Derivative Instruments
 Hedge Accounting
 currency forward contracts 12 months exchange rates. measured fair value inputs rates interest rates credit-risk spreads. speculative.
 Cash Flow Hedges currency exchange capital. recognized losses $3 million $17 million gains $15 million 2019 2018 2017. excluded reclassifications 2019. not material.
 Included in receivables.
 accounts payable accrued expenses current debt convertible notes settlement obligations.
 August 29, 2019 30 2018 4 million 3 million shares common stock.
 National Amount Current Liabilities(2)
 August 29, 2019
 instruments hedge accounting
 Cash flow currency hedges $146
 without hedge
 Non-designated currency hedges
 Convertible notes settlement
$(188)
 August 30, 2018
 instruments hedge
 Cash flow currency hedges $538
 hedge
 Non-designated currency hedges 1,919
 Convertible notes settlement


Share Plan
 disclosures.
 2016 2017 2019
 11th June 5th 26th
 Mid market share price 3,460. 3,550. 5,256. 5,560. 8,161.
 employees 15
 Shares 70,290 69,890 62,356 60,899,626
 3 years
 Probability vesting 71. 70. 8% 73.
 value 2,473. 2,513. 3,842. 4,084. 6,048.


. Geographic Information
 Property equipment geography
 No country 10% property equipment.
 Ended December31
 2018. 200. 231
.
 $258. $299.


 2019 Company granted awards. service three years vest 33% grant. vest meeting. cost. estimates value market price. recognizes compensation expense.
 nonvested RSUs
 2019 259,634 RSUs vested. withheld 57,802 minimum payroll taxes.
 unrecognized compensation expense $20. 5 million RSUs $15. 0 million TSRs $0. 5 million LTIP performance shares $0. 3 million nonvested $0. 2 million stock options.
 stock-based compensation expense ASC 718 2019 2018 2017 $36. 8 million $20. 4 million $13. 7 million tax benefits $5. 9 million $3. 9 million $1. 7 million. recognizes compensation expense stock awards.recognizes compensation stock option awards.
 Nonvested December 31, 2018 651,045 $23.
 Granted 742,579.
 Vested 24.
 Forfeited -124,586.
 Nonvested December 31, 2019 1,009,404 29.


table presents deferred tax assets liabilities
 July 27, 2019 federal state foreign operating loss carryforwards were $676 million $1 billion $756 million. acquisitions limited. 2020. valuation allowance $111 million.
 July 27, 2019 tax credit carryforwards $25 million $1. 1 billion $5 million. expire 2020. credits carried forward indefinitely. valuation allowance $346 million.
 28,
 doubtful accounts returns.
 Sales direct-financing leases
 Inventory write-downs capitalization
 Investment provisions.
 IPR&D goodwill purchased intangible assets
 Deferred revenue.
 net operating loss carryforwards.
 Share-based compensation expense
 Accrued compensation
 deferred tax assets
 Valuation allowance
deferred tax assets. 4,998
 Purchased. (705)
 Depreciation.
 Unrealized gains.
 tax liabilities (1,028)
 net $3,970


. Transfer unclaimed amounts Investor Education Protection Fund
 Sections 124 125 Act Investor Education Protection Fund Authority Rules 2016 dividend not claimed 7 years Investor Education Protection Fund.
 shares dividend unclaimed seven years
 transferred IEPF.
 shares order Court Tribunal Statutory
 Authority restraining transfer.
 Company sends reminders
 dividends avoid transfer IEPF. Notices
 newspapers details unclaimed dividends
 uploaded website.
.
 Company transferred to IEPF
 unclaimed dividends 7 years Company TCS e-Serve
 CMC Limited. shares
 dividend not claimed 7 years
 transferred to IEPF Authority.
 details unclaimed dividends shares transferred IEPF 2019
 Includes final dividend TCS e-Serve CMC Limited
members dividends shares IEPF
 online application Form. IEPF-5.
 physical copy Company documents
. claims against Company dividend
 transferred. file one consolidated claim financial year
 Rules.
 unclaimed dividend shares
 2011 102. 3,028
 2012 86. 29,672
 189. 32,000


2019 2018
 increased $6. 5 million 7. 3% $89. 5 million to $96. million. growth driven SaaS software hardware maintenance offset home health care services sequencing molecular analysis.
 SaaS revenue $72. 8 million $7. 2 million. $65. 6 million. $4. million increase Eviti solutions $3. 2 million NaviNet SaaS revenue professional services.
 Software hardware increased $3. 5 million 76. 8% $4. 5 million to $8. million. DCX contract.
 Maintenance revenue increased $0. 7 million. 0% $9. 8 million to $10. 5 million. DCX contracts.
 Sequencing molecular analysis revenue decreased $1. 4 million 44. 6% $3. 1 million to $1. 7 million. lower volume samples.recognize revenue from contracts without uncertainty reimbursement. insurance coverage expect reduce sequencing molecular analysis revenue cash.
 reimbursement ordered no payer contract. engaging plans physician’s ordering. pre-authorizations documentation billing appeal process payment.
 approval pathways test capabilities FDA in medical device clearance coverage governmental Medicare. uncertainty formal approval. implemented patient financial responsibility expect unpaid partial paid orders decline GPS orders revenue.
 Home health care services revenue decreased $3. 5 million 54. 7% from $6. 3 million 2018 to $2. 9 million 2019. due sale business June 2019.
 opportunities for expanded cross-selling base. expand GPS Cancer analysis reporting. Maintaining customer base important future SaaS revenue.
 Year Ended December 31, Period-To-Period Change

.
 Software-service 72,831 65,646 7.
 8,015 3. 8 %
 10,519 9,834.
 software revenues 91,365 11,351. 2 %
 Sequencing analysis 1,733 3,129.
 health care 2,863 6,321.
 revenue $ 95,961 89,464 6,497. 3


non-current assets
 pledged employee benefits not.
 ENDED DECEMBER 31
 post-employment benefit plans 24 331
 Long-term notes receivables 142 89
 200
-traded-held investments 129 110
 128 114
 135
 non assets 1,274 847


. MAJOR SHAREHOLDERS TRANSACTIONS
.
 table ownership five percent directors officers annual report.
 147,230,634 shares.
 holdings High Seas AS Hansson family personal holdings Chief Executive Officer. Herbjorn Hansson director Alexander Hansson.
 Less than 1% shares.
 April 14, 2020 575 holders Cede & Co. Depositary Trust. total 147,230,634 Shares annual report.
 Title Identity Person. Shares Percent
 Hansson 4,380,659 2. 98%
 Jim Kelly
 Richard Vietor
 David Workman
 Bjørn Giæver


FREE CASH FLOW DIVIDEND PAYOUT RATIO
 standardized meaning IFRS. comparable issuers.
 free cash flow operating activities acquisition costs voluntary pension funding capital expenditures preferred share dividends subsidiaries NCI. acquisition. non-recurring.
 free cash flow indicator financial strength dividends debt. investors analysts cash financial strength. comparable IFRS measure cash flows operating activities.
 dividend payout ratio dividends common shares divided free cash flow. sustainability dividend payments.
 reconciliation cash flows.
 Cash flows operating activities 7,958
 Capital expenditures (3,988)
 dividends preferred shares (147)
 subsidiaries NCI (65)
 Acquisition costs
 Voluntary pension plan contribution
 Free cash flow 3,818 3,567


property business includes communications sites networks leasing fiber backup power. presence wireless development diversification growth potential. property segments revenue
 Communications Sites. 95% 96% 97% revenue 2019 2018 2017.
 lease space sites communications services cellular voice data broadcasting mobile video applications. receive pass-through revenue costs power fuel ground rent. top tenants revenue U. S. AT&T. Verizon Wireless T-Mobile US. Sprint Corporation 89%. revenue. 2020. Asia Vodafone Idea Bharti Airtel Reliance Jio 83% Asia revenue. Africa MTN Group Airtel 74% Africa revenue. Europe Telefónica. Bouygues Free 70% Europe. Latin America Telefónica AT&T América Móvil 58% Latin America revenue.
.

 Africa 7%
 Europe 2%
 Latin America 18% 17%


Benefit Costs net pension cost $6. 5 million $4. 6 million years 2019 2018.
 components benefit cost
 income $1. 4 million revenue loss $7. 9 million 2019 $2. 1 million loss $6. 7 million 2018.
 Service cost—benefits earning
 Interest cost benefit obligation 5.
 return assets.
 Actuarial (gain loss.
 Foreign currency gain (loss.
 Net pension cost 6.


INTANGIBLE ASSETS
 June 30, 2019 2018
 amortization customer relationships 14. 3 years. underlying rights easements certifications indefinite lives. amortization 13. years. amortization June 30 2019 2018 2017 $95. 1 million $97. 2 million $80. million.
 Carrying Amount Accumulated Amortization
 30
-Lived Intangible Assets
 relationships $1,597. $1,098.
.
 1,601. 1,100.
 Indefinite-Lived Intangible Assets
.
.
 1,619. 1,118.
 30
 Finite-Lived Intangible Assets
 $1,597. $1,191.
.
 1,599. 1,193.
 Indefinite-Lived Intangible Assets
.
 rights.15.
 $1,618. $1,212.


