 employees granted time performance market-based stock units. time-based graded three years. performance-based three years 150%,. earnings per share. three years 200%,. market tied shareholder return performance Standard and Poor’s (S&P) Super Composite Technology Hardware Equipment Index.
 October 6 2017 Compensation Committee approved vesting criteria performance-based stock units 2015. 0. 8 million awards vested quarter 2018 $24. 9 million stock-based compensation expense.
 table summarizes restricted stock units activity August 31, 2018 August 31, 2019
 maximum. 2019 awarded 1. 6 million time 0. 4 million performance. 4 million market performance criteria.
 Average Grant-Date Value
 August 31, 2018 8,352,307 $24.

 Shares 3,144,205.
,983,411).
 forfeited (2,347,628).
 7,165,473 $26.


. Disclosure Contractual Obligations
 obligations cash outlays December 31, 2019.
 domestic bonds paid maturity.
 lease payments machineries equipment office land Hsinchu Science Park Tainan Science Park Pasir Ris Wafer.
 purchase raw materials construction contracts intellectual properties royalties technology license agreements. not recorded balance 2019.
 guarantee deposits financial liability repurchase investment. fixed contract amounts.
 Payments Due Period
 1 1-3 Years 4-5 5 Years
 Long-term
 Unsecured bonds 39,940 20,660
 Loans 51,058 18,316
 Lease 7,128
 Purchase 38,878 29,832
 long-term obligations(4) 21,411
158,415 69,650 47 33,225


. Investment Unconsolidated Entities
 equity. Red River Valley Egg Farm cage-free egg Bogota Texas. Specialty Eggs owns's Best Georgia South Carolina western North Carolina eastern Alabama. Southwest Specialty Eggs Arizona southern California Clark County Nevada. 2019 owns 50% Red River Specialty Eggs Southwest Specialty Eggs. Equity investments $60. 7 million $64. 2 million June 1 2019 2, 2018.
 income $4. 8 million $3. 5 million $1. 4 million Consolidated Statements Operations 2019 2018 2017.
 financial information joint ventures
 member Eggland’s Best. investment allocations. cost. value 2019 2018 $2. 6 million $2. 6 million.

 sales $112,396 $107,705,072
 income 9,490 7,071
 assets 128,470,056
 liabilities,600,859
 equity 120,870 125


Intangible assets
 RIGHTS LICENCES
 licences NEXTDC indefinite useful life cost less impairment losses review annually.
 licences cost less accumulated amortisation losses. recognised estimated life. reviewed.
 INTERNALLY GENERATED
 capitalised cost less amortisation. two to three years. impairment reviewed financial year.
 SOFTWARE UNDER DEVELOPMENT
 Costs developing products acquiring software licenses capitalised. employee costs.
 Assets construction recognised technical feasibility use.
 2019 2018
 Rights licences
 Internally generated software 7,381 6,385
 Software under development 16,284 6,509
 Total intangible assets 23,678 12,907


Share payments $62,028,117 $57,710,434.
 variables value performance rights.
 Grant offer acceptance.
 expected volatility historical.
 Grant date 30 Nov 2018 31 Oct 2017
 start 1 Jul 2018
 Exercise 1 Jul 2021 1 Jul 2020
 15. 16.
 dividend yield 4.
 Risk-free interest rate.
 average value grant date $24. $20


table 60-month backlog estimate December September June 30 March December 31, 2018 millions. backlog estimate includes $1. 5 billion acquisition Speedpay May 9, 2019. amounts reflect foreign currency exchange rates. non-GAAP measure comparability periods. information financial performance.
 Estimates future results require judgment based assumptions. customers renegotiate terminate contracts mergers financial economic conditions. delays development renewal rates amounts differ. foreign currency exchange rates impact revenue. no backlog estimates revenues 60-month period. Committed Backlog Renewal Backlog estimates operating metrics not internal review controls.
 December September 30 June 30 March 31, December 2018
 Premise $1,977 $1,925 $1,880 $1,861 $1,875
Demand 3,855,756 3,813 2,290
 $5,832,151
 December September June March December
 $2,168,003,105,734 $1,832
 3,664 3,678 3,588 2,417
 $5,832 $5,681,151


Proofpoint. Financial Statements share amounts
 unvested shares employee ObserveIT exchanged $532 deferred cash consideration. restricted cash balance sheet. $485 post-combination expense not included purchase price. subject forfeiture employment terminates expensed compensation three-year vesting period.
 Discounted Cash Flow Method acquired technology research customer relationships order backlog. Relief from Royalty Method trade name. assumptions revenue results discount rates.
 table fair values assets liabilities intangible assets goodwill
 in-process research development indefinite-lived asset until project completed.
 Meta Networks.
 May 15, 2019 acquired shares. zero trust network access.
 security employee contractor access-premises cloud consumer applications.
factors contributed to purchase price acquired assets goodwill recorded. results operations values included financial statements since Acquisition. contributed purchase price assets goodwill. results included financial statements.
 consideration transferred $104,664 cash acquired $104. $12,500 held in escrow indemnification obligations not released. revenue Meta Networks not material 2019 integration impractical determine earnings.
 Current assets $10,603
 Fixed assets 2,132
 Operating lease right-use 2,669
 Other assets 652
 Customer relationships 15,800
 Order backlog
 technology 35
-process research development 20,600
 Operating lease liabilities (3,317)
 Deferred revenue (6,700
 Other liabilities (5,414)
,374
 $218,499


Obligations
 June 30, 2019 effect liquidity cash flow
 Debt obligations Credit Agreement.
 Inventory purchase obligations long lead-time inventory. honor commitments 12 months.
.
 Deferred payments Data Center $1. million per quarter.
 Capital Financing Business acquisition. payments
 Non-cancelable operating lease obligations base rents expense.
 Other liabilities debt fees arrangements.
 exclude income tax liabilities.
 commitments capital expenditures June 30, 2019.
 1-3 3-5
 5
 Debt obligations $180,500 $9 $142,500
 Interest debt obligations 25,582
 Inventory unconditional purchase obligations 51,241
 Contractual commitments 94,000
104,678 22,733 41,854 23,804 16,287
 Deferred payments 15,000
 6,298 4,236 2,013
 liabilities
 obligations $477,678 $123,667 $142,568,156


. Quarterly Financial Data
 2019 2018
 Quarter
 March June September December
 Revenue $50,290 $49,189 $52,833 $60,316
 Gross profit $38,040 $37,918 $40,913 $46,876
 Net income $(12,272) $(5,771) $173
 loss share-basic.
 share-diluted.
 March June September December
 Revenue $49,183 $60,713 $60,502 $61,825
 Gross profit $37,299  $47,526 $47,488 $48,014
 Net loss $(19,670) $(4,532)(1,807)
 loss share-basic.
.


 revenues billing addresses.
 Americas U. Canada Latin America EMEA Europe Middle East Africa APJ Asia Pacific Japan
 Revenues. $2. billion. billion 2019 2017. country 10% revenues.
 Americas $3,028 $3,031 $2,329
 EMEA 1,002 1,048
 APJ
 revenues $4,731 $4,834 $4,019


14. Principal Accountant Fees Services
 fees services KPMG LLP Fiscal 2019 2018
 Audit fees annual audits financial statements report review quarterly financial information 10-Q mergers annual statutory audits.
 Audit-related fees services review non-periodic filings SEC.
 Tax fees tax compliance tax returns planning advice.
 other fees.
 OpenText's Audit Committee policy audit tax non-audit services. services Audit Committee. pre-approval Chair Audit Committee. services KPMG LLP Fiscal 2019 2018 preapproved Audit Committee.
 compatible KPMG LLP's independence auditing functions.
 Year ended June 30
 2019 2018
 Audit fees $4,598 $4,701
 Audit-related fees (2)
 Tax fees (3) 108 116
 other fees (4) 40
$4,918


November 2017 GMSL acquired trenching cable Fugro. 6% holder Global Marine Holdings. incurred revenue expenses Fugro.
 2019 2018 recognized $11. 3 million $9. 3 million expenses Fugro. 2019 recognized $0. 8 million revenues. incurred management fees $0. 6 million.
 transactions equity investees.
 Net revenue $ 6. $ 21.
 Operating expenses $. 4
 Interest.
 Accounts receivable $.
 Long-term obligations $ 22. $ 28.
 Accounts payable.
 Dividends $ 4. $


STATEMENTS
 notes.
 Fiscal Years
 Sales $370. 2 million $368. 4 million $1,392,388,157 $1,322,306,658
 Cost 1,308,364,726 1,245,375,460
 Gross profit 84,023,431 76,931,198
 expenses 72,182,883 66,781,234
 Depreciation amortization 2,617,591 2,318
 Impairment charges 2,873,269 1,912
,673,743
 Operating income 6,349,688 5,918,941
 Interest expense 1,598,864 1,194,373
 4,811,943
 income $ 3,202,943 3,614,610
 earnings.
.
 shares
 Dividends share.


acquisition Norstel technology $86 million.
 ready.
 amortization expense 2019 2018 2017 $69 million $64 million $58 million.
 December 31, 2019 Gross Cost Amortization
 Technologies licenses 699 121
 software
 119
 intangible assets
 1,374 (1,075) 299
 December 31, 2018 Gross Cost Amortization Net
 705 (592)
 software 459
 44
 intangible assets 69
 1,277 (1,065)


Long-Term Debt
 payable June December 1 1.% annually. April 15 October 15. 625% annually. real estate mortgages term loans revolving lines credit notes international weekly quarterly rates. 4. maturity dates 2019 2022.
 Debt discount $20. 4 million $41. 6 million. $71. 8 $88. 5 million. $10. 5 $9. 3 million Term December. Debt issuance costs $2. 8 million $5. 8 million. $6. 9 $8. 5 million. $24. 3 $19. 2 million Loan.
 Revolving Credit Facility 2024 interest payable. 30%. 77%.
 Term Loan 2026. 80%. 27%,.
. 2020.
. 2023
 long-term debt.
long-term debt 3,749. 2,939.
 Debt discount.
 Debt issuance costs.
-term debt 3,612. 2,766.
 (736.
 $2,876. $2,627.


Company sponsors Woolworths Group Superannuation Plan employees retirement. closed new members. assets sub AMP SignatureSuper separated Group. invests pooled trust products daily.
 consists members defined benefit entitlements contribution benefits. pays allocated pensions pensioners. disclosures obligation entitlements.
 contributes Trust Deed Rules Participation Deed. Members membership category. provides sum benefits defined by salary period membership.
 actuarial valuation Wilkinson FIAA Willis Towers Watson. assumptions
 Discount rate.
 salary increase.
 price inflation.


Warranty Obligations
 offer warranties liability future costs revenue. liability experience. warranty obligation affected failure rates usage delivery costs.
 monitor returns maintain reserve expenses. new products failure rates. experience assumptions.
 estimated cost warranties revenue. costs reflected Consolidated Statement Income Cost revenues. reconciliation changes warranty liability
 Fiscal Year Ended
 December 28,
 2018 30 2017
 Balance $2,102 3,662 $2,972
 Accruals 3,881 3
 Settlements (4,041) (4,741)
 end year $1,942 $2,102 $3,662


. Cash equivalents
 interest floating rates. total balance $79. 3 million (2018 $63. 9 million) callable three months investment.
 Short-term deposits periods one day three months requirements earn interest rates.
 2019 currency split US Dollar 78 Sterling 11 other currencies 11.
 cash flow statement equivalents comprise amounts.
 $
 103.
 Short-term bank deposits.
.


summary investments cash equivalent December 31, 2018
 2019 investment corporate bonds US treasury securities-average maturity five months. Unrealized gains losses not significant impairments.
 Amortized Cost Unrealized Gains Losses Fair Value
 Current assets
 Cash $54,275
 Cash equivalents
 Money market funds 129,321
 183,596
 Short-term investments
 Corporate bonds 58,115
 US treasury securities 138,826
 Commercial paper 7,973
 short-term investments 204,914
 Long-term investments
 Strategic investments 1,250
-term investments $1,250


.
 Company leases
 three-year lease 2017 83,000 square feet Aurora Illinois headquarters.
 two-year lease 2018 2,300 square feet Manchester New Hampshire office.
 evaluating replacement lease ISM center Ohio.
 sixteen acre Dublin Ohio. sold four acres 2015 twelve acres.
 Aurora headquarters office distribution manufacturing 83,000
 Dublin Design 9,465
 2,287


Overview Results Fiscal Years 2019 2018 2017
 operating results affected wholesale shell egg market prices feed costs
 control. majority shell eggs sold wholesale
 prices
. table shows net income gross profit shell egg selling price
 wholesale egg prices feed cost dozen
 three recent fiscal years.
 shell egg industry high profitability
 loss. increased demand
 excess supply.
 demand increases population growth. results
 fluctuate egg market feed costs. net average shell egg selling price
 all sizes. 2017 price dozens sold decreased
 oversupply repopulation flock
 reduced demand.
 2018 strong demand selling price feed costs decreased
. 2019 increasing. flock size oversupply
. decreased gross profit net income.
 NET SALES year June 1 2019 $1,361.decrease $141. 7 million. 4%
 sales $1,502. million 2018. due lower prices non-specialty
 eggs oversupply
 demand.
 egg sales 97% net sales. 1,038. 9 million increase. 1% 1,037. 7 million 2018 sales $1. million.
 average price decreased $1. 397 per dozen to $1. 265 per dozen decrease. 132 per dozen. 4% abundance eggs. decrease net sales $137. 1 million. results affected shell egg market prices. production demand prices.
 3% net sales. revenues $41. 5 million
 2019 $43. 5 million 2018.
 Net income Cal-Maine Foods. $54,229 $125,932 $,278
 Gross profit 222,859 361,046
 average shell egg selling price. 27.
 Egg.. 49.
 Feed cost dozen. 415.


