Other Acquisitions, Divestitures and Investments
On June 15, 2018, we acquired all the outstanding minority interests in a third party for $6.9 million. We initially acquired a controlling interest in the third party in April 2015. Therefore, this transaction was treated as an equity transaction, and the cash payment is reported as part of cash flow from financing activities in the consolidated statement of cash flows for the year ended December 31, 2018.
On April 2, 2018, we sold substantially all of the assets of the Allscripts’ business providing hospitals and health systems document and other content management software and services generally known as “OneContent” to Hyland Software, Inc., an Ohio corporation (“Hyland”). Allscripts acquired the OneContent business during the fourth quarter of 2017 through the acquisition of the EIS Business (as defined below). Certain assets of Allscripts relating to the OneContent business were excluded from the transaction and retained by Allscripts.
In addition, Hyland assumed certain liabilities related to the OneContent business. The total consideration for the OneContent business was $260 million, which was subject to certain adjustments for liabilities assumed by Hyland and net working capital. We realized a pre-tax gain upon sale of $177.9 million which is included in the “Gain on sales of businesses, net” line in our consolidated statements of operations for the year ended December 31, 2018.
On March 15, 2018, we contributed certain assets and liabilities of our Strategic Sourcing business unit, acquired as part of the acquisition of the EIS Business in 2017, into a new entity together with $2.7 million of cash as additional consideration. In exchange for our contributions, we obtained a 35.7% interest in the new entity, which was valued at $4.0 million, and is included in Other assets in our consolidated balance sheet as of December 31, 2018.
This investment is accounted for under the equity method of accounting. As a result of this transaction, we recognized an initial pre-tax loss of $0.9 million and $4.7 million in additional losses due to measurement period adjustments upon the finalization of carve-out balances, mainly related to accounts receivable. These losses are included on the “Gain on sale of businesses, net” line in our consolidated statements of operations for the year ended December 31, 2018.
On February 6, 2018, we acquired all of the common stock of a cloud-based analytics software platform provider for a purchase price of $8.0 million in cash. The allocation of the consideration is as follows: $1.1 million of intangible assets related to technology; $0.6 million to customer relationships; $6.6 million of goodwill; $0.8 million to accounts receivable; deferred revenue of $0.6 million and $0.5 million of long-term deferred income tax liabilities.
The allocation was finalized in the fourth quarter of 2018. The acquired intangible asset related to technology will be amortized over 8 years using a method that approximates the pattern of economic benefits to be gained from the intangible asset. The customer relationship was amortized over one year. The goodwill is not deductible for tax purposes. The results of operations of this acquisition were not material to our consolidated financial statements.
The following table summarizes our other equity investments which are included in other assets in the accompanying consolidated balance sheets: (1) Allscripts share of the earnings of our equity method investees is reported based on a one quarter lag.
During 2018, we acquired certain non-marketable equity securities of two third parties and entered into a commercial agreement with one of the third parties for total consideration of $11.7 million. During 2018, we also acquired a $1.8 million non-marketable convertible note of a third party. These investments are recorded in the Other asset caption within the consolidated balance sheets.
It is not practicable to estimate the fair value of our equity investments primarily because of their illiquidity and restricted marketability as of December 31, 2019. The factors we considered in trying to determine fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and the issuer’s subsequent or planned raises of capital.

                                               |                                          |               | Carrying Value at |
---------------------------------------------- | ---------------------------------------- | ------------- | ----------------- | -----------------
(In thousands, except for number of investees) | Number of Investees at December 31, 2019 | Original Cost | December 31, 2019 | December 31, 2018
Equity method investments (1)                  | 5                                        | $ 7,407       | $ 11,332          | $ 10,667
Cost less impairment                           | 9                                        | 43,874        | 32,462            | 25,923
Total long-term equity investments             | 14                                       | $ 51,281      | $ 43,794          | $ 36,590

Acquisitions Divestitures Investments
 June 15, 2018 acquired minority interests third party $6. 9 million. acquired controlling interest April 2015. transaction equity transaction cash payment cash flow financing December 31, 2018.
 April 2, 2018 sold assets Allscripts’ business Hyland Software Inc. Ohio corporation. acquired OneContent fourth quarter 2017. assets excluded retained Allscripts.
 Hyland assumed liabilities OneContent. total $260 million subject adjustments liabilities capital. pre-tax gain sale $177. 9 million “Gain sales consolidated statements December 31, 2018.
 March 15, 2018 contributed assets liabilities Strategic Sourcing 2017 new entity $2. 7 million cash. obtained 35. 7% interest new entity valued $4. 0 million included assets consolidated balance sheet December 31, 2018.
 accounted equity method accounting. initial pre-tax loss $0. 9 million $4.7 million losses adjustments accounts receivable. included sale businesses statements December 31, 2018.
 February 6, 2018 acquired common stock cloud software $8. 0 million cash. allocation $1. 1 million intangible assets technology $0. 6 million customer relationships $6. 6 million goodwill $0. 8 million accounts receivable deferred revenue $0. 6 million $0. 5 million long-term deferred income tax liabilities.
 finalized fourth quarter 2018. intangible asset amortized 8 years. customer relationship amortized one year. goodwill not deductible tax. results not material financial statements.
 other equity investments quarter.
 acquired non-marketable equity securities commercial agreement $11. 7 million. $1. 8 million non-marketable convertible note third party. Other asset.
 estimate fair value investments illiquidity restricted marketability as December 31, 2019.factors fair value financial information obligations raises capital.
 Carrying Value
 thousands investees December 31, 2019 Original Cost
 Equity investments 5 $ $ 11,332 $ 10,667
 Cost less impairment 9 43,874 32,462 25,923
 long-term equity investments 14 $ 51,281 $ 43,794 $ 36,590


Employee Stock Purchase Plan
Eligible employees are offered shares through a 24-month offering period, which consists of four consecutive 6-month purchase periods. Employees may purchase a limited number of shares of the Company’s stock at a discount of up to 15% of the lesser of the market value at the beginning of the offering period or the end of each 6-month purchase period. On September 13, 2018, the ESPP was amended to increase the shares reserved for issuance by 2 million shares of common stock. As of April 26, 2019, 7 million shares were available for issuance. The following table summarizes activity related to the purchase rights issued under the ESPP (in millions):

                                 |                | Year Ended     |
-------------------------------- | -------------- | -------------- | --------------
                                 | April 26, 2019 | April 27, 2018 | April 28, 2017
Shares issued under the ESPP     | 3              | 4              | 4
Proceeds from issuance of shares | $ 96           | $ 85           | $ 80

Employee Stock Purchase Plan
 employees offered shares 24-month period four 6-month periods. purchase limited shares discount 15% market value end. September 13, 2018 ESPP 2 million shares. April 26, 2019 7 million shares available issuance. table summarizes activity purchase rights
 April 26, 2019 27, 2018 April 28, 2017
 Shares issued ESPP
 Proceeds issuance $ 96 $ 85 $ 80


NOTE 7—ACCOUNTS RECEIVABLE
The components of accounts receivable are as follows (in thousands):
Amounts billed include $60.3 million and $80.5 million due on U.S. federal government contracts at September 30, 2019 and 2018, respectively. As further described in Note 2, effective October 1, 2018, the component of accounts receivable that consisted of unbilled contract receivables as reported under ASC 605 has been reclassified as contract assets under ASC 606.
In our normal course of business, we may sell trade receivables to financial institutions as a cash management technique. We do not retain financial or legal obligations for these receivables that would result in material losses. Our ongoing involvement is limited to the remittance of customer payments to the financial institutions with respect to the sold trade receivables; therefore, our sold trade receivables are not included in our Consolidated Balance Sheet in any period presented. As of September 30, 2019, we sold $31.1 million of outstanding trade receivables to financial institutions.

                                         | September 30, |
---------------------------------------- | ------------- | ----------
                                         | 2019          | 2018
Accounts receivable                      |               |
Billed                                   | $  127,406    | $  156,948
Unbilled                                 | —             | 242,877
Allowance for doubtful accounts          | (1,392)       | (1,324)
Total accounts receivable                | 126,014       | 398,501
Less estimated amounts not currently due | —             | (6,134)
Current accounts receivable              | $  126,014    | $ 392,367

7—ACCOUNTS RECEIVABLE
 components
 $60. 3 million $80. 5 million. federal government contracts September 30, 2019 2018. October 1, 2018 unbilled contract receivables ASC 605 reclassified ASC 606.
 sell receivables cash. retain obligations. limited remittance payments sold not included Consolidated Balance Sheet. September 30, 2019 sold $31. 1 million receivables.
 2019 2018
 Accounts receivable
 Billed $ 127,406 $ 156,948
 Unbilled 242,877
 doubtful accounts (1,392
 Total accounts receivable 126,014 398,501
 estimated amounts not due
 Current accounts receivable $ 126,014 $,367


10. Accrued Liabilities
Accrued liabilities at April 30, 2019 and 2018, respectively, consisted of the following (in thousands):

                                | 2019   | 2018
------------------------------- | ------ | ------
Vacation and other compensation | $1,659 | $1,433
Incentive compensation          | 346    | 411
Payroll taxes                   | 155    | 113
Deferred revenue                | -      | 68
Warranty reserve                | 529    | 520
Commissions                     | 378    | 307
Other                           | 504    | 564
                                | $3,571 | $3,416

. Accrued Liabilities
 April 30 2019 2018
 Vacation compensation $1,659 $1,433
 Incentive compensation 411
 Payroll taxes
 Deferred revenue
 Warranty reserve
 Commissions 307
 $3,571 $3,416


Note 6: Equity Method Investments
The following table provides a reconciliation of equity method investments to the Company's Consolidated Balance Sheets (amounts in thousands):
TOKIN's Joint Ventures - NYC and NTS
As noted in Note 2, “Acquisitions,” on April 19, 2017, the Company completed its acquisition of the remaining 66% economic interest in TOKIN and TOKIN became a 100% owned subsidiary of KEMET. TOKIN had two investments at the time of acquisition: NYC and NTS. The Company accounts for both investments using the equity method due to the related nature of operations and the Company's ability to influence management decisions.
NYC was established in 1966 by TOKIN and Mitsui Mining and Smelting Co., Ltd (“Mitsui”). NYC was established to commercialize yttrium oxides and the Company owns 30% of NYC's stock. The carrying amount of the Company's equity investment in NYC was $8.2 million and $8.1 million as of March 31, 2019 and 2018, respectively.
NTS was established in 2004 by TOKIN, however subsequent to its formation, TOKIN sold 67% of its stock. NTS provides world-class electronic devices by utilizing global procurement networks and the Company owns 33% of NTS' stock. During the year ended March 31, 2019, a significant portion of NTS' sales were TOKIN’s products. The carrying amount of the Company's equity investment in NTS was $1.2 million and $1.0 million as of March 31, 2019 and 2018, respectively.

