. SHARE-BASED EMPLOYEE COMPENSATION
 Stock incentive plans offer share-based compensation plans motivate officers employees directors financial success.
 administered by Compensation Committee approved by stockholders. terms conditions awards determined Committee exercise price expirations vesting restriction sales forfeitures. issue new shares stock issuances.
 Amended 2004 Stock Incentive Plan authorizes issuance,600,000 shares stock options appreciation rights purchase rights bonuses units performance units employees directors. 1,677,983 shares September 29, 2019.
 deferred compensation plan for non-management directors. amounts converted to stock equivalents. settlement separation. issuance 350,000 shares.,122 shares available September 29, 2019.
 Compensation expense
Nonvested issued executives directors. Senior Vice Presidents. retirement. 60,272 RSUs September 2019.
 Nonvested units $5,458,737 $5,873
 Stock options 936 1,790 1,826
 Performance share awards 1,417 2,580
 Non-management directors’ deferred compensation 263
 compensation $8,074 $9,146 $10,637


Teradyne’s deferred tax assets December 31, 2019
 deferred taxes majority. valuation allowance $77. 2 million $69. 9 million operating losses tax credit carryforwards uncertainty. Adjustments.
 Deferred tax assets
 Tax credits $79,480 $69,091
 Accruals 25,424
 Pension liabilities 24,459
 Inventory valuations 18,572
 Deferred revenue 7,622
 Equity compensation 7,042
 Vacation accrual 4,768
 Investment impairment
 Net operating loss carryforwards 2,705
 Marketable securities
 Gross deferred tax assets 174,836 158,277
 $97,659 $88,425
 Depreciation $(18,238) $(14,028)
Intangible,705
 deferred tax liabilities,239)
 deferred assets $61,115,186


Contract Liabilities
 payments revenue. changes
 revenue prepayment contracts activation fees.
 Ended December 31,
 balance $11,176 $12,678
 Revenue deferred acquired 6,127 3,954
 Revenue (6,805) (5,456
 End period balance $10,498 $11,176


Stock-Based Compensation
 statements
 January 31, 2020 unrecognized compensation cost stock options restricted stock $1. 8 billion recognized 2024 1. 5 years. compensation VMware equity awards recognized statements periods.
 January 31, 2020 February 1 2019 2018
 license
 subscription SaaS
 services 83
 Research development
 Sales marketing 293
 General administrative
 Stock-based compensation 1,017
 Income tax benefit
 compensation net tax $670 $547


Results Operations
 items consolidated statements operations. changes December 31, 2018 2017 omitted Annual Report Form 10-K 7.
 Discussion Analysis Financial Condition Results Annual Report 2018 filed SEC February 5, 2019 available website.
 Net Revenue. sales radio analog mixed-signal circuits home infrastructure industrial multi-market applications. sales distributors resell products.
 Net Revenue. finished silicon wafers outsourced packaging assembly test shipping personnel manufacturing assets inventory production mask costs load boards sockets occupancy costs.
 Research Development. personnel stock compensation product engineering packaging test computer-aided design intellectual property design testing evaluation depreciation occupancy costs.
 new refinement test methodologies. costs expensed incurred.
.Selling administrative expense personnel stock compensation amortization assets sales commissions engineering travel consulting fees legal fees depreciation occupancy costs. Impairment Losses. assets.
 Restructuring Charges. severance lease leasehold impairment restructuring plans. Interest Income. cash equivalents balances. expense accrued debt. Other income non-operating transactions.
 Income Tax Provision. estimates income tax expense. revenue expenses realizability.
 table consolidated statement operations data net revenue
 Net revenue 100%
 Cost revenue
 Gross profit 53
 Operating expenses
 Research development 31
 Selling general administrative
 Impairment losses
 Restructuring charges
 Total operating expenses 60
 Loss operations
 interest income
(10)
 benefit
 Net loss (6)


Equity Awards Fiscal Year End
 table summarizes equity awards executive officers December 31, 2019
. Options. Price Expiration Date
 Garo. $1. April 16 2026
. 184,028 65,972. October 16 2027
 Alexander. 100,000. February 12 2026
 Alexander. 140,000. April 15 2026
. 55,208 19,792. October 16 2027
. 41,667. February 1 2029


.
 Company operates development marketing network infrastructure equipment. Revenue attributed location. three Americas EMEA Europe Middle East Africa APAC. CEO reviews financial information allocating resources evaluating performance.
 Note. Revenues regions location.
 long-lived assets attributed regions
 Assets
 2019
 2018
 Americas $136,035 $178,251
 EMEA 28,744 15,106
 APAC 11,529
 Total $176,308 $203,253


Trade payables
 liabilities advance payments. £8. 3m 31st December recognised 2019 £3.
 Trade payables 57.
 Contract liabilities 8.
 Social security 5.
 payables 37.
 64. 58
 trade payables 174. 167.


. Audit non-audit services fees paid KPMG LLP 31 March 2019. 2017 2018 fees PricewaterhouseCoopers LLP.
 audit parent company consolidated financial statements Sarbanes-Oxley Act. audits subsidiary companies. excludes BT Group Employee Share Ownership Trust Ilford Trustees (Jersey) Limited £32,000.
 £446,000 fees PricewaterhouseCoopers LLP 2017/18 subsidiary accounts IAS 19 accounting valuation retirement benefit obligations not 2019 balances.
 Services statutory filings auditor. review interim results regulatory financial statements US debt shelf registration. tax returns audits monitoring enquiries.
 taxation advisory services. KPMG LLP new IFRS 15 revenue accounting standard April 2018. non-audit services.
 KPMG LLP IFRS 15 revenue standard.
Fees non-audit services advisory.
 31 March £000
 Fees auditors associates
 Audit services
 parent company financial statements 8,165 5,418 4,316
 subsidiaries
 14,226 11,295
 assurance services 2,236 1,771 1,865
 non-audit services
 Taxation compliance services
 advisory services
 assurance services
 2,332
 3,009
 17,420 13,869 14,865


