ITEM 6 | SELECTED FINANCIAL DATA
You should read the table below in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial Statements and related notes included in this Annual Report (amounts in millions, except per share data).
(1)  Includes results from the acquisitions of Foundry from April 18, 2019, ComputerEase from August 19, 2019, iPipeline from August 22, 2019, and Bellefield from December 18, 2019; and the results from the Imaging businesses through disposal on February 5, 2019 and Gatan through disposal on October 29, 2019.
(2)  Includes results from the acquisitions of Quote Software from January 2, 2018, PlanSwift Software from March 28, 2018, Smartbid from May 8, 2018, PowerPlan, Inc. from June 4, 2018, ConceptShare from June 7, 2018, BillBlast from July 10, 2018 and Avitru from December 31, 2018.
(3)  Includes results from the acquisitions of Phase Technology from June 21, 2017, Handshake Software, Inc. from August 4, 2017, Workbook Software A/S from September 15, 2017 and Onvia, Inc. from November 17, 2017.
(4)  Includes results from the acquisitions of CliniSys Group Ltd. from January 7, 2016, PCI Medical Inc. from March 17, 2016, GeneInsight Inc. from April 1, 2016, iSqFt Holdings Inc. (d/b/a ConstructConnect) from October 31, 2016, UNIConnect LC from November 10, 2016 and Deltek, Inc. from December 28, 2016.
(5)  Includes results from the acquisitions of Strata Decision Technologies LLC from January 21, 2015, SoftWriters Inc. from February 9, 2015, Data Innovations LLC from March 4, 2015, On Center Software LLC from July 20, 2015, RF IDeas Inc. from September 1, 2015, Atlantic Health Partners LLC from September 4, 2015, Aderant Holdings Inc. from October 21, 2015, Atlas Database Software Corp. from October 26, 2015; and the results from the Black Diamond Advanced Technologies through disposal on March 20, 2015 and Abel Pumps through disposal on October 2, 2015.
(6)  The Company recognized an after tax gain of $687.3 in connection with the dispositions of the Imaging businesses and Gatan during 2019. The Tax Cuts and Jobs Act of 2017 (“the Tax Act”) was signed into U.S. law on December 22, 2017, which was prior to the end of the Company’s 2017 reporting period and resulted in a one-time net income tax benefit of $215.4.
(7)  Net working capital equals current assets, excluding cash, less total current liabilities, excluding debt.
(8)  In 2019 working capital includes the impact of the increase in income taxes payable of approximately $200.0 due to the taxes incurred on the gain on sale of Gatan, and the adoption of Accounting Standards Codification (“ASC”) Topic 842, Leases (“ASC 842”) which resulted in an increase to current liabilities of $56.8 as of December 31, 2019. The other balance sheet accounts impacted due to the adoption of ASC 842 are set forth in Note 16 of the Notes to Consolidated Financial Statements included in this Annual Report.

                                       |              |               | As of and for the Years ended December 31, |              |
-------------------------------------- | ------------ | ------------- | ------------------------------------------ | ------------ | ------------
                                       | 2019(1)(8)   | 2018(2)       | 2017(3)                                    | 2016(4)      | 2015(5)
Operations data:                       |              |               |                                            |              |
Net revenues                           | $  5,366.8   | $   5,191.2   | $   4,607.5                                | $   3,789.9  | $  3,582.4
Gross profit                           | 3,427.1      | 3,279.5       | 2,864.8                                    | 2,332.4      | 2,164.6
Income from operations                 | 1,498.4      | 1,396.4       | 1,210.2                                    | 1,054.6      | 1,027.9
Net earnings(6)                        | 1,767.9      | 944.4         | 971.8                                      | 658.6        | 696.1
Per share data:                        |              |               |                                            |              |
Basic earnings per share               | $      17.02 | $        9.15 | $       9.51                               | $       6.50 | $       6.92
Diluted earnings per share             | $     16.82  | $       9.05  | $       9.39                               | $       6.43 | $       6.85
Dividends declared per share           | $   1.9000   | $   1.7000    | $    1.4625                                | $    1.2500  | $   1.0500
Balance sheet data:                    |              |               |                                            |              |
Cash and cash equivalents              | $     709.7  | $     364.4   | $      671.3                               | $     757.2  | $     778.5
Working capital(7)                     | (505.4)      | (200.4)       | (140.4)                                    | (25.0)       | 126.2
Total assets                           | 18,108.9     | 15,249.5      | 14,316.4                                   | 14,324.9     | 10,168.4
Current portion of long-term debt      | 602.2        | 1.5           | 800.9                                      | 401.0        | 6.8
Long-term debt, net of current portion | 4,673.1      | 4,940.2       | 4,354.6                                    | 5,808.6      | 3,264.4
Stockholders’ equity                   | 9,491.9      | 7,738.5       | 6,863.6                                    | 5,788.9      | 5,298.9

ITEM 6 SELECTED FINANCIAL DATA
 read table Discussion Analysis Financial Condition Results Consolidated Financial Statements notes Annual Report millions.
 Includes acquisitions Foundry April 18 ComputerEase August 19, iPipeline Bellefield December 18 Imaging businesses February 5 Gatan October 29, 2019.
 Quote Software January 2 PlanSwift Software March Smartbid May 8 PowerPlan. June 4 ConceptShare June 7 BillBlast July 10 Avitru December 31,.
 Phase Technology June 21, Handshake Software. August 4 Workbook Software September 15 Onvia. November 17,.
 CliniSys Group. PCI Medical. GeneInsight. iSqFt Holdings. UNIConnect Deltek. December 28,.
 Includes Strata Decision Technologies SoftWriters. Data Innovations On Center Software RF IDeas. Atlantic Health Partners Aderant Holdings. Atlas Database Software. October 26, Black Diamond Advanced Technologies March 20 Abel Pumps October 2, 2015.
 after tax gain $687.Imaging businesses Gatan 2019. Tax Cuts Jobs Act 2017 signed. law December 22, 2017 2017 reporting period one-time net income tax benefit $215.
 Net working capital equals current assets less liabilities debt.
 2019 capital increase income taxes $200. sale Gatan Accounting Standards Codification 842 increase current liabilities $56. December 31, 2019. balance sheet accounts ASC 842 Note 16 Consolidated Financial Statements Annual Report.
 2015(5)
 Operations data
 Net revenues $ 5,366. 5,191. 4,607. 3,789. 3,582.
 Gross profit 3,427. 3,279. 2,864. 2,332. 2,164.
 Income operations 1,498. 1,396. 1,210. 1,054. 1,027.
 Net 1,767. 944. 971. 658. 696.
 Per share
 Basic earnings per share $ 17. $ 9.6. 50. 92
 earnings share 16. 82 9. 39.
 Dividends share 1. 9000 1. 7000. 4625. 2500.
 Balance sheet
 Cash equivalents 709. 364. 671. 757. 778.
 Working capital (505. (25 126.
 assets 18,108. 15,249. 14,316. 14,324. 10,168.
 long-term debt 602. 1. 800. 401.
 debt 4,673. 4,354. 5,808. 3,264.
 Stockholders’ equity 9,491. 7,738. 6,863. 5,788. 5,298.


Class A
As of December 31, 2019 and 2018, there were no weighted average shares of unvested Class A restricted common stock shares considered to be participating securities.
The computation of diluted earnings per share assumes the issuance of common stock for all potentially dilutive stock options and restricted stock units not classified as participating securities.
As of December 31, 2019, there were 1,718,865 shares of Class A restricted stock units and 1,478,756 Class A stock options outstanding and considered to be potentially dilutive securities. As of December 31, 2018, there were 912,315 shares of Class A restricted stock units and 866,011 Class A stock options outstanding and considered to be potentially dilutive securities.
The components of the calculation of basic earnings per share and diluted earnings per share are as follows:
For annual earnings per share calculations, there were 407,120 and 651,154 dilutive equity awards outstanding for the years ended December 31, 2019 and 2018. Awards of 920,845 and 469,112 shares of common stock for 2019 and 2018, respectively, were not included in the computation of diluted earnings per share because inclusion of these awards would be anti-dilutive.

                                            | Years Ended December 31, |
------------------------------------------- | ------------------------ | ----------
                                            | 2019                     | 2018
Net income                                  | $8,675                   | $13,489
Weighted average common shares outstanding: |                          |
Class A common stock - basic                | 89,251,818               | 88,394,580
Class A common stock - diluted              | 89,658,938               | 89,045,734

 December 31, 2019 2018 no unvested common stock participating.
 diluted earnings per share assumes issuance common stock potentially dilutive options units.
 December 31, 2019 1,718,865 shares 1,478,756 options dilutive. December 31, 2018 912,315 shares 866,011 options dilutive.
 earnings diluted earnings
 annual 407,120 651,154 dilutive equity awards December 31, 2019 2018. 920,845,112 shares 2019 2018 not included diluted earnings anti.
 Years
 Net income $8,675 $13,489
 Weighted average common shares
 Class A common stock 89,251,818 88,394,580
 diluted 89,658,938 89,045,734


Free cash flow
The Free cash flow for the Industrial Businesses amounted to €8,000 millions, resulting in a cash conversation rate of 0.89.
Beginning with fiscal 2020, Siemens adopts IFRS 16, Leases, applying
the modified retrospective approach as described in more detail in NOTE 2 in B.6 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. As a result, the shift of lease payments from cash flows from operating activities to cash flows from financing activities will have a positive effect on Free cash flow.
With our ability to generate positive operating cash flows, our total liquidity (defined as cash and cash equivalents plus current interest-bearing debt securities) of €13.7 billion, our unused lines of credit, and our credit ratings at year-end, we believe that we have sufficient flexibility to fund our capital requirements. Also in our opinion, our operating net working capital is sufficient for our present requirements.

