination COBRA Reimbursement(5)
 $624,080 $108,674


Year Ended December 31, 2019 Compared to Year Ended December 31, 2018
Revenues
Our Products and Licensing segment included revenues from sales of test and measurement systems, primarily representing sales of our Optical Backscatter Reflectometer, ODiSI, and Optical Vector Analyzer platforms, optical components and sub-assemblies and sales of our Hyperion and Terahertz sensing platforms. Our Products and Licensing segment revenues increased $22.5 million to $44.5 million for the year ended December 31, 2019 compared to $21.9 million for the year ended December 31, 2018.
The increase resulted primarily from $10.8 million of revenues realized from the legacy business of MOI and $10.5 million of revenues realized from the legacy business of GP during the year ended December 31, 2019. Continued growth in sales of our fiber-optic sensing products, including our ODiSI products directed toward the expanding use of composite materials and the need for improved means of testing their structural integrity, and our communications test instruments also contributed to this increase.
Our Technology Development segment revenues increased $5.1 million to $26.0 million for the year ended December 31, 2019 compared to $21.0 million for the year ended December 31, 2018. Revenues within this segment increased due to additional contract awards, including higher value Phase 2 SBIR contracts. The increase continues a growth trend experienced over the past two years largely driven by successes in Phase 2 SBIR awards. The increase was realized primarily in our intelligent systems, advanced materials, optical systems and terahertz research groups. As Phase 2 SBIR contracts generally have a performance period of a year or more, we currently expect Technology Development segment revenues to remain at a similar level for the near term.

                                | Years ended December 31, |             |               |
------------------------------- | ------------------------ | ----------- | ------------- | ------------
                                | 2019                     | 2018        | $ Difference  | % Difference
Products and licensing revenues | $44,491,041              | $21,949,689 | $22,541,352   | 102.7%
Technology development revenues | 26,024,674               | 20,967,556  | 5,057,118     | 24.1%
Total revenues                  | $70,515,715              | $42,917,245 | $27,598,470   | 64.3%

December 31, 2019 2018
 Products Licensing segment test measurement systems Optical Backscatter Reflectometer ODiSI Optical Vector Analyzer platforms optical components sub-assemblies Hyperion Terahertz sensing platforms. Licensing revenues increased $22. 5 million to $44. 5 million 2019 $21. 9 million 2018.
 increase $10. 8 million MOI $10. 5 million GP. growth fiber-optic sensing products ODiSI composite materials testing structural integrity communications test instruments.
 Technology Development segment revenues increased $5. 1 million $26. 0 million 2019 $21. 0 million 2018. contract awards Phase 2 SBIR contracts. growth trend Phase 2 SBIR awards. intelligent systems advanced materials optical systems terahertz research groups. contracts Technology Development revenues similar level.
 2018
 Products licensing revenues $44,491,041 $21,949,689 $22,541,352. 7%
26,024,674 20,967,556 5,057,118.
,515,715,917,245 $27,598,470.


Deferred tax assets and liabilities at December 27, 2019 and December 28, 2018 consist of the following:
The deferred tax provision results from the effects of net changes during the year in deferred tax assets and liabilities arising from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company files income tax returns in the U.S. Federal and various state and local jurisdictions as well as the Canadian Federal and provincial districts. For Federal income tax purposes, the 2016 through 2019 tax years remain open for examination by the tax authorities under the normal three-year statute of limitations and the fact that we have not yet filed our tax return for 2019. For state tax purposes, the 2015 through 2019 tax years remain open for examination by the tax authorities under a four-year statute of limitations. The Company records interest and penalties, if any, in income tax expense.
At December 27, 2019, the Company had a valuation allowance of $907 which consisted of a full valuation allowance on the Company’s Canada net operating loss carryforward of $732, offset by a $267 reduction in deferred tax liabilities related to indefinite-lived intangible assets acquired in 2013, and a valuation allowance of $442 against the Company’s state net operating loss carryforwards. The valuation allowances on net operating loss carryforwards are necessary as they are not expected be be fully realizable in the future. The Company’s Canada net operating loss carryforward expires at various dates between fiscal 2036 and 2038 and the Company’s state net operating loss carryforwards expire at various dates between fiscal 2019 and 2038.
For financial reporting purposes, the Company’s foreign subsidiaries had operating income before income taxes of $18 for the fiscal year ended December 27, 2019 and net operating losses before income taxes of $3,223 and $1,520 for the fiscal years ended December 28, 2018 and December 29, 2017, respectively. The Company is permanently reinvested in the earnings of it’s foreign operations which are disregarded for US tax purposes. In addition, the US tax consequences and foreign withholding taxes on any future remittances are immaterial.
As of December 27, 2019 and December 28, 2018, the Company did not have any material uncertain tax positions.

                                     | December 27, 2019  | December 28, 2018
------------------------------------ | ------------------ | -----------------
Deferred tax assets:                 |                    |
Receivables and inventory            | $4,468             | $3,978
Accrued expenses                     | 170                | 1,835
Self-insurance reserves              | 1,957              | 2,050
Net operating loss carryforwards     | 1,393              | 1,749
Stock compensation                   | 1,894              | 1,670
Operating lease liabilities          | 37,740             | —
Other                                | 612                | 803
Total deferred tax assets            | 48,234             | 12,085
Deferred tax liabilities:            |                    |
Property & equipment                 | (5,218)            | (3,446)
Intangible assets                    | (15,192)           | (13,197)
Contingent earn-out liabilities      | (1,526)            | (3,179)
Prepaid expenses and other           | (1,379)            | (1,052)
Operating lease right-of-use assets  | (34,895)           | —
Total deferred tax liabilities       | (58,210)           | (20,874)
Valuation allowance                  | (907)              | (812)
Total net deferred tax liability     | $(10,883)          | $(9,601)

Deferred tax assets liabilities at December 27, 2019 28, 2018
 deferred tax changes. Company files income tax returns U. S. Federal state local jurisdictions Canadian Federal provincial districts. 2016 2019 tax years open three-year filed tax return 2019. state 2015 2019 tax years open four-year. Company records interest penalties income tax.
 December 27, 2019 Company valuation allowance $907 Canada net operating loss carryforward $732 $267 reduction deferred tax liabilities $442 against state net operating loss carryforwards. allowances necessary not. Canada net operating loss carryforward expires 2036 2038 state net operating loss carryforwards expire 2019 2038.
 foreign subsidiaries had operating income before taxes $18 for December 27, 2019 net losses before $3,223 $1,520 December 28, 2018 29, 2017. reinvested in earnings foreign operations disregarded for US tax.US tax foreign future remittances.
 27, tax positions.
 Deferred tax assets
 Receivables inventory $4,468 $3,978
 Accrued expenses
 Self-insurance reserves
 loss carryforwards 1,393
 Stock compensation 1,894
 Operating lease liabilities 37,740
 deferred tax assets 48,234 12,085
 Property equipment (5,218)
 Intangible assets (15,192)
 earn-out liabilities
 Prepaid expenses
 Operating lease right-use assets (34,895)
 deferred tax liabilities (58,210 (20
 Valuation allowance
 deferred tax,883)(9,601)


