May 31, federal loss carryforwards $ 732 million. 690 million expire 2020 2018. $42 million. state loss carryforwards $ 2. 2 billion 2020 2018. foreign net operating loss carryforwards $ 2. 0 billion. $ 1. 9 billion. $ 100 million expire 2020 2019. tax credit carryforwards $ 1. 1 billion. 734 million. $ 387 million expire 2020
 unrecognized tax benefits current non. changes
 May 31, 2019 $4. 2 billion $4. 2 billion $3. 4 billion unrecognized tax benefits tax rate. recognized interest penalties uncertain tax positions $312 million $127 million $125 million 2019 2018 2017. penalties accrued May 2019 $1. 3 billion $992 million.
.state authorities examining returns Oracle acquired entities 2017. issues deductibility royalty transfer pricing extraterritorial income exemptions domestic production activity foreign tax credits research development credits. May 31, 2019 unrecognized tax benefits decrease $516 million ($357 million. federal income tax returns examined 2010 no longer. state tax returns examined 2007.
 authorities non-U. S. jurisdictions examining returns tax benefits. May 31, 2019 unrecognized tax benefits decrease $186 million ($87 million transfer pricing.
 May
 2017
 unrecognized tax benefits June 1 $5,592 $4,919 $4,561
 Increases prior years 772 200 128
 Decreases (135) (65) (218)
 Increases current year 540 840 595
Settlements (153)
 Lapses statutes (202)
 adjustments
 tax benefits May 31 $6,348 $5,592


Subscription Revenue Segment
 fees Creative Cloud Digital Experience Document Cloud. revenue agreements.
 reportable segments Digital Media Experience Publishing. revenue 2019 2018 2017
 Percentage less than 1%
 product revenue on software licenses OEM royalty agreements. services support revenue consulting training maintenance support licensing enterprise Digital Experience services. technical developer support desktop products. maintenance support upgrades enhancements support recognized term arrangement.
 Digital Media $7,208. $5,857. $4,480. 23%
 Digital Experience 2,670. 1. 37%
 Publishing.
 Total subscription revenue $9,994. $7,922. $6,133. 26%


Income Share
 shares. Diluted dilutive stock equivalents options RSUs repurchase.
 table reconciles shares
 Fiscal Year Ended
 December 28, 2019 29, 2018 30, 2017
-average shares 74,994 73,482 72,292
 dilutive securities 2,292 1,700 1,947
-average diluted income 77,286 75,182 74,239


Contract Type fixed-price. cost plus time material.
 fixed-price sales price. cost-plus paid costs plus profit fixed variable funding. time-material paid direct labor hours fixed-price rates wages overhead expenses profit materials cost. net sales by contract type
 Ended September 30
 Fixed Price $ 1,452. $ 1,146. $ 1,036.
 44. 70.
 Total sales $1,496. $1,202. $1,107.


Obligations
 table summarizes obligations commitments December 27, 2019
 Interest debt instruments Term Loan ABL floating rates. borrowings $238. 1 million Term Loan zero ABL. interest Term Loan 5. 8% expense $13. 9 million. ABL 3. 7% expense $1. 6 million. Note 9.
 excludes cash taxes $14. 7 million contingent earn-out liabilities $5. 3 million lease payments distribution facility 2020.
 letters of credit $16. 6 million $15. 8 million December 27, 28, 2018. assets pledged collateral borrowings.
 Payments Due
 Less Year 1-3 Years 4-5 Years
 Inventory purchase commitments $53,413
 Indebtedness $406,644
lease obligations $4,597,392
 Pension liabilities,169
-term leases $197,359 $25,662,130
 $664,182 $83,097,325 $191,347


Operating Expenses
 increased $19. 1 million 2019 $12. 0 million 2018 60%.
 staffing scaling revenue growth.
 salaries wages benefits additional staff 2018 2019. hired commercial officer technology officer five salespeople human resources manager positions. 14 employees RMDY acquisition. 2018 added staff head data analytics sales controller. 10 employees CareSpeak acquisition. increased payroll expense. compensation expense increase 2020 lower.
 Professional fees increased uplisting Nasdaq underwritten offering compliance Sarbanes Oxley. switched auditors 2019 higher audit fees.
 Acquisition costs RMDY Health CareSpeak Communications. investment banker fees legal accounting due diligence audit valuation. RMDY Health higher.
 Board compensation decreased 2018 2019 five independent directors.
 cost consultants increased 2018 2019. quality certifications marketing.
 advertising promotion costs increased 2018 marketing activities. attendance rebranding.
 Expenses research development maintenance technology.
 Integration incentives increased.
 Depreciation amortization increased. CareSpeak. three months amortization. depreciation 2020 increase amortization RMDY intangibles.
 Office facility costs increased 2019. higher activity more employees increased expenses RMDY acquisition.
 Stock based compensation decreased $260,000 $2. 5 million 2018 to $2. 3 million 2019 performance awards.
 Salaries Wages Benefits $8,471,278 $5,823,057
 Professional Fees 850,086 362
 Acquisition Costs 799,623 607,670
 Board Compensation 137,000 144
 Investor Relations 105,639
 245,386
 Advertising Promotion 709,006 299
 Depreciation Amortization 1,282,786
,406,660
 Incentives 208,855
,493,250
 390,563
,872,841,505,713
 Compensation 2,260,298 2,520,852
 Expense,133