                                                                 |                       |                         | Fiscal Year 2019
---------------------------------------------------------------- | --------------------- | ----------------------- | --------------------------------------
(in millions of €)                                               | Continuing operations | Discontinued operations | Continuing and discontinued operations
Cash flows from operating activities                             | 8,482                 | (27)                    | 8,456
Additions to intangible assets and property, plant and equipment | (2,610)               | −                       | (2,610)
Free cash flow                                                   | 5,872                 | (27)                    | 5,845

cash flow
 Industrial Businesses €8,000 millions cash conversation rate 0. 89.
 2020 Siemens adopts IFRS 16 Leases
 modified retrospective approach NOTE 2. 6 STATEMENTS. shift lease payments financing cash flow.
 positive operating cash flows liquidity debt securities €13. 7 billion unused lines credit credit ratings year-end sufficient flexibility fund capital requirements. operating net working capital sufficient requirements.
 Fiscal Year 2019
 millions Continuing Discontinued operations
 Cash flows 8,482
 Additions intangible assets property equipment (2,610)
 Free cash flow 5,872


6 Segment Information continued
The Group’s revenue is diversified across its entire end customer base and no single end user accounted for greater than 10 per cent of the Group’s revenue in either 2018 or 2019. In 2019 two distributors accounted for 15 per cent each, and one distributor for 11 per cent of Group billings which were attributable to all segments of the Group (2018: three distributors accounted for 15 per cent, 14 per cent and 12 per cent each).

                                                 | Year-ended 31 March 2019 | Year-ended 31 March 2018 Restated See note 2
------------------------------------------------ | ------------------------ | --------------------------------------------
Revenue from external customers by country       | $M                       | $M
UK                                               | 83.2                     | 73.5
USA                                              | 222.2                    | 199.0
Germany                                          | 143.5                    | 128.4
Other countries                                  | 261.7                    | 238.1
Total revenue from external customers by country | 710.6                    | 639.0

 revenue diversified no user 10 per cent revenue 2018 2019. 2019 two distributors 15 one 11 per cent billings three distributors 15 14 12 cent.
 Year-ended 31 March 2019 March 2018
 Revenue customers country $M
 UK 83. 73.
 USA 222. 199.
 Germany 143. 128.
 Other countries 261. 7 238.
 revenue country 710. 6 639.


The 2022 Notes consist of the following (in thousands):
(1) Recorded in the consolidated balance sheet within additional paid-in capital, net of $0.8 million transaction costs in equity. December 31, 2019 also includes $36.7 million market premium representing the excess of the total consideration delivered over the fair value of the liability recognized related to the $23.0 million principal balance repurchase of the 2022 Notes.

                                         | As of December 31, |
---------------------------------------- | ------------------ | --------
                                         | 2019               | 2018
Liability component:                     |                    |
Principal                                | $92,000            | $115,000
Less: debt discount, net of amortization | (12,776)           | (20,903)
Net carrying amount                      | $79,224            | $94,097
Equity component (1)                     | (14,555)           | 22,094

2022 Notes
 consolidated balance capital $0. 8 million costs. $36. 7 million market premium excess liability $23. million repurchase 2022 Notes.
 December
 Liability
 Principal $92,000 $115,000
 debt discount amortization (12,776
 Net carrying amount $79,224 $94,097
 Equity component (14,555) 22,094


General and administrative expenses consist primarily of payroll and payroll related benefits expenses, related overhead, audit fees, other professional fees, contract labour and consulting expenses and public company costs.
General and administrative expenses increased by $2.7 million during the year ended June 30, 2019 as compared to the prior fiscal year. This was primarily due to an increase in payroll and payroll-related benefits of $4.1 million and an increase in other miscellaneous expenses of $2.2 million, which includes professional fees such as legal, audit and tax related expenses. These were partially offset by a reduction in the use of facility and related expenses of $4.5 million. The remainder of the change was attributable to other activities associated with normal growth in our business operations. Overall, general and administrative expenses, as a percentage of total revenue, remained at approximately 7%.
Our general and administrative labour resources increased by 119 employees, from 1,501 employees at June 30, 2018 to 1,620 employees at June 30, 2019.

                                                    | Change between Fiscal increase (decrease) |
--------------------------------------------------- | ----------------------------------------- | -------------
(In thousands)                                      | 2019 and 2018                             | 2018 and 2017
Payroll and payroll-related benefits                | $4,089                                    | $22,908
Contract labour and consulting                      | (618)                                     | (1,054)
Share-based compensation                            | 768                                       | (1,709)
Travel and communication                            | 794                                       | 80
Facilities                                          | (4,537)                                   | 5,777
Other miscellaneous                                 | 2,186                                     | 8,872
Total change in general and administrative expenses | $2,682                                    | $34,874

administrative expenses payroll benefits overhead audit professional fees contract labour consulting public company costs.
 increased $2. 7 million June 2019. due to increase payroll benefits $4. 1 million miscellaneous expenses $2. 2 million. offset by reduction facility expenses $4. 5 million. remainder change activities growth. expenses revenue remained 7%.
 labour resources increased 119 employees from 1,501 2018 to 1,620 2019.
 Change
 Payroll benefits $4,089 $22,908
 Contract labour consulting (618)
 Share-based compensation 768
 Travel communication 794
 Facilities (4,537)
 Other miscellaneous 2,186
 Total change expenses $2,682 $34,874


Return on invested capital (ROIC)
ROIC measures the after tax return on the total capital invested in the business. It is calculated as adjusted operating profit after tax divided by average invested capital.
An analysis of the components is as follows:

                                                        | 2019    | 2018
------------------------------------------------------- | ------- | -------
                                                        | £m      | £m
Total equity                                            | 826.3   | 766.9
Net debt                                                | 334.1   | 235.8
Total invested capital                                  | 1,160.4 | 1,002.7
Average invested capital                                | 1,081.6 | 992.9
Average invested capital (excluding IFRS 16)            | 1,061.2 | 992.9
Operating profit as reported under IFRS                 | 245.0   | 299.1
Adjustments (see adjusted operating profit)             | 37.7    | (34.2)
Adjusted operating profit                               | 282.7   | 264.9
Taxation                                                | (80.6)  | (73.1)
Adjusted operating profit after tax                     | 202.1   | 191.8
Adjusted operating profit after tax (excluding IFRS 16) | 201.2   | 191.8
Return in invested capital                              | 18.7%   | 19.3%
Return in invested capital (excluding IFRS 16)          | 19.0%   | 19.3%

Return invested capital
 after tax return total capital. calculated adjusted operating profit after tax divided average invested capital.
 components
 Total equity 826. 766.
 Net debt 334. 235.
 invested capital 1,160. 4 1,002.
 1,081. 6 992.
 1,061. 992.
 Operating profit 245. 299.
 37. 7 (34.
 282. 264. 9
 Taxation (80. (73.
 operating profit after 202. 191.
 201. 191.
 Return invested capital 18. 7% 19. 3%
 19.


Other income (expense)
nm—not meaningful
Other income (expense), net changed $9.9 million in the year ended March 31, 2018 compared to the year ended March 31, 2017, which was primarily attributable to a change of $10.4 million in foreign exchange expense which was primarily attributable to the re-measurement of short-term intercompany balances denominated in currencies other than the functional currency of our operating units. The increase in interest income is primarily due to interest on investments.

                                                   | Year ended March 31, |                        | Period-to-period change |
-------------------------------------------------- | -------------------- | ---------------------- | ----------------------- | --------
% Change                                           | 2018                 | 2017                   | Amount                  | % Change
                                                   |                      | (dollars in thousands) |                         |
Other income (expense):                            |                      |                        |                         |
Interest income                                    | $1,310               | $510                   | $800                    | 157%
Interest expense                                   | (598)                | (268)                  | (330)                   | 123%
Foreign exchange (expense) income and other, net   | (3,439)              | 6,892                  | (10,331)                | nm
Total other income (expense), net                  | $(2,727)             | $7,134                 | $(9,861)                | nm

income (expense
 changed $9. million March 31, 2018 2017 change $10. 4 million foreign exchange expense re-measurement intercompany balances. increase interest income due investments.
 March Period-to-period change
 % Change 2018 2017 %
 (dollars thousands
 Interest income $1,310 $510  $800 157%
 Interest expense (598) (268) (330) 123%
 Foreign exchange (expense income (3,439) 6,892 (10,331)
 $(2,727) $7,134 $(9,861)


In 2019, 2018 and 2017, we adopted the revised mortality tables and projection scales released by the Society of Actuaries, which decreased the projected benefit obligation of our benefit plans by $4 million, $38 million and $113 million, respectively. The change in the projected benefit obligation of our benefit plans was recognized as part of the net actuarial (gain) loss and is included in accumulated other comprehensive loss, a portion of which is subject to amortization over the remaining estimated life of plan participants, which was approximately 16 years as of December 31, 2019.
The following tables summarize the change in the benefit obligations for the Combined Pension Plan and post-retirement benefit plans:

                                        |         | Combined Pension Plan    |
--------------------------------------- | ------- | ------------------------ | -------
                                        |         | Years Ended December 31, |
                                        | 2019    | 2018                     | 2017
                                        |         | (Dollars in millions)    |
Change in benefit obligation            |         |                          |
Benefit obligation at beginning of year | $11,594 | 13,064                   | 13,244
Service cost                            | 56      | 66                       | 63
Interest cost                           | 436     | 392                      | 409
Plan amendments                         | (9)     | —                        | —
Special termination benefits charge     | 6       | 15                       | —
Actuarial (gain) loss                   | 1,249   | (765)                    | 586
Benefits paid from plan assets          | (1,115) | (1,178)                  | (1,238)
Benefit obligation at end of year       | $12,217 | 11,594                   | 13,064

2019 2018 2017 adopted revised mortality tables projection scales Society Actuaries decreased projected benefit obligation $4 million $38 million $113 million. change net actuarial loss included loss subject amortization life 16 years December 31, 2019.
 tables summarize benefit obligations Combined Pension Plan post-retirement benefit plans
 Years Ended December 31,
 2018
 millions
 Change benefit obligation
 beginning year $11,594 13,064
 Service cost
 Interest cost
 Plan amendments
 Special termination benefits charge
 Actuarial (gain) loss 1,249
 Benefits paid plan assets (1
 obligation end year $12,217


Additional sources of cash available to us were international currency lines of credit and bank credit facilities totaling $26.0 million as of September 28, 2019, of which $20.8 million was unused and available. These unsecured international credit facilities were used in Europe and Japan during fiscal 2018. As of September 28, 2019, we had utilized $5.2 million of the international credit facilities as guarantees in Europe.
Our ratio of current assets to current liabilities increased to 4.6:1 at September 28, 2019 compared to 3.3:1 at September 29, 2018. The increase in our ratio was primarily due to lower income taxes payable, partially offset by decreases in our ratio due to lower accounts receivable and inventories. Our cash and cash equivalents, short-term investments and working capital are as follows (in thousands):