.
 Goodwill
 fiscal years 2019 2018
 Goodwill acquired 2019 $17,015 $12,893 BOLTS Technologies. $3,999 Agiletics. remainder adjustment Ensenta valuation. goodwill growth potential synergies economies combining operations Technologies Agiletics workforces. No goodwill Corporate Other segment.
 Goodwill 2018 $97,597 $91,098 purchase Ensenta Corporation. remaining $6,499 Vanguard Software Group Complementary segment. goodwill growth potential synergies economies scale combining operations Ensenta Vanguard workforces. No goodwill Corporate Other segment.
 Goodwill reduction 2018 sale jhaDirect product line. Goodwill assets calculated values business reporting unit retained.
 30
 balance $195,956
 Goodwill acquired
 adjustments
$199,956
 Payments
 $325,204 $234,106
 acquired 91,098
 adjustments
 $325,326 $325,204
 $128,769 $122,403
 acquired
 adjustments
 $141,662 $128,769


AMERICAN TOWER CORPORATION FINANCIAL STATEMENTS amounts millions
 2019 Company operating financing leases.
 lease liabilities
 Balances translated period-end exchange rate comparability.
 Operating Lease Finance Lease
 $904. $8.
 878.
 845.
 810.
 766.
 6,140. 45.
 lease payments 10,344. 68.
 (3,340.
 7,004. 30
 494. 6.
 Non-current lease liability $6,510. $24.


. Acquisitions Divestitures
 Acquisition Summary
 five acquisitions 2019.
 September 28, 2018 Duo Security. unified access security multi-factor authentication. Security.
 February 6, 2019 Luxtera. semiconductor company. Infrastructure Platforms.
 cash vested share awards. cash equivalents approximately $100 million.
 Fiscal 2019 Purchase Tangible Assets Acquired Assumed Purchased Intangible Assets Goodwill
 Duo $2,025 $ $342 $1,740
 Luxtera 296
 65
 $2,686 $672 $2,088


. Registrant’s Common Equity Stockholder Matters Issuer Purchases Equity Securities.
 common stock traded Stock Market SAFM.
 stockholders December 12, 2019 2,742. beneficial owners greater exact unknown.
 future dividends earnings financial condition capital requirements financial covenants Board Directors quarterly.
 fourth fiscal quarter Company repurchased common stock
 purchases Stock Incentive Plan tax withholding obligations.
 May 31, 2018 Board expanded extended share repurchase program million two million market conditions. authorization May 31, 2021. fourth quarter 2018 purchased 823,385 shares. repurchases vested stock not 2018 general repurchase plan.
 vested restricted shares Incentive Plan.
Period Total Shares Purchased Average Price Paid Share Plans Programs Maximum Shares Purchased Plans
 Aug. 1 -. 31, 2019 1,176,615
. 1. 30, $151.,176,615
 Oct. 1 -. 31, 34,344 $154.,176,615
 35,245 $154. 1


Company’s nonvested options December 31, 2019 changes
 3,835,366 shares price $1. 34 intrinsic value
 $635,536.
 3,846,299 shares $1. 36 intrinsic value
 $2,150,912.
 options granted 126,567 280,000. exercise price $1. $1. 25 $1. 75 per.
 compensation expense $797,761 $1,130,071
 research development expenses. $562,734 compensation
 employees $235,027 non-employees.
 January 2018 consulting agreement NeuroAssets Sàrl.
 Compensation approved 200,000 options 2016 Equity Compensation
 Plan. options vest 48 months installments first vesting March 20, 2018 ten years
 exercisable $1. 75 per share. vesting partnership introduction Consultant.
 NeuroAssets.February 20, 2018 Compensation Committee approved 200,000 options 2016 Equity Compensation Plan. vest 48 months vesting March 20, 2018 ten years $1. 75 per share. vesting.
 quarter 2018 granted stock options four consultants. 50,000 vest immediately 30,000
 monthly 48 $1. 75 ten years
 December 31, 2019 unamortized stock option expense $287,905 $144,423 employees $143,482 non-employees.
 average unamortized 3. 98 years
 February 25 2019 granted 101,567 options $1. ten year term. 59,900 41,667
 bi-weekly. $199,807.
 $29,850 loss $99,541
. 59,900 41,667 bi-weekly.
 June 17, 2019 granted 25,000 options $1. 75 ten year term. immediately
 value $36,374

 Nonvested Options Weighted-Average Exercise
 2017 1,492,861. 54
 280,000. 75
 (972,651).
 2018 800,210.
 126,567.
 (584,895).
,500.
 2019 204,382.


Restructuring Reserves
 Consolidated Balance Sheets
 Fiscal Year
 millions
 Accrued liabilities $ 245 141
 $ $ 167


credit quality concentration cash equivalents investments derivative assets tables. Moody’s Standard & Poor’s lower rating.
 cash collateral £638m derivative assets counterparties.
 concentration credit risk trading balances note 17,. transactions risk International Swaps Derivatives Association.
 credit support agreements swap counterparties value £3,289m cross-currency swaps. net cash inflow £129m. collateral paid received recognised investments loans borrowings.
 Moody’s S&P credit rating counterparty
 Aa2/AA above 2,522 2,575 1,444
 Aa3/AA– 1,376 313 208
 A1/A+a 1,145 651 952
 A2/Aa 649 628
 Baa1/BBB+a
 4,613


Fixed Pay increases
 Committee approved increases 4% CEO 3% CFO 1 January 2020. average increase Unilever workforce 2019. 6%. leadership 2019 Alan first CEO transformation Unilever. Graeme seniority 5th year CFO.
 Alan Jope appointed 1 January 2019 Fixed Pay 14% below lower quartile remuneration benchmarking group. promotion. performance Committee Fixed Pay market median benchmark.
 maximum (67% investment.
 Alan Jope CEO. Graeme Pitkethly CFO.
 Fixed Pay 1,450
 Annual Bonus 2,175
 MCIP Match share award 2,186 2,273
 Target Total Pay 5,811 3,756
 67%
 Unilever shares 1,457


ITEM 6. FINANCIAL DATA
 information not indicative future Item 7. Discussion Analysis Financial Condition Results Consolidated Financial Statements Notes.
 derived 2019 2018 balance sheet financial statements. 2016 2015.
 2015, FASB guidance deferred tax liabilities assets noncurrent. superseded ASC valuation allowance. 2016, reclassification deferred non-current balance sheets 2017 2016 2015.
 Includes $16. million after-tax restructuring charges. 4 million amortization purchase accounting $1. 1 million benefit asset recovery $1. 7 million non-recurring income tax expense $2. 5 million excess tax benefits employee stock-based compensation.
 Includes $2. 9 million-tax restructuring charges. 8 million impairment charges. 7 million-tax acquisition costs.million-tax amortization $26. 7 million tax charges. Tax Cuts Jobs Act $3. 3 million tax valuation deferred tax $12. 8 million tax benefit tax benefits stock compensation.
 $19. million-tax amortization $17. 4 million costs acquisition Rofin $8. 4 million restructuring $1. 9 million $1. 8 million interest $7. 1 million gain $3. 4 million gain sale Rofin shares $1. 4 million R&D tax audits.
 $6. 4 million tax costs $1. 4 million loss. 8 million interest $1. 2 million R&D tax credit 2015.
 $1. 3 million SiOnyx $1. 3 million-tax charge audit $1. 1 million R&D tax credit $1. 3 million gain purchase Tinsley.

 Consolidated financial data 2015(5)
 Net sales $1,430,640 $1,902,573 $1,723,311 $857,385 $802
 Gross profit $486,465 $830,691 $750,269 $381,392 $335,399
 Net income $53,825 $247,360 $208,644 $87,502 $76,409
 income share
.
.
 Shares
 Total assets $2,083,169 $2,259,969 $2,337,800 $1,161,148 $968,947
 Long-term obligations $392,238 $420,711 $589,001
 long-term liabilities $165,881 $151,956 $166
equity,284,736,314,464,264,828


 Interest expense decreased $54. 7 million non-recourse residential financing obligations Lease Portfolio-leaseback financing commercial.
 Interest expense increased $17. 7 million due new debt commercial sale-leaseback arrangements.
 income increased $119. 4 million $158. 3 million gain equity investment $6. 4 million. gain sale equity investments $17. 7 million $54. 2 million.
 income increased $143. 0 million. $54. 2 million gain equity investments $73. 0 million impairment charge 8point3 Energy Partners LP equity investment ASC 606-temporary impairment.
 Interest income $2,702 $3,057
 Interest expense (53,353) (108,011)
 Income
 174,734 55,314 (87,645)
 $124,083
percentage revenue 7%


Item 6. Selected Financial Data.
 historical financial data read with Item 7 Discussion Analysis Financial Condition Results Operations consolidated financial statements notes Item 8 Statements Supplementary Data Annual Report Form 10-K comparability.
 consolidated financial data not replace financial statements qualified by financial statements.
 consolidated statements operations December 31, 2019 2018 2017 balance sheet data derived from audited financial statements. December 31, 2016 2015 balance sheet data derived from statements not. financial data December 31, 2019 reflects ASU No. 2016-02, Leases (Topic 842). ASU No. 2014-09, Revenue Contracts Customers. See Notes 15 18 adjustments. consolidated financial data years December 31, 2018 2017 2016 2015 reflect adoption ASU 2016-02. ASU 2014-09.
 December

 Revenue $200,882 $147,094 $104,352 $76,846 $58,720
 Cost 63,535 46,810 31,503 23,767
 Gross profit 137,347 100,284 72,849 53,079 38,931
 expenses
 Sales 87,731 69,608 46,998 34,847
 Research 50,024 41,305 22,241 14,765
 46,820 31,462 22,895 14,293
 operating expenses 184,575 142,375 92,134 63,905 49
 loss,228 (42,091) (19,285
 Other expenses (4,597)
 Loss taxes (51,825) (46,719) (19,587
 loss(52,250 $(47,515),634
 loss share..
 33,161,656 29,107,267 27,862,375,659,561,257,413


2019 revenues decreased. 1% volumes 8% compensated selling prices 7%. driven favorable product mix 10% offset negative pricing effect 3%.
 2018 revenues increased. 8% selling prices 16% volumes flat. driven favorable product mix 18% offset negative pricing 2%. revenues double-digit growth product groups geographies.
 2019 2017 largest customer Apple accounted 17. 6% 13. 1% 10. 5% net revenues three product groups.
 Ended
 Net sales $9,529 $9,612 $8,308.
.
 revenues $9,556 $9,664 $8,347.


Unaudited Pro Forma Financial Information
 combined results ACI Speedpay acquisition January 1, 2018. illustrative not indicative future. not actual results reflect potential synergies integration costs savings.
 pro forma adjustments net income December 31, 2019 2018 amortization expense Speedpay assets amortization expense acquired intangible assets interest expense Delayed Draw Term Loan Revolving Credit Facility borrowings. transaction expenses acquisition excluded year December 31, 2019.
 unaudited summarized pro forma financial information
 Walletron
 May 9, 2019 patented mobile wallet technology. financial results financial statements.
 RevChip TranSend
 October 1, 2019 acquired technology assets RevChip TranSend Integrated Technologies. combined $7. 0 million. technology asset acquisition. financial results financial statements.

 Years Ended December 31,
 revenue $1,382,957 $1,361,729
 net income $82,003 $88,428
 per share
.
.