Contractual obligations
 December 31, 2019
 See. Leases Item 8 Annual Report.
 amounts purchase obligations services sales marketing programs
 estimate cash outflow settlement tax positions.
 maximum funding investment agreements. agreements withhold unpaid funds.
 fiscal year 2017 Item 7. Financial Condition Annual Report Form 10-K December 31, 2018.
 Payments due period
 2021 2022 2023 2024 2025
 Operating lease obligations 19,373 $77,095
 Purchase obligations $24,800 $8,129,367
 Liability uncertain tax positions $5
 Investment commitments 1,754 $1,959
 $45,927 $44,707


FINANCIAL STATEMENTS
 pension plan asset allocation December 31, 2019 2018 target allocation 2020
 liability-driven investment strategy equity fixed-income investments interest rate mismatch return liabilities. Risk tolerance liabilities funded status. portfolio equity fixed-income. private equity returns diversification. risk monitored quarterly reviews annual liability measurements asset/liability studies.
 Target Allocations Percentage Plan Assets December 31,
 Equity securities 13%
 Debt securities 83%
 Other 4%
 100%


. INDEBTEDNESS
 Company interest not due
. Secured loans deposits `39 crore March 31, 2019 obligations lease.
. balance April 1, 2018 unsecured loans bank overdraft `181 crore.
. Deposits lessee vendors contracts.
 Secured loans loans Total Indebtedness
 Indebtedness financial year
 Principal Amount 44  181  3  228
 Interest due not paid
 Interest accrued not due
 44 181 3 228
 Change Indebtedness financial year
 Addition
 Reduction
 end financial year
 Principal amount 39 43
 Interest due not paid
 Interest accrued not


. Goodwill Intangible Assets
 tables July 27, 28, 2018 changes
 foreign currency translation immaterial purchase accounting adjustments.
 Balance 28, Acquisitions Divestitures
 Americas $19,998 $1,240 $21,120
 EMEA 7,529,977
 APJC 4,179 274 4,432
 $31,706 $2,000


Assets combined schemes increased £177. £5,040. RHM increased £149. £4,333. Premier £28. £707. significant government bonds increased £444. RHM.
 Liabilities increased £121. £4,667. RHM £3,495. £65. Premier Foods £55. higher £1,171. lower discount rate. RPI inflation rate. 15% 25%.
 Pension Trustees commenced triennial valuation schemes 31 March 2019 5 April 2019. output
 net value future deficit payments £300–320m.
 Combined pensions schemes
 Assets
 Equities 179.
 Government bonds 1,490. 1,046.
 Corporate bonds.
 Property.
 Absolute return products 1,141. 1,323.
.
 Infrastructure funds.
 Swaps. 715.
Private equity 446.
.
 Assets 5,040. 4,863.
 Liabilities Discount. 45% 70%
 Inflation 3.


table intangible assets acquired estimated lives date acquisition.
 developed technology OpsGenie’s incident management alerting. customer relationships. trade name.
 Life
.
 Developed technology $35,600
 Customer relationships 48,600
 Trade name 3,700
 intangible assets amortization $87,900


Interest Expense
 long-term debt. table gross capitalized
 Years Ended December 31,
 2019 2018
 millions
 $2,093 2,230 1,559
 Capitalized
 $2,021 2,177 1,481


Quarterly Financial Data
 results June 30 2019 2018 amounts.
 March
 December
 September 30
 Net revenues $252,359 $250,864 $239,886
 Gross profit $138,946 $141,299 $132,071
 Net (loss income $(17,055 $(6,932) $7,199(9,065)
 income share.
 diluted.


FINANCIAL STATEMENTS
 18 Income Taxes
 tax
 Ended December 31,
. $(391) $1,635
. 10,666 12,538 7,150
 10,275 12,141 8,785
 Deferred
. 17,597
. 3,287
 Deferred 3,845 17,020
 income taxes $14,120 $11,571 $25,805


years December 2019 2018 2017 PSU SLO restricted stock.
 May 18, 2017 approved vesting policy 2017 2016 Ilham Kadri. pro-rata share vesting close date sale Diversey. awards subject performance metrics paid original timing.
 2014 Special PSU awards settled cash $1. 0 million December 31, 2017.
 includes expenses restricted stock awards.
 August 4, 2017 Equity Award Committee vesting condition long-term share-based compensation programs Diversey. pro-rata share vesting close date sale. December 2018 vesting Company Reinvent SEE Restructuring program. cumulative expense higher fair value awards approval.
 amounts include expense U. S. profit sharing contributions common stock not share-based incentive compensation.
 PSU Awards.
 2018.
2017 Three-year PSU 3. 9.
 COO Executive Hire Equity Awards.
 2016 PSU.
 President CEO Award.
 2015 PSU.
 2014 PSU.
.
-term share-based incentive compensation 26. 24. 32.
 share-based incentive compensation $ 34. 29. 48.
 tax benefits 5. 4. 11.