                          | Fiscal   |
------------------------- | -------- | --------
                          | 2019     | 2018
Cash and cash equivalents | $305,833 | $310,495
Short-term investments    | 120      | 120
Working capital           | 854,507  | 865,664

sources cash international currency bank facilities $26. 0 million September 28, 2019 $20. 8 million unused. unsecured credit facilities Europe Japan 2018. utilized $5. 2 million Europe.
 current assets liabilities increased. 6:1 September 2019. 3:1 29, 2018. lower income taxes accounts receivable inventories. cash equivalents short investments working capital
 Cash equivalents $305,833 $310,495
 Short-term investments
 Working capital,507 865,664


Restricted Share Awards
During the years ended December 31, 2017, pursuant to the Company’s 2016 Incentive Plan and 2005 Incentive Plan, the Company granted RSAs. The awards have requisite service periods of three years and vest in increments of 33% on the anniversary of the grant dates. Under each arrangement, shares are issued without direct cost to the employee. RSAs granted to our board vest one year from grant or as of the next annual shareholders meeting, whichever is earlier. The Company estimates the fair value of the RSAs based upon the market price of the Company’s stock at the date of grant. The RSA grants provide for the payment of dividends on the Company’s common stock, if any, to the participant during the requisite service period, and the participant has voting rights for each share of common stock. The Company recognizes compensation expense for RSAs on a straight-line basis over the requisite service period.
A summary of nonvested RSAs is as follows:
During the year ended December 31, 2019, a total of 106,610 RSAs vested. The Company withheld 32,371 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

                               | Number of Shares | Weighted Average Grant Date Fair Value
------------------------------ | ---------------- | --------------------------------------
Nonvested at December 31, 2018 | 213,337          | $20.21
Vested                         | -106,610         | 20.17
Forfeited                      | -13,885          | 20.64
Nonvested at December 31, 2019 | 92,842           | $20.13

Restricted Share Awards
 December 31, 2017 granted RSAs. awards service periods three years vest 33% anniversary grant dates. shares issued without cost employee. RSAs granted vest one year or next meeting. Company estimates fair value market price stock date grant. grants dividends common stock voting rights. recognizes compensation expense RSAs straight.
 nonvested RSAs
 December 31, 2019 106,610 RSAs vested. withheld 32,371 minimum payroll withholding taxes.
 Shares Average Grant Date Value
 Nonvested December 31, 2018 213,337 $20.
 Vested -106,610.
,885.
 Nonvested December 31, 2019 92,842 $20.


Europe
Europe net revenues increased $749,000 in 2019 compared to 2018 (see “Revenues” above). Europe expenses increased $1.3 million from 2018 to 2019 primarily due to increased marketing costs.
Foreign currency movements relative to the U.S. dollar negatively impacted our local currency income from our operations in Europe by approximately $207,000 and $181,000 for 2019 and 2018, respectively.

Year Ended December 31,                   |         |
----------------------------------------- | ------- | -------
                                          | 2019    | 2018
(In thousands)                            |         |
Revenues                                  | $36,898 | $36,149
Income from operations                    | $4,461  | $4,973
Income from operations as a % of revenues | 12%     | 14%

 revenues increased $749,000 2019 2018. expenses increased $1. 3 million 2019 increased marketing costs.
 Foreign currency movements. impacted local income $207,000 $181,000 2019 2018.
 Ended December 31,
 Revenues $36,898 $36,149
 Income operations $4,461 $4,973


NOTE 21 — QUARTERLY INFORMATION (UNAUDITED)
(a) Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information.
(b) Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019.
(c) Reflects the net charge (benefit) related to the enactment of the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.
(d) Reflects the net charge (benefit) related to the enactment of the TCJA, which decreased (increased) diluted EPS $1.78 for the second quarter, $(0.01) for the fourth quarter, and $1.75 for fiscal year 2018.

(In millions, except per share amounts) |              |             |           |           |
--------------------------------------- | ------------ | ----------- | --------- | --------- | ----------
Quarter Ended                           | September 30 | December 31 | March 31  | June 30   | Total
Fiscal Year 2019                        |              |             |           |           |
Revenue                                 | $  29,084    | $  32,471   | $  30,571 | $  33,717 | $  125,843
Gross margin                            | 19,179       | 20,048      | 20,401    | 23,305    | 82,933
Operating income                        | 9,955        | 10,258      | 10,341    | 12,405    | 42,959
Net income (a)                          | 8,824        | 8,420       | 8,809     | 13,187    | 39,240
Basic earnings per share                | 1.15         | 1.09        | 1.15      | 1.72      | 5.11
Diluted earnings per share (b)          | 1.14         | 1.08        | 1.14      | 1.71      | 5.06
Fiscal Year 2018                        |              |             |           |           |
Revenue                                 | $  24,538    | $ 28,918    | $ 26,819  | $ 30,085  | $ 110,360
Gross margin                            | 16,260       | 17,854      | 17,550    | 20,343    | 72,007
Operating income                        | 7,708        | 8,679       | 8,292     | 10,379    | 35,058
Net income (loss) (c)                   | 6,576        | (6,302)     | 7,424     | 8,873     | 16,571
Basic earnings (loss) per share         | 0.85         | (0.82)      | 0.96      | 1.15      | 2.15
Diluted earnings (loss) per share (d)   | 0.84         | (0.82)      | 0.95      | 1.14      | 2.13

NOTE 21 QUARTERLY INFORMATION
 Reflects $157 million charge TCJA second quarter $2. 6 billion income tax benefit intangible property transfers fourth quarter increased net income $2. 4 billion fiscal 2019. Note 12 Income Taxes.
 Reflects net charge TCJA intangible property transfers diluted EPS. second. fourth. 2019.
 Reflects net TCJA $13. billion second quarter $(104) million fourth quarter $13. 7 billion fiscal year 2018.
 decreased diluted EPS $1. 78 second quarter. fourth quarter $1. 75 2018.
 Quarter Ended September 30 December 31 March 31 June 30
 Fiscal Year 2019
 Revenue $ 29,084 $ 32,471 30,571 33,717 125,843
 Gross margin 19,179
 Operating income 9
 Net income 8,824
earnings share. 15. 09. 72.
 Diluted earnings. 14. 08. 71.
 2018
 Revenue $ 24,538 28,918 26,819 30,085 110,360
 Gross margin 16,260 17,854 20,343 72,007
 Operating income 7,708 8,679 10,379 35,058
 Net income 6,576 (6,302) 8,873 16,571
 Basic earnings. 85. 96. 15.
 earnings. 84. 95. 14.


2. Disaggregation of Revenue
The following table disaggregates our net sales by product category (in millions):

Product Category             | Fiscal Year 2019 | Fiscal Year 2018  | Fiscal Year 2017
---------------------------- | ---------------- | ----------------- | ----------------
Fresh, vacuum-sealed chicken | $1,310.2         | $1,139.3          | $1,339.1
Fresh, chill-packed chicken  | 1,137.7          | 1,158.3           | 1,044.7
Fresh, ice-packed chicken    | 511.5            | 503.6             | 547.1
Prepared chicken             | 240.8            | 207.6             | 170.8
Frozen chicken               | 213.0            | 211.5             | 223.9
Other                        | 27.1             | 15.7              | 16.6
Total net sales              | $3,440.3         | $3,236.0          | $3,342.2

. Disaggregation Revenue
 table sales product category
 2019 2018
 vacuum-sealed chicken $1,310. $1,139. $1,339.
 chill-packed 1,137. 1,158. 1,044.
-packed 511. 503. 547.
 Prepared 240. 207. 170.
 Frozen 213. 211. 223.
 27.
 sales $3,440. 3 $3,236. $3,342.


Investments
As of June 30, 2019, the Group’s investments consisted of the following:
As of June 30, 2019, the Group had $445.0 million of investments which were classified as short-term investments on the Group’s consolidated statements of financial position. Additionally, the Group had marketable equity securities totaling $58.9 million, non-marketable equity securities totaling $3.0 million, and certificates of deposit and time deposits totaling $3.7 million which were classified as long-term and were included in other non-current assets on the Group’s consolidated statements of financial position.

                                          | Amortized Cost | Unrealized Gains      | Unrealized Losses | Fair Value
----------------------------------------- | -------------- | --------------------- | ----------------- | ----------
                                          |                | (U.S. $ in thousands) |                   |
Debt Investments                          |                |                       |                   |
Marketable debt securities                |                |                       |                   |
U.S. treasury securities                  | $101,563       | $203                  | $(7)              | 101,759
Agency securities                         | 26,936         | 33                    | (3)               | 26,966
Certificates of deposit and time deposits | 24,126         | —                     | —                 | 24,126
Commercial paper                          | 94,035         | —                     | —                 | 94,035
Corporate debt securities                 | 201,552        | 292                   | (24)              | 201,820
Total debt investments                    | 448,212        | 528                   | (34)              | 448,706
Equity Investments                        |                |                       |                   |
Marketable equity securities              | 20,270         | 38,662                | —                 | 58,932
Non-marketable equity securities          | 3,000          | —                     | —                 | 3,000
Total equity investments                  | 23,270         | 38,662                | —                 | 61,932
Total investments                         | $471,482       | $39,190               | $(34)             | $510,638

 June 30, 2019
 $445. million short-term. marketable equity securities $58. 9 million non-marketable equity securities $3. 0 million certificates of deposit time deposits $3. 7 million long-term non assets.
 Amortized Cost Unrealized Gains Losses Fair Value
.
 Debt Investments
 Marketable debt securities
. treasury securities $101,563 101,759
 Agency securities 26,936
 Certificates deposit time deposits 24,126
 94,035
 Corporate debt securities 201,552
 Total debt investments  448,212
 Equity Investments
 Marketable equity securities 20,270 38,662 58,932
 Non-marketable equity securities
 Total equity investments 23,270 38,662 61,932
 $471,482  $39,190 $510,638


