11. Reportable Segments, Geographic Information and Major Customers
Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief
operating decision maker, or group, in assessing performance and allocating resources. The Company uses an internal management reporting system, which
provides important financial data to evaluate performance and allocate the Company’s resources on a regional basis. Net sales for the segments are attributed to the
region in which the product is manufactured or the service is performed. The services provided, manufacturing processes used, class of customers serviced and
order fulfillment processes used are similar and generally interchangeable across the segments. A segment’s performance is evaluated based upon its operating
income (loss). A segment’s operating income (loss) includes its net sales less cost of sales and selling and administrative expenses, but excludes corporate and
other expenses. Corporate and other expenses primarily represent corporate selling and administrative expenses, and restructuring costs and other charges, if any, such as the $1.7 million of restructuring costs in
fiscal 2019 and the $13.5 million one-time employee bonus paid to full-time, non-executive employees during fiscal 2018 due to the Company's ability to access
overseas cash as a result of Tax Reform (the "one-time employee bonus"). These costs are not allocated to the segments, as management excludes such costs when
assessing the performance of the segments. Inter-segment transactions are generally recorded at amounts that approximate arm’s length transactions. The
accounting policies for the segments are the same as for the Company taken as a whole.
The following information is provided in accordance with the required segment disclosures for fiscal 2019, 2018 and 2017. Net sales were based on the Company’s location providing the product or service (in thousands):
As the Company operates flexible manufacturing facilities and processes designed to accommodate customers with multiple product lines and configurations, it is impracticable to report net sales for individual products or services or groups of similar products and services.
Long-lived assets as of September 28, 2019 and September 29, 2018 exclude other long-term assets, deferred income tax assets and intangible assets, which totaled $78.4 million and $74.2 million, respectively.

                   | September 28,
2019 | September 29,
2018
------------------ | ------------------ | ------------------
Long-lived assets: |                    |
United States      | $106,757           | $108,694
Malaysia           | 101,636            | 89,938
Mexico             | 73,864             | 43,078
Romania            | 31,033             | 34,316
China              | 22,378             | 21,878
United Kingdom     | 7,344              | 6,171
Other Foreign      | 6,751              | 5,646
Corporate          | 34,461             | 31,585
                   | 384,224            | 341,306

. Reportable Segments Geographic Information Major Customers
 segments components enterprise financial information evaluated by chief
 performance resources. Company uses internal management reporting system
 financial data performance resources. Net sales attributed
 region product manufactured service performed. services manufacturing processes customers
 order fulfillment processes similar interchangeable. performance evaluated operating
 income (loss. includes net sales cost administrative expenses excludes corporate
 other expenses. selling administrative expenses restructuring costs charges $1. 7 million restructuring
 2019 $13. 5 million one-time employee bonus
 overseas cash Tax Reform. costs not allocated segments excludes
. Inter-segment transactions recorded arm’s length transactions.
 accounting policies same Company.
 information provided segment disclosures for fiscal 2019 2018 2017. Net sales based on location product service
 flexible manufacturing facilities multiple product lines impracticable to report net sales for.
Long-lived assets September 28, 2019 29, 2018 deferred intangible totaled $78. 4 million $74. 2 million.
 United States $106,757 $108,694
 Malaysia 101,636 89,938
 Mexico 73,864 43,078
 Romania 34
 China
 Kingdom
 34,461 31,585
 341,306


NOTE 8. INVENTORIES
The changes in the allowance for obsolescence are as follows:
On December 31, 2019, our allowance for inventory obsolescence amounted to €12,527, which is 6.7% of total inventory. The major part of the allowance is related to components and raw materials. The additions for the years 2018 and 2019 mainly relate to inventory items which ceased to be used due to technological developments and design changes which resulted in obsolescence of certain parts.
The cost of inventories recognized as costs and included in cost of sales amounted to €510.2 million (2018: €365.8 million).

                                    | December 31, |
----------------------------------- | ------------ | --------
                                    | 2018         | 2019
Balance at beginning of year        | (12,749)     | (13,364)
Charged to cost of sales            | (2,958)      | (4,748)
Reversals                           | 723          | 915
Utilization of the provision        | 1,978        | 4,994
Foreign currency translation effect | (358)        | (324)
Balance at end of year              | (13,364)     | (12,527)

. INVENTORIES
 changes allowance obsolescence
 December 31, 2019 €12,527. 7% inventory. components raw materials. additions 2018 2019 inventory items technological design changes obsolescence.
 cost inventories €510. 2 million (2018 €365. 8 million.
 December
 Balance (12,749) (13,364)
 cost sales (2,958) (4,748)
 Reversals 723
 1,978
 Foreign currency translation effect (358)
 Balance end year (13,364) (12,527)


Disaggregation of Revenue
The Company operates in two business segments, Specialty Alloys Operations (“SAO”) and Performance Engineered Products (“PEP”). Revenue is disaggregated within these two business segments by diversified end-use markets and by geographical location. Comparative information of the Company’s overall revenues by end-use markets and geography for years ended June 30, 2019, 2018 and 2017 were as follows:

End-Use Market Data     | Year Ended June 30, | Year Ended June 30, | Year Ended June 30,
----------------------- | ------------------- | ------------------- | -------------------
($ in millions)         | 2019                | 2018                | 2017
Aerospace and Defense   | $1,327.9            | $1,182.3            | $973.3
Medical                 | 205.0               | 175.3               | 125.5
Energy                  | 181.7               | 146.5               | 138.0
Transportation          | 157.7               | 157.0               | 143.9
Industrial and Consumer | 371.5               | 364.9               | 298.2
Distribution            | 136.4               | 131.7               | 118.7
Total net sales         | $2,380.2            | $2,157.7            | $1,797.6

 Company operates segments Specialty Alloys Operations Performance Engineered Products. Revenue disaggregated end-use markets geographical location. revenues markets geography June 2019 2018 2017
 End-Use Market Data
 millions
 Aerospace Defense $1,327. $1,182. $973.
 Medical 205. 175. 125.
 Energy 181. 146. 138.
 Transportation 157. 143.
 Industrial Consumer 371. 364. 298.
 Distribution 136. 131. 118.
 Total net sales $2,380. $2,157. $1,797.


NAVIOS MARITIME HOLDINGS INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in thousands of U.S. dollars — except share data)
Revenue by Geographic Region
Vessels operate on a worldwide basis and are not restricted to specific locations. Accordingly, it is not possible to allocate the assets of these operations to specific countries. The total net book value of long-lived assets for dry bulk vessels amounted to $741,347 and $933,784 at December 31, 2019 and 2018, respectively. For the Logistics Business, all long-lived assets are located in South America. The total net book value of long-lived assets for the Logistics Business amounted to $536,342 (including constructions in progress of $4,046, referred to in Note 7) and $556,713 at December 31, 2019 and 2018, respectively. The total net book value of long-lived assets for the Containers Business amounted to at December 31, 2018 $399,979.

              | Year ended December 31, 2019 | Year ended December 31, 2018 | Year ended December 31, 2017
------------- | ---------------------------- | ---------------------------- | ----------------------------
North America | $2,259                       | $4,248                       | $5,513
Europe        | 179,009                      | 142,688                      | 124,857
Asia          | 67,468                       | 135,614                      | 91,552
South America | 232,394                      | 208,751                      | 212,616
Other         | 1,319                        | 26,438                       | 28,511
Total         | $482,449                     | $517,739                     | $463,049

NAVIOS MARITIME HOLDINGS. FINANCIAL STATEMENTS. S. dollars except share data
 Revenue Geographic Region
 Vessels operate worldwide not restricted locations. allocate assets countries. net value dry bulk vessels $741,347 $933,784 December 2019 2018. Logistics Business assets South America. $536,342 constructions $4,046 $556,713 2019 2018. Containers Business 2018 $399,979.
 2019 2018 2017
 North America $2,259 $4,248 $5,513
 Europe 179,009 142,688
 Asia 67,468 135,614
 South America 232,394 208,751
 Other
 $482,449 $517,739 $463,049


(g) Prepaid Expenses and Other Current Assets:
A summary of prepaid expenses and other current assets is as follows (in millions):
Prepaid inventory represents inventory in-transit that has been paid for but not received.

                  | September 2019 | September 2018
----------------- | -------------- | --------------
Prepaid expenses  | $1.8           | $1.6
Prepaid inventory | 5.3            | 3.3
                  | $7.1           | $4.9

Prepaid Expenses Assets
 summary
 Prepaid inventory in-transit paid not received.
 September 2019 2018
 expenses $1. 8 $1. 6
 inventory. 3.
 $7. $4.


Accumulated Other Comprehensive Income
The following tables present the changes in the components of accumulated other comprehensive income (AOCI) for the years ended March 31, 2019 and 2018:

                                                                        | Unrealized Holding Gains (Losses) Available-for-sale Securities | Minimum Pension Liability | Foreign Currency | Total
----------------------------------------------------------------------- | --------------------------------------------------------------- | ------------------------- | ---------------- | -------
Balance at March 31, 2017                                               | $0.3                                                            | $(5.3)                    | $(9.4)           | $(14.4)
Other comprehensive loss before reclassifications                       | (13.6)                                                          | (5.6)                     | —                | (19.2)
Amounts reclassified from accumulated other comprehensive income (loss) | 15.2                                                            | 0.8                       | —                | 16.0
Net other comprehensive loss                                            | 1.6                                                             | (4.8)                     | —                | (3.2)
Balance at March 31, 2018                                               | $1.9                                                            | $(10.1)                   | $(9.4)           | $(17.6)

Accumulated Income
 tables changes years March 2019 2018:
 Unrealized Gains Securities Minimum Pension Liability Foreign Currency
 Balance March 31, 2017 $0. 3.(14.
 loss reclassifications (13. 6) (5. (19.
 reclassified 15. 2. 8 16.
 loss 1. 6 (4. 8) (3.
 Balance March 31, 2018 $1. 9.(9. 4)(17.