Equity-based Compensation Plans
 Company equity awards participants options restricted stock units Stock. option purchase price. RSU award shares. options RSU awards vest three years. employee stock purchase plan payroll deductions.
 Lam Research Corporation 2007 Incentive 2011 2015 non-qualified equity awards employees consultants advisors non directors. 2015 Incentive Plan 18,000,000 shares. 1,232,068 shares 2007 Incentive Plan added 2015. June 30, 2019 9,379,904 shares future issuance. New shares issued from Stock 2015 Incentive Plan.
 equity-based compensation expense benefits Consolidated Statements Operations
 estimated fair value awards amortized over vesting terms.
 30 2019 2018

 Equity compensation $187,234 $172,216
 $47,396 $87,505,381
 options RSUs $49,242 $90,297,749


Asset Retirement Obligations
 December 31, 2019 removing equipment disposing asbestos hazardous materials buildings. long-term liabilities balance sheets.
 Level 3 acquisition recorded liabilities fair values. discounted cash flow method.
 obligation activity
 liabilities assumed 2018 purchase price adjustments.
 2019 2018 2017 estimates offset property plant equipment.
 Years Ended December 31,
 Balance $190 115
 Accretion expense
 Liabilities Level
 settled
 transferred Cyxtera
 Change estimate
 Balance end year $197 190


Restructuring
 2019 Company implemented plan expense structure reduction revenue objectives. assessed efficiency consolidated locations personnel. plans reduce operating expenses. internationally.
 February 2019 restructuring workforce Germany closure office Munich relocation severance benefits. offered voluntary early retirement March 2019.
 January 2018 early retirement incentive program. cumulative $7. 3 million. additional expenses.
 reconciliation restructuring liability wages benefits Balance Sheets
 2018
 Balance $185 $205
 Amounts charged cost expense 6,014 7,261
 paid (4,631) (7,281)
 end $1,568 $185


BUSINESS COMBINATION 2019
 Purchase fibre network assets
 October 3 2018 Atlantic Broadband south Florida fibre network FiberLight. fibers added 350 route miles south Florida footprint.
 purchase subject closing adjustments. final allocation purchase price
 August 31, 2019 November 30, 2018
 Purchase price
 closing 38,876
 Balance due 5,005
 43,881
 Net assets acquired
 receivables
 Prepaid expenses
 Property plant equipment
 Intangible assets
 Goodwill
 Contract liabilities
 43,881


. PRINCIPAL ACCOUNTING FEES SERVICES.
 Independent Accounting Firm
 fees audit services Brightman Almagor Zohar & Co. Deloitte Global Network audit financial statements years December 2019 2018 services.
 Audit fees quarterly statements services regulatory filings.
 Tax fees tax returns Inter-Company matters.
 Deloitte financial information system design implementation. providers. Deloitte compliance outsourcing services.
 2019
 Audit Fees $58,000 $55,000
 Audit-Related Fees $
 Tax Fees (2) $28,000 $11,000
 Other Fees
 Total Fees $86,000


AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
. OPERATING EXPENSE
 impairment charges net losses sales disposals. records impairment charges value partially. towers network intangibles-related intangibles. Net losses sales disposals relate non towers miscellaneous items. acquisition integration costs.
 years December 31,
 2017
 Impairment charges $94. $394. $211.
 Net losses sales disposals 45. 85.
 Other operating expenses 27.
 $166. $513. $256.


. Income Taxes
 2019 2018 2017
 Federal $15,160 $63,814 $78
 11,943
 27,103 74,182
 Deferred
 (3,498),958)
 Foreign (7,093) 23,793
 (9,764 20,388
 $17,339 $94,570 $9,761


Statements
 related party items
 Transactions FNF November 30 2019 related party.
 ended December 31,
 Software services $40. $35. $32.
 Data services 19. 21. 24.
 party revenues $59. $57. $56.


Personnel expenses
 operating profit.
 Wages salaries 158,371 191,459
 Social security 14,802
 Pension 8
 Share 8,215 10,538
 Restructuring
 188,503 227,727


Business Services
 segment changes.
 increased 2017 growth Consulting digital cloud technology expertise. GPS grew Application Management revenue flat declined 2017.
 cloud Migration Factory development declines traditional application management engagements. cloud revenue $4. 7 billion grew 20 percent 19 percent adjusted currency prior year.
 year December 31 2017.
 Global Business Services revenue $16,595 $16,073 3. 2% 2. 3%
 Consulting $7,705 $7,262. 1% 5.
 Application Management 7,852.
 Global Process Services 1,037.


segment changes.
 2018 GTS profit margin flat productivity automation delivery workforce optimization.
 Pre-tax income-market offerings hybrid market.
 December 31 2018 2017. Margin Change
 Services
 gross profit $10,035 $10,022.
 margin 34. 4%.
 Pre-tax income $ 1,781 2,618.
 margin 5. 8%.


intangible assets
 Amortization expense $364. 7 $316. $294. 3 2019 2018 2017. $400 2020 $383 2021 $379 2022 $347 2023 $321 2024.
.
 Assets subject amortization
 $3,926.(1,083. 2,843.
 504. 304
. 78.
 Patents.
.
 Assets not amortization
 608.
 Balances December 31, 2018 $ 5,228. $(1,386. 3,842.
 Assets amortization
 intangibles $ 4,955. $(1,349. 3,606.
 Unpatented 613. 333.
.
 Patents 12.
.
 Assets not subject amortization
 659.
 Balances December 31, 2019 6,420.(1,752. 4,667.


Consolidated Revenues
 key drivers results sources liquidity.
 table summarizes revenues deferred net revenues in-game net revenues
 In-game net revenues downloadable content microtransactions.
 Consolidated revenues
 decrease 2019 driven $1. 1 billion Destiny Hearthstone Call of Duty Overwatch.
 offset increase $236 million Sekiro: Shadows Die Twice Crash Team Racing Nitro-Fueled.
 remaining decrease $131 million other franchises titles.
 Increase
 Consolidated net revenues $6,489 $7,500 $(1,011) (13)%
 effect deferred net revenues 101 238 (137)
 In-game net revenues 3,376 4,249 (873


. Inventories
 June 30 2019
 FIFO $178. 4 million $210. 3 million higher. cost LIFO inventories $793. $760. 8 million. reductions decreased cost $0. 2019. 6 million 2018. 2017.
 Raw materials supplies $169. $157.
 Work process 425. 372.
 products 192. 159.
 inventory $787. $689.


. income
 Ended
 April 26, 2019 27, 2018 28, 2017
 Interest income $ 88 $ 79 $
 expense (58)
 24
 $ 47 $ 41


Stock
 summary changes December 31, treasury
 Restricted stock shares Omnibus Incentive Plan 2019 1,478 issued (5,024) forfeited reflected Recordkeeper. Balance Sheets reflect issued Recordkeeper.
 acquisition B+ Equipment issued shares common stock September 26, 2018 former equity holders. offshore no direct selling without registration Securities Act 1933 issuer safe harbor Regulation S.
 January 1, 2019 new share issuances awards netted income tax. withheld canceled. shares issued recorded treasury stock. Shares netted taxes 2019 vesting restricted stock shares years.
 activity 2018 adjustment.
 Repurchase common stock December 31, 2019 includes 71,530 shares not reflected Recordkeeper. Balance Sheets reflect shares treasury Recordkeeper.
 Changes common stock
231,619,037 230,080,944 227,638,738
 569,960 480,283
,984) (86,518 (184,235
 vested 164,347 151,280 607,231
 2014,783 749,653
,139
 636,723
 Stock Leverage Opportunity Awards 6,321 109,841 136,783
 Omnibus Incentive Plan 123,824 10,841 15,768
 Canceled tax (181,488)
 (25,233
 231,622,535 231,619,037 230,080,944
 stock
 75,964,667 61,485,423 34,156,355
 Repurchase 1,632,163 14,826,924 27,320,816
 Profit,108 (538,524 (502,519)
 withheld 190,844 510,771
shares 77,109,722,667 61,485
 154,512,813 155,654,370,595,521


Contractual Obligations
 August 31, 2019 summarized. non-cancelable obligations property plant equipment materials commitment. beyond weeks. beyond cancelable.
 interest notes payable long-term debt 2019. variable rates. estimated interest rates.
 purchase commitments property plant equipment software.
 estimated company contributions pension plans 2020 benefit payments unfunded pension postretirement plans 2020 2029. payments not recorded Consolidated Balance Sheets as incurred.
 $28. 5 million capital commitment $16. 2 million obligation human resource system $33. 0 million one-time transition tax installments 2026.
 August 31, 2019 $1. 5 million $103. 7 million current long-term liability uncertain tax positions. estimate excluded from table.
 Payments due period
1-3 3-5
 debt $2,496,465 $375,181,655,134,733
 interest 373,762
 lease 603,185 118
 Capital lease 77,829
 Non-cancelable 351,230 289,516 61,537
 Pension retirement contributions 14,618 1,135 1,904 9,183
 77,669 17,922
 $3,994,758 $917,610 $924,411 $1,332,208 $820,529


Operations
 December 31, 2018 2019
 2019 27. ships revenue days 27. management 2018 26. ships 9,030 revenue days 25. 5 ships technical management.
 Revenues increased 8. 1% $50. 3 million $618. 3 million 2018 to $668. 6 million 2019. $63. 4 million GasLog Houston Hong Kong Gladstone delivered January 8 March 20 March Warsaw July 31, 2019. revenue. increase $11. 0 million spot short-term market unscheduled dry-dockings GasLog Savannah Singapore Chelsea increase $2. 7 million remaining fleet. offset decrease $26. 1 million expiration charters Shanghai Santiago Sydney Skagen Saratoga Jane Elizabeth decrease $0. 7 million increased off-hire days remaining vessels.daily hire $68,392 2018 to $70,167 2019.
. Dollars
 Revenues $618,344 $668,637 $50,293
 pool allocation 17,818 (4
 Voyage expenses commissions (20,374
 Vessel costs (128,084,662
 Depreciation,193)
 expenses (41,993) (47,385
 Impairment loss
 Profit operations 292,518 123,364
 Financial costs (166,627) (190,481
 income 4,784 5
 Loss derivatives (6,077
 profit
 expenses (166,120 (238,977
 Profit(loss 126,398 (115,613)
 Non-controlling interests 78,715
 $47,683


Share-based payments
 Disclosures. detail Annual Report Remuneration 2019 pages 102 132. charge Income Statement
 2019 2018
 £m Performance Share Plan.
 Employee Share Ownership Plan.
 expense Income Statement.