. Share Compensation
 December
 revenues $8,741 $4,982 $3,735
 Research development 23,132 14,975,550
 Sales marketing 38,325 16,015
 31,156 20 12,760
 expense $101,354 68,088 42,060


2019 expenses increased. 9% salary dynamic R&D higher share-based compensation cost offset currency hedging.
 2018 expenses increased. 5% unfavorable currency hedging salary dynamic increased R&D higher share-based compensation plans.
 R&D expenses net research tax credits France Italy $126 million 2019 $138 million 2018 $124 million 2017.
 Ended December
 Selling general administrative expenses $(1,093).
 Research development expenses (1,498).
 Total operating expenses $(2,591) $(2,493),277) (3.
 net revenues (27.


GasLog. Subsidiaries
 consolidated financial statements
 years December 2017 2018 2019
 amounts. Dollars
. Leases
 February 24, 2016, GAS-twenty six. sale leaseback Methane Julia Louise Mitsui.-sell lease vessel. sold $217,000. leased bareboat charter 20 years. repurchase 17. hire fixed holiday 210 days expired September 21, 2016. leaseback finance lease IAS 17 Leases.
 movements right-of use assets
 balance December 31, 2018 finance lease renamed-of-use January 1, 2019.
 Assets Vessel Equipment Properties
 January 1 2019 2,630 4,969 214,371
 Additions 1 2,464
 Depreciation expense (7,722),109
1,857 4,550 206,495


net sales
. increased $210. 4 million. 3%. $181. million $13. 5 million increased end-market demand. offset $16. 4 million decrease end-life $6. million reduction disengagements.
 APAC. increased $59. 2 million 4. 0%. $87. 3 million $58. 1 million. offset $28. 4 million reduction disengagement $7. 3 million decrease end-of-life decreased end-market demand.
 EMEA. increased $28. 4 million 10. 1%. $20. 2 million $4. 2 million increased end-market demand. offset $6. 2 million reduction disengagement.
 AMER $1,429. $1,218.
 APAC 1,557. 1,498.
 EMEA 309.
 inter-segment sales.
 sales 3,164. 2,873.


Intangible Assets
 changes assets
 adoption Topic 842 February 2 2019 leasehold interest $116 million derecognized adjusted classified other. intangible.
 January 31, 2020 February 1, 2019
 Balance $966 $1,059
 Additions intangible assets business
 Amortization expense
 Derecognized leasehold interest
 end year $1,172 $966


Option Activity-average value options 2019 2018 2017 Black-Scholes-Merton $12. $10. 42 $6. 75. $2. 5 million $1. 5 million $1. 7 million.
 table summarizes option activity
 Weighted Average Price Value Contractual
 options December 31, 2016 1,160,419 $29. $14,299
 534,030 $42.
 $29. $7,203
.
 December 31, 2017 1,169,408 $35. $16,731
 $54.
 $30. $12
.
 December 31, 2018 1,093,400 $45. $8,776
 $63.
 $37.
 $51.
 December 31, 2019 1,136,095 $54. $28,291
2019 290,540. $10,163 3


Total Shareholder Return (TSR)
 PSUs granted TSR contingently awarded payable in common stock PSUs earned three-year Company’s TSR ranking. fair value estimated Monte Carlo Simulation. assumptions expected volatility historical share price returns dividends reinvested. volatility based historical volatility valuation. risk-free interest rate based Zero-Coupon Treasury STRIP yield curve. Compensation expense for PSUs fixed grant date recognized 100% over three-year period.
 number PSUs granted TSR assumptions shown
 2019 weighted average fair value first third quarter.
.
 May 18, 2017 O&C Committee approved change vesting policy PSU Awards Ilham Kadri. modified award modification accounting treatment. weighted average fair value grant date reflects modification.
 2019 2018
units granted 70,543 56,829 100,958
 $ 57. 43. 44.
 22. 86%. 31 %
 interest. 36%.


Revenue Profit Margin
 increased $4. 9 million 3% 2019. $12. million personnel expenses $3. 9 million content costs. 6 million $1. 6 million capitalized software amortization. offset $16. 4 million decreased costs. higher subscription revenue.
 increased $1. 5 million 1% 2018. $6. million capitalized software amortization $4. 5 million content costs. offset $6. 6 million decreased amortization intangible assets $2. 9 million external service costs. higher subscription revenue.
 revenue $149,215 $144,349
 Gross profit $427,308 $393,542,118
 Gross margin 74. 1%.


 commercial cloud revenue Office 365 Azure LinkedIn Dynamics $38. billion $26. 6 billion $16. 2 billion 2019 2017. Office Server LinkedIn.
 June
 Server $ 32,622 26,129 21,649
 Office 31,769 28,316 25,573
 Windows 20,395 19,518 18
 Gaming 11,386,353
 Search advertising 7,628 7,012
 LinkedIn 6,754
 Enterprise Services,124
 Devices
 Other 3,070
 125,843 110,360 96


 operate three Transportation Industrial Communications Solutions. serve market $190 billion.
 net sales
 segments products markets competitors.
 Transportation Solutions leader connectivity sensor technologies. products terminals connector systems sensors antennas relays application tooling wire heat shrink tubing.
 Automotive (73% automobile connectivity solutions. driver information infotainment miniaturization safety security. in-vehicle battery charging solutions.
 Commercial transportation (15% connectivity products transportation heavy trucks construction.
 Sensors (12% intelligent efficient high sensor solutions automotive industrial medical aerospace consumer.
 competitors Yazaki Aptiv Sumitomo Sensata Honeywell Molex Amphenol.
 Industrial power data signals. terminals connector heat shrink tubing relays wire cable.Industrial Solutions products
 equipment (49% sales factory automation control robotics interface communication power distribution. building products lighting HVAC elevators security. products high-speed trains metros light vehicles locomotives signaling. solar industry. medical industry imaging diagnostic surgical invasive.
 Aerospace defense oil gas (33% design manufacture electronic components systems aerospace defense marine.
 Energy (18% electrical power generation transmission distribution.
 competes Amphenol Belden Hubbell Carlisle Companies 3M Integer Holdings Esterline Molex Phoenix Contact.
 supplier electronic components data devices appliances. terminals connector systems relays heat shrink tubing antennas.
 Data devices (59% networking data center wireless infrastructure.deliver connectivity solutions Internet Things smartphones tablet computers notebooks virtual reality innovations.
 Appliances (41% sales home. products washers dryers refrigerators conditioners dishwashers cooking water heaters air purifiers microwaves. custom-designed solutions.
 competitors Amphenol Molex JST Korea Electric Terminal.
 Transportation Solutions 58
 Industrial Solutions
 Communications Solutions


value foreign exchange contracts Condensed Balance Sheets. netting arrangements payments. effect netting derivative assets liabilities not material March 29, 2019 30, 2018.
 outstanding contracts. dollar
 March 29, 2019 30 2018
 investment hedges
 contracts sold $116
 purchased $963 $697
 sold $122 $151


Openreach UK-wide overlapped competitors. providers fibre. volume discount deal record quarter fibre sales. expanding fibre-premises network. strong demand Ethernet circuits second quarter.
 revenue decline 4% price reductions Ethernet non-regulated reductions decline physical line base reclassification costs revenue. offset 25% growth fibre rental base increase Ethernet rental base IFRS 15.
 operating costs flat higher recruiting training inflation offset efficiency savings reclassification costs revenue. EBITDA down 7%.
 Capital expenditure £2. 1bn up 22% FTTP Gfast BDUK grant funding deferrals efficiency savings.
 free cash down 38% EBITDA decline capital expenditure customer receipts.
. deficit. transfer Northern Ireland Networks.

 revenue £5,075m profit £955m
 2019 15 2018 18
 31 March
 revenue 5,075,278
 operating costs 2,652
 EBITDA 2,423 2,615
 Depreciation amortisation 1,468
 operating profit 955 1,214
 Capital expenditure 2,081 1,699
 cash 685,100


December 31, 2019 lease liabilities
 no operating finance leases commenced.
 millions
 2020 $460 47
 2021
 2022
 2023
 2024
 lease payments 2,274 310
 interest
 $1,758 220
 current (416)
 Long-term $1,342


. increased RMB105. 8 billion fourth quarter 2019.
 VAS increased 3% RMB52,308 million. Online games 6% RMB30,286 million. Peacekeeper Supercell PC games. Social networks revenues RMB22,022 million stable.
 FinTech Business Services increased 12% RMB29,920 million. commercial payment social payment cloud services.
 Online Advertising increased 10% RMB20,225 million. Social advertising 11% RMB16,274 million. mobile advertising Weixin Moments. Media advertising increased 8% RMB3,951 million. Tencent Video Tencent News TME.
. increased RMB59,659 million. channel costs FinTech services content costs. 56% stable.
 VAS increased 7% RMB26,120 million. content costs eSport events higher channel costs games Supercell.
revenues FinTech Business Services increased 11% RMB21,520 million fourth quarter 2019. reflected costs payment cloud services.
 Online Advertising decreased 2% RMB9,241 million. lower content costs offset traffic acquisition costs.
 Selling marketing expenses. increased 17% RMB6,712 million. marketing spending smart phone games digital content expenses Supercell.
 administrative expenses. increased 18% RMB16,002 million. due R&D expenses staff costs Supercell.
. losses RMB1,328 million profit RMB234 million third. non-cash value changes.
 Profit equity. increased 6% RMB21,582 million. Non-IFRS profit increased 4% RMB25,484 million.
 31 December 30 September
 Revenues 105,767 97,236
 Cost revenues
profit 46,108 42,479
 Interest 1,580 1,674
 gains 3,630
 Selling marketing
 expenses,002,536
 profit 28,604 25,827
 Finance costs,767
 tax 24,509 24,314
 22,372 20,976
 Equity 21,582 20,382
 Non-controlling interests
 Non-IFRS profit 25,484 24,412


Stock-Based Compensation
 Incentive Program
 January 2006, Board Directors adopted ADTRAN. 2006 Employee Stock Incentive Plan authorized 13. million shares common stock employees officers rights RSUs restricted stock. adopted May 2006. Options exercisable one year employment four-year vesting ten-year contractual term. replaced 2015 ADTRAN. 2015 Employee Stock Incentive Plan. Expiration dates 2020 to 2024.
 January 2015, adopted 2015 Plan authorized 7. million shares common stock employees rights PSUs RSUs restricted stock. RSUs reduce. shares. Options one year employment four-year vesting ten-year term. Expiration dates 2025 to 2026.
 approved 2010 Directors Stock Plan May. million shares stock reserved issuance. replaced 2005 Directors Stock Option Plan.2010 Directors Plan options stock RSUs non-employee directors. awards vested first anniversary grant. Options ten-year. options expired 2019.
 compensation expense PSUs 2019 2018 2017
 sales $369 $418
 Selling administrative expense 3,889 3,989 4,063
 Research development 2,704,991
 operating expenses 6,593 6,737 7,054
 6,962 7,155
 Tax benefit non-qualified options PSUs RSUs restricted stock (1,659)
 tax $5,303


deferred tax balance sheets
 tax carryforwards
 Foreign local loss $61. 6 million $47. million no $14. million 2020. $61. million valuation allowance $31. 7 million jurisdictions. federal state carryforwards $14. million $30. 7 million acquired. full valuation allowance losses $30. 7 million. California carryforwards $2. 8 million expire 2032.
. federal R&D carryforwards $35. 4 million 2025. California $32. 2 million no expiration. $27. million valuation allowance. recorded carryforwards $3. 9 million expire 2020. valuation allowance $2. 7 million. million
. foreign tax carryforwards $51. million expire 2022.
 Non-current deferred income tax assets $87
(27,785,339
 $59,226 $38,519


Dividend Policy
 quarterly dividends by Board of Directors. higher than or lower after reserves contingent liabilities borrowing agreements cash needs Bermuda law.
 dividends 2019 $14. 3 million or $0. 10 per share. quarterly dividend payments per share last 5 years
 Includes $0. 05 per share dividend-in-kind.
 declared dividend $0. 07 per share fourth quarter 2019 paid March 16, 2020.
 2019 2018 2017 2016 2015
 1st Quarter. 04
 2nd Quarter.
 3rd Quarter.
 4th Quarter.
.


Financial Data
. Management Financial Condition Results Annual Report Form 10-K.
 2018 income tax benefit $75. 8 million valuation allowance. deferred tax assets. Note 13. 2019 2017 2015 income restructuring charges. 5 million. 2. 3. 6 million.
 2016 loss impairment charges $12. 4 million. 2015 loss $1. 5 million gain business interruption insurance $1. million sale intellectual property.
 2016 Cascade Microtech acquisition $82. 6 million revenue $27. 8 million intangible amortization expense $7. 6 million inventory-up amortization.
 2016
 Consolidated Statements Operations
 Revenues $589,464 $529,675 $548,441 $282
 Gross profit 237,496
39,346 104,036 40,913
.
.
 Balance
 Cash securities $220,872 $149,003 $140,172 $108,905,589
 Working capital 282,483 235,302 213,693 172,002 214
 assets 839,882 728,222 646,574 342,723
 loan 15,639 34,971 87,228 125,475
 stockholders equity 640,997 580,164 458,637 401,056
 employees 1,836 1,676


 2018 increased $382. 3 million 17. 7 percent sales $300. 8 million 16. 2017. Excluding surcharge revenue gross margin 21. 3 percent 19. 3 percent 2017. stronger demand improved product mix operating cost improvements.
 surcharge mechanism raw material costs. surcharge protects profit margin. dilutive impact margin. removing impact surcharge.-GAAP Financial Measures”.
 sales $2,157. $1,797.
 surcharge revenue.
 excluding surcharge $1,792. $1,558.
 Gross profit $382. $300.
 margin. 7%.
 excluding surcharge revenue. 3%.