Note 35 Adoption of IFRS 16
Upon adoption of IFRS 16 on January 1, 2019, we recognized right-of-use assets of $2,257 million within property, plant and equipment, and lease liabilities of $2,304 million within debt, with an increase to our deficit of $19 million. These amounts were recognized in addition to assets under finance leases of $1,947 million and the corresponding finance lease liabilities of $2,097 million at December 31, 2018 under IAS 17. As a result, on January 1, 2019, our total right-of-use assets and lease liabilities amounted to $4,204 million and $4,401 million, respectively. The table below shows the impacts of adopting IFRS  16 on our January 1, 2019 consolidated statement of financial position.
BCE’s operating lease commitments at December 31, 2018 were $1,612 million. The difference between operating lease commitments at December 31, 2018 and lease liabilities of $2,304 million upon adoption of IFRS 16 at January 1, 2019, is due mainly to an increase of $1,122 million related to renewal options reasonably certain to be exercised, an increase of $112 million mainly related to non-monetary transactions and a decrease of ($542) million as a result of discounting applied to future lease payments, which was determined using a weighted average incremental borrowing rate of 3.49% at January 1, 2019.

                                     | DECEMBER 31, 2018 AS REPORTED | IFRS 16 IMPACTS | JANUARY 1, 2019 UPON ADOPTION OF IFRS 16
------------------------------------ | ----------------------------- | --------------- | ----------------------------------------
Prepaid expenses                     | 244                           | (55)            | 189
Other current assets                 | 329                           | 9               | 338
Property, plant and equipment        | 24,844                        | 2,257           | 27,101
Other non-current assets             | 847                           | 17              | 864
Trade payables and other liabilities | 3,941                         | (10)            | 3,931
Debt due within one year             | 4,645                         | 293             | 4,938
Long-term debt                       | 19,760                        | 2,011           | 21,771
Deferred tax liabilities             | 3,163                         | (7)             | 3,156
Other non-current liabilities        | 997                           | (39)            | 958
Deficit                              | (4,937)                       | (19)            | (4,956)
Non-controlling interest             | 326                           | (1)             | 325

IFRS 16
 2019 recognized right-of-use assets $2,257 million lease liabilities $2,304 million deficit $19 million. finance leases $1,947 million liabilities $2,097 million December 31, 2018 IAS 17. January 1 2019 total right-use assets lease liabilities $4,204 million $4,401 million. impacts IFRS 16 January 1 2019.
 operating lease commitments December 31, 2018 $1,612 million. difference liabilities $2,304 million increase $1,122 million renewal options increase $112 million non-monetary transactions decrease$542 million discounting future lease payments incremental borrowing rate 3. 49% January 1, 2019.
 16 IMPACTS JANUARY 1 2019
 Prepaid expenses 244
 current assets 329
 Property plant equipment 24,844
 non-current assets
 Trade payables liabilities
 Debt due one year 4,645
debt 19,760 21,771
 Deferred tax 3,163
 non-current liabilities 997
 Deficit (4,937)
 Non-controlling interest 326


The amount of our operating expenses increased by $43 million on a sequential basis, mainly driven by seasonality and salary dynamic.
On a year-over-year basis, our operating expenses increased by $42 million, mainly due to salary dynamic and increased spending on certain R&D programs, partially offset by favorable currency effects, net of hedging.
Fourth quarter 2019 R&D expenses were net of research tax credits in France and Italy, which amounted to $37 million, compared to $29 million in the third quarter of 2019 and $39 million in the fourth quarter of 2018.

                                             |                   | Three Months Ended |                          | % Variation |
-------------------------------------------- | ----------------- | ------------------ | ------------------------ | ----------- | --------------
                                             | December 31, 2019 | September 29, 2019 | December 31, 2018        | Sequential  | Year-Over-Year
                                             |                   |                    | (Unaudited, in millions) |             |
Selling, general and administrative expenses | $(285)            | $(267)             | $(285)                   | (6.3)%      | 0.4%
Research and development expenses            | (387)             | (362)              | (345)                    | (7.0)       | (12.3)
Total operating expenses                     | $(672)            | $(629)             | $(630)                   | (6.7)%      | (6.6)%
As percentage of net revenues                | (24.4)%           | (24.7)%            | (23.8)%                  | +30 bps     | -60 bps

operating expenses increased $43 million driven seasonality salary.
 year-over-year increased $42 million due salary R&D offset currency net hedging.
 Fourth quarter 2019 R&D expenses net research tax credits France Italy $37 million $29 million third quarter $39 million fourth quarter 2018.
 Three Months Ended % Variation
 December 31, 2019 September 29, December 31, 2018 Year-Over-Year
 (Unaudited millions
 Selling general administrative expenses $(285).
 Research development expenses (387).
 Total operating expenses $(672) $(629).
 percentage net revenues (24.


INCOME TAX EXPENSE
Below is a summary of the difference between income tax expense computed by applying the statutory income tax rate to income before income tax expense and the actual income tax expense for the year.
Our effective income tax rate this year was 25.8% compared to 26.9% for 2018. The effective income tax rate for 2019 was lower than the statutory tax rate primarily as a result of a reduction to the Alberta corporate income tax rate over a four-year period.

(In millions of dollars, except tax rates)           | Years ended December 31 |       |
---------------------------------------------------- | ----------------------- | ----- | -----
                                                     | 2019                    | 2018  | %Chg
Adjusted EBITDA 1                                    | 6,212                   | 5,983 | 4
Deduct (add):                                        |                         |       |
Depreciation and amortization                        | 2,488                   | 2,211 | 13
Gain on disposition of property, plant and equipment | -                       | (16)  | (100)
Restructuring, acquisition and other                 | 139                     | 210   | (34)
Finance costs                                        | 840                     | 793   | 6
Other income                                         | (10)                    | (32)  | (69)
Income tax expense                                   | 712                     | 758   | (6)
Net income                                           | 2,043                   | 2,059 | (1)

INCOME TAX EXPENSE
 difference tax expense statutory actual.
 effective income tax rate 25. 8% 26. 9% 2018. 2019 lower reduction Alberta corporate income tax rate four-year.
 millions Years ended December 31
 2019 2018
 Adjusted EBITDA 6,212 5,983 4
 Deduct
 Depreciation amortization 2,488 2,211
 Gain disposition property plant equipment
 Restructuring acquisition other 139
 Finance costs 840  793
 Other income
 Income tax expense 712 758
 Net income 2,043 2,059