Investing Activities. Cash flows changed$65. 7 million 2018 to $13. 8 million 2019. million$62. 9 million cash sale restaurants repayments refranchising increase $9. 8 million capital expenditures.
 includes restaurant remodeling information technology investments new locations equipment. 2019 increased $9. 8 million $16. 2 million purchases sale offset $8. 7 million decrease restaurant capital maintenance facility improvement restaurants. increase due property Los Angeles restaurant. purchase price $17. 3 million intend sell property lease 12 months.
 facility expenditures $9,202 $17,949
 Purchases 21,660
 New restaurants 1,381
 3,597
 Corporate Services
 Information technology 9,405 4,584
 facility improvements 2,404
,649 $37,842


table annual pension entitlement Executive Board membership 62 SAP salary plans.
 rights Bill McDermott pension plan SAP America.
. pensions retirement higher.
 Vested 12/31/2019/31/2018
 Christian Klein-CEO 10/11/2019.
 Fox-Martin.
 Michael Kleinemeier.
 Bernd Leukert 3/31/2019 34.
 Bill McDermott 10/10/2019 Executive Board Member 11/15/2019 90.
 Luka Mucic 27.
 Jürgen Müller.
 Ries.
 Thomas Saueressig 11/1/2019.


Non-current Liabilities
 2019 2018
 Lease $28,046
 534
-current liabilities $28,754 $534


OPTIONS
 incentive plans options executives common shares. subscription price based on trading price last five days
 December 31, 2019 7,524,891 common shares authorized issuance. Options vest after three years employment. exercisable seven years 2019 ten years 2019.
 table summarizes outstanding stock options at December 31, 2019 2018.
 average market share price $62 2019 $55 2018.
 OPTIONS AVERAGE EXERCISE PRICE
 January 1 14,072,332 10,490,249
 3,357,303 3,888,693
 (4,459,559) (266,941)
 Forfeited (144,535) (39,669)
 December 31 12,825,541 14,072,332
 2,786,043 4,399,588


 March 4, 2019 $750 million March 2026 $1. 0 billion 2029 $750 million March 15 2049. interest annual 3. 75% 4. 875% 2026 2029 2049 Notes semi-annual March 15 September 15 2019.
 March 12, 2015, $500 million March 2020 $500 million 2025. interest 2. 75% 3. 80% 2020 2025 semi-annual March 15 September 15. June 26, 2016, interest rate contracts 2025 Notes fixed variable benchmark interest rate. Note Financial Instruments.
 June 7, 2016, $800 million Senior Notes 2021. pays interest annual 2. 80% 2021 Notes semi-annual June 15 December 15.
Company redeem 2020 2021 2025 2026 2029 2049 Notes 100% principal premium interest before February 15 2020 May 15 2021 December 15 2024 January 15 2026 December 15 2028 September 15 2048. redeem Notes after February 15 2020 May 15 2021 December 2024 January 15 2026 December 15 2028 September 15 2048 2049. repurchase Senior Notes equal 101% principal amount plus accrued unpaid interest.
 additional information Senior Notes June 30, 2019
 Remaining Amortization period Fair Value Notes
 2020. $500,855
 2021. $806,232
 2025. $528,895
 2026. $786,915
 2029. $1,063,670
 2049. $828,188


. TAXES
 Deferred taxes differences liabilities. deferred tax assets liabilities
 September 27, 2019 $923. 4 million loss carryforwards $479. 2 million AppliedMicro $158. 9 million Mindspeed Technologies. $26. 2 million BinOptics $259. 1 million MACOM.
 carryforwards expire 2037 losses. NOL carryforward infinite. loss limitation Sections 382 383 Internal Revenue Code 1986.
 27, 2019
 Deferred tax assets
 Federal losses credits $263,199 $321,982
 Intangible assets 9,887
 Property equipment
 non-current deferred tax assets
 compensation
 gain
 Interest
 Valuation allowance
 deferred tax asset $43,180


 €298 million €216 income tax expenses €81 million higher previous.
 group tax rate segment 42. 0% (2017/18 37. 6%. expenses earnings taxes. increase deferred taxes Germany. low ratio previous year positive tax effects rate changes reduction risk provisions.
 notes consolidated financial statements. page 206.
 Adjustment previous year.
 million 2017/2018 2018/2019
 taxes 173 215
 Germany
 expenses current
 previous periods
 Deferred taxes 43
 Germany


Cash Conversion Cycle
 table components cash conversion cycle fourth quarter past three fiscal years
 Days sales outstanding DSO calculates average collection period receivables. based net revenue. average net revenue per day (91 days. year over year increases DSO fourth 2019 2018 due less shipping linearity 2019 early payment discount.
 Days inventory outstanding DIO average days procurement to sale. based. increase DIO 2019 due higher finished goods hand. decrease DIO 2018 due strong product sales.
 Days payables outstanding DPO calculates average days before payment. based cost revenues. calculated average cost revenues per day. 2019 unchanged 2018 increased 2017 improved vendor payables management extensions payment terms suppliers.
 cash conversion cycle sum DSO DIO less DPO.cash conversion cycle business payment terms shipment linearity seasonal trends timing revenue recognition inventory purchases.
 Three Months Ended
 Months Ended April 26, 2019 27, 2018 28, 2017
 sales outstanding
 inventory 26
 Days payables outstanding
 Cash conversion cycle 15
 Days add rounding


Reserved
 July 31, 2019 2018 authorized issue 500,000,000 shares $0. 0001 per share 82,140,883 80,611,698 shares issued outstanding. January additional 5% added reserve.
 future issuance
 March 2018 offering 2,628,571 shares. price $87. 50 per share. No sold stockholders.
 2019 2018
 Exercise stock options 216,727,064
 Vesting restricted stock awards 2,384,673 2,932,155
 24,776,361 21,592,494
 stock 27,377,761 25,061,713


PROPERTY PLANT EQUIPMENT
 summarized
 leasehold improvements capitalized leases. maintenance repair. depreciable asset retired depreciation removed accounts.
 Depreciation expense $66 $73 thousand 31, 2019 2018.
 Building improvements $1,273
 Scientific equipment
 Computer hardware software
 Machinery 274
 Land improvements 162
 personal property
 Office equipment
 accumulated depreciation (1,969)
 property $


. INCOME TAXES
 2019
 Domestic(51,396) (27,494 57,493
 Foreign (83,450 15,951 28,742
 $(134,846) $86,235


AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
 Redeemable Noncontrolling December 2019 MTN acquire noncontrolling interests Ghana Uganda $523. 0 million. first quarter 2020 regulatory approval. agreement partners Eure-et-Loir Réseaux Mobiles SAS. controlling interest 51% local partners 49% noncontrolling interest. agreement provides put options call options shares. options noncontrolling interests. redemption redeemable balance equity. value Eure-et-Loir interests December 31, 2019 $2. 7 million.
 changes Redeemable noncontrolling interests years December 2019 2018 2017
 Balance January 1 $1,004. $1,126.
 Additions redeemable noncontrolling interests.
income noncontrolling interests 35.
 Adjustment interest redemption. 86.
 merger.
 Purchase redeemable noncontrolling interest (425.
 currency adjustment interests. 68.
 December $1,096. $1,004. $1,126.


. March 31, 2019
. Distribution equity
 shares Percentage capital accounts
 100 18,402,438. 528,148.
 37,550,103.
 501 - 1000 14,900,327. 20,749.
 5000 27,199,737.
 5001 - 10000 9,150,929.
 10001 - 20000 8,811,580.
 20001 - 30000 5,636,878.
 30001 - 40000 5,424,479.
 50000 4,808,196.
 21,790,964.
 3,598,709,075.
 3,752,384,706. 751,605.


. Cash equivalents
 denominated currencies
 balances less three months held accounts attracted interest. 3% (2018. 3%.
 2019
 £m
 Sterling 5.
 Euro.
 bank hand 5. 9


AMERICAN TOWER CORPORATION SUBSIDIARIES REAL ESTATE DEPRECIATION
 foreign currency exchange rate fluctuations deductions.
 accumulated depreciation $(5,724. 7),181.,548.
 Additions
 (768. (751. (718.
.
 accumulated depreciation assets sold disposed 121. 129. 100.
. 78.
 deductions 110. 207. 85.
 $(6,382. 2)(5,724.,181.


