B. Remuneration to other directors:
* Relinquished the position of Independent Director w.e.f. July 10, 2018.
** Relinquished the position of Independent Director w.e.f. September 28, 2018.
*** Appointed as Additional and Independent Director w.e.f. December 18, 2018.
**** Appointed as an Additional and Independent Director w.e.f. January 10, 2019.
@ As a policy, N Chandrasekaran, Chairman, has abstained from receiving commission from the Company.
@@ In line with the internal guidelines of the Company, no payment is made towards commission to the Non-Executive Directors of the Company, who are in full time employment with any other Tata company.

                                                                                |                                                      |            |                        | (` lakh)
----------------------------------------------------------------------------------------------- | ---------------------------------------------------- | ---------- | ---------------------- | ------------
Particulars of Remuneration                                                                     | Sitting Fees for attending board/ committee meetings | Commission | Others, please specify | Total Amount
1. Independent Directors                                                                        |                                                      |            |                        |
Aman Mehta                                                                                | 4.80                                                 | 315.00     | -                      | 319.80
V Thyagarajan*                                                                                | 3.00                                                 | 100.00     | -                      | 103.00
Prof Clayton M Christensen**                                                                    | 0.30                                                 | 75.00      | -                      | 75.30
Dr Ron Sommer                                                                                | 5.10                                                 | 220.00     | -                      | 225.10
O P Bhatt                                                                                | 7.50                                                 | 215.00     | -                      | 222.50
Dr Pradeep Kumar Khosla                                                                         | 2.10                                                 | 150.00     | -                      | 152.10
Hanne Sorensen***                                                                               | 0.60                                                 | 50.00      | -                      | 50.60
Keki Mistry***                                                                                | 0.60                                                 | 50.00      | -                      | 50.60
Don Callahan****                                                                                | 0.30                                                 | 35.00      | -                      | 35.30
Total (1)                                                                                | 24.30                                                | 1,210.00   | -                      | 1,234.30
2. Other Non-Executive Directors                                                                |                                                      |            |                        |
N Chandrasekaran@                                                                               | 3.60                                                 | -          | -                      | 3.60
Aarthi Subramanian@@                                                                            | 5.70                                                 | -          | -                      | 5.70
Total (2)                                                                                | 9.30                                                 | -          | -                      | 9.30
Total (B)=(1+2)                                                                                | 33.60                                                | 1,210.00   | -                      | 1,243.60
Total Managerial Remuneration                                                                   |                                                      |            |                        |
Ceiling as per the Act (@1% of profits calculated under Section 198 of the Companies Act, 2013) |                                                      | 40,434.81  |                        |

. Remuneration directors
 Relinquished Independent Director. July 10, 2018.
 Relinquished Independent Director. September 28, 2018.
 Appointed Additional Independent Director. December 18, 2018.
 Additional Independent Director. January 10, 2019.
 Chandrasekaran Chairman abstained receiving commission Company.
 no payment commission Non-Executive Directors full time employment Tata company.
 Remuneration Sitting Fees attending board committee meetings specify Total Amount
. Independent Directors
 Aman Mehta 4. 315. 319.
 Thyagarajan 3. 100. 103.
 Clayton M. 75.
 Ron Sommer 5. 220. 225.
 7. 215. 222.
 Pradeep Kumar Khosla 2. 150. 152.
 Hanne Sorensen***. 50.
 Mistry***. 50.
 Don Callahan****. 35.
 24. 1,210. 1,234.
.Non-Executive Directors
 Chandrasekaran 3. 60.
 Aarthi 5. 70.
 9. 30.
=(1+2 33. 60 1,210. 1,243. 60
 Managerial Remuneration
 (@1% profits Section 198 Companies Act 2013) 40,434. 81


Net sales
Net sales of $1.2 billion for fiscal year 2018 increased 58.5% from $757.3 million for fiscal year 2017. Solid Capacitor and Film and Electrolytic sales increased by $196.1 million and $19.7 million, respectively and net sales for MSA, our new reportable segment in fiscal year 2018, was $227.0 million. Prior to the acquisition of TOKIN on April 19, 2017, the Company did not have any MSA sales.
The increase in Solid Capacitors net sales was primarily driven by the addition of net sales of $133.8 million resulting from the TOKIN acquisition and an increase in net sales to the legacy products distributor channel of $81.7 million. To a lesser degree, an increase in legacy Ceramic products' net sales of $6.0 million in the EMS channel across all regions and $10.2 million in the OEM channel in the EMEA and APAC regions also contributed to the increase in Solid Capacitors net sales. These increases were partially offset by a $28.0 million decrease in net sales in the OEM channel for legacy Tantalum products across all regions. In addition, Solid Capacitors net sales was favorably impacted by $6.1 million from foreign currency exchange due to the change in the value of the Euro compared to the U.S. dollar.
The increase in Film and Electrolytic net sales was driven by an increase in net sales in the distributor channel across the APAC and EMEA regions of $13.7 million, and to a lesser degree, a $3.3 million increase in net sales in the OEM channel of the EMEA region and a $4.2 million increase in the EMS channel across the Americas, EMEA, and APAC regions. These increases were partially offset by a decrease in net sales of $1.2 million in the OEM channel across the Americas, APAC, and JPKO regions. In addition, there was a favorable impact of $7.6 million from foreign currency exchange primarily due to the change in the value of the Euro compared to the U.S. dollar.
In fiscal years 2018 and 2017, net sales by region were as follows (dollars in thousands):

         | Fiscal Year 2018 |            | Fiscal Year 2017 |
-------- | ---------------- | ---------- | ---------------- | ----------
         | Net Sales        | % of Total | Net Sales        | % of Total
APAC     | $479,987         | 40.0%      | $288,764         | 38.1%
EMEA     | 277,898          | 23.1%      | 237,437          | 31.4%
Americas | 259,105          | 21.6%      | 224,056          | 29.6%
JPKO     | 183,191          | 15.3%      | 7,081            | 0.9%
Total    | $ 1,200,181      |            | $ 757,338        |

 $1. 2 billion 2018 increased. 5% from $757. 3 million 2017. Solid Capacitor Film Electrolytic increased $196. 1 million $19. 7 million MSA $227. 0 million. acquisition TOKIN 2017 MSA sales.
 increase Solid Capacitors driven $133. 8 million TOKIN acquisition products distributor channel $81. 7 million. increase Ceramic products sales $6. 0 million EMS channel $10. 2 million OEM EMEA APAC. offset $28. 0 million decrease OEM Tantalum products. impacted $6. 1 million foreign currency exchange Euro. dollar.
 increase Film Electrolytic sales driven distributor APAC EMEA $13. 7 million $3. 3 million increase OEM EMEA $4. 2 million increase EMS channel Americas EMEA APAC. offset decrease sales $1. 2 million OEM channel Americas APAC JPKO regions. impact $7. 6 million foreign currency exchange Euro.
 2018 2017 net sales region
 2018 2017

 Net Sales %
 APAC $479,987 40. $288,764 38.
 EMEA 277,898 23. 237,437.
 Americas 259,105 21. 224,056 29.
 JPKO 183,191 15.
 1,200,181 757,338


ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
The table below summarizes the restructuring charges for the years ended:

                                        | 2019   | 2018   | Cumulative Cost Through December 31, 2019
--------------------------------------- | ------ | ------ | -----------------------------------------
Severance and related charges           | $3,041 | $4,239 | $7,280
Facility relocation and closure charges | 1,996  | —      | 1,996
Total restructuring charges             | $5,038 | $4,239 | $9,277

ADVANCED ENERGY INDUSTRIES. FINANCIAL STATEMENTS share
 table restructuring charges
 31, 2019
 Severance charges $3,041 $4,239 $7,280
 Facility relocation closure 1,996
 restructuring $5,038 $4,239 $9,277


14. Net Loss Per Share
Basic net loss per common share for the years ended December 31, 2019 and 2018 was computed by dividing the net loss attributable to Neonode Inc. for the relevant period by the weighted average number of shares of common stock outstanding during the year. Diluted loss per common share is computed by dividing net loss attributable to Neonode Inc. for the relevant period by the weighted average number of shares of common stock and common stock equivalents outstanding during the year.
Potential common stock equivalents of approximately 0 and 350,000 outstanding stock warrants, 0 and 11,000 shares issuable upon conversion of preferred stock and 0 and 0 stock options are excluded from the diluted earnings per share calculation for the years ended December 31, 2019 and 2018, respectively, due to their anti-dilutive effect.

(In thousands, except per share amounts)             | Years ended December 31, |
---------------------------------------------------- | ------------------------ | --------
                                                     | 2019                     | 2018
BASIC AND DILUTED                                    |                          |
Weighted average number of common shares outstanding | 8,844                    | 5,884
Net loss attributable to Neonode Inc.                | $(5,298)                 | $(3,060)
Net loss per share basic and diluted                 | $(0.60)                  | $(0.52)

. Net Loss Per Share
 December 31, 2019 2018 computed loss Neonode Inc. shares common stock. Diluted loss Neonode Inc. shares common equivalents.
 0 350,000 stock warrants 11,000 shares preferred stock stock options excluded diluted earnings per share December 31, 2019 2018 anti-dilutive effect.
 Years December
 2019 2018
 DILUTED
 Weighted average shares 8,844 5,884
 Net loss Neonode Inc. $(5,298) $(3,060)
 Net loss per share basic diluted $(0. $.


ADVANCED ENERGY INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued)
(in thousands, except per share amounts)
In 2019, Advanced Energy finalized the assessment of fair value for the assets acquired and liabilities assumed related to the LumaSense acquisition. The following table summarizes the fair values of the assets acquired and liabilities assumed from the LumaSense acquisition, including measurement period adjustments.
During 2019, we adjusted the estimated values of the assets acquired and liabilities assumed based upon the final valuation report. These adjustments included additional liabilities, changes to deferred taxes and changes in the allocation of excess purchase price between goodwill and intangibles.