. Financial instruments risk management
 main purpose Group’s instruments receivables contractual provisions lease liabilities fund liquidity requirements.
 financial assets liabilities amortised cost except forward foreign currency exchange contracts corporate owned life insurance $3. 0 million (2018 $2. 4 non. table
 Group enters derivative transactions foreign currency exchange contracts.
 objective treasury department financial risks ensure liquidity. treasury activity formal control framework. Board treasury policies guidelines reviews. speculative treasury transactions forbidden.
 Non-current trade receivables.
 Cash equivalents.
 Current trade receivables.
 financial assets.
 322. 252.
 Non-current payables excluding government grants.
 Current trade payables accruals.
Lease liabilities 26.
 Contractual provisions 28.
 Financial liabilities.


assumptions pension benefit obligations
 Canadian post-retirement plans trend rates 2019 2024. 75% 2029 3. 57% 2040.
 Actuarial benefit obligation
 3. 20%. 95%. 80%. 4.
 Benefit costs
. 90%. 90% 4. 60%. 25%. 60%
 Future salary growth 2.
 Health care cost trend. 49% 5. 49%.
 medical trend rates 4. 4. 56%.


table summarizes stock compensation expense statements
 2019 granted 33,000 shares employees 55,000 officers Chief Executive Officer
 directors. 2018 granted 12,000 employees officers 30,000 Chief Executive Officer
 directors.
 measures value nonvested stock awards market price common stock. Black-Scholes option-pricing model. assumptions volatility stock price risk-free interest rate expected life. dividend yield divided per share closing share price. equity compensation awards 2019 2018 nonvested.
 Years
 2018
 Cost sales $7 $5
 Engineering development
 Selling administrative 736
 $792 $691


Equity net earnings
 decrease Golar Partners performance 2018. recognized impairment charge $149. 4 million. 2017 loss disposal $17. 0 million dilution Golar Partners. December 2018 32. 0% (2017 31. 8%) ownership Golar Partners 2% 100% IDRs.
 net earnings affiliates equity Egyptian Company Gas Services. Avenir LNG. recognized negative goodwill $3. 8 million earnings bargain purchase Avenir. note 14 "Investment Affiliates details.
 2017
 net earnings Golar Partners 7,001 17,702 (10,701
 Impairment investment (149,389
 Net loss disposal
 net earnings other affiliates 3,711 2,918 368%
,677


financial information consolidated balance sheets
 2016, sale colocation business data centers reclassified $1. 1 billion property plant equipment $1. 1 billion goodwill assets. Note 3—Sale Data Centers Colocation Business 8 II.
 2019 2018 recorded non-cash goodwill impairment charges $6. 5 billion $2. 7 billion.
 2015, adopted ASU 2015-03 Debt ASU 2015-17 Deferred.
 2019 adopted ASU 2016-02 “Leases. restated information ASC 842.
 long-term debt maturities lease obligations $305 million December 31, 2016 assets sale. Note Long-Term Debt Credit Facilities. obligations Financial Condition Contractual Item 7 Part II.
 December 31,
 millions
property $26,079 26,408 17,039 18
 21,534 28,031 30,475,742
 64,742 70,256,017
-term 34,694 19,993 20,225
 equity 13,470 19,828


Disaggregation revenue
 transition grouped products. Strategic Clustered ONTAP E-Series SolidFire converged infrastructure ELAs software. Mature 7-mode ONTAP add-on hardware software. Mature Strategic disk hybrid flash storage media. software hardware professional services global support customer education training.
 table disaggregation revenue products services
 Revenues region Note 16 Segment Geographic Customer Information
 Product revenues $ 3,755 3,525 3,060
 Strategic 2,709,468
 Mature
 Software maintenance
 Hardware maintenance 1,445 1,492
 contracts 1,182 1,214
 Professional services 263
 Net revenues $ 6,146


 activity
-average grant 2019 2017 $55. $46. $37. 99. total $58. 4 million $49. 9 million $37. 2 million.
 Unrecognized compensation expense $127. 2 million December 31, 2019 recognized. years.
 Unvested shares December 31, 2018 4,117 $41.
.
 Forfeited.
.
 Unvested shares December 31, 2019 3,756 $47.


 December 31, 2019
 no off-balance sheet arrangements.
 requirements.
 Payments
 2021 2023-2024 2025
 Long-term debt $111,586 $2,807 $5,876 $102,903
 Operating lease payments 37,610 4,467 8,764 16,566
 Retirement obligations 6,447 2
 $155,643 $8,031 $16,069 $112,044 $19,499


9. Non-current assets property plant equipment
 secured finance leases
 note 24.
 Accounting policy
 cost less accumulated depreciation impairment losses. includes expenditure acquisition. costs separate asset future economic benefits measured.
 Plant equipment depreciated leasehold improvements amortised over estimated useful lives straightline method. Assets finance lease depreciated over useful lives term lease.
 US
 Leasehold improvements cost 7,754 5,181
 Accumulated depreciation
 Plant equipment cost 6,472 5,298
 depreciation
 equipment lease
 depreciation


 policy. energy use GHG emissions electricity fuel 2018 2019 October 30 Greenhouse Gas Protocol. 8 manufacturing 11 non sites. 5% global Scope 1 2 emissions mandatory GHG reporting.
 Fleet diesel excluded. Transportation operated
 third party Scope 3.
 Carbon emission factors grid electricity marketbased method
 page 19.
 Biogas 17,045
 Natural gas 238,081
 Fuel oils
 Electricity 195,796
 Heat steam 212,482 272,985
 Total energy 408,280 469,950
 Scope 1 emissions 48,178 56,533
 Scope 2 emissions


Shareholding ten shareholders
 shares traded daily. consolidated number.
 April 1 2018 March 31, 2019
.
. Life Insurance Corporation 75,384,947. 152,493,927.
. SBI Mutual Fund 7,056,720. 21,680,561.
. Investments Investors 15,054,489. 19,248,438.
. 6,497,754. 18,028,475.
. Oppenheimer Developing Markets Fund 7,996,009. 16,731,906.
. Prudential Life Insurance Company 3,886,141.,139,316.
. Mutual Fund 4,055,256.,244,614.
. Abu Dhabi Investment Authority 6,296,384.,036,984.
. Vanguard Emerging Markets Stock Index Fund 7,595,080.14,112,213.
. 6,179,273. 13,978,944.