Income Taxes
 expense
 Fiscal years 2017 adjusted ASC 606.
 Company realized deferred tax expense$50. million. 6 million $1. 2 million. foreign jurisdictions.
 Years Ended March
 Federal $170 $223
 State local
 Foreign 9,966 8,295 4,247
 income tax expense operations 10,297 8,568 4,309
 Deferred
 (43,804)
 State local
 (5,180 1,467
 Deferred tax expense operations (49,757
 income tax expense $,460 $9,132 $4,294


March 31, 2019 2018
 tax effect pension balances $2. 4 million $2. 3 million March 2019 2018.
 Net actuarial loss $16,864 $15,691 $
 service cost 1,325
 Accumulated loss $18,189 $17,104 $(793)


Ended December 31, 2018 2017
 management reviews financial measures service revenue results cash flows. tables results measures. discussed.
 Ended December
 2017
 Operating Data
 Average Revenue Per Unit)
-net $ 480 $ 506.
-net $ 1,155 $ 1,239.
 Average price megabit $. $.
 Customer period
 On-net 68,770 61,334.
 Off-net 10,974.


 table results 2019 2018. Part II Item 7 Annual Report Form 10-K March 31, 2018 SEC May 21, Financial April 1 2017.
 increased $116. 8 million 2019 higher mobile products base station products offset decrease smartphone demand.
 provided products contract manufacturers 32% 36% revenue 2019 2018. Huawei 13% 8% revenue. RF Wi-Fi solutions cellular base stations mobile devices. May 2019 U. government restrictions sales Huawei Note 2 II 8.
 International shipments $2,610. million 2019 84% revenue $2,449. 1 million 2018 82%. Asia $2,446. 3 million 79% $2,329. 3 million 2018 78%.
 MARGIN
 flat price erosion offset product mix.
 spending increased $5.million 2018 higher personnel costs lower product development spend R&D.
 Selling Administrative
 expense decreased $51. 7 million. 8% lower intangible amortization personnel costs.
 Operating Expense
 $52. 2 million. recognized $15. 9 million impairment charges $11. 6 million employee termination benefits Note 11. recorded $18. million start-up costs.
 expense $103. 8 million. restructuring actions recorded $18. 3 million employee termination benefits adjusted assets. fair market value $46. 3 million. integration restructuring costs $6. 2 million $2. 6 million $24. 3 million start-up costs.
 $216. 5 million $70. 3 million 2018. lower intangible amortization higher revenue lower impairment charges equipment.
Dollars %
 $3,090,325. $2,973,536.
 goods 1,895,142.
 profit 1,195,183. 1,146,966.
 development 450,482. 445,103.
 Selling 476,074. 527,751.
 expense 52,161. 103,830.
 Operatingincome $216,466. $70,282.


Revenues Operating Expenses
 revenues increased 2019 due to growth cloud license revenues offset by decreases hardware services revenues. constant currency increase cloud license revenues attributable to growth cloud services license support revenues growth cloud on-premise license revenues. constant currency decreases hardware revenues due reduction hardware emphasis cloud-based infrastructure technologies reduced sales. decrease services revenues declines consulting education services revenues. Americas EMEA Asia Pacific regions contributed 40% 33% 27%, to growth 2019 revenues.
 operating expenses increased due to higher expenses cloud license business increased headcount infrastructure expenses. expense increase offset by expense decreases lower expenses hardware business lower restructuring expenses.
 operating margin increased due to increase revenues flat.
 Europe Middle East Africa
 Year Ended May 31,

 Percent Change
 2019 2018
 Revenues
 Americas $21,856 1% 2% $21,648
 EMEA 11,270 -1%
 Asia Pacific 6,380
 revenues 39,506 39
 Operating Expenses 25,971 -1%
 Margin $13,535 $13,264
 34%
 Revenues
 Americas 55%
 EMEA 29%
 Asia Pacific
 Revenues Business
 Cloud license $32,562 2% $31,994
 Hardware 3,704 -7%
 Services 3,240 -5%
 $39,506 $39,383
 Revenues Business
 Cloud license 83%
 Hardware
 Services
 Europe Middle East Africa


. FINANCIAL INSTRUMENTS FAIR VALUE DISCLOSURES
 majority subsidiaries’ transactions assets liabilities denominated United States dollars. no risk currency fluctuations cash flows.
 Company categorizes fair value estimates. three levels
 1. Quoted prices.
 2.
 Level 3. Unobservable inputs little market data assumptions.
 methods assumptions fair value financial instruments.
 carrying value cash equivalents marketable securities.
 long-term debt equal values spreads variable interest rates.
 carrying estimated value financial instruments at December 31, 2019 2018
 2019 Senior Secured Credit Facility Vessel financing 2018 Newbuildings carry floating LIBOR interest rate margin fair value carrying value.
 figures USD Value
 Hierarchy 2019
 2018
Recurring
 Cash Equivalents 48,847 49,327
 Restricted Cash 12,791
 Credit Facility (313,400
 Senior Secured Credit Facility
 Investment Securities 4,197
 Vessel financing Newbuildings (119,867),140


ordinary share capital
 entitle dividends proceeds. paid shares no par value authorised capital.
 member one vote share one vote.
 Issue price
 Balance 1 July 2017 130,215,813 125,177
 23 February 2018 69,129 $8.
 30 June 2018 130,284,942 125,635
 24 August 2018 69,129 $8.
.
 21 December 2018 129,044 $0.
 30 June 2019 130,511,522 126,058


Uncertain Tax Positions
 June 30, 2019 2018 2017 accrued interest expense $3. 4 billion $3. 0 billion $2. 3 billion net tax benefits. taxes 2019 2018 2017 expense $515 million $688 million $399 million.
 changes unrecognized tax benefits
 settled audit 2004 to 2006 2011. withdrew 2011 Revenue Report reopened audit. settled 2007 to 2009 2016, 2010 to 2013 2018. under audit 2004 to 2013. examination 2014 to 2017 12 months.
 June 30, 2019 unresolved issues transfer pricing financial statements. allowances income tax contingencies adequate. proposed assessment final resolution 12 months. increase tax contingencies.
 subject income tax jurisdictions outside. 1996 to 2018. resolution not financial statements.

 Ended June 30
 tax benefits $ 11,961,737,164
 Decreases settlements (316) (193)
 current year 2,106 1,445 1,277
 prior years 508
 (1,113,176
 lapsed statutes limitations
 Ending benefits $ 13,146 11,961


non-operating results
 consolidated results 2019
 Interest expense increased $1. 2 million $103. 1 million $101. 9 million 2018.
 $28. 9 million lower interest Hilli FLNG conversion
 $1. 5 million term loan facility 2019.
 offset reduced interest costs lower LIBOR rates
 $12. 4 million decrease interest expense
 $8. 7 million interest borrowing costs
 $6. 5 million decrease deposits Golar Partners loans equity
 $1. 0 million decrease Hilli letter credit $300 $250 million 2019 $125 million November 2019.
 Losses derivative instruments increased $7. 5 million $38. 0 million 2019 $30. 5 million 2018.
 interest rate swap agreements portfolio $737. 5 million. unrealized losses $16. 5 million.million 2018 decline long-term swap rates decreased value swap portfolio. gains interest rate swaps decreased $6. 4 million December 31, 2019 $8. 1 million. lower LIBOR rates.
 Unrealized losses Total Return Swap 2014, three month Stock Indexed DNB Bank. 2019 repurchased 1. 5 million shares. extended March 2020. net loss $30. 5 million December 31, 2019 $30. 7 million 2018. losses decline share price.
 Unrealized-to-market losses Earn-Out Units reset. decrease Golar Partners distribution $0. 4042 per unit mark-to-market loss $7. 4 million derivative asset $nil. no comparative movement 2019.
 financial decreased $4. 0 million $5. 5 million $1. 5 million 2018 consolidating VIEs.
income non-controlling interests increased $26. 4 million $89. 6 million 2019 $63. 2 million 2018 Hilli Disposal 2018.-controlling interest $61. 7 million $31. 3 million 2018.
 income $36. 5 million $19. 7 million Hilli LLC $0. 5 million Gimi MS Corporation 30% equity interest First FLNG Holdings 2019 $28. 3 million $31. 9 million equity interests VIEs.
 Interest income 10,479
 Interest expense,124
 Losses derivative instruments (38,044) 25%
 Other financial items (5,522) (1,481
 Income taxes (1,024)
 income non-controlling interests (89,581) (63,214) 42%


BCE CUSTOMER CONNECTIONS
 Q1 2019 base 167,929,231 postpaid 95,698 prepaid 65,798 (19,195 postpaid 46,603 shutdown CDMA 49,095 prepaid deactivation 43,670 postpaid 9,366 postpaid transferred retail high-speed Internet.
 Q4 2018 base 20,000 subscribers Xplornet acquisition MTS 2017.
 January 1, 2019 reporting wholesale subscribers Internet TV NAS retail. restated 2018 subscribers.
 added 657,323 retail connections 2019 6. 4% increase 2018. 401,955 postpaid wireless 113,454 prepaid 135,861 high-speed Internet TV 91,476 IPTV 85,423 satellite TV
 residential NAS losses 263,325. 7% 2018.
 retail connections grew. 3% erosion residential NAS.
2019 BCE connections 18,983,510 9,957,962 wireless. 6% 9,159,940 postpaid 3. 7% 798,022 prepaid. 3% 3,555,601 high-speed Internet. 3% 2,772,464 TV. 2% 1,767,182 IPTV. 5% 1,005,282 satellite TV 7. 8% 2,697,483 residential NAS decline 8. 9%
 Wireless 9,957,962,482 3. 6%
 Postpaid,159,940,830,216.
 Prepaid.
 high-speed Internet 3,555,374.
,464,766,411.
,767,182.
 1,005 1,090,705.
 16,286,027 15,787,267.
 2,697,483 2,960,808.
 18,983,510,748,075.