15. AVERAGE SHARES OUTSTANDING
Our basic earnings per share calculation is computed based on the weighted-average number of common shares outstanding. Our diluted earnings per share calculation is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive common shares include nonvested stock awards and units, stock options, and non-management director stock equivalents. Performance share awards are included in the average diluted shares outstanding each period if the performance criteria have been met at the end of the respective periods.
The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding in each fiscal year (in thousands):

                                                              | 2019   | 2018   | 2017
------------------------------------------------------------- | ------ | ------ | ------
Weighted-average shares outstanding — basic                   | 25,823 | 28,499 | 30,630
Effect of potentially dilutive securities:                    |        |        |
Nonvested stock awards and units                              | 211    | 240    | 182
Stock options                                                 | 10     | 40     | 59
Performance share awards                                      | 24     | 28     | 43
Weighted-average shares outstanding — diluted                 | 26,068 | 28,807 | 30,914
Excluded from diluted weighted-average shares outstanding:    |        |        |
Antidilutive                                                  | 186    | 150    | 76
Performance conditions not satisfied at the end of the period | 65     | 44     | 53

. AVERAGE SHARES
 earnings per share weighted-average shares. diluted earnings adjusted additional shares dilutive shares. dilutive shares include nonvested stock awards stock options non-management director stock equivalents. Performance share awards included diluted shares criteria met.
 table reconciles-average shares diluted fiscal year
 2019 2018 2017
 Weighted-average shares 25,823 28,499  30,630
 potentially dilutive securities
 Nonvested stock awards units
 Stock options
 Performance share awards
-average shares diluted 26,068 28,807 30,914
 Excluded diluted
 Antidilutive
 Performance conditions not satisfied 65 44 53


The Company recorded amortization expense of $4.8 million, $1.5 million and $0.1 million for the years ended March 31, 2019, 2018 and 2017, respectively. Amortization relating to developed technology and capitalized software was recorded within cost of revenue and amortization of customer relationships and trade names was recorded within sales and marketing expenses.
Future estimated amortization expense of intangible assets as of March 31, 2019 is as follows:

           | Purchased Intangible Assets | Capitalized Software
---------- | --------------------------- | --------------------
2020       | $ 2,582                     | $ 3,522
2021       | 2,560                       | 2,790
2022       | 2,560                       | 1,420
2023       | 2,560                       | 528
Thereafter | 12,012                      | 89
Total      | $ 22,274                    | $ 8,349

Company amortization $4. 8 million $1. 5 million. 1 million 2019 2018 2017. technology software revenue customer relationships trade names sales marketing expenses.
 Future amortization intangible March 2019
 Intangible Assets Capitalized Software
 2020 2,582 3,522
 2021
 2022
 2023
 $ 22,274 $ 8,349


STOCK OPTIONS
The following is a summary of stock option activity during the years ended December 31, 2019 and 2018:

                                | Number of Options Outstanding | Weighted Average Exercise Price | Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value (thousands)
------------------------------- | ----------------------------- | ------------------------------- | --------------------------------------------- | -------------------------------------
Outstanding – December 31, 2017 | 2,341,340                     | $1.77                           | 5.78                                          | $1,087
Options granted                 | 376,667                       | 2.41                            |                                               |
Options exercised               | 224,400                       | 1.59                            |                                               |
Options forfeited               | 6,961                         | 1.42                            |                                               |
Outstanding – December 31, 2018 | 2,486,646                     | $1.89                           | 7.01                                          | $1,550
Options granted                 | 50,832                        | 3.02                            |                                               |
Options exercised               | -                             |                                 |                                               |
Options forfeited               | 181,281                       | 2.23                            |                                               |
Outstanding – December 31, 2019 | 2,356,197                     | $1.89                           | 5.93                                          | $628
Exercisable – December 31, 2019 | 1,843,468                     | $1.75                           | 5.34                                          | $624

OPTIONS
 summary stock option activity December 31, 2019 2018:
 Average Exercise Price Contractual Life Intrinsic Value
 December 31, 2017 2,341,340 $1. 77. $1,087
 376,667 2.
 224,400.
 forfeited.
 December 31, 2018 2,486,646 $1. 89 7. $1,550
 50,832 3.
 181,281 2. 23
 December 31, 2019 2,356,197 $1. 89.
 2019 1,843,468 $1. 75 5. 34 $624


Interest rate swaps
The Group has the following interest rate swaps in place as at the end of the reporting period:
Future interest rate swaps in place at the end of the reporting period have maturity dates ranging from 23 September 2019 to 23 September 2026 (2018: 24 September 2018 to 23 September 2026).
On 24 June 2019, the Group reset the interest rates associated with AUD denominated interest rate swaps. This resulted in a cash outflow of $22.9m which reduced the Group’s financial liability presented in note 9.8. The cumulative change in fair value of these hedging instruments is carried in a separate reserve in equity (cash flow hedge reserve of NSPT presented within non-controlling interest in the Group’s consolidated statement of changes in equity).
This balance will be recycled from the hedge reserve to finance costs in the statement of profit and loss in future reporting periods corresponding to when the underlying hedged item impacts profit or loss. For the year ended 30 June 2019, $0.1m has been recognised in finance costs relating to this item.

                                          | 2019    | 2018
----------------------------------------- | ------- | -------
                                          | $'000   | $'000
Interest rate swaps (AUD) at face value   |         |
Current interest rate swaps               | 400,000 | 270,000
Future interest rate swaps                | 275,000 | 400,000
Interest rate swaps (NZD) at face value   |         |
Current interest rate swaps               | 73,500  | 53,500
Future interest rate swaps                | 50,000  | 100,000
AUD equivalent of NZD interest rate swaps |         |
Current interest rate swaps               | 70,361  | 48,944
Future interest rate swaps                | 47,864  | 91,485