Segment Operating Profit (Earnings before general corporate expenses, pension and postretirement non-service income, interest expense, net, income taxes, and equity method investment earnings)
Grocery & Snacks operating profit for fiscal 2018 was $724.8 million, an increase of $69.4 million, or 11%, compared to fiscal 2017. Gross profits were $21.9 million lower in fiscal 2018 than in fiscal 2017. The lower gross profit was driven by investments with retailers (i.e., trade spending reflected as a reduction of net sales), as well as higher input costs and transportation expenses, partially offset by supply chain realized productivity. The Frontera acquisition, Thanasi acquisition, and the acquisition of Angie's Artisan Treats, LLC, which occurred in September 2016, April 2017, and October 2017, respectively, contributed $47.4 million to Grocery & Snacks gross profit during fiscal 2018 through the one-year anniversaries of the acquisitions (if reached). Advertising and promotion expenses for fiscal 2018 decreased by $19.5 million compared to fiscal 2017. Operating profit of the Grocery & Snacks segment was impacted by charges totaling $4.0 million in fiscal 2018 for the impairment of our HK Anderson® , Red Fork® , and Salpica® brand assets and $68.3 million in fiscal 2017 primarily for the impairment of our Chef Boyardee® brand asset. Grocery & Snacks also incurred $11.4 million of expenses in fiscal 2018 related to acquisitions and divestitures, charges of $31.4 million in fiscal 2017 related to the pending divestiture of the Wesson® oil business, and charges of $14.1 million and $23.6 million in connection with our restructuring plans in fiscal 2018 and 2017, respectively.
Refrigerated & Frozen operating profit for fiscal 2018 was $479.4 million, an increase of $33.6 million, or 8%, compared to fiscal 2017. Gross profits were $3.6 million lower in fiscal 2018 than in fiscal 2017, driven by continuing increases in input costs and transportation inflation as well as investments to drive distribution, enhanced shelf presence, and trial, partially offset by increased sales volumes and supply chain realized productivity. The acquisition of the Sandwich Bros. of Wisconsin® business contributed $4.6 million to gross profit in the segment during fiscal 2018. Advertising and promotion expenses for fiscal 2018 decreased by $23.4 million compared to fiscal 2017. Operating profit of the Refrigerated & Frozen segment was impacted by charges totaling approximately $7.7 million in fiscal 2017 related to a product recall, as well as charges of $0.1 million and $6.2 million in connection with our restructuring plans in fiscal 2018 and 2017, respectively.
International operating profit for fiscal 2018 was $86.5 million, compared to an operating loss of $168.9 million for fiscal 2017. The operating loss in fiscal 2017 includes charges totaling $235.9 million for the impairment of goodwill and an intangible brand asset in our Canadian and Mexican operations. Gross profits were $18.6 million higher in fiscal 2018 than in fiscal 2017, as a result of improved price/mix, the favorable impact of foreign exchange, and the planned discontinuations of certain 33 lower-performing products. Operating profit of the International segment was impacted by charges of $1.5 million and $0.9 million in connection with our restructuring plans, in fiscal 2018 and 2017, respectively
Foodservice operating profit for fiscal 2018 was $121.8 million, an increase of $16.7 million, or 16%, compared to fiscal 2017. Gross profits were $13.9 million higher in fiscal 2018 than in fiscal 2017, primarily reflecting the impact of inflation-driven increases in pricing and supply chain realized productivity, partially offset by lower sales volumes and increased input costs. Operating profit of the Foodservice segment was impacted by charges of $1.8 million in fiscal 2017 in connection with our restructuring plans.
Commercial operating profit was $202.6 million in fiscal 2017. The Company sold the Spicetec and JM Swank businesses in the first quarter of fiscal 2017, recognizing pre-tax gains totaling $197.4 million. The Spicetec and JM Swank businesses comprise the entire Commercial segment following the presentation of Lamb Weston as discontinued operations. There are no further operations in the Commercial segment.

($ in millions)       |                              |                              |
--------------------- | ---------------------------- | ---------------------------- | -----------
Reporting Segment     | Fiscal 2018 Operating Profit | Fiscal 2017 Operating Profit | % Inc (Dec)
Grocery & Snacks      | $724.8                       | $655.4                       | 11%
Refrigerated & Frozen | 479.4                        | 445.8                        | 8%
International         | 86.5                         | (168.9)                      | N/A
Foodservice           | 121.8                        | 105.1                        | 16%
Commercial            | -                            | 202.6                        | (100)%

Operating Profit before expenses pension income interest taxes equity earnings
 Grocery & Snacks profit 2018 $724. 8 million increase $69. 4 million 11% 2017. Gross profits $21. 9 million lower. driven investments. higher input costs transportation expenses offset supply chain productivity. Frontera Thanasi Angie's Artisan Treats contributed $47. 4 million profit. Advertising promotion expenses decreased $19. 5 million. impacted charges $4. 0 million 2018 HK Red Salpica® assets $68. 3 million 2017 Chef Boyardee®. $11. 4 million expenses acquisitions divestitures $31. 4 million 2017 divestiture Wesson® oil $14. 1 million $23. 6 million restructuring plans.
 Refrigerated Frozen profit 2018 $479. 4 million increase $33. 6 million 8% 2017. Gross profits $3.million lower 2018 input costs transportation inflation investments shelf offset increased sales volumes supply productivity. acquisition Sandwich Bros. contributed $4. 6 million profit. Advertising promotion expenses decreased $23. 4 million. Refrigerated Frozen impacted $7. 7 million recall $0. 1 million $6. 2 million restructuring plans.
 International profit $86. 5 million loss $168. 9 million 2017. loss $235. 9 million impairment goodwill intangible brand Canadian. profits $18. 6 million higher improved price/mix foreign exchange discontinuations lower-performing products. International impacted $1. 5 million $0. 9 million restructuring plans
 Foodservice profit $121. 8 million increase $16. 7 million 16% 2017. profits $13. 9 million higher inflation pricing productivity offset lower sales volumes input costs. Foodservice impacted $1. 8 million restructuring.
 Commercial profit $202. 6 million 2017. sold Spicetec Swank businesses pre-tax gains $197. 4 million.Spicetec Swank Commercial segment Lamb Weston discontinued. no further operations Commercial.
 millions
 Fiscal 2018 Profit 2017 Profit
 Grocery Snacks $724. $655. 11%
 Refrigerated Frozen. 445. 8%
 International 86. (168.
 Foodservice 121. 105. 16%
 Commercial 202.


1 Segment performance (continued)
(c) Other segment information
(i) Profit/(loss) before tax
Management assesses the performance of the operating segments based on a measure of EBITDA. Interest income and expenditure are not allocated to segments, as this type of activity is driven by the central treasury function, which manages the cash position of the Group. On adoption of AASB 16 from 1 July 2018, associated lease interest is allocated to the respective segments as a finance charge.

                                               | 30 June 2019 | 30 June 2018
---------------------------------------------- | ------------ | ------------
                                               | $'000        | $'000
Total segment profit before tax                | 62,583       | 61,449
Employee benefits expense (non-facility staff) | (23,036)     | (20,752)
Interest revenue                               | 8,220        | 5,778
Distributions from investments                 | 1,344        | 3,191
Other income                                   | 3,034        | 284
Finance costs                                  | (45,612)     | (25,452)
Head office depreciation                       | (2,079)      | (1,909)
Overheads and other expenses                   | (20,527)     | (11,698)
Profit/(loss) before tax                       | (16,073)     | 10,891

Segment performance
 Profit before tax
 EBITDA. Interest income expenditure not allocated central treasury. AASB 16 1 July 2018 lease interest allocated finance charge.
 profit before tax 62,583,449
 Employee benefits (23,036)
 Interest revenue 8,220
 Distributions investments 1,344
 Other income 3,034
 Finance costs (45,612) (25,452
 Head office depreciation (2,079)
 Overheads expenses (20,527),698
 Profit/) before tax (16,073)


NON-GAAP FINANCIAL MEASURES
Non-GAAP operating income, net income, and diluted EPS are non-GAAP financial measures which exclude the net tax impact of transfer of intangible properties, the net tax impact of the TCJA, and restructuring expenses. We believe these non-GAAP measures aid investors by providing additional insight into our operational performance and help clarify trends affecting our business. For comparability of reporting, management considers non-GAAP measures in conjunction with GAAP financial results in evaluating business performance. These non-GAAP financial measures presented should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
The following table reconciles our financial results reported in accordance with GAAP to non-GAAP financial results:
* Not meaningful.

(In millions, except percentages and per share amounts) | 2019    | 2018    | 2017      | Percentage Change 2019 Versus 2018 | Percentage Change 2018 Versus 2017
------------------------------------------------------- | ------- | ------- | --------- | ---------------------------------- | ----------------------------------
Operating income                                        | $42,959 | $35,058 | $  29,025 | 23%                                | 21%
Net tax impact of transfer of intangible properties     | 0       | 0       | 0         | *                                  | *
Net impact of the TCJA                                  | 0       | 0       | 0         | *                                  | *
Restructuring expenses                                  | 0       | 0       | 306       | *                                  | *
Non-GAAP operating income                               | $42,959 | $35,058 | $ 29,331  | 23%                                | 20%
Net income                                              | $39,240 | $16,571 | $ 25,489  | 137%                               | (35)%
Net tax impact of transfer of intangible properties     | (2,567) | 0       | 0         | *                                  | *
Net tax impact of the TCJA                              | 157     | 13,696  | 0         |                                    |
Restructuring expenses                                  | 0       | 0       | 243       | *                                  | *
Non-GAAP net income                                     | $36,830 | $30,267 | $ 25,732  | 22%                                | 18%
Diluted earnings per share                              | $5.06   | $2.13   | $ 3.25    | 138%                               | (34)%
Net tax impact of transfer of intangible properties     | (0.33)  | 0       | 0         | *                                  | *
Net tax impact of the TCJA                              | 0.02    | 1.75    | 0         | *                                  | *
Restructuring expenses                                  | 0       | 0       | 0.04      | *                                  | *
Non-GAAP diluted earnings per share                     | $4.75   | $3.88   | $ 3.29    | 22%                                | 18%
* not meaningful                                        |         |         |           |                                    |

NON-GAAP FINANCIAL MEASURES
 operating income net income diluted EPS exclude net tax impact transfer properties TCJA restructuring expenses. measures aid insight operational performance clarify trends. management considers non-GAAP measures GAAP results performance. measures not substitute GAAP.
 table reconciles financial results GAAP non-GAAP results
.
 millions percentages share amounts 2019 2018 2017 Percentage Change
 Operating income $42,959  $35,058  $ 29,025  23%
 Net tax impact transfer intangible properties
 Net impact TCJA
 Restructuring expenses
 Non-GAAP operating income $42,959  $35,058  $ 29,331  23%
 Net income $39,240  $16,571  $ 25,489 137%
 Net tax impact transfer intangible properties
 impact TCJA
 Restructuring expenses
Non-GAAP income $36,830 $30,267 25,732
 Diluted earnings share $5. $2. 3. 25
 tax impact intangible properties.
 tax impact TCJA. 75
 Restructuring expenses.
 Non-GAAP diluted earnings share $4. 75 $3. 88 3. 29 22% 18%


(2) Includes property and equipment acquired under capital leases:
Depreciation and amortization expense was $25.2 million, $17.5 million, and $11.8 million for the years ended March 31, 2019, 2018 and 2017, respectively. Depreciation and amortization expense in the years ended March 31, 2019, 2018 and 2017 included $1.2 million, $0.9 million and $0.1 million related to property and equipment acquired under capital leases.