GitHub results October 25, 2018.
 Includes $2. 6 billion income tax benefit property $157 million charge Tax Cuts Jobs Act increased income earnings $2. 4 billion. 12.
 $13. 7 billion charge TCJA decreased income EPS $13. billion $1. 75.
 new accounting standards 2018.
 LinkedIn results December 8 2016.
 Includes $306 million employee severance expenses marketing restructuring decreased operating income EPS $306 million $243 million.
 $630 million impairment charges $480 million restructuring charges decreased income EPS $1. billion $895 million.
 $7. 5 billion goodwill impairment charges $2. 5 billion integration restructuring expenses decreased EPS $10. billion.

 June 30 2019
 Revenue 125,843 110,360 96,571 91
 Gross margin 82,933 72 62 58,374 60
 income 42,959 35,058 29,025
 Net income 39,240 16,571 25,489 20,539 12,193
 earnings share.
 dividends.
 investments 133,819,240
 assets 286,556 258,848 250,312 174,303
 Long-term obligations 114,806 117,642 106,856 66,705 44
 Stockholders’ equity 102,330 82,718 87,711 83,090


table base salary FY19.
. Kapuria executive officer FY19 received salary increase. increased $390,000 to $440,000 May 8, 2018.
 executive officers increase promotion. CEO NEOs increase. Board determined. Clark salary increase FY19.
 Annual Salary
 Gregory S. Clark 1,000,000
 Nicholas. Noviello 650,000
 Amy. Cappellanti-Wolf 440,000
 Samir
 Scott. Taylor 600,000


Vesting Equity Awards 2019
 equity awards executives. Restricted units.
 time-vested performance-based equity awards. 2019 Compensation Program.
 closing price Common Shares vesting date.
 Stock Vested 2019
 Shares Acquired Value Realized Vesting(2)
. Storey 1,063,929 $13,479,617
. Dev 55,490 749,737
. Goff 114,167 1,338,934
. Trezise 71,576 812,600
. Andrews 16,678 221,859


FAIR VALUE
 price sell asset transfer liability transaction measurement.
 estimates affected by future cash flows discount rates risk. Income taxes expenses disposition financial instruments not reflected in values. not net amounts settled.
 values cash equivalents trade receivables dividends accruals compensation severance costs interest notes loans approximate fair value short-term.
 table provides fair value details financial instruments amortized cost.
 IFRS 16 January 1, 2019 fair value disclosures required for leases
 FAIR VALUE METHODOLOGY
 CRTC tangible benefits obligation Trade payables future cash flows discounted interest rates
 CRTC deferral account obligation
securities long market price 18,653 20,905,188 19,178
 Finance leases long-term future cash flows interest rates 2,097 2,304


. Creditors due year
 creditors non settled 30 60-day terms. non-interest.
 Directors carrying amount approximates fair value.
 £ million
 Trade creditors 2.
 subsidiaries 90. 84.
.
 Deferred income.
 Lease liabilities.
 taxes social security costs.
 Government grants.
 102. 95.


segment
 Note financial statements Item 8 Part II.
 Ended December
 Adjusted EBITDA
 International Global Accounts $2,286 2,341
 Enterprise 3 3,522
 Small Medium Business 1,870
 Wholesale 3,666
 Consumer 5,105
 EBITDA $15,987 16,647 12,560
 Operations Other EBITDA (7
 adjusted EBITDA $8,771 8,602


Endeavour Drinks BWS Dan F19 Online. Sales increased. $8. 7 billion comparable sales 2. 3%. market subdued declining volumes price mix improvements. H2. 8%. 0%. 7% H1. New Year’s Day boosted sales Q3 stable weather. Dan convenience.
 BWS Woolworths Rewards. network 1,346 stores 30 new Renewal. On Demand delivery stores double‐digit sales growth. Jimmy Brings Brisbane Gold Coast Canberra Sydney Melbourne.
 Dan Murphy’s double‐digit On Demand delivery 91 stores 30‐minute Pick up. wine merchants loyalty program 15%. store network 230 three new openings Q4 solar.
 Endeavour Drinks sales metre increased 3. 2%. 7%.
 Gross margin 22.14 bps trading margin freight costs petrol online delivery category mix.
 CODB grew 64 bps $21 million impairment Summergate. ExportCo. CODB sales increased 40 bps above‐inflationary cost pressures targeted investment customer experience ranging data analytics.
 Endeavour Drinks EBIT F19 decreased. 2% $474 million. Summergate impairment $21 million decreased. 6%. ROFE declined 148 bps EBIT.
 management New Zealand Wine Cellars transferred Endeavour Drinks New Zealand Food. prior period re‐presented current.
 Sales 8,657.
 EBITDA.
 Depreciation amortisation.
 EBIT 474.
 Gross margin 22.
 Cost business 17.
 EBIT sales.
Sales square metre 18,675. 2%. 4%
 Funds 3,185 3,214.
. (215)


financial statements Group income statement
 group retirement benefit arrangements.
 removal future indexation obligations pension plans 2017/18. employees impacted closure BTPS receive transition payments BTRSS. no past service cost credit closure service benefit link.
 High Court judgment Lloyds Banking defined benefit pension schemes liability equalise benefits GMPs.
 2019 2018 2017
 Year 31 March £m
 Service cost administration expenses PPF levy
 defined benefit plans 135 376
 Past service credit
 611 624 521
 Costs close BT Pension Scheme transition employees
 Cost equalise benefits guaranteed minimum pension
 Net interest expense pensions deficit 139 218 209
 799 842 730


 information impairment refer note 8.
 capitalized dry-docking costs USD 60. 7m 67. 5m 2017: 68. 1m.
 sale leaseback transactions 2019 financing arrangements assets control Group.
 Vessels capitalized dry-docking
 1 January 1,886. 1,726. 1,697.
 81. 162. 103.
. -30
 prepayments 252. 81.
 -130. -54. -59.
 31 December 2,064. 1,886. 1,726.
 Depreciation
 January 327. 264. 180.
.
 106. 113.
 Transferred assets.
 31 December 360. 327. 264.
 1 January 162. 167. 173.
 losses fixed assets 6. 3.
 Reversal -120.
 Transferred assets.
 31 December 28. 8 162. 167.
 1,674. 1,396. 6 1,294.


income taxes Federal rate
 effective income tax rate 18. 9% (141. 8)% 2019 2018. decrease 2019 21% due deferred tax adjustments foreign tax credit state taxes valuation allowance excess tax benefits non stock options.
 tax rate impacted increase valuation allowance deferred tax assets.
 Federal statutory tax rate 21. 0%
 State taxes.
 Non deductible expenses.
.
 Expired tax credit.
 Deferred tax adjustment.
 Stock based compensation.
 Valuation allowance.
 purchase revaluation.
.
 18.