                                        | Preliminary: December 31, 2018 | Measurement Period Adjustments | Adjusted: December 31, 2019
--------------------------------------- | ------------------------------ | ------------------------------ | ---------------------------
Accounts and other receivable, net      | $  7,167                       | $ -                            | $  7,167
Inventories                             | 9,372                          | -                              | 9,372
Property and equipment                  | 1,353                          | -                              | 1,353
Goodwill                                | 48,032                         | (11,774)                       | 36,258
Intangible assets                       | 26,000                         | 17,240                         | 43,240
Deferred income tax assets              | 8,116                          | (1,785)                        | 6,331
Other assets                            | 5,126                          | 878                            | 6,004
Total assets acquired                   | 105,166                        | 4,559                          | 109,725
Accounts payable                        | 5,734                          | -                              | 5,734
Deferred income tax liabilities         | 7,984                          | 3,715                          | 11,699
Other liabilities                       | 6,764                          | 844                            | 7,608
Total liabilities assumed               | 20,482                         | 4,559                          | 25,041
Total fair value of net assets acquired | $  84,684                      | $  -                           | $  84,684

ADVANCED ENERGY INDUSTRIES.
 FINANCIAL STATEMENTS
 share
 2019 assessment fair value assets liabilities LumaSense acquisition. table summarizes fair values adjustments.
 adjusted values final valuation report. adjustments additional liabilities deferred taxes excess purchase price goodwill intangibles.
 Preliminary December 31, 2018 December 31, 2019
 Accounts receivable $ 7,167
 Inventories 9,372
 Property equipment 1,353
 Goodwill 48,032
 Intangible assets 26,000
 Deferred income tax assets 8,116
 Other assets,126
 Total assets acquired 105,166
 Accounts payable 5,734
 Deferred income tax liabilities 7,984
 Other liabilities 6,764
 liabilities assumed 20,482
 Total fair value net assets acquired $ 84,684


The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands):
In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers projected future taxable income, carryback opportunities, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, the Company believes it is more likely than not that it will realize the benefits of these deductible differences, net of the valuation allowances recorded. During the year ended December 31, 2019, the Company decreased its valuation allowance by $12.8 million which relates to a reduction in the valuation allowance on U.S. foreign tax credits offset by an increase in valuation allowance on foreign net operating losses.
At December 31, 2019, the Company had domestic federal tax net operating losses (“NOLs”) of $65.9 million, which will begin to expire in 2020. The Company had deferred tax assets equal to $1.4 million related to domestic state tax NOLs which will begin to expire in 2020. The Company does not have any valuation allowance against the federal tax NOLs but has provided a $1.2 million valuation allowance against the deferred tax asset associated with the state NOLs. The Company had foreign tax NOLs of $30.4 million, of which $28.1 million may be utilized over an indefinite life, with the remainder expiring over the next 17 years. The Company has provided a $0.7 million valuation allowance against the deferred tax asset associated with the foreign NOLs.
The Company had U.S. foreign tax credit carryforwards at December 31, 2019, of $40.7 million, for which an $1.2 million valuation allowance has been provided. The U.S. foreign tax credits will begin to expire in 2022. The Company had foreign tax credit carryforwards in other foreign jurisdictions at December 31, 2019, of $1.9 million, of which $1.3 million may be utilized over an indefinite life, with the remainder expiring over the next seven years. The Company has provided a $1.2 million valuation allowance against the tax benefit associated with these foreign credits. The Company also has domestic federal and state general business tax credit carryforwards at December 31, 2019, of $15.7 million and $0.8 million, respectively, which will begin to expire in 2020 and 2022, respectively.

                                                                       | December 31, |
---------------------------------------------------------------------- | ------------ | ----------
                                                                       | 2019         | 2018
Deferred income tax assets:                                            |              |
Net operating loss carryforwards                                       | $23,030      | $25,745
Tax credits                                                            | 52,902       | 43,838
Compensation                                                           | 18,791       | 15,934
Deferred revenue                                                       | 25,599       | 27,587
Research and development expense deferral                              | —            | 12,631
Other                                                                  | 4,065        | 5,393
Gross deferred income tax assets                                       | 124,387      | 131,128
Less: valuation allowance                                              | (7,653)      | (20,415 )
Net deferred income tax assets                                         | $ 116,734    | $ 110,713
Deferred income tax liabilities:                                       |              |
Depreciation and amortization                                          | $ (52,978)   | (60,872 )
Deferred revenue                                                       | (44,198)     | (54,508 )
Total deferred income tax liabilities                                  | (97,176)     | (115,380 )
Net deferred income taxes                                              | $ 19,558     | (4,667 )
Deferred income taxes / liabilities included in the balance sheet are: |              |
Deferred income tax asset – noncurrent                                 | $ 51,611     | $ 27,048
Deferred income tax liability – noncurrent                             | (32,053)     | (31,715 )
Net deferred income taxes                                              | $ 19,558     | (4,667 )

deferred tax assets liabilities result from differences income expense. sources differences
 realizability Company considers. realization future taxable income. considers future income carryback opportunities tax planning strategies. historical income benefits differences. December 31, 2019 decreased valuation allowance by $12. 8 million reduction. foreign tax credits offset increase foreign net operating losses.
 December 31, 2019 had domestic federal tax net operating losses of $65. 9 million 2020. deferred tax assets equal $1. 4 million 2020. against federal tax NOLs provided $1. 2 million allowance against deferred tax asset state NOLs. foreign tax NOLs of $30. 4 million $28. 1 million utilized indefinite remainder expiring 17 years. provided $0. 7 million valuation allowance against deferred tax foreign NOLs.
 had U. S. foreign tax credit carryforwards December 31, 2019 of $40. 7 million $1.2 million valuation allowance. foreign tax credits expire 2022. carryforwards jurisdictions $1. 9 million $1. 3 million indefinite remainder seven years. $1. 2 million valuation allowance tax benefit. domestic state business tax credit carryforwards $15. 7 million. 8 million 2020 2022.
 Deferred income tax assets
 Net operating loss carryforwards $23,030 $25,745
 Tax credits 52,902 43
 Compensation 18,791
 Deferred revenue 25,599
 Research development expense deferral
 deferred income tax assets 124,387
 deferred income tax assets 116,734 110,713
 liabilities
 Depreciation amortization,978)
 Deferred revenue (44,198)
 deferred liabilities (97,176
 deferred income taxes 19,558
 tax asset noncurrent 51,611 27,048
Deferred noncurrent (32,053)
 Net 19,558 (4,667


Income Tax Provision (Benefit)
The income tax benefit for the year ended December 31, 2019 was $12.6 million or approximately 39% of pre-tax loss compared to an income tax benefit of $6.7 million or approximately 20% of pre-tax loss for the year ended December 31, 2018.
The income tax benefit for the year ended December 31, 2019 primarily related to the mix of pre-tax income among jurisdictions, discrete tax benefits related to stockbased compensation, and release of certain reserves for uncertain tax positions under ASC 740-10.
The income tax benefit for the year ended December 31, 2018 primarily related to a partial release of our valuation allowance and the mix of pre-tax income among jurisdictions, excess tax benefits related to stock-based compensation, and release of uncertain tax positions under ASC 740-10.

                   | Year Ended December 31, |                        | % Change
------------------ | ----------------------- | ---------------------- | --------
                   | 2019                    | 2018                   | 2019
                   |                         | (dollars in thousands) |
Income tax benefit | $(12,586)               | $(6,653)               | 89%
% of pre-tax loss  | 39%                     | 20%                    |

Income Tax Provision
 benefit 2019 $12. 6 million 39% pre-tax loss $6. 7 million 20%-tax loss 2018.
 pre-tax income benefits compensation release reserves uncertain tax positions ASC 740-10.
 2018 partial release valuation allowance pre-tax income excess tax benefits stock-based compensation release uncertain tax positions ASC 740-10.
 Year Ended December 31, % Change
 2019
 Income tax benefit $(12,586) $(6,653) 89%
 pre-tax loss 39% 20%