                               | As of March 31, |
------------------------------ | --------------- | ------
                               | 2019            | 2018
Computer equipment             | $4,754          | $4,713
Less: Accumulated amortization | (2,228)         | (990)
                               | $2,526          | $3,723

Includes property equipment capital leases
 Depreciation amortization expense. 2 million $17. 5 million $11. 8 million years 2019 2018 2017. $1. 2 million. 9 million. 1 million.
 March 31,
 equipment $4,754 $4,713
 Accumulated amortization
 $2,526 $3,723


REMUNERATION COMMITTEE REPORT
The table above shows the actual expenditure of the Group for employee pay and distributions to shareholders compared to the retained earnings of the Group.

RELATIVE IMPORTANCE OF SPEND ON PAY                 |       |       |
--------------------------------------------------- | ----- | ----- | -----
Expenditure USDm                                    | 2019  | 2018  | 2017
Dividends paid                                      | -     | -     | 1.2
Purchase of outstanding treasury shares in TORM A/S | -     | -     | -
Purchase/disposals of treasury shares               | -     | -     | -
Total                                               | -     | -     | 1.2
Staff costs                                         | 45.8  | 46.2  | 43.8
Retained earnings                                   | 920.0 | 752.0 | 786.0

REMUNERATION COMMITTEE REPORT
 table shows expenditure Group employee pay distributions retained earnings.
 IMPORTANCE SPEND PAY
 Expenditure USDm 2019 2018
 Dividends paid.
 Purchase treasury shares TORM A/S
 Purchase shares
.
 Staff costs 45. 46. 43.
 Retained earnings 920. 752. 786.


Results of Continuing Operations
The analysis presented below is organized to provide the information we believe will facilitate an understanding of our historical performance and relevant trends going forward, and should be read in conjunction with our Consolidated Financial Statements, including the notes thereto, in Item 8 "Financial Statements and Supplementary Data" of this Annual Report on Form 10 - K.
The following table sets forth, for the periods indicated, the percentage of sales represented by certain items reflected in our Consolidated Statements of Operations:

                                                       | Year Ended December 31, |
------------------------------------------------------ | ----------------------- | -------
                                                       | 2019                    | 2018
Sales                                                  | 100.0 %                 | 100.0 %
Gross profit                                           | 40.0                    | 50.9
Operating expenses                                     | 33.1                    | 27.0
Operating income from continuing operations            | 6.9                     | 23.9
Other income (expense), net                            | 1.6                     | 0.1
Income from continuing operations before income taxes  | 8.5                     | 24.0
Provision for income taxes                             | 1.4                     | 3.5
Income from continuing operations, net of income taxes | 7.2 %                   | 20.5 %

Continuing Operations
 analysis historical performance trends Consolidated Financial Statements Item 8 Annual Report Form 10 -.
 table percentage sales Consolidated Statements Operations
 Ended December 31,
 2018
 Sales 100. 0.
 Gross profit 40. 50.
 Operating expenses 33. 27.
 income operations 6. 9 23.
 Other income 1.
 Income operations before income taxes 8. 24.
 Provision income taxes 1. 3.
 Income operations net income taxes 7. 2 % 20. 5


6 Other assets (continued)
(a) Security deposits
Included in the security deposits was $8.8 million (2018: $4.2 million) relating to deposits held as security for bank guarantees.
(b) Customer incentives
Where customers are offered incentives in the form of free or discounted periods, the dollar value of the incentive is capitalised and amortised on a straight-line basis over the expected life of the contract.
(c) Contract Costs
From 1 July 2018, eligible costs that are expected to be recovered will be capitalised as a contract cost and amortised over the expected customer life.

NON-CURRENT                      | Note | 30 June 2019 $'000 | 30 June 2018 $'000
-------------------------------- | ---- | ------------------ | ------------------
Customer incentives              | 6(b) | 1,091              | 1,145
Capitalised transaction costs    |      | 3,359              | 5,490
Contract costs                   | 6(c) | 448                | -
Total other assets - non-current |      | 4,898              | 6,635

assets
 Security deposits
 $8. million (2018 $4. 2 million bank guarantees.
 Customer incentives
 free discounted dollar value capitalised amortised contract.
 Contract Costs
 1 July 2018 capitalised contract cost amortised customer life.
 30 June 2019 June 2018
 Customer incentives 1,091 1,145
 Capitalised transaction costs 3,359 5,490
 Contract costs 448
 assets non 4,898 6,635


12. Income taxes
Income taxes include the taxes on income paid or owed in the individual countries as well as deferred taxes.
1 Adjustment of previous year according to explanation in notes.
The income tax rate of the German companies of METRO consists of a corporate income tax of 15.00% plus a 5.50% solidarity surcharge on corporate income tax as well as the trade tax of 14.70% given an average assessment rate of 420.00%. All in all, this results in an aggregate tax rate of 30.53%. The tax rates are unchanged from the previous year. The income tax rates applied to foreign companies are based on the respective laws and regulations of the individual countries and vary within a range of 0.00% (2017/18: 0.00%) and 34.94% (2017/18: 44.41%).
At €298 million (2017/18: €216 million), recognised income tax expenses are €81 million higher than in the previous year. In addition to an increase in pre-tax earnings, the change is due to higher expenses for impairments on deferred taxes, among other things.

€ million                                       | 2017/2018 | 2018/2019
----------------------------------------------- | --------- | ---------
Actual taxes                                    | 173       | 215
thereof Germany                                 | (14)      | (9)
thereof international                           | (159)     | (206)
thereof tax expenses/income of current period   | (194)     | (221)
thereof tax expenses/income of previous periods | (−21)     | (−6)
Deferred taxes                                  | 43        | 83
thereof Germany                                 | (39)      | (104)
thereof international                           | (4)       | (−21)
                                                | 216       | 298

. Income taxes
 include income paid countries deferred taxes.
 Adjustment previous year.
 income tax rate German companies METRO corporate income tax 15.% 5. 50% solidarity surcharge trade tax 14. 70% average assessment rate 420.%. results tax rate 30. 53%. tax rates unchanged. foreign companies based laws regulations countries vary 0.%. 34. 94%. 41%).
 €298 million (2017/18 €216 income tax expenses €81 million higher previous year. increase pre-tax earnings change due higher expenses deferred taxes.
 2017/2018 2018/2019
 taxes 173 215
 Germany
 international (159) (206)
 current period
 previous periods
 Deferred taxes 43
 Germany


Pensions
As of June 30, 2019, our total unfunded pension plan obligations were $77.5 million, of which $2.3 million is payable within the next twelve months. We expect to be able to make the long-term and short-term payments related to these obligations in the normal course of operations.
Our anticipated payments under our most significant plans for the fiscal years indicated below are as follows:
For a detailed discussion on pensions, see note 11 "Pension Plans and Other Post Retirement Benefits" to our Consolidated Financial Statements.

             |         | Fiscal years ending June 30, |
------------ | ------- | ---------------------------- | -------
             | CDT     | GXS GER                      | GXS PHP
2020         | $675    | $1,012                       | $161
2021         | 758     | 1,011                        | 153
2022         | 832     | 1,044                        | 352
2023         | 933     | 1,043                        | 208
2024         | 1,041   | 1,050                        | 272
2025 to 2028 | 6,009   | 5,308                        | 2,389
Total        | $10,248 | $10,468                      | $3,535

 June 30, 2019 unfunded pension obligations $77. 5 million $2. 3 million payable twelve months. expect long short-term payments.
 anticipated payments plans
 note 11 Plans Retirement Benefits Consolidated Financial Statements.
 years June 30
 2020 $675 $1,012 $161
 2021 1,011
 2022
 2023 933 1,043
 2024 1,041 1,050
 2025 2028 6,009 5,308 2
 $10,248 $10,468 $3,535


NOTE 13—INCOME TAXES
On December 22, 2017, the U.S. government enacted the Tax Act, which includes provisions for Global Intangible Low-Tax Income (GILTI) under which taxes on foreign income are imposed on the excess of a deemed return on tangible assets of foreign subsidiaries. Consistent with accounting guidance, we have elected to account for the tax on GILTI as a period cost and thus have not adjusted any net deferred tax assets of our foreign subsidiaries in connection with the Tax Act.
Due to the complexity of the Tax Act, the Securities and Exchange Commission issued guidance in SAB 118 which clarified the accounting for income taxes under ASC 740 if certain information was not yet available, prepared or analyzed in reasonable detail to complete the accounting for income tax effects of the Tax Act. SAB 118 provided for a measurement period of up to one year after the enactment of the Tax Act, during which time the required analyses and accounting must be completed. During fiscal year 2018, we recorded provisional amounts for the income tax effects of the changes in tax law and tax rates, as reasonable estimates were determined by management during this period. These amounts did not change in fiscal year 2019.
The SAB 118 measurement period ended on December 22, 2018. Although we no longer consider these amounts to be provisional, the determination of the Tax Act’s income tax effects may change following future legislation or further interpretation of the Tax Act based on the publication of recently proposed U.S. Treasury regulations and guidance from the Internal Revenue Service and state tax authorities.
Income (loss) from continuing operations before income taxes includes the following components (in thousands):

              |          | Years Ended September 30, |
------------- | -------- | ------------------------- | ----------
              | 2019     | 2018                      | 2017
              |          | (in thousands)            |
United States | $ (535)  | $ (51,049)                | $ (70,566)
Foreign       | 52,881   | 65,935                    | 59,484
Total         | $ 52,346 | $ 14,886                  | $ (11,082)