. Property Plant Equipment
 June 30 2019
 $35. $34.
 Buildings equipment 512. 500.
 2,183. 2,129.
 Construction 150.
 2,882. 2,747.
 depreciation amortization 1,516. 1,434.
 $1,366. $1,313.


. Earnings Per Common Share
 based weighted-average. Diluted EPS reflects potential dilution issuance compensation conversion preferred stock.
 table diluted EPS
 acquisition Hawaiian Telcom 2018 issued 7. million Common Shares. granted. 1 million restricted stock units Telcom employees 2010 Equity Incentive Plan
 December 2019 2018 net loss stock equivalents excluded EPS. 2017 compensation plans. 2 million excluded. preferred stock convertible. 9 million shares excluded anti-dilutive.
 Year Ended December
 Net (loss) income $(66. 6) $(69. 8) $40.
 Preferred stock dividends.
 Net (loss) income basic diluted $(77. $(80. $29.
 Weighted-average common shares.46. 42.
 Stock compensation arrangements.
 shares.
 diluted earnings common share$1. 53)$1. 73.


. Segment Geographic Customer Information
 operate industry design manufacturing marketing high-performance storage data management solutions. business globally sales support managed geographic. management reviews financial information disaggregated information allocating resources evaluating financial performance. allocate research development sales marketing administrative expenses regions.
 Summarized revenues geographic region
 Americas revenues commercial U. public sector markets. Sales. $3,116 million $2,878 million $2,721 million 2019 2018 2017.
 United States Canada Latin America $ 3,425 $ 3,207 3,021
 Europe Middle East Africa 1,847 1,741
 Asia Pacific 874
 Net revenues $ 6,146


Comprehensive Income
 loss June 30 2019 activity
 after-tax gain.
 revenue $9. 6 million gain cost goods $5. 0 million loss expenses $1. 7 million loss other income expense $0. 1 million loss.
 Tax June 30 2019 24 2018 25 2017.
 Foreign Currency Translation Adjustment Gains Losses Cash Flow Hedges Gain Loss Investments Components Benefit Plans Total
 Balance June 24, 2018 $(32,722) $(4,042),190,495 $(57,449)
 income reclassifications (9,470) 2,860,153
 Losses reclassified income 2,822 (2,749
 Effects ASU 2018-02 adoption
(6,648) (288) 3,336,981
 June 30(39,370,330 $2,146,476,030


 granted Directors executives employees 2016 2011 Plans service-based. table activity March 2019
 weighted-average grant date value closing price. 2019 197,917 47,146 withheld issued treasury. withheld returned treasury.
 Value
 April 1, 2018 243,354 $10.
 Granted 265,452.
 Vested (197,917).
 Forfeited (73,743).
 March 31, 2019 237,146 $13.


Share Compensation Expense
 compensation plans stock options RSUs employees directors Note 11.
 compensation cost fair value equity instrument. Black-Scholes option-pricing model. subjective assumptions volatility. accounting compensation RSUs closing market price common stock.
 total compensation expense non cash instruments
 December 31,
 Research development expense
 Stock option awards $8 $38
 RSU awards
 $65
 General administrative expense
 Stock option
 RSU awards
 $165
 Total share-based compensation expense $230


2019 vs 2018
 SMB net revenue flat December 31, decline
 network storage products offset growth switch products. revenue grew APAC declined Americas EMEA.
 Contribution income decreased lower gross margin offset lower operating expenses. decreased foreign exchange headwinds strengthening U. S. dollar higher provisions sales returns.
 2018 vs 2017
 SMB net revenue increased due growth switches offset decrease network storage. growth regions. benefited lower provisions sales returns.
 Contribution income increased increasing net revenue improved gross margin performance operating expense.
 Net revenue $287,372. 6. 2% $270,908
 Percentage net revenue 28. 8%.
 Contribution income $67,282. $70.,865
 Contribution margin 23. 4%.


expenses
 Contract liabilities revenue. Accounting Standards 2 Contract Liabilities 6.
 payroll taxes $3,985
 federal state local taxes 2,635
 bonus 20,206
 Self-insurance reserves 2,238
 Employee stock plan contributions
 sales commissions 5,397
 partner commissions 7,043
 liabilities 5,197
 acquisitions 2,763
 $62,104 $42


.
 Siemens AG German Commercial Code
 2018 mobility business Siemens Mobility GmbH. decreases revenue cost sales gross profit research expenses carve-out.
 75 % revenue Europe. Africa Middle East 18 % Asia Australia 7 % Americas. Exports Germany 62 % revenue. 2019 orders Siemens € 21. 6 billion. revenue contracts large orders.
 R & D intensity increased. 8 points year-over-year. research development activities. employed R & D 2019.
 decrease Financial income lower income investments. profit transfer agreement Siemens Beteiligungen Inland
.
 Revenue 22,104
 Cost Sales (15,825) 25
 Gross profit 6,279
 Research development expenses (2,362) 15
 administrative expenses (3,979)
9,469
 Financial investments 3,754,381
 business 12,596 5 142 %
 taxes (1,377
 11,219 147 %
 Profit 170 27 %
 earnings (6,005)
 Unappropriated income 5,384 3,230 67


Changes Accumulated Income
 table summarizes changes equity years 2019 2018:
 Expressed US $000's amounts
 2019 2018
 (12,216) 3,435
 reclassifications 12,865 (19,821)
 Loss cash hedges
 Cost revenues
 Sales marketing 1,538
 Research development 2,620
 General administrative
 Tax effect gain cash flow hedges (4,784
 income net tax 13,262 (15,651)
 1,046,216)