                                                                  | March 31, |
----------------------------------------------------------------- | --------- | -------
                                                                  | 2019      | 2018
Nippon Yttrium Co., Ltd ("NYC")                                   | $8,215    | $8,148
NT Sales Co., Ltd ("NTS")                                         | 1,218     | 998
Novasentis                                                        | 977       | 2,870
KEMET Jianghai Electronics Components Co., Ltd (“KEMET Jianghai”) | 2,515     | —
                                                                  | $12,925   | $12,016

Equity Method Investments
 table equity investments Consolidated Balance Sheets
 TOKIN's Joint Ventures NYC NTS
 April 19, 2017 66% interest TOKIN 100% owned subsidiary KEMET. two investments NYC NTS. accounts investments equity method management decisions.
 NYC established 1966 TOKIN Mitsui Mining Smelting. oxides owns 30% stock. equity investment $8. 2 million $8. 1 million March 31, 2019 2018.
 NTS established 2004 TOKIN sold 67% stock. NTS electronic devices owns 33% stock. March 31, 2019 NTS sales TOKIN’s products. equity investment NTS $1. 2 million $1. 0 million March 31, 2019 2018.
 Nippon Yttrium. $8,215 $8,148
.
 KEMET Jianghai Electronics Components.
 $12,925 $12,016


The difference between the tax provision at the statutory federal income tax rate and the tax provision as a percentage of income before income taxes (effective tax rate) for each period was as follows:
The majority of the increase in our effective tax rate in 2019 compared to 2018 was driven by one-time benefits that occurred in 2018.
The majority of the decrease in our effective tax rate in 2018 compared to 2017 resulted from initial tax expense from Tax Reform and the tax impacts from the ISecG divestiture that we had in 2017, but not in 2018. The reduction of the U.S. statutory rate, combined with the net impact of the enactment or repeal of specific tax law provisions through Tax Reform, drove the remaining decrease in our effective tax rate in 2018.
We derive the effective tax rate benefit attributed to non-U.S. income taxed at different rates primarily from our operations in China, Hong Kong, Ireland, and Israel. The statutory tax rates in these jurisdictions range from 12.5% to 25.0%. In addition, we are subject to reduced tax rates in China and Israel as long as we conduct certain eligible activities and make certain capital investments. These conditional reduced tax rates expire at various dates through 2026 and we expect to apply for renewals upon expiration.

Years Ended                                  | Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017
-------------------------------------------- | ------------ | ------------ | ------------
Statutory federal income tax rate            | 21.0%        | 21.0%        | 35.0%
Increase (reduction) in rate resulting from: |              |              |
Non-U.S. income taxed at different rates     | (3.7)        | (3.6)        | (7.6)
Research and development tax credits         | (2.3)        | (2.7)        | (2.3)
Domestic manufacturing deduction benefit     | —            | —            | (1.3)
Foreign derived intangible income benefit    | (3.2)        | (3.7)        | —
Tax Reform                                   | —            | (1.3)        | 26.8
ISecG divestiture                            | —            | —            | 3.3
Other                                        | 0.7          | (0.1)        | (1.1)
Effective tax rate                           | 12.5%        | 9.7%         | 52.8%

difference statutory federal rate income before taxes rate
 majority increase tax rate 2019 2018 driven by one-time benefits 2018.
 decrease 2018 from tax expense Tax Reform impacts ISecG divestiture 2017 not 2018. reduction U. S. statutory rate tax law Tax Reform drove remaining decrease 2018.
 tax rate benefit non-U. S. income from China Hong Kong Ireland Israel. statutory tax rates range 12. 5% to 25. 0%. subject to reduced tax rates China Israel activities capital investments. reduced tax rates expire through 2026 expect apply renewals expiration.
 Dec 28, 2019 Dec 29, 2018 30, 2017
 Statutory federal income tax rate 21.
 Increase rate from
 Non-U. S. income taxed different rates.
 Research development tax credits.
 Domestic manufacturing deduction benefit.
 Foreign derived intangible income benefit.
 Tax Reform.
 ISecG divestiture.
.
 tax rate 12. 5%.


3. Restructuring and Other Charges, Net
Net restructuring and other charges consisted of the following:

                                     |       |               | Fiscal
------------------------------------ | ----- | ------------- | ------
                                     | 2019  | 2018          | 2017
                                     |       | (in millions) |
Restructuring charges, net           | $ 255 | $ 140         | $ 146
Gain on divestiture                  | —     | (2)           | —
Other charges (credits), net         | —     | (12)          | 1
Restructuring and other charges, net | $ 255 | $ 126         | $ 147

. Restructuring Charges
 Fiscal
 2019 2018 2017
 millions
 Restructuring charges net $ 255  $ 140  $ 146
 Gain divestiture
 Other charges net
 $ 255  $ 126  $ 147


Note 13. INCOME TAXES
In the year ended December 29, 2019, our income tax provision of $26.6 million on a profit before income taxes and equity in earnings (losses) of unconsolidated investees of $26.0 million was primarily due to tax expense in foreign jurisdictions that were profitable. In the year ended December 30, 2018, our income tax provision of $1.0 million on a loss before income taxes and equity in earnings of unconsolidated investees of $898.7 million was primarily due to tax expense in foreign jurisdictions that were profitable, offset by tax benefit related to release of valuation allowance in a foreign jurisdiction, and by a release of tax reserves due to lapse of statutes of limitation.
The geographic distribution of income (loss) from continuing operations before income taxes and equity earnings (losses) of unconsolidated investees and the components of provision for income taxes are summarized below:

                                                                                |                   | Fiscal Year       |
------------------------------------------------------------------------------------------------------------------------------------------- | ----------------- | ----------------- | -----------------
(In thousands)                                                                                | December 29, 2019 | December 30, 2018 | December 31, 2017
Geographic distribution of income (loss) from continuing operations before income taxes and equity in earnings of unconsolidated investees: |                   |                   |
U.S. loss                                                                                | $(84,071)         | $(778,316)        | $(1,242,000)
Non-U.S. income (loss)                                                                                | 110,040           | (120,355)         | 41,250
Income (loss) before income taxes and equity in earnings (loss) of unconsolidated investees                                                 | $25,969           | $(898,671)        | $(1,200,750)
Provision for income taxes:                                                                                |                   |                   |
Current tax (expense) benefit                                                                                |                   |                   |
Federal                                                                                | $(328)            | $(1,155)          | $6,816
State                                                                                | (370)             | (553)             | 6,575
Foreign                                                                                | (24,588)          | (4,100)           | (12,074)
Total current tax (expense) benefit                                                                                | (25,286)          | (5,808)           | 1,317
Deferred tax (expense) benefit                                                                                |                   |                   |
Federal                                                                                | (100)             | —                 | —
State                                                                                | —                 | —                 | 1,450
Foreign                                                                                | (1,245)           | 4,798             | 1,177
Total deferred tax (expense) benefit                                                                                | (1,345)           | 4,798             | 2,627
(Provision for) benefit from income taxes                                                                                | (26,631)          | $(1,010)          | $3,944

. INCOME TAXES
 December 29, 2019 income tax provision $26. 6 million profit equity earnings $26. 0 million due expense foreign jurisdictions profitable. December 30 2018 income tax provision $1. 0 million loss equity earnings $898. 7 million tax expense foreign jurisdictions offset tax benefit valuation allowance tax reserves statutes limitation.
 geographic distribution income equity earnings
 Fiscal Year
 December 29, 2019 December 30, 2018 December 31, 2017
 distribution
. loss $(84,071) $(778,316) $(1,242,000)
 Non-U. income 110,040 (120,355),250
 Income taxes equity earnings investees $25,969 $(898,671) $(1,200,750)
 Provision taxes
 tax benefit
 Federal $(328)
 State
 Foreign (24,588 (4 (12,074)
tax (25,286) (5,808) 1,317
 Deferred tax
 Federal
 1,450
 Foreign (1,245) 4,798
 deferred tax (1,345 4,798 2,627
 (26,631) $3,944


Foreign Currency Risk
The Group is exposed to translation and transaction foreign exchange risk. Several other currencies in addition to the reporting currency of US dollar are used, including sterling and the euro. The Group experiences currency exchange differences arising upon retranslation of monetary items (primarily short-term inter-Company balances and long-term borrowings), which are recognised as an expense in the period the difference occurs. The Group endeavours to match cash inflows and outflows in the various currencies; the Group typically invoices its customers in their local currency and pays its local expenses in local currency, as a means to mitigate this risk.
The Group is also exposed to exchange differences arising from the translation of its subsidiaries’ Financial Statements into the Group’s reporting currency of US dollar, with the corresponding exchange differences taken directly to equity.
The following table illustrates the movement that ten per cent in the value of sterling or the euro against the US dollar would have had on the Group’s profit or loss for the period and on the Group’s equity as at the end of the period.
Any foreign exchange variance would be recognised as unrealised foreign exchange in the Consolidated Statement of Profit or Loss and have no impact on cash flows.