. INCOME TAXES
 tax rates jurisdictions. significant provisions Tax Act Note 1 U. S. Tax Cuts Jobs Act 2017. 2019 net benefit $389 million SAB 118 transition tax foreign subsidiary earnings deferred tax assets liabilities. taxes 2019 varied 21% U. rate foreign operations state taxes. research development tax credit settlements stock-based compensation Foreign Derived Intangible Income deduction GILTI reduction transition tax. taxes 2018 varied 21%. rate state taxes. research development tax credit settlements stock-based compensation. domestic production activity deduction. 2018 differed. earnings foreign operations state taxes. research development tax settlements stock-based compensation. domestic production activity deduction.
 geographical breakdown income before taxes
 Ended May 31

 Domestic $3,774,366,674
 Foreign 8,494 9,058,006
 $12,268 $12,424,680


ADVANCED ENERGY INDUSTRIES. FINANCIAL STATEMENTS share
 Deferred tax assets liabilities recognized future tax consequences tax rates. assets liabilities
 $32. 7 million $40. 2 million net deferred tax asset December 31, 2019 2018 $42. 7 million $47. 1 million non-current deferred tax asset $10. million $7. million long-term liability.
 valuation allowance $16. 0 million. deferred tax assets federal capital loss carryforwards. remaining allowance $60. 2 million Austria Germany Hong Kong Switzerland. evidence. valuation allowance balance increase $45. 3 million. due acquired Artesyn positions activity offset foreign exchange movements
 Deferred tax assets
 Stock compensation $1,757 $1,337
loss tax 86,879 38,622
 Pension obligation 13,473 3
 inventory 3,217
 Deferred revenue 3,305
 bonuses commissions
 lease liabilities 23,451
 Deferred tax 180,939 93,685
 104,733 62,761
 41,549 17,723
 Unremitted earnings 4,740
 lease-use 22,774
 liabilities 72,029
,704 $40,242


includes property plant.
 January 1 2019 Company adopted lease accounting right-of-use. Note 11.
 depreciation charge $785 million $727 million $592 million 2019 2018 2017.
 acquisition Norstel property plant equipment $11 million.
 December 31, 2019 Gross Cost Accumulated Depreciation
 78
 Buildings
 Facilities improvements 3,193
 Machinery equipment 15,336 2,546
 R&D equipment
 lease right-of-use assets 266
 Other tangible assets
 Construction progress
 20,552 4,007
 2018 Gross Cost Accumulated Depreciation
 79
 Buildings
 Facilities improvements 3,170 (2
 Machinery 14,882
 Construction
 19,739 3


FINANCIAL STATEMENTS
 prepaid cost domestic foreign pension plans classified Balance Sheets December 31
. Non.
 Prepaid pension asset $62,082 $54,100
 Accrued expenses liabilities
 Long-term pension obligations (1,045) (1,214)
 Net prepaid cost $60,937 $53,008


REPURCHASE COMPANY
 repurchased 75,113 74,880 shares 2019 2018 $7. 5 million $7. 7 million. shares recorded treasury stock cost. September 2019 34,846 shares authorized repurchase open market approved Board Directors. October 2019 renewed repurchase authorization 75,000 shares.
 fourth quarter 2019 repurchased $4. 3 million. summarizes repurchases quarterly period September 30, 2019
 October 2019 Board Directors authorized purchases
 75,000 shares open market. Management
 pricing timing
.
 Purchased Average Price Paid per Share Purchased Publicly Announced Plans Programs Maximum Number Purchased Plans Programs
 July 1-31, 2019. 74,706
August 2019 39,769 107. 34,937
 September 30. 51 34,846
 40,153.


Dividends
 Cal-Maine pays Common quarterly net income equal one-third (1/3) quarterly income. Dividends paid 60th day last quarter except fourth fiscal quarter. 65th day after. Dividends payable 15th day following record date. income dividend until. Dividends payable zero June 1, 2019 $17. 1 million at June 2, 2018. cumulative losses dividend $19. 8 million.
 *Dividends per common share 1/3 Net income (loss) Cal-Maine Foods. common stock.
 Net income (loss)-Maine Foods. $(19,761) $71,767 $54,229 $125,932
 Cumulative losses recovered prior dividend (20,488 (74,653)
 Net income (loss.dividend $(19,761) $51,279
 1/3 net income Cal-Maine Foods.
 stock 43,894
 Class A stock 4,800
 48,694
 Dividends common share.


. FINANCIAL EXPENSE
 2018 Cogeco Peer 1 discontinued operations.
 2019 expense decreased. 4%
 reimbursement Senior Secured Notes Series reimbursements $65 million US$35 million Canadian Revolving Facility US$328 million third quarter Cogeco 1
 reimbursement US$400 million Senior Unsecured Notes $6. million redemption premium write-off unamortized deferred transaction costs $2. 5 million higher interest First Lien Credit Facilities MetroCast appreciation US dollar.
 August
 Interest long-term debt 176,798.
 foreign exchange gains.
 Amortization deferred transaction costs 1,836.
 Capitalized borrowing costs.
.
.


Deferred Income Tax Assets Liabilities
 Company’s net deferred tax assets liabilities 2019 2018
 net change valuation allowance $0. 5 million $0. 4 million. realizability. realization future taxable income. future taxable income planning strategies. tax assets realized exception foreign deferred tax assets Mitek Systems B. V.
 net operating loss carryforwards of $29. 5 million federal income tax $2. 1 million generated carried forward indefinitely under Tax Cuts Jobs Act. remaining net loss $27. 4 million in2032. net operating losses for state $29. 4 million in2028. federal research development credit carryforwards $2. 8 million. in2027. California research development credit carryforwards $2. 4 million.
382 383 Revenue Code 1986 limit tax carryforwards. Section 382/383 analysis. future.
 Deferred tax assets
 Stock-based compensation $2,646 $3,067
 operating loss carryforwards 9,419
 Research credit carryforwards 5,570 3,890
 Intangibles
 deferred assets 17,783 15,879
 liabilities
 Foreign deferred liabilities (5,811)
 deferred tax asset 11,972,666
 Valuation allowance
 $11,041 $7,194


Selling administrative
 salaries personnel professional fees insurance business development selling expenses.
 table shows 2019 2018 2017:
 2019 increased higher employee compensation lower accretion collection recycling liability higher professional fees.
 Year Ended
 2019 2018 2017
 Selling administrative $205,471 $176,857 $202,699 $28,614 16% $(25,842)
 net sales. 7%. 9%.