Interest swaps
 Group has swaps end reporting period
 Future swaps maturity dates 23 September 2019 to 23 September 2026.
 24 June 2019 Group reset interest rates AUD swaps. cash outflow $22. 9m reduced financial liability note 9. cumulative change fair value hedging instruments in separate reserve equity.
 balance recycled from hedge reserve to finance costs future reporting periods. year ended 30 June 2019 $0. 1m recognised in finance costs.
 Interest rate swaps (AUD)
 400,000 270,000
 Future 275,000 400,000
 Interest rate swaps (NZD)
 73,500 53,500
 Future 100,000
 AUD NZD interest swaps
 70,361 48,944
 Future 47,864 91,485


b) Liquefaction services revenue:
The Hilli is moored in close proximity to the Customer’s gasfields, providing liquefaction service capacity over the term of the LTA. Liquefaction services revenue recognized comprises the following amounts:
(1) The LTA bills at a base rate in periods when the oil price is $60 or less per barrel (included in "Liquefaction services revenue" in the consolidated statements of income), and at an increased rate when the oil price is greater than $60 per barrel (recognized as a derivative and included in "Realized and unrealized gain on oil derivative instrument" in the consolidated statements of income, excluded from revenue and from the transaction price).
(2) Customer billing during the commissioning period, prior to vessel acceptance and commencement of the contract term, of $33.8 million is considered an upfront payment for services. These amounts billed were deferred (included in "Other current liabilities" and "Other non-current liabilities" in the consolidated balance sheets) and recognized as part of "Liquefaction services revenue" in the consolidated statements of income evenly over the contract term.
(3) The Day 1 gain was established when the oil derivative instrument was initially recognized in December 2017 for $79.6 million (recognized in "Other current liabilities" and "Other non-current liabilities" in the consolidated balance sheets). This amount is amortized and recognized as part of "Liquefaction services revenue" in the consolidated statements of income evenly over the contract term.
We expect to recognize liquefaction services revenue related to the partially unsatisfied performance obligation at the reporting date evenly over the remaining contract term of less than eight years, including the components of transaction price described above.

                                                          | Year Ended December 31, |
--------------------------------------------------------- | ----------------------- | -------
(in thousands of $)                                       | 2019                    | 2018
Base tolling fee (1)                                      | 204,501                 | 119,677
Amortization of deferred commissioning period revenue (2) | 4,220                   | 2,467
Amortization of Day 1 gain (3)                            | 9,950                   | 5,817
Other                                                     | (575)                   | (336)
Total                                                     | 218,096                 | 127,625

Liquefaction services revenue
 Hilli moored Customer’s gasfields providing service capacity term LTA. services revenue
 LTA bills base rate oil price $60 or less per barrel services revenue statements increased rate greater than $60 per barrel excluded from revenue transaction price.
 Customer billing commissioning period $33. 8 million upfront payment services. amounts deferred recognized "Liquefaction services revenue term.
 Day 1 gain oil derivative instrument recognized December 2017 $79. 6 million. amortized recognized "Liquefaction services revenue term.
 recognize services revenue partially unsatisfied performance obligation reporting date remaining contract term less than eight years transaction price.
 Year Ended December 31,
 2019 2018
 Base tolling fee (1) 204,501 119,677
 Amortization deferred commissioning period revenue (2) 4,220 2,467
Day 1 9,950
 (575)
 218,096 127,625


Other income and expenses, net consisted of the following:
The Company receives significant public funding from governmental agencies in several jurisdictions. Public funding for research and development is recognized ratably as the related costs are incurred once the agreement with the respective governmental agency has been signed and all applicable conditions have been met.
R&D funding received in the year ended December 31, 2017 from the Nano2017 program with the French government is subject to a financial return in the year 2024 and depends on the future cumulative sales of a certain product group from 2019 to 2024. As such, an accrual amounting to $47 million was recorded as of December 31, 2019 compared to $42 million as of December 31, 2018.
Phase-out costs are costs incurred during the closing stage of a Company’s manufacturing facility. They are treated in the same manner as start-up costs. Start-up costs represent costs incurred in the start-up and testing of the Company’s new manufacturing facilities, before reaching the earlier of a minimum level of production or six months after the fabrication line’s quality certification.
Exchange gains and losses, net represent the portion of exchange rate changes on transactions denominated in currencies other than an entity’s functional currency and the changes in fair value of trading derivative instruments which are not designated as hedge and which have a cash flow effect related to operating transactions, as described in Note 27.
Patent costs include legal and attorney fees and payment for claims, patent pre-litigation consultancy and legal fees. They are reported net of settlements, if any, which primarily include reimbursements of prior patent litigation costs.
In 2019, gain on sale of businesses and non-current assets was related to the sale of one of our non-strategic assets. In 2018, it was related to the sale of one of the Company’s non-strategic investments while in 2017, it
was related to the sale of assets.

                                                  | Year ended December 31, 2019 | Year ended December 31, 2018 | Year ended December 31, 2017
------------------------------------------------- | ---------------------------- | ---------------------------- | ----------------------------
Research and development funding                  | 132                          | 52                           | 65
Phase-out and start-up costs                      | (38)                         | (1)                          | (8)
Exchange gain (loss), net                         | —                            | 4                            | 4
Patent costs                                      | (1)                          | (8)                          | (9)
Gain on sale of businesses and non-current assets | 7                            | 8                            | 4
Other, net                                        | 3                            | (2)                          | (1)
Total                                             | 103                          | 53                           | 55

income expenses net
 Company receives public funding from agencies jurisdictions. funding for research development recognized costs incurred agreement signed conditions met.
 R&D funding December 31, 2017 from Nano2017 program French government subject to return 2024 depends on future sales product group 2019 to 2024. $47 million December 31, 2019 to $42 million December 31, 2018.
 Phase-out costs closing stage manufacturing facility. start-up costs. before production quality certification.
 Exchange gains losses exchange rate changes transactions changes fair value of trading derivative instruments not.
 Patent costs include legal attorney fees claims pre-litigation consultancy legal fees. reported net of settlements reimbursements prior patent litigation costs.
 2019 gain on sale of businesses related to non-strategic. 2018 2017
 sale assets.
 2019 2018 2017
 Research development funding 132 52 65
 Phase-out start-up costs (38) (1) (8)
Exchange gain 4
 Patent costs
 Gain sale businesses non-current assets 8
 Other net 3
 Total 103 53


CASH FLOW ANALYSIS
(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. (2) For further details on the Corporation's cash flow attributable to discontinued operations, please consult the "Discontinued operations" section.
OPERATING ACTIVITIES Fiscal 2019 fourth-quarter cash flow from operating activities increased by 19.3% compared to the same period of the prior year mainly from: • higher adjusted EBITDA; • the decreases in income taxes paid and financial expense paid; and • the increase in changes in non-cash operating activities primarily due to changes in working capital.
INVESTING ACTIVITIES Fiscal 2019 fourth-quarter investing activities decreased by 25.8% compared to the same period of the prior year mainly due to the acquisition of spectrum licenses in the Canadian broadband services segment in the comparable period of the prior year combined with a decrease in acquisitions of property, plant and equipment.