                                            | Year-ended 31 March 2019 | Year-ended 31 March 2018
------------------------------------------- | ------------------------ | ------------------------
                                            | $M                       | $M
10% movement in sterling to US dollar value |                          |
Profit or loss                              | 1.7                      | 5.1
Equity                                      | 33.8                     | 37.4
10% movement in euro to US dollar value     |                          |
Profit or loss                              | 1.5                      | 7.5
Equity                                      | (9.8)                    | (10.8)

Foreign Currency Risk
 Group exposed to translation transaction foreign exchange risk. other currencies US used including sterling euro. Group experiences currency exchange differences retranslation items short balances long-term recognised as expense. Group cash inflows outflows currencies invoices customers local pays expenses risk.
 exposed to exchange differences translation subsidiaries’ Financial Statements US dollar equity.
 table illustrates movement ten per cent value sterling euro against US dollar profit loss equity.
 foreign exchange variance unrealised Consolidated Statement Profit Loss no impact on cash flows.
 Year-ended 31 March 2019 31 March 2018
 10% movement sterling to US dollar value
 loss.
.
 10% movement euro to US dollar value
.
.


15. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
During the quarter ended December 31, 2019, we purchased a group annuity contract to transfer the pension benefit obligations and annuity administration for a select group of retirees or their beneficiaries to an annuity provider. As a result of the transfer of the pension liability to the annuity provider and other lump sum payments to participants of the Pension Plans, we recognized a non-cash pension settlement charge of $6.7 million during the quarter ended December 31, 2019.
In 2019, we recognized a gain on extinguishment of debt from the partial repurchase of our Senior Notes of $0.3 million, $1.1 million and $3.1 million during the quarters ended June 30, 2019, September 30, 2019, and December 31, 2019, respectively.
As part of our integration efforts of FairPoint and continued cost saving initiatives, we incurred severance costs of $8.7 million during the quarter ended December 31, 2019.

                                                      |           | Quarter Ended                            |               |
----------------------------------------------------- | --------- | ---------------------------------------- | ------------- | ------------
2019                                                  | March 31, | June 30,                                 | September 30, | December 31,
                                                      |           | (In thousands, except per share amounts) |               |
Net revenues                                          | $338,649  | $333,532                                 | $333,326      | $331,035
Operating income                                      | $16,720   | $14,300                                  | $23,542       | $26,719
Net income (loss) attributable to common stockholders | $(7,265)  | $(7,387)                                 | $257          | $(5,988)
Basic and diluted earnings (loss) per share           | $(0.11)   | $(0.10)                                  | $—            | $(0.08)

. QUARTERLY FINANCIAL INFORMATION
 quarter December 31, 2019 purchased group annuity contract pension benefit obligations administration retirees provider. recognized non pension settlement charge $6. 7 million.
 recognized gain extinguishment debt repurchase Senior Notes $0. 3 million $1. 1 million $3. 1 million June 30 September 30 December 31, 2019.
 incurred severance costs $8. 7 million.
 Quarter Ended
 March 31, June 30 September December 31,
 Net revenues $338,649 $333,532
 Operating income $16,720 $14,300 $23,542
 Net income (loss common stockholders $(7,265) $(7,387) $(5,988)
 Basic diluted earnings (loss) per share.


4. SEGMENT INFORMATION
During the 2019 and 2018 financial years, the Group operated wholly within one business segment being the operation and management of storage centres in Australia and New Zealand.
The Managing Director is the Group’s chief operating decision maker and monitors the operating results on a portfolio wide basis. Monthly management reports are evaluated based upon the overall performance of NSR consistent with the presentation within the consolidated financial statements. The Group’s financing (including finance costs and finance income) are managed on a Group basis and not allocated to operating segments.
The operating results presented in the statement of profit or loss represent the same segment information as reported in internal management information.
The revenue information above excludes interest income and is based on the location of storage centres.

                                | 2019    | 2018
------------------------------- | ------- | -------
                                | $'000   | $'000
Revenue from external customers |         |
Australia                       | 144,621 | 129,431
New Zealand                     | 13,036  | 8,912
Total                           | 157,657 | 138,343

. SEGMENT INFORMATION
 2019 2018 years Group operated storage centres Australia New Zealand.
 Managing Director monitors results. Monthly reports evaluated performance NSR consolidated financial statements. financing costs income managed not allocated segments.
 results represent internal management.
 revenue excludes interest income based location storage centres.
 2018
 $'000
 Revenue external customers
 Australia 144,621 129,431
 New Zealand 13,036
 Total 157,657 138,343


Discussion of the Results of Operations for the years ended December 31, 2019, 2018, and 2017
Revenues
Subscription Solutions
Subscription solutions revenues increased $177.2 million, or 38.1%, for the year ended December 31, 2019 compared to the same period in 2018. Subscription solutions revenues increased $155.0 million, or 50.0%, for the year ended December 31, 2018 compared to the same period in 2017. The increase in both periods was primarily a result of growth in MRR driven by the higher number of merchants using our platform.
Merchant Solutions
Merchant solutions revenues increased $327.7 million, or 53.9%, for the year ended December 31, 2019 compared to the same period in 2018. The increase in merchant solutions revenues was primarily a result of Shopify Payments revenue growing by $239.6 million, or 53.3%, in 2019 compared to the same period in 2018. This increase was a result of an increase in the number of merchants using our platform, continued expansion into new geographical regions, and an increase in adoption of Shopify Payments by our merchants, which drove $9.1 billion of additional GMV facilitated using Shopify Payments in 2019 compared to the same period in 2018. For the year ended December 31, 2019, the Shopify Payments penetration rate was 42.1%, resulting in GMV of $25.7 billion that was facilitated using Shopify Payments. This compares to a penetration rate of 40.4%, resulting in GMV of $16.6 billion that was facilitated using Shopify Payments in the same period in 2018. As at December 31, 2019 Shopify Payments adoption among our merchants was as follows: United States, 91%; Canada, 90%; Australia, 89%; United Kingdom, 88%; Ireland, 84%; New Zealand, 76%; and other countries where Shopify Payments is available, 70%. Merchant solutions revenues increased $327.7 million, or 53.9%, for the year ended December 31, 2019 compared to the same period in 2018. The increase in merchant solutions revenues was primarily a result of Shopify Payments revenue growing by $239.6 million, or 53.3%, in 2019 compared to the same period in 2018. This increase was a result of an increase in the number of merchants using our platform, continued expansion into new geographical regions, and an increase in adoption of Shopify Payments by our merchants, which drove $9.1 billion of additional GMV facilitated using Shopify Payments in 2019 compared to the same period in 2018. For the year ended December 31, 2019, the Shopify Payments penetration rate was 42.1%, resulting in GMV of $25.7 billion that was facilitated using Shopify Payments. This compares to a penetration rate of 40.4%, resulting in GMV of $16.6 billion that was facilitated using Shopify Payments in the same period in 2018. As at December 31, 2019 Shopify Payments adoption among our merchants was as follows: United States, 91%; Canada, 90%; Australia, 89%; United Kingdom, 88%; Ireland, 84%; New Zealand, 76%; and other countries where Shopify Payments is available, 70%.
In addition to the increase in revenue from Shopify Payments, revenue from transaction fees, referral fees from partners, Shopify Capital, and Shopify Shipping increased during the year ended December 31, 2019 compared to the same period in 2018, as a result of the increase in GMV facilitated through our platform.
Merchant solutions revenues increased $245.0 million, or 67.4%, for the year ended December 31, 2018 compared to the same period in 2017. The increase in merchant solutions revenues was primarily a result of Shopify Payments revenue growing by $176.0 million, or 64.4%. Additionally, revenue from transaction fees, referral fees from partners, Shopify Capital, and Shopify Shipping increased for the year ended December 31, 2018 compared to the same period in 2017.

                        | Years ended December 31,           |            |          | 2019 vs 2018 | 2018 vs 2017
----------------------- | ---------------------------------- | ---------- | -------- | ------------ | ------------
                        | 2019                               | 2018       | 2017     | % Change     | % Change
                        | (in thousands, except percentages) |            |          |              |
Revenues:               |                                    |            |          |              |
Subscription solutions  | $642,241                           | $464,996   | $310,031 | 38.1%        | 50.0%
Merchant solutions      | 935,932                            | 608,233    | 363,273  | 53.9%        | 67.4%
                        | $1,578,173                         | $1,073,229 | $673,304 | 47.0%        | 59.4%
Percentage of revenues: |                                    |            |          |              |
Subscription solutions  | 40.7%                              | 43.3%      | 46.0%    |              |
Merchant solutions      | 59.3 %                             | 56.7 %     | 54.0 %   |              |
Total revenues          | 100.0 %                            | 100.0 %    | 100.0 %  |              |

Results Operations December 31, 2019 2018 2017
 Revenues
 Subscription Solutions
 increased $177. 2 million 38. 1% December 2019 2018. increased $155. 0 million 50. 0% 2018 2017. increase growth MRR higher merchants platform.
 Merchant Solutions
 revenues increased $327. 7 million 53. 9% December 2019. Shopify Payments revenue $239. 6 million 53. 3% 2019. merchants platform expansion regions Shopify Payments $9. 1 billion additional GMV 2019. 2019 Shopify Payments penetration rate 42. 1% GMV $25. 7 billion. penetration 40. 4% GMV $16. 6 billion 2018. 2019 Shopify Payments adoption United States 91% Canada 90% Australia 89% United Kingdom 88% Ireland 84% New Zealand 76% other countries 70%. Merchant solutions revenues increased $327. 7 million 53. 9% December 2019. Shopify Payments revenue $239. 6 million 53. 3% 2019.increase merchants using platform expansion regions adoption Shopify Payments $9. 1 billion additional GMV 2019 2018. December 31, 2019 Shopify Payments penetration rate 42. 1% GMV $25. 7 billion. compares to penetration 40. 4% GMV $16. 6 billion 2018. December 31, 2019 Shopify Payments United States 91% Canada 90% Australia 89% United Kingdom 88% Ireland 84% New Zealand 76% other countries 70%.
 Shopify Payments transaction fees referral fees partners Shopify Capital Shopify Shipping increased 2019 GMV.
 Merchant solutions revenues increased $245. 0 million 67. 4% December 31, 2018 compared 2017. result Shopify Payments revenue $176. 0 million 64. 4%. revenue transaction fees referral fees partners Shopify Capital Shopify Shipping increased 2018 2017.
 2019 2018 2017
 % Change
 Revenues
Subscription $642,241 $464,996 $310,031 38. 50.
 Merchant 935,932 608,233 363,273 53. 67. 4%
 $1,578,173 $1,073,229 $673,304 47. 59. 4%
 40. 43. 46.
 59. 3 56. 7 54.
 100.