Operating Segments
 Company operates one operating segment. components enterprise financial information evaluated by chief maker. evaluates information performance. one segment. financial information evaluated by. information.
 Revenue by geographic country ship-to destinations
 Year Ended December 31,
 2019 2018 2017
 United States $70,702  $56,839 $60,723
 China 159,637  98,906 148,431
 Germany 57,657 58,711 57,051
 Thailand 82,413 68,217 48,016
 Other 94,254  57,218 70,945
 Total revenue $464,663 | 339,891 |,166


15 INCOME TAXES
 cumulative tax effect net deferred tax 21% December 31, 2019
 realization deferred tax assets income net operating losses temporary differences deductible. uncertainty future operations income deferred valuation allowance recorded. historical income projections future.
 tax years 2016 to 2019 open audit Internal Revenue. no uncertain tax positions December 31, 2018 2019 expected next 12 months. foreign subsidiaries cost reimbursed no income loss. Pretax income domestic operations. four years returns open audit audits responsibility previous owners.
 issuance common shares ownership change Internal Revenue Code Section 382 carry-forwards. net operating loss carry-forwards credits. timing. likely fundraising activities ownership change.
 Deferred tax asset
loss $3,839,000 $2,290,000
 Stock compensation 320,000
 Intangible Assets
 Deferred tax 4,195,000 $2,952,000
 Fixed assets
 Intangibles (2,438,000
,728,000
 tax,195,000
 deferred tax


Cash Equivalents Restricted cash equivalents shortterm investments non-interest-bearing less than 90 days. equivalents $127. 2 million $128. 7 million December 31, 2019 2018 non-interest-bearing accounts. equivalents $125. 3 million $115. 7 million international operations. funds taxes repatriated United States. country restrictions.
 Restricted cash purposes.
 reconciliation cash equivalents restricted cash Consolidated Balance Sheets Cash Flows
 2018 2017 2016
 Cash equivalents $127,246 $128,697 $343,734 $266,675
 Restricted cash current assets
 charges assets 1,371
 $129,185 $130,231 $344,805 $267,594


Operating Revenue
 Includes subscription interconnect roaming wholesale MVNOs content services.
 equipment sales ICT services.
 digital marketing advertising video.
 energy reselling fees.
 March 2019 transaction price obligations NCS Pte. approximately S$3 billion operating revenue 5 years.
. S$3 billion operating revenue 5 years.
 contracts consumers month to 2 years enterprises 1 to 3 years.
 Mobile service 5,395.
 Sale equipment 2,876.
 Handset lease income.
 Mobile.
 Data Internet.
 Business solutions.
 Cyber security.
 Other managed services 1,880.
 Infocomm Technology. 3,007
 Digital businesses 1,245.
 Fixed voice.
 Pay television.
.
 Operating revenue 17,371.
 17,371. 17,268.
 224. 258.
 38. 45
 17,634. 17,572.


. increased 23%-on RMB209. 8 billion. reflected content FinTech services channel costs. increased 2019 from 55% 2018.
 VAS increased 27% RMB94,086 million. due content costs live broadcast online games channel costs smart phone games.
 FinTech Business Services increased 35% RMB73,831 million. reflected payment-related cloud services.
 Online Advertising decreased 6% RMB34,860 million. driven lower content costs fewer releases improved cost efficiency offset.
 VAS 94,086 47% 73,961 42%
 FinTech Business Services 73,831 73% 54,598 75%
 Online Advertising 34,860 51% 37,273 64%
 Others 6,979 92% 4,742 98%
209,756 170,574


. Principal Accounting Fees Services
 table fees services Malone Bailey LLP. summary fees services fiscal years 2019 2018.
 Audit Fees fees services
 audits quarterly reviews financial statements registration statements documents SEC.
 Audit-Related Fees activities not related audit financial.
 Tax Fees no tax fees.
 Other Fees $0 $0.
 Audit Committee Pre-Approval Policies Procedures. oversees monitors financial reporting process control
 reports issues.
 responsible appointment compensation accountants. convenes
 quarterly external auditor.
 Audit-Related Fees Tax Fees fees
 Marcum LLP’s Malone Bailey LLP’s independence determined services 2019 2018 compatible. services
 approved Rule 2-01 Regulation S-X Exchange Act.
 Fiscal
 2018
 Audit fees $55,000 $54,550
Audit
 Tax Fees
 fees
 55,000 $54,550


tax effects differences deferred tax assets liabilities
 Tax Act enacted December 22, 2017. corporate income tax rate 35% to 21% limitations business deductions. 2018 $32. 5 million tax expense impact re-measurement deferred tax assets liabilities reduced Tax Rate.
 Deferred tax assets 2019 operating loss carry-forwards$27. 4 million expiring 2020 2038. valuation allowance$2. 5 million decreased$3. 6 million 2018 losses. carry-forwards deferred tax assets future strategies.
 jurisdictions States. federal statutes limitations expired 2016. California Texas expired 2015.
 Deferred tax assets
 Accrued defined benefit pension postretirement benefits $46,918 $34,776
 Deferred income 13,803
 Impairment
insurance 7,133
 compensation 5,415
 Tax 5,327
 Lease 3,786 4,696
 Deferred interest deduction 3,188
 reserves 2,965
 incentive compensation 2,617
 Interest rate swaps
 deferred tax 103,093 81,110
 Valuation allowance (2,485
 100,608 77,556
 Intangible assets (10,520
 Leasing (3,822),790
 Property equipment
 liabilities (15,044
 $85,564


. Liquidity Capital Resources
 Navios Holdings financed capital with cash debt securities borrowings. Main uses refinancings debt capital expenditures new vessels construction upgrades port terminals vessels international standards. may market conditions use funds refinance repurchase debt transactions laws rules regulations prices terms factors. sources funds cash long-term borrowings debt equity financings sales investments. assure financing additional funds liquidity needs.
. Business Overview Vessel Purchase Capital-Term Debt Obligations Credit Arrangements” Navios Holdings’ working capital position.
 table cash flow information years December 31, 2019 2018 2017 adjusted ASU 2016-18 Statement Cash Flows Cash.
 Net cash increased by $40. 5 million to $96.million 2019 $55. 6 million 2018. adjusted non-cash items
. 2019 2018 2017
 cash operating activities $96,112 $55,637 $48,117
 investing (56,467) 27,863 (42,365)
 financing (111,692) (66,916) (12,940)
 restricted cash (72,047) 16,584 (7,188)
 150,774 134,190 141,378
 end year $78,727 150,774 $134,190


tax effects differences deferred tax assets
 $2. 8 billion $2. 4 billion liability $2. 9 billion. 5 billion long-term liability $118 million $131 million noncurrent deferred tax.
 Deferred tax assets
 Post-retirement pension benefit costs $1,169
 operating loss carryforwards
 employee benefits
 deferred tax assets 5
 Less valuation allowance
 deferred tax assets
 liabilities
 Property equipment depreciation differences
 Goodwill intangible assets
 liabilities
 deferred tax liability


Option Exercises Stock Vested 2018
 table shares common stock acquired 2018 executive officers options vesting RSUs RSAs value realized.
 Calculated fair market value Class A common stock vesting date price shares acquired.
 stock RSUs vested 2018. Daswani Murphy. Friar Henry Reses Whiteley 20,132 44,857 59,014 91,306 17,217 shares withheld tax withholding obligations vesting.
 Calculated fair market value A common stock vesting date number shares acquired. Daswani Murphy. Henry Reses Whiteley $1,389,704 $414,596 $2,782,628 $3,619,149 $5,502,076 $1,114,287 shares withheld tax withholding obligations vesting.
 Option Awards Stock Awards
Shares Acquired Value
. Dorsey
. Friar 1,082,343 54,631,297 5,788,657
. Henry 13,187,645 124,498,787
. Reses 189,577 11,284,454
. Whiteley 20 989,821 38 2,375,984
. Daswani 45,310 3,106,268
. Murphy 1,120,072


tax credit £8. 9m £13. 7m prior year. deferred tax credit £6. 1m loss tax £42. 7m credit £1. 7m prior period losses capital allowances. tax credit £1. 1m overseas tax.
 deferred tax liability 30 March 2019 £13. 5m £12. 1m 31 March 2018. higher pensions surplus tax pensions. deferred tax assets £44m 30 March 2019 £250m future taxable profits.
 corporation tax deferred tax rate 19. 0% 17. 0%.
.
 Deferred.
.
 deferred tax 17. 0%
.


income taxes federal tax
 tax rate 2019 impacted excess tax benefits employee stock transactions federal research tax credits offset valuation allowances foreign withholding tax taxes sale commercial cybersecurity business.
 2018 impacted decrease valuation allowances conversion subsidiary capital losses deferred tax assets subsidiary benefits.
 2017 impacted reduction federal corporate tax rate 35% to 21% deferred tax excess benefits.
 January 3 2020 December 28, 2018
 federal income tax rate
 State income taxes federal tax benefit
 Excess tax benefits stock-based compensation
 Research development credits
 Change valuation allowance deferred tax assets
 Stock subsidiary sale
 Change uncertain tax positions
 Dividends employee stock ownership plan
 Impact foreign operations
conversion subsidiary
 federal tax rate
 transaction costs
 $196 $28 $29
 income tax rate 22. 6%. 7. 4%


revenues 2019 $1. 9 million acquired MGI business. net loss $0. 3 million. table information MGI acquisition 1 2018.
 No adjustments synergies MGI acquisition. not indicative results future results.
 Ended December 31
 Revenues $ 224,913 $ 17,542
 Loss continuing operations $ (13,432) 7,792)
 Loss share.
 shares 32,359,316 22,099,149


. PROPERTY EQUIPMENT
 table.
. 1 million 2019. 2 million 2018. financed. 3 million property leases equipment. Assets $1. 5 million $2. 2 million 2018.
 Land $730 $585
 Furniture fixtures 476 5-10
 Plant 9,667 8 20-40 years
 Computer software 1,317 3-5
 improvements 2,019 4-15 years
 Machinery equipment 16,864 13,528 5-15 years
 31,073 25,132
 depreciation
 19,077 15,010


pension expenses company pension plan
 Netted contributions.
 Interest effect adjustment asset ceiling.
 loss €90 million 2018/19. actuarial parameters €+247 million experience-based adjustments €+4 million. offset income plan assets €103 million gain €58 million asset ceiling.
 payments external pension providers €82 million 2018/19. payments statutory pension insurance.
 provisions pensions employment anniversary allowances death benefits partial retirement plans. Provisions €34 million. valued actuarial opinions. valuation parameters company pension plan.
 Current service
 Net interest
 Past service cost. curtailments changes
 Settlements
 Other pension expenses