April 30, 2019 Company. S. federal losses $23 million $4 million 2023 2031 Internal Revenue Code Section 382. remaining. losses $18. 9 million indefinite carry-forward. capital loss-forward $9. million expires 2023. state loss carry-forwards R&D tax credits tax credits.
 unrecognized tax benefits
 April 30 2019 effective tax rate. April 30 2019 2018 Company $64,000 $10,000 accrued interest penalties. recognized interest penalties $54,000 $3,000. decreases benefits $40,000.
 subject taxation U. S. federal state local foreign jurisdictions. federal income tax returns 2016. Revenue examination 2016 tax return no change tax liability. examination foreign jurisdictions Fiscal 2015. Net losses tax attributes subject adjustment.
fiscal year $1,264 $1,626
 Additions
 prior 142
 Decreases (119 (304)
 Lapse statute limitations (29 (58)
 $1,258 $1,264


GreenSky.
 FINANCIAL STATEMENTS
 States Dollars
 table reconciles liabilities transferring rights Charged-Off Receivables.
.
 liabilities loan payments.
 December 31,
 Beginning balance $3,016 $2,071
 Initial obligation transfer Charged-Off 2,705 2,461 2,379
 value changes (1,925) (1,516)
 Ending balance $3,796 $3,016 $2,071


Obligations Commitments
 August 31, 2019 obligations future payments contracts
 Amounts total rounding.
 liability unrecognized tax benefits excluded. Note 10 (Income Taxes Consolidated Financial Statements 8.
 Amounts projected payments unfunded retirement plans pre partners. pay directly. eliminated after May 15, 2001
 commitments information technology software support maintenance termination fee. Amounts recourse termination fees penalties.
 Payments due period
 Contractual Cash Obligations Less 1 1-3 3-5 5 years
.
 Long-term debt $23 $6
 Operating leases 3,840 688 1,114
 Retirement obligations
 Purchase obligations commitments 286
 $4,244 $910 $1,206 $830


 increased $269. 4 million 45. 2% 2019 2018. decreased 55. 6% to 54. 9% due Shopify Payments amortization 6RS acquisition. offset lower third-party infrastructure hosting employee costs growth higher-margin Shopify Capital referral fees.
 profit increased $216. million 56. 8% 2018 2017. decreased from 56. 5% to 55. 6% due Shopify Payments hosting infrastructure higher product costs. offset growth higher-margin referral fees Shopify Capital Shipping.
 2019
 Gross profit $ 865,643 $ 596,267 $ 380,253 45. 2 % 56. 8 %
 revenues 54. 9 % 55. 6 % 56. 5 %


COMMITMENTS
 Warranties
 standard warranty repair defective product discretion 12 24 months. failure rates usage service delivery costs. warranty accruals technical problems. estimated cost revenue.
 Changes warranty liability table
 Ended December 31,
 2019 2018 2017
 Warranty reserve $8,220 $8,306 $2,158
 Provisions 13,708 11,775 16,597
 Charges (11,574) (11,861) (10,449)
 end $10,354 8,220 8,306


CUSTOMER STATISTICS
 INTERNET Fiscal 2019 fourth-quarter additions 2,441 4,693 prior year additional connects Florida expansion MetroCast high speed growth residential business sectors.
 VIDEO 2019 fourth-quarter additions 5,294 losses 3,046 prior activation bulk properties Florida TiVo video services competitive offers changing video consumption environment.
 TELEPHONY 2019 fourth-quarter telephony net losses 304 1,150 decline residential growth business. 304 1,150 decline business.
 additions
 Three months August 31,
 Primary service units 901,446 7,431 2,797
 Internet service 446,137 2,441 4,693
 Video service 312,555 5,294
 Telephony service 142,754


restructuring expenses
 Restructuring Expenses Functional Area
 millions 2019 2018 2017
 Cost cloud software –138
 services –154
 Research development –467
 Sales marketing –299
 General administration –71
 Restructuring expenses –1,130


. Prepaid Expenses Assets Liabilities
 December 31, 2018
 expenses $1,948 $1,179
 Securities insurance receivable 16,627
 assets 1,556 2,865
 $20,131 $4,350


GasLog. Subsidiaries consolidated financial statements 2017 2018 2019 amounts. Dollars Investment associates joint venture
 additions $158 Gastrade. February 9 2017 GasLog acquired 20% Gastrade natural gas Alexandroupolis. operations maintenance FSRU agreement February 23, 2018.
 2019
 January 1 20,800 20,713
 Additions
 profit 1,800 1,627
 Dividend
 December 31, 20,713 21,620


2020 Incentive Plan Enhancements.
 transitioned operation phase long-term strategy.
 revised 2020 incentive programs strategic priorities
 added Revenue performance changed metric period three-year Adjusted EBITDA added-year Relative TSR Modifier 20%.
 Short-Term Incentive Plan
 2018 2019
 Adjusted EBITDA
 Free Cash Flow 25%
 Revenue
 Customer Experience 10%
 Long-Term Incentive Plan
 Adjusted EBITDA (2 year
 Adjusted EBITDA (3 year
 Relative TSR Modifier (3


. Accrued Expenses
 leases income indirect tax.
 rebates marketing channel partners vendors integrators. professional service.
 January 31, 2020 $237 million Cirba patent trademark $155 million dissenting shareholders Pivotal acquisition. Note E B.
 January 31, 2020 February 1, 2019
 employee expenses $845 $780
 partner liabilities 181
 Customer deposits 247
 878
 $2,151 $1,664


 ICS operates routes offers voice communication services business residential long-distance data transit traffic. Customers bilateral relationship ICS. sells access purchases routes.
 Net revenue from long-distance data transit traffic. earned based minutes multiplied price per minute recorded completion. Completed calls billable incomplete non-billable. Incomplete calls technical issues credit limit routing.
 Revenue calculated from billing software minutes market rates. billing software call records. analysis revenue.
 ICS evaluates gross versus net revenue indicators control. Net revenue gross allowance doubtful accounts receivable service credits adjustments. Cost revenue includes network costs access transport termination costs. cost variable based upon minutes use transmission termination costs significant.
 revenues from international long distance minutes
 December

 2018
 distance minutes $696. $793.
 revenue contracts 696. 793.
 Telecommunications $696. $793.


Operating costs
 up $8. 3 million. 2019 line with inflation. emphasis on resource allocation cost management. investment product development maintained high-growth-margin areas. sales marketing expanding account management new technologies. Administration costs inflationary increase higher due CEO transition.
 investment Networks Security opportunities growth 400G high-speed Ethernet. new General Manager joined Lifecycle Service Assurance review business structure expand customer base growth agenda. Proactive cost management Connected Devices decrease product revenue year-on-year. costs 2019 CEO transition.
. acquisition intangible amortisation share-based payment $4. million $19. 6 million.
 Product development.
 Selling marketing.
.
.
 Networks Security.
 Lifecycle Service Assurance.
 Connected Devices.
.
.


. KEY PERFORMANCE INDICATORS HIGHLIGHTS
 indicators monitored business strategies shareholder value creation. not IFRS. Corporation indicators not comparable. measures performance revenue free cash capital intensity(1) constant currency.
 Fiscal 2018 restated IFRS 15 change accounting policy results Cogeco Peer 1 discontinued operations. consult "Accounting policies "Discontinued operations" sections.
 2019 sell Cogeco Peer 1 fiscal 2019 financial guidelines revised.
 results constant currency fiscal 2018 average foreign exchange rates 1. 2773 USD/CDN.
 "Cash flow analysis" sections.
 millions Fiscal 2018 Revised projections 2019 currency Achievement projections
 Financial guidelines
 Revenue 2,147 Increase 6% to 8%. Achieved
EBITDA 1,007 Increase 8% 10%.
 Acquisitions property $450 $470.
. 3% 20% 21%. 5%
 cash flow Increase 38% 45%.


Transactions Dell
 VMware transactions revenue receipts unearned revenue
 Dell products sells. distributor products services for resale. Revenue net of marketing funds rebates. VMware provides services agreements. Dell purchases products services VMware internal use. VMware Dell projects pays reimburses costs.
 Dell purchases products services channel partners.
 revenue receipts unearned revenue
 Customer deposits Dell were $194 million $85 million January 31, 2020 February 1, 2019
 Revenue Receipts Unearned Revenue
 Reseller revenue $3,288 $2,355 $1
 Internal-use revenue 82  41  46 | 57  29
 Collaborative technology project receipts 10  4 n/a


. Taxes
 geographical breakdown loss
 Ended December 31,
 Domestic loss $(20,345,752)
 Foreign income
 Loss taxes $(16,412)(9,545)


 funding requirements monitored asset liability profile. flexibility global funding.
 debt $62,899 million increased $17,087 million 2018 issuances $32,415 million offset maturities $12,673 million decrease commercial paper $2,691 million.
 Non-Global Financing debt $38,173 million increased $23,587 million Red Hat acquisition.
 Global Financing debt $24,727 million decreased $6,500 million OEM IT financing.
 financing assets. revenue. assets leveraged Global Financing base.
 debt intercompany loans external debt. changes correspond receivables cash equivalents payables investment. terms loans match pricing. debt-to-equity ratio 9 to 1 December 31, 2019.
 stand-alone entity expense.Consolidated Income Statement Global interest expense.
 December 31
 company debt $62,899 $45,812
 Global Financing $24,727 $31,227
 external 21,487
 internal 3,239
 Non-Global Financing 38,173


 Teradyne extended warranties training service agreement post contract support replacement parts. recognized price. Extended warranty training service agreements PCS recognized. Replacement parts recognized transfer control.
 Teradyne returns refunds. 12-month warranty.
 December 31, 2019 2018 deferred revenue customer advances
 Maintenance service training $63,815 $58,362
 Extended warranty 30,677 27,422
 Customer advances undelivered elements 56,358 24,677
 deferred revenue advances $150,850 $110,461


ACCOUNTING POLICY
 Accounts receivable due collectible. recognize. measure fair value amortized cost changes net income. impairment loss excess carrying over future cash flows. excess allocated allowance doubtful accounts recognized loss net income.
 reclassified $23 million December 31, 2018 January 1, 2019 wireless financing collection differs.
 Customer accounts receivable 1,579
 Other accounts 785 762
 Allowance doubtful accounts
 Total accounts 2,304


Company currency derivatives hedging instruments
 Hedge ratio 1:1 forward rate hedged risk. lower
 taken OCI. higher excess ineffective recorded gains losses.
 hedged net sales cumulative released OCI reclassification recognized net sales.
 note E1 cash flow hedge reserve. No hedged net sales 2019 released. hedge ineffectiveness
 income statement.
 Foreign exchange forward contracts
 1–3 years
 Amount millions 517
 Average forward rate/USD.


realisation remaining performance obligations year end
 Company applies IFRS 15 disclose obligations one year less.
 one year deferred income unsatisfied obligations recognised revenue future
 information represents revenue remaining obligations. amounts include orders party performed.
 Revenue sale hardware software arises contracts less one year. amounts relate maintenance support services.
 revenue recognised within three years.
 Company provides warranties products services. additional service obligation. Warranty obligations estimated recognised liabilities probable outflow resources.
 one year.
 Greater one.
.