GAINS (LOSSES) ON EQUITY INVESTMENTS AND INTEREST AND OTHER, NET
GAINS (LOSSES) ON EQUITY INVESTMENTS, NET
Ongoing mark-to-market net gains and losses reported in 2019 and 2018 were primarily driven by ASML Holding N.V. (ASML) and Cloudera Inc. (Cloudera). During 2019 we sold our equity investment in ASML.
In 2019, we recognized $293 million in observable price adjustments primarily from one investment.
During 2018, we recognized an impairment charge of $290 million in our equity method investment in IMFT. During 2017, we recognized impairment charges in our investments of Cloudera for $278 million and Unisoc for $308 million.
Major drivers of sales of equity investments and other in 2019 were dividends of $632 million from McAfee and a gain of $107 million from our sale of our non-controlling interest in IMFT. In 2017, we recognized $3.4 billion in realized gains on sales of a portion of our interest in ASML.
INTEREST AND OTHER, NET
We recognized a higher net gain in interest and other in 2019 compared to 2018, primarily due to lower loss on debt conversions and larger divestiture gains in 2019 compared to 2018.
We recognized a net gain in interest and other in 2018 compared to a net loss in 2017, primarily due to lower losses on debt conversions, higher assets under construction resulting in more capitalized interest, and larger divestiture gains in 2018 compared to 2017.

Years Ended                                                        | Dec 28, | Dec 29, | Dec 30,
------------------------------------------------------------------ | ------- | ------- | -------
(In Millions)                                                      | 2019    | 2018    | 2017
Ongoing mark-to market adjustments on marketable equity securities | $277    | $(129)  | $ —
Observable price adjustments on non-marketable equity securities   | 293     | 202     | —
Impairment charges                                                 | (122)   | (424)   | (833)
Sale of equity investments and other                               | 1,091   | 226     | 3,484
Gains (losses) one equity investments, net                         | $1,539  | $(125)  | $2,651
Interest and other, net                                            | $484    | $126    | $(349)

GAINS (LOSSES EQUITY INVESTMENTS
 gains losses 2019 2018 driven by ASML Holding. Cloudera. 2019 sold equity investment ASML.
 recognized $293 million price adjustments investment.
 2018 impairment charge $290 million IMFT. 2017 charges Cloudera $278 million Unisoc $308 million.
 2019 dividends $632 million McAfee gain $107 million sale non interest IMFT. $3. 4 billion gains sales interest ASML.
 higher net gain 2019 lower loss debt conversions larger divestiture gains.
 net gain 2017 lower losses debt higher assets construction capitalized larger divestiture gains.
 30
 2019 2018 2017
 adjustments equity securities $277
 price adjustments non-marketable equity securities 293 202
 Impairment charges (122) (424) (833)
 Sale equity investments 1,091 226 3,484
equity $1,539 $2,651
 Interest $484 $126 $(349)


Cash and cash equivalents decreased by $78.9 million during the year ended March 31, 2019, as compared to an increase of $177.1 million during the year ended March 31, 2018 and an increase of $44.8 million during the year ended March 31, 2017 as follows (amounts in thousands):
(1) Fiscal years ended March 31, 2018 and 2017 adjusted due to the adoption of ASC 606.
(2) Fiscal year ended March 31, 2018 adjusted due to the adoption of ASC 606.
Operating Cash Flow Activities
During fiscal years 2019, 2018, and 2017, cash provided by operating activities totaled $131.7 million, $120.8 million, and $71.7 million, respectively. During fiscal year 2019, cash provided by operating activities was positively impacted by our net income of $206.6 million, a $7.7 million increase in accounts payable, and a $1.0 million decrease in accrued income taxes. Operating cash flows were negatively impacted by a $70.6 million decrease in other operating liabilities, a $42.8 million increase in inventories, an $8.9 million increase in accounts receivable, and a $4.4 million increase in prepaid expenses and other assets. The decrease in other operating liabilities was driven by a $46.3 million decrease in accruals for TOKIN anti-trust fines and a $7.8 million decrease in restructuring liabilities. The increase in inventory is due to increased customer demand.
During fiscal year 2018, cash provided by operating activities was positively impacted by our net income of $254.1 million. Excluding the acquired balances from TOKIN, operating cash flows were also positively impacted by a $30.2 million decrease in accounts receivable, a $4.3 million decrease in prepaid expenses and other assets, and a $1.3 million increase in accrued income taxes. Excluding the acquired balances from TOKIN, operating cash flows were negatively impacted by a $16.1 million decrease in accounts payable and a $13.8 million increase in inventories.
During fiscal year 2017, cash provided by operating activities was positively impacted by our net income of $47.2 million, a $16.8 million decrease in inventories, a $6.2 million increase in accounts payable, and a $1.7 million increase in other operating liabilities. Operating cash flows were negatively impacted by a $2.6 million increase in accounts receivable and a $1.8 million increase in prepaid expenses and other assets.
Investing Cash Flow Activities
During fiscal years 2019, 2018, and 2017, cash provided by (used in) investing activities totaled $(147.0) million, $102.4 million, and $(25.6) million, respectively. During fiscal year 2019, cash used in investing activities included capital expenditures of $146.1 million, primarily related to expanding capacity at our manufacturing facilities in Mexico, Portugal, China, Thailand and Japan, as well as information technology projects in the United States and Mexico. $16.3 million of the $146.1 million in capital expenditures were related to the Customer Capacity Agreements. Additionally, the Company invested $4.0 million in the form of capital contributions to KEMET Jianghai and Novasentis. Offsetting these uses of cash, we had asset sales of $2.3 million and received dividends of $0.8 million.
During fiscal year 2018, cash provided by investing activities was primarily due to $164.0 million in net cash received attributable to the bargain purchase of TOKIN. Additionally, we had proceeds from asset sales of $3.6 million and received dividends of $2.7 million. This was partially offset by capital expenditures of $65.0 million, primarily related to expanding capacity at our manufacturing facilities in Mexico, Portugal, China, Thailand and Japan, as well as for information technology projects in the United States and Mexico. In addition, the Company invested $3.0 million in the form of capital contributions to Novasentis.
During fiscal year 2017, cash used in investing activities was primarily due to capital expenditures of $25.6 million, primarily related to expanding capacity at our manufacturing facilities in Mexico, Italy, Portugal, and China.
Financing Cash Flow Activities
During fiscal years 2019, 2018, and 2017, cash used in financing activities totaled $56.7 million, $55.8 million, and $0.1 million, respectively. During fiscal year 2019, the Company received $281.8 million in proceeds from the TOKIN Term Loan Facility, net of discount, bank issuance costs, and other indirect issuance costs, $13.4 million in proceeds from advances from customers, as described in the earlier section titled "Customer Advances", received proceeds on an interest free loan from the Portuguese Government of $1.1 million, and received $0.5 million in cash proceeds from the exercise of stock options. The Company made $344.5 million in payments on long term debt, including two quarterly principal payments on the Term Loan Credit Agreement of $4.3 million, for a total of $8.6 million, $323.4 million to repay the remaining balance on the Term Loan Credit Agreement, and one principal payment on the TOKIN Term Loan Facility of $12.4 million. An early payment premium on the Term Loan Credit Agreement used $3.2 million in cash. Lastly, the Company paid two quarterly cash dividends for a total of $5.8 million.
During fiscal year 2018, cash used in financing activities was impacted by the following payments: (i) $353.0 million to pay off the remaining outstanding balance of the 10.5% Senior Notes, (ii) $33.9 million to repay the remaining outstanding balance of the revolving line of credit, and (iii) three quarterly principal payments on the Term Loan Credit Agreement for $4.3 million each, for a total of $12.9 million. The Company received $329.7 million in proceeds from the Term Loan Credit Agreement, net of discount, bank issuance costs, and other indirect issuance costs, received proceeds from the exercise of stock warrants and stock options for $8.8 million and $5.2 million, respectively, and received $0.3 million in proceeds on an interest free loan from the Portuguese Government.
During fiscal year 2017, the Company made $0.1 million in net payments on long-term debt, had cash outflows of $1.1 million for the purchase of treasury stock, and received $1.1 million from the exercise of stock options.

                                                                       |           | Fiscal Years Ended March 31, |
---------------------------------------------------------------------- | --------- | ---------------------------- | --------
                                                                       | 2019      | 2018                         | 2017
Net cash provided by (used in) operating activities (1)                | $131,731  | $120,761                     | $71,667
Net cash provided by (used in) investing activities                    | (147,012) | 102,364                      | (25,598)
Net cash provided by (used in) financing activities                    | (56,657)  | (55,798)                     | (125)
Effect of foreign currency fluctuations on cash (2)                    | (6,990)   | 9,745                        | (1,174)
Net increase (decrease) in cash, cash equivalents, and restricted cash | $(78,928) | $177,072                     | $44,770