. Computation Basic/Diluted Earnings Common Share
 table diluted earnings share millions
 vesting employee-related restricted stock units options performance measures. shares included dilutive shares measures met reporting period. potential shares not included diluted earnings anti-dilutive.
 Years Ended December 31,
 Consolidated net income $1,503 $1,848
 basic earnings 767
 dilutive stock options awards treasury method
 diluted earnings
 Basic earnings common share $1. $2.
 Diluted earnings $1. 95 $2.


Teekay LNG
 compares results equity income calendar-ship-days 2019
 Includes indirect gas carriers conventional tankers. results 18 Financial Statements 3.-ship-days consolidated vessels.
 Income increased $299. 3 million 2019 $148. 6 million 2018
 increase $53. 1 million write-downs three multi-gas Teide European African Toledo Alexander write-down increase $48. 6 million deliveries Sean Spirit Bahrain Spirit Yamal Spirit
 increase $33. 2 million higher charter rates Torben Spirit multi-gas carriers $12. 3 million deliveries Magdala Myrina Megara $8. 9 million reclassification Awilco vessels leases
 increase $6. million reduction legal fees.2018 fees tax dispute LNG carriers Teekay LNG claims. Skaugen damages losses seven carriers
 $3. 2 million Polar Spirit off-hire 35 days
 $9. 1 million Madrid Spirit Galicia Spirit off-hire 82 38 2019 depreciation Catalunya Spirit off-hire 28 days
 decrease $3. 5 million operating expenses declining revenue Tangguh Sago Tangguh Hiri.
 Equity income Teekay gas carriers $58. 8 million 2019 $53. 5 million 2018. increase $23. 3 million Pan Americas Europe Africa Rudolf Samoylovich Nikolay Yevgenov Vladimir Voronin Georgiy Ushakov Yakov Gakkel
 $8.8 million dry-dock revenue Meridian Spirit higher rates Arwa Spirit Marib Spirit higher fleet utilization lower interest expense refinancing Teekay LNG 52%
 increase $7. 9 million higher charter rates Teekay LNG 50% Exmar LPG
 decrease $17. 7 million changes derivative instruments unrealized losses 2019 decrease $10. 8 million Bahrain Spirit storage unit LNG 2018 income decrease $5. 7 million Teekay LNG 50% venture Exmar.
 Year Ended December 31,
.
 Revenues 601,256
 Voyage expenses (21,387
 Vessel operating expenses
 Time-charter hire
 Depreciation amortization
 General administrative expenses
 Write-down sale vessels
,315)
 vessel 299,253 148,599
 Gas Carriers 300,520 169,918
 Conventional Tankers (21
,253
 58,819 53,546
-Ship-Days
 11,650
 Conventional Tankers


8. Financial Statement
 Accounts Receivable
 March 31,
 2019 2018
 accounts $875. $557.
 6.
 accounts 882.
 doubtful accounts 2.
 $880. $563.


value option ESPP shares estimated Black-Scholes pricing model
 assumptions
 Company issued 266 231 183 2019 2018 2017
 price share $86. $77. $73. $3,531 unamortized compensation cost
 employee purchases ESPP. 37 years.
 Expected life.
 Volatility 36% - 37% 33% - 40% 29% - 37%
 Risk-free interest rate. 58. 43%.
 Dividend yield


engaged with Dell transactions resulted in costs
 purchase lease products services from Dell.
 Dell collaborate technology projects pay Dell for services.
 regions contract with Dell subsidiaries for support services personnel. costs incurred Dell charged with mark-up. costs included statements salaries benefits travel occupancy expenses. Dell incurs administrative costs.
 Dell files indirect tax return value added taxes indirect taxes. remit taxes to Dell remits tax payment foreign governments.
 invoice end users Dell for services. Cash collected remitted to Dell.
 enter agency arrangements Dell sell subscriptions services contracts.
 payments
 includes indirect taxes.
 purchase Dell products through channel partners. not significant.
 Year Ended
 January 31, 2020 February 1, 2019 February 2, 2018
$242 $200
 Dell subsidiary costs 119 145 212


Base Salary. NEO determined responsibilities experience skills performance future contribution Peer Group competitive market factors. Committee reviews salary annually performance promotion change position. Merit-based increases recommended by CEO based assessment.
 Compensation Committee reviews compensation levels fiscal year adjusts market data executive achievement. reviewed base salaries executive officers 2019 increased salaries CEO CFO contributions 2018 AvComm and Wireless acquisition. Staley’s salary increased contributions 2019 integration AvComm Wireless sales. Committee increase salaries other NEOs existing base salaries appropriate.
 Actual base salaries 2019 “Salary” column Fiscal 2019 Summary Compensation Table page 44.
 Fiscal Year 2018 2019
 Named Executive Officer Base Salary Percentage Increase
 Oleg Khaykin $750,000  $800,000.
 Maletira $425,000.
 McNab $435,000
 Scrivanich
 Staley $360,000.