Contractual Obligations Commitments
 table summarizes cash obligations commercial commitments December 31, 2019.
 interest €135. million 2024 June 30 $445. million 2022 $189. 2 million 2021 April $12. 5 million installment.
 finance lease obligations. IRUs inter-city intra-city dark fiber. $169. 8 million December 2019. terms 15 20 years.
 facilities operating leases colocation obligations carrier data center obligations. liabilities $96. 8 million 2019.
 purchase obligations dark fiber IRU finance lease agreements December 31, 2019.
 Payments due period
 Less 1 3 years 5
 903,696 50,601 691,748 161,347
 Finance lease 340,188 25,459 48,693 45,311 220,725
leases 205,087 36,119 42,344 100,486
 27,885 12,154 13,078
,476,856 $124,333,131 $234,103


Systems Business
 2019 EDP Renewables ConnectGen Innergex Renewable Energy 10% sales majority United States Australia. denominated U. S. Australian dollars. recognize revenue solar power cost based. revenue development project completed system. revenue recognition policies Note 2. Accounting financial statements.
 table net sales 31, 2019 2018 2017:
 sales modules segment increased $958. 1 million 2019 180% volume 4% increase average selling price per watt. systems segment decreased $139. 0 million sale Mashiko India projects California Flats Willow Springs Florida offset sale Sun Streams Sunshine Valley Beryl Phoebe GA Solar 4.
 2019 2018
 Modules $ 1,460,116 $ 502,001 $ 806,398 $ 958,115 191% $(304,397 (38)%
 Systems.1,603,001 1,742,043 2,134,926
. 3,063,117 2,244,044,941,324 819,073,280


Statements
 related party Operating expenses
 Transactions FNF November 30 2019 related party.
 ended December 31,
 Data entry indexing operating expenses $8. 8 $8. $5.
 services 3.
 Technology corporate services. (1.
 related party expenses $12. 5 $12. $12.


Share Unit Awards
 grant restricted cash employees directors. service three years. stock cash issued without cost. estimate value market price. grants dividend equivalents. reduced foregone dividend payments.
 compensation expense accounting forfeitures. cash-settled stock units marked-to-market Consolidated Balance Sheets. compensation expense $23. 9 million $21. 8 million $18. 2 million 2019 discontinued operations $1. 4 million. tax $6. 0 million $7. 2 million $7. million. cash $17. 5 million $5. 8 million $20. 9 million discontinued operations $2. 6 million. $4. 4 million $1. 9 million $8. 0 million.
 2019 Pinnacle granted 2. million cash-settled share unit awards fair value $36.share Pinnacle employees unvested awards. compensation 2019 $18. 9 million accelerated vesting Pinnacle restructuring lower price Conagra Brands. $36. 3 million pre-combination service purchase price liability. cash-settled $6. 7 million-market. May 26, 2019 liability awards $15. 9 million post-combination service expense mark-to-market payouts Pinnacle acquisition.-combination expense $3. 9 million Conagra two years.
 nonvested share units May 2019
 2019 2018 2017 granted. stock-settled share units value $35. $34. $46. 79. 2017 granted. million-settled $48. 07. No cash-settled awards 2018.
 stock-settled units vested $24. 6 million $18. 5 million $27.2019 2018 2017. cash-settled share units $50. 5 million $14. 2 million $24. million 2019 2017.
 May 26, 2019 $25. 2 million $4. 2 million unrecognized compensation expense. 9. 5 years stock-settled cash-settled
 Consolidated Financial Statements Fiscal Years May 26, 2019 27, 2018 28, 2017
 Stock-Settled Cash
 Nonvested share units May 27, 2018. $34.
. $35. $36.
.
.
 Nonvested share units May 26, 2019. $34. 89.


Operations
 Revenue
 Comparison 2018 2017
 net revenue 2018 increased $1,083. 9 million 49% 2017.
 Transaction-based revenue increased $551. 3 million 29%,. growth GPV $19. 3 billion 30% $84. 7 billion $65. 3 billion. growth existing sellers new sellers. larger sellers 51% GPV fourth quarter 2018 increase 47% 2017. attracting large seller growth GPV growth.
 Subscription services-based revenue 2018 increased $339. 0 million 134%. driven Instant Deposit Caviar Cash Card Square Capital acquisitions. 18% net revenue 11% 2017.
 Hardware revenue increased $27. 1 million 65% 2017. growth shipments Square Register Square Terminal. driven contactless chip readers Square Stand third-party peripherals new. ASC 606 increase $5.9 million hardware revenue December 31, 2018 retail installment sales.
 Bitcoin revenue increased $166. 5 million 2017. fourth quarter 2017 Cash App customers bitcoin. revenue recorded transfer. small margin prices customer demand.
 December 2017 2018 2016
 Transaction-based revenue $2,471,451 $1,920,174 $1,456,160 29%
 Starbucks transaction revenue 78,903
 Subscription services-based revenue 591,706 252,664 129,351 134%
 Hardware revenue 68,503 41,415,307
 Bitcoin revenue 166,517
 Total net revenue $3,298,177 $2,214,253 $1,708,721 49%


NOTES PAYABLE
 unsecured.
 1 April 2019 updated Global Medium Term Note Programme corporate information increased principal USD10 billion to USD20 billion.
 11 April 2019 issued five tranches senior notes principal USD6 billion.
 31 December 2019 notes USD2,000 million April 2014 maturity repaid.
 31 December 2019 fair value RMB98,668 million (31 December 2018: RMB62,820 million. values assessed active market price similar instruments.
 Amount Interest Rate
 2024. 280%
 Floating Rate Notes 3-month USD LIBOR.
.
.
.


. Investment income financing costs
 short-term investments foreign exchange movements. costs interest bonds commercial bank loans hedging transactions
 Includes €305 million €187 2017: €272 million interest foreign exchange derivatives.
 income
 Amortised cost 286  339 426
 profit loss 147
 Foreign exchange
 685 474
 Financing costs
 loans
 Interest swaps
 Fair value hedging instrument
 financial liabilities
 Bank loans overdrafts
 Bonds 1,567 1,243
 Interest settlement tax issues
 profit loss
 Derivatives options swaps futures
 Foreign exchange
 2,088 1,074 1,406
 Net financing costs 1,655 389


 Infrastructure Defense Products
 IDP revenue increased $104. 2 million. 2% higher demand base station products.
 IDP operating income increased $31. 6 million. 4% revenue lower gross margin factory utilization.
 Note 16 Consolidated Financial Statements reconciliation income 2019 2018 2017.
 Revenue $892,665 $788,495
 Operating income $267,304 $235,719
.


5. Fair Value Financial Instruments
 Company measures reports cash equivalents money market funds certificates of deposit long-term investments fair value accounting guidance. hierarchy observable minimizes unobservable
 three levels reliability
 Level 1: Observable inputs unadjusted prices active markets
 2:
 Level 3: Unobservable inputs little market activity based management’s assumptions pricing models discounted cash flow
 financial assets fair value determined inputs
 other financial instruments accounts receivable payable current liabilities carried at cost approximates fair-value short maturity.
 Fair value December 31, 2019
 Cash equivalents
 Money market funds $297,311
 Noncurrent assets
 Long-term investments 132,188
 Fair value December 31, 2018
Cash
 Money market funds $485,872
 Noncurrent assets
 Long-term investments


Sales Distribution
 maintain local presence. net sales by geographic
 sales external customers attributed countries legal entity sale.
 sell products 150 countries direct. fiscal 2019 direct sales 80% net sales. sell indirectly via third-party distributors.
 maintain distribution centers. Products delivered manufacturing customer. directly manufacturing customer. global coverage locations supply base production costs. contract with transport providers road sea air. balanced sales distribution lowers exposure improves financial profile.
 Europe/Middle East/Africa 36 %
 Asia–Pacific 33
 Americas
 Total


2019 Compensation Outside Directors
 2019 Compensation Committee granted director restricted shares $165,000 closing price Common Shares 15-day May 22, 2019. dollar value reflects grant date value FASB ASC Topic 718. awards vest May 22, 2020 accelerated vesting forfeiture. Stock Payments.
 December 31, 2019. Post held 365,221 unvested shares stock 14,706 350,515 performance-based directors 14,706-Employee Director Deferred Compensation Plan unvested equity-based awards. deferred fee arrangements.
 Includes reimbursements examinations travel $5,000. Hanks. Landrieu $3,950. Perry $4,436. Post KPMG Conference $6,000. NACD Global Board Leaders’ Summit $6,000.Hanks Perry payments G100 Conference $4,000. Bejar. Chilton. travel benefits recreational activities Board retreats.
 terms directors end 2020 shareholders meeting.
 Directors
 Martha. Bejar $120,000 $146,472 $4,000 $270
 Virginia Boulet 130,000 146,472
 Peter. Brown 128,375
 Kevin. Chilton 128,500 146
 Steven. Clontz 115,000 146
. Michael Glenn 121,000
. Bruce Hanks 244,000
 Michael. Roberts 114,000
 Laurie. Siegel 113,000 259
 Non-Returning Directors
 Mary. Landrieu 113,000 146,472 259
 Harvey. Perry 309,000 146,472 15,950 471,422
. 146,472 4,436


ITEM 7. MANAGEMENT DISCUSSION ANALYSIS FINANCIAL CONDITION RESULTS States Dollars share data
 anticipated non-cash charges financial guarantee arrangements ASU 2016-13 Note 1 Consolidated Financial Statements Item 8 Standards credit losses financial evaluating non-GAAP financial measures modification historical computation adjusted EBITDA 2020 enhance business performance information financial.
 Adjusted Pro Forma Net Income adjusted transaction non expenses losses financial guarantee arrangement Bank Partner loan incremental pro forma tax expense. results comparable public companies corporate income taxation. limitations not GAAP financial measures. limitations
 assumptions tax expense differ results not universally consistent limits usefulness comparative.
compensates limitations Adjusted Pro Forma Net Income disclosure financial statements reconciliation.
 Includes losses fourth quarter 2019 financial guarantee Bank Partner loan November 2019. Note 14 Financial Statements.
 December 31, 2019 loss remeasurement tax receivable $9. 8 million professional fees strategic alternatives review $1. 5 million. December 2018 costs not deferrable proceeds. March 2018 loan upsizing. December 2017 one-time fees August 2017 loan transaction.
 December 2019 legal fees $2. 0 million tax compliance fees $0. 2 million lien filing expenses Bank Partner solar loans $0. 6 million.
 incremental tax effect net income income subject corporate taxation. December 2019 2018 2017 tax rates 14. 8% 19. 7% 38. 4%.
$95,973 $127,980
 16,215
 Transaction 11,345
 Non-recurring 2,804
 tax (24,768,248,266)
 $101,569 $109,125 $87,014


 Sales marketing decreased $51 million stock $41 million divestiture WSS PKI.
 Research development $66 million.
 General administrative decreased $130 million decrease stock.
 intangible assets decreased sold divestiture WSS PKI.
 Restructuring transition costs $70 million 2019. $88 million transition divestiture WSS PKI $3 million 2019.
 Year Variance
 Dollars Percent
 Sales marketing $1,493
 Research development 913
 General administrative 447
 Amortization intangible assets 207
 Restructuring transition costs 241 410 (169)
 Total $3,301 $3,753


Segment Financial Results
 table revenues segment
 Revenues Corporate Other deferred accounting adjustments GAAP.
 December 31
 Software Solutions $1,012. $962. $50. 5%
 Analytics 165. 154. 7%
 Corporate Other.
 $1,177. $1,114. $63. 6%


Employee Stock Purchase Plan
 value rights 2019 2018 2017 was $4. 28, $5. 18 $6. 02. Sales 24,131 shares $9. 76 2019 31,306 $15. 40 2018 38,449 $12. 04 2017.
 December 29, 2019 62,335 shares 2009 ESPP available issuance. compensation expenses $60,000 $205,000 $153,000 2019 2018 2017.
 fair value rights estimated average assumptions
 methodologies
 Expected term purchase period ESPP.
 Risk-free interest rate Treasury Constant Maturity bond.
 Volatility historical volatility common stock.
 Dividend Yield intent issue dividend.
 Fiscal Years
 Expected life (months.
 Risk-free interest rate. 37%.
 Volatility


segment revenues operating income
 revenues licensing service fees segments.
 Ended December 31, 2019
 Blizzard
 revenues customers $2,219 $1,676 $2,031 $5,926
 $2,219
 operating income $850 $464 $740 $2,054
 Ended December 31, 2018
 revenues $2,458 $2,238 $2,086 $6,782
 $2,458 $2,086
 operating income $1,011 $685 $750 $2,446
 Ended December 31, 2017
 revenues external customers $2,628 $2,120 $1,998 $6,746
 $2,628 $2
 operating income $1,005 $712 $2,417


 years December 2019 2018 share payments equity-settled more dilutive cash-settled. net income 2019 reduced $6 million (2018 – $2 million) diluted earnings per share calculation.
 2019 1,077,875 options (2018 – 37,715) earnings share. excluded anti-dilutive.
 Years ended December 31
 2019 2018
 Net income 2,043
 dilutive securities Employee stock options restricted share units
 513
 Earnings per share
 $3. $4.
.


. Registrant's Common Equity Issuer Purchases Securities.
 shares traded Stock Market. high low sales prices two years.
 closing price May 21, 2019 $22. 51 share. 1,561 active shareholders.
 dividends 2019 2018 unlikely. policy retain earnings operations.
 $21. $13.
 Third $17. $13.
 $16. $14.
 $15. $11.
 Fourth $13. $10.
 Third $12. $11.
. $9.
 $10.