Cash equivalents decreased $78. 9 million 2019 $177. 1 million 2018 $44. 8 million 2017
 2017 ASC 606.
.
 2019 $131. 7 million $120. 8 million $71. 7 million. 2019 impacted net income $206. 6 million $7. 7 million accounts payable $1. million accrued income taxes. negatively impacted $70. 6 million liabilities $42. 8 million increase inventories $8. 9 million accounts receivable $4. 4 million prepaid expenses assets. $46. 3 million TOKIN anti-trust fines $7. 8 million restructuring liabilities. increase inventory increased customer demand.
 2018 net income $254. 1 million. $30. 2 million decrease accounts receivable $4. 3 million prepaid expenses $1. 3 million increase accrued income taxes. $16. 1 million decrease accounts payable $13. 8 million increase inventories.
 2017 net income $47. 2 million.inventories $6. 2 million accounts payable $1. 7 million operating liabilities. cash flows impacted $2. 6 million increase accounts receivable $1. 8 million prepaid expenses assets.
 Investing Cash Flow
 2019 2018 2017 $. million $102. 4 million $(25. million. 2019 expenditures $146. 1 million expanding capacity Mexico information technology projects. $16. 3 million. expenditures Customer Capacity Agreements. invested $4. million capital contributions KEMET Jianghai Novasentis. sales $2. 3 million dividends $0. 8 million.
 2018 $164. million purchase TOKIN. proceeds asset sales $3. 6 million dividends $2. 7 million. offset capital expenditures $65. million expanding capacity technology projects. $3. million contributions Novasentis.
 capital expenditures $25. 6 million expanding capacity Mexico China.
 Financing Cash Flow
 2019 2018 $56. 7 million $55.. 1 million. 2019 received $281. 8 million TOKIN Term Loan Facility $13. 4 million loan Portuguese Government $1. 1 million. 5 million stock options. $344. 5 million payments long term debt quarterly payments Term Loan $4. 3 million $8. 6 million $323. 4 million payment TOKIN Term Loan $12. 4 million. early payment premium $3. 2 million cash. paid two quarterly cash dividends $5. 8 million.
 2018 $353. million. Senior Notes $33. 9 million revolving line credit three quarterly payments Term Loan Credit Agreement $4. 3 million $12. 9 million. $329. 7 million Term Loan Credit Agreement stock warrants options $8. million $5. 2 million $0. 3 million loan Portuguese Government.
 2017 $0. 1 million payments long-term debt cash outflows $1. 1 million treasury stock $1. 1 million stock options.
Fiscal Years Ended March 31,
 cash operating $131,731 $120,761 $71,667
 investing (147,012) 102,364 (25,598
 financing (56,657) (55,798)
 foreign currency fluctuations cash (6,990) 9,745 (1,174
 cash $(78,928) $177,072 $44,770


11. Reportable Segments, Geographic Information and Major Customers
Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in assessing performance and allocating resources. The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Company’s resources on a regional basis. Net sales for the segments are attributed to the region in which the product is manufactured or the service is performed. The services provided, manufacturing processes used, class of customers serviced and order fulfillment processes used are similar and generally interchangeable across the segments. A segment’s performance is evaluated based upon its operating income (loss). A segment’s operating income (loss) includes its net sales less cost of sales and selling and administrative expenses, but excludes corporate and other expenses. Corporate and other expenses  fiscal 2019 and the $13.5 million one-time employee bonus paid to full-time, non-executive employees during fiscal 2018 due to the Company's ability to access overseas cash as a result of Tax Reform (the "one-time employee bonus"). These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Inter-segment transactions are generally recorded at amounts that approximate arm’s length transactions. The accounting policies for the segments are the same as for the Company taken as a whole.
Information about the Company’s three reportable segments for fiscal 2019, 2018 and 2017 is as follows (in thousands):

                                    | 2019       | 2018       | 2017
----------------------------------- | ---------- | ---------- | ----------
Net sales:                          |            |            |
AMER                                | $1,429,308 | $1,218,944 | $1,166,346
APAC                                | 1,557,205  | 1,498,010  | 1,279,261
EMEA                                | 309,933    | 281,489    | 192,829
Elimination of inter-segment sales  | (132,012)  | (124,935)  | (110,384)
                                    | 3,164,434  | 2,873,508  | 2,528,052
Operating income (loss):            |            |            |
AMER                                | $57,780    | $38,637    | $41,924
APAC                                | 208,178    | 213,935    | 200,103
EMEA                                | 4,475      | 1,447      | (6,197)
Corporate and other costs           | (128,378)  | (135,736)  | (105,922)
                                    | $142,055   | $118,283   | $129,908
Other income (expense):             |            |            |
Interest expense                    | $(12,853)  | $(12,226)  | $(13,578)
Interest income                     | 1,949      | 4,696      | 5,042
Miscellaneous, net                  | (5,196)    | (3,143)    | 451
Income before income taxes          | $125,955   | $107,610   | $121,823

. Reportable Segments Geographic Information Major Customers
 segments components enterprise financial information evaluated by chief maker performance resources. Company uses internal management reporting system financial data performance resources. Net sales attributed to region product manufactured service performed. services manufacturing processes customers order fulfillment processes interchangeable. performance operating income (loss). net sales cost administrative expenses excludes corporate other expenses. 2019 $13. 5 million-time employee bonus cash Tax Reform. not allocated segments. Inter-segment transactions recorded arm’s length. accounting policies same Company.
 three reportable segments 2019 2018 2017
 Net sales
 AMER $1,429,308 $1,218,944 $1,166,346
 APAC 1,557,205 1,498,010 1,279,261
 EMEA 309,933 281,489 192,829
 Elimination inter-segment sales (132,012) (124,935) (110,384)
,164,434 2,873,508 2,528,052
 AMER $57,780 $38,637 $41,924
 APAC 208,178 213,935 200
 EMEA
 costs,378 (135,736) (105,922)
 $142,055 $118,283 $129,908
,949 4 5,042
 (5 (3,143
 $125,955 $107,610 $121,823


ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
NOTE 13. INTANGIBLE ASSETS
Intangible assets consisted of the following as of December 31, 2019 and 2018:
At December 31, 2019, the weighted average remaining useful life of intangibles subject to amortization was approximately 11.2 years.

December 31, 2019      | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount
---------------------- | --------------------- | ------------------------ | -------------------
Technology             | $83,368               | $(14,250)                | $69,118
Customer relationships | 108,995               | (18,197)                 | 90,798
Trademarks and other   | 26,888                | (2,793)                  | 24,095
Total                  | $219,251              | $(35,240)                | $184,011
December 31, 2018      | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount
Technology             | $39,879               | $(7,927)                 | $31,952
Customer relationships | 35,509                | (13,484)                 | 22,025
Trademarks and other   | 2,501                 | (1,568)                  | 933
Total                  | $77,889               | $(22,979)                | $  54,910

ADVANCED ENERGY INDUSTRIES. FINANCIAL STATEMENTS share
. INTANGIBLE ASSETS
 December 31, 2019
 life intangibles 11. 2 years.
 Gross Carrying Amortization
 $83,368 $(14,250) $69,118
 108,995 (18,197) 90,798
 Trademarks 26,888 (2,793) 24,095
 $219,251 $(35,240 $184,011
 December 31, Gross Carrying Amortization
 $39,879 $(7,927) $31,952
 35,509,484 22,025
 Trademarks 2,501
 $77,889


NOTE 11 - STOCK CAPITAL (Cont.)
Private placements and public offerings: (Cont.)
The New Warrants have not been registered under the Securities Act of 1933, as amended (the Securities Act), or state securities laws. The shares issuable upon exercise of the New Warrants have been registered for resale on the Company’s registration statement on Form S-3 (File No. 333- 233349). The Exercised Shares have been registered for resale on the Company’s registration statement on Form S-3 (File No. 333225995). The issuance of the Exercised Shares and New Warrants is exempt from the registration requirements of the Securities Act pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated under the Securities Act.
Since its inception the Company has raised approximately $64,000, net in cash in consideration for issuances of Common Stock and warrants in private placements and public offerings as well as proceeds from warrants exercises.
Warrants:
The following table sets forth the number, exercise price and expiration date of Company warrants outstanding as of December 31, 2019:

                   | Outstanding as of December 31, | Exercise | Exercisable
------------------ | ------------------------------ | -------- | -----------
Issuance Date      | 2019                           | price    | Through
Aug 2007- Jan 2011 | 2,016,666                      | 3 - 4.35 | Nov-2022
Jun-2018           | 458,202                        | 9        | Dec-2020
Jun-2018           | 1,158,000                      | 7        | Dec-2021
Aug - 2019         | 842,000                        | 7        | Dec-2021
Total              | 4,474,868                      |          |

11 CAPITAL.
 Private placements public offerings.
 New Warrants not registered Securities Act 1933 state laws. shares Warrants registered resale Form S-3. 333 233349). Exercised Shares registered resale Form S-3. 333225995. issuance Shares New Warrants exempt registration Securities Act Section 4(a)(2) Securities Act Rule 506 Regulation D.
 Company raised $64,000 issuances Common Stock warrants private placements public offerings proceeds.
 number price expiration date Company warrants outstanding December 31, 2019
 Issuance Date 2019
 Aug 2007 Jan 2011 2,016,666. Nov-2022
 Jun-2018 458,202 Dec-2020
 1,158,000 Dec-2021
 2019 842,000
 Total 4,474,868


Item 16C. Principal Accountant Fees and Services
Our principal accountant for 2019 and 2018 was KPMG LLP, Chartered Professional Accountants. The following table shows the fees Teekay and our subsidiaries paid or accrued for audit and other services provided by KPMG LLP for 2019 and 2018.
(1) Audit fees represent fees for professional services provided in connection with the audits of our consolidated financial statements and effectiveness of internal control over financial reporting, reviews of our quarterly consolidated financial statements and audit services provided in connection with other statutory or regulatory filings for Teekay or our subsidiaries including professional services in connection with the review of our regulatory filings for public offerings of our subsidiaries.
Audit fees for 2019 and 2018 include approximately $928,300 and $859,000, respectively, of fees paid to KPMG LLP by Teekay LNG that were approved by the Audit Committee of the Board of Directors of the general partner of Teekay LNG. Audit fees for 2019 and 2018 include approximately $588,200 and $517,000, respectively, of fees paid to KPMG LLP by our subsidiary Teekay Tankers that were approved by the Audit Committee of the Board of Directors of Teekay Tankers.
(2) Audit-related fees consisted primarily of accounting consultations, employee benefit plan audits, services related to business acquisitions, divestitures and other attestation services. (3) For 2019 and 2018, tax fees principally included corporate tax compliance fees.
The Audit Committee has the authority to pre-approve audit-related and non-audit services not prohibited by law to be performed by our independent auditors and associated fees. Engagements for proposed services either may be separately pre-approved by the Audit Committee or entered into pursuant to detailed pre-approval policies and procedures established by the Audit Committee, as long as the Audit Committee is informed on a timely basis of any engagement entered into on that basis.
The Audit Committee separately pre-approved all engagements and fees paid to our principal accountants in 2019 and 2018.