Income/Expense
 table 2019 2018:
 decrease income $0. 3 mil.
 2019 2018 Increase
 thousands
 Interest expense $(99) $(85) $(14)
 Interest income 323 303
 Foreign exchange gain 157 263 (106)
 Other income net 3  297 (294)
 $384 $495 $(111)


SELLING GENERAL ADMINISTRATIVE EXPENSES
 Payroll overhead increased $1. 2 million 3. 1% salary increases. percentage net sales payroll 2. 8% 2. 5% 2019 2018. delivery expense 3. 9% 3. 5%. Other expenses decreased $5. 2 million 16. 7% reduced legal expense settlement antitrust claims. special shareholders meeting July 2018. Insurance expense flat liability premiums. Selling expenses $174. 8 million $4. 5 million 2. 5%. increased 11. 2018 to 12. 8% 2019. $174. 8 million $4. 5 million 2. 5%. increased 11. 9% to 12. 8%.
 Payroll overhead increased $1. 2 million 3. 1% annual salary increases. percentage net sales 2. 8% 2. 5%. delivery expense 3. 9%.5% 2019 2018. expenses decreased $5. 2 million. 7% reduced legal expense antitrust claims. 2018 special shareholders meeting July 2018. Insurance expense flat liability premiums. Payroll overhead increased $1. 2 million 3. 1% salary increases. sales payroll overhead 2. 8% 2. 5%. delivery expense 3. 3. 5%. Other expenses decreased $5. 2 million 16. 7% reduced legal expense settlement antitrust. special shareholders meeting 2018. Insurance expense flat liability. Payroll overhead increased $1. 2 million 3. 1% annual salary increases. sales payroll overhead 2. 8% 2. 5% 2019. delivery expense 3. 9% 3. 5%. expenses decreased $5. 2 million 16. 7% reduced legal expense settlement antitrust. special shareholders meeting.Insurance expense flat liability claims offset increases premiums 2019.
 SG&A expense $42. 3 million thirteen weeks June 1 2019 decrease $7. 4 million. 8%
 $49. million 2018. decrease specialty egg expense
 advertising promotions
 franchise expense. Payroll overhead decreased $526,000. 2%
 bonus accruals. Stock compensation expense
 dependent closing prices
 grant dates. average grant date value June 1 2019
 $43. 20. 1% increase $42. 30 June 2 2018. Other expenses decreased 27. 6% from $8. million
 to $6. 1 million
 insurance claims legal expenses.
 Specialty egg $53,263 $54,300.
 Delivery expense.
 Payroll overhead 38,343 37.
3,619 3,467.
 expenses 25,975 31,181,206.
 $174,795 $179,316.


table EBITDA Adjusted EBITDA net loss.
 store marketing allowance $1,000 non-capitalized freight costs Freshpet Fridge replacements. marketing spend.
 operating costs manufacturing Freshpet Kitchens expansion 2016 lines.
 value common stock warrants. converted common stock September 2017.
 fees secondary public offerings
 Chief Executive Officer’s separation agreement leadership transition costs.
 securities lawsuits
 December
 Net loss $(1,383) $(5,361 $(4,262)
 Depreciation amortization 15,921 14,068 12,692,887
 Interest expense 991
 Income tax expense
 EBITDA $15,673 $9,080 $9,414
 Loss disposal equipment 787 142 104 190
compensation 7,834 6,808 4,438
 Launch 4,563 3,540 2,813 2,626
 start-up expenses 1,628
 Warrant valuation 335
 Secondary offering 302 362
 Leadership transition 1,291
 Litigation expense
 Adjusted EBITDA $29,159 $20,280 $17,565 $17,654 $11,110
 Net Sales.


Global Financing Financial
 Includes deferred costs eliminated
 results.
 intercompany mark-up products eliminated.
 eliminated Balance Sheet.
 leveraged Global Financing debt.
 December 31, 2019 assets IT-related 62 percent portfolio investment-grade clients no direct exposure increase 7 points. based credit ratings.
 mitigation actions credit risk insurance financial guarantees nonrecourse borrowings transfers receivables
 equipment. investment-grade content 67 percent decrease 3 points year.
 December 31
 Cash equivalents $ 1,697 $ 1,833
 investment sales financing leases 6,224
 Equipment
 loans 12,884
 financing assets 19,346 20,170
 Commercial financing receivables
 assets $29,568 $41,320
 Debt 24,727 31,227
equity 2,749


table cash flows
 flows influenced growth billing collection terms investments infrastructure. cash flows vary.
 $115. 5 million 2019 $90. 3 million 2018. increase improved profitability collections working capital changes.
 December
 2018 2017
 Net cash $115,549 $90,253 $67,510
 investing (97,727) (20,876) (36,666)
 financing 14,775 (278,016) 276,852


 Corporation offers employees Incentive Share Unit Plan.
 receive ISUs voting shares after three years.
 based on dollar value average closing stock price previous twelve August 31. trust created shares price fluctuation. shares purchased held until vested.
 trust consolidated financial statements acquired shares.
 ISUs granted outstanding at August 31
 compensation expense $2,046,000 ($2,461,000 2018) year August 31, 2019.
 2019
 Outstanding 105,475 101,538
 Granted 37,600 47,900
 Distributed (44,470) (35,892)
 Cancelled (26,780 (8,071)
 end 71,825 105,475


. Employee Benefit
 Company plans French German employees. acquired Atmel Microsemi unfunded. benefits local requirements. Benefits based service compensation. Pension liabilities charges assumptions updated discount rates salary increases turnover mortality rates. French pension plan termination benefits retirement one to five months salary. German plan defined benefit payouts employees retirement.
 net pension expense
 Interest costs amortization actuarial losses recorded.
 Service costs.
 Interest costs.
 Amortization actuarial loss.
.
 Net pension period cost.