Free Cash Flow
 non-GAAP measure liquidity. calculated capital expenditures activities. conservative purchases fixed assets operations.
 limitations residual cash expenditures. incorporate finance lease obligations business acquisitions wireless licenses. consolidated statements.
 reconciles net cash cash flow
 increase free cash flow 2019 operating cash offset capital expenditures.
 millions
 2019 2018
 Net cash activities $ 35,746 $ 34,339
 Less Capital expenditures 17,939 16,658
 Free cash flow $ 17,807 $ 17,681


Value-at-Risk
 tools derivative risk. perform simulations estimate potential losses positions. use price volatility information prior 90 days daily risk. view potential risk loss derivative positions prices. model 95% confidence level. losses greater 5%. include commodity swaps futures options foreign exchange forwards options. average daily VaR energy foreign exchange positions 2019 2018.
 Fair Value Impact
 Millions Average 2019 2018
 Processing Activities
 Energy commodities.
 Agriculture commodities.
 Other commodities.
 Foreign exchange.


 primary drinkable kefir cultured dairy. Lifeway Kefir tart tangy high protein calcium vitamin D. contains 12 cultures 15 20 billion beneficial CFU).
 brand private labels. December 31, 2019 20 varieties 60 flavors. Kefir Cups Organic Farmer Cheese Cups resealable 5 oz. containers. Skyr yogurt Plantiful probiotic pea protein 10 vegan kefir cultures probiotic supplements soft serve kefir mix.
 product categories
 Drinkable Kefir organic non-organic sizes flavors low fat non whole milk protein BioKefir. European-style soft cheeses cups. Cream. ProBugs children. Other Dairy Skyr. Frozen Kefir soft serve pint-size containers.
 Net sales December 31
 Kefir

 Drinkable Kefir 71,822 77% 78,523 76%
 Cheese 11,459
 Cream 4,228 5,276 5%
 ProBugs Kefir 2,780
 dairy
 Frozen Kefir 1,617
 Net Sales $ 93,662 103,350


deferred costs $1,896 million current $2,472 million noncurrent December 2019 $2,300 million $2,676 million 2018.
 amortized 2019 $3,836 million no impairment losses. Accounting Policies deferred.
 costs 717
 costs
 setup costs 1,939 2,085
 costs 1,820 2,173
 $4,368 $4,975


. Restructuring Charges
 $21. million $16. $51. million EMS $2. $16. $82. 4 million DMS $1. million $4. $26. 7 million non-allocated 2019 2018 2017. asset write-off cash settled.
 2013 Restructuring Plans.
 Employee severance benefit $16,029 $16,269 $56,834
 Lease costs
 Asset write-off
 Other costs
 restructuring $25,914 $36,902 $160,395


. Employee share plans
 FY2019 LTI Plan
 share subject performance measure tested. Plans measured against Total Shareholder Return (TSR). shares vest after lapse.
 vest if ASX Small Ordinaries Index achieved. vesting starts TSR 50th Percentile.
 50% Plan shares vest. All vest if TSR above 75th Percentile. percentage vesting increases.
 Shares issued FY2017 LTI Plan
 table shares issued
 2019 2018
 768,806 3,384,696
 Granted
 Forfeited,806) (2,615,890)
 Exercised
 end,806


segments activities Group conducts operations United Europe regions holds investments territories. geographical assets
 31 December 2019 non-current assets deferred tax Mainland China regions RMB311,386 million,774 RMB136,338 million.
 revenues external customer less than 10% total revenues 2019 2018.
 Operating assets
 Mainland China 345,721 270,373
 168,714 83,962
 China Hong Kong,491 254,992
 North America 76,488 44,835
 Europe 29,707 37,451
 Asia 30,148
 953,986


Revenue Recognition
 tables results ASC 606 historical accounting
 Ended December 31, 2018
 Impact ASC 606 Historical Adjusted Balances
 millions share
 Operating revenue $23,443 23,482
 Cost services products depreciation amortization 10,862
 Selling administrative 4,165
 Interest expense 2,177
 Income tax expense 170
 Net loss (1,733)
 LOSS COMMON SHARE
.
.
 WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
 1,065,866


Contractual obligations commitments
 obligations 31 March 2019. German spectrum licence auction commitments May 2018 Liberty operations Germany Czech Republic Hungary Romania note 28.
 dividends non-controlling shareholders. excludes tax liabilities post employment benefit schemes 6 25. obligations associates joint ventures.
 note 21 financial risk.
 28.
 spectrum network infrastructure.
 device purchase obligations.
 Payments
 Contractual obligations
 Financial 86,160 21,953 11,404 14,881 37,922
 Operating lease 10,816 2,834 1,689
 Capital 1,514
 Purchase 8,460 4,091 2,616
 108,448 30,392 18,175 17,432 42


fourth quarter 2019 revenues $2,754 million increase. 9% 290 above guidance product groups. higher volumes 7% 1% selling prices mix prices stable.
 year-over-year net revenues increased 4. 0%. 6% selling prices offset 2% decrease volumes. improved product mix offset lower prices 3%.
 December 31, 2019
 Net sales $ 2,750 $ 2,547 $ 2,633 8. 0% 4. 5%
.
 Net revenues $ 2,754 $ 2,553 $ 2,648. 9%.


7
 TORM leases office buildings vehicles administrative equipment. short-term low-value lease reflected balance sheet right-of-use asset liability. right-of-use assets financial statement. 6.
 31 December 2019 TORM recognized right-use assets
 Vessels dry-docking Land buildings plant operating equipment
 Balance 1 January 43. 3
 Adjustment transition IFRS 16 9.
.
.
 Balance 31 December 42. 10.
 Depreciation
 Balance 1 January 13.
.
 Depreciation 4.
 Balance 31 December 15.
 Carrying amount 31 December 26. 8


Net Income Per Share
 computed-average shares. Diluted dilutive potential shares. incremental stock options treasury stock method.
 table basic diluted income
 December 31, 2019 2018 options purchase 200,000 shares common stock not included-dilutive.
 Ended December 31,
 2018
 Net income $4,155 $4,661
 Weighted average common shares—basic 11,809 12,323
 Effect dilutive securities stock options
 12,035 12,510
 Net income per share—basic.
.


revenues
 billing location.
 100%.
 Americas U. S. Canada Latin America EMEA Europe Middle East Africa APJ Asia Pacific Japan.
 Americas 64%
 EMEA 21%
 APJ


Stock-Based Compensation
 December 31, 2018 $4. 1 million accelerated. March 2018
 2014 Purchase Plan unrecognized compensation expense
 accelerated recognized consolidated.
 December 31, 2019 $29. 5 million unrecognized
 unvested awards ESPP Amended 2014 Purchase Plan recognized
 2. 6 years.
 Ended December
 award
 Stock options $648 $1,353 $2
 Stock awards 14,882
 Employee stock purchase
 $16,529 $17,038
 category expense
 Cost revenue
 Sales marketing
 Research development
 General administrative
 $16,529 $17


. Property Plant Equipment
 Land $146,719 $144,136
 Buildings 962,559 849,975
 1,092,787 1,013,428
 Machinery,262,015 3,983,025
 Furniture 209,257 192,243
,234
,444,246 6,844,961
 4,110,496 3,646,945
 $3,333,750,198,016


Capital
 December 31, 2019 $19. 5 million cash equivalents $14. 8 million outside. foreign operations. taxes. repatriation taxes leave. increased $18. million 2018 repurchases common stock equity investment WeekenGO. cash working capital twelve months.
 non liabilities. $11. 2 million 2019 $4. 2 million adjustments non-cash $3. 8 million $3. 2 million increase. Adjustments $1. 3 million depreciation amortization $993,000 stock-based compensation $821,000 WeekenGO losses currency translation adjustment. $3. 1 million accounts payable.
 Net cash $5. 3 million 2018 income $4. 7 million adjustments non $2. 5 million $1. 9 million decrease. Adjustments $1. 8 million depreciation $915,000 stock-based compensation. decrease $1.5 million increase accounts receivable.
 taxes refunds 2019 2018 $4. 7 million $4. 3 million.
 Net investing 2019 2018 $1. 1 million $3. 7 million. 2019 $673,000 WeekenGO $474,000 property. 2018 $3. 1 million $752,000 $150,000 sale.
 financing 2019 2018 $9. 1 million $5. 3 million. $10. 8 million repurchases common stock $1. 7 million issuance. $5. 3 million repurchases common.
 2018
 operating $11,236 $5,317
 investing (1,147
 financing (9,106
 exchange rate changes cash 266
 increase $1,249 (4,540)


 table summarizes activity years 2019 2018
 recognized $0. 7 million $1. 4 million $1. 0 million compensation expense options. 2019 $2. million unrecognized compensation expense three years.
 intrinsic value closing stock price multiplied options. total value $11. 1 million $1. 4 million $1. 4 million. per-share-average value $5. 07 $4. 56 $4. 28,. aggregate intrinsic value $4. 9 million $8. 7 million.
 Number Shares Weighted-Average Price Per Share Contractual Term
 September 30 2016 3,015,374 $3.
 147,800 $7.
 $2.
 $3.
 30 2017 2,845,866 $4.
 $8.
 $2.
(88,076) $5.
 September 30 2018 2,806,364.
 409,368.
,384,647.
,183).
 September 30 2019 1,686,902.


£1. 5m. 4m scheme assets quoted market price active.
 return gain £5. 5m £1. loss.
 amounts Company Statement Financial Position
 value assets 59. 56
 liabilities.
 Retirement benefit 5. 3
 deferred tax.
 pension asset 4.


 Adjusted IFRS balances 15. Note 2.
 June 30
.
 Cash equivalents $1,268,441 $1,410,339 $244,420 $259,709
 Short-term investments 445,046 323,134 305,499 483,405
 assets 215,233 99,995
 Working capital 1,377,145 296,984
 Total assets 2,977,258 2,421,828 1,282,117
 Deferred revenue 468,820 342,871
 Derivative liabilities 855,079 207,970
 Exchangeable senior notes 853,576 819,637
 liabilities 2,411,791 1,514,508 379,424
 Share capital 24,199
 equity,467 907,320


. Investments
 IFRS 9 applied 1 April 2018 new classifications investments. IAS 39 classified investments available-for-sale loans receivables fair value profit loss. IFRS 9 reclassified fair value income profit loss amortised cost note 1. current figures reflect IFRS 9 prior year IAS 39.
 Investments amortised cost loans receivables sterling £2,687m US dollars £26m euros £499m other currencies £2m. investments liquidity funds £2,522m cash flows. prior years available-for-sale.
 31
 Non-current assets
 Fair value income
 Available-for-sale
 Fair value profit loss
 Current assets
 income
 Available-for-sale 2,575
 Investments amortised cost
 Loans receivables


Inventories Valuation
 first cost market value. selling price reduced costs disposal. conditions future results. Reductions valuation Cost revenue Consolidated Statements Operations. reviews inventory excess obsolescence future demand. historical information inventory cost. changes cost. future compared current values.
 components inventories
 March 31,
 Raw materials $3,445 $2,969
 Finished goods 6,356
 Total inventories $9,801 $9,222


Consolidated Financial Statements Fiscal Years Ended May 26, 2019 27, 2018 28, 2017 millions share amounts 2019 recognized pre-tax expenses Pinnacle Integration Restructuring Plan
 $163. 5 million charges cash outflows $4. 7 million non-cash charges.
 Pinnacle Foods
 cost goods sold $3.
 cost. 3.
. 110.
 Accelerated depreciation 4.
 Contract/lease termination.
 Consulting/professional fees.
 selling administrative expenses.
 selling expenses.
 Consolidated $1. $162. $168.


COMMON SHARES CLASS B SHARES
 articles amalgamation unlimited voting non-voting Class B without par value. rank equally dividends distribution assets BCE liquidated. No Class B shares outstanding December 31, 2019 2018.
 outstanding common shares BCE.
 Q1 2018 repurchased canceled 3,085,697 common shares $175 million. $69 million stated capital $3 million contributed surplus. $103 million charged deficit.
 CONTRIBUTED SURPLUS
 premiums share-based compensation expense.
 898,200,415,640
 acquisition AlarmForce
 employee stock option plan 4,459,559
 Repurchase common shares (3,085,697)
 Shares ESP 1,231,479
 DSP 16,729
December 31,182,200,415


Fiscal Year 2019 2018 Revenues
 Adjusted IFRS balances IFRS 15. See Note 2 financial statements details.
 revenues increased $329. 1 million 37% June 30 2019 2018. Growth increased demand new existing customers. 90% sales customer accounts 2018. customers increased 152,727 2019 from 125,796 2018.
 Subscription revenues increased $223. 3 million 54%. additional subscriptions base. cloud-based licenses Data Center expect subscription revenues increase higher perpetual license revenues.
 Maintenance revenues increased $68. 0 million 21% 2019 2018. renewal software maintenance contracts perpetual license.
 license revenues increased $10. 4 million 13% 2019 2018. additional licenses existing customers.
 Other revenues increased $27. 5 million 45%. sales third-party apps Atlassian Marketplace.