FINANCIAL STATEMENTS share data
 NOTE 18 Income Taxes
 long-term deferred tax assets liabilities
 weigh positive evidence Company deferred tax assets. December 31, 2019 2018 deferred tax assets. non. income tax loss carryforwards $4,724 $4,647. tax credits $15,964 $16,909. assets expire 2021 2039.
 deferred tax assets periods. valuation allowances $8,011 $8,274 deferred tax assets December 31, 2019 2018. allowances. carry-forwards. tax credits.
 No valuation allowance. federal foreign tax credit carryforwards $5,785 2023 2029 research development tax credits $7,495 2039. assessed realization future taxable income projections. believes-likely benefits credit carryforwards.

 tax assets $19,795 $22,201
 liabilities(5,637)
 $14,158 $18,211


Deferred income taxes differences liabilities financial statements.
 December 31, 2019 state foreign losses $12. 2 million $7. 9 million. expire 2027 2038. full partial.
 Goodwill intangibles $136,882 $114,532
 Lease arrangements
 Property equipment 13,270
 Unbilled receivables 5,878
 deferred tax liabilities 187,158
 Lease obligations
 Retirement liabilities (18,614)
 contract losses reserves
 Foreign loss carryforwards (2,239)
 deferred tax assets (55,376)
 deferred tax liabilities $131,782 $108,956


stock options 2017 $2. 00 per share. no options 2019 2018. total $2. 8 million $10. 1 million $20. 2 million. 2019 unrecognized compensation expense stock options $0. 3 million. 2 years. RSUs $94. 2 million 1. 9 years. zero unrecognized compensation expense unvested warrants.
 Stock-based compensation measured grant date value recognized requisite service period. accounts forfeitures. fair value RSUs without market conditions Class A common stock. market conditions estimated Monte Carlo simulation model. stock options warrants equity awards Black-Scholes option-pricing model assumptions. subjective judgment.
 Fair Value Common established board directors. market closing price Class A common stock New York Stock Exchange.
 data.stock options Company used method expected term equal vesting period contractual term. term 2015 ESPP based contractual term.
 Company estimates common stock options grant date. estimated 2015 average historical volatility comparable companies. limited information Class A common short trading history. 2018 used historical volatility companies.
 Risk-Free estimated U. S. Treasury zero-coupon notes expected term.
 Dividend plan. used expected dividend yield zero.
 assumptions fair value represent management judgment. compensation expense could. fair value stock option awards warrants 2015 ESPP awards employees estimated Black-Scholes option-pricing model. RSUs with market conditions estimated Black-Scholes option-pricing model Monte Carlo simulation model. Black-Scholes assumptions
 Year Ended December 31,

 revenue $6,403 $7,312
 Research 44,855 57,188 54,123
 Sales marketing
 14,896 17,783
 $77,739 $97,009 $91,581


ADVANCED ENERGY INDUSTRIES. FINANCIAL STATEMENTS
. SUPPLEMENTAL QUARTERLY FINANCIAL DATA
 quarterly results eight quarters December 2019 2018. adjustments included. volatility results indicative.
 Quarter Ended
 December September June March
 Sales $154,161 $173,082 $196,032
 Gross Profit $ 75,188 $ 85,539
 Restructuring Expense $ 3,836
 Operating income $ 19,570 39,862 56
 Income operations taxes $ 19,222 $ 35,157
 Loss discontinued operations $ 188
 Net Income $19,410 $34,786 $46,405
 operations noncontrolling interest
 income Advanced Energy Industries. $ 19,406 $34,779 $46,361
Earnings Share
 Operations
 Basic earnings. 50. 90 $1. 18 $1. 17
 Diluted earnings. 50. 90 $1. 17. 16
 Discontinued Operations
 loss.
 loss.
 Net Income
 earnings. 51. 89. 18. 17
 earnings. 50. 89 $1. 17.


Loan TORM defines Vessel values borrowings.
 debt financial liquidity risk future possibilities capital.
 Vessel values newbuildings 1,801. 1,675. 1,661.
 1,801.
 Borrowings 863. 754. 753.
 debt Land buildings equipment -8.
 Committed CAPEX newbuildings 51. 258. 306.
 Loans receivables.
 Cash equivalents -72. -127. -134.
. 885. 926.
 Loan-to-value ratio 46. 52. 55.


fair value assets U. K. pension plan asset category
 expected long-term rates return assets equal yields maturity government corporate bonds premium government bond return equities. return cash Bank of England base rate date.
 Level 1 investments mutual funds quoted market price active market. hold stocks bonds.
 Fair value
 September 30, 2019 September 30, 2018
 Fair Value Measurements
 Asset category Level 1 2 3
 Cash on deposit $279
 Pooled funds 7,959 8,234
 Total plan assets $8,238


table Consolidated Statement Operations items revenues
. increased $13. 5 million. 6% 2019 2018. Products revenue increased $5. 3 million. third-party hardware on premise software sales.
 Support maintenance subscription services revenue increased $6. 4 million. 3% software revenue. 5%
 Subscription revenue. 7% revenues. 2018. Professional services revenue increased $1. 8 million 7. 1% growth customer base responses.
. increased $9. 5 million. 7% 2019 margin. 5%. profit decreased. 1 million margin decreased. 4% technology amortization.
 Support maintenance subscription services profit increased $7. 2 million margin increased. Professional services profit increased $2. 4 million margin increased. increased revenue lower costs restructuring.
 Operating increased $10. 5 million. 7% 2019. increased 2. 3% 2019.
. research development.Product development increased $9. million. 4% 2019 cost capitalization. products rGuest platform availability second quarter.
 agile development practices higher frequency. capitalized $2. million external $0. 3 million internal full balance capitalized Q1 2019.
 $8. 9 million. $40. 1 million $38. 4 million 2018. million increase due expansion R&D increased compensation expense.
 Sales marketing. increased $1. million. 7%. $1. 6 million incentive compensation sales.
. decreased. 9 million. 8%. reduced costs legal accounting services.
 Depreciation. decreased. million 5%.
 Amortization intangibles. increased. 7 million. 6% products June 30 2018.
 Restructuring severance charges. decreased $1. million non-recurring restructuring increased $1. 2 million $0. 6 million.restructuring actions Note 4.
 Legal settlements. employment business-related.
 Year March
 Net revenue
 27. 26.
 maintenance subscription services 53. 54
 services 18.
 revenue 100.
 Cost goods
 technology amortization 22.
 Support maintenance subscription services 11.
 services.
 cost 47. 49.
 profit 52.
 Operating expenses
 Product development 26. 21
 Sales marketing.
 16.
 Depreciation fixed assets.
 Amortization intangibles.
 Restructuring charges.
 Legal settlements.
 Operating loss.