13—INCOME TAXES
 December 22, 2017 U. S. enacted Tax Act Global Intangible Low-Tax Income) taxes foreign income excess foreign subsidiaries. tax GILTI period cost not adjusted net deferred tax assets foreign subsidiaries.
 complexity Securities and Exchange Commission guidance 118 accounting income taxes ASC. SAB 118 measurement period one year after enactment analyses accounting. fiscal 2018 recorded provisional amounts income tax effects changes tax law rates. amounts 2019.
 SAB 118 measurement period ended December 22, 2018. effects may change future legislation. Treasury regulations Internal Revenue Service state tax authorities.
 Income (loss) operations before income taxes components
 Years Ended September 30,
 2019 2018 2017
 United States $ (535) (51,049) (70,566)
 Foreign 52,881 65,935 59,484
 Total $ 52,346 $ 14,886 (11,082)


Stock Repurchase Program
Our Board of Directors has approved a program for us to repurchase shares of our common stock. On September 17, 2018 and February 15, 2019, we announced that our Board of Directors approved expansions of our stock repurchase program totaling $24.0 billion. As of May 31, 2019, approximately $5.8 billion remained available for stock repurchases pursuant to our stock repurchase program.
Our stock repurchase authorization does not have an expiration date and the pace of our repurchase activity will depend on factors such as our working capital needs, our cash requirements for acquisitions and dividend payments, our debt repayment obligations or repurchases of our debt, our stock price, and economic and market conditions. Our stock repurchases may be effected from time to time through open market purchases or pursuant to a rule 10b5-1 plan. Our stock repurchase program may be accelerated, suspended, delayed or discontinued at any time.
The following table summarizes the stock repurchase activity for the three months ended May 31, 2019 and the approximate dollar value of shares that may yet be purchased pursuant to our stock repurchase program:

                                        |                 |               | Total Number of     | Approximate Dollar
--------------------------------------- | --------------- | ------------- | ------------------- | --------------------
                                        |                 |               | Shares Purchased as | Value of Shares that
                                        | Total Number of | Average Price | Part of Publicly    | May Yet Be
                                        | Shares          | Paid per      | Announced           | Purchased
(in millions, except per share amounts) | Purchased       | Share         | Program             | Under the Program
March 1, 2019—March 31, 2019            | 58.0            | $52.93        | 58.0                | $8,780.5
April 1, 2019—April 30, 2019            | 29.1            | $54.41        | 29.1                | $7,198.4
May 1, 2019—May 31, 2019                | 24.9            | $54.11        | 24.9                | $5,848.4
Total                                   | 112.0           | $53.57        | 112.0               |

Stock Repurchase Program
 Board of Directors approved shares common stock. September 17, 2018 February 15, 2019 expansions stock repurchase program totaling $24. 0 billion. May 31, 2019 $5. 8 billion remained stock repurchases.
 authorization expiration date working capital cash requirements debt repayment obligations stock price economic market conditions. repurchases open market purchases rule 10b5-1 plan. accelerated suspended delayed discontinued.
 table summarizes stock repurchase activity three months May 31, 2019 approximate dollar value shares
 Approximate Dollar
 Shares Purchased Value
 Average Price
 March 1, 2019—March 31, 2019 58. $52. $8,780. 5
 April 1, 2019—April 30, 2019. $54. 41. $7,198.
 May 1, 2019—May 31, 2019. $54. $5,848.
 112. $53. 57.


Charges made to the consolidated income statement and consolidated statement of comprehensive income (‘SOCI’) on the basis of the assumptions stated above are:
Note: 1 Following a High Court judgement on 21 October 2018 which concluded that defined benefit schemes should equalise pension benefits for men and women in relation to guaranteed minimum pension (‘GMP’) benefits the Group has recorded a pre-tax past service cost of €16 million (£14 million) in the year ended 31 March 2019.

                                        | 2019 €m | 2018 €m | 2017 €m
--------------------------------------- | ------- | ------- | -------
Current service cost                    | 31      | 34      | 43
Past service costs1                     | 16      | 2       | (27)
Net interest charge                     | 10      | 8       | 4
Total included within staff costs       | 57      | 44      | 20
Actuarial losses recognised in the SOCI | 33      | 94      | 274

Charges consolidated income assumptions
 High Court judgement October 2018 defined benefit schemes equalise pension benefits pre-tax past service cost €16 million (£14 million year 31 March 2019.
 Current service cost 31  34 43
 Past service 16
 Net interest charge 10 8 4
 staff costs 57  44  20
 Actuarial losses 33  94 274


4.3 Operating revenues
BCE
BCE operating revenues grew by 2.1% in 2019, compared to last year, driven by growth across all three of our segments. Total operating revenues consisted of service revenues of $20,737 million and product revenues of $3,227 million in 2019, up 1.4% and 6.6%, respectively, year over year. Wireless operating revenues grew by 3.7% in 2019, driven by product revenue growth of 6.6% and service revenue growth of 2.5%. Wireline operating revenues grew by 0.7% in 2019 attributable to service revenue growth of 0.4% from higher data revenue, moderated by lower voice revenue, and also reflected higher product revenue of 7.2%. Bell Media revenues increased by 3.1% in 2019 reflecting both higher subscriber and advertising revenues

                             | 2019   | 2018   | $ CHANGE | % CHANGE
---------------------------- | ------ | ------ | -------- | --------
Bell Wireless                | 9,142  | 8,818  | 324      | 3.7%
Bell Wireline                | 12,356 | 12,267 | 89       | 0.7%
Bell Media                   | 3,217  | 3,121  | 96       | 3.1%
Inter-segment eliminations   | (751)  | (738)  | (13)     | (1.8%)
Total BCE operating revenues | 23,964 | 23,468 | 496      | 2.1%

. revenues
 BCE
 grew 2. 1% 2019 growth segments. service $20,737 million product $3,227 million up. 4% 6. 6%. Wireless grew. 7% product 6. 6% service 2. 5%. Wireline grew. 7%. 4% data revenue voice product revenue 7. 2%. Bell Media revenues increased 3. 1% higher subscriber advertising revenues
 Bell Wireless 9,142 8,818. 7%
 Wireline 12,356 12,267.
 Bell Media 3,217 3,121.
 Inter-segment eliminations (751).
 BCE revenues 23,964 23,468 2. 1%


The following table summarizes our consolidated cash and cash equivalents provided by (used for) operating, financing and investing activities for the periods presented:
Operating Cash Flows
Our consolidated net cash flow from operating activities fluctuates primarily as a result of changes in vessel utilization and TCE rates, changes in interest rates, fluctuations in working capital balances, the timing and amount of dry-docking expenditures, repairs and maintenance activities, vessel additions and dispositions, and foreign currency rates. Our exposure to the spot tanker market has contributed significantly to fluctuations in operating cash flows historically as a result of highly cyclical spot tanker rates.
In addition, the production performance of certain of our FPSO units that operate under contracts with a production-based compensation component has contributed to fluctuations in operating cash flows. As the charter contracts of some of our FPSO units include incentives based on average annual oil prices, the changes in global oil prices during recent years have also impacted our operating cash flows.
Consolidated net cash flow from operating activities increased to $383.3 million for the year ended December 31, 2019, from $182.1 million for the year ended December 31, 2018. This increase was primarily due to a $127.2 million increase in income from operations mainly from operations (before depreciation, amortization, asset impairments, loss on sale of vessels and the amortization of in-process revenue contracts) of our businesses.
For further discussion of changes in income from vessel operations from our businesses, please read “Item 5 – Operating and Financial Review and Prospects: Management’s Discussion and Analysis of Financial Condition and Results of Operations – Recent Developments and Results of Operations.”
In addition, there was a $9.9 million increase in cash flows from changes to non-cash working capital, a $23.6 million increase in dividends received from joint ventures, and a $17.1 million increase in direct financing lease payments received, which are presented as an operating cash inflow instead of an investing cash inflow after the adoption of ASU 2016-02 in 2019.
Furthermore, interest expense, including realized losses on interest rate swaps and cross currency swaps, decreased a net amount of $38.1 million for the year ended December 31, 2019 compared to 2018, primarily due to a decrease in realized losses on cross currency swaps. These increases were partially offset by an increase in cash outflows of $15.9 million in dry-dock expenditures for the year ended December 31, 2019, compared to 2018.
Financing Cash Flows
The Daughter Entities hold all of our liquefied gas carriers (Teekay LNG) and all of our conventional tanker assets (Teekay Tankers). Teekay LNG received $317.8 million of net proceeds from the sale-leaseback financing transactions for the Yamal Spirit and Torben Spirit for the year ended December 31, 2019, compared to $370.1 million from the sale-leaseback financing transactions completed for the Magdala, Myrina and Megara for the same period in 2018.
Teekay Tankers received $63.7 million from the sale-leaseback financing transactions completed on two of its Suezmax tankers for the year ended December 31, 2019, compared to $241.3 million in the same period last year from the sale-leaseback financing transactions completed on eight Aframax tankers, one Suezmax tanker and one LR2 Product tanker.
We use our credit facilities to partially finance capital expenditures. Occasionally, we will use revolving credit facilities to finance these expenditures until longer-term financing is obtained, at which time we typically use all or a portion of the proceeds from the longer-term financings to prepay outstanding amounts under the revolving credit facilities. We actively manage the maturity profile of our outstanding financing arrangements.
During 2019, we had a net cash outflow of $227.3 million relating primarily to prepayments of short-term and long-term debt, issuance costs and payments on maturity of cross currency swaps, net of proceeds from the issuances of short-term and long-term debt, compared to net cash inflow of $553.7 million in 2018. Scheduled repayments decreased by $438.1 million in 2019 compared to 2018.
Historically, the Daughter Entities have distributed operating cash flows to their owners in the form of distributions or dividends. There were no equity financing transactions from the Daughter Entities for the years ended December 31, 2019 and 2018. Teekay LNG repurchased $25.7 million of common units in the year ended December 31, 2019.
Teekay Parent did not raise capital through equity financing transactions in December 31, 2019, compared to $103.7 million raised in 2018 from issuances of new equity to the public, thirdparty investors and two entities established by our founder (including Resolute, our largest shareholder). Cash dividends paid decreased by $16.6 million in 2019, as a result of the elimination of Teekay Parent's quarterly dividend on Teekay’s common stock commencing with the quarter ended March 31, 2019.
Investing Cash Flows
During 2019, we received $100 million from Brookfield for the sale of our remaining interests in Altera (please read "Item 18 – Financial Statements: Note 4 – Deconsolidation and Sale of Altera"). We incurred capital expenditures for vessels and equipment of $109.5 million primarily for capitalized vessel modifications and shipyard construction installment payments in Teekay LNG.
Teekay LNG received proceeds of $11.5 million from the sale of the Alexander Spirit and contributed $72.4 million to its equity-accounted joint ventures and loans to joint ventures for the year ended December 31, 2019, primarily to fund project expenditures in the Yamal LNG Joint Venture and the Bahrain LNG Joint Venture. During 2019, Teekay Tankers received proceeds of $19.6 million related to the sale of one Suezmax tanker.
During 2018, we incurred capital expenditures for vessels and equipment of $0.7 billion, primarily for capitalized vessel modifications and shipyard construction installment payments. Teekay Parent advanced $25.0 million to Altera in the form of a senior unsecured revolving credit facility.
Teekay LNG received proceeds of $54.4 million from the sale of Teekay LNG's 50% ownership interest in the Excelsior Joint Venture and $28.5 million from the sales of the European Spirit and African Spirit. Teekay LNG contributed $40.5 million to its equityaccounted joint ventures and loans to joint ventures for the year ended December 31, 2018, primarily to fund project expenditures in the Yamal LNG Joint Venture, the Bahrain LNG project, and the Pan Union Joint Venture, and for working capital requirements for the MALT Joint Venture.
Teekay incurred a net $25.3 million cash outflow as a result of the 2017 Brookfield Transaction (please read "Item 18 – Financial Statements: Note 4 – Deconsolidation and Sale of Altera").