 increased 16% $670. 7 million 2018 $578. 6 million 2017 higher North America U. K. lower Australia. higher U. S. due New York New Fare Payment System contract 2017. Increased development service contracts London increased sales. impacted U. K. Australia exchange rates. sales $12. 4 million strengthening British Pound.
 Amortization Purchased Intangibles $5. 2 million 2018 $5. 7 million 2017.
 Income increased 52% 2018 $60. 4 million $39. 8 million 2017. higher development services North America U. K. efficiencies R&D spending. $6. 4 million development expenses contract New York Metropolitan Transit Authority cost sales. system cost software. operating income $4. 2 million. average exchange rates. operating income $2. 2 million 2018 2017.
 Adjusted EBITDA increased 50% $73. million 2018 $48. million 2017 due operating income. driven factors excluding depreciation amortization.
 2018 2017
 Sales $. $. 16 %
 Operating income 60. 39. 52
 Adjusted EBITDA 73. 48.


 assumptions post benefit obligations net cost DB pension OPEB. long-term.
 Cost living indexation rate DB pension plans
 average duration post-employment benefit obligation 14 years.
 trend rates healthcare costs increase medication. 5% 2019. 20 years dental benefits 4% hospital benefits. 7% other healthcare benefits 4%
 healthcare plans.
 PENSION OPEB PLANS
 Post-employment benefit obligations
 Discount rate.
 compensation increase.
 Cost living indexation rate.
 Life expectancy 65.


Property equipment
 Depreciation. million. 6 million 2019 2018.
 Amortization software website $157,000 $247,000.
 Computer hardware software $3,427 $3,353
 Office furniture 8,148
 software 4,390
 Leasehold improvements 6,247
 depreciation amortization,230
 $2,982 $3,790


Company recognizes compensation costs four years. Forfeitures accounted.
 stock-based compensation cost less $0. 8 million 2019 2018 2017.
 $7. 8 million unrecognized stock options 2. years $41. 3 million unvested RSUs. years. modifications cancellations accelerate increase cancel unearned compensation expense.
 table compensation expense stock options RSUs ESPP consolidated statements operations
 December
 revenue $2,843 $2,435 $1
 Research development
 Sales marketing 9,069
 General administrative 10
 Total $29,137 $26,461 $18,969


. Non-current assets deferred tax assets
 recognised deductible differences future taxable amounts. Calculation assumptions management judgments.
 deferred tax asset recorded potential benefit probable. Group recognised deferred tax asset $79. 3m assets transferred USA. probable future taxable income USA temporary differences.
 Deferred tax asset temporary differences
 Amounts profit loss
 Tax losses 2,068
 Property plant equipment
 Employee benefits
 entitlements
 Intellectual property
 Revenue advance
 Provisions
 Foreign currency translation
 Tax credits
 Deferred rent
 Amounts equity
 Transaction costs share issue
 Deferred tax asset
 recovered within 12 months
 after 12 months,285
balance 82,120
 profit loss 2,440
 Additions 314
 Translation differences
 Closing 84,873


. business accounting policies
 restricted stock EPS diluted EPS treasury stock method.
 diluted shares
 2018 2017
 45,542,315 45,280,161 44,855,263
 stock options 32,222 33,134
 restricted stock 505,858,659 297,406
 46,080,395 45,780,954 45,184,203


AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
. QUARTERLY FINANCIAL DATA
 December 31, 2019 2018
 Operating expenses Depreciation amortization accretion Selling administrative development.
 Months
 Operating revenues $1,741. $1,780. $1,785. $2,131. $7,440.
 Costs operations 519. 560. 556. 2,177.
 Operating income 402. 546. 388. 1,905.
 280. 314. 377. 292. 1,264.
 American Tower Corporation 285. 306. 277. 1,236.
 Dividends.
 income American Tower Corporation 275. 306. 277. 1,227.
 income share Corporation.
income American Tower Corporation. 63. 69. 83. 62


. Transactions Affiliate
 transactions Kyocera agreements sales terms
 pricing. table.
 Kyocera notified 2016 market
 products sales force
. 2017 2018 2019 sales Kyocera $318,928 $296,316 $18,951
 profit $17,076 $18,177 $3,300
 Fiscal Ended March
 2019
 Sales
 Product equipment sales affliates $30,303 $26,069 $10,436
 resale inventories materials supplies services 303,793 256,660 9,399
 Dividends 52,983 54,810


unused-term lines$77,658$64,169 million December 2018 2019.
 Unsecured bank loans $7,780,552
 loans 5,323,256 3,935,006
 $13,103,808 $12,015,206


 Weighted-average benefit cost projected obligation fiscal years 2019 2018 2017
 expected return plan assets based historical return experience future long-term performance investment mix.
 discount rate cash flows future benefits present value. market rate high-quality fixed income investments cash outflow retirement benefits. assumptions include demographic factors retirement mortality turnover.
 Net periodic benefit cost
 Expected long-term return 3. 6%. 8%.
 compensation.
.
 Projected benefit obligation
 long-term return. 6%.
 compensation.
.