Three months ended August 31,                                                                  | 2019      | 2018 (1)  | Change
---------------------------------------------------------------------------------------------- | --------- | --------- | -------
(in thousands of dollars, except percentages)                                                  | $         | $         | %
Cash flow from operating activities                                                            | 304,702   | 255,438   | 19.3
Cash flow from investing activities                                                            | (144,332) | (194,474) | (25.8)
Cash flow from financing activities                                                            | (50,198)  | (52,127)  | (3.7)
Effect of exchange rate changes on cash and cash equivalents denominated in a foreign currency | (1,405)   | (63)      | —
Net change in cash and cash equivalents from continuing operations                             | 108,767   | 8,774     | —
Net change in cash and cash equivalent from discontinued operations(2)                         | —         | 13,133    | (100.0)
Cash and cash equivalents, beginning of the period                                             | 447,737   | 62,818    | —
Cash and cash equivalents, end of the period                                                   | 556,504   | 84,725    | —

CASH FLOW ANALYSIS
 Fiscal 2018 restated IFRS 15 accounting policy results Cogeco Peer 1 discontinued operations. consult "Accounting policies "Discontinued operations sections. cash flow discontinued operations consult operations section.
 OPERATING ACTIVITIES Fiscal 2019 fourth-quarter cash flow increased 19. 3% higher adjusted EBITDA decreases income taxes financial expense non-cash activities working capital.
 INVESTING ACTIVITIES 2019 fourth-quarter activities decreased 25. 8% acquisition spectrum licenses broadband decrease acquisitions property plant equipment.
 Three months August 31, 2019 2018
 flow operating activities 304,702 255,438.
 investing activities (144,332) (194,474).
 financing activities (50,198) (52,127).
 Effect exchange rate changes cash equivalents foreign currency (1,405)
 change continuing operations 108,767 8,774
 discontinued.
 Cash equivalents 447,737 62,818
equivalents end 556,504 84,725


ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
MARKET FOR COMMON STOCK
The Company’s common stock trades on NYSE American under the trading symbol “DIT”. As of October 31, 2019 the closing price of our common stock on NYSE American was $73.00 and there were 565,942 common shares outstanding. As of that date, the Company had approximately 521 persons holding common shares beneficially of which approximately 121 are shareholders of record (including direct participants in the Depository Trust Company). The following table reflects the range of the high and low closing prices per share of the Company’s common stock reported by NYSE American for fiscal 2019 and 2018.

            | Fiscal 2018 |        | Fiscal 2019 |
----------- | ----------- | ------ | ----------- | -------
            | High        | Low    | High        | Low
4th Quarter | $100.00     | $73.41 | $89.00      | $ 81.10
3rd Quarter | 100.00      | 88.27  | 98.35       | 81.30
2nd Quarter | 101.51      | 88.01  | 99.87       | 84.10
1st Quarter | 99.75       | 77.92  | 97.85       | 86.61

5. MARKET REGISTRANT’S COMMON EQUITY MATTERS PURCHASES.
 Company’s common stock trades NYSE American symbol “DIT”. October 31, 2019 closing price NYSE $73. 00 565,942 shares outstanding. 521 persons common shares 121 shareholders record participants Depository Trust Company. table reflects high low closing prices per share common stock NYSE American fiscal 2019 2018.
 4th Quarter $100. $73. 41 $89. 81.
 3rd Quarter 100. 88. 98. 81.
 2nd Quarter 101. 51 88. 99.
 1st Quarter 99. 77. 97. 86.


ITEM 6. SELECTED FINANCIAL DATA
The following selected financial data has been derived from our consolidated financial statements (in thousands, except per share data). This data should be read together with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, and the consolidated financial statements and related notes included elsewhere in this annual report. The financial information below is not necessarily indicative of the results of future operations. Future results could differ materially from historical results due to many factors, including those discussed in Item 1A, Risk Factors.
(1) The consolidated balance sheet and statement of operations for the year ended December 31, 2019, includes the acquisition of Speedpay as discussed in Note 3, Acquisition, to our Notes to Consolidated Financial Statements in Part IV, Item 15 of this Form 10-K.
(2) The consolidated balance sheet and statement of operations for the year ended December 31, 2019, reflects the application of Accounting Standards Update (“ASU”) 2016-02, Leases (codified as “ASC 842”) as discussed in Note 14, Leases, to our Notes to Consolidated Financial Statements.
(3) The consolidated balance sheet and statement of operations for the year ended December 31, 2018, reflects the adoption of ASU 2014-09, Revenue from Contracts with Customers (codified as “ASC 606”), as discussed in Note 2, Revenue, to our Notes to Consolidated Financial Statements, including a cumulative adjustment of $244.0 million to retained earnings.
(4) The consolidated statement of operations for the year ended December 31, 2017, reflects the Baldwin Hackett & Meeks, Inc. (“BHMI”) judgment. We recorded $46.7 million in general and administrative expense and $1.4 million in interest expense, as discussed in Note 15, Commitments and Contingencies, to our Notes to Consolidated Financial Statements.
(5) The consolidated balance sheet and statement of operations for the year ended December 31, 2016, reflects the sale of Community Financial Services assets and liabilities.
(6) During the year ended December 31, 2019, we borrowed $500.0 million in the form of a new senior secured term loan and drew $250.0 million on the available Revolving Credit Facility to fund the acquisition of Speedpay. During the year ended December 31, 2018, we issued $400.0 million in senior notes due August 15, 2026. We used the net proceeds of these senior notes to redeem our outstanding $300.0 million senior notes due 2020, which we originally entered in to during the year ended December 31, 2013. See Note 5, Debt, to our Notes to Consolidated Financial Statements for additional information.

                             |             |           | December 31, |           |
---------------------------- | ----------- | --------- | ------------ | --------- | ---------
                             | 2019 (1)(2) | 2018 (3)  | 2017         | 2016 (5)  | 2015
Balance Sheet Data:          |             |           |              |           |
Working capital              | $308,426    | $269,857  | $100,039     | $31,625   | $(2,360)
Total assets                 | 3,257,534   | 2,122,455 | 1,861,639    | 1,902,295 | 1,975,788
Current portion of debt (6)  | 34,148      | 20,767    | 17,786       | 90,323    | 89,710
Debt (long-term portion) (6) | 1,350,592   | 658,602   | 668,356      | 656,063   | 845,639
Stockholders’ equity         | 1,129,968   | 1,048,231 | 764,597      | 754,917   | 654,400