(in thousands of U.S. Dollars) | Year Ended December 31, |
------------------------------ | ----------------------- | ---------
                               | 2019                    | 2018
Net operating cash flows       | 383,306                 | 182,135
Net financing cash flows       | (382,229)               | 434,786
Net investing cash flows       | (50,391)                | (663,456)

table summarizes consolidated cash equivalents for operating financing investing activities
 Operating Cash Flows
 net cash flow fluctuates vessel utilization TCE rates interest rates working capital dry-docking expenditures repairs maintenance vessel additions dispositions foreign currency rates. exposure spot tanker market fluctuations.
 production performance FPSO units. charter contracts include incentives oil prices global oil prices impacted cash flows.
 Consolidated net cash flow increased to $383. 3 million December 31, 2019 from $182. 1 million 2018. increase due to $127. 2 million increase income from operations.
 “Item 5 Operating Financial Review Prospects Discussion Analysis Financial Condition Results Operations.
 $9. 9 million increase cash non-cash working capital $23. 6 million increase dividends from joint ventures $17. 1 million increase direct financing lease payments operating after adoption ASU 2016-02 2019.
interest expense losses currency decreased $38. 1 million December 2019 2018 due losses swaps. offset by cash outflows $15. 9 million dry-dock expenditures.
 Daughter Entities hold gas carriers LNG conventional tanker assets (Teekay Tankers. received $317. 8 million proceeds sale Yamal Spirit Torben Spirit 2019 $370. 1 million Magdala Myrina Megara 2018.
 Teekay Tankers received $63. 7 million sale-leaseback Suezmax tankers $241. 3 million last year eight Aframax Suezmax LR2 Product tanker.
 credit facilities finance capital expenditures. revolving credit facilities until longer-term financing. manage maturity profile financing arrangements.
 2019 net cash outflow $227. 3 million prepayments short long debt issuance costs payments maturity cross currency swaps inflow $553. 7 million 2018. repayments decreased $438. 1 million 2019 2018.
Daughter Entities distributed cash distributions dividends. no equity financing transactions 2019 2018. Teekay LNG repurchased $25. 7 million common units 2019.
 Teekay Parent capital equity financing 2019 $103. 7 million 2018. dividends decreased $16. 6 million 2019 elimination Teekay Parent's quarterly dividend.
 received $100 million from Brookfield sale interests Altera. incurred capital expenditures $109. 5 million modifications construction payments.
 received proceeds $11. 5 million sale Alexander Spirit contributed $72. 4 million joint ventures loans expenditures Yamal LNG Bahrain LNG. received proceeds $19. 6 million sale Suezmax tanker.
 2018 capital expenditures $0. 7 billion modifications. Teekay Parent advanced $25. million to Altera unsecured revolving credit.
 received proceeds $54. 4 million from sale 50% interest Excelsior Joint Venture $28.sales European African Spirit. Teekay LNG contributed $40. 5 million loans December 31, 2018 Yamal Bahrain Pan Union capital MALT.
 $25. 3 million cash outflow 2017 Brookfield Transaction Financial Statements Deconsolidation Sale.
. Dollars Ended December 31,
 2018
 operating cash flows 383,306 182,135
 financing (382,229 434,786
 investing (50,391) (663,456)


Stock Repurchases. On August 22, 2011, we established a share repurchase program ("Share Repurchase Program"). On June 11, 2019, our Board of Directors authorized an extension and increase of the Share Repurchase Program to repurchase up to $5,000,000 of shares of our common stock over the subsequent 24 month period (for a total authorization of approximately $22,000,000 since inception of the program in August 2011). The common stock may be repurchased from time to time in open market transactions or privately negotiated transactions in our discretion. The timing and amount of the shares repurchased is determined by management based on its evaluation of market conditions and other factors. The Share Repurchase Program may be increased, suspended or discontinued at any time.
During the months of October, November and December 2019, we repurchased common stock pursuant to our Share Repurchase Program as indicated below:
During the year ended December 31, 2019, we repurchased an aggregate of 335,372 shares of our common stock pursuant to our Share Repurchase Program at a cost of approximately $764,606 (exclusive of commissions) or an average price per share of $2.28.
During the year ended December 31, 2019, we repurchased an aggregate of 335,372 shares of our common stock pursuant to our Share Repurchase Program at a cost of approximately $764,606 (exclusive of commissions) or an average price per share of $2.28.
Since inception of our Share Repurchase Program (August 2011) to December 31, 2019, we repurchased an aggregate of 8,489,770 shares of our common stock at a cost of approximately $15,906,846 (exclusive of commissions) or an average per share price of $1.87.

Period                                | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares) that May Yet Be Purchased Under the Plans or Programs
------------------------------------- | -------------------------------- | ---------------------------- | -------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------
October 1, 2019 to October 31, 2019   | —                                | —                            | —                                                                                | $4,803,723
November 1, 2019 to November 30, 2019 | 11,386                           | $2.12                        | 11,386                                                                           | $4,779,620
December 1, 2019 to December 31, 2019 | 153,431                          | $2.18                        | 153,431                                                                          | $4,445,258
Total                                 | 164,817                          | $2.17                        | 164,817                                                                          |

Stock Repurchases. August 22, 2011, established share repurchase program. June 11, 2019 Board Directors authorized extension increase repurchase $5,000,000 common stock 24 month total $22,000,000 since August 2011). common stock repurchased open market privately negotiated. timing amount determined management market conditions. Program increased suspended discontinued.
 October November December 2019 repurchased common stock
 December 31, 2019 repurchased 335,372 shares $764,606 average price per share $2. 28.
 December 31, 2019 repurchased 335,372 shares $764,606 average price per share $2. 28.
 2011) December 31, 2019 repurchased 8,489,770 shares $15,906,846 average per share price $1. 87.
 Total Number Shares Purchased Average Price Paid Per Share Shares Purchased Publicly Announced Plans Programs Maximum Number Shares Purchased

 October 1 to 31, $4,803,723
 November 1 to 30 11,386. 12 $4,779,620
 December 1 2019 to 31, 153,431. $4,445,258
 164,817 . 17


The long-term portion of the Company’s unrecognized tax benefits at March 31, 2019 and 2018 was $622,000 and $619,000, respectively, of which the timing of the resolution is uncertain. As of March 31, 2019 and 2018, $2.5 million and $2.1 million, respectively, of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets.
As of March 31, 2019, the Company’s net deferred tax assets of $6.7 million are subject to a valuation allowance of $6.7 million. It is possible, however, that some months or years may elapse before an uncertain position for which the Company has established a reserve is resolved. A reconciliation of unrecognized tax benefits is as follows:
The unrecognized tax benefit balance as of March 31, 2019 of $599,000 would affect the Company’s effective tax rate if recognized.

                                                                       |        | Year Ended March 31,  |
---------------------------------------------------------------------- | ------ | --------------------- | ------
                                                                       | 2019   | 2018                  | 2017
                                                                       |        | (In thousands)        |
Unrecognized tax benefits, beginning of period                         | $2,735 | $2,714                | $2,055
Additions based on tax positions related to current year               | 371    | 520                   | 730
Additions based on tax positions related to prior years                | 13     | —                     | —
2017 Tax Act and tax rate re-measurement                               | —      | (499)                 | —
Reductions based on tax positions related to prior years               | (17)   | —                     | —
Lapses during the current year applicable to statutes of limitations   | —      | —                     | (71)
Unrecognized tax benefits, end of period                               | $3,102 | $2,735                | $2,714

unrecognized tax benefits March 31, 2019 2018 $622,000 $619,000 resolution uncertain. March 31, 2019 2018 $2. 5 million $2. 1 million unrecognized benefits net deferred tax assets.
 March 31, 2019 net deferred tax assets $6. 7 million valuation allowance $6. 7 million. months years elapse before uncertain. reconciliation
 unrecognized tax benefit balance March 31, 2019 $599,000 effective tax rate if recognized.
 2018
 Unrecognized tax benefits beginning period $2,735 $2,714 $2,055
 Additions
 Tax Act tax rate re-measurement
 Reductions
 Lapses current year statutes limitations
 Unrecognized tax benefits end period $3,102 $2,735 $2,714


Notes to Consolidated Financial Statements - (Continued) Fiscal Years Ended May 26, 2019, May 27, 2018, and May 28, 2017 (columnar dollars in millions except per share amounts) Lamb Weston Spinoff
On November 9, 2016, we completed the Spinoff of our Lamb Weston business. As of such date, we did not beneficially own any equity interest in Lamb Weston and no longer consolidated Lamb Weston into our financial results. The business results were previously reported in the Commercial segment. We reflected the results of this business as discontinued operations for all periods presented.
The summary comparative financial results of the Lamb Weston business through the date of the Spinoff, included within discontinued operations, were as follows:
During fiscal 2017, we incurred $74.8 million of expenses in connection with the Spinoff primarily related to professional fees and contract services associated with preparation of regulatory filings and separation activities. These expenses are reflected in income from discontinued operations. During fiscal 2019 and 2018, we recognized income tax expense of $2.8 million and an income tax benefit of $14.5 million, respectively, due to adjustments of the estimated deductibility of these costs.
In connection with the Spinoff, total assets of $2.28 billion and total liabilities of $2.98 billion (including debt of $2.46 billion) were transferred to Lamb Weston. As part of the consideration for the Spinoff, the Company received a cash payment from Lamb Weston in the amount of $823.5 million. See Note 4 for discussion of the debt-for-debt exchange related to the Spinoff.
We entered into a transition services agreement in connection with the Lamb Weston Spinoff and recognized $2.2 million and $4.2 million of income for the performance of services during fiscal 2018 and 2017, respectively, classified within SG&A expenses.