2019 vs 2018
The decrease in tax expense for the year ended December 31, 2019, compared to the year ended December 31, 2018, resulted primarily from a decline in pre-tax earnings coupled with favorable benefits from the settlement of international tax audits and changes in estimate in tax expense recorded upon finalizing U.S. tax returns. These benefits were partially offset by the impact of stock based compensation related to shortfalls that occurred during the year as well as the impact of limitations on current and future deductions for certain executive officers under IRC section 162(m).
During fiscal year 2019, the Company evaluated the impact of the Global Intangible Low-Taxed Income “GILTI”, Foreign Derived Intangible Income “FDII” and Base Erosion and Anti-abuse Tax “BEAT” provisions. These provisions resulted in a net addition to tax of $1.7 million. This amount is comprised of BEAT of $2.1 million offset by the impact of GILTI and FDII of $(0.4) million. For fiscal year 2018, the company estimated that these provisions would result on a net benefit of $(0.3) million. Included in the 2019 tax expense is a benefit of $(0.7) million related to the net impact of these provisions as reported on the final U.S. tax return for the year ended December 31, 2018.
2018 vs 2017
The decrease in the effective tax rate and the decrease in tax expense for the year ended December 31, 2018, compared to the year ended December 31, 2017, resulted primarily from the combination of a decline in pre-tax earnings and the decrease in the US federal tax rate from 35% to 21%, and the impact of other provisions of the tax Cuts and Jobs Act. Additionally, tax expense for the year ended December 31, 2017 included the effect of the implementation of certain aspects of the Tax Act including recording provisional expense for the transition tax of $21.7 million for US federal and state income tax purposes. Additionally, the Company recorded tax expense of $26.6 million resulting from the remeasurement of net deferred tax assets resulting from the reduction in US federal tax rate. These items resulted in higher tax expense during fiscal 2017. During fiscal year 2018, the Company completed the computation of the transition tax as part of the 2017 income tax returns filing and reduced the federal and state provisional amount by $6.7 million. The Company has also evaluated the impact of the Global Intangible Low-Taxed Income “GILTI”, Foreign Derived Intangible Income “FDII” and Base Erosion and Anti-abuse Tax “BEAT” provisions and as a result recorded a detriment of $0.4 million and a benefit of $(0.7) million in relation to GILTI and FDII respectively, resulting on a net benefit of $(0.3) million. During the year ended December 31, 2018, the Company recorded tax expense of $23.0 million in continuing operations related to the write-off of deferred tax assets for which the underlying assets and liabilities related to Arlo. The decrease in the effective tax rate and the decrease in tax expense for the year ended December 31, 2018, compared to the year ended December 31, 2017, resulted primarily from the combination of a decline in pre-tax earnings and the decrease in the US federal tax rate from 35% to 21%, and the impact of other provisions of the tax Cuts and Jobs Act. Additionally, tax expense for the year ended December 31, 2017 included the effect of the implementation of certain aspects of the Tax Act including recording provisional expense for the transition tax of $21.7 million for US federal and state income tax purposes. Additionally, the Company recorded tax expense of $26.6 million resulting from the remeasurement of net deferred tax assets resulting from the reduction in US federal tax rate. These items resulted in higher tax expense during fiscal 2017. During fiscal year 2018, the Company completed the computation of the transition tax as part of the 2017 income tax returns filing and reduced the federal and state provisional amount by $6.7 million. The Company has also evaluated the impact of the Global Intangible Low-Taxed Income “GILTI”, Foreign Derived Intangible Income “FDII” and Base Erosion and Anti-abuse Tax “BEAT” provisions and as a result recorded a detriment of $0.4 million and a benefit of $(0.7) million in relation to GILTI and FDII respectively, resulting on a net benefit of $(0.3) million. During the year ended December 31, 2018, the Company recorded tax expense of $23.0 million in continuing operations related to the write-off of deferred tax assets for which the underlying assets and liabilities related to Arlo.
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Our future foreign tax rate could be affected by changes in the composition in earnings in countries with tax rates differing from the U.S. federal rate. We are under examination in various U.S. and foreign jurisdictions.

                                       | Year Ended December 31, |          |         |          |
-------------------------------------- | ----------------------- | -------- | ------- | -------- | -------
                                       | 2019                    | % Change | 2018    | % Change | 2017
(In thousands, except percentage data) |                         |          |         |          |
Provision (benefit) for income tax     | $3,780                  | (85.4)%  | $25,878 | (54.9)%  | $57,357
Effective tax rate                     | 12.8%                   |          | 59.9%   |          | 124.1%

2019 vs 2018
 decrease tax expense December 31, decline pre-tax earnings benefits international tax audits changes tax expense. offset by stock compensation limitations deductions executive officers IRC section 162(m).
 2019 evaluated impact Global Intangible Low-Taxed Income Foreign Derived Intangible Income Base Erosion Anti-abuse Tax provisions. net addition tax $1. 7 million. BEAT $2. 1 million offset GILTI $(0. 4) million. 2018 estimated net benefit $(0. 3) million. 2019 tax expense benefit $(0. 7) million final. tax return December 31, 2018.
 2018 vs 2017
 decrease effective tax rate tax expense decline pre-tax earnings decrease US federal tax rate 35% to 21% tax Cuts and Jobs Act. tax expense Tax Act expense transition tax $21. 7 million. tax expense $26. 6 million remeasurement net deferred tax assets reduction US federal tax rate. higher tax expense 2017.fiscal year 2018 Company transition tax reduced federal state provisional amount $6. 7 million. evaluated impact Global Intangible Low-Taxed Income Foreign Derived Intangible Income Base Erosion Anti-abuse Tax recorded detriment $0. 4 million benefit $. 7) million GILTI net benefit $. 3) million. December 31, 2018 recorded tax expense $23. 0 million write-off deferred tax assets. decrease effective tax rate tax expense decline pre-tax earnings decrease US federal tax rate 35% to 21% tax Cuts Jobs Act. tax expense Tax Act expense transition tax $21. 7 million. tax expense $26. 6 million remeasurement deferred tax assets reduction US federal tax rate. higher tax expense. 2018 transition tax reduced federal state provisional amount $6. 7 million. evaluated impact Global Intangible Low-Taxed Income Base Anti-abuse Tax recorded detriment $0. 4 million benefit $.million GILTI FDII net benefit $. million. year ended December 31, 2018 Company recorded tax expense $23. million write-off deferred tax assets.
 subject income taxes U. foreign jurisdictions. future foreign tax rate earnings. under examination. foreign jurisdictions.
 Year Ended December 31,
 2019 % Change 2018 2017
 Provision (benefit) income tax $3,780 (85.% $25,878.% $57,357
 Effective tax rate 12. 8% 59. 9%. 1%


VMware and Pivotal Employee Stock Purchase Plans
In June 2007, VMware adopted its 2007 Employee Stock Purchase Plan (the “ESPP”), which is intended to be qualified under Section 423 of the Internal Revenue Code. On June 25, 2019, VMware amended its ESPP to increase the number of shares available for issuance by 9.0 million shares of Class A common stock. As of January 31, 2020, the number of authorized shares under the ESPP was a total of 32.3 million shares. Under the ESPP, eligible VMware employees are granted options to purchase shares at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. The option period is generally twelve months and includes two embedded six-month option periods. Options are exercised at the end of each embedded option period. If the fair market value of the stock is lower on the first day of the second embedded option period than it was at the time of grant, then the twelve-month option period expires and each enrolled participant is granted a new twelve-month option. As of January 31, 2020, 14.3 million shares of VMware Class A common stock were available for issuance under the ESPP.
The following table summarizes ESPP activity for VMware during the periods presented (cash proceeds in millions, shares in thousands):
As of January 31, 2020, $95 million of ESPP withholdings were recorded as a liability in accrued expenses and other on the consolidated balance sheets for the purchase that occurred on February 29, 2020.
Prior to the acquisition of Pivotal, Pivotal granted options to eligible Pivotal employees to purchase shares of its Class A common stock at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value of the Pivotal stock at the time of exercise. Pivotal’s ESPP activity was not material during the periods presented.

                                 |                  | For the Year Ended |
-------------------------------- | ---------------- | ------------------ | ----------------
                                 | January 31, 2020 | February 1, 2019   | February 2, 2018
Cash proceeds                    | $172             | $161               | $65
Class A common stock purchased   | 1,489            | 1,895              | 903
Weighted-average price per share | $115.51          | $84.95             | $72.40

VMware Pivotal Employee Stock Purchase Plans
 2007, VMware adopted Employee Stock Purchase Plan Section 423 Internal Revenue Code. June 25, 2019 amended ESPP 9. 0 million shares Class A common stock. January 31, 2020 authorized 32. 3 million shares. VMware employees granted options purchase shares 85% fair market value grant 85% exercise. option period twelve months two six-month option periods. Options exercised end. fair market value lower expires new option. January 31, 2020 14. 3 million shares VMware Class A common stock available ESPP.
 table summarizes ESPP activity VMware
 January 31, 2020 $95 million ESPP withholdings liability accrued expenses consolidated balance sheets purchase February 29, 2020.
 acquisition Pivotal Pivotal granted options employees purchase shares Class A common stock lower 85% fair market value grant. ESPP activity not material.
January 2020 2019 2 2018
 $172 $65
 A common stock 1,489 1,895
 share $115. $84.


3.3 Trade receivables and contract assets
Recognition and measurement
All trade and other receivables recognised as current assets are due for settlement within no more than 30 days for marketing fees and within one year for trail commission. Trade receivables are measured on the basis of amortised cost.
It is the Group’s policy that all key partners who wish to trade on credit terms are subject to credit verification procedures.
Allowance for credit losses
iSelect applies the simplified approach and records lifetime expected losses on all trade receivables and contract assets. As a consequence, we do not track changes in credit risk, but recognise a loss allowance based on lifetime expected credit loss at each reporting date.
iSelect calculates its provision utilising historical credit loss experience, adjusted for other relevant factors, i.e. aging of receivables, credit rating of the debtor, etc. Debts that are known to be uncollectable are written off when identified. If an impairment allowance has been recognised for a debt that becomes uncollectable, the debt is written off against the provision. If an amount is subsequently recovered, it is credited against profit or loss.
As at 30 June 2019, expected credit losses are not considered material.
Contract assets
Contract assets are initially recognised for revenue earned from comparison, purchase support and referral services, as receipt of consideration is conditional on successful completion of a purchase between the customers and the product providers. Upon completion of sale and acceptance by the customer and the provider, invoices are issued to the provider for the amount receivable. These amounts invoiced are reclassified from contract assets to trade receivables. The trade receivable balance represents the Group’s unconditional right to receive the cash.
Key estimates – allowance for credit losses
We apply management judgement to estimate the expected credit losses for trade receivables and contract assets. Expected credit losses are assessed on an ongoing basis. Financial difficulties of the debtor, probability of default, delinquency in payments and credit ratings are utilised in this assessment.