. Principal Accountant Fees Services
 Professional Audit
 summary fees accountants PricewaterhouseCoopers LLP years December 31, 2019 2018:
 audit financial statements services filings.
 assurance services related not.
 tax compliance advice planning.
 products services not.
 Fiscal
 Audit Fees(1) $1,925,000 $1,956,000
 Audit-Related Fees(2) 14,000
 Tax Fees(3)
 Other Fees(4) 222,000 157,000
 Total Fees $2,147,000 $2,127,000


Description segments activities decision-makers assess performance based on revenue gross profit. selling marketing administrative expenses not included in performance resource allocation. Interest income gains finance income profit income tax expense not allocated.
 no inter-segment sales 31 December 2019 2018. revenues from external customers measured with consolidated income statement.
. no segment assets liabilities.
 segment information for 2019 2018
  VAS FinTech Business Services Online Advertising Others Total
 revenues 199,991 101,355  68,377 7,566 377,289
 Gross profit 105,905 27,524 33,517 587 167,533
 Depreciation 3,461 6,669 2,065 12,303
 Amortisation 14,710 9,977 3,115 27,802


. FINANCIAL INSTRUMENTS RISK MANAGEMENT
 cash receivable values short-term.
 assets
 Cash equivalents 285,907 497,874
 receivable 173,450 199,535
 liabilities
 payable 80,640 119,712


PROPERTY EQUIPMENT
 Depreciation expense. million. 4 million 2018 2017.
 assets capitalized software tooling.
 Leasehold improvements $3,522 $3,157
 LoJack law enforcement
 units 20,326
 Plant equipment tooling 13,078
 Office computers furniture 11,553
 Software 31,349
 86,190
 depreciation amortization (58,641
 Fixed assets 5,836 4
 $27


Equity Balance Sheet Adjustments Accounting Standards 2018
 January 1 adopted Topic 606 ASU 2018-02 Income Comprehensive Income. 606 retrospective method. ASU 2018-02 reclassification earnings Tax Cuts Jobs Act.
 cumulative-tax effect balance sheet 606 2018-02
 Adjustments
 December 31, 2017 Topic 606 ASU 2018-02 January 1 2018
 Retained earnings 35,635
 income 2,659
 Noncontrolling interests


Share-Based Compensation Expense
 consolidated statements
 Years Ended December 31,
 2017
 Software royalties amortization intellectual property licenses $19 $13 $10
 Game Operations Distribution
 Software royalties amortization licenses
 Product development 53 61 57
 Sales marketing
 General administrative 82 115 92
 taxes 166 209 178
 Income tax benefit
 tax $137 $163 $144


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


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


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


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


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


expenses payroll overhead audit contract labour consulting public company costs.
 increased $2. 7 million 2019. due payroll benefits $4. 1 million miscellaneous expenses $2. 2 million. offset reduction facility expenses $4. 5 million. activities. expenses revenue 7%.
 labour resources increased 119 1,501 2018 to 1,620 2019.
 Payroll benefits $4,089 $22,908
 Contract labour consulting (618)
 Share-based compensation
 Travel communication
 Facilities (4,537)
 Other miscellaneous
 Total change expenses $2,682 $34,874


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


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


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


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


Restricted Share Awards
 December 31, 2017 granted RSAs. awards service three years vest 33% anniversary grant. shares issued without cost employee. RSAs granted vest year next meeting. Company estimates value market price grant. grants dividends common voting rights. recognizes compensation expense.
 nonvested RSAs
 December 31, 2019 106,610 RSAs vested. withheld 32,371 minimum payroll withholding taxes.
 Nonvested December 31, 2018 213,337 $20.
.
.
 Nonvested December 31, 2019 92,842 $20.


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


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


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


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


. INCOME TAXES
 December 22, 2017 Tax Cuts Jobs Act. revised. corporate income tax. rate 21% 35% full expensing property after September 27, 2017 territorial tax system. one-time tax unrepatriated earnings foreign subsidiaries 2018 Repatriation eight years. tax base erosion Global Intangible Low-Taxed Income Base- Erosion Anti-Abuse Tax effective fiscal 2019. foreign subsidiaries. taxable income.
 SEC issued Staff Accounting Bulletin. 118 provisional estimates one year measurement period.
 2018 net tax expense $77. 3 million Act. Transitional Repatriation Tax expense $116. million deferred tax benefit $39. 1 million. 2019 three quarters net income tax benefit adjustment $17. million $1. million reduction Transitional Repatriation Tax $15. million increase.tax assets.
 GILTI provisions 2019 $30. 4 million tax expense $70. 8 million foreign earnings $40. 4 million credits. GILTI inclusions. current-period expense.
 Income taxes
 States $(297,975) $(151,083) $2,439
 Foreign 389,767 168,228 24
 $91,792 $17,145 $27,305


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

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


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


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


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


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


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

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


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


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


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


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


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


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


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


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


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


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


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


financial assets liabilities derivatives holdings in unlisted investments loans.
 investments in equity securities financial assets fair value. measured net transaction costs change income. disposal cumulative gain loss transferred to retained earnings.
 Associates Group influence not financial policies. Investments recognised at cost transaction costs accounted equity method share profit loss income carrying until influence ceases. Dividends reduce carrying investment associates.
 Derivatives 45 53
 assets
 501 366
 Listed equity securities 91
 Investments in associates 59
 Loans 41
 non‐current financial assets 692 522
 575
 58
 financial liabilities


. Government grants
 trade payables
 research global navigation satellite systems high technology projects.
 2019 2018 $ million
 1 January 2. 3 6
 Received.
 income statement.
 31 December 2.


Order intake increased higher volume large orders. growth Asia Australia orders wind-farms € 2. 3 billion. higher orders Americas large orders onshore. orders lower Europe. Africa Middle East offshore wind-farm.
 € 1. 3 billion.
 Revenue offshore service onshore. revenue rose Europe. Africa Middle East declined other regions.
 Adjusted prior-year level price declines project mix higher expenses. charges € 32 million 2019
 € 77 million 2018. order backlog € 26 billion € 9 billion converted revenue 2020.
 markets higher demand onshore offshore. volume adverse price development. growth onshore driven China
 U. S. Germany declined.
 offshore growth driven U. K. China. global onshore wind installations grow 2020 U. S. India.offshore wind power markets grow 2020. driver China offsets decline European markets. volume adverse price development currency translation effects.
 Fiscal year
 millions.
 Orders 12,749 11,875 7 %
 Revenue 10,227 9,122 12
 Adjusted 482
 margin. 7 %.


 increased $7. 5 million $55. 6 million $48. 1 million 2017. adjusted non-cash items
. 2018 2017
 loss $(265,511) $(164,787)
 Adjustments
 Depreciation amortization 102,839
 deferred financing costs
 drydock costs 13,828
 Provision losses accounts receivable
 Share compensation
 Gain bond debt extinguishment (6,464)
 Bargain gain control (58,313)
 Income tax benefit
 Impairment losses 200,657
 Gain sale assets
 Loss affiliates dividends 84,317
 income non-cash items $82,362 $15,742


Non-Current Assets
 $60. $59.
 Contract 37. 17
 Right-of-use 26.
 Deferred compensation plan 15. 11
 Unbilled receivables.
 Prepaid expenses. 18.
 Unrealized gains interest rate swaps.
.
 $158. $121.


reconciles operating segment revenues margin before taxes
 Cloud license revenues not recognized consolidated statements. See Note 9 adjustments reconciliation revenues consolidated statements.
 Year Ended May 31,
 millions 2019 2018 2017
 Total revenues $39,526 $39,430 $37,963
 Cloud license revenues
 $39,506 $39,383 $37,792
 margin $23,981 $23,857 $23,208
 Cloud license revenues
 research development (6,026)
 General administrative (1,265)
 Amortization intangible assets (1,689)
 Acquisition
 restructuring
 Stock-based compensation segments
 Expense allocations
 Interest expense (2,082)
 Non-operating income
 Income before taxes $12,268 $12,424 $11,680


. SHARE-BASED PAYMENTS
. Employee Share Plan
 employees shares future remuneration. Shares issued transferred valued volume-weighted average price Australian Securities Exchange five days. Shares sold transferred three-year period employment.
 shares
 shares issued 22 May 2019 $3. 72 (7 May 2018: $4. 24).
.
 beginning year 114,758 137,227
 distributed 45,560 42
 transferred (44,526) (64,949)
 year end 115,792 114,758


deferred tax assets liabilities
 valuation allowance March 2019 increased unrealized capital losses equity investments acquired tax loss credits carryforwards California research development credits. valuation allowance.
 U. S. federal net operating losses $147 million expire 2020 2037. federal research development credits $11 million. expire 2020 2036. $89 million net operating loss carryforwards $11 million. tax credits. remaining. credits annual limitation. realized. $3 million foreign tax credits expire 2028. U. state net operating loss credit carryforwards companies $68 million $51 million. expire 2020 2037. carryforwards carried forward indefinitely. foreign net operating loss carryforwards $118 million $24 million Japan expire 2028 carried forward indefinitely.
March 29, 2019 30 2018
 Deferred tax assets
 credit carryforwards $54
 loss acquired companies
 accruals deductible
 Deferred revenue
 Intangible assets
 Loss
 Stock compensation
 deferred tax assets
 allowance
 $649 $371
 liabilities
 Property equipment
 Goodwill
 Intangible assets
 Unremitted earnings foreign subsidiaries
 Prepaids deferred expenses
 Discount convertible debt
 liabilities
 $253