ITEM 6. SELECTED FINANCIAL DATA
 financial data derived from consolidated financial statements. read with Item 7 Discussion Analysis Financial Condition Results consolidated financial statements notes annual report. financial information not indicative future operations. results differ historical Risk Factors.
 consolidated balance sheet December 31, 2019 includes acquisition Speedpay Note 3 Acquisition Part IV Item 15 Form 10-K.
 Accounting Standards Update 2016-02, Leases.
 December 31, 2018 ASU 2014-09 Revenue Contracts Customers adjustment $244. 0 million retained earnings.
 statement December 31, 2017 reflects Baldwin Hackett & Meeks, Inc. judgment. recorded $46. 7 million general administrative expense $1. 4 million interest expense Note 15.
 balance December 31, 2016, reflects sale Community Financial Services assets liabilities.
 year December 31, 2019 borrowed $500. 0 million new senior secured term loan drew $250.Revolving Credit Facility acquisition Speedpay. 2018 issued $400. million senior notes due August 15 2026. proceeds redeem $300. million 2020 2013. Note 5 Financial Statements.
 2019 2018 2017 2016 2015
 Balance Sheet
 Working capital $308,426 $269,857 $100,039 $31,625,360
 assets 3,257,534 2,122,455 1,861,639 1,902,295 1,975,788
 debt 34,148 20,767 90,323
 1,350,592,602 668,356 656,063
 Stockholders’ equity 1,129,968 1,048,231 764,597 754,917


ADJUSTED NET DEBT AND DEBT LEVERAGE RATIO
We use adjusted net debt and debt leverage ratio to conduct valuation-related analysis and make capital structure-related decisions. Adjusted net debt includes long-term debt, net debt derivative assets or liabilities, short-term borrowings, and cash and cash equivalents.
1 Includes current and long-term portion of long-term debt before deferred transaction costs and discounts. See “Reconciliation of adjusted net debt” in “Non-GAAP Measures and Related Performance Measures” for the calculation of this amount. 2 For purposes of calculating adjusted net debt and debt leverage ratio, we believe including debt derivatives valued without adjustment for credit risk is commonly used to evaluate debt leverage and for market valuation and transactional purposes.
3 See “Accounting Policies” for more information. 4 Adjusted net debt and adjusted EBITDA are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See “Non-GAAP Measures and Related Performance Measures” for information about these measures, including how we calculate themand the debt leverage ratio inwhich they are used.
As a result of our adoption of IFRS 16 effective January 1, 2019, we
have modified our definition of adjusted net debt such that it now includes the total of “current portion of lease liabilities” and “lease liabilities”. We believe adding total lease liabilities to adjusted net debt is appropriate as they reflect payments to which we are contractually committed and the related payments have been removed from our calculation of adjusted EBITDA due to the accounting change.
In addition, as at December 31, 2019, we held $1,831 million of
marketable securities in publicly traded companies (2018 – $1,051 million). Our adjusted net debt increased by $3,379 million from December 31, 2018 as a result of: • the inclusion of lease liabilities in the calculation, which had a balance of $1,725 million at year-end, as discussed above; and • a net increase in our outstanding long-term debt, in part due to the 600 MHz spectrum licences we acquired for $1,731 million this year; partially offset by • an increase in our net cash position.
See “Overview of Financial Position” for more information.

                                                                           | As at December 31 | As at January 1 | As at December 31
-------------------------------------------------------------------------- | ----------------- | --------------- | -----------------
(In millions of dollars, except ratios)                                    | 2019              | 2019            | 2018
Long-term debt 1                                                           | 16,130            | 14,404          | 14,404
Net debt derivative assets valued without any adjustment for credit risk 2 | (1,414)           | (1,448)         | (1,448)
Short-term borrowings                                                      | 2,238             | 2,255           | 2,255
Lease liabilities 3                                                        | 1,725             | 1,545           | –
Cash and cash equivalents                                                  | (494)             | (405)           | (405)
Adjusted net debt 4                                                        | 18,185            | 16,351          | 14,806
Divided by: trailing 12-month adjusted EBITDA 4                            | 6,212             | 6,157           | 5,983
Debt leverage ratio 4                                                      | 2.9               | 2.7             | 2.5

ADJUSTED DEBT LEVERAGE RATIO
 use debt valuation analysis capital structure decisions. includes long-term debt derivative assets short-term borrowings cash equivalents.
 Includes current long-term before deferred transaction costs discounts. See “Reconciliation adjusted net Measures Performance calculation. debt derivatives without adjustment credit risk debt leverage market valuation transactional purposes.
 “Accounting Policies”. Adjusted net debt EBITDA non-GAAP measures not substitutes alternatives GAAP. not defined IFRS.-GAAP Measures Performance Measures”.
 adoption IFRS 16 January 1 2019
 modified definition adjusted net debt includes lease. adding lease liabilities payments committed removed calculation EBITDA accounting change.
 December 31, 2019 held $1,831 million
 marketable securities publicly traded companies (2018 – $1,051 million.adjusted net debt increased $3,379 million December 31, 2018 lease liabilities $1,725 million increase long-term debt due 600 MHz spectrum licences $1,731 million offset increase net cash position.
 “Overview Financial.
 31 January 1
 millions 2019
 Long-term debt 16,130 14,404
 adjustment credit risk (1,414)
 Short-term borrowings 2,238 2,255
 Lease liabilities 1,725 1,545
 Cash equivalents (494)
 Adjusted net debt 18,185 16,351 14,806
 Divided 12-month adjusted EBITDA 6,212 6,157 5,983
 Debt leverage ratio.


4. Earnings per Share
Reconciliations of the weighted average shares outstanding for basic and diluted Earnings per Share for the years ended April 30, 2019 and 2018, respectively, were as follows (in thousands):
** For the years ended April 30, 2019 and 2018, dilutive securities are excluded since the inclusion of such shares would be antidilutive due to the net loss for the period. The exercisable shares excluded for 2019 and 2018 are 1,216,000 and 1,259,500, respectively. The effect of dilutive securities for 2019 and 2018 would have been 242,874 and 127,536, respectively.

For the years ended April 30,                   |           |
----------------------------------------------- | --------- | ---------
                                                | 2019      | 2018
Basic EPS Shares outstanding (weighted average) | 8,916,250 | 8,841,166
Effect of Dilutive Securities                   | **        | **
Diluted EPS Shares outstanding                  | 9,159,124 | 8,841,166

. Earnings per Share
 Reconciliations shares basic diluted years April 30 2019 2018
 dilutive securities excluded antidilutive net loss. exercisable shares excluded 1,216,000 1,259,500. effect dilutive securities 242,874 127,536.
 years April 30
 2018
 Basic EPS Shares,250 8,841,166
 Effect Dilutive Securities
 Diluted EPS Shares 9,159,124 8,841,166


Receivables (payables): The balances with Golar Partners and subsidiaries as of December 31, 2019 and 2018 consisted of the following:
(iii) Interest income on short-term loan, balances due(to)/from Golar Partners and its subsidiaries - Receivables and payables with Golar Partners and its subsidiaries comprise primarily of unpaid management fees and expenses for management, advisory and administrative services, dividends in respect of the Hilli Common Units and other related party arrangements including the Hilli Disposal. In addition, certain receivables and payables arise when we pay an invoice on behalf of a related party and vice versa. Receivables and payables are generally settled quarterly in arrears. Balances owing to or due from Golar Partners and its subsidiaries are unsecured, interest-free and intended to be settled in the ordinary course of business. In November 2019, we loaned $15.0 million to Golar Partners, with interest of LIBOR plus 5.0%. The loan was fully repaid, including interest of $0.1 million, in December 2019.
(vii) Methane Princess lease security deposit movements - This represents net advances from Golar Partners since its IPO, which correspond with the net release of funds from the security deposits held relating to a lease for the Methane Princess. This is in connection with the Methane Princess tax lease indemnity provided to Golar Partners under the Omnibus Agreement. Accordingly, these amounts will be settled as part of the eventual termination of the Methane Princess lease.