12. INCOME TAXES
On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law in the U.S. The Tax Act significantly revised the future ongoing U.S. corporate income tax by, among other things, lowering the U.S. corporate income tax rate to 21% from 35%, providing full expensing for investments in new and used qualified property made after September 27, 2017, and implementing a territorial tax system. In connection with the transition to the new territorial tax system, a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries was imposed for fiscal 2018 (the “Transitional Repatriation Tax”), for which an election can be made to pay over eight years. In addition, the Tax Act included two new U.S. tax base erosion provisions, the Global Intangible Low-Taxed Income (“GILTI”) provisions and the Base- Erosion and Anti-Abuse Tax (“BEAT”) provisions, which became effective for the Company during fiscal 2019. The GILTI provisions generally result in inclusion of income earned by foreign subsidiaries in the U.S. taxable income.
In response to the Tax Act, the SEC issued Staff Accounting Bulletin No. 118 which allowed companies to recognize provisional estimates in the preparation of a Company’s financial statements and permitted up to a one year measurement period after the enactment date of the Tax Act to finalize the recording of the related tax impacts.
During fiscal 2018, the Company recorded a net provisional tax expense of $77.3 million for the estimated effects of the Tax Act. This was comprised of a provisional Transitional Repatriation Tax expense of $116.4 million, offset by a provisional deferred tax benefit of $39.1 million from the remeasurement of U.S. deferred tax assets and liabilities. The Company completed its analysis of the impact of the Tax Act during the third quarter of fiscal 2019, and during the first three quarters of fiscal 2019 recorded a net discrete income tax benefit adjustment of $17.0 million to the prior year provisional estimates, comprised of a $1.9 million reduction to the provisional Transitional Repatriation Tax and a $15.1 million increase in U.S. deferred tax assets.
The GILTI provisions became effective for the Company in fiscal 2019 and resulted in a net $30.4 million tax expense, consisting of a $70.8 million expense related to the inclusion of unremitted foreign earnings offset by a $40.4 million tax benefit from additional foreign tax credits. The Company has made an accounting policy decision under U.S. GAAP to treat taxes due on future GILTI inclusions in U.S. taxable income as a current-period expense (the “period cost method”).
Income (loss) before income taxes consists of the following components (in thousands):

              |            | Fiscal Year |
------------- | ---------- | ----------- | -------
              | 2019       | 2018        | 2017
United States | $(297,975) | $(151,083)  | $2,439
Foreign       | 389,767    | 168,228     | 24,866
Total         | $91,792    | $17,145     | $27,305

. INCOME TAXES
 December 22, 2017 Tax Cuts and Jobs Act signed. revised. corporate income tax. rate 21% from 35% full expensing investments new property after September 27, 2017 territorial tax system. one-time transition tax unrepatriated earnings foreign subsidiaries imposed fiscal 2018 Repatriation eight years. Act included. tax base erosion provisions Global Intangible Low-Taxed Income Base- Erosion Anti-Abuse Tax effective fiscal 2019. foreign subsidiaries. taxable income.
 SEC issued Staff Accounting Bulletin No. 118 provisional estimates one year measurement period after Act.
 fiscal 2018 Company recorded net provisional tax expense $77. 3 million Tax Act. Transitional Repatriation Tax expense $116. 4 million offset deferred tax benefit $39. 1 million. 2019 first three quarters net income tax benefit adjustment $17. million estimates $1. 9 million reduction Transitional Repatriation Tax $15. 1 million increase.deferred tax assets.
 GILTI provisions 2019 net $30. 4 million tax expense $70. 8 million expense unremitted foreign earnings offset $40. 4 million benefit credits. future GILTI inclusions. current-period expense.
 Income before taxes
 United States $(297,975) $(151,083) $2,439
 Foreign 389,767 168,228 24,866
 Total $91,792 $17,145 $27,305


Indebtedness
The following table presents selected financial information on our indebtedness (in thousands):
As of December 27, 2019, we have various floating- and fixed-rate debt instruments with varying maturities for an aggregate principal amount of $392.1 million. See Note 9 “Debt Obligations” to our consolidated financial statements for a full description of our debt instruments.
On November 22, 2019, we issued $150.0 million aggregate principal amount of 1.875% Convertible Senior Notes (the “Senior Notes”). Approximately $43.2 million of the net proceeds were used to repay all outstanding borrowings then outstanding under our ABL and we intend to use the remainder for working capital and general corporate purposes, which may include future acquisitions.
On July 25, 2018, the holders of the $36.8 million principal amount of convertible subordinated notes that were issued in connection with our acquisition of Del Monte converted these notes and related accrued interest of $0.3 million into 1,246,272 shares of the Company’s common stock.
On June 29, 2018, we entered into an asset-based loan facility (“ABL”) that increased our borrowing capacity from $75.0 million to $150.0 million. Additionally, we reduced the fixed-rate portion of interest charged on our senior secured term loan (“Term Loan”) from 475 basis points to 350 basis points over Adjusted LIBOR as a result of repricings executed on December 14, 2017 and November 16, 2018.
A portion of the interest rate charged on our Term Loan is currently based on LIBOR and, at our option, a component of the interest charged on the borrowings outstanding on our ABL, if any, may bear interest rates based on LIBOR. LIBOR has been the subject of reform and is expected to phase out by the end of fiscal 2021. The consequences of the discontinuation of LIBOR cannot be entirely predicted but could impact the interest expense we incur on these debt instruments. We will negotiate alternatives to LIBOR with our lenders before LIBOR ceases to be a widely available reference rate.

                                                    |                   | Fiscal Year Ended |
--------------------------------------------------- | ----------------- | ----------------- | -----------------
                                                    | December 27, 2019 | December 28, 2018 | December 29, 2017
Senior secured term loan                            | $238,129          | $239,745          | $238,435
Total Convertible debt                              | $154,000          | $—                | $36,750
Borrowings outstanding on asset-based loan facility | $—                | $44,185           | $—
Finance leases and other financing obligations      | $3,905            | $193              | $664

Indebtedness
 table indebtedness
 December 27, 2019 floating- fixed-rate debt instruments varying maturities principal amount $392. 1 million. Note 9 “Debt.
 November 22, 2019 issued $150. 0 million 1. 875% Convertible Senior Notes. $43. 2 million proceeds borrowings use remainder working capital corporate purposes future acquisitions.
 July 25, 2018 $36. 8 million convertible notes Del Monte converted $0. 3 million 1,246,272 shares common stock.
 June 29, 2018 loan facility increased borrowing capacity $75. 0 million to $150. 0 million. reduced fixed-rate interest senior secured term loan 475 to 350 points LIBOR repricings December 14, 2017 November 16, 2018.
 interest rate Term Loan based LIBOR borrowings LIBOR. LIBOR phase out 2021. discontinuation LIBOR impact interest expense. negotiate alternatives LIBOR before LIBOR.

 December 27, 2019 28, 2018 29,
 loan $238,129 $239,745
 Convertible debt $154,000 $36,750
 Borrowings loan $44,185
 leases obligations $3,905


ITEM 6. SELECTED FINANCIAL DATA
The selected financial data should be read in conjunction with our “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and our audited consolidated financial statements and the related notes to those consolidated financial statements included in this Annual Report.
Year-over-year comparisons are significantly affected by our acquisitions, dispositions and construction of towers. Our transaction with Verizon Communications Inc. (“Verizon” and the transaction, the “Verizon Transaction”) and the acquisition of a controlling ownership interest in Viom Networks Limited (“Viom” and the acquisition, the “Viom Acquisition”), which closed in March 2015 and April 2016, respectively, significantly impact the comparability of reported results between periods. Our principal 2019 acquisitions are described in note 7 to our consolidated financial statements included in this Annual Report.
(2) As of December 31, 2019, 2018, 2017, 2016 and 2015, amounts include $76.8 million, $96.2 million, $152.8 million, $149.3 million, and $142.2 million, respectively, of restricted funds pledged as collateral to secure obligations and cash, the use of which is otherwise limited by contractual provisions.
(3) Total assets as of December 31, 2019 includes the Right-of-use asset recognized in connection with our adoption of the new lease accounting standard described in note 1 to our consolidated financial statements included in this Annual Report

                                                          |          |          | As of December 31, |          |
--------------------------------------------------------- | -------- | -------- | ------------------ | -------- | --------
                                                          | 2019     | 2018     | 2017               | 2016     | 2015
(In millions)                                             |          |          |                    |          |
Balance Sheet Data:                                       |          |          |                    |          |
Cash and cash equivalents (including restricted cash) (2) | $1,578.0 | $1,304.9 | $954.9             | $936.5   | $462.9
Property and equipment, net                               | 12,084.4 | 11,247.1 | 11,101.0           | 10,517.3 | 9,866.4
Total assets (3)                                          | 42,801.6 | 33,010.4 | 33,214.3           | 30,879.2 | 26,904.3
Long-term obligations, including current portion          | 24,055.4 | 21,159.9 | 20,205.1           | 18,533.5 | 17,119.0
Redeemable noncontrolling interests                       | 1,096.5  | 1,004.8  | 1,126.2            | 1,091.3  | —
Total American Tower Corporation equity                   | 5,055.4  | 5,336.1  | 6,241.5            | 6,763.9  | 6,651.7

. SELECTED FINANCIAL DATA
 with Discussion Analysis Financial Condition Results Operations audited consolidated financial statements notes.
 Year-over-year comparisons affected by acquisitions dispositions construction towers. transaction Verizon Communications. Viom Networks closed March 2015 April 2016, impact results. 2019 acquisitions note 7.
 As December 31, 2019 2018 2017 2016 2015, amounts include $76. 8 million $96. 2 million $152. 8 million $149. 3 million $142. 2 million restricted funds cash limited contractual provisions.
 Total assets December 31, 2019 Right-of-use asset new lease accounting standard note 1
 December
 2019 2018 2017 2016 2015
 Balance Sheet Data
 Cash equivalents restricted cash $1,578. $1,304. $954. $936. $462.
 Property equipment 12,084. 11,247. 11,101. 10,517.9,866.
 42,801. 33,010. 33,214. 30,879. 26,904.
 obligations 24,055. 21,159. 20,205. 18,533. 17,119.
 interests 1,096. 1,004. 1,126.
 5,055. 5,336. 6,241. 6,651.