LIQUIDITY CAPITAL RESOURCES
 primary cash sale software services. operating costs employee compensation. stock repurchase growth initiatives.
 January 31, 2019 liquidity cash equivalents securities $953. 6 million net accounts receivable $474. 3 million
 December 17, 2018 Credit Agreement unsecured revolving loan $650. million option $350. 0 million. $400. million Amended Credit Agreement. maturity December 2023. January 31, 2019 no outstanding borrowings. March 25, 2019. Part II 8 Arrangements Financial Statements. credit facility.
 December 17, 2018 Term Loan Agreement delayed draw loan $500. 0 million. December 19, 2018 borrowed $500. 0 million loan acquisition PlanGrid.Part II Item 8 8 Arrangements Financial Statements Term Loan Agreement Part II Item 8 Note 6 PlanGrid acquisition.
 January 31, 2019 $1. 6 billion Notes outstanding. Part II Item 8 Note 8 Arrangements.
 cash equivalents institutions. Citigroup. Citibank. affiliate Citigroup $650. 0 million line credit.
 Long-term cash requirements repayment debt common stock repurchases acquisition businesses capital expenditures
 cash equivalents securities locations amounts outside United States. January 31, 2019 52% cash equivalents securities foreign jurisdictions. foreign cash exchange restrictions regulatory restrictions tax costs. Tax Act tax eliminates U. taxes distributions. earnings foreign jurisdictions. little. taxes. review capital structure financing alternatives strategies liquidity.expect liquidity needs cash balances flows borrowings.
 risks. balances cash flows credit facility working capital resource expenditure requirements 12 months.
 revenue earnings cash flows receivables payables foreign currency currency contracts risk management. Part II 7A Market.
 Net cash $377. 1 million 2019 $371. 8 million non-cash expenses loss $80. 8 million $86. 1 million assets liabilities.
 deferred revenue $1,955. million to $2,091. 4 million. decreases accounts payable accrued liabilities.
 Net cash investing $710. 4 million due purchases securities. outflows offset sales maturities securities.
 short-term investment portfolio value $67. 6 million cost basis $62. 8 million. $60.3 million trading securities mutual funds Deferred Compensation Plan Note 7 Financial Statements $7. 3 million shortterm securities.
 Net cash financing $151. 9 million 2019 due debt discount stock. offset repurchases common stock taxes equity.
 Fiscal year January 31,
 operating activities $377. $169.
 investing (710. 506. 272.
 financing 151. (656. (578.


AMERICAN TOWER CORPORATION
 STATEMENTS
 amounts millions
 December 31, 2019 federal state loss carryforwards income. NOLs expire
 December
 2020 2024 $222. $11.
 2025 2029 141.
 2030 2034.
 2035 2039. 159.
 22. 853.
 $175. $708. $990.


 2019 retail property structural changes low consumer confidence CVAs administrations. impacted revenue rental income property valuations rental income down. 1 property revaluation deficit £1,979. 7 million.
 Fixing balance sheet priority uncertainty options alternative capital structures disposals.
 reconciliation IFRS earnings page 161.
 net income profit non-controlling.
 losses disposal subsidiaries gains sale write-down goodwill investment loan administration expenses tax.
 IFRS loss intu properties increased £818. 7 million £1,950. 9 million IFRS loss per share 60. 8 pence. earnings decreased £65. 9 million £127. 2 million reduction EPS 4. 9 pence. key drivers.
 Net rental income.
 Administration expenses.. 3. 5
 finance costs (224. (220. (4
 Tax profit (17. (16.
 8. 7.
 127. 193. (65.
 Revaluation investment development property (1,979. (1,405. (574.
 (75. 86. (161.
 finance (37. (28. (9.
 non-underlying 14. 21. (7.
 IFRS loss
 properties (1,950.,132. (818.
 loss share (145. (60.
 EPS 9. 14.


. Reconciliation Financial Statements
 negative swing 2018 gain € 900 million transfer Trust. € 655 million sale OSRAM Licht shares. outweighed 2019 asset retirement obligation. Severance charges € 99 million 159 million 2018).
 Real Estate Services
 Corporate items
 pension expense
 Amortization intangible assets (1,133
 Eliminations Corporate Treasury reconciling items
 Reconciliation Statements (2,028),135


non-current assets
 December 31, 2019
 Right use $33,014
 Deferred costs 3,297
 Deposits 2,338
,197
 41,846 $8,620


components provision income taxes
 Company incurred losses recorded full valuation allowance against US UK New Zealand Hong Kong Brazil deferred tax assets provision state. foreign subsidiaries branches provide services compensated cost-plus incurred liabilities foreign taxes.
 Ended December 31,
 2019 2018 2017
 Current income tax provision
 Federal
 State 225
 Foreign 2,467 2,514 1,580
 2,692 2,718 1,694
 Deferred income tax benefit
 State
 $2,690 $2,595 $1,746


Income Equity Investees
 Marine Services Income 2019 decreased $14. 1 million to $5. 6 million from $19. 7 million 2018. decrease driven HMN lower revenues projects.
 equity investment HMN contributed $5. million $12. 7 million income. losses SBSS legal disputes lower vessel utilization.
 Life Sciences Loss equity investees 2019 decreased $0. 6 million to $3. 4 million from $4. million 2018. due lower equity losses investment MediBeacon timing clinical trials revenue licensing agreement.
 Construction.
.
 Life.
.
 Income equity investees.


service RSUs calculated discounted dividends.
 market PRSUs 2019 2018 2017 calculated Monte Carlo simulation model. subjective assumptions stock price volatility estimated life
 June 30, 2019 $271. million unrecognized compensation expense unvested RSUs. years.
 volatility 32. 65% 34. 07% 27. 48%
 Risk-free interest rate 2. 52%. 35%.
 term.
 Dividend yield. 49%.