Foreign Currency Exchange Rate Risk
 utilize cross-currency swap forward contracts cash flow hedges. objective minimize impacts cash flows profitability exchange rates transactions. income) instruments reclassified Consolidated Statement of Operations twelve months.
 2015, entered cross-currency swap contracts €1,000 million reduce exchange rate risk. interest payments euros 3. 50% per annum receive interest U. S. dollars 5. 33% per annum. maturity contracts 2022 pay value euros receive. dollars counterparties. counterparties provide cash collateral.
 end 2019 contracts position $19 million recorded other assets Balance Sheet. liability $100 million recorded liabilities 2018. collateral approximated positions recorded in accrued current liabilities prepaid expenses assets. impacts contracts
Gains losses excluded hedging relationship recognized selling administrative expenses offset by re-measuring intercompany loans U. S. dollar.
 2019 2018 2017
 millions
 Gains income $
 excluded hedging relationship


Professional Service Other
 revenues from consulting implementation training integration services. hardware to. after new software licenses. vary partner network.
 Cost integration configuration training software. personnel-related expenses travel third party subcontracting.
 decreased by $31. 3 million 9. 9% June 30, 2019 down 7. 4% $8. 1 million foreign exchange rate changes. Americas $19. 0 million EMEA $9. 0 million Asia Pacific $3. 3 million.
 decreased by $28. 8 million June 2019 decrease labour-related costs $29. 0 million increase other miscellaneous costs $0. 2 million.
 gross margin percentage on increased to 21% from 20%. optimizing margins service engagements.
 under Topic 605 not different from Topic 606.
 June 30
2019 2018
 Professional Service Revenues
 Americas $132,426,045) $151,471 $39,872 $111,599
 EMEA 122,861 131,843 102,242
 Asia Pacific 29,649 32,943 11,468 21,475
 Professional Service Revenues 284,936,321 316,257 80,941 235,316
 Service 224,635 (28,754 253,389 58,435 194,954
 Service Profit $60,301(2,567) $62,868 $22,506 $40,362
.
 Americas.
 EMEA.
 Asia Pacific.


 segments components enterprise revenues expenses separate financial information results reviewed chief
.
 Company revenue electronics design production product management services. performance allocates resources. segments EMS DMS reportable. organized economic profiles manufacturing capabilities market strategy margins return capital risk profiles.
 EMS IT design engineering electronics large manufacturing infrastructure markets. high volume. larger quantities customers automotive transportation capital equipment cloud computing storage defense aerospace industrial energy networking telecommunications print retail smart home appliances.
 DMS engineering solutions material sciences technologies healthcare. customers devices accessories healthcare mobility packaging industries.
 Net revenue attributed. performance evaluated pre-tax contribution income. net revenue cost selling expenses research development expenses.income amortization stock compensation restructuring acquisition loss disposal settlement impairment goodwill business interruption discontinued sale interest tax noncontrolling interests.
 segment assets accounts receivable inventories customer property plant equipment intangible assets amortization goodwill. non assets reviewed. Transactions recorded.
 tables segment information
 2019
 Total assets
 $4,353,465 $3,456,866
 4,988,198 5,378,436
 non-allocated assets 3,628,812
 $12,970,475 $12,045,641


FINANCIAL STATEMENTS
 Income Taxes
 Earnings
 Ended December 31,
. $15,103 $30,815
 Non. 35,163 27,288 30
 $50,266 $58,103 $40,253


. Debt Interest Rate Swap
 Company long-term debt
 May 12, 2017 Company entered credit agreement lenders collateral agent acquisition Exar. initial secured term B loan facility $425. 0 million. incremental loans not exceed $160. 0 million adjustments unlimited amount compliance leverage tests. loans subject additional conditions commitments lenders.
 Loans bear interest equal federal funds rate. 50% prime rate adjusted LIBOR rate. 0% LIBOR rate 0. 75% margin 2. 50% LIBOR 1. 50% base. September 30, 2017 Initial Term Loan quarterly installments 0. 25% original principal balance payable maturity date. seven years May 12, 2024 outstanding principal interest repaid. required fees credit facility.
Company required mandatory prepayments outstanding loans net cash disposition assets insurance proceeds excess cash flow incurrence indebtedness. prepay loans without premium penalty subject limitations 1. 0% soft call premium first six months. payments principal $213. 0 million December 31, 2019.
 obligations guaranteed domestic subsidiaries. secured assets subsidiary guarantors agreement.
 agreement contains events default payment covenant control judgment bankruptcy insolvency. lenders require immediate payment rights remedies.
 December 31, 2019 2018 average interest rate long-term debt. 9% 4. 6%.
 debt carried principal amount net unamortized debt discount issuance costs not adjusted fair value. issuance date fair value liability component $398.million determined discounted cash flow analysis projected interest principal payments discounted issuance date market rate 4. 6% Level 2 fair value. debt discount $2. million issuance costs $6. million amortized interest expense issuance May 12 2024.
 2017 recognized amortization discount. 2 million issuance costs. 6 million interest expense.
 approximate fair value loan December 31, 2019 2018 $214. 6 million $268. 1 million estimated
 Level 2.
 remaining balance $212. million $262. million.
 due May 12 2024 maturity.
 Unamortized debt discount
 issuance costs
 long-term debt 255