Fees (in thousands of U.S. dollars) | 2019  | 2018
----------------------------------- | ----- | -----
Audit Fees (1)                      | 2,723 | 2,529
Audit-Related Fees (2)              | 33    | 59
Tax Fees (3)                        | 23    | 32
Total                               | 2,779 | 2,620
                                    |       |

Item 16C. Principal Accountant Fees Services
 principal accountant 2019 2018 KPMG LLP Chartered Accountants. table shows fees Teekay subsidiaries for audit services KPMG LLP 2019 2018.
 Audit fees services consolidated financial statements internal control reviews quarterly financial services statutory regulatory filings Teekay public offerings.
 Audit fees 2019 2018 include $928,300 $859,000 KPMG LLP Teekay LNG approved Audit Committee. 2018 $588,200 $517,000 KPMG LLP subsidiary Teekay Tankers.
 Audit-related fees accounting consultations employee benefit plan audits business divestitures attestation services. 2019 2018 tax fees corporate tax compliance fees.
 Audit Committee pre-approve audit-related non-audit services fees. Engagements services pre-approved pre-approval policies procedures.
 Audit Committee pre-approved engagements fees principal accountants 2019 2018.
 Fees thousands U. S. dollars) 2019 2018
Audit Fees 2,723 2,529
-Related 33
 Tax 23
 2,779 2,620


3.3 Fair value estimation (continued)                                                       If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3.
Specific valuation techniques used to value financial instruments mainly include:
Dealer quotes for similar instruments;
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves; and
Other techniques, such as discounted cash flow analysis, are used to determine fair value for financial instruments.
During the year ended 31 December 2019, there was 1 transfer between level 1 and 2 for recurring fair value measurements. For transfers in and out of level 3 measurements see the following table, which presents the changes of financial instruments in level 3 for the years ended 31 December 2019 and 2018:

                                                                                | Financial assets |             | Financial liabilities |
------------------------------------------------------------------------------------------------------------------------------------- | ---------------- | ----------- | --------------------- | -----------
                                                                                | 2019             | 2018        | 2019                  | 2018
                                                                                | RMB’Million      | RMB’Million | RMB’Million           | RMB’Million
Opening balance – IAS 39                                                                                |                  | 77,131      |                       | 2,154
Adjustment on adoption of IFRS 9                                                                                |                  | 22,976      |                       | –
Opening balance – IFRS 9                                                                                | 83,934           | 100,107     | 4,466                 | 2,154
Additions                                                                                | 39,116           | 51,185      | 75                    | 3,301
Business combination                                                                                | –                | –           | (977)                 | –
Disposals/Settlements                                                                                | (6,714)          | (9,899)     | (1,193)               | –
Transfers                                                                                | (4,552)          | (93,151)    | –                     | –
Changes in fair value recognised in other comprehensive income                                                                        | 328              | 261         | –                     | –
Changes in fair value recognised in profit or loss*                                                                                | 9,241            | 30,485      | (463)                 | (1,063)
Currency translation differences                                                                                | 1,740            | 4,946       | (35)                  | 74
Closing balance                                                                                | 123,093          | 83,934      | 1,873                 | 4,466
* Includes unrealised gains or (losses) recognised in profit or loss attributable to balances held at the end of the reporting period | 3,265            | 6,861       | (463)                 | (1,063)

3. Fair value estimation If inputs not market data instrument in level 3.
 valuation techniques include
 Dealer quotes
 fair value interest rate swaps calculated as future cash flows
 Other discounted cash flow analysis value.
 31 December 2019 1 transfer between level 1 2 fair value. transfers 3 table changes financial instruments level 3 31 December 2019 2018:
 Financial assets liabilities
 RMB’Million
 Opening balance IAS 39 77,131 2,154
 Adjustment adoption IFRS 9 22,976
 balance IFRS 9 83,934 100,107
 Additions 39,116 51,185
 Business combination
 Disposals/Settlements (6,714) (9,899)
 Transfers (4,552) (93,151)
 Changes in fair value income 328 261
 Changes profit loss 9,241 30,485
Currency differences 1,740 4,946 74
 Closing balance 123,093 83,934 1,873 4,466
 Includes unrealised gains reporting 3,265 (463)


Item 6. Selected Financial Data
Five Years Ended July 27, 2019 (in millions, except per-share amounts)
(1) In the second quarter of fiscal 2019, we completed the sale of the Service Provider Video Software Solutions (SPVSS) business. As a result, revenue from the SPVSS business will not recur in future periods. We recognized an immaterial gain from this transaction. Revenue for the years ended July 27, 2019 and July 28, 2018 include SPVSS revenue of $168 million and $903 million, respectively.
(2) In connection with the Tax Cuts and Jobs Act (“the Tax Act”), we recorded an $872 million charge which was the reversal of the previously recorded benefit associated with the U.S. taxation of deemed foreign dividends recorded in fiscal 2018 as a result of a retroactive final U.S. Treasury regulation issued during the fourth quarter of fiscal 2019. See Note 17 to the Consolidated Financial Statements.
(3) In fiscal 2018, Cisco recorded a provisional tax expense of $10.4 billion related to the enactment of the Tax Act comprised of $8.1 billion of U.S. transition tax, $1.2 billion of foreign withholding tax, and $1.1 billion re-measurement of net deferred tax assets and liabilities (DTA).
(4) In the second quarter of fiscal 2016, Cisco completed the sale of the SP Video CPE Business. As a result, revenue from this portion of the Service Provider Video product category did not recur in future periods. The sale resulted in a pre-tax gain of $253 million net of certain transaction costs. The years ended July 30, 2016 and July 25, 2015 include SP Video CPE Business revenue of $504 million and $1,846 million, respectively.
(5) In fiscal 2016 Cisco recognized total tax benefits of $593 million for the following: i) the Internal Revenue Service (IRS) and Cisco settled all outstanding items related to Cisco’s federal income tax returns for fiscal 2008 through fiscal 2010, as a result of which Cisco recorded a net tax benefit of $367 million; and ii) the Protecting Americans from Tax Hikes Act of 2015 reinstated the U.S. federal research and development (R&D) tax credit permanently, as a result of which Cisco recognized tax benefits of $226 million, of which $81 million related to fiscal 2015 R&D expenses.
At the beginning of fiscal 2019, we adopted Accounting Standards Codification (ASC) 606, a new accounting standard related to revenue recognition, using the modified retrospective method to those contracts that were not completed as of July 28, 2018. See Note 2 to the Consolidated Financial Statements for the impact of this adoption.
No other factors materially affected the comparability of the information presented above.

Years Ended                                  | July 27, 2019 (1)(2) | July 28, 2018 (1)(3) | July 29, 2017 | July 30, 2016 (4)(5) | July 25, 2015 (4)
-------------------------------------------- | -------------------- | -------------------- | ------------- | -------------------- | -----------------
Revenue                                      | $51,904              | $49,330              | $48,005       | $49,247              | $49,161
Net income                                   | $11,621              | $110                 | $9,609        | $10,739              | $8,981
Net income per share—basic                   | $2.63                | $0.02                | $1.92         | $2.13                | $1.76
Net income per share—diluted                 | $2.61                | $0.02                | $1.90         | $2.11                | $1.75
Shares used in per-share calculation—basic   | 4,419                | 4,837                | 5,010         | 5,053                | 5,104
Shares used in per-share calculation—diluted | 4,453                | 4,881                | 5,049         | 5,088                | 5,146
Cash dividends declared per common share     | $1.36                | $1.24                | $1.10         | $0.94                | $0.80
Net cash provided by operating activities    | $15,831              | $13,666              | $13,876       | $13,570              | $12,552

. Financial Data
 Five Years Ended July 27, 2019 millions per-share
 second quarter 2019 sale Service Provider Video Software Solutions. revenue. recognized immaterial gain. years July 27, 2019 July 28, 2018 $168 million $903 million.
 Tax Cuts Jobs Act $872 million charge reversal. taxation foreign dividends. regulation. Note 17 Consolidated Financial Statements.
 2018 Cisco provisional tax expense $10. 4 billion $8. 1 billion U. transition tax $1. 2 billion foreign withholding tax $1. 1 billion deferred tax.
 second quarter 2016, SP Video CPE Business. revenue recur. pre-tax gain $253 million costs. years July 30, 2016 July 25, 2015 include revenue $504 million $1,846 million.
 fiscal 2016 recognized tax benefits $593 million settled federal income tax returns 2008 net tax benefit $367 million Americans Tax Hikes Act 2015 reinstated U.research tax credit Cisco recognized tax benefits $226 million $81 million 2015 R&D expenses.
 2019 adopted Accounting Standards Codification) 606 new standard revenue recognition modified retrospective method contracts not completed July 28, 2018. Note 2 Consolidated Financial Statements impact.
 No factors affected comparability.
 Years Ended July 27, 2019 July 28, 2018 July 29, 2017 July 30, 2016 July 25, 2015
 Revenue $51,904  $49,330  $48,005 $49,247
 Net income $11,621 $9,609 $10,739 $8,981
 Net income $2.
.
 Shares-share 4,419 4,837 5 5
 4,453 4,881 5
 Cash dividends share $1.
 Net cash activities $15,831 $13,666 $13,876


Note 13 Contract costs
The table below provides a reconciliation of the contract costs balance.
Contract costs are amortized over a period ranging from 12 to 84 months.