                                                                                | CONSOLIDATED CONSOLIDATED |
---------------------------------------------------------------------------------------- | ------------------------- | ----------
                                                                                | 2019 $’000                | 2018 $’000
Trade receivables                                                                        | 6,165                     | 4,952
Allowance for credit losses                                                              | -                         | (15)
Contract assets                                                                          | 16,824                    | 23,773
                                                                                | 22,989                    | 28,710
The ageing analysis of trade rec The ageing analysis of trade receivables is as follows: |                           |
Current                                                                                | 4,967                     | 4,408
Past due 1 – 30 days                                                                     | 1,024                     | 291
Past due 31 – 90 days                                                                    | 130                       | 108
Past due 90+ days                                                                        | 44                        | 130
                                                                                | 6,165                     | 4,937

. Trade receivables contract assets
 Recognition measurement
 receivables due settlement 30 days marketing fees one year trail commission. measured amortised cost.
 partners trade credit terms credit verification.
 Allowance credit losses
 iSelect records lifetime losses receivables contract assets. credit risk loss allowance credit loss reporting date.
 calculates provision historical credit loss experience adjusted factors. credit rating. Debts uncollectable written off. impairment allowance recognised uncollectable written off against provision. recovered credited against profit loss.
 30 June 2019 expected credit losses not material.
 Contract assets
 recognised revenue comparison purchase support referral services completion purchase. invoices issued receivable. reclassified contract assets trade receivables. receivable balance unconditional right receive cash.
 estimates credit losses
 management judgement credit losses receivables assets. assessed. Financial difficulties probability default delinquency credit ratings.

 2019 2018
 Trade receivables 6,165 4,952
 credit losses
 Contract assets 16,824 23,773
 22,989 28,710
 ageing analysis
 4,967 4,408
 1 – 30 days 1,024 291
 31 – 90 days
 6,165


Global Services
Adjusteda revenue £4,735m
£4,735m
Adjusteda operating profit
£135m
Global Services operates in a global market that continues to experience high levels of change driven by both rapid technology innovation and a dynamic competitive landscape. Customers’ demands continue to evolve towards more flexible, on-demand models and new cloud-based and software-defined networking solutions. We continue to execute our Digital Global Services transformation programme to focus our business, standardise our operations, transform our underlying infrastructure, and provide innovative solutions to address the changing demands of our customers. We are focused on around 800 multinational companies and financial institutions served by three global industry verticals.
Adjusteda revenue for the year was down 6%, in line with our strategy to de-emphasise low margin business and including the impact of divestments. This includes a £35m negative impact from foreign exchange movements, primarily reflecting lower IP Exchange volumes and equipment sales.
Adjusteda operating costs for the year were down 8% mainly reflecting the decline in IP Exchange volumes and equipment sales and lower labour costs from our ongoing restructuring programme. Adjusteda EBITDA for the year was up £71m reflecting the reduction in operating costs and certain one-offs, more than offsetting the impact of lower revenue.
Depreciation and amortisation was down 13% for the year due to closure of certain projects in the prior year.
Capital expenditure was down 12% for the year reflecting ongoing rationalisation and our strategy to become a more asset light business. Normalised free cash flowb for the year improved by 151% to £296m, reflecting higher EBITDA, lower capital expenditure and improved working capital.
Total order intake was £3.3bn, down 15% year on year continuing to reflect a shift in customer behaviour, including shorter contract lengths and greater prevalence of usage-based terms.
a Adjusted measures exclude specific items, as explained in the Additional Information on page 185. b Free cash flow after net interest paid, before pension deficit payments (including the cash tax benefit of pension deficit payments) and specific items. c Openreach comparatives have been re-presented to reflect the transfer of Northern Ireland Networks from Enterprise to Openreach.

                            | 2019 (IFRS 15) | 2018 (IAS 18) | Change |
--------------------------- | -------------- | ------------- | ------ | -----
Year to 31 March            | £m             | £m            | £m     | %
Adjusted a revenue          | 4,735          | 5,013         | (278)  | (6)
Adjusted a operating costs  | 4,230          | 4,579         | (349)  | (8)
Adjusted a EBITDA           | 505            | 434           | 71     | 16
Depreciation & amortisation | 370            | 424           | (54)   | (13)
Adjusted a operating profit | 135            | 10            | 125    | 1,250
Capital expenditure         | 245            | 278           | (33)   | (12)
Normalised free cash flow b | 296            | 118           | 178    | 151

Services
 Adjusteda revenue £4,735m
 profit
 £135m
 global market change technology innovation landscape. demands flexible on-demand models cloud software networking solutions. Digital Global Services transformation programme operations infrastructure innovative solutions. 800 multinational companies financial institutions three industry verticals.
 revenue down 6% low margin business divestments. £35m negative impact foreign exchange lower IP Exchange volumes equipment sales.
 operating costs down 8% IP Exchange volumes sales lower labour costs restructuring. EBITDA up £71m costs.
 Depreciation amortisation down 13% projects.
 Capital expenditure down 12% rationalisation light business. free cash improved 151% £296m higher EBITDA lower capital expenditure improved working capital.
 order intake £3. 3bn down 15% customer behaviour shorter contract lengths usage-based terms.
 measures exclude items. cash flow interest pension deficit payments. transfer Northern Ireland Networks Enterprise Openreach.
2019 15 2018 18
 31 March
 revenue 4,735 5,013 (278)
 operating costs 4,230 4,579 (349)
 EBITDA 505 434 71
 Depreciation amortisation 370 424
 operating profit 135 125
 Capital expenditure 245  278 (33)
 free cash flow 296  118 178


Financial information of associates and joint ventures:
There is no individually significant associate or joint venture for the Company. For individually immaterial associates and joint ventures, the following tables summarize the amount recognized by the Company at its share of those associates and joint ventures separately.
When an associate or a joint venture is a foreign operation, and the functional currency of the foreign entity is different from the Company, an exchange difference arising from translation of the foreign entity will be recognized in other comprehensive income (loss).
Such exchange differences recognized in other comprehensive income (loss) in the financial statements for the years ended December 31, 2017, 2018 and 2019 were NT$45 million, NT$(16) million and NT$(9) million, respectively, which were not included in the following table.
The aggregate amount of the Company’s share of all its individually immaterial associates that are accounted for using the equity method was as follows:

                                             |                   | For the years ended December 31, |
-------------------------------------------- | ----------------- | -------------------------------- | ------------------
                                             | 2017              | 2018                             | 2019
                                             | $NT(In Thousands) | $NT (In Thousands)               | $NT (In Thousands)
Profit (loss) from continuing operations     | $77,589           | $(616,665)                       | $115,329
Post-tax profit from discontinued operations | 80,248            | —                                | —
Other comprehensive income (loss)            | 526,773           | (82,871)                         | 873,308
Total comprehensive income (loss)            | $684,610          | $(699,536)                       | $988,637

Financial information associates joint ventures
 no individually significant associate joint venture Company. tables summarize recognized.
 foreign operation currency different exchange difference recognized income (loss).
 exchange differences 2017 2018 2019 NT$45 million NT$(16) million NT$(9) million not included table.
 Company’s share associates equity method
 years ended December 31,
 2017 2018 2019
 Profit (loss) continuing operations $77,589 $(616,665) $115,329
 Post-tax profit discontinued operations 80,248
 Other comprehensive income (loss) 526,773 (82,871) 873,308
 Total comprehensive income (loss) $684,610  $(699,536) $988,637


Balance Sheet and Cash Flows
Cash and Cash Equivalents and Investments The following table summarizes our cash and cash equivalents and investments (in millions):
The net decrease in cash and cash equivalents and investments from fiscal 2018 to fiscal 2019 was primarily driven by cash returned to shareholders in the form of repurchases of common stock of $20.7 billion under the stock repurchase program and cash dividends of $6.0 billion, net cash paid for acquisitions and divestitures of $2.2 billion, a net decrease in debt of $1.1 billion, and capital expenditures of $0.9 billion. These uses of cash were partially offset by cash provided by operating activities of $15.8 billion and the timing of settlements of investments and other of $2.0 billion.
In addition to cash requirements in the normal course of business, on July 9, 2019 we announced our intent to acquire Acacia Communications, Inc. (“Acacia”) for a purchase consideration of approximately $2.6 billion in cash. Additionally, $0.7 billion of the U.S. transition tax on accumulated earnings for foreign subsidiaries, $6.0 billion of long-term debt and $4.2 billion of commercial paper notes outstanding at July 27, 2019, are payable within the next 12 months from the balance sheet date. See further discussion of liquidity and future payments under “Contractual Obligations” and “Liquidity and Capital Resource Requirements” below.
We maintain an investment portfolio of various holdings, types, and maturities. We classify our investments as short-term investments based on their nature and their availability for use in current operations. We believe the overall credit quality of our portfolio is strong, with our cash equivalents and our available-for-sale debt investment portfolio consisting primarily of high quality investment-grade securities. We believe that our strong cash and cash equivalents and investments position allows us to use our cash resources for strategic investments to gain access to new technologies, for acquisitions, for customer financing activities, for working capital needs, and for the repurchase of shares of common stock and payment of dividends as discussed below.