Non-GAAP Financial Measures
 Statements Operations non-GAAP Adjusted gross margin operating income net income EBITDA. GAAP. not net income cash liquidity.
 reconciliation. GAAP Gross non-GAAP Adjusted margin
 Fiscal years 2018 2017 adjusted ASC 606.
 $0. 9 million costs 2018 relocation tantalum powder equipment Carson City Nevada Matamoros Mexico reclassified start-up 2019.
 Years
 Net sales $1,382,818 $1,200,181 $757,338
 Cost sales 924
 Gross Margin (GAAP 458,542,437
 net sales. 2%. 3%. 5%
 Non-GAAP adjustments
 Plant start-up costs
 Stock-based compensation expense 2,756
margin-GAAP $460,371 $341,885,205
 sales. 3%. 7%


tables summarize operating income depreciation amortization restructuring charges gain down disposal assets capital expenditures 2019 total assets depreciation amortization restructuring disposal capital expenditures
 March 31, 2018 adjusted ASC 606.
 Total assets
 Solid Capacitors $794,402 $704,851
 Film Electrolytic 219,711 240,968
 MSA 234,419 254,193
 Corporate 69,563
 $1,318,095 $1,222,923


Key Performance Indicators
 revenue growth monitor performance indicators growth budgets sales marketing assess operational efficiencies. indicators
 Adjusted EBITDA revenue constant currency growth rate non-GAAP measures. Item 6. Financial Data. Reflects customer count last day period nearest hundred customers.
 Revenue constant currency growth rate. key indicator operating results. translating revenue foreign currencies into. dollars comparable exchange rates prior periods.
. Item 6. Financial Data. total revenue grew constant currency growth rate decreased growth.
 revenue grows constant currency growth rate growth.
 Revenue retention rate. indicator stability revenue base value customer relationships. driven by customer renewals upsells. calculate annualizing constant currency revenue last day measurement period customers.
 include revenue additional employees services purchased existing customers.divide result revenue constant currency first day measurement period customers. trailing twelve months.
 revenue based average exchange rates. revenue retention rate 2019 consistent 2018. expect 2020.
 Total customers. key indicator financial success future revenue potential. customer active subscription contract. parent company subsidiary. expect grow customer base new customers.
 Gross profit percentage. calculated divided revenue. consistent three years fluctuated addition hardware employees. amortization intangible assets acquired businesses.
 provide services. Costs incurred revenue recognized. gross profit consistent constant currency.
 Adjusted EBITDA. key indicator operating results. net (loss) income depreciation amortization disposals impairment-lived assets acquisition-related gains share-based compensation restructuring interest income taxes foreign exchange income.
 includes rent build-to-suit facilities.limitations non-GAAP measure reconciliation Adjusted EBITDA. GAAP Item 6. Financial Data.
 Adjusted EBITDA operating expenses increase expanding sales marketing research development.
 Ended March 31,
 Revenue growth rate 32%
 Revenue retention rate 111%
 customers 34,400
 Gross profit percentage 73%
 Adjusted EBITDA $54,008 $25,752 $12,457


NETWORKS.
 LOSS
 Ended December 31,
 Net loss $(17,819) $(27,617),751)
 loss tax
 Unrealized gain securities
 loss $(17,424) $(27,638),829)


Liquidity Capital Resources
 sources liquidity cash equivalents investments accounts receivable. table shows net cash operating investing financing March 31, 2019 2018
 November 2015, raised proceeds $68. 3 million initial public offering discounts commissions expenses. 2019 2018 operating losses $1. 2 million $7. 0 million $10. 4 million. loss 2020 positive cash flows.
 expansion Mime  OSTM platform. 2019 $28. 8 million $25. 8 million expansion architecture.
 2020 capital expenditures increase-time costs. data center expansion.
 March 31, 2019 2018 cash equivalents investments $173. 5 million $137. 2 million. cash equivalents investments flows sufficient operations twelve months. future capital requirements vary growth operating results.
 additional capital sell equity raise funds debt financing. invest businesses.
 additional financing. no commitments capital expenditures March 2019 2018.
 ended March 31,
 operating $66,235 $46,412 $32,514
 investing (121,324) (35,019)
 financing 116,985 13,156


Property Equipment
 December 31, 2019 finance lease computer. valued $13. million maintenance. 3 million interest Consolidated Balance Sheets. Note 12 Long-Term Debt.
 $11. $11
 Buildings improvements 81. 71
 Leasehold improvements.
 234. 208.
 Furniture fixtures 11.
 345. 309.
 Accumulated depreciation amortization.
 $176. $177.


Tax Carryforwards
 expiration income tax loss tax credit future taxes August 31, 2019
 unrecognized tax benefits.
 deferral foreign investment tax credits
 Year
 Income tax loss
 $57,299
 $565,609
 Tax credit carryforwards
 $39,784
 $3,313
 $15,345


Unrecognized Tax Benefits
 July 31, 2019 unrecognized tax benefits increased $1. 3 million U. S. Federal California R&D credits. July benefits $6. 2 million tax rate. estimate change.
 Company files income taxes U. S. Federal state foreign jurisdictions. losses tax credits. examine returns. tax returns. California open 2002 2019. July no income tax audits. foreign jurisdictions.
 years July
 Unrecognized tax benefit $10,321 $9,346 $7,687
 Gross increases
 decreases
 increases 1,302 1,124 1,638
 Unrecognized tax benefit end period $11,633 $10,321 $9,346


Purchases Equity Securities
 table stock withheld employees fourth quarter 2019 tax
 Shares Withheld Average Price Paid Share
 October 16,585.
 November 185,887.
 December 12,368.
 214,840


DSU
 Corporation offers Deferred Share Unit Plan for Board attraction retention. percentage annual retainer DSUs balance paid cash. DSUs based average closing price shares TSX twenty days issue. Dividend equivalents awarded credited additional DSUs. redeemable payable cash or shares ceasing death.
 DSUs issued outstanding August 31
 compensation expense $1,792,000 $181,000 2018) year ended August 31, 2019.
 Years ended August 31, 2019 2018
 42,607 40,446
 Issued 11,328 6,662
 Redeemed (12,351) (5,549)
 Dividend equivalents 1,095
 end 42,679,607


Overheads declined $76 million $60 million payment Caltex $50 million reversal property $37 million. $150 million Endeavour Group.
 increase inventory $4,280 million higher closing inventory BIG W. Closing days declined.
 investment $939 million. New Zealand Food payment declined 19%.
 creditors provisions $4,308 million decreased $40 million.
 assets investments loans $9,710 million increased $528 million. Additions $2,040 million store refurbishments supply chain IT infrastructure $203 million property development. offset depreciation amortisation disposals impairment $166 million BIG W review.
 assets $225 million decreased $575 million Petrol business EG Group.
 Intangible assets $6,526 million increased $61 million goodwill brand names impairment Summergate $21 million.
tax balances $227 million increased $66 million deferred tax assets BIG W network review.
 debt $1,599 million increased $377 million due New Zealand creditor payments higher capital expenditure Petrol business dividends.
 Return Funds Employed operations 24. 2% 11 bps up. 14. 1%.
 Cash flow $3,858 million increase 0. 5%. EBITDA offset New Zealand payment run provisions accruals. extra offset nine months EBITDA Petrol business.
 cash realisation ratio 74. 1%. 98. 4%.
 Net interest $166 million declined 9. 8% early repayment US Private Placement Notes borrowing costs.
 Profit Loss
 53 weeks 30 June 2019
 Gross profit 29.
 Cost business (%).
EBIT 4. 7
 EARNINGS PER SHARE DIVIDENDS
 average shares (million 1,305. 7 1,300. 5. 4%
 EPS before 142. 132. 7%. 8%
 after 206. 132. 55. 5% 53. 7%
 134. 123. 8%. 8%
 114. 3 123. 4.
 133. 123. 4% 6. 4%
 113. 123.
 dividend per share 45 4. 7%
 Final dividend share 14. 0%
 dividend share.
 dividend per share 102 103.


19—RESTRUCTURING
 2019 initiated projects supply chain strategy methods processes suppliers costs increasing efficiencies worldwide procurement. majority costs related consultants recognized corporate entity. total costs expected exceed $0. 9 million completed fiscal 2020. 2019 CTS CGD segments incurred restructuring charges employee severance costs headcount reductions cost. total costs not greater incurred.
 fiscal 2018 restructuring North American shared services center. 2017 restructuring centralization efficiency manufacturing restructuring CGD elimination management simulator business.
 Restructuring charges
 September 30
 Restructuring costs
 Transportation Systems 3.
 Mission Solutions.
 Global Defense.
 Unallocated corporate expenses.
 Total restructuring costs $ 15. $.


annual compensation Supervisory Board members
 share-based payment. unrelated status.
 thousands 2019 2018 2017
 Total compensation 3,770  3,702 3,663
 fixed compensation 3,218 3,162  3,135
 committee remuneration  540 528


Cloud Cognitive Software
 segment.
 Red Hat.
 revenue $23,200 million increased 4. 5 percent (6 percent. growth Cloud Data Platforms Red Hat. Linux application development emerging technologies OpenShift Ansible. Cloud Paks client base 2,000 clients cloud platform. Cognitive Applications grew. Transaction Processing Platforms declined grew 1 percent fourth-quarter.
 Cognitive Applications revenue $5,765 million grew 2. 3 percent growth Security IoT. threat management software. revenue new solutions.
 Cloud Data Platforms revenue $9,499 million increased 10. 4 percent (12. RHEL OpenShift Red Hat IBM hybrid strategy.
 Transaction Processing Platforms revenue $7,936 million decreased 0. 5 percent grew 1 percent. investment IBM platforms.
 revenue $4.2 billion grew 40 percent 42 percent adjusted currency Red Hat hybrid cloud offerings.
 December 31 2019.
 Cloud Cognitive Software revenue $23,200 $22,209. 2%
 Cognitive Applications 5,765.
 Cloud Data Platforms 9,499 8,603.
 Transaction Processing Platforms 7,936.