FOR THE YEAR ENDED DECEMBER 31                                           | 2019  | 2018
------------------------------------------------------------------------ | ----- | -----
Opening balance, January 1                                               | 707   | 636
Incremental costs of obtaining a contract and contract fulfillment costs | 602   | 567
Amortization included in operating costs                                 | (523) | (477)
Impairment charges included in operating costs                           | (3)   | (19)
Ending balance, December 31                                              | 783   | 707

Contract costs
 table.
 amortized 12 to 84 months.
 YEAR ENDED DECEMBER 31
 Opening balance January 1 707 636
 contract fulfillment 602 567
 Amortization operating costs (523) (477
 Impairment charges
 Ending balance December 31 783


5. PROPERTY AND EQUIPMENT, NET
Property and equipment, at cost, consisted of the following at December 31, 2019 and 2018 (in thousands):
Depreciation expense related to property and equipment was approximately $0.04 million and $0.13 million in 2019 and 2018, respectively. Depreciation expense includes depreciation related to finance leases of approximately $0.001 million and $0.002 million for the periods ended December 31, 2019 and 2018, respectively. Our finance leases have original terms of one to three years. The principal payments for these finance leases are reflected as cash outflows from financing activities in the accompanying consolidated statements of cash flows. Future minimum lease payments under our capital leases that have initial terms in excess of one year are included in “Leases” in Note 8.     Depreciation expense related to property and equipment was approximately $0.04 million and $0.13 million in 2019 and 2018, respectively. Depreciation expense includes depreciation related to finance leases of approximately $0.001 million and $0.002 million for the periods ended December 31, 2019 and 2018, respectively. Our finance leases have original terms of one to three years. The principal payments
In connection with the relocation of our corporate headquarters in July 2019, we disposed of a number of assets that were no longer in use. For each of the years ended December 31, 2019 and 2018, we recorded a loss on disposal of fixed assets of approximately $0.01 million.  In connection with the relocation of our corporate headquarters in July 2019, we disposed of a number of assets that were no longer in use. For each of the years ended December 31, 2019 and 2018, we recorded a loss on disposal of fixed assets of approximately $0.01 million.
In connection with the closure of our Lake Mary facility in 2018, we reclassified equipment with a net book value of approximately $0.07 million to assets held for sale. We contracted with a third party for the consignment sale of these assets and completed sales for several assets in 2018 and 2019. For the year ended December 31, 2019, we recognized a net loss of approximately $0.04 million on the sale and/or impairment of assets held for sale. For the year ended December 31, 2018, we recognized a gain of approximately $0.01 million on assets held for sale. The gains and losses on the sale or impairment of held for sale assets is included in selling, general and administrative expenses in the accompanying statements of comprehensive loss.

                                                                                | 2019  | 2018
------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----- | -------
Equipment and software, including equipment purchased under capital leases of $6 and $17 at December 31, 2019 and 2018, respectively                                     | $260  | $1,555
Leasehold improvements                                                                                | 33    | 786
Furniture and fixtures                                                                                | 43    | 182
                                                                                | 336   | 2,523
Less accumulated depreciation, including accumulated depreciation for equipment purchased under capital leases of $3 and $13 at December 31, 2019 and 2018, respectively | (266) | (2,394)
                                                                                | $70   | $129

. PROPERTY EQUIPMENT
 at December 31, 2019 2018
 Depreciation expense $0. 04 million $0. 13 million in 2019 2018. finance leases $0. 001 million $0. 002 million. finance leases terms one to three years. principal payments reflected cash outflows in statements. Future minimum lease payments capital leases included in “Leases” Note 8. Depreciation expense $0. 04 million and $0. 13 million in 2019 2018. finance leases $0. 001 million $0. 002 million. leases terms one to three years.
 relocation July 2019 disposed assets. recorded loss on disposal approximately $0. 01 million. disposed assets. loss on disposal approximately $0. 01 million.
 closure Lake Mary facility 2018 reclassified equipment net value $0. 07 million to sale. contracted third party for consignment sale completed sales 2018 2019. December 31, 2019 recognized net loss of approximately $0.million sale assets. December 31, 2018 gain $0. 01 million. gains losses selling administrative expenses loss.
 2018
 Equipment software capital leases $6 $17 December 31, 2019 2018 $260 $1,555
 Leasehold improvements
 Furniture fixtures
 2,523
 accumulated depreciation capital leases $3 $13 December 31, 2019 2018 (266) (2,394)
 $70 $129


NOTE 14-INFORMATION CONCERNING PRODUCT LINES, GEOGRAPHIC INFORMATION, ACCOUNTS RECEIVABLE AND REVENUE CONCENTRATION
The Company identifies its business segments based on business activities, management responsibility and geographic location. For all periods presented, the Company operated in a single reportable business segment.
The following is a breakdown of revenue by product family (in thousands):
(1) New products include all products manufactured on 180 nanometer or smaller semiconductor processes, eFPGA IP license, QuickAI and SensiML AI software as a service (SaaS) revenues. Mature products include all products produced on semiconductor processes larger than 180 nanometer.

                              |         | Fiscal Years |
----------------------------- | ------- | ------------ | -------
                              | 2019    | 2018         | 2017
Revenue by product line (1) : |         |              |
New products                  | $3,123  | $5,735       | $5,853
Mature products               | 7,187   | 6,894        | 6,296
Total revenue                 | $10,310 | $12,629      | $12,149

LINES GEOGRAPHIC ACCOUNTS REVENUE CONCENTRATION
 Company identifies business segments management responsibility geographic location. single segment.
 breakdown revenue product family
 New products 180 nanometer semiconductor eFPGA QuickAI SensiML AI. Mature products 180 nanometer.
 Years
 Revenue product line
 New products $3,123 $5,735 $5,853
 Mature products 7,187 6,296
 Total revenue $10,310 $12,629 $12,149


Other Operating (Income) Expense, Net
Restructure and asset impairments primarily relate to our continued emphasis to centralize certain key functions. In addition, in 2019, we finalized the sale of our 200mm fabrication facility in Singapore and recognized restructure gains of $128 million. In 2017, we recognized net restructure gains of $15 million related to the sale of our Lexar assets; our assets associated with our 200mm fabrication facility in Singapore; and our 40% ownership interest in Tera Probe, Inc and assembly and test facility located in Akita, Japan.

For the year ended                                           | 2019 | 2018  | 2017
------------------------------------------------------------ | ---- | ----- | -----
(Gain) loss on disposition of property, plant, and equipment | $43  | $(96) | $(22)
Restructure and asset impairments                            | (29) | 28    | 18
Other                                                        | 35   | 11    | 5
                                                             | $49  | $(57) | $1

Operating Expense
 Restructure asset impairments functions. 2019 sale 200mm facility Singapore recognized restructure gains $128 million. 2017 gains $15 million Lexar 200mm 40% Tera Probe facility Akita Japan.
 2019 2018 2017
 loss disposition property plant equipment $43 $(96) $(22)
 Restructure impairments (29) 28 18
 35 5
 $49 $(57) $1


FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (continued)
Movement of FVPL is analysed as follows:
Note: During the year ended 31 December 2019, the Group’s additions to FVPL mainly comprised the following:
an investment in a retail company of approximately USD500 million (equivalent to approximately RMB3,550 million) to subscribe for approximately 21% of its equity interests in form of preferred shares, on an outstanding basis;
an additional investment in a real estate O2O platform in the PRC of approximately USD320 million (equivalent to approximately RMB2,258 million). As at 31 December 2019, the Group’s equity interests in this investee company are approximately 9% on an outstanding basis; and
new investments and additional investments with an aggregate amount of approximately RMB38,810 million in listed and unlisted entities mainly operating in the United States, the PRC and other Asian countries. These companies are principally engaged in social networks, Internet platform, technology and other Internet-related business. None of the above investment was individually significant that triggers any disclosure requirements pursuant to Chapter 14 of the Listing Rules at the time of inception.
During the year ended 31 December 2019, except as described in Note 21(b), transfers also mainly comprised an equity investment designated as FVOCI due to the conversion of the redeemable instruments into ordinary shares amounting to RMB1,395 million upon its IPO.
During the year ended 31 December 2019, the Group disposed of certain investments with an aggregate amount of RMB16,664 million, which are mainly engaged in the provision of Internet-related services.
Management has assessed the level of influence that the Group exercises on certain FVPL with shareholding exceeding 20%. Since these investments are either held in form of redeemable instruments or interests in limited life partnership without significant influence, these investments have been classified as FVPL.

                                  | 2019        | 2018
--------------------------------- | ----------- | -----------
                                  | RMB’Million | RMB’Million
At beginning of the year          | 97,877      | –
Adjustment on adoption of IFRS 9  | –           | 95,497
Additions (Note (a))              | 44,618      | 60,807
Transfers (Note (b))              | (1,421)     | (78,816)
Changes in fair value (Note 7(b)) | 9,511       | 28,738
Disposals (Note (c))              | (16,664)    | (14,805)
Currency translation differences  | 2,015       | 6,456
At end of the year                | 135,936     | 97,877

FINANCIAL ASSETS FAIR VALUE PROFIT OR LOSS
 Movement FVPL analysed
 year ended 31 December 2019 additions FVPL
 investment retail company USD500 million RMB3,550 million 21% equity interests preferred shares
 additional investment real estate O2O platform PRC USD320 million RMB2,258 million. 31 December 2019 equity interests company
 new additional investments RMB38,810 million listed unlisted entities United States PRC Asian countries. companies social networks Internet platform technology Internet-related business. disclosure requirements Chapter 14 Listing Rules.
 year 31 December 2019 transfers equity investment FVOCI conversion redeemable instruments ordinary shares RMB1,395 million IPO.
 year 31 December 2019 Group disposed investments RMB16,664 million Internet-related services.
 assessed influence FVPL shareholding 20%. investments redeemable instruments or limited life partnership classified FVPL.
 2018
IFRS 9 95,497
 Additions 44,618 60,807
 Transfers,816)
 Changes value 28,738
 Disposals (16,664 (14,805
 Currency differences 6,456
 year 135,936 97,877


18. Revenue
Effective September 1, 2018, the Company adopted ASU 2014-09, Revenue Recognition (Topic 606). The new standard is a comprehensive new revenue recognition model that requires the Company to recognize revenue in a manner which depicts the transfer of goods or services to its customers at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.
Prior to the adoption of the new standard, the Company recognized substantially all of its revenue from contracts with customers at a point in time, which was generally when the goods were shipped to or received by the customer, title and risk of ownership had passed, the price to the buyer was fixed or determinable and collectability was reasonably assured (net of estimated returns). Under the new standard, the Company recognizes revenue over time for the majority of its contracts with customers which results in revenue for those customers being recognized earlier than under the previous guidance. Revenue for all other contracts with customers continues to be recognized at a point in time, similar to recognition prior to the adoption of the standard.
Additionally, the new standard impacts the Company’s accounting for certain fulfillment costs, which include upfront costs to prepare for manufacturing activities that are expected to be recovered. Under the new standard, such upfront costs are recognized as an asset and amortized on a systematic basis consistent with the pattern of the transfer of control of the products or services to which to the asset relates.
The Company adopted ASU 2014-09 using the modified retrospective method by applying the guidance to all open contracts upon adoption and recorded a cumulative effect adjustment as of September 1, 2018, net of tax,  effect adjustment (in thousands):
(1) Differences primarily relate to the timing of revenue recognition for over time customers and certain balance sheet reclassifications.
(2) Differences primarily relate to the timing of recognition and recovery of fulfillment costs and certain balance sheet reclassifications.
(3) Included within accrued expenses on the Consolidated Balance Sheets.
(4) Differences included in contract liabilities as of September 1, 2018.