 $75. 0 million $83. 2 million $8. 2 million 9. 9% working capital $65. 1 million trade receivables $88. 5 million payables $23. 4 million lower operating profit.
 investing $157. 7 million $185. 4 million $27. 7 million 14. restricted deposits $53. 5 million intangible film rights $107. 7 million $186. 8 million $79. 1 million 42. 3%.
 financing $84. 1 million $77. 4 million increase $6. 7 million 8. 7% share capital short borrowings.
 March $83. 2 million $99. 0 million $15. 8 million 15. working capital $24. 3 million trade receivables $19. 1 million payables $5. 4 million. decreased interest income tax 2. 4 million $2. 9 million. offset deconsolidation subsidiary.
2018 $185. 4 million $175. 2 million 2017 $10. 2 million. 8% films. $186. 8 million $173. million 2017 $13. 3 million. 7%.
 financing $77. 4 million $5. 9 million $71. 5 million. 7% share capital $16. 6 million sale subsidiary $40. 2 million application 18. million.
 2019 invested $264. 3 million outflow $107. 7 million film 2020 $150 $160 million.
 $74,966 $83,243
 investing $(157,733),420,191)
 financing $84,117 $77,415


table summarizes contractual obligations cash outlays 2020 future
 long-term debt finance lease obligations $1. 7 million. capitalized fees $22. 2 million discounting $6. 1 million debt discounts $2. 3 million.
 Includes interest payments senior notes Amended Credit Facility. interest payments calculated LIBOR December 31, 2019 non-US Dollar balances converted exchange rates 2019.
 Obligations defined benefit pension plans post benefit plans excluded retirement performance economic actuarial assumptions. Note 17, Sharing Retirement Savings Plans 18 Financial.
 Short-term Borrowings-Term Debt
.
 obligations estimated future rental commitments non-cancelable property leases December 31, 2019.
 Obligations
 agreements purchase goods services.obligations enforceable binding specify terms quantities price provisions timing. amounts minimum. purchase additional goods services above use additional cash.
 Payments Due Years
 millions 2021-2022 2023-2024
 Obligations
 Short-term borrowings $ 98.
 long-term 18.
 3,729. 938. 1,499. 1,290.
 Total debt $ 3,846. 117. 938. 1,499. 1,290.
 Interest payments long-term 1,057. 180. 342. 204. 329.
 Operating leases 105. 30.
 First quarter 2020 quarterly cash dividend 24.
 contractual obligations 86. 35. 31. 19.
 cash $ 5,120. 388. 1,353. 1,742. 1,636.


Income Taxes
 December 31, 2019 deferred tax assets equity investments compensation deferred revenues interest rate swaps employee benefits compensation. liabilities depreciation amortization intangible assets property equipment deferred contract costs.
 Deferred assets
 Equity investments.
 Equity-based compensation.
 Deferred revenues.
 Interest rate swaps.
.
 deferred tax assets 63.
 liabilities
 Goodwill intangibles.
 contract costs.
 Property equipment software.
.
 deferred tax liabilities.
 Net deferred tax liability(185.(220


GreenSky, Inc. FINANCIAL STATEMENTS States Dollars share data
 Finance charge reversal liability
 Bank Partners offer loan products period repay without finance charge. bill interest obligated pay interest repays. billing interest triggers future finance charge reversal liability. FCR derivative. not hedge changes value recorded cost revenue Consolidated Statements Operations.
 liability Balance Sheets estimated historical experience expectation future FCR. Level 3 fair value hierarchy unobservable inputs data adjusted assumptions. table reconciles fair value measurements FCR liability.
 Includes incentive payments Bank Partners surplus finance charges fixed servicing fee net credit losses cash recoveries charged-off loans proceeds transferring rights Charged-Off Receivables.incentive payments Bank Partners deferred.
 reversal charges.
 fair value adjustment reversal estimated. recognized Consolidated Statements Operations.
 Ended December 31,
 Beginning balance $138,589 $94,148 $68,064
 159,527 129,153 109,818
 Settlements(2) (262,449 (181,590) (127,029)
 Fair value changes cost 170,368 96,878 43,295
 Ending balance $206,035 $138,589 $94,148


Taxation
 unrecognised deferred tax assets differences uncertainty profits non-REIT
 no deferred tax.
 Revenue losses 398. 300.
 Capital losses 34.
 financial instruments 172. 184.
 temporary differences 20.
 unrecognised differences 625. 529.


 table cash dividends December 31
 Board Directors declared quarterly dividend $0. 16 per share payable March 20 2020 stockholders March 6,. estimated $24. 8 million 154. 7 million shares common stock February 21, 2020.
 dividend payments recorded cash equivalents retained earnings Consolidated Balance Sheets. senior notes declare dividends. future dividends. consider financial. no guarantee declare dividends.
 Total Cash Dividends Paid Share
 2017 $119.
 2018.
 2019.
 $321.


Operations Ended December 31, 2018 2017 thousands percentages share
 Capital Resources
 Long-term debt
 February 12, 2019 five-year Credit Agreement banks extend. revolving credit $300,000 $150,000. replaces prior $300,000 expired August 10, 2020. Borrowings $50,000 refinanced. terminated February 12, 2019.
 Revolving Credit Facility includes swing line $15,000 letter credit $10,000. Borrowings interest base rate. quarterly commitment fee. ranges. 20% to. 30% leverage ratio.
 interest rate swap agreements $50,000 long-term debt February 2024. interest expense.
 funded capital operating cash credit Revolving Credit Facility. working capital expenditures debt service twelve months. additional equity debt financing acquisitions.
 December
 Total credit facility $300,000
$99,700 $50,000
 $1 $1,940
 $198,500 $248,060
 interest.
 Commitment fee.


WORLDWIDE. INCOME
 notes financial statements.
 Ended December 31,
 Net income $67,062 $68,921 $5,135
 income
 Foreign currency adjustments 1,034,261 16,744
 Comprehensive income $68,096 $53,660 $21,879


Taiwan Financial Supervisory Commission UMC special reserve debit elements equity unrealized loss financial instruments exchange differences foreign operations year-end. reserve prohibited distribution. reversed reserve earnings distribution deficits.
 2018 approved stockholders’ meeting June 12 2019 2019 Board April 27, 2020. details
 Appropriation earnings Cash dividend per share
 Legal reserve $707,299 $963,947
 Special reserve 14,513,940 (3
 Cash dividends,105 9,765,155.