We recorded a liability for unrecognized tax positions. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended March 31:
As of March 31, 2019, we had a liability of $0.6 million related to uncertain tax positions, the recognition of which would affect our effective income tax rate.
Although the timing and outcome of tax settlements are uncertain, it is reasonably possible that during the next 12 months an immaterial reduction in unrecognized tax benefits may occur as a result of the expiration of various statutes of limitations. We are routinely audited and the outcome of tax examinations could also result in a reduction in unrecognized tax benefits. Other changes could occur in the amount of gross unrecognized tax benefits during the next 12 months which cannot be estimated at this time.
We recognize interest accrued on any unrecognized tax benefits as a component of income tax expense. Penalties are recognized as a component of general and administrative expenses. We recognized interest and penalty expense of less than $0.1 million for the years ended March 31, 2019, 2018 and 2017. As of March 31, 2019 and 2018, we had approximately $0.5 million and $0.8 million of interest and penalties accrued.
In the U.S. we file consolidated federal and state income tax returns where statutes of limitations generally range from three to five years. Although we have resolved examinations with the IRS through tax year ended March 31, 2010, U.S. federal tax years are open from 2006 forward due to attribute carryforwards.
The statute of limitations is open from fiscal year 2012 forward in certain state jurisdictions. We also file income tax returns in international jurisdictions where statutes of limitations generally range from three to seven years. Years beginning after 2008 are open for examination by certain foreign taxing authorities.

(In thousands)                                | 2019  | 2018  | 2017
--------------------------------------------- | ----- | ----- | ------
Balance at April 1                            | $687  | $988  | $1,617
Reductions:                                   |       |       |
Relating to positions taken during prior year | —     | (300) | (604)
Relating to lapse in statute                  | (107) | (1)   | (25)
Balance at March 31                           | $580  | $687  | $988

recorded liability unrecognized tax positions. changes benefits years March 31
 March 2019 liability $0. 6 million uncertain tax positions income tax rate.
 tax settlements uncertain reduction tax benefits expiration statutes limitations. audited tax examinations. changes benefits.
 interest unrecognized tax benefits expense. Penalties expenses. recognized interest penalty expense less than $0. 1 million years March 31, 2019 2018 2017. $0. 5 million $0. 8 million interest penalties accrued.
. consolidated federal state income tax returns statutes limitations three to five years. resolved examinations IRS March 31, 2010,. tax years open 2006.
 statute limitations open 2012 state jurisdictions. file returns international jurisdictions statutes limitations three to seven years. Years after 2008 open examination foreign taxing authorities.
 2018 2017
 Balance April 1 $687 $988 $1,617
 Reductions
positions (604)
 lapse statute (107)
 Balance March 31 $580 $687 $988


29. Share-based payments continued
The number of options outstanding and exercisable as at 31 March was as follows:
The weighted average market value per ordinary share for DABP options exercised in 2019 was 438.1p (2018: n/a). The DABP awards outstanding at 31 March 2018 have a weighted average remaining vesting period of 0.8 years (2018: 1.2 years) and a weighted average contractual life of 8.8 years (2018: 9.2 years). The charge for the year includes an estimate of the awards to be granted after the balance sheet date in respect of achievement of 2019 targets.

                              | 2019      | 2018
----------------------------- | --------- | --------
                              | Number    | Number
Outstanding at 1 April        | 303,880   | 248,263
Options granted in the year   | 71,552    | 127,691
Dividend shares awarded       | 3,343     | 1,306
Options forfeited in the year | –         | (73,380)
Options exercised in the year | (229,378) | –
Outstanding at 31 March       | 149,397   | 303,880
Exercisable at 31 March       | –         | 74,686

. Share-based payments
 options outstanding exercisable 31 March
 average market value share DABP options 2019 438. n/a. DABP awards 31 March vesting period. years. contractual life 8. years. estimate awards after balance sheet 2019 targets.
 1 April 303,880,263
 Options granted 71,552 127,691
 Dividend shares awarded 3,343 1,306
 forfeited (73,380
 exercised (229,378
 31 March 149,397 303,880
 Exercisable 31 74,686


ITEM 6. SELECTED FINANCIAL DATA
Financial Highlights (dollars in thousands, except per share amounts)
(1) During fiscal 2019, the Company recorded $7.0 million of special tax expense in accordance with regulations under U.S. Tax Reform, and reasserted that certain historical undistributed earnings of two foreign subsidiaries will be permanently reinvested, resulting in a $10.5 million benefit.
(2) During fiscal 2019, the Company recorded $1.7 million, $1.5 million net of taxes, in restructuring costs, which are included in operating income.
(3) During fiscal 2018, the Company recorded $85.9 million of non-recurring income tax expense due to the enactment of U.S. Tax Reform and paid a $13.5 million one-time non-executive employee bonus.
(4) During fiscal 2016, the Company recorded $7.0 million in restructuring costs and $5.2 million in selling and administrative expenses, which are included in operating income. The $7.0 million was largely related to the Company's closure of its manufacturing facility in Fremont, California, and the partial closure of its Livingston, Scotland facility. The $5.2 million was related to accelerated share-based compensation expense recorded pursuant to the retirement agreement with the Company's former Chief Executive Officer. During fiscal 2015 the Company recorded $1.7 million of restructuring costs, largely related to the Company's consolidation of its manufacturing facilities in Wisconsin, as well as its relocation of manufacturing operations from Juarez, Mexico to Guadalajara, Mexico.
(5) The Company defines return on invested capital ("ROIC"), a non-GAAP financial measure, as tax-effected operating income divided by average invested capital over a rolling five-quarter period. Invested capital is defined as equity plus debt, less cash and cash equivalents, as discussed in Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations - Return on Invested Capital ("ROIC") and Economic Return." For a reconciliation of ROIC and Economic Return to our financial statements that were prepared in accordance with GAAP, see Exhibit 99.1 to this annual report on Form 10-K.
(6) Fiscal 2015 included 53 weeks. All other periods presented included 52 weeks.

                                             |                    |                    | Fiscal Years Ended |                 |
-------------------------------------------- | ------------------ | ------------------ | ------------------ | --------------- | ------------------
Income Statement Data                        | September 28,
2019 | September 29,
2018 | September 30,
2017 | October 1,
2016 | October 3,
2015(6)
Net sales                                    | $3,164,434         | $2,873,508         | $2,528,052         | $2,556,004      | $2,654,290
Gross profit                                 | 291,838            | 257,600            | 255,855            | 227,359         | 239,550
Gross margin percentage                      | 9.2%               | 9.0%               | 10.1%              | 8.9%            | 9.0%
Operating income (2) (3) (4)                 | 142,055            | 118,283            | 129,908            | 99,439          | 115,436
Operating margin percentage (2) (3) (4)      | 4.5%               | 4.1%               | 5.1%               | 3.9%            | 4.3%
Net income (1) (2) (3) (4)                   | 108,616            | 13,040             | 112,062            | 76,427          | 94,332
Earnings per share (diluted) (1) (2) (3) (4) | $3.50              | $0.38              | $3.24              | $2.24           | $2.74
Cash Flow Statement Data                     |                    |                    |                    |                 |
Cash flows provided by operations            | $115,300           | $66,831            | $171,734           | $127,738        | $76,572
Capital equipment additions                  | 90,600             | 62,780             | 38,538             | 31,123          | 35,076
Balance Sheet Data                           |                    |                    |                    |                 |
Total assets                                 | $2,000,883         | $1,932,642         | $1,976,182         | $1,765,819      | $1,691,760
Total debt obligations                       | 287,980            | 188,617            | 313,107            | 262,509         | 261,806
Shareholders’ equity                         | 865,576            | 921,143            | 1,025,939          | 916,797         | 842,272
Return on invested capital (5)               | 13.1%              | 16.1%              | 16.2%              | 13.8%           | 14.0%
Inventory turnover ratio                     | 3.8x               | 3.6x               | 3.7x               | 4.2x            | 4.3x

. FINANCIAL DATA
 2019 Company recorded $7. million special tax expense. Tax Reform earnings foreign subsidiaries reinvested $10. 5 million benefit.
 2019 recorded $1. 7 million. 5 million taxes restructuring costs operating income.
 2018 $85. 9 million non-recurring income tax expense. Tax Reform paid $13. 5 million employee bonus.
 2016, recorded $7. 0 million restructuring costs $5. 2 million selling administrative expenses operating income. $7. million related manufacturing Fremont Livingston Scotland facility. $5. 2 million accelerated share-based compensation expense retirement agreement former Chief Executive Officer. 2015 $1. 7 million restructuring costs consolidation manufacturing Wisconsin relocation Juarez Mexico Guadalajara Mexico.
 defines return invested capital tax-effected operating income divided invested capital-quarter. equity plus debt less cash equivalents Financial. reconciliation Exhibit 99.annual report Form 10-K.
 2015 53 weeks. 52 weeks.
 Fiscal Years Ended
 Income Statement September
 2019
 2016
 Net sales $3,164,434 $2,873,508 $2,528,052,556,004 $2,654,290
 Gross profit 291,838 257,600 255,855 227,359 239,550
 margin. 2%.
 Operating income 142,055 118,283 129,908 99,439 115,436
 margin. 5%.
 Net income 108,616 13,040 112,062 76,427 94,332
 Earnings per share $3.
 Cash Flow Statement
 Cash flows $115,300 $66,831 $171,734 $127,738 $76,572
 Capital equipment additions 90,600 62,780 38,538 31,123 35,076
 assets $2,000,883 $1,932,642 $1,976,182,765,819,691,760
debt obligations 287,980 188,617 313,107 262,509
 Shareholders’ equity 865,576 921,143 1,025,939 916,797 842,272
 Return invested capital. 0%
 Inventory turnover.