 2018
.
 Subscription $633,950 $410,694 $223,256 54%
 Maintenance 394,526 326,511
 license 93,593 83,171
 88,058 60,602
 revenues $1,210,127 $880,978 $329,149


Direct Financing Sales
 Teekay LNG 70% Teekay BLT Corporation Joint leases LNG carriers third party leases vessels. charters carriers direct financing leases. charters 2009.
 2013, acquired 155,900-cubic meter LNG carriers WilPride WilForce Awilco LNG chartered five- four-year-rate contracts one-year extension Awilco fixed-price purchase obligation. charters direct financing leases.
 2017 LNG contracts hire obligations December 2019. hire $10,600 $20,600 per day July 2017 December 2019 deferred added purchase obligation.
 contracts reclassified operating leases expiry November 2017 August 2018.
 2019 Awilco charters December 2019 60 days ownership Awilco.October 2019 Awilco approval financing purchase two LNG carriers.
 vessels derecognized lease receivables recognized LNG. recognized gain $14. 3 million derecognition December 31, 2019 included write-down loss sale statements. Awilco purchased vessels January 2020.
 21-year charter contract Bahrain Spirit storage unit commenced September 2018 direct finance lease. net investments financing
 December 31, 2019 estimated minimum lease payments Teekay LNG $324. 7 million $64. 2 million. $534. 6 million. leases end 2020 2039.
 December 31, 2018 lease payments Teekay LNG $63. 9 million $64. 3 million. $576. 5 million.
 Total minimum lease payments 1,115,968
284,277 291,098
 unearned revenue (613,394
 818,809 575,163
 (273,986)
 544,823 562,528


 Operating lease liabilities $15,049
 licenses 9,667 3,551
 Royalties 6,107 11
 Accrued interest 9,212
 36,936 38,412
 $76,971 $61,688


debt IFRS 16 lease liabilities
 reconciliation. breakdown balances Note 24. debt excludes IFRS 16 lease liabilities comparability years.
 2018
 debt 295. 235.
 IFRS 16 lease liabilities.
.


EBITDA Margin
 tables EBITDA Margin
 Software Solutions
 EBITDA $567. 2 million 2018 $516. 2017 $50. million EBITDA Margin 59. 0% 190. driven margins revenue.
 Data Analytics
 EBITDA $39. 5 million 2018 $38. 2017 $1. million 3% EBITDA Margin 25. 6% 30. driven margins revenue growth.
 $567. $50.
 Data Analytics.


 revenues decreased $1. 4 million 2019 2018. expenses decreased $203,000 2018 2019. due $503,000 decrease salary expense $303,000 member acquisition costs.
 Foreign currency movements. impacted loss $136,000 2019. loss $127,000 2018.
 Ended December
 Revenues $6,490 $7,859
 operations $(6,322)


Operating Metrics
 key performance indicators business. drivers significance.
 Net bookings In-game net bookings
 monitor net bookings analysis trends. Net bookings products services sold digitally includes license fees merchandise publisher incentives. equal to revenues excluding deferrals. In-game net bookings downloadable content microtransactions sold equal revenues.
 Net-game
 decrease 2019 due to
 $572 million decrease Blizzard net bookings lower bookings Hearthstone World of Warcraft expansion Battle for Azeroth no comparable 2019 increased Classic
 $239 million decrease Activision net bookings lower bookings Destiny franchise Call of Duty offset Sekiro: Shadows Die Twice Crash Team Racing Nitro-Fueled Call of Duty: Mobile March June
$55 million decrease King bookings lower Candy Crush offset increase advertising bookings.
 2019
 $539 million decrease Blizzard Hearthstone World of Warcraft
 $167 million decrease Activision lower Destiny Call of Duty: Mobile
 $131 million decrease King lower Candy Crush.
 Years Ended December 31,
 2019 2018 Increase
 Net bookings $6,388  $7,262  $(874)
 In-game bookings $3,366 $4,203 $(837


Operating Expenses
 table expenses percentages net sales consolidated statement
 2019 2018
 Research development $117,353. 2% $132,586 7.
 Selling administrative 272,257 19. 293,632 15. 4%
 charges
 Amortization intangible assets 13,760. 10,690.
 operating expenses $403,370 28. 2% $437,674 23.


Fees Paid Independent Auditor
 table fees billed Ernst & Young LLP services 2019 2018
 pre-approved by Audit Committee.
 billed Systemax Ernst Young
 annual financial statements 10-K
 audit internal control financial reporting
 attestation
 report services
 statutory regulatory filings.
 “Audit-related services related audit
 compliance obligations Section 404 Sarbanes-Oxley Act.
 Ernst & Young services tax compliance planning advice 2019 2018.
 services.
 Fee 2019 2018
 Audit fees 1,196,000 1,257,000
 Audit-related fees (2) 15,000
 Tax fees (3)
 All other fees (4)
 1,198,000 1,274,000


Borrowings
 fixed rate CMBS assessed market prices Level 1 27. unlisted floating rate borrowings equal Level 2.
 maturity profile debt lease
 borrowing agreements conditions repayment profile covenants pages 165 166
 31 December 2019 Group undrawn borrowing £238. 5 million £274. 2 maturing 2021 2022. £42. 1 million undrawn development finance.
 Repayable 65. 46
 two 901.
 2,114. 2,722.
 1,569. 2,155.
 4,651.


Free cash flow
 operating activities less purchase property equipment. liquidity measure information cash balance not residual cash discretionary expenditures. not U. GAAP.
 reconciliation net cash operating activities free cash flow
 adoption ASU 2016-09 2017 excess tax benefits share-based payments operating financing. standard retrospectively impacted presentation.
 Net cash operating activities $(156,832) $113,207  $64,241 $138,720 $141,257
 Purchase property equipment (36,531) (52,880) (89,160) (78,640),566
 Free cash flow $(193,363) $60,327 $(24,919) $60,080 $110,691
 investing activities $25,761 $17,496 $(28,718) $(392,666 $(170,027)
cash financing,406,287 $4,635,794 $368,953


Operating profit
. exceptional items acquisition costs intangible amortisation share-based payment $4. 3 million $19. 6 million.
. profit revenue.
 increased $15. 8 million. $92. 9 million 2019 $77. 1 million 2018. margin increased. 18 4. 2018
 profit $31. 1 million. $88. 6 million $57. 5 million. items lower 2019 $4. 3 million $19. 6 million 2018 exceptional items $13. 1 million last.
 Adjusted operating margin 1 2 %
 Networks.
 Assurance.
 Connected Devices.
.
.
.
 Acquisition costs.
 Acquired intangible asset amortisation.
 Share-based payment.
 operating profit 88.


Write-offs lease loan $15 $20 million. credit losses $14 million $2 million.
 average investment Americas EMEA Asia Pacific $138 million $55 million $73 million. immaterial.
 Americas EMEA Asia Pacific
 Lease receivables $ 3,827 $1,341,320
 Loan receivables 3,675 2
 balance $10,644 $5,016 $3,641 $19,301
 $10,498 $4,964 $3,590 $19,052
 $ 146 52 51 249
 Allowance credit losses
 1 2018
 Lease receivables $ 63 31 103
 Loan receivables 108 52 51
 $ 172 $ 61 $ 82 314
 Write-offs
 Recoveries
Provision 7 9
 (11)
 balance December 31, 2018 $ 158 65 56 279
 Lease 53 22 24
 Loan 105 43 179
 impairment $ 39 16 59
 $ 119 49 51 219


Company estimates values stock options Black-Scholes option-pricing model. 2019 2018 assumptions
 risk-free interest rate United States Treasury rate equity instrument. volatility share price common stock. dividend yield zero plans. determines expected term stock option awards simplified method vesting tranche term equal contractual term vesting period.
 December 31, 2019 compensation cost unvested stock options $0. 8 million expected 2. 3 years.
 Black-Scholes option pricing model assumptions
 Volatility.
 Expected term years
 Risk-free rate. 22%.
 Expected dividend yield.
 average grant date fair value per share $2.


Interest borrowings includes short long-term debt.
 6% increase finance costs lease liabilities IFRS 16 higher debt April 2019 acquisition 600 MHz spectrum licences offset $21 million loss discontinuation hedge accounting bond derivatives.
 Interest borrowings increased issuance senior notes offset higher borrowings lower-interest US CP program. Liquidity Financial.
 Loss repayment long-term debt $19 million loss $28 million repayment debt redemption premiums $900 million. 4 billion. 7% senior notes November 2019 September 2020. 8% 2018.
 exchange value $79 million net gains 2019 $136 million losses. US dollar-denominated commercial paper) program borrowings.
 offset $80 million loss change fair value derivatives debt risk.
December 31, 2018 ten-year bond derivatives. discontinued hedge accounting reclassified $21 million loss finance costs. extended bond forwards to May 31, 2019 redesignated hedges. December 2019 exercised remaining bond forwards.
 Liquidity Financial debt finance costs.
 FINANCE COSTS December 31
 2019 2018
 Interest borrowings 746
 post-employment benefits
 Loss repayment long-term debt
 foreign exchange
 fair value derivative instruments
 Capitalized interest
 Finance costs before interest lease liabilities
 Interest lease liabilities
 Total finance costs 840 793


. Data Centres
. business air emissions Group GHG electricity fossil.
. GHG inventory includes carbon methane nitrous oxide. 31 December 2019 carbon equivalent calculated Baseline Emission Factors Regional Power Grids China IPCC Guidelines National Greenhouse Gas.
. Diesel consumed backup power generators.
. Hazardous waste includes toner cartridge ink cartridge printing equipment. disposed suppliers. covers office buildings Mainland China.
. Non-hazardous waste domestic non. disposed property management companies kitchen waste recycling vendors estimation Domestic Discharge Coefficients. Non-hazardous waste centralised vendors all buildings.
. lead-acid accumulators. disposed waste recycling vendors.
. waste servers hard drives.servers hard drives recycled. centres.
 year 31 December
 GHG emissions 1 2) 743,287. 612,521.
 emissions 316.
.
 Indirect emissions 2),970. 612,484.
 Purchased electricity,970. 612,484.
 Hazardous waste.
 Non-hazardous waste 1,811. 1,350.


Transaction related parties
 Net revenues transactions 2019 2018 2017
 Cool Pool July 8, 2019 GasLog vessel charter contracts Pool. assumed responsibility management. ceased related party.
 Magni Partners Tor Olav Trøim founder partner Magni Partners (Bermuda) Limited ultimate beneficial owner. Receivables personnel services. payment services Tor Olav Trøim.
 Borr Drilling founder director Bermuda company NASDAQ. Receivables management administrative services.
 2020 Bulkers related party. Receivables management administrative services.
 2019 2018 2017
 Cool Pool 39,666 151,152 59,838
 Magni Partners
 Borr Drilling
 2020 Bulkers
 39,615 150,777 59,578


. Prepaid expenses
 October
 Parts supplies $33,617 $28,287
 insurance 8,859
 expenses 14,455
 $56,931 $43,240


Uncertain Tax Positions
 unrecognized tax benefits
 $2. 1 million no tax rate. accrued interest penalties not significant December 29, 2019 2018 31, 2017.
 Company not tax examination net operating loss credit carryforwards adjusted Internal Revenue statute. unrecognized tax benefits change twelve months.
 subject. federal income tax. states foreign jurisdictions. tax years 1999 open examination unused operating losses tax credits.
 2017
 Beginning balance unrecognized tax benefits $2,161 $2,107 $2,014
 Additions prior
 current
 Lapse statutes limitations
 Ending balance $2,117 $2,161


Profitability
 Net income
 2018 $16. million $7. 9 million last year. increase $28. million gain legal settlement LoJack. offset higher tax expense. foreign taxes. revaluation deferred income tax assets Tax Cuts Jobs Act 2017.
 Adjusted EBITDA
 Telematics Systems increased $1. 5 million higher MRM products revenue. Software Subscription Services increased $5. 2 million lower selling marketing expenses general administrative expenses.
 Note 20 reconciliation EBITDA GAAP net income.
 Fiscal years
 Telematics Systems $48,943 $47,432 $1,511.
 Software Subscription Services 8,233 5.
 Satellite.
 Corporate Expense (4,794).
 Adjusted EBITDA $52,382 $49,368 $3,014.