(in thousands of $)                                              | 2019    | 2018
---------------------------------------------------------------- | ------- | -------
Balances due (to)/from Golar Partners and its subsidiaries (iii) | (2,708) | 4,091
Methane Princess lease security deposit movements (vii)          | (2,253) | (2,835)
Total                                                            | (4,961) | 1,256

Receivables balances with Golar Partners subsidiaries December 31, 2019 2018
 Interest income short-term loan balances due Receivables unpaid management fees expenses services dividends Hilli Common Units arrangements Disposal. invoice. settled quarterly. Balances unsecured interest-free settled ordinary business. November 2019 loaned $15. 0 million Golar Partners interest LIBOR plus 5. 0%. repaid $0. 1 million December 2019.
 Methane Princess lease security deposit movements advances Golar Partners release funds security deposits. tax lease indemnity Omnibus Agreement. settled termination Methane Princess lease.
 2019
 Balances due Golar Partners subsidiaries (2,708 4,091
 Methane Princess lease security deposit movements (2,253) (2,835)
 Total (4,961) 1,256


With the highest-performance networks and unmatched new services and content, Bell is building a better communications experience at home, in the workplace and on the go.
And customers are responding: In 2019, Bell welcomed the industry’s highest number of new subscribers across the growth services of retail Internet, IPTV and wireless and diligently managed the decline in traditional home phone and other legacy services.
The speed and quality of Canada’s Best National Mobile Network drove unparalleled gains in both postpaid and prepaid wireless, Internet growth accelerated with the fastest consumer home Internet service available, while Fibe TV and Alt TV are winning customers over with leading product and programing innovations.
(1) Excludes wholesale subscribers.
(2) Excludes business telephone services.

BCE retail subscribers                                                 |       |       |
---------------------------------------------------------------------- | ----- | ----- | ------
(millions)                                                             | 2019  | 2018  | Change
Wireless                                                               | 9.96  | 9.61  | +3.6%
High-speed Internet(1)                                                 | 3.56  | 3.41  | +4.3%
Television(1)                                                          | 2.77  | 2.77  | +0.2%
Total growth services, subscribers: retail Internet, IPTV and wireless | 16.29 | 15.79 | +3.2%
Local residential telephone services(1)(2)                             | 2.70  | 2.96  | (8.9%)
Total(2)                                                               | 18.98 | 18.75 | +1.3%

highest-performance networks new services content Bell better communications experience home workplace.
 customers responding 2019 Bell welcomed highest new subscribers retail Internet IPTV wireless managed decline traditional home phone services.
 speed quality Best National Mobile Network gains postpaid prepaid wireless Internet growth accelerated fastest consumer home Internet service Fibe TV Alt TV customers product programing innovations.
 wholesale subscribers.
 business telephone services.
 retail subscribers
 9. 96. 6%
 High-speed. 56. 3%
. 77. 2%
 growth retail Internet IPTV wireless. 79
 Local residential telephone.
.


WebLife Balance, Inc.
On November 30, 2017 (the “WebLife Acquisition Date”), pursuant to the terms of a merger agreement, the Company acquired all shares of WebLife Balance, Inc. (“WebLife”), a browser isolation offerings vendor, to extend its advanced threat protection capabilities into personal email, while preserving the privacy of its users.
The Company has estimated fair values of acquired tangible assets, intangible assets and liabilities at the WebLife Acquisition Date. The results of operations and the fair values of the acquired assets and liabilities assumed have been included in the accompanying consolidated financial statements since the WebLife Acquisition Date.
At the WebLife Acquisition Date, the consideration transferred was $48,765, net of cash acquired of $278.
Per the terms of the merger agreement, unvested stock options held by WebLife employees were canceled and exchanged for the Company’s unvested awards. The fair value of $333 of these unvested options was attributed to pre-combination service and included in consideration transferred. The fair value of $1,468 was allocated to post-combination services. The unvested awards are subject to the recipient’s continued service with the Company, and $1,468 is recognized ratably as stock-based compensation expense over the required remaining service period. Also, as part of the merger agreement, 107 shares of the Company’s common stock were deferred for certain key employees with the total fair value of $9,652 (see Note 11 “Equity Award Plans”), which was not included in the purchase price. The deferred shares are subject to forfeiture if employment terminates prior to the lapse of the restrictions, and their fair value is expensed as stock-based compensation expense over the remaining period.
Proofpoint, Inc. Notes to Consolidated Financial Statements (Continued) (dollars and share amounts in thousands, except per share amounts)
The following table summarizes the fair values of tangible assets acquired, liabilities assumed, intangible assets and goodwill:

                            |            | Estimated
--------------------------- | ---------- | -----------
                            |            | Useful Life
                            | Fair value | (in years)
Current assets              | $534       | N/A
Fixed assets                | 23         | N/A
Liabilities                 | (88)       | N/A
Deferred revenue            | (700)      | N/A
Customer relationships      | 600        | 5
Core/developed technology   | 16,600     | 5
Deferred tax liability, net | (4,440)    | N/A
Goodwill                    | 36,514     | Indefinite
                            | $49,043    |

WebLife Balance, Inc.
 November 30, 2017 Acquisition acquired shares WebLife Balance. browser vendor threat protection personal email privacy.
 estimated values acquired assets liabilities Acquisition Date. results operations included consolidated financial statements since Acquisition Date.
 consideration transferred $48,765 cash acquired $278.
 unvested stock options canceled exchanged for unvested awards. fair value $333 pre-combination service. fair value $1,468 post-combination services. awards subject continued service $1,468 stock-based compensation expense. 107 shares common stock deferred for key employees fair value $9,652 not included purchase price. deferred shares subject to forfeiture employment terminates fair value expensed stock-based compensation expense.
 Proofpoint, Inc. Consolidated Financial Statements share amounts thousands
 table summarizes fair values assets acquired liabilities assumed intangible assets goodwill
Life
 value
 assets $534
 Fixed 23
 Liabilities
 Deferred revenue
 Customer relationships
 technology 16,600
 Deferred tax (4,440)
 Goodwill 36,514 Indefinite
 $49,043


Purchases of Equity Securities by the Issuer and Affiliated Purchasers
The following table contains information with respect to purchases made by or on behalf of CalAmp or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act), of our common stock during the following months of our fourth quarter ended February 28, 2019:
(1) Average price paid per share for shares purchased as part of our share repurchase program (includes brokerage commissions).
(2) On December 10, 2018, we announced that our Board of Directors authorized a new share repurchase program under which we may repurchase up to $20.0 million of our outstanding common stock over the next 12 months. As of February 28, 2019, $10.0 million of the $20.0 million had been utilized. Our share repurchase program does not obligate us to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.