CONTRACTUAL OBLIGATIONS
Significant contractual obligations as of December 28, 2019 were as follows:
1 Operating lease obligations represent the undiscounted lease payments under non-cancelable leases, but exclude non-lease components.
2 Capital purchase obligations represent commitments for the construction or purchase of property, plant and equipment. They were not recorded as liabilities on our Consolidated Balance Sheets as of December 28, 2019, as we had not yet received the related goods nor taken title to the property.
3 Other purchase obligations and commitments include payments due under various types of licenses and agreements to purchase goods or services.
4 Tax obligations represent the future cash payments related to Tax Reform enacted in 2017 for the one-time transition tax on our previously untaxed foreign earnings.
5 Amounts represent principal payments for all debt obligations and interest payments for fixed-rate debt obligations. Interest payments on floating-rate debt obligations, as well as the impact of fixed-rate to floating-rate debt swaps, are excluded. Debt obligations are classified based on their stated maturity date, regardless of their classification on the Consolidated Balance Sheets.
6 Amounts represent future cash payments to satisfy other long-term liabilities recorded on our Consolidated Balance Sheets, including the short-term portion of these long-term liabilities. Derivative instruments are excluded from the preceding table, because they do not represent the amounts that may ultimately be paid.
7 Total excludes contractual obligations already recorded on our Consolidated Balance Sheets as current liabilities, except for the short-term portions of long-term debt obligations and other long-term liabilities.
The expected timing of payments of the obligations in the preceding table is estimated based on current information. Timing of payments and actual amounts paid may be different, depending on the time of receipt of goods or services, or changes to agreed-upon amounts for some obligations.
Contractual obligations for purchases of goods or services included in “Other purchase obligations and commitments” in the preceding table include agreements that are enforceable and legally binding and that specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. For obligations with cancellation provisions, the amounts included in the preceding table were limited to the non-cancelable portion of the agreement terms or the minimum cancellation fee.
For the purchase of raw materials, we have entered into certain agreements that specify minimum prices and quantities based on a percentage of the total available market or based on a percentage of our future purchasing requirements. Due to the uncertainty of the future market and our future purchasing requirements, as well as the non-binding nature of these agreements, obligations under these agreements have been excluded from the preceding table. Our purchase orders for other products are based on our current manufacturing needs and are fulfilled by our vendors within short time horizons. In addition, some of our purchase orders represent authorizations to purchase rather than binding agreements.
Contractual obligations that are contingent upon the achievement of certain milestones have been excluded from the preceding table. Approximately half of our milestone-based contracts are tooling related for the purchase of capital equipment. These arrangements are not considered contractual obligations until the milestone is met by the counterparty. As of December 28, 2019, assuming that all future milestones are met, the additional required payments would be approximately $498 million.
For the majority of RSUs granted, the number of shares of common stock issued on the date the RSUs vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. The obligation to pay the relevant taxing authority is excluded from the preceding table, as the amount is contingent upon continued employment. In addition, the amount of the obligation is unknown, as it is based in part on the market price of our common stock when the awards vest.

                                             |         |                  | Payments Due by Period |           |
-------------------------------------------- | ------- | ---------------- | ---------------------- | --------- | -----------------
(In Millions)                                | Total   | Less Than 1 Year | 1–3 Years              | 3–5 Years | More Than 5 Years
Operating lease obligations 1                | $595    | $178             | $232                   | $128      | $57
Capital purchase obligations 2               | 10,918  | 9,300            | 1,595                  | 14        | 9
Other purchase obligations and commitments 3 | 2,757   | 1,636            | 947                    | 147       | 27
Tax obligations 4                            | 4,442   | 10               | 746                    | 1,853     | 1,833
Long-term debt obligations 5                 | 41,328  | 4,706            | 8,510                  | 3,508     | 24,604
Other long-term liabilities 6                | 1,692   | 898              | 640                    | 40        | 114
Total 7                                      | $61,732 | $16,728          | $12,670                | $5,690    | $26,644

CONTRACTUAL OBLIGATIONS
 obligations December 28, 2019
 Operating lease obligations undiscounted lease payments non-cancelable leases exclude non-lease components.
 Capital purchase obligations construction purchase property plant equipment. not recorded liabilities Consolidated Balance Sheets received goods title property.
 Other purchase obligations include payments licenses agreements services.
 Tax obligations future cash payments Tax Reform 2017 one-time transition tax foreign earnings.
 Amounts represent principal payments debt interest payments fixed-rate debt. Interest payments floating-rate debt obligations swaps excluded. Debt obligations classified maturity date.
 Amounts represent future cash payments long-term liabilities. Derivative instruments excluded represent amounts.
 excludes obligations short-term long-term debt obligations.
 expected timing payments estimated based current information. receipt goods changes amounts.
Contractual obligations for purchases include agreements enforceable legally binding terms quantities price provisions timing. obligations with cancellation provisions amounts limited to non-cancelable minimum cancellation fee.
 purchase raw materials agreements minimum prices quantities based on market future purchasing requirements. uncertainty future market purchasing requirements non-binding obligations excluded from. purchase orders based on current manufacturing needs fulfilled short. purchase orders represent authorizations to purchase agreements.
 Contractual obligations contingent upon milestones excluded from. half milestone-based contracts capital equipment. not until milestone met. December 28, 2019 future milestones additional payments approximately $498 million.
 majority of RSUs granted shares common stock issued net of minimum statutory withholding requirements taxing authorities. obligation to pay taxing authority excluded from contingent upon continued employment. amount obligation unknown based on market price common stock when.
 Payments Due by Period

 Millions Less
 Operating lease obligations $595 $178 $232 $128 $57
 Capital 10,918,300 1,595
 2,757 1,636 947
 Tax obligations 4,442 1,853
 Long-term debt obligations 41,328 4,706 8,510 3,508 24,604
 long-term liabilities 1,692 898 640
 $61,732 $16,728 $12,670 $5,690 $26,644


Liquidity and Capital Resources
As of December 31, 2019, we had approximately $36.1 million of cash and cash equivalents and short term investments, a decrease of approximately $7.2 million from $43.3 million in 2018.
During 2018, our board of directors authorized the repurchase of issued and outstanding shares of our common stock having an aggregate value of up to $10.0 million pursuant to a share repurchase program. No shares were repurchased under this program in 2019, As of December 31, 2019, we have a remaining authorization of $8.0 million for future share repurchases.
In 2013, we made a $5 million commitment to invest in an innovation fund through JVP to invest in early-stage cyber technology companies. We sold our interest in JVP in December 2019. There is no further commitment remaining.

                        | December 31, |
----------------------- | ------------ | --------------
                        | 2019         | 2018
                        |              | (in thousands)
Cash & cash equivalents | $18,304      | $32,011
Short term investments  | 17,779       | 11,303
                        | $36,083      | $43,314

Capital
 December 31, 2019 $36. 1 million cash equivalents short investments decrease $7. 2 million $43. 3 million 2018.
 board authorized repurchase $10. million. No shares repurchased remaining $8. million future repurchases.
 2013, $5 million innovation fund early-stage cyber technology companies. sold interest JVP December 2019. no further commitment.
 Cash equivalents $18,304 $32,011
 Short term investments 17,779
 $36,083 $43,314


The carrying amounts and fair values of Teradyne’s financial instruments at December 31, 2019 and 2018 were as follows:
(1) The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion features.
The fair values of accounts receivable, net and accounts payable approximate the carrying amount due to the short term nature of these instruments.

                          | December 31, 2019 |                | December 31, 2018 |
------------------------- | ----------------- | -------------- | ----------------- | ----------
                          | Carrying Value    | Fair Value     | Carrying Value    | Fair Value
                          |                   | (in thousands) |                   |
Assets                    |                   |                |                   |
Cash and cash equivalents | $773,924          | $773,924       | $926,752          | $926,752
Marketable securities     | 241,793           | 241,793        | 277,827           | 277,827
Derivative assets         | 528               | 528            | 79                | 79
Liabilities               |                   |                |                   |
Contingent consideration  | 39,705            | 39,705         | 70,543            | 70,543
Derivative liabilities    | 203               | 203            | 514               | 514
Convertible debt (1)      | 394,687           | 1,010,275      | 379,981           | 547,113

carrying amounts fair values financial instruments December 31, 2019 2018
 carrying value bifurcated debt fair value market prices convertible note equity conversion.
 fair values accounts receivable net payable approximate carrying amount short term.
 December 31, 2019 2018
 Carrying Value
 Assets
 Cash equivalents $773,924 $926,752
 Marketable securities 241,793 277,827
 Derivative assets
 Liabilities
 Contingent consideration 39,705 70,543
 Derivative liabilities
 Convertible debt 394,687 1,010,275,981


3.1 Financial risk factors (continued)
(a) Market risk (continued)
(iii) Interest rate risk (continued)
During the year ended 31 December 2019, the Group entered into certain interest rate swap contracts to hedge its exposure arising from borrowings carried at floating rates. Under these interest rate swap contracts, the Group agreed with the counterparties to exchange, at specified interval, the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional amounts. These interest rate swap contracts had the economic effect of converting borrowings from floating rates to fixed rates and were qualified for hedge accounting. Details of the Group’s outstanding interest rate swap contracts as at 31 December 2019 have been disclosed in Note 38.
The effects of the interest rate swaps on the Group’s financial position and performance are as follows:
Swaps currently in place cover majority of the floating-rate borrowing and notes payable principal outstanding.
As at 31 December 2019 and 2018, management considered that any reasonable changes in the interest rates would not result in a significant change in the Group’s results as the Group’s exposure to cash flow interest-rate risk arising from its borrowings and notes payable carried at floating rates after considering the effect of hedging is considered to be insignificant. Accordingly, no sensitivity analysis is presented for interest rate risk.