                                    | July 27, 2019 | July 28, 2018 | Increase (Decrease)
----------------------------------- | ------------- | ------------- | -------------------
Cash and cash equivalents .         | $11,750       | $8,934        | $2,816
Available-for-sale debt investments | 21,660        | 37,009        | (15,349)
Marketable equity securities        | 3             | 605           | (602)
Total                               | $33,413       | $46,548       | $(13,135)

Balance Sheet Cash Flows
 Equivalents Investments table summarizes equivalents investments
 decrease cash equivalents investments 2018 to 2019 driven by cash returned shareholders repurchases common stock $20. 7 billion cash dividends $6. 0 billion divestitures $2. 2 billion decrease debt $1. 1 billion capital expenditures $0. 9 billion. offset by operating activities $15. 8 billion settlements investments $2. 0 billion.
 July 9, 2019 acquire Acacia Communications. $2. 6 billion. $0. 7 billion U. S. transition tax earnings subsidiaries $6. 0 billion long-term debt $4. 2 billion commercial paper notes 2019 payable 12 months. Capital Resource.
 investment portfolio. short-term. credit quality portfolio strong cash equivalents debt portfolio high quality investment-grade securities. strategic investments technologies customer financing working capital repurchase common stock dividends.
July 27, 28, 2018
 Cash equivalents. $11,750 $8,934
 debt investments 21,660 37,009,349
 equity securities
 $33,413 $46,548,135


(1)  The bonus paid in 2019, 2018 and 2017 was approved by the compensation Committee and Supervisory Board with respect to the 2018, 2017 and 2016 financial year, respectively, based on the evaluation and assessment of the actual fulfillment of a number of pre-defined objectives for such year.
(2)  Including stock awards, employer social contributions, company car allowance, pension contributions, complementary pension contributions, miscellaneous allowances as well as one-off contractually obligated deferred compensation paid to Mr. Bozotti in 2019.
In accordance with the resolutions adopted at our AGM held on May 30, 2012, the bonus of our former President and Chief Executive Officer, Mr. Bozotti, in 2018 and 2017 included a portion of a bonus payable in stock awards and corresponding to 86,782 and 59,435 vested shares, respectively, based on fulfillment of a number of pre-defined objectives.
In addition, our sole member of our Managing Board, President and Chief Executive Officer, Mr. Chery, was granted, in accordance with the compensation policy adopted by our General Meeting of Shareholders and subsequent shareholder authorizations, up to 100,000 unvested Stock Awards. The vesting of such stock awards is conditional upon the sole member of our Managing Board, President and Chief Executive Officer’s, continued service with us.
(3) In 2019, the total compensation of the sole member of our Managing Board, President and Chief Executive Officer was 46% fixed to 54% variable, compared to 12% fixed to 88% variable in 2018 and 44% fixed to 56% variable in 2017.

                                 | 2019       | 2018        | 2017
-------------------------------- | ---------- | ----------- | ----------
Salary                           | $896,297   | $927,820    | $903,186
Bonus(1)                         | $1,280,173 | $3,214,578  | $1,044,514
Charges and Non-cash Benefits(2) | $5,618,382 | $6,971,946  | $1,828,814
Total(3)                         | $7,794,852 | $11,114,344 | $3,776,514

bonus paid in 2019 2018 2017 approved by compensation Committee Supervisory Board objectives.
 stock awards employer social contributions company car allowance pension contributions miscellaneous allowances deferred compensation. Bozotti 2019.
 bonus President. Bozotti 2018 2017 included bonus in stock awards 86,782 59,435 vested shares objectives.
 Managing Board. Chery granted 100,000 unvested Stock Awards. vesting conditional upon continued service.
 2019 total compensation 46% fixed to 54% variable 12% to 88% variable 2018 44% to 56% variable 2017.
 Salary $896,297  $927,820  $903,186
 Bonus(1) $1,280,173  $3,214,578 $1,044,514
 Charges Non-cash Benefits(2) $5,618,382  $6,971,946 $1,828,814
 Total(3) $7,794,852  $11,114,344 $3,776,514


OPERATING AND FINANCIAL RESULTS
(1) For the three-month period ended August 31, 2019, the average foreign exchange rate used for translation was 1.3222 USD/CDN.
(2) 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.
(3) Fiscal 2019 actuals are translated at the average foreign exchange rate of the comparable period of fiscal 2018 which was 1.3100 USD/CDN.

Three months ended August 31,                 | 2019 (1) | 2018 (2) | Change | Change in constant currency | Foreign exchange impact
--------------------------------------------- | -------- | -------- | ------ | --------------------------- | -----------------------
(in thousands of dollars, except percentages) | $        | $        | %      | %                           | $
Revenue                                       | 583,673  | 566,184  | 3.1    | 2.7                         | 2,427
Operating expenses                            | 302,833  | 297,977  | 1.6    | 1.1                         | 1,441
Management fees – Cogeco Inc.                 | 5,230    | 4,796    | 9.0    | 9.0                         | -
Adjusted EBITDA                               | 275,610  | 263,411  | 4.6    | 4.3                         | 986
Adjusted EBITDA margin                        | 47.2%    | 46.5%    |        |                             |

FINANCIAL RESULTS
 three-month period August 31, 2019 average foreign exchange rate. 3222 USD/CDN.
 Fiscal 2018 restated IFRS 15 change accounting policy reclassify results Cogeco Peer 1 discontinued
 operations. consult policies operations sections.
 Fiscal 2019 translated average foreign exchange rate. 3100 USD/CDN.
 Three months August currency Foreign exchange impact
 Revenue 583,673 566,184 3. 2.
 Operating expenses 302,833 297,977.
 Management fees Cogeco. 5,230 9.
 Adjusted EBITDA 275,610 263,411 4.
 EBITDA margin 47. 2% 46. 5%


29. Share-based payments continued
Share Incentive Plan
In 2015, the Group established a Share Incentive Plan (‘SIP’). All eligible employees were awarded free shares (or nil-cost options in the case of employees in Ireland) valued at £3,600 each based on the share price at the time of the Company’s admission to the Stock Exchange in March 2015, subject to a three-year service period (‘Vesting Period’). The SIP shareholders are entitled to dividends over the Vesting Period. There are no performance conditions applicable to the vesting of SIP shares. The fair value of the SIP awards at the grant date was measured to be £2.72 using the Black-Scholes model. The resulting share-based payments charge is being spread evenly over the Vesting Period.

                                                 | Group |      | Company |
------------------------------------------------ | ----- | ---- | ------- | ----
                                                 | 2019  | 2018 | 2019    | 2018
                                                 | £m    | £m   | £m      | £m
Share Incentive Plan (‘SIP’)                     | –     | 0.8  | –       | –
Sharesave scheme (‘SAYE’)                        | 0.3   | 0.3  | –       | –
Performance Share Plan (‘PSP’)                   | 2.1   | 1.8  | 1.3     | 0.7
Deferred Annual Bonus and Single Incentive Plan  | 2.3   | 0.4  | 0.4     | 0.2
Total share-based payment charge                 | 4.7   | 3.3  | 1.7     | 0.9
NI and apprenticeship levy on applicable schemes | 1.2   | 0.4  | 0.6     | 0.1
Total charge                                     | 5.9   | 3.7  | 2.3     | 1.0

. Share-based payments continued
 Incentive Plan
 2015, Group established Share Incentive Plan. eligible employees awarded free shares-cost options valued £3,600 each based share price Company’s admission to Stock Exchange March 2015, three-year service period. SIP shareholders entitled to dividends over Vesting Period. no performance conditions applicable vesting SIP shares. fair value SIP awards grant date measured £2. 72 Black-Scholes model. share-based payments spread evenly over Vesting Period.
 2019
 Share Incentive Plan. 8
 Sharesave scheme.
 Performance Share Plan.
 Deferred Annual Bonus Single Incentive Plan.
 Total share-based payment charge 4. 7.
 apprenticeship levy schemes.
 charge 5. 9.


The following table presents the principal components of the difference between the effective tax rate to the U.S. federal statutory income tax rate for the years ended March 31:
During fiscal 2018, we recorded a provisional tax benefit of approximately $3.3 million as a result of the enactment of the Tax Cuts and Jobs Act ("Tax Act") on December 22, 2017.
We completed the accounting for the Tax Act during Q3 fiscal 2019 and recorded an adjustment on December 31, 2018 of $0.2 million to increase our deferred tax liability associated with certain indefinite lived intangibles. We have elected to account for global intangible low-taxed income (GILTI) inclusions in the period in which they are incurred.
Our tax provision includes a provision for income taxes in certain foreign jurisdictions where subsidiaries are profitable, but only a minimal benefit is reflected related to U.S. and certain foreign tax losses due to the uncertainty of the ultimate realization of future benefits from these losses.
The 2019 tax provision results primarily from foreign tax expense, the reversal of reserves for uncertain tax positions and the completion of our accounting for the Tax Act. The 2019 tax provision differs from the statutory rate primarily due to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, state taxes and other U.S. permanent book to tax differences.
The 2018 tax provision primarily results from a reduction in the deferred rate and the ability to offset indefinite lived deferred tax liabilities with certain deferred tax assets due to passage of the Tax Act. The 2018 effective rate differs from the statutory rate primarily due to the impact of the Tax Act, recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, certain foreign and state tax effects including a benefit of $0.4 million related to a settlement with the California Franchise Tax Board and other U.S. permanent book to tax differences.
The 2017 tax provision primarily results from state taxes, taxes withheld in foreign jurisdictions and foreign tax expense. The 2017 tax provision differs from the statutory rate primarily due to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, state taxes and other U.S. permanent book to tax differences.