                               | Total Number of Shares Purchased | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that may be Purchased Under the Plans or Programs (2)
------------------------------ | -------------------------------- | -------------------------------- | -------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------
December 1 - December 31, 2018 | 75,000                           | $12.96                           | 75,000                                                                           | $19,028,173
January 1 - January 31, 2019   | 524,577                          | $14.00                           | 524,577                                                                          | $11,685,543
February 1 - February 28, 2019 | 116,042                          | $14.53                           | 116,042                                                                          | $10,000,013
Total                          | 715,619                          | $13.97                           | 715,619                                                                          | $10,000,013

Purchases Equity Securities Issuer Affiliated Purchasers
 table purchases CalAmp Rule 10b-18 Exchange common stock fourth quarter February 28, 2019
 Average price share repurchase program brokerage commissions.
 December 10, 2018 Board authorized repurchase program $20. 0 million common stock 12 months. February 28, 2019 $10. 0 million $20. million utilized. program obligate. open market transactions Rule 10b5-1 Exchange Act.
 Total Number Shares Purchased Average Price Paid Share Publicly Announced Plans Programs Approximate Dollar Value Shares
 December 1 31, 2018 75,000 $12. $19,028,173
 January 1 31, 2019 524,577 $14. $11,685,543
 February 1 - 28, 2019 116,042. $10,000,013
 715,619.


Disaggregation of revenue
The following table provides information about disaggregated revenue by primary geographical markets:
The Company derived over 90%, and approximately 88% and 84% of subscription revenues from RingCentral Office product for the years ended December 31, 2019, 2018 and 2017, respectively

                             |      | Year ended December 31, |
---------------------------- | ---- | ----------------------- | ----
                             | 2019 | 2018                    | 2017
Primary geographical markets |      |                         |
North America                | 93%  | 95%                     | 96%
Others                       | 7%   | 5%                      | 4%
Total revenues               | 100% | 100%                    | 100%

Disaggregation revenue
 table disaggregated revenue markets
 Company derived 90% 88% subscription revenues RingCentral Office product years December 2019 2018 2017
 markets
 North America 93% 95%
 Others 7% 5% 4%
 Total revenues 100%


Recently Adopted Accounting Pronouncements
On April 1, 2018, the Company adopted ASU 2014-09-Revenue from Contracts with Customers (ASC 606) and all related amendments (“New Revenue Standard”) using the modified retrospective method. The Company has applied the new revenue standard to all contracts that were entered into after adoption and to all contracts that were open as of the initial date of adoption. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of the new standard impacts the Company's net sales on an ongoing basis depending on the relative amount of revenue sold through its distributors, the change in inventory held by its distributors, and the changes in price concessions granted to its distributors. Previously, the Company deferred revenue and cost of sales on shipments to distributors until the distributor sold the product to their end customer. As required by the new revenue standard, the Company no longer defers revenue and cost of sales, but rather, estimates the effects of returns and allowances provided to distributors and records revenue at the time of sale to the distributor. Sales to non-distributor customers, under both the previous and new revenue standards, are generally recognized upon the Company’s shipment of the product. The cumulative effect of the changes made to the consolidated April 1, 2018 balance sheet for the adoption of the new revenue standard is summarized in the table of opening balance sheet adjustments below. In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the consolidated income statement and balance sheet for the period ended March 31, 2019 was as follows (in millions):
The significant changes in the financial statements noted in the table above are primarily due to the transition from sellthrough revenue recognition to sell-in revenue recognition as required by the New Revenue Standard, which eliminated the balance of deferred income on shipments to distributors, significantly reduced accounts receivable, and significantly increased retained earnings. Prior to the acquisition of Microsemi, Microsemi already recognized revenue on a sell-in basis, so the impact of the adoption of the New Revenue Standard was primarily driven by Microchip's historical business excluding Microsemi.

                                      |             | For the year ended March 31, 2019                 |
------------------------------------- | ----------- | ------------------------------------------------- | ---------------------------------
Income Statement                      | As reported | Balances without adoption of New Revenue Standard | Effect of Change Higher / (Lower)
Net sales                             | $5,349.5    | $5,380.1                                          | $(30.6)
Cost of sales                         | $2,418.2    | $2,434.0                                          | $(15.8)
Gross profit                          | $2,931.3    | $2,946.1                                          | $(14.8)
Income before income taxes            | $204.5      | $219.3                                            | $(14.8)
Income tax (benefit) provision        | $(151.4)    | $(149.0)                                          | $(2.4)
Net income from continuing operations | $355.9      | $368.3                                            | $(12.4)

Adopted Accounting Pronouncements
 April 1, 2018 Company adopted ASU 2014-09-Revenue from Contracts Customers (ASC 606) amendments (“New Revenue Standard”) modified retrospective method. applied standard contracts after adoption open. recognized cumulative effect adjustment opening balance retained earnings. comparative information not restated reported under accounting standards. adoption standard impacts net sales revenue sold inventory price concessions. deferred revenue cost shipments distributors until. defers estimates returns allowances records revenue sale. Sales to non-distributor customers recognized upon shipment product. cumulative effect changes consolidated April 1, 2018 balance sheet new revenue standard summarized in table opening balance sheet adjustments. impact adoption consolidated income statement balance sheet period ended March 31, 2019 (in
 changes financial statements due transition from sellthrough to sell-in revenue eliminated deferred income shipments distributors reduced accounts receivable increased retained earnings.Microsemi recognized revenue New Revenue Standard driven Microchip business Microsemi.
 year March 31, 2019
 Income Statement Balances without New Revenue Standard Effect Change
 Net sales $5,349. $5,380.
 Cost sales $2,418. $2,434.
 Gross profit $2,931. $2,946.
 Income taxes $204. $219.
 Income tax provision $(151. $(149.
 Net income operations $355. $368. $(12.