                                                                                | 2019   | 2018   | 2017
---------------------------------------------------------------------------------------------------- | ------ | ------ | --------
Net sales                                                                                | $—     | $—     | $1,407.9
Income (loss) from discontinued operations before income taxes and equity method investment earnings | $—     | $(0.3) | $172.3
Income (loss) before income taxes and equity method investment earnings                              | —      | (0.3)  | 172.3
Income tax expense (benefit)                                                                         | 2.8    | (14.6) | 87.5
Equity method investment earnings                                                                    | —      | —      | 15.9
Income (loss) from discontinued operations, net of tax .                                             | (2.8)  | 14.3   | 100.7
Less: Net income attributable to noncontrolling interests .                                          | —      | —      | 6.8
Net income (loss) from discontinued operations attributable to Conagra Brands, Inc                   | $(2.8) | $14.3  | $93.9

Consolidated Financial Statements Fiscal Years Ended May 26, 2019 2018 28, 2017 millions share Lamb Weston Spinoff
 November 9, 2016, completed Spinoff. equity consolidated financial results. reported Commercial segment. discontinued operations.
 comparative financial results
 2017 incurred $74. 8 million expenses professional fees contract services regulatory filings separation activities. reflected income discontinued operations. 2019 2018 recognized income tax expense $2. 8 million income tax benefit $14. 5 million deductibility.
 assets $2. 28 billion liabilities $2. 98 billion debt $2. 46 billion transferred Lamb Weston. received cash payment Weston $823. 5 million. Note 4 debt-for-debt exchange.
 transition services agreement recognized $2. 2 million $4. 2 million income 2018 2017 SG&A expenses.
 Net sales $1,407.
 Income discontinued operations before income taxes equity investment earnings.$172. 3
 Income before taxes equity earnings. 172.
 tax expense 2. (14. 87. 5
 Equity earnings 15.
 discontinued operations net tax. (2. 14. 100.
 income noncontrolling interests. 6.
 discontinued operations Conagra. $14. $93.


Geographic Revenue
In addition to the revenue presentation by reportable segment, we also measure revenue performance on a geographic basis.
Total revenue of $77,147 million in 2019 decreased 3.1 percent year to year as reported (1 percent adjusted for currency), but increased 0.2 percent excluding divested businesses and adjusted for currency.
Americas revenue decreased 1.9 percent as reported (1 percent adjusted for currency), but grew 1 percent excluding divested businesses and adjusted for currency. Within North America, the U.S. decreased 2.4 percent and Canada increased 4.0 percent as reported (6 percent adjusted for currency). Latin America declined as reported but grew adjusted for currency. Within Latin America, Brazil declined 4.8 percent as reported, but was flat adjusted for currency.
EMEA revenue decreased 4.1 percent as reported, but was essentially flat adjusted for currency and increased 1 percent excluding divested businesses and adjusted for currency. As reported, the U.K., France and Italy decreased 2.9 percent, 4.1 percent and 1.3 percent, respectively, but grew 1 percent, 1 percent and 4 percent, respectively, adjusted for currency. Germany decreased 7.9 percent as reported and 3 percent adjusted for currency. The Middle East and Africa region decreased 3.5 percent as reported and 2 percent adjusted for currency.
Asia Pacific revenue decreased 4.0 percent as reported (3 percent adjusted for currency) and 2 percent excluding divested businesses and adjusted for currency. Japan increased 2.3 percent as reported and 1 percent adjusted for currency.
Australia decreased 17.3 percent as reported and 11 percent adjusted for currency. China decreased 13.4 percent as reported and 11 percent adjusted for currency and India decreased 8.1 percent as reported and 5 percent adjusted for currency.

($ in millions)                 |         |         |                           |                                                 |
------------------------------- | ------- | ------- | ------------------------- | ----------------------------------------------- | ---------------------------------------------------------------------------------
For the year ended December 31: | 2019    | 2018    | Yr.-to-Yr. Percent Change | Yr.-to-Yr. Percent Change Adjusted for Currency | Yr.-to-Yr. Percent Change Excluding Divested Businesses And Adjusted for Currency
Total revenue                   | $77,147 | $79,591 | (3.1)%                    | (1.0)%                                          | 0.2%
Americas                        | $36,274 | $36,994 | (1.9)%                    | (1.1)%                                          | 0.8%
Europe/Middle East/Africa       | 24,443  | 25,491  | (4.1)                     | 0.4                                             | 1.3
Asia Pacific                    | 16,430  | 17,106  | (4.0)                     | (3.0)                                           | (2.5)

Geographic Revenue
 revenue performance geographic.
 Total revenue $77,147 million 2019 decreased. 1 percent (1 adjusted increased. 2 percent excluding divested businesses.
 Americas revenue decreased. 9 percent grew 1 percent. North. decreased. 4 Canada increased 4. (6 adjusted. Latin America declined grew adjusted. Brazil declined 4. 8 percent flat adjusted currency.
 EMEA revenue decreased. 1 percent flat adjusted increased 1 percent excluding. France Italy decreased. 9. 1. 3 percent grew 1 percent 1 4 percent. Germany decreased 7. 9 percent 3. Middle East Africa decreased. 5 percent.
 Asia Pacific decreased 4. 0 (3. Japan increased. 3 percent 1.
 Australia decreased. 3 percent. China decreased. 4 India decreased. 1 percent 5 percent adjusted.
 year ended December 31 2019. Percent Change.Percent Change Currency. Businesses
 revenue $77,147 $79,591 (3.
 Americas $36,274 $36,994 (1. 8%
 Europe East 24,443 25,491 (4.
 Asia Pacific 16,430 17,106 (4. (3. (2.


6.1 Net debt
(1) 50% of outstanding preferred shares of $4,004 million in 2019 and 2018 are classified as debt consistent with the treatment by some credit rating agencies.
The increase of $1,891 million in total debt, comprised of debt due within one year and long-term debt, was due to: • an increase in our lease liabilities of $2,304 million as a result of the adoption of IFRS 16 on January 1, 2019 • the issuance by Bell Canada of Series M-49 and Series M-50 MTN debentures with total principal amounts of $600  million and $550 million in Canadian dollars, respectively, and Series US-2 Notes with a total principal amount of $600 million in U.S. dollars ($808 million in Canadian dollars) • an increase in our securitized trade receivables of $131 million
Partly offset by: • the early redemption of Series M-27 MTN debentures and Series M-37 debentures with total principal amounts of $1 billion and $400 million, respectively • a decrease in our notes payable (net of issuances) of $1,073 million • a net decrease of $29 million in our lease liabilities and other debt
The decrease in cash and cash equivalents of $280 million was due mainly to: • $2,819 million of dividends paid on BCE common shares • $1,216 million of debt repayments (net of issuances) • $142 million paid for the purchase on the open market of BCE common shares for the settlement of share-based payments • $60 million acquisition and other costs paid
Partly offset by: • $3,818 million of free cash flow • $240 million issuance of common shares from the exercise of stock options

                          | 2019   | 2018   | $ CHANGE | % CHANGE
------------------------- | ------ | ------ | -------- | --------
Debt due within one year  | 3,881  | 4,645  | (764)    | (16.4%)
Long-term debt            | 22,415 | 19,760 | 2,655    | 13.4%
Preferred shares (1)      | 2,002  | 2,002  | –        | –
Cash and cash equivalents | (145)  | (425)  | 280      | 65.9%
Net debt                  | 28,153 | 25,982 | 2,171    | 8.4%

. debt
 50% preferred shares $4,004 million 2019 2018 credit.
 increase $1,891 million debt long-term lease liabilities $2,304 million IFRS 16 2019 Bell Canada Series M-49 M-50 MTN debentures $600 million $550 million Series US-2 Notes $600 million. ($808 million increase securitized trade receivables $131 million
 offset redemption Series M-27 M-37 $1 billion $400 million decrease notes payable $1,073 million decrease $29 million lease liabilities debt
 decrease cash equivalents $280 million due $2,819 million dividends BCE common shares $1,216 million debt repayments $142 million BCE common shares $60 million acquisition costs
 offset $3,818 million free cash flow $240 million issuance shares stock options
 Debt due one year 3,881. 4%
 Long-term debt 22,415. 4%
 Preferred shares 2,002
equivalents (425).
 debt 28,153 25,982 2,171.


22. Income Taxes
Teekay and a majority of its subsidiaries are not subject to income tax in the jurisdictions in which they are incorporated because they do not conduct business or operate in those jurisdictions. However, among others, the Company’s U.K. and Norwegian subsidiaries are subject to income taxes.
The significant components of the Company’s deferred tax assets and liabilities are as follows:
(1) Substantially all of the Company's estimated net operating loss carryforwards of $878.3 million relates primarily to its U.K., Spanish, Norwegian and Luxembourg subsidiaries and, to a lesser extent, to its Australian subsidiaries.
The Company had estimated disallowed finance costs in Spain and Norway of approximately $15.1 million and $15.0 million, respectively, at December 31, 2019, which are available for 18 years and 10 years, respectively, from the year the costs are incurred for offset against future taxable income in Spain and Norway, respectively. The Company's estimated tax losses in Luxembourg are available for offset against taxable future income in Luxembourg, either indefinitely for losses arising prior to 2017, or for 17 years for losses arising subsequent to 2016.