 segments components enterprise revenues expenses separate financial information results reviewed chief.
 Company revenue electronics design production product management services. performance allocates resources. segments EMS DMS reportable. organized economic profiles manufacturing capabilities market strategy margins return capital risk profiles.
 EMS IT design engineering electronics large manufacturing infrastructure markets. high volume. larger quantities customers automotive transportation capital equipment cloud computing storage defense aerospace industrial energy networking telecommunications print retail smart home appliances.
 DMS engineering solutions material sciences technologies healthcare. customers devices accessories healthcare mobility packaging industries.
 Net revenue attributed. performance evaluated pre-tax operating contribution income. net revenue cost selling expenses research development.income amortization stock compensation restructuring acquisition loss disposal settlement impairment goodwill business interruption discontinued operations sale interest tax noncontrolling interests.
 segment assets accounts receivable inventories customer property plant equipment intangible assets amortization goodwill. non assets reviewed. Transactions segments recorded third parties.
 tables segment information
 Fiscal Year Ended August
 Net revenue
 $15,430,529 $12,268,600 $11,077,622
 $25,282,320 $22,095,416 $19,063,121


Discontinued Operations
 December 2015, engineering manufacturing sales solar inverter line. reflected (loss) discontinued operations net Consolidated Statements Operations.
 extended inverter warranties deferred revenue Balance Sheets. costs reflected Sales Cost. Extended warranties no longer offered.
 ADVANCED ENERGY INDUSTRIES. CONSOLIDATED FINANCIAL STATEMENTS
 items (loss) discontinued operations taxes
 Years Ended December 31,
 Sales
 Cost sales (901)
 operating expense 1,022
 income (loss) operations (121)
 Other income 10,895
 before income taxes 10,774
 Provision) income taxes 2,294
 net taxes $8,480


. Segment Information
 Company reports financial performance ACI On Premise ACI On Demand analyzes Segment Adjusted EBITDA profitability.
 interim Chief Executive Officer chief operating decision. senior management consolidated financial information allocation resources results revenues Segment Adjusted EBITDA.
 ACI On Premise serves customers site cloud. software solutions larger system. require control flexibility resources expertise.
 ACI On Demand serves banks merchants billers. solutions maintained delivered cloud singletenant multi-tenant.
 Revenue attributed segments product sold mechanism delivery. Expenses attributed direct costs labor costs allocated. Allocated costs marketing sales information technology facilities. allocates depreciation costs.
 Segment Adjusted EBITDA CODM resources performance ASC 280 Segment Reporting.Adjusted EBITDA before interest depreciation amortization stock-based compensation income.
 Corporate unallocated expenses. human resources finance legal accounting merger. December 2017 $46. 7 million legal judgment.
 financial data segments
 Assets not allocated CODM.
 Revenues
 Premise $579,334 $576,755 $598,590
 On Demand 678,960
 revenue $1,258,294 $1,009,780 $1,024,191
 Adjusted EBITDA
 On Premise 321,305 323,902 347,094
 On Demand 66,501
 Depreciation amortization (122,569 (97,350
 Stock-based compensation (36,763,360
 Corporate unallocated expenses (104,718 (92,296 (144,715
Interest (52,066 (30,388,449
 (3,724
 taxes 72,210 91,799 43,572
 Premise 11,992 13,094
 Demand 34,395
 Corporate 76,182 54,175
 122,569 97,350 102,224
 Premise 7,651 4,348
 Demand 7,995
 Corporate 21,117 11,674
 $36,763 $20,360,683


 sales increased 23% $207. million 2018 $168. 9 million 2017. orders satellite communications networking. Businesses acquired 2018 sales $5. 6 million $1. 5 million.
 Amortization Purchased Intangibles $20. 8 million 2018 $23. 6 million 2017. million.
 loss $0. 1 million 2018 $9. 3 million 2017. profits C2ISR. amortization intangibles decreased $20. 8 million 2018 $23. million 2017. increased R&D expenditures $10. 8 million new antenna technologies. Businesses acquired losses $4. 7 million $2. 9 million 2017. transaction costs $1. 6 million $1. 8 million.
 increased 82% $26. 2 million 2018 $14. 4 million 2017.
 due amortization expense costs
.

 millions
 $ 207. 168. 23 %
 Operating loss.
 Adjusted EBITDA 26. 14.


reconciliation unrecognized tax benefits
 liability December 31, 2019 2018 2017 includes $9. 6 million $0. 4 million $0. 2 million annual tax rate. liabilities interest penalties included accounts payable accrued expenses consolidated balance sheet. Interest not material years.
 2019 recognized increase unrecognized tax benefits $7. 7 million research development tax credits 2016-2018 $1. 8 million 2019.
 subject taxes. state foreign jurisdictions. Tax statutes regulations interpretation judgment. no subject. federal. income tax examinations before 2015. state tax before 2014. unrecognized tax benefits decrease $1. 9 million amended research development credits.
 December 31,
 unrecognized tax benefits beginning year $490 $220
 Increases
statute
 tax benefits year $9,635 $220


11 RECEIVABLES
 No past due impaired.
 carrying amount approximation fair value short-term. note 21 fair value.
 Partners commercial managements.
 financial instruments.
 Tax receivables.
.
 Balance 31 December.


shareholdings
 voting rights determined UK Listing Disclosure Transparency Rules 3% voting rights shares 28th February 2020 31st December 2019. no Controlling Founder Shareholders.
.
 shareholdings Capital Group Companies. 6,584,006.
 Sun Life Financial. 5,566,823.,481,561.
 BlackRock. 4,624,204.,790.
 Fiera Capital Corporation 4,764,251. 4,768,688.
 APG Groep. 4,068,000.
 Vanguard Group. 2,569,081. 2,637,287.