                                                | Balance as of August 31, 2018 | Adjustments due to adoption of ASU 2014-09 | Balance as of September 1, 2018
----------------------------------------------- | ----------------------------- | ------------------------------------------ | -------------------------------
Assets                                          |                               |                                            |
Contract assets(1)                              | $—                            | $591,616                                   | $591,616
Inventories, net(1)                             | $3,457,706                    | $(461,271)                                 | $2,996,435
Prepaid expenses and other current assets(1)(2) | $1,141,000                    | $(37,271)                                  | $1,103,729
Deferred income taxes(1)(2)                     | $218,252                      | $(8,325)                                   | $209,927
Liabilities                                     |                               |                                            |
Contract liabilities(2)(3)                      | $—                            | $690,142                                   | $690,142
Deferred income(2)(3)(4)                        | $691,365                      | $(691,365)                                 | $—
Other accrued expenses(3)(4)                    | $1,000,979                    | $40,392                                    | $1,041,371
Deferred income taxes(1)                        | $114,385                      | $2,977                                     | $117,362
Equity                                          |                               |                                            |
Retained earnings(1)(2)                         | $1,760,097                    | $42,602                                    | $1,802,699

. Revenue
 September 1, 2018 Company adopted ASU 2014-09 Revenue Recognition (Topic 606). new standard revenue recognition model requires revenue transfer goods services customers consideration.
 recognized revenue from contracts time goods shipped received title risk ownership passed price fixed collectability assured estimated returns. new standard recognizes revenue over time majority contracts recognized earlier previous. Revenue other contracts recognized time similar.
 new standard impacts accounting fulfillment costs manufacturing activities. costs recognized as asset amortized transfer control products services.
 Company adopted ASU 2014-09 modified retrospective method all open contracts recorded cumulative effect adjustment September 1, 2018 tax
 Differences relate to timing revenue recognition over time customers balance sheet reclassifications.
 Differences timing recognition recovery fulfillment costs balance sheet reclassifications.
 Included accrued expenses Consolidated Balance Sheets.
 Differences contract liabilities as September 1,.
Balance August 31, 2018 Adjustments ASU 2014-09 September 1 2018
 Contract $591,616
 Inventories $3,457,706 $2,996,435
 Prepaid expenses $1,141,000 $1,103,729
 Deferred income $218,252 $209,927
 Contract $690,142
 Deferred $691,365
 accrued $1,000,979 $40,392 $1,041,371
 Deferred income $114,385 $2 $117,362
 Retained $1,760,097 $1,802,699


Stock Compensation Expense
The following table shows total stock-based compensation expense and related tax benefits included in the Consolidated Statements of Operations for fiscal 2019, 2018 and 2017 (in thousands):
As a result of our acquisition of Rofin on November 7, 2016, we made a payment of $15.3 million due to the cancellation of options held by employees of Rofin. The payment was allocated between total estimated merger consideration of $11.1 million and post-merger stock-based compensation expense of $4.2 million, recorded in the first quarter of fiscal 2017, based on the portion of the total service period of the underlying options that have not been completed by the merger date.
During fiscal 2019, $4.8 million of stock-based compensation cost was capitalized as part of inventory for all stock plans, $4.8 million was amortized into cost of sales and $1.5 million remained in inventory at September 28, 2019. During fiscal 2018, $4.7 million of stock-based compensation cost was capitalized as part of inventory for all stock plans, $4.4 million was amortized into cost of sales and $1.5 million remained in inventory at September 29, 2018.
At fiscal 2019 year-end, the total compensation cost related to unvested stock-based awards granted to employees under our stock plans but not yet recognized was approximately $33.1 million. We do not estimate forfeitures. This cost will be amortized on a straight-line basis over a weighted-average period of approximately 1.5 years.

                                    |         | Fiscal  |
----------------------------------- | ------- | ------- | -------
                                    | 2019    | 2018    | 2017
Cost of sales                       | $4,880  | $4,403  | $3,541
Research and development            | 2,990   | 3,247   | 2,973
Selling, general and administrative | 28,596  | 25,088  | 23,911
Income tax benefit                  | (4,946) | (5,073) | (7,073)
                                    | $31,520 | $27,665 | $23,352

Stock Compensation Expense
 table shows stock-based compensation expense tax benefits Consolidated Statements Operations 2019 2018 2017
 acquisition Rofin 2016, $15. 3 million cancellation options employees. allocated between merger consideration $11. 1 million post-merger compensation expense $4. 2 million first quarter 2017.
 2019 $4. 8 million compensation cost $4. 8 million amortized cost sales $1. 5 million remained inventory September. 2018 $4. 7 million $4. 4 million amortized sales $1. 5 million remained.
 fiscal 2019 year-end total compensation cost unvested stock-based awards $33. 1 million. amortized. 5 years.
 Cost sales $4,880 $4,403 $3,541
 Research development 2,990
 Selling general administrative 28,596 25,088
 Income tax benefit (4,946)
 $31,520 $27


Trading profit
The Group reported Trading profit of £128.5m in the year, growth of £5.5m, up +4.5% compared to 2017/18. Divisional contribution increased by £6.1m to £161.9m. The Grocery business recorded Divisional contribution growth of £8.3m to £138.3m while Sweet Treats Divisional contribution was £2.2m lower than the prior year at £23.6m. Group & corporate costs were £0.6m higher than the prior year.
In the first half of the year, Grocery Divisional contribution benefitted from previous changes in the promotional strategy of Ambrosia. The business reduced the depth of promotional deals it offered which resulted in lower volumes and revenue in the period but growth in Divisional contribution.
Additionally, Divisional contribution margins in the Grocery business grew 2.1 percentage points in the first half compared to the prior year. This is in line with margins two years ago, whereby margins in the prior year were impacted by a longer than expected process to recover input cost inflation seen across the Group’s categories.

£m                       | 2018/19 | 2017/18 | Change
------------------------ | ------- | ------- | ------
Divisional contribution2 |         |         |
Grocery                  | 138.3   | 130.0   | +6.3%
Sweet Treats             | 23.6    | 25.8    | (8.4%)
Total                    | 161.9   | 155.8   | +3.9%
Group & corporate costs  | (33.4)  | (32.8)  | (1.8%)
Trading profit           | 128.5   | 123.0   | +4.5%

 Group reported £128. 5m growth £5. 5m +4. 5% 2017/18. Divisional contribution increased £6. 1m to £161. 9m. Grocery business £8. 3m £138. 3m Sweet Treats contribution £2. 2m lower £23. 6m. Group corporate costs £0. 6m higher.
 Grocery benefitted promotional strategy. reduced promotional deals lower volumes revenue growth contribution.
 margins grew 2. impacted input cost inflation.
 Divisional
 Grocery 138. 130. +6. 3%
 Sweet Treats 23. 25. 4%
 Total 161. 155. +3. 9%
 Group corporate costs (33.
 Trading profit 128. 123. +4. 5%


Under Article 35 of our Articles of Association, our financial year extends from January 1 to December 31, which is the period end of each fiscal year. In 2019, the first quarter ended on March 30, the second quarter ended on June 29, the third quarter ended on September 28 and the fourth quarter ended on December 31.
In 2020, the first quarter will end on March 28, the second quarter will end on June 27, the third quarter will end on September 26 and the fourth quarter will end on December 31.
Based on our fiscal calendar, the distribution of our revenues and expenses by quarter may be unbalanced due to a different number of days in the various quarters of the fiscal year and can also differ from equivalent prior years’ periods, as illustrated in the below table for the years 2018, 2019 and 2020.

     | Q1   | Q2   | Q3   | Q4
---- | ---- | ---- | ---- | ----
     | Days | Days | Days | Days
2018 | 90   | 91   | 91   | 93
2019 | 89   | 91   | 91   | 94
2020 | 88   | 91   | 91   | 96

Article 35 Articles Association financial year January 1 to December 31, fiscal year. 2019 first quarter March 30 second June 29, third September 28 fourth December 31.
 2020 first quarter March 28, second June 27, third September 26 fourth December 31.
 distribution revenues expenses quarter unbalanced different number days quarters differ prior periods table 2018 2019 2020.
 Q1 Q2 Q3 Q4
 Days
 2018 90  91
 2019 89 91
 2020 88 91


Note 8. Goodwill and Intangible Assets, Net
The changes in goodwill by reportable segment are outlined below (in thousands):
On October 21, 2019, we acquired 85% of the issued and outstanding capital stock of OpenEye and recorded $41.4 million of goodwill in the Alarm.com segment. There were no impairments of goodwill recorded during the years ended December 31, 2019, 2018 or 2017. As of December 31, 2019, the accumulated balance of goodwill impairments was $4.8 million, which is related to our acquisition of EnergyHub in 2013.

                                | Alarm.com | Other | Total
------------------------------- | --------- | ----- | --------
Balance as of January 1, 2018   | $63,591   | $—    | $63,591
Goodwill acquired               | —         | —     | —
Balance as of December 31, 2018 | 63,591    | —     | 63,591
Goodwill acquired               | 41,372    | —     | 41,372
Balance as of December 31, 2019 | $104,963  | $—    | $104,963

8. Goodwill Intangible Assets
 changes goodwill segment
 October 21, 2019 acquired 85% OpenEye recorded $41. 4 million goodwill Alarm. segment. no impairments December 31, 2019 2018 2017. accumulated balance $4. 8 million related acquisition EnergyHub 2013.
.
 Balance January 1, 2018 $63,591
 Goodwill acquired
 Balance December 31, 2018
 41,372
 Balance December 31, 2019 $104,963