11 CAPITAL.
 Share-based compensation employees directors.
 Company awards employees officers directors service providers. vests conditions restrictions GNC Committee. performance goals employment period. purchase price Committee. attained unvested awards. Compensation expense based fair market value grant date.
 total compensation expense December 31, 2019 2018 $392 $506.
 Restricted Stock Average Grant Date Value Contractual Term
 Nonvested December 31, 2017 126,808 4.
 144,447 3.
 118,347.
 Nonvested December 31, 2018 152,908 3.
 113,012.
 64,535.
 Nonvested December 31, 2019 201,385 4.


Allowance Credit Loss
 financing receivables summarized
 CREDIT LOSS ALLOWANCES
 Lease Loan Financed Service Contracts
 July 28, 2018 $135 $60 $10 $205
 Provisions (54)
 Recoveries
 Foreign exchange
 July 27, 2019 $46  $71 $9 $126


deferred tax assets liabilities
 United States Tax Cuts Jobs Act enacted 2017 changes income tax law. reduced tax rate 35% to 21% taxes foreign-sourced earnings related-party payments global intangible low-taxed income tax base erosion tax.
 2017 one-time transition tax foreign subsidiary earnings.
 provisional expense $15. 3 million statements December 31, 2017. 118.
 $10. 1 million deferred tax balances $5. 2 million one-time transition tax foreign subsidiary earnings.
 Adjustments 2018 consolidated financial statements. accounting. Tax Reform complete. divestiture investment Netsmart amounts.
 federal net operating loss carryforwards $174 million $164 million December 31, 2019 2018. US carryovers $8 million Israeli carryovers $56 million.December 31, 2019 2018 NOL carryforwards $1 million $2 million.
 expire 2020. stock Internal Revenue Code.
 Deferred tax assets
 Accruals reserves $29,627 $31,565
 doubtful accounts
 Stock-based compensation
 Deferred revenue 21,786
 lease liabilities 22,085
 loss carryforwards 37,717
 Research development tax credit
 Valuation Allowance
 deferred tax assets 122,272
 Prepaid expense
 Property equipment
 Acquired intangibles (111,284
 Operating finance right-use assets (17,255
 deferred tax liabilities (137,606)


Assets Liabilities Measured Value
 table presents assets liabilities December 31,
 2019
 money market funds approximates fair value short maturity
.
 non-financial assets liabilities recognized disclosed value
 December 31, 2019.
 Cash equivalents Money market funds $256,915
 assets
 Indemnification Sale SSL
 Long term liabilities
 Globalstar Brasil. $145


 party to agreements. FNF ownership related until December 1, 2019 shared board senior management agreements. December 1 2019 Chairman Board FNF related party.
 agreements FNF software data services corporate shared services information technology. party other agreements expenses revenues FNF.
 revenues expenses FNF
 Transactions FNF through November 30, 2019 no longer related party.
 paid FNF guarantee fee 1. 0% principal Senior Notes guarantee. December 31, 2017 guarantee fee included Interest expense. April 26, 2017 Senior Notes redeemed no longer required guarantee fee.
 Year December
 Revenues $59. $57.
 Operating expenses.
 Guarantee fee.


received final ratifications positive impact earnings arrangements. EPRA NAV share 143.
 increased 67. cent 2019 property revaluation deficit. reduces 65. 3 cent adjusted disposal proceeds Puerto Venecia Asturias.
 Interest
. above target. 60x reduced 2019 rental income.
 available cash facilities
 reduced £5. million £241. 5 million 31 December 2019. excludes rents interest payments. 10 March 2020 cash £200. million augmented Puerto Venecia sales proceeds April.
 Debt assets ratio 67. 8% 53. 1% 14. 7%
 Interest.
 debt maturity.
 gross debt. 3%.
 debt interest rate protection 88%
 available cash facilities £241. 5m £246. 8m.


 table results financial information
 Net revenue $25,282,320 $22,095,416 $19,063,121
 Gross profit $1,913,401 $1,706,792,545,643
 Operating income $701,356 $542,153 $410
 income Jabil $287,111 $86,330 $129,090
 share.
 diluted.


FINANCIAL STATEMENTS thousands
 projected accumulated value Pension Plans
 December 31,
 Projected obligation $3,778 $3,848
 Accumulated $2,999 $3,028
 Fair value assets $1,418 $1,426


Unrecognized Tax Benefits
 Company operates jurisdictions tax returns. assesses provision taxes. unrecognized tax benefits totaled $3. 1 million $1. 4 million at April 27, 2019 April 28, 2018. tax rate.
 tax benefits April 27, 2019 estimate change tax benefits next twelve months.
 U. S federal statute of limitations open fiscal years 2016 state tax 2013. Tax authorities review adjust operating losses tax credits. foreign jurisdictions fiscal 2012 periods open examination.
 interest penalties income tax. $0. 1 million accrued interest no penalties at April 27, 2019.
 Balance Beginning Fiscal Year.
 Increases Positions Prior Years.
 Increases Current.
 Decreases
 Statutes Limitations.
 Balance End Fiscal Year.


Deferred Revenues
 prepayments license fees products control. upfront payments consulting services non-recurring engineering services.
 defer license fees until accounting requirements recognition. Engineering development fee revenues deferred until. defer AirBar sensor modules revenues until sell
. GAAP aggregations. AirBar sensor module returns warranty experience estimates homogenous transactions. reserve for future sales returns reduction accounts receivable revenue insignificant as of December 31, 2019 2018.
 deferred revenues by source
 license fees $28 $
 NRE
 AirBar
 sensor modules revenues
 $67


Quarterly Financial Data
 sales earnings influenced seasonal factors. first fiscal quarters lowest maintenance shutdowns. changes economy alter.
 2017 recorded income tax benefit. Statements.
 First Second Third Fourth Quarter
 Results Operations
 Year 2019
 Net sales $572. $556. $609. $641.
 Gross profit $91. $107. $123. $122.
 Operating income $45. $67.
 Net income $31. $35.
 Year 2018
 sales $479. $487. $572. $618.
 Gross profit $85. $85. $96. $114.
 Operating income $42. $41.
 income $23.


. EARNINGS SHARE
 table reflects basic diluted earnings share.
 based. Stock options restricted stock included. two-class method EPS awards non rights dividends. no anti-dilutive options restricted stock excluded 2019 41 2018 32 2017.
 June 30
 Net Income $271,885 $365,034 $229,561
 shares basic earnings 77,160
 Dilutive effect stock options restricted stock
 diluted earnings 77,347 77,585 78,255
 Basic earnings share.
 Diluted earnings.


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


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


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


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


Prepaid Expenses Assets
 summary
 inventory in-transit paid received.
 September 2019 2018
 expenses $1. 8 $1. 6
.
 $7. $4.


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


Profit expenses interest taxes
 Grocery Snacks profit 2018 $724. 8 million increase $69. 4 million 11%. profits $21. 9 million lower. investments. higher input costs transportation expenses supply chain productivity. Frontera Thanasi Angie's Artisan Treats contributed $47. 4 million profit. Advertising promotion expenses decreased $19. 5 million. impacted $4. million HK Red $68. 3 million 2017 Chef. $11. 4 million expenses acquisitions divestitures $31. 4 million Wesson® oil $14. 1 million $23. 6 million restructuring plans.
 Refrigerated Frozen profit $479. 4 million increase $33. 6 million 8% 2017. Gross profits $3.2018 input costs transportation inflation increased sales productivity. acquisition Sandwich Bros. contributed $4. 6 million profit. Advertising promotion expenses decreased $23. 4 million. Refrigerated Frozen impacted $7. million recall. million. 2 million restructuring plans.
 International profit $86. 5 million loss $168. 9 million 2017. $235. 9 million goodwill intangible brand. profits $18. 6 million higher improved price/mix foreign exchange discontinuations-performing products. impacted $1. 5 million. 9 million restructuring
 Foodservice profit $121. 8 million increase $16. 7 million 16%. profits $13. 9 million higher inflation sales volumes input costs. impacted $1. 8 million restructuring.
 Commercial profit $202. 6 million. sold Spicetec Swank pre-tax gains $197. 4 million.Spicetec Swank Commercial segment Lamb Weston discontinued. no further operations.
 2018 2017
 Grocery Snacks $724. $655. 11%
 Refrigerated Frozen. 445. 8%
 International.
 Foodservice 121. 105. 16%
 Commercial 202.


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


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


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


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


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


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


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


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


TAXES
 December 22, 2017 U. S. enacted Tax Act Global Intangible Low-Tax Income) taxes foreign income excess foreign subsidiaries. GILTI period cost adjusted deferred tax assets foreign subsidiaries.
 complexity Securities Exchange Commission guidance accounting ASC. 118 measurement period one year enactment analyses accounting. 2018 recorded provisional amounts income tax effects law. 2019.
 SAB 118 measurement period ended December 22, 2018. change future legislation. Treasury regulations Internal Revenue Service state tax authorities.
 Income) operations income taxes components
 Years Ended September 30,
 2018
 United States $ (535) (51,049) (70,566)
 Foreign 52,881 65,935 59,484
 52,346 14,886 (11,082)


Stock Repurchase Program
 Board Directors approved common stock. September 17, 2018 February 15, 2019 expansions repurchase $24. 0 billion. May 31, 2019 $5. 8 billion repurchases.
 authorization expiration date working capital cash 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 dollar value shares
 Approximate
 March 1, 31, 2019. $52. $8,780.
 April 1, 30, 2019. $54. $7,198.
 May 1, 2019—May 31, 2019. $54. $5,848.
 112. $53.


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