                                                                        | 2019        | 2018
----------------------------------------------------------------------- | ----------- | -----------
                                                                        | RMB’Million | RMB’Million
Interest rate swaps                                                     |             |
Carrying amount (non-current (liabilities)/assets)                      | (494)       | 1,663
Notional amount                                                         | 29,423      | 77,630
Maturity date                                                           | 30/7/2021~  | 28/6/2019~
                                                                        | 11/4/2024   | 8/12/2023
Hedge ratio                                                             | 1:1         | 1:1
Change in fair value of outstanding hedging instruments since 1 January | (2,139)     | 181
Change in value of hedged item used to determine hedgeeffectiveness     | (2,139)     | 181
Weighted average hedged rate for the year                               | 2.10%       | 1.60%

. Financial risk factors
 Market risk
 Interest rate risk
 31 December 2019 Group entered interest rate swap contracts hedge exposure borrowings floating rates. agreed exchange difference between fixed floating-rate interest. contracts borrowings from to fixed rates qualified for hedge accounting. outstanding swap contracts 2019 disclosed in Note 38.
 effects financial position performance
 Swaps cover majority floating-rate borrowing notes payable.
 2019 changes interest rates results exposure to cash flow interest-rate risk insignificant. no analysis for interest rate risk.
 Interest rate swaps
 Carrying amount-current (494) 1,663
 Notional amount 29,423 77,630
 Maturity date 30/7/2021 28/6/2019
 11/4/2024 8/12/2023
 Hedge ratio 1:1
 Change value hedging instruments since 1 January (2,139
 value hedged item
 Weighted average hedged rate year.. 60%


Restricted Stock and Restricted Stock Units
Historically, we have granted shares of restricted stock to certain employees that have vested in three equal annual installments on the anniversary dates of their grant. However, beginning in 2019, we altered our approach for these grants to replace the grant of restricted stock subject to time-based vesting with the grant of a combination of restricted stock units ("RSUs") subject to time- based vesting and performance-based vesting. Each RSU represents the contingent right to receive a single share of our common stock upon the vesting of the award. For the year ended December 31, 2019, we granted an aggregate of 280,000 RSUs to certain employees. Of the RSUs granted during 2019, 217,000 of such RSUs are subject to time-based vesting and are scheduled to vest in three equal annual installments on the anniversary dates of the grant. The remaining 63,000 RSUs are performance-based awards that will vest based on our achievement of long-term performance goals, in particular, based on our levels of 2021 revenue and operating income. The 63,000 shares issuable upon vesting of the performance-based RSUs represent the maximum payout under our performance-based awards, based upon 150% of our target performance for 2021 revenue and operating income (the payout of such awards based on target performance for 2021 revenue and operating income would be 42,000 shares). In the case of the time-based and performance-based RSUs, vesting is also subject to the employee's continuous service with us through vesting. In 2018, we granted 280,000 shares of restricted stock to certain employees. Shares issued to employees vest in three equal annual installments on the anniversary dates of their grant. In 2019 and 2018, 194,333 and 182,500 shares of restricted stock vested, respectively.
In addition, in conjunction with our 2018 and 2019 Annual Meetings of Stockholders, we granted RSUs to certain members of our Board of Directors in respect of the annual equity compensation under our non-employee director compensation policy (other members of our Board of Directors elected to receive their annual equity compensation for Board service in the form of stock units under our Deferred Compensation Plan as described below). In 2019 and 2018, we granted 11,600 and 16,286, respectively, RSUs to members of our Board of Directors in respect of the annual equity compensation under our non-employee director compensation policy. RSUs issued to our Board of Directors vest at the earlier of the one-year anniversary of their grant or the next annual stockholders' meeting. In 2019 and 2018, 16,286 and 129,865 RSUs, respectively, vested.
The following table summarizes our aggregate restricted stock awards and RSU activity in 2019 and 2018:
We recognized $1.5 million and $0.6 million in stock-based compensation expense, which is recorded in selling, general and administrative expense on the consolidated statement of operations for the years ended December 31, 2019 and 2018, respectively, and we will recognize $4.0 million over the remaining requisite service period for unamortized restricted stock, RSUs and stock options.
Unamortized restricted stock and RSUs expense at December 31, 2019 that will be amortized over the weighted-average remaining service period of 2 years totaled $1.2 million.

                             | Number of Unvested Shares  | Weighted Average Grant Date Fair Value | Aggregate Grant Date Fair Value of Unvested Shares
---------------------------- | -------------------------- | -------------------------------------- | --------------------------------------------------
Balance at January 1, 2017   | 489,698                    | $1.51                                  | 738,345
Granted                      | 296,287                    | $3.07                                  | $909,600
Vested                       | (312,365)                  | $1.45                                  | $(454,339)
Forfeitures                  | (15,000)                   | $1.41                                  | $(21,150)
Balance at December 31, 2018 | 458,620                    | $2.56                                  | $1,172,456
Granted                      | 291,600                    | $3.75                                  | $1,094,430
Vested                       | (210,619)                  | $2.33                                  | $(490,769)
Forfeitures                  | (37,499)                   | $2.96                                  | $(111,115)
Balance at December 31, 2019 | 502,102                    | $3.32                                  | $1,665,002

Restricted Stock Units
 Historically granted shares employees vested three installments anniversary dates. 2019 altered with combination units time performance. Each RSU represents contingent right receive single share common stock upon vesting. December 31, 2019 granted 280,000 RSUs employees. 217,000 time-based vesting vest three installments. remaining 63,000 RSUs performance-based awards vest based long-term performance goals 2021 revenue operating income. 63,000 shares issuable upon vesting maximum payout 150% target performance 2021 revenue operating income payout 42,000 shares. vesting subject to employee's continuous service. 2018 granted 280,000 shares restricted stock to employees. Shares vest three annual installments anniversary dates. 2019 2018 194,333 182,500 shares stock vested.
2018 Annual Meetings granted RSUs Board Directors policy stock units Deferred Compensation Plan. 2019 2018 granted 11,600 16,286 RSUs. one-year anniversary meeting. 16,286 129,865 RSUs vested.
 restricted stock awards RSU activity 2019
 recognized $1. 5 million $0. 6 million stock-based compensation expense expense December 31, 2019 2018 $4. 0 million remaining unamortized restricted stock RSUs stock options.
 Unamortized stock RSUs expense December 31, 2019 amortized 2 totaled $1. 2 million.
 Unvested Shares Weighted Average Grant Date Fair Value Aggregate Grant Date Value
 Balance January 1, 2017 489,698 $1. 51 738,345
 Granted 296,287 $3. 07 $909,600
 Vested (312,365) $1. 45 $(454,339)
 Forfeitures (15,000 $1.,150
 December 31, 2018 458,620. $1,172,456
 291,600. $1,094,430
,619).,769)
.,115
 December 31, 2019 502,102. $1,665,002


NOTE 23. EXPENSES BY NATURE
Research and development consists of the following:
The impairment expenses in 2018 and 2019 are related to customer specific projects.
The Company’s operations in the Netherlands, Belgium and the United States receive research and development grants and credits from various sources.

                                                      | Year ended December 31, |
----------------------------------------------------- | ----------------------- | --------
                                                      | 2018                    | 2019
Research and development expenses                     | 125,280                 | 150,745
Capitalization of development expenses                | (49,688)                | (60,202)
Amortization of capitalized development expenses      | 12,039                  | 15,597
Research and development grants and credits           | (321)                   | (49)
Total research and development expenses               | 87,310                  | 106,091
Impairment of research and development related assets | 1,278                   | 4,755
Total                                                 | 88,588                  | 110,846

23. EXPENSES
 development
 expenses 2018 2019 projects.
 operations Netherlands Belgium United States grants credits.
 December 31,
 2019
 Research expenses 125,280 150,745
 Capitalization (49,688) (60,202
 Amortization 12,039 15,597
 grants credits (321)
 expenses 87,310 106,091
 assets 1,278 4,755
 88,588 110,846


20. Net Loss Per Share
The Company intends to settle the principal of the Convertible Notes in cash on conversion and calculates diluted earnings per share using the treasury-stock method. Stock-based awards and the conversion feature on the Convertible Notes that have an anti-dilutive effect on the calculation of diluted loss per common share, are excluded from this calculation.
For the years ended December 31, 2019, 2018 and 2017, the number of Common Stock from stock-based awards and the conversion feature on the Convertible Notes that had an anti-dilutive effect on the calculation of diluted earnings per common share were 3.5 million, 4.0 million and 3.6 million respectively.
In periods where a loss attributable to shareholders has been incurred all stock-based awards and the conversion feature on the Convertible Notes are anti-dilutive.

                                                                                |             | Year Ended December 31, |
----------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------- | ----------------------- | ----------
                                                                                | 2019        | 2018                    | 2017
                                                                                | $           | $                       | $
Net loss attributable to shareholders of Teekay Corporation for basic loss per share                                                                        | (310,577)   | (79,237)                | (163,276)
Reduction in net earnings due to dilutive impact of stock-based compensation in Teekay LNG, Altera and Teekay Tankers and stock purchase warrants in Altera | —           | —                       | (90)
Net loss attributable to shareholders of Teekay Corporation for diluted loss per share                                                                      | (310,577)   | (79,237)                | (163,366)
Weighted average number of common shares                                                                                | 100,719,224 | 99,670,176              | 86,335,473
Dilutive effect of stock-based compensation                                                                                | —           | —                       | —
Common stock and common stock equivalents                                                                                | 100,719,224 | 99,670,176              | 86,335,473
Loss per common share - basic and diluted                                                                                | (3.08)      | (0.79)                  | (1.89)

. Net Loss Per Share
 Company Convertible Notes cash calculates diluted earnings share treasury-stock method. Stock-based awards conversion feature excluded.
 years 2019 2018 2017 Common Stock awards conversion 3. 5 million 4. million 3. 6 million.
 loss stock awards conversion anti-dilutive.
 December
 2018
 Net loss Teekay Corporation basic loss per share (310,577) (79,237) (163,276)
 Reduction net earnings dilutive impact stock-based compensation Teekay LNG Altera Tankers stock purchase warrants
 loss diluted loss per share (310,577) (79,237) (163,366
 Weighted average common shares 100,719,224 99,670,176 86,335,473
 Dilutive effect stock-based compensation
 100,719,224 99,670,176 86,335,473
 Loss per common share basic diluted.


A.5 Net assets position
Our total assets at the end of fiscal 2019 were influenced by positive currency translation effects of € 4.0 billion (mainly goodwill), primarily involving the U. S. dollar.
The increase in other current financial assets was driven by higher loans receivable at SFS, which were mainly due to new business and reclassification of non-current loans receivable from other financial assets. While higher loans receivable and receivables from finance leases from new business at SFS contributed also to growth in other financial assets, a large extent of the overall increase resulted from increased fair values of derivative financial instruments.
Inventories increased in several industrial businesses, with the build-up most evident at SGRE, Mobility and Siemens Healthineers.
Assets classified as held for disposal increased mainly due to reclassification of two investments from investments accounted for using the equity method.
The increase in goodwill included the acquisition of Mendix.
Deferred tax assets increased mainly due to income tax effects related to remeasurement of defined benefits plans.
The increase in other assets was driven mainly by higher net defined benefit assets from actuarial gains.