                                                            | December 31, | December 31,
----------------------------------------------------------- | ------------ | ------------
                                                            | 2019         | 2018
                                                            | $            | $
Deferred tax assets:                                        |              |
Vessels and equipment                                       | 1,646        | 5,868
Tax losses carried forward and disallowed finance costs (1) | 164,009      | 155,910
Other                                                       | 19,674       | 10,545
Total deferred tax assets                                   | 185,329      | 172,323
Deferred tax liabilities:                                   |              |
Vessels and equipment                                       | 22,913       | 18,037
Provisions                                                  | 6,512        | 5,588
Other                                                       | —            | 2,060
Total deferred tax liabilities                              | 29,425       | 25,685
Net deferred tax assets                                     | 155,904      | 146,638
Valuation allowance                                         | (153,302)    | (144,560)
Net deferred tax assets                                     | 2,602        | 2,078

. Income Taxes
 Teekay subsidiaries not. U. Norwegian subsidiaries subject taxes.
 deferred tax assets liabilities
 estimated net operating loss $878. 3 million U. Spanish Norwegian Luxembourg subsidiaries Australian subsidiaries.
 disallowed finance costs Spain Norway $15. 1 million $15. million at December 31, 2019 available 18 10 years offset future income. tax losses Luxembourg available offset future income 2017 17 years losses 2016.
 Deferred tax assets
 Vessels equipment 1,646 5,868
 Tax losses disallowed finance costs 164,009 155,910
 19,674 10,545
 deferred tax assets 185,329 172,323
 Deferred tax liabilities
 Vessels equipment 22,913 18,037
 6,512 5,588
 29,425 25,685
 deferred tax assets 155,904 146,638
 Valuation allowance (153,302)
deferred 2,602


The accumulated benefit obligation for the United States defined benefit pension plans was $198.2 million and $172.8 million at December 31, 2019 and 2018, respectively. The accumulated benefit obligation for foreign defined benefit pension plans was $39.9 million and $35.6 million at December 31, 2019 and 2018, respectively.
Information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31:

                               | 2019          |               | 2018          |
------------------------------ | ------------- | ------------- | ------------- | -------
                               | United States | Foreign       | United States | Foreign
                               |               | (in millions) |               |
Projected benefit obligation   | $55.3         | $44.0         | $50.8         | $39.1
Accumulated benefit obligation | 53.2          | 39.9          | 48.6          | 35.6
Fair value of plan assets      | —             | 1.6           | —             | 1.4

accumulated obligation United States plans $198. 2 million $172. 8 million December 31, 2019 2018. foreign $39. 9 million $35. 6 million December 31, 2019 2018.
 pension plans accumulated benefit obligation December 31
 Projected benefit obligation $55. $44. $50. $39.
 Accumulated obligation 53. 39. 48. 35.
 Fair value plan assets.


5.3.4 HOOQ's share options - equity-settled arrangement
In December 2015, HOOQ Digital Pte. Ltd. (“HOOQ”), a 65%-owned subsidiary of the Company, implemented the HOOQ Digital Employee Share Option Scheme (the “Scheme”). Selected employees (including executive directors) of HOOQ and/or its subsidiaries are granted options to purchase ordinary shares of HOOQ.
Options are exercisable at a price no less than 100% of the fair value of the ordinary shares of HOOQ on the date of grant, and are scheduled to be fully vested 4 years from the vesting commencement date.
Options are exercisable at a price no less than 100% of the fair value of the ordinary shares of HOOQ on the date of grant, and are scheduled to be fully vested 4 years from the vesting commencement date.
The grant dates, exercise prices and fair values of the share options were as follows –
The term of each option granted is 10 years from the date of grant.
The fair values for the share options granted were estimated using the Black-Scholes pricing model.
From 1 April 2018 to 31 March 2019, options in respect of an aggregate of 9.6 million of ordinary shares in HOOQ have been granted. As at 31 March 2019, options in respect of an aggregate of 43.3 million of ordinary shares in HOOQ are outstanding.

Equity-settled   | Exercise price | Fair Value at grant date
---------------- | -------------- | ------------------------
Date of grant    | US$            | US$
16 May 2016      | 0.07           | 0.0445 to 0.0463
24 April 2017    | 0.07           | 0.0301 to 0.0315
2 May 2017       | 0.07           | 0.0292 to 0.0313
31 July 2017     | 0.07           | 0.0313 to 0.0315
8 September 2017 | 0.07           | 0.0296 to 0.0298
23 October 2017  | 0.07           | 0.0309 to 0.0320
10 January 2018  | 0.07           | 0.0316 to 0.0318
1 April 2018     | 0.07           | 0.0360 to 0.0366
1 July 2018      | 0.07           | 0.0368 to 0.0373
19 October 2018  | 0.07           | 0.0371 to 0.0374
31 January 2019  | 0.07           | 0.0367 to 0.0369

. HOOQ share options equity-settled
 December 2015, HOOQ Digital. 65%-owned subsidiary implemented Digital Employee Share Option Scheme. employees directors subsidiaries granted options purchase shares.
 exercisable 100% fair value fully vested 4 years from vesting commencement.
 fair value vested 4 years.
 grant dates exercise prices fair values
 term each option 10 years from date grant.
 fair values estimated Black-Scholes pricing model.
 1 April 2018 to 31 March 2019 options 9. 6 million shares HOOQ granted. 31 March 2019 43. 3 million shares outstanding.
 Equity-settled Exercise price Fair Value grant date
 Date grant US
 16 May 2016. 0445. 0463
 24 April 2017. 0301. 0315
 May. 0292. 0313
 July 2017.
 September. 0296. 0298
 October. 0309. 0320
 January 2018.. 0316. 0318
 April 2018. 0360.
 July 2018. 0368.
 October 2018. 0371. 0374
 January 2019. 0367. 0369


Stock Options
Stock options granted pursuant to the 2016 Incentive Plan are granted at an exercise price not less than the market value per share of the Company’s common stock on the date of grant. Under the 2016 Incentive Plan, the term of the outstanding options may not exceed ten years nor be less than one year. Vesting of options is determined by the compensation committee of the board and the administrator of the 2016 Incentive Plan and can vary based upon the individual award agreements. In addition, outstanding options do not have dividend equivalent rights associated with them under the 2016 Incentive Plan.
A summary of stock option activity is as follows:
The weighted average grant date fair value of stock options granted during the years ended December 31, 2018 and 2017, was $7.03 and $6.24, respectively. The Company did not grant stock options during the year ended December 31, 2019. The total intrinsic value of stock options exercised during the years ended December 31, 2019, 2018, and 2017, was $16.0 million, $15.8 million, and $13.4 million, respectively.

                               | Number of Shares | Weighted Average Exercise Price ($) | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value of In-the- Money Options ($)
------------------------------ | ---------------- | ----------------------------------- | --------------------------------------------------- | ------------------------------------------------------
Outstanding, December 31, 2018 | 4,864,836        | $17.76                              |                                                     |
Exercised                      | -854,524         | 15.78                               |                                                     |
Forfeited                      | -3,496           | 17.89                               |                                                     |
Outstanding, December 31, 2019 | 4,006,816        | $18.18                              | 3.71                                                | $78,949,941
Exercisable, December 31, 2019 | 3,462,664        | $17.86                              | 3.70                                                | $69,349,255

Stock Options
 granted 2016 Incentive Plan price not less market value per share common stock. term outstanding options exceed ten years less one year. Vesting determined by compensation committee administrator agreements. dividend equivalent rights.
 summary stock option activity
 weighted average grant value options December 31, 2018 2017 $7. 03 $6. 24. options December 31, 2019. total intrinsic value options 2017 $16. million $15. 8 million $13. 4 million.
 Number Shares Weighted Average Exercise Price Remaining Contractual Term (Years Aggregate Intrinsic Value Options$
 December 31, 2018 4,864,836 $17. 76
.
.
 December 31, 2019 4,006,816 $18. $78,949,941
 31, 3,462,664 $17. $69,349,255


Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
The Company’s common stock is traded on the NASDAQ Stock Market LLC (“NASDAQ”) under the symbol NTAP.
Price Range of Common Stock
The price range per share of common stock presented below represents the highest and lowest intraday sales prices for the Company’s common stock on the NASDAQ during each quarter of our two most recent fiscal years.
Holders
As of June 7, 2019 there were 413 holders of record of our common stock.

               |         | Fiscal 2019 |         | Fiscal 2018
-------------- | ------- | ----------- | ------- | -----------
               | High    | Low         | High    | Low
First Quarter  | $ 83.14 | $ 63.81     | $ 45.24 | $ 37.43
Second Quarter | $ 88.08 | $ 70.26     | $ 45.14 | $ 37.55
Third Quarter  | $ 83.95 | $ 54.50     | $ 64.06 | $ 43.24
Fourth Quarter | $ 78.35 | $ 61.00     | $ 69.75 | $ 52.00

. Registrant’s Common Equity Stockholder Matters Issuer Purchases Securities
 common stock traded Market NTAP.
 Range
 highest lowest intraday sales prices two recent fiscal years.
 June 7 2019 413 holders common stock.
 2019
 First Quarter $ 83. $ 63. 45. $ 37.
 Second Quarter $ 88. $ 70. 45. $ 37.
 Third Quarter $ 83. $ 54. $ 64. 43.
 Fourth Quarter $ 78. $ 61. 69. 52.


A. Selected Financial Data
The following selecte The following selected historical financial information should be read in conjunction with our audited financial statements and related notes, which are included herein, together with Item 5. Operating and Financial Review and Prospects. The Statements of Operations data for each of the three years ended December 31, 2019, 2018 and 2017 and selected Balance Sheet data as of December 31, 2019 and 2018 have been derived from our audited financial statements included elsewhere in this document. The Statements of Operations financial information for each of the years ended December 31, 2016 and 2015 and selected balance sheet information as of December 31, 2017, 2016 and 2015 have been derived from our audited financial statements not included in this Annual Report on Form 20-F.