ADVANCED INDUSTRIES. FINANCIAL STATEMENTS
 February 2018 acquired Trek. Tokyo Lockport New York $6. 1 million. 95% U. S. subsidiary.
 Trek Electrostatic Product Line LumaSense
 $11,723 $3,000 $94,946 109,669
 cash (5,651)
 purchase price $6,072 $3,000 $84,684 93,756


PROPERTY EQUIPMENT
 depreciation expense $9. billion. $6. billion. committed $4. billion buildings leasehold June 30 2019.
 Land 1,540 1,254
 Buildings improvements 26,288 20,604
 Leasehold improvements 5,316
 Computer 33,823
 Furniture
 71,807 58,683
 depreciation,330
 $ 36,477


. Calculation return capital
 income before tax annualized. Average capital employed balances quarterly.
 interest expenses corporate debt hedging activities corporate assets.
 millions € 2019
 Net income 5,648 6,120
 interest expenses (529) (482)
 763 721
 pensions
 148
 Interest adjustments
 Taxes interest adjustments
 30%
 Income before after tax 5,916 6,401
 Average capital employed 53,459 50,715
 ROCE. %.


Segment Financial Results
 table revenues
 Corporate Other deferred adjustments.
 Software Solutions
 Revenues $962. million 2018 $904. million 2017 $57. million 6%. servicing software increased 7% $52. million loan growth. origination software increased 3% $5. million loan origination system license fee lower Exchange eLending 26% decline refinancing originations.
 Data Analytics
 Revenues $154. million 2018 $151. million 2017 increase $2. million 2%. property data listing service offset revenues license deals 2017.
 December 31
 Software Solutions $962. $904
 Data Analytics.
 Corporate.
 $1,114. $1,051.


Cash Flow
 non-IFRS measure less.
 increased $140. 9 million year 2019 $154. 9 million offset $14. million increase capital expenditures.
 Capital.
 Year June 30
 Net cash activities $466,342 $311,456 $199,381
 Capital expenditures (44,192)
 Free cash flow $422,150 $281,247 $184,252


Balance Sheet Components
 Prepaid expenses
 December
 expenses $2,303 $1,780
 assets
 expenses $2,496 $1,947


Seasonality
 sales income cash flow vary lowest fourth quarter. seasonal purchase patterns network operators.
 three-year average seasonality
 First Second Third Fourth
 change sales -25% 11% 4% 17%
 annual sales 22% 24% 29%


IFRS cash
 cash £35. million.
 operating £11. million £91. 5 million lower 2018 reduction earnings £65. million settlement interest rate swaps £52. 4 million offset working capital £32. 2 million.
 investing disposal £96. million £75. 3 million offset capital expenditure £127. million.
 financing net borrowings repaid.
 flows
 operating.
 investing.
 financing.
 change cash equivalents.


tax effect differences deferred tax assets liabilities
 liability tax benefits May 26, 2019 $44. 1 million excluding $11. 7 million interest penalties. $1. million tax positions deductibility uncertainty timing. disallowance shorter deductibility period tax rate payment cash. interest penalties tax rate. May 27, 2018 liability tax benefits $32. 5 million excluding $7. 7 million interest penalties. $1. 2 million 2019 $1. 6 million 2018 $0. 3 million 2017.
 Consolidated Financial Statements Years May 26, 2019 27, 2018 2017
 Assets Liabilities
 Property plant equipment.
 Inventory.
 Goodwill trademarks intangible assets.
 Accrued expenses.
 Compensation liabilities.34.
 Pension benefits 54. 6 45. 8
 subsidiaries 185. 165.
 tax deductions 123. 109. 7
 capital loss 766.
 Federal credits 18. 3.
 37. 24. 23.
 1,063. 1,637. 722.
 Valuation.
 deferred taxes $325. $1,637. $257. $722.


Long-lived assets property equipment
 No country U. S 10% January 31, 2020 February 1, 2019
 solutions
 Software-Defined Data Center
 Hybrid Multi-Cloud Computing
 Digital Workspace—End-User Computing
 develops markets. synergies leveraged. bundled sold. determine revenue.
 January 1, 2020 February 1, 2019
 United States $860 $849
 International
 Total $1,069 $962


 Group domiciled UK tables detail revenue location trade receivables non-current assets deferred tax
 large no customers greater 10% total revenue.
 Revenue £m
 UK 349. 324.
.
 Total revenue 355. 330.


Systems profit margin increased. 53. percent 2019. driven cost structure IBM Z hardware operating systems margin improvement Storage Systems.
 Pre-tax income $701 million declined. 4 percent margin 8. 4 percent decreased. declines Power Storage Systems revenue investment innovation new hardware launches.
 year December 31. Margin
 Hardware profit $2,622 $2.
 margin 44. 3% 40. 7%.
 Software $1,412.
 83. 8%.
 profit $4,034 $4,002.
 53. 1%. 8%
 Pre-tax income $701 $904.
. 4%.


presents obligation future purchases property equipment lease commitments.
 Capital expenditure operating lease commitments reporting date
 include contingent turnover rentals retail. rentals calculated turnover.
 Group leases retail warehousing facilities 40 years. Norwest office distribution centres. agreements five 25 years renewal options terms. property taxes insurance maintenance expenses. recent lease agreements gross semi-gross exposure operational charges.
 1 July 2019 adopted AASB 16 Leases operating lease commitments recognised Consolidated Statement Financial Position exception service component lease payments. Note 1. reconciliation operating lease commitments 30 June 2019 lease liabilities 1 July 2019.
 Capital expenditure commitments
 Estimated capital expenditure contracts payable
capital expenditure
 lease
 rentals
 one year 1,998 2,089
,484
 12,378 13,331
 lease commitments 21,791 22,904
 22,189 23,320


December 31, 2019 Company foreign subsidiaries deferred tax assets. reduced net operating loss deferred tax assets valuation allowance $19. 7 million.
 accrued $2. 7 million December 2019 2018 excluding unrecognized tax benefits-term income tax Balance Sheets. $2. 7 million tax rate 2019 2018. benefits next twelve months.
 recognizes interest penalties. $1. 1 million $0. 6 million accrued December 31, 2019. million. 4 million statutory penalties. penalties Statements 2019 2018 2017 $0. 4 million $0. 7 million $. million.
 tabular reconciliation unrecognized net tax benefits
 Balance $2,720 $1,342 $8,531
 tax position increases 2,950
 Decreases settlements tax authorities
statute (1,310 (466)
 Foreign currency 4,142
 $2,711 $2,720 $1,342


. Note 13,. majority less 1%.
 Ended June 30
 Processing $594,202 $550,058 $506,555
 Outsourcing Cloud 405,359
 Delivery 231,982 251,743
 In-House Support 321,148 307,074,203
 958,489 920,739 $881,735
 Revenue $1,552,691 $1,470,797 $1,388,290


 last triennial actuarial valuation performed independent actuary 30 April 2018 projected unit method. valuation updated to 31 March 2019. no changes valuation methodology.
 principal financial assumptions liabilities IAS 19
 reflect nature term Scheme’s liabilities.
 Discount rate scheme liabilities 2. 45 2.
 CPI inflation.
 RPI inflation 3.
 Pension increases
 1988 2.
 5.
 3.


. Goodwill Assets
 Company impairment test 2019 no impairment.
 changes goodwill Electronics Diversified 2019 2018
 $8. 2 million goodwill reallocated DMS EMS.
 Balance August 31, 2017 $52,574 $555,610 $608,184
 Acquisitions 30,763 (8,186) 22,577
 currency rates (2,349)
 Balance August 31, 2018 82,670 545,075 627,745
 (4,788),490
 Balance August 31, 2019 $81,968 $540,287 $622,255


Audit Non-Audit Fees
 PricewaterhouseCoopers LLP annual financial statements June 29, 2019 30 2018 services.
 Audit Fees financial statements internal control Sarbanes-Oxley Act 2002 reviews Quarterly Reports Form 10-Q statutory regulatory filings. 2019 RPC Photonics. 3Z Telecom. 2018 AvComm Wireless Cobham plc Trilithic.
 Audit-Related Fees due diligence acquisition activities.
 Tax Fees 2019 2018 transfer pricing consulting tax audits planning consulting.
 Other Fees software subscription fees.
 2019 Audit Committee PricewaterhouseCoopers LLP.
 2018
 Audit Fees $3,631,575 $3,784,488
 Audit-Related Fees (2)
 Tax Fees (3) 169,776 61,592
Fees
 $3,805,851,208,680


share capital reserves
 Consolidated Statement Changes Equity pages 151 152
 reserve £1. 4m credit earnings.
 1st January 2019 31st December 2019
 reserve 30.
 investment hedge reserve.
 Cash flow hedges reserve.
 Capital redemption reserve.
 Employee Benefit Trust reserve.
 reserves 22. (10


November 2016, FASB show changes cash equivalents restricted cash flows. effective after December 15 2017. retrospective transition method. adopted first quarter fiscal 2019 consolidated financial statements.
 October 2016, FASB recognize income tax effects intercompany sales transfers
. effective
 after December 15 2017. modified retrospective transition method. adopted
 fiscal 2019 consolidated financial statements.
 August 2016, FASB diversity cash receipts payments cash flows. after December 15 2017. retrospective transition method. 2019 consolidated financial statements.
 January 2016, FASB equity investments measured fair value changes recognized net income. impacts financial liabilities fair value presentation disclosure requirements classification measurement financial instruments. effective after December 15 2017.cumulative-effect adjustment balance sheet fiscal equity securities values amendments. adopted first quarter 2019. amendments consolidated financial statements.
 reconciliations benefit cost consolidated statements 2018 2017
 Twelve Months Ended September 29, 2018: Adjustments
 Cost Sales $34,926
 Selling Administrative $2,071
 Operating Income $3,055 $3,032
 Other Expense $310
 Twelve Months Ended September 30
 Cost Sales $33,177,198
 Selling Administrative $2,152
 Operating Income $2,931
 Other (Income Expense $303


. Property Equipment
 $1,949 $2,185
 Buildings improvements 138,755 129,582
 Equipment fixtures 307,559,537
 38,466 41,883
 Transportation
 Construction
,379 475,076
 depreciation,389 339,658
 $125,990 $135,418


ADVANCED. FINANCIAL STATEMENTS share
 9. ACCOUNTS RECEIVABLE
 net value.
 Amounts billed invoiced doubtful accounts. short term financing.
 Unbilled receivables obligations inventory. invoiced consumption. unbilled receivables invoiced collected next twelve months. financing.
 December 31, 2019 31, 2018
 Amounts billed $227,528 $80,709
 Unbilled receivables 19,036
 Total receivables $246,564 $100,442


summary cash flows operating investing financing 2019 2018. 2017 omitted Annual Report 10-K.
 Financial Condition Capital Annual Report 2018 February.
 Cash Flows
 $78. 3 million 2019. positive $101. 1 million non-cash expenses $16. 9 million assets liabilities offset net loss $19. 9 million deferred income taxes benefits stock-based compensation $19. 8 million.
 Non-cash depreciation amortization property equipment leased-use $66. 4 million stock-based compensation $32. 1 million.
 exited leased facilities assets 9. 2 million leasehold improvements $1. 4 million offset gain extinguishment lease liabilities 10. 4 million.
 cash $102. 7 million 2018. $100. 3 million non-cash expenses $28.assets liabilities offset net loss $26. 2 million.
 Non-cash depreciation amortization property assets $79. million stock compensation $31. 7 million impairment assets $2. 2 million offset deferred income taxes $12. 1 million excess tax benefits stock awards $2. million.
 Investing
 $7. million. $6. 9 million purchases property. $7 million. million
 Financing
 $53. 4 million. prepayments $50. million $12. million minimum tax withholding $8. 6 million proceeds common stock.
 $93. 8 million 2018. $93. million prepayments $7. 6 million minimum tax withholding $6. 8 million proceeds.
 $92. 7 million cash equivalents December 31, 2019 operating requirements twelve months. repaid $213.million debt. credit agreement permits request incremental loans not exceed $160. million adjustments unlimited amount compliance leverage tests.
 Incremental loans subject conditions commitments. term loan facility seven-year term interest Adjusted LIBOR or Adjusted Base Rate fixed margin.
 cash equivalents affected equity bonus program employees. 2019 issued. 3 million-tradable shares common stock bonus 2018. expect similar equity-based plan 2019 compensation committee payment cash stock.
 may need raise additional capital indebtedness initiatives acquisitions.
 future capital requirements depend revenue growth expansion engineering sales marketing market acceptance investments acquisitions. Additional funds available.
 unable raise funds sustain operations execute strategic plans.
 Years Ended December 31,
 2018
 thousands
$78,348 $102,689
 investing (6,973 (7,825)
 financing (53,383,784
 exchange rate 934 (1,301
 $18,926 (221)