(In thousands)                                      | 2019     | 2018     | 2017
--------------------------------------------------- | -------- | -------- | --------
Income tax benefit at the US Federal statutory rate | $(2,718) | $(3,654) | $(4,019)
Benefit for state taxes                             | (304)    | (642)    | (142)
Impact of foreign operations                        | (310)    | 38       | 158
Indefinite life assets                              | 130      | 335      | 102
Officer life insurance                              | 3        | (5)      | (6)
Change in valuation allowance                       | 3,302    | 3,328    | 4,007
Change in liability for unrecognized tax benefits   | (400)    | 40       | 9
Impact of Tax Act, net                              | 226      | (3,287)  | —
Meals and entertainment                             | 60       | 81       | 163
Equity                                              | 2        | 476      | —
Global intangible low-taxed income                  | 94       | —        | —
Other                                               | 136      | 39       | (36)
Total income tax expense (benefit)                  | $221     | $(3,251) | $236

table effective. federal statutory income years March 31
 2018 recorded provisional tax benefit $3. 3 million Tax Cuts Jobs Act.
 completed accounting Tax Act Q3 2019 recorded adjustment December 31, 2018 $0. 2 million deferred tax liability indefinite intangibles. global intangible low-taxed income) inclusions.
 tax provision includes income taxes foreign jurisdictions minimal benefit. losses.
 2019 tax provision foreign tax expense reversal reserves uncertain tax positions accounting Tax Act. differs net operating losses deferred tax assets offset valuation allowance state taxes.
 2018 tax reduction deferred rate deferred tax liabilities Tax Act. rate differs Tax Act net operating losses deferred tax assets offset valuation allowance foreign state tax effects benefit $0. 4 million settlement California Franchise Tax Board. differences.
 2017 tax provision state taxes taxes withheld foreign jurisdictions foreign tax expense.2017 tax provision differs operating losses deferred tax assets offset valuation allowance state taxes. tax differences.
 2018
 Income tax benefit Federal statutory rate $(2,718) $(3,654) $(4,019)
 Benefit state taxes (304)
 foreign operations
 Indefinite life assets
 life insurance
 valuation allowance 3,302 3,328 4,007
 liability unrecognized tax benefits
 Impact Tax Act 226 (3,287)
 Meals entertainment
 Global intangible low-taxed income
 Total income tax expense $221 $(3,251)


The net contract acquisition expense deferred within the Consolidated Statement of Profit or Loss was $0.9M of the total $259.9M of Sales and Marketing costs (2018: $8.4M / $239.9M).
At 31 March 2019, trade receivables at a nominal value of $1.2M (2018: $0.9M) were impaired and fully provided for. Movements in the provision for impairment of receivables were as follows: 31

                                       | 31 March 2019 | 31 March 2018
-------------------------------------- | ------------- | -------------
                                       | $M            | $M
At 1 April                             | 0.9           | 0.4
Charge for the year                    | 0.6           | 0.6
Amounts written off                    | (0.2)         | (0.1)
Effects of movements in exchange rates | (0.1)         | –
At 31 March                            | 1.2           | 0.9

contract acquisition expense deferred Profit $0. 9M $259. 9M Sales Marketing costs (2018 $8. 4M $239. 9M.
 31 March 2019 trade receivables $1. 2M (2018 $0. 9M impaired provided. impairment receivables 31
 2019 2018
 April.
.
 Amounts written off.
 Effects movements exchange rates.
 31 March.


Network advertising revenue is generated primarily from the sale of television airtime for programs or advertisements. Network advertising revenue is recognized when the program or advertisement is broadcast. Revenues are reported net of agency commissions, which are calculated as a stated percentage applied to gross billings. The Network advertising contracts are generally short-term in nature.
Network distribution revenue consists of payments received from cable, satellite and other multiple video program distribution systems for their retransmission of our network content. Network distribution revenue is recognized as earned over the life of the retransmission consent contract and varies from month to month.
Variable fees are usage/sales based, calculated on the average number of subscribers, and recognized as revenue when the usage occurs. Transaction prices are based on the contract terms, with no material judgments or estimates.
Broadcast station revenue is generated primarily from the sale of television airtime in return for a fixed fee or a portion of the related ad sales recognized by the third party. In a typical broadcast station revenue agreement, the licensee of a station makes available, for a fee, airtime on its station to a party which supplies content to be broadcast during that airtime and collects revenue from advertising aired during such content.
Broadcast station revenue is recognized over the life of the contract, when the program is broadcast. The fees that we charge can be fixed or variable and the contracts that the Company enters into are generally short-term in nature. Variable fees are usage/salesbased and recognized as revenue when the subsequent usage occurs. Transaction prices are based on the contract terms, with no material judgments or estimates.
Disaggregation of Revenues The following table disaggregates the Broadcasting segment's revenue by type (in millions):

                                            | Years Ended December 31, |
------------------------------------------- | ------------------------ | ------
                                            | 2019                     | 2018
Network advertising                         | $22.7                    | $28.2
Broadcast station                           | 11.9                     | 10.8
Network distribution                        | 4.9                      | 4.8
Other                                       | 2.3                      | 1.6
Total revenue from contracts with customers | 41.8                     | 45.4
Other revenue                               | -                        | -
Total Broadcasting segment revenue          | $ 41.8                   | $ 45.4

Network advertising revenue from sale television airtime for. recognized when broadcast. net agency commissions calculated gross billings. contracts short-term.
 distribution revenue payments from cable satellite video distribution systems for retransmission content. earned varies month to month.
 Variable fees usage/sales based average subscribers recognized revenue when usage. Transaction prices based on contract terms no material judgments estimates.
 Broadcast station revenue from sale television airtime fixed fee or portion ad sales third party. licensee airtime party collects revenue from advertising.
 revenue recognized when program. fees fixed or variable short-term. fees usage/salesbased recognized as revenue when usage. Transaction prices based on contract terms no material judgments estimates.
 Disaggregation of Revenues Broadcasting segment revenue by type
 Network advertising $22. $28.
 Broadcast station.
 Network distribution.
.
 revenue from contracts customers 41. 45
 Other revenue
Broadcasting $ 41. 45.


NOTE 6. ACCOUNTS RECEIVABLE AND REVENUES
Amounts billed and due from our customers are classified as accounts receivables on our consolidated balance sheets and require
payment on a short-term basis. Invoices are generally issued at the point control transfers and substantially all of our invoices are due
within 30 days or less, however certain customers have terms of up to 120 days. For substantially all of our contracts, control of the
ordered product(s) transfers at our location. Periodically, we require payment prior to the point in time we recognize revenue. Amounts
received from customers prior to revenue recognition on a contract are contract liabilities, are classified as customer prepayments liability on our consolidated balance sheets and are typically applied to an invoice within 30 days of the prepayment. Revenues in 2019 include $0.1 million in unearned revenue as of December 31, 2018, and in 2018 include less than $0.1 million in unearned revenue as of
January 1, 2018.
Our accounts receivable potentially subject us to significant concentrations of credit risk. Revenues and accounts receivable from significant customers (customers with revenue or accounts receivable in excess of 10% of consolidated totals) are stated below as a percent of consolidated totals.

                                                  |     |     | Customer |     |
------------------------------------------------- | --- | --- | -------- | --- | ---
                                                  | A   | B   | C        | D   | E
% of revenue, 2019                                | 11% | 9%  | 16%      | 3%  | 2%
% of revenue, 2018                                | 17% | 14% | 1%       | 4%  | -%
% of accounts receivable, as of December 31, 2019 | 10% | 8%  | 31%      | -%  | 10%
% of accounts receivable, as of December 31, 2018 | 13% | -%  | 16%      | 14% | -%

6. ACCOUNTS RECEIVABLE REVENUES
 Amounts billed due from customers accounts receivables
 payment short-term. Invoices issued at control transfers due
 within 30 days or less certain up to 120 days. control
 product at location. require payment prior revenue. Amounts
 received prior liabilities customer prepayments applied invoice within 30 days prepayment. Revenues 2019 include $0. 1 million unearned revenue as December 31, 2018 2018 less than $0. 1 million unearned
 January 1, 2018.
 accounts receivable credit risk. Revenues from customers 10% percent totals.
 revenue 2019 11% 16% 3% 2%
 2018 17% 14% 1% 4%
 accounts receivable December 31, 2019 10% 8% 31%
 31, 2018 13% 16% 14%


Summarized financial information of Hilli LLC
The assets and liabilities of Hilli LLC(1) that most significantly impacted our consolidated balance sheet as of December 31, 2019 and 2018, are as follows:
(1) As Hilli LLC is the primary beneficiary of the Hilli Lessor VIE (see above) the Hilli LLC balances include the Hilli Lessor VIE.

(in thousands of $)     | 2019      | 2018
----------------------- | --------- | ---------
Balance sheet           |           |
Current assets          | 64,507    | 172,554
Non-current assets      | 1,300,065 | 1,392,710
Current liabilities     | (496,029) | (278,728)
Non-current liabilities | (418,578) | (842,786)

financial Hilli LLC
 assets liabilities balance sheet December 31, 2019 2018
 primary beneficiary Lessor VIE balances VIE.
 Current assets 64,507 172,554
 Non-current assets 1,300,065 1,392,710
 liabilities (496,029) (278,728)
 Non-current liabilities (418,578) (842,786


Contract Balances
Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. We record a receivable related to revenue recognized for multi-year on-premises licenses as we have an unconditional right to invoice and receive payment in the future related to those licenses.
As of June 30, 2019 and 2018, long-term accounts receivable, net of allowance for doubtful accounts, was $2.2 billion and $1.8 billion, respectively, and is included in other long-term assets in our consolidated balance sheets.
The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence.
Activity in the allowance for doubtful accounts was as follows:

(In millions)                |         |        |
---------------------------- | ------- | ------ | ------
Year Ended June 30,          | 2019    | 2018   | 2017
Balance, beginning of period | $   397 | $  361 | $  409
Charged to costs and other   | 153     | 134    | 58
Write-offs                   | (116)   | (98)   | (106)
Balance, end of period       | $ 434   | $  397 | $  361

Contract Balances
 revenue recognition invoicing. record receivable unearned. multi-year agreements invoice annually. record receivable revenue multi-year on-premises licenses unconditional right invoice.
 June 30, 2019 2018 long-term accounts receivable allowance doubtful accounts $2. 2 billion $1. 8 billion included assets balance sheets.
 allowance doubtful accounts reflects losses. troubled accounts historical experience evidence.
 Activity allowance doubtful accounts
 millions
 Ended June 30 2019 2018 2017
 Balance period $ 397 $ 361  $ 409
 Charged costs
 Write-offs
 end period $ 434 $ 397 $