                                                  |         | Sep 30, |
------------------------------------------------- | ------- | ------- | --------
(in millions of €)                                | 2019    | 2018    | % Change
Cash and cash equivalents                         | 12,391  | 11,066  | 12 %
Trade and other receivables                       | 18,894  | 18,455  | 2 %
Other current financial assets                    | 10,669  | 9,427   | 13 %
Contract assets                                   | 10,309  | 8,912   | 16 %
Inventories                                       | 14,806  | 13,885  | 7 %
Current income tax assets                         | 1,103   | 1,010   | 9 %
Other current assets                              | 1,960   | 1,707   | 15 %
Assets classified as held for disposal            | 238     | 94      | 154 %
Total current assets                              | 70,370  | 64,556  | 9 %
Goodwill                                          | 30,160  | 28,344  | 6 %
Other intangible assets                           | 9,800   | 10,131  | (3) %
Property, plant and equipment                     | 12,183  | 11,381  | 7 %
Investments accounted for using the equity method | 2,244   | 2,579   | (13) %
Other financial assets                            | 19,843  | 17,774  | 12 %
Deferred tax assets                               | 3,174   | 2,341   | 36 %
Other assets                                      | 2,475   | 1,810   | 37 %
Total non-current assets                          | 79,878  | 74,359  | 7 %
Total assets                                      | 150,248 | 138,915 | 8 %

.
 2019 influenced currency translation € 4. billion. dollar.
 increase driven higher loans SFS new business reclassification non-current loans. loans derivative financial instruments.
 Inventories increased industrial businesses SGRE Mobility Siemens Healthineers.
 Assets disposal reclassification.
 goodwill acquisition Mendix.
 Deferred tax assets income tax remeasurement defined benefits plans.
 higher net defined benefit assets actuarial gains.
 Cash equivalents 12,391 11,066 12 %
 Trade receivables 18,894,455 2 %
 financial assets 10,669,427 13 %
 Contract assets 10,309 16 %
 Inventories 14,806 13,885 7 %
 income tax assets 1,103 1,010 9 %
 Other assets 1,960 1,707 15 %
 disposal 238 154 %
 assets 70,370 64,556 9 %
 Goodwill 30,160 28,344 6 %
intangible 9,800 10,131
 Property 12,183 7 %
 2,244 2,579
 19,843 17,774 12 %
 Deferred tax 3,174 36
 2,475 37
 non-current 79,878 74,359 7 %
 150,248 138,915 8


Beginning fiscal 2011, we replaced the ownership share grants with time-vested RSUs for certain Vice Presidents and Officers that vest ratably overfour to five years and have a 50% or 100% holding requirement on settled shares, which must be held until termination. There were146,268 of such RSUs outstanding as of September 29, 2019. RSUs issued to non-management directors and certain other employees vest12 months from the date of grant, or upon termination of board service if the director or employee elects to defer receipt, and totaled 69,411 units outstanding as of September 29, 2019. RSUs issued to certain other employees either cliff vest or vest ratably over three years and totaled 35,864 units outstanding as of September 29, 2019. These awards are amortized to compensation expense over the estimated vesting period based upon the fair value of our common stock on the award date discounted by the present value of the expected dividend stream over the vesting period.
The following is a summary of RSU activity for fiscal 2019:
As of September 29, 2019, there was approximately $7.4 million of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted-average period of 2.2 years. The weighted-average grant date fair value of awards granted was$86.08, $94.93, and $102.42 in fiscal years 2019, 2018, and 2017, respectively. In fiscal years 2019, 2018, and 2017, the total fair value of RSUs that vested and were released was$4.7 million, $4.4 million, and $4.4 million, respectively.

                                       |          | Weighted-
-------------------------------------- | -------- | -------------
                                       |          | Average Grant
                                       |          | Date Fair
                                       | Shares   | Value
RSUs outstanding at September 30, 2018 | 288,098  | $64.57
Granted                                | 93,686   | $86.08
Released                               | (55,642) | $84.23
Forfeited                              | (14,297) | $94.00
RSUs outstanding at September 29, 2019 | 311,845  | $66.18

2011, replaced ownership share grants time-vested RSUs Vice Presidents Officers five years 50% or 100% holding requirement shares until termination.,268 RSUs outstanding September 29, 2019. non-management directors employees vest12 months 69,411 units. employees three years 35,864 units. awards amortized to compensation expense estimated vesting period value common stock discounted dividend.
 summary RSU activity 2019
 September 29, $7. 4 million unrecognized compensation cost RSUs 2. years. grant date fair value$86. 08 $94. 93 $102. 42 2019 2018 2017. total$4. 7 million $4. 4 million $4. 4 million.
 RSUs September 30, 2018 288,098 $64. 57
 Granted 93,686 $86. 08
 Released (55,642) $84. 23
 Forfeited (14,297) $94.
 September 29, 2019 311,845 $66.


IBM Working Capital
Working capital decreased $10,200 million from the year-end
2018 position. The key changes are described below:
Current assets decreased $10,726 million ($10,477 million adjusted for currency) due to: • A decline in receivables of $6,769 million ($6,695 million adjusted for currency) driven by a decline in financing receivables of $8,197 million primarily due to the wind down of OEM IT commercial financing operations; partially offset by an increase in other receivables of $989 million primarily related to divestitures; and • A decrease of $3,213 million ($3,052 million adjusted for currency) in cash and cash equivalents, restricted cash, and marketable securities primarily due to retirement of debt.
Current liabilities decreased $526 million ($449 million adjusted
for currency) as a result of:
• A decrease in accounts payable of $1,662 million primarily due to the wind down of OEM IT commercial financing operations; and • A decrease in short-term debt of $1,410 million due to maturities of $12,649 million and a decrease in commercial paper of $2,691 million; partially offset by reclassifications of $7,592 million from long-term debt to reflect upcoming maturities and issuances of $6,334 million; offset by • An increase in operating lease liabilities of $1,380 million as a result of the adoption of the new leasing standard on January 1, 2019; and • An increase in deferred income of $861 million ($890 million adjusted for currency).

($ in millions)     |         |
------------------- | ------- | -------
At December 31:     | 2019    | 2018
Current assets      | $38,420 | $49,146
Current liabilities | 37,701  | 38,227
Working capital     | $   718 | $10,918
Current ratio       | 1.02:1  | 1.29:1

IBM Working Capital
 decreased $10,200 million
 2018.
 assets decreased $10,726 million$10,477 million decline receivables $6,769 million $8,197 million OEM IT increase receivables $989 million divestitures $3,213 million ($3,052 million cash equivalents securities retirement debt.
 liabilities decreased $526 million ($449 million
 decrease accounts payable $1,662 million OEM IT decrease short debt $1,410 million $12,649 million commercial paper $2,691 million reclassifications $7,592 million long-term debt $6,334 million increase lease liabilities $1,380 million new leasing standard 2019 increase deferred income $861 million ($890 million.
 assets $38,420 $49,146
 liabilities 37,701 38,227
 Working capital $10,918
 ratio.


3. MARKETABLE SECURITIES
As of December 31, 2019, the Company did not hold any marketable securities.

                |                | December 31, 2018 |                   |
--------------- | -------------- | ----------------- | ----------------- | ----------
(in thousands)  | Amortized Cost | Unrealized Gains  | Unrealized Losses | Fair Value
Municipal bonds | $44,802        | $13               | $(110)            | $44,705
Corporate bonds | 48,499         | 23                | (226)             | 48,296
                | $93,301        | $36               | $(336)            | $93,001

. MARKETABLE SECURITIES
 December 31, 2019 Company marketable securities.
 December 31, 2018
 Amortized Cost Unrealized Gains Losses
 Municipal bonds $44,802 $44
 Corporate bonds 48,499
 $93,301


21 Share-based payments
(a) Performance rights
The performance rights plan was established by the Board of Directors to provide long-term incentives to the Group’s Senior Executives based on total shareholder returns (TSR) taking into account the Group’s financial and operational performance. Under the Plan, eligible participants may be granted performance rights on terms and conditions determined by the Board from time to time. Performance rights were granted during the course of FY17, FY18 and FY19. The vesting conditions for grants relate to TSR exceeding the ASX 200 Accumulation Index over the measurement period. Vesting of the rights will be tested on or around the day following the release of each of the annual results for the years ended 30 June 2019, 2020 and 2021 respectively.
Performance rights are granted by the Company for nil consideration. The Board has discretion to determine if the value will be provided in shares, cash or a combination of shares and cash. Rights granted under the plan carry no dividend or voting rights.
The fair value of the rights at the date of valuation was determined using the Black-Scholes Option Pricing Model to be equal to the volume weighted-average price (VWAP) ending on the day before the grant date, less the dividends expected over the period from the expected grant date to the completion of the measurement period, adjusted for the expected probability of achieving the vesting conditions.

                          | 30 June 2019     | 30 June 2019       | 30 June 2018     | 30 June 2018
------------------------- | ---------------- | ------------------ | ---------------- | ------------------
                          | Number of Rights | Average Fair Value | Number of Rights | Average Fair Value
Opening balance           | 2,948,960        | $1.87              | 3,460,195        | $1.26
Granted during the year   | 828,285          | $3.07              | 762,577          | $3.32
Vested during the year    | (1,307,885)      | $1.19              | (1,273,812)      | $1.09
Forfeited during the year | -                | $0.00              | -                | $0.00
Closing balance           | 2,469,360        | $2.64              | 2,948,960        | $1.87

Share-based payments
 Performance rights
 plan established Board-term incentives Senior Executives shareholder returns) financial operational performance. participants performance rights terms conditions determined Board. rights granted FY17 FY18 FY19. vesting conditions TSR exceeding ASX 200 Accumulation Index. Vesting tested annual results 30 June 2019 2020 2021.
 rights granted for nil consideration. Board value in shares cash. Rights no dividend voting rights.
 fair value valuation determined Black-Scholes Option Pricing Model equal to volume weighted-average price) grant less dividends expected adjusted for probability vesting conditions.
 2019
 Average Fair Value
 Opening balance 2,948,960  $1. 87 3,460,195  $1. 26
 Granted 828,285  $3. 07 762,577  $3. 32
 Vested (1,307,885) $1. 19 (1,273,812) $1. 09
 Forfeited $0.
2,469,360. 2,948,960.