SELECTED CONSOLIDATED FINANCIAL DATA Year ended December 31,  |             |             |             |            |
------------------------------------------------------------- | ----------- | ----------- | ----------- | ---------- | ----------
All figures in thousands of USD except share data             | 2019        | 2018        | 2017        | 2016       | 2015
Voyage Revenues                                               | 317,220     | 289,016     | 297,141     | 357,451    | 445,738
Voyage Expenses                                               | (141,770)   | (165,012)   | (142,465)   | (125,987)  | (158,656)
Vessel Operating Expense                                      | (66,033)    | (80,411)    | (87,663)    | (80,266)   | (66,589)
General and Administrative Expenses                           | (13,481)    | (12,727)    | (12,575)    | (12,296)   | (9,790)
Depreciation Expenses                                         | (63,965)    | (60,695)    | (100,669)   | (90,889)   | (82,610)
Impairment Loss on Vessel                                     | -           | (2,168)     | (110,480)   | -          | -
Impairment Loss on Goodwill                                   | -           | -           | (18,979)    | -          | -
Loss on Disposal of Vessels                                   | -           | (6,619)     | -           | -          | -
Settlement Received                                           | -           | -           | -           | 5,328      | -
Net Operating (Loss) Income                                   | 31,971      | (38,616)    | (175,690)   | 53,341     | 128,093
Interest Income                                               | 298         | 334         | 347         | 215        | 114
Interest Expense                                              | (38,390)    | (34,549)    | (20,464)    | (11,170)   | (10,855)
Other Financial (Expense)                                     | (4,160)     | (14,729)    | (644)       | (98)       | (167)
Total Other Expenses                                          | (42,252)    | (48,944)    | (20,761)    | (11,053)   | (10,908)
Income Tax Expense                                            | (71)        | (79)        | (83)        | (102)      | (96)
(Loss) Gain on Equity Method Investment                       | -           | (7,667)     | (8,435)     | (46,642)   | (2,462)
Net (Loss) Income                                             | (10,352)    | (95,306)    | (204,969)   | (4,456)    | 114,627
Basic Earnings (Loss) per Share                               | (0.07)      | (0.67)      | (1.97)      | (0.05)     | 1.29
Diluted Earnings (Loss) per Share                             | (0.07)      | (0.67)      | (1.97)      | (0.05)     | 1.29
Cash Dividends Declared per Share                             | 0.10        | 0.07        | 0.53        | 1.37       | 1.38
Basic Weighted Average Shares Outstanding                     | 142,571,361 | 141,969,666 | 103,832,680 | 92,531,001 | 89,182,001
Diluted Weighted Average Shares Outstanding                   | 142,571,361 | 141,969,666 | 103,832,680 | 92,531,001 | 89,182,001
Market Price per Common Share as of December 31,              | 4.92        | 2.00        | 2.46        | 8.40       | 15.54

. Selected Financial Data
 historical financial information audited financial statements notes Item 5. Operating Financial Review Prospects. Statements of Operations 2019 2018 2017 Balance Sheet data derived from statements. Statements Operations 2016 2015 balance sheet derived statements Annual Report Form 20-F.
 CONSOLIDATED FINANCIAL DATA December
 figures thousands USD except share data 2019 2018 2017 2016 2015
 Voyage Revenues 317,220 289,016 297,141 357,451 445,738
 Voyage Expenses (141,770) (165,012),465 (125,987)
 Vessel Operating Expense (66,033) (80,411)
 General Administrative Expenses (13,481) (12,727) (12,575)
 Depreciation Expenses (63,965),695 (100,669 (90,889
 Impairment Loss on Vessel (2,168) (110,480
 Loss Goodwill
 Loss Disposal Vessels
Settlement Received 5,328
 Net Operating Income 31,971 (38,616) (175,690) 53,341 128,093
 Interest Income
 Interest Expense (38,390 (34,549) (20,464 (11,170 (10,855
 Financial (4,160 (14,729)
 Other Expenses (42,252) (48,944) (20,761) (11,053) (10,908)
 Income Tax Expense
 Gain Equity Investment (7,667) (8,435 (46,642 (2,462
 Net (Loss Income (10,352) (95,306) (204,969) (4,456) 114,627
 Basic Earnings (Loss Share.
 Earnings Share.
 Cash Dividends Share.
 Weighted Average Shares 142,571,361 141,969,666 103,832,680 92,531,001 89,182,001
 Market Price Share December.92. 46. 40 15.


NAVIOS MARITIME HOLDINGS INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in thousands of U.S. dollars — except share data)
NOTE 4: CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents and restricted cash consisted of the following:
Short-term deposits and highly liquid funds relate to amounts held in banks for general financing purposes and represent deposits with an original maturity of less than three months
Cash deposits and cash equivalents in excess of amounts covered by government-provided insurance are exposed to loss in the event of non-performance by financial institutions. Navios Holdings does maintain cash deposits and equivalents in excess of government provided insurance limits. Navios Holdings reduces exposure to credit risk by dealing with a diversified group of major financial institutions. See also Note 2(e).

                                              | December 31, 2019 | December 31,2018
--------------------------------------------- | ----------------- | ----------------
Cash on hand and at banks                     | $77,041           | $131,432
Short-term deposits and highly liquid funds   | 950               | 6,450
Restricted cash                               | 736               | 12,892
Cash and cash equivalents and restricted cash | $78,727           | $150,774

NAVIOS MARITIME. FINANCIAL STATEMENTS U. S. dollars except share data
 NOTE 4: CASH EQUIVALENTS RESTRICTED CASH
 Short-term deposits liquid funds maturity less three months
 insurance loss non. Navios Holdings deposits equivalents insurance limits. credit risk financial institutions. Note 2(e).
 December 31, 2019 December 31,2018
 Cash hand banks $77,041 $131,432
 Short-term deposits liquid funds 950 6,450
 Restricted cash 736 12,892
 $78,727 $150,774


11. INTEREST EXPENSES
Interest expenses consist of interest expense on the long-term debt, the commitment fee and amortization of deferred financing costs related to the Credit Facility described in Note 9.
For the years ended December 31, 2019, 2018 and 2017, $0.0 million, $2.6 million and $2.5 million of interest expenses were capitalized, respectively.

All amounts in USD ‘000                          | 2019   | 2018   | 2017
------------------------------------------------ | ------ | ------ | ------
Interest Expenses, net of capitalized interest   | 34,018 | 29,753 | 18,286
Commitment Fee                                   | -      | 3,325  | 760
Amortization of Deferred Financing Costs         | 4,372  | 1,470  | 1,393
Other financial costs                            | -      | 1      | 25
Total Interest Expenses                          | 38,390 | 34,549 | 20,464

. INTEREST EXPENSES
 long-term debt commitment fee deferred financing Credit Facility Note 9.
 2019 2018 2017. million $2. 6 million $2. 5 million expenses capitalized.
 amounts USD
 34,018 29,753 18,286
 Commitment Fee 3
 Amortization Deferred Financing 4,372 1,470
 costs
 Expenses 38,390 34,549 20


10 Taxation (continued)
The tax expense for 2019 is higher and the tax credit for 2018 is lower than the standard rate of corporation tax in the UK. The differences are explained below:
1 The unprovided deferred tax predominantly relates to revenue losses, property fair values and derivative fair values.
Factors that may affect future current and total tax charges
Management uses judgement in assessing compliance with REIT legislation
The Group believes it continued to operate as a UK REIT throughout the year, under which any profits and gains from the UK property investment business are exempt from corporation tax, provided certain conditions continue to be met. The Group believes that these UK REIT conditions have been fulfilled throughout the year.
In view of the announced short-term reduction of dividends there will be an underpayment of the minimum PID, and therefore under REIT legislation, the Group will incur UK corporation tax payable at 19 per cent while remaining a REIT.
The ongoing current tax expense in the year of £16.0 million includes £15.7 million relating to corporation tax on the estimated current period underpayment of the minimum PID. This amount has been included within the Group’s measure of underlying earnings as it relates to a tax expense on current year UK rental income.
The UK exceptional current tax expense in the year of £6.4 million represents in full the corporation tax arising in the current year in respect of the prior year underpayment of the minimum PID. This one-off tax expense in respect of prior year profits has been classified as exceptional (see accounting policy in note 2) based on its incidence, and so is excluded from the Group’s measure of underlying earnings.

£m                                                                                | 2019      | 2018
----------------------------------------------------------------------------------- | --------- | ---------
Loss before tax, joint ventures and associates                                      | (1,856.8) | (1,139.6)
Loss before tax multiplied by the standard rate of tax in the UK of 19% (2018: 19%) | (352.8)   | (216.6)
Exempt property rental profits and revaluations                                     | 307.0     | 214.9
                                                                                | (45.8)    | (1.7)
Tax on shortfall of minimum PID                                                     | 22.1      | –
Additions and disposals of property and investments                                 | 7.1       | 0.3
Non-deductible and other items                                                      | 3.4       | 3.4
Overseas taxation                                                                   | (3.4)     | (0.4)
Unprovided deferred tax1                                                            | 22.4      | (7.3)
Total tax expense/(credit)                                                          | 5.8       | (5.7)

Taxation
 tax expense 2019 higher tax credit 2018 lower standard corporation tax UK. differences
 unprovided deferred tax relates revenue losses property values derivative values.
 Factors affect future tax charges
 Management compliance REIT legislation
 Group UK REIT profits gains property investment exempt corporation tax conditions. REIT conditions fulfilled.
 short-term reduction dividends underpayment minimum PID Group UK corporation tax 19 per cent REIT.
 current tax expense £16. 0 million includes £15. 7 million corporation tax underpayment minimum PID. included underlying earnings rental income.
 exceptional tax expense £6. 4 million corporation tax prior year underpayment minimum PID. classified exceptional excluded underlying earnings.
 2019 2018
 Loss before tax joint ventures associates (1,856. 8) (1,139.
 Loss tax multiplied standard rate tax 19%.
 Exempt property rental profits revaluations 307. 214.
.
Tax shortfall PID 22.
 Additions disposals property investments 7.
 Non-deductible items.
 Overseas taxation.
 Unprovided deferred 22.
 tax expense 5. 8.