Contract costs As discussed in the Significant Accounting Policies Note, Topic 606 requires the recognition of an asset for incremental costs to obtain a customer contract, which is then amortized to expense, over the respective period of expected benefit. The Partnership recognizes a contract asset for incremental commission costs paid to Verizon Wireless personnel and agents in conjunction with obtaining customer contracts.
The costs are only deferred when it is determined the commissions are incremental costs that would not have been incurred absent the customer contract and are expected to be recovered. Costs to obtain a contract are amortized and recorded ratably as commission expense over the period representing the transfer of goods or services to which the assets relate. Costs to obtain contracts are amortized over the customers' estimated device upgrade cycle of two to three years, as such costs are typically incurred each time a customer upgrades their equipment.
The amortization periods for the costs incurred to obtain a customer contract is determined at a portfolio level due to the similarities within these customer contract portfolios. Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred. Deferred contract costs are classified as current or non-current within prepaid expenses and other, and other assets – net, respectively. The balances of deferred contract costs as of December 31, 2019 and 2018, included in the balance sheet were as follows:
For the years ended December 31, 2019 and 2018, the Partnership recognized expense of $3,126 and $2,161, respectively, associated with the amortization of deferred contract costs, primarily within selling, general and administrative expenses in the statements of income.
Deferred contract costs are assessed for impairment on an annual basis. An impairment charge is recognized to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration expected to be received in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses. There have been no impairment charges recognized for the year ended December 31, 2019 and 2018.

                           | 2019    | 2018
-------------------------- | ------- | -------
Assets                     |         |
Prepaid expenses and other | $ 3,027 | $ 2,347
Other assets - net         | 1,824   | 1,831
Total                      | $ 4,851 | $ 4,178

Contract costs Accounting Policies Note Topic 606 requires recognition incremental costs customer contract amortized expense benefit. Partnership recognizes contract incremental commission costs Verizon Wireless personnel agents contracts.
 costs deferred incremental incurred contract expected recovered. Costs contract amortized recorded as commission expense transfer goods services. Costs amortized over device upgrade cycle two to three years.
 amortization periods determined portfolio level similarities. Other costs obligations expensed as incurred. Deferred contract costs classified current or non-current prepaid expenses other assets. balances of deferred contract costs December 31, 2019 2018
 December 31, 2019 2018 Partnership recognized expense $3,126 $2,161 amortization deferred contract costs selling general administrative expenses statements income.
 Deferred contract costs assessed for impairment. impairment charge recognized deferred cost exceeds remaining consideration goods services. no impairment charges recognized year ended December 31, 2019 2018.
Assets
 Prepaid expenses $ 3,027 2,347
 1,824
 $ 4,178


GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
Key details of the term loan are as follows:
(1) The principal balance of the term loan is scheduled to be repaid on a quarterly basis at an amortization rate of 0.25% per quarter through December 31, 2024, with the balance due at maturity. For each of the next five years, principal repayments on the term loan are expected to be $4,000.
(2) For the years ended December 31, 2019 and 2018, debt discount of $613 and $593, respectively, and debt issuance costs of $1,062
and $1,091, respectively, were amortized into interest expense in the Consolidated Statements of Operations. Giving effect to the
amortization of debt discount and debt issuance costs on the term loan, the effective interest rates were 5.95% and 5.99% during the
years ended December 31, 2019 and 2018, respectively.

                                   | December 31, |
---------------------------------- | ------------ | --------
                                   | 2019         | 2018
Term loan, face value(1)           | $393,000     | $397,000
Unamortized debt discount (2)      | (3,115)      | (3,728)
Unamortized debt issuance costs(2) | (5,388)      | (6,450)
Term loan                          | $384,497     | $386,822

GreenSky Inc. FINANCIAL STATEMENTS States Dollars share data
 details term loan
 principal balance repaid quarterly amortization rate 0. 25% quarter December 31, 2024 balance due maturity. next five years repayments $4,000.
 December 31, 2019 2018 debt discount $613 $593 debt issuance costs $1,062
 $1,091 amortized interest expense.
 effective interest rates 5. 95% 5. 99%
 2019 2018.
 Term loan face $393,000 $397,000
 Unamortized debt discount (3,115
 issuance (5,388
 loan $384,497 $386,822


4.11 Income Taxes
The following table reconciles the amount of reported income taxes in the income statements with income taxes calculated at a statutory income tax rate of 27.0% for both 2019 and 2018.
Income taxes in 2019 increased by $138 million, compared to 2018, mainly due to higher taxable income and a lower value of uncertain tax positions favourably resolved in 2019 compared to 2018, partly offset by a favourable change in the corporate income tax rate in Alberta in Q2 2019.

FOR THE YEAR ENDED DECEMBER 31                       | 2019    | 2018
---------------------------------------------------- | ------- | -------
Net earnings                                         | 3,253   | 2,973
Add back income taxes                                | 1,133   | 995
Earnings before income taxes                         | 4,386   | 3,968
Applicable statutory tax rate                        | 27.0%   | 27.0%
Income taxes computed at applicable statutory rates  | (1,184) | (1,071)
Non-taxable portion of gains (losses) on investments | 4       | (9)
Uncertain tax positions                              | 15      | 68
Effect of change in provincial corporate tax rate    | 27      | –
Change in estimate relating to prior periods         | 14      | 20
Non-taxable portion of equity losses                 | (20)    | (10)
Previously unrecognized tax benefits                 | 9       | –
Other                                                | 2       | 7
Total income taxes                                   | (1,133) | (995)
Average effective tax rate                           | 25.8%   | 25.1%

. Income Taxes
 table reconciles 27. 0% 2019 2018.
 taxes 2019 increased $138 million higher taxable income lower uncertain tax positions offset corporate income tax rate Alberta Q2 2019.
 YEAR ENDED DECEMBER 31
 Net earnings 3,253 2,973
 taxes 1,133
 before taxes 4,386
 tax rate 27. 0%.
 taxes rates (1,184) (1,071)
 Non-taxable gains investments
 Uncertain tax positions
 corporate tax rate
 Non-taxable equity losses
 unrecognized tax benefits
 Total income taxes (1,133) (995)
 Average effective tax rate 25. 8%.


Inventories
The components of inventories consist of the following (in millions):
Inventories are valued at the lower of cost and net realizable value using the first-in, first-out method. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable.

                  | March 31, |
----------------- | --------- | ------
                  | 2019      | 2018
Raw materials     | $74.5     | $26.0
Work in process   | 413.0     | 311.8
Finished goods    | 224.2     | 138.4
Total inventories | $711.7    | $476.2

Inventories
 valued lower cost net realizable value first-in first-out method. Inventory impairment charges new cost basis not reversed income.
 March 31, Raw materials $74. $26.
 Work process 413. 311.
 Finished goods 224. 138.
 Total inventories $711. $476.


Liquidity and Capital Resources
As of December 31, 2019, we had total current assets of approximately $27.1 million, compared with current liabilities of approximately $6.1 million, resulting in working capital of approximately $21.0 million and a current ratio of approximately 4.4 to 1. This compares with the working capital balance of approximately $11.5 million and the current ratio of 3.7 to 1 at December 31, 2018. This increase in working capital, as discussed in more detail below, is primarily the result of the capital we raised in 2019.
Following is a table with summary data from the consolidated statement of cash flows for the years ended December 31, 2019 and 2018, as presented.
Our operating activities used approximately $1.7 million in the year ended December 31, 2019, as compared with approximately $0.8 million provided by operating activities in the year ended December 31, 2018. The cash provided in 2018 was the result of our net income and non-cash expenses, partially offset by the increased working capital required to support higher revenues. The cash used in operations in 2019 was the result of increased levels of working capital required to support higher revenue levels, expenditures related to growth, and costs associated with our acquisition in 2019.
We used approximately $5.7 million in investing activities in the year ended December 31, 2018, as compared with approximately $10.6 million used in investing activities in the year ended December 31, 2019. The majority of the investing activities in 2018 related to our acquisition of CareSpeak communications in October 2018. The majority of investing in activities in 2019 related to our acquisitions of RMDY Health, Inc. in 2019, as well as a software purchase in 2019.
Financing activities provided $8.7 million in the year ended December 31, 2018, as compared with $22.2 million in the year ended December 31, 2019. The cash provided in 2018 was primarily the result of the equity raised in connection with our uplisting to Nasdaq, as well as from the proceeds of option exercises. The cash used in 2019 was the result of our underwritten offering in 2019, as well as from the proceeds of option exercises.
With our cash on hand, we have sufficient cash to operate our business for more than the next 12 months and we do not anticipate the need to raise additional equity for operating purposes.

                                                    | 2019         | 2018
--------------------------------------------------- | ------------ | -----------
Net cash provided by (used in) operating activities | $(1,660,796) | $792,555
Net cash used in investing activities               | (10,582,086) | (5,686,833)
Net cash provided by financing activities           | 22,181,528   | 8,685,739
Net increase in cash and cash equivalents           | $9,938,646   | $3,791,461

Liquidity Capital Resources
 December 31, 2019 assets $27. 1 million liabilities $6. 1 million working capital $21. 0 million ratio 4. 4 to 1. working capital balance $11. 5 million ratio 3. 7 to 1 December 31, 2018. increase working capital capital raised 2019.
 table data consolidated cash flows December 31, 2019 2018.
 operating activities used $1. 7 million 31, 2019 $0. 8 million 2018. cash 2018 net income non-cash expenses offset increased working capital revenues. cash 2019 increased working capital revenue expenditures growth costs acquisition 2019.
 used $5. 7 million investing 31, 2018 $10. 6 million 2019. majority 2018 acquisition CareSpeak communications. 2019 RMDY Health. software purchase.
 Financing activities provided $8. 7 million 2018 $22. 2 million 2019. cash 2018 equity raised uplisting Nasdaq proceeds option exercises. cash 2019 underwritten offering option exercises.
 operate business 12 months need raise additional equity.

 operating,660,796) $792,555
 investing (10,582,086) (5,686,833)
 financing 22,181,528 8,685,739
 cash $9,938,646 $3,791,461


Our Net Financial Position as of December 31, 2019 was a net cash position of $672 million, decreasing compared to the net cash position of $686 million at December 31, 2018.
At December 31, 2019, our financial debt was $2,072 million, composed of (i) $173 million of current portion of long-term debt and (ii) $1,899 million of long-term debt. The breakdown of our total financial debt included: (i) $1,354 million in the senior unsecured convertible bonds issued in 2017, (ii) $706 million in European Investment Bank loans (the “EIB Loans”), and (iii) $12 million in loans from other funding programs and other long-term loans.
The EIB Loans are comprised of three long-term amortizing credit facilities as part of our R&D funding programs. The first, signed in 2010, is a €350 million multi-currency loan to support our industrial and R&D programs. It was drawn mainly in U.S. dollars for an amount of $321 million and only partially in Euros for an amount of €100 million, of which $55 million remained outstanding as of December 31, 2019.
The second, signed in 2013, is a €350 million multi-currency loan which also supports our R&D programs. It was drawn in U.S. dollars for an amount of $471 million, of which $118 million is outstanding as of December 31, 2019. The third, signed in August 2017 for a total aggregate amount of €500 million in relation to R&D and capital expenditure investments in the European Union. It was fully drawn in Euros corresponding to $533 million outstanding as of December 31, 2019.

                                           |         | Year Ended December 31, |
------------------------------------------ | ------- | ----------------------- | -------
                                           | 2019    | 2018                    | 2017
                                           |         | (In millions)           |
Cash and cash equivalents                  | $2,597  | $2,266                  | $1,759
Restricted cash                            | 10      | —                       | —
Short-term deposits                        | 4       | —                       | —
Marketable securities                      | 133     | 330                     | 431
Total financial resources                  | 2,744   | 2,596                   | 2,190
Short-term debt, including bank overdrafts | (173)   | (146)                   | (118)
Long-term debt                             | (1,899) | (1,764)                 | (1,583)
Total financial debt                       | (2,072) | (1,910)                 | (1,701)
Net Financial Position                     | $672    | $686                    | $489

Net Financial Position December 31, 2019 $672 million $686 million 2018.
 financial debt $2,072 million $173 million current long-term $1,899 million long-term debt. debt $1,354 million senior unsecured convertible bonds 2017 $706 million European Investment Bank loans $12 million long-term loans.
 EIB Loans three long-term credit facilities R&D. first 2010, €350 million loan industrial R&D. U. S. dollars $321 million partially Euros €100 million $55 million outstanding 2019.
 second 2013, €350 million loan. U. S. dollars $471 million $118 million outstanding December 2019. third August 2017 €500 million R&D European Union. Euros $533 million outstanding December 31, 2019.
 December
 Cash equivalents $2,597 $2,266 $1,759
 Restricted cash
 Short-term deposits
 Marketable securities 133
resources 2,744 2,596,190
 Short-term debt overdrafts (173)
 Long-term debt (1,899)
 debt (2,072)
 $672 $686


Note 12. Liabilities
The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands):

                                                     | December 31, 2019 | December 31, 2018
---------------------------------------------------- | ----------------- | -----------------
Deferred rent                                        | $ —               | $11,656
Contingent consideration liability from acquisitions | 2,595             | —
Holdback liability from acquisitions                 | 1,650             | —
Other liabilities                                    | 3,244             | 1,650
Other liabilities                                    | $7,489            | $13,306

12. Liabilities
 accounts payable accrued expenses liabilities
 December 31, 2019 2018
 Deferred rent $11,656
 Contingent 2,595
 Holdback 1,650
 liabilities 3,244
 $7,489 $13,306


Balance sheet
(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details
Goodwill and intangible assets increased to €31.0 billion (2018: €29.5 billion) mainly as a result of acquisitions which contributed €1.2 billion and favourable currency impact of €0.5 billion driven by strengthening of the US Dollar and Pound Sterling.
In current assets, cash and cash equivalents increased by €1.0 billion. The increase is primarily due to strong cash delivery in several countries which will be used to repay short term debt in due course.
Current and non-current financial liabilities increased by €1.5 billion as a result of commercial paper issue and bank borrowings.
The net pension plan deficit was lower than prior year by €0.7 billion as
gains from investment performance exceeded the increase in liabilities.

                               | € million | € million
------------------------------ | --------- | -------------
                               | 2019      | 2018
                               |           | (Restated)(a)
Goodwill and intangible assets | 31,029    | 29,493
Other non-current assets       | 17,347    | 16,140
Current assets                 | 16,430    | 15,478
Total assets                   | 64,806    | 61,111
Current liabilities            | 20,978    | 20,150
Non-current liabilities        | 29,942    | 28,844
Total liabilities              | 50,920    | 48,994
Shareholders’ equity           | 13,192    | 11,397
Non-controlling interest       | 694       | 720
Total equity                   | 13,886    | 12,117
Total liabilities and equity   | 64,806    | 61,111

Balance sheet
 Restated IFRS 16. note 1 24
 Goodwill intangible assets increased €31. billion €29. billion acquisitions. billion currency. US Dollar Pound Sterling.
 cash equivalents increased €1. billion. strong cash delivery short term debt.
 non-current financial liabilities increased. billion commercial paper issue bank borrowings.
 net pension plan deficit lower. billion
 gains exceeded liabilities.
 Goodwill intangible assets 31,029 29,493
 non-current assets 17,347,140
 16,430
 64,806 61
 liabilities 20,978
 Non-current liabilities 29,942
 50,920
 Shareholders’ equity 13,192
 Non-controlling interest
 13,886
 64,806


3.1 OPERATING RESULTS
(1) Fiscal 2019 average foreign exchange rate used for translation was 1.3255 USD/CDN.
(2) 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.
(3) Fiscal 2019 actuals are translated at the average foreign exchange rate of fiscal 2018 which was 1.2773 USD/CDN.

Years ended August 31,                        | 2019 (1)  | 2018 (2)  | Change | Change in constant currency (3) | Foreign exchange impact (3)
--------------------------------------------- | --------- | --------- | ------ | ------------------------------- | ---------------------------
(in thousands of dollars, except percentages) | $         | $         | %      | %                               | $
Revenue                                       | 2,331,820 | 2,147,404 | 8.6    | 6.8                             | 37,433
Operating Expenses                            | 1,203,980 | 1,121,625 | 7.3    | 5.4                             | 21,636
Management fees – Cogeco Inc.                 | 19,900    | 18,961    | 5.0    | 5.0                             | -
Adjusted EBITDA                               | 1,107,940 | 1,006,818 | 10.0   | 8.5                             | 15,797
Adjusted EBITDA margin                        | 47.5%     | 46.9%     |        |                                 |

. OPERATING RESULTS
 Fiscal 2019 average foreign exchange rate. 3255 USD/CDN.
 2018 restated IFRS 15 change accounting policy reclassify results Cogeco 1 discontinued
 operations. consult "Accounting policies operations sections.
 Fiscal 2019 translated average foreign exchange rate 1. 2773 USD/CDN.
 Years ended August 31, constant currency Foreign exchange impact
 thousands
 Revenue 2,331,820 2,147,404 8.
 Operating Expenses 1,203,980 1,121,625.
 Management fees Cogeco. 18.
 Adjusted EBITDA 1,107,940 1,006,818.
 EBITDA margin. 5%. 9%


1.10 Percentage change in remuneration of the Group Chief Executive
The following table provides a summary of the 2019 increase in base salary, benefits and bonus for the Group Chief Executive compared to the average increase for the general UK employee population across the Group in the same period.
* 2018 percentage restated to include all UK bonuses for the general UK employee population across the Group.

         |                              | 2019 change | 2018 change
-------- | ---------------------------- | ----------- | -----------
Salary   | Group Chief Executive        | 7.7%        | 2.7%
         | General employee population  | 2.9%        | 2.7%
Benefits | Group Chief Executive        | 5.2%        | 3.2%
         | General employee population  | 2.9%        | 2.7%
Bonus    | Group Chief Executive        | 15.5%       | -4.9%
         | General employee population* | 22.2%       | 1.6%

. Percentage change remuneration Group Chief Executive
 table 2019 increase salary benefits bonus Group Chief Executive average UK employee population.
 2018 percentage bonuses.
 2019 2018
 Salary Chief Executive 7. 7% 2. 7%
 population 2.
 Benefits 5. 2% 3. 2%
 2. 9%.
 Bonus 15. 5%. 9%
 employee population 22. 2% 1. 6%


12. Geographic Information
The following table depicts the disaggregation of revenue by geographic region based on the ship to location of our customers and is consistent with how we evaluate our financial performance (in thousands)

                              |          | Years Ended December 31, |
----------------------------- | -------- | ------------------------ | --------
                              | 2019     | 2018                     | 2017
Americas                      | $89,944  | $112,506                 | $122,893
Japan                         | 59,454   | 55,205                   | 51,488
Asia Pacific, excluding Japan | 35,689   | 36,897                   | 33,189
EMEA                          | 27,541   | 27,615                   | 27,859
Total                         | $212,628 | $232,223                 | $235,429

.
 table revenue region financial performance
 Ended December 31,
 Americas $89,944 $112,506 $122,893
 Japan 59,454 55,205 51,488
 Asia Pacific 35,689 36,897 33,189
 EMEA 27,541 27,615 27,859
 $212,628 $232,223 $235,429