GasLog Ltd. Subsidiaries
 consolidated financial statements
 December 31, 2017 2018 2019
. Dollars
. Non-Current Assets
 Cash collaterals swaps interest rate swaps difference value threshold.
 December 31,
 long-term assets
 Cash collaterals swaps
 24,221


tax effects differences deferred tax assets liabilities
 December 31, 2019 2018 federal operating loss carryforwards $7,161,000 $6,617,000.
 losses expire 2024. ownership change IRC Section 382.
 annual limitation NOL carryforwards
 expiration NOL before utilization. state local net operating loss carryforwards
 $7,153,000 $6,609,000 future state tax liabilities 2035.
 Canadian NOL $1,111,000 $1,070,000. losses expire
 2026. unclaimed Canadian federal research investment tax credits
 reduce future federal taxes $0.
 Canadian $1,111,000 $1,070,000. losses expire 2026. unclaimed investment tax credits reduce future federal taxes $0. expire 2026. unclaimed tax credits reduce future federal taxes $0. Canadian NOL $1,111,000 $1,070,000.Canadian losses expire 2026. 2019 unclaimed tax credits future taxes $0.
 net deferred tax asset reserved. valuation allowance
 $661,000 $457,000
 Foreign earnings reinvested. Federal taxes undistributed earnings foreign subsidiary.
 recognizes interest penalties uncertain tax positions.
 uncertain tax positions reserve.
. federal state income tax returns. audit December 31, 2014.
. operating loss 2,894,000 2,627,000
 Stock compensation 784,000
 income tax losses 29,000
 scientific investment tax credits
 Valuation allowance
 Net deferred tax assets


fourth quarter 2019 income $392 million $302 $418 million. diluted earnings per share $0. 43.
 income parent company
 Three Months Ended
 December 31, 2019 31, 2018
 income $392 $302 $418
 percentage net revenues. 2%. 8%.


financial result taxes
 Adjustment previous year.
 interest €−119 million €−136 €1 million €−2 million. improved favourable refinancing.
 2018/2019
 Earnings interest taxes EBIT 713 828
 non-operating companies
 Interest income −136 −119
 −137 −119
 before taxes EBT 576 709
 −216 −298
 Profit loss operations 359 411
 discontinued operations taxes −526


deferred tax assets
 valuation allowance deferred tax assets future income. cumulative loss 31, 2019. limits future growth. December 31, 2019 2018 valuation allowance $24. 6 million $25. 1 million recorded.
 federal state net operating loss carryforwards $165. million $134. 3 million. $57. 9 million generated before January 1 2018 20-year carryforward period. $107. 1 million 80% taxable income limitation. carryforwards expire through 2037. Section 382 study ownership change December 31, 2017 pre losses utilization limitation. future before.
 December 31, foreign net operating loss carry-forwards future taxable income $25. 6 million $25. 5 million. valuation allowances $24. 6 million $25.million recorded deferred tax assets income.
 December 31
 Deferred tax assets
 Lease liability $4,295 $278
 AMT credit
 Accrued expenses 2,837
 Deferred revenue
 loss carryforward 50,950 34
 assets,967
 Intangible assets 2,416
 allowance
 deferred tax assets 42,837
 Deferred commissions (4
 revenue
 Intangible assets
 Property equipment
 Debt discount
 Right-of-use
 Deferred state taxes
 deferred tax liabilities (44,839)
 non-current deferred income


. Registrant’s Common Equity Stockholder Matters Issuer Purchases Securities
 common stock NASDAQ. January 31, 2020 holders 126.
 graph compares stockholder return common stock Russell 2000 Index Standard Industrial Code Index Data Preparation Processing Services five-year period. $100 invested December 31, 2014, common stock dividends reinvested.
 December
 CSG Systems International. $100. $146. $200. $185. $137. $227.
 Russell 2000 Index.
 Data Preparation Processing.


Sales Category
 Access Aggregation Subscriber Solutions Experience Traditional Other Products.
 revenue 2019 2018
 Subscriber Solutions & Experience Customer Devices. SmartRG.
 Network Solutions Services Support
 Access Aggregation $289,980 $58,894 $348,874
 Subscriber Solutions Experience 144,651 8,269 152,920
 Traditional Other Products 20,595 7,672 28,267
 $455,226 $74,835 $530,061


Statements Income
 Fiscal years 2018 2017 adjusted ASC 606.
 2018 ASC 606.
 statements.
 Years
 Net income $206,587 $254,127 $47,157
 income tax
 Foreign currency gains (24,065) 35,271 (15,284)
 pension plans
 post-retirement plan adjustments
 Equity interest income 5,584
 Foreign exchange contracts
 fair value hedges
 income (27,926) 39,014 (10,387
 income $178,661 $293,141 $36,770


Compensation
 2019 non-management director 15,000 RSUs. vested 3,750 RSUs March June September December 15. non-management directors cash fees $40,000 per annum ($10,000 per quarter. cash compensation Board committees Audit Committee Chairperson $7,500 members $5,000 Compensation Committee Nominating Corporate Governance Committee $3,750 $2,500.
 June 2013 issued Niv Harizman five-year stock option shares stock $1. 88 per share vested 100,000. June 17, 2018. Harizman 181,936 shares 118,064 shares.
 compensation board directors December 31, 2019. No Named Executive Officer compensation 2019.
 fees $10,000 per quarter ($40,000 annum additional fees Board committees.
amounts stock awards FASB ASC Topic 718. Note B[11]. 15,000 RSUs non-management director March 15 2019. right share common stock.
 December 31, 2019 directors options 35,000 shares common stock $2. 34 per share.
 dividends RSUs 2019.
 Fees Stock Awards compensation Total
 Emanuel Pearlman $ 50,000 39,000 89,750
 Niv Harizman $ 46,250
 Alison Hoffman $ 48,890 39,000 88,640


Sales Marketing Administrative Expenses
 summarized table millions
 R&D Expenses increased headcount acquisition costs contracted services discretionary spending.
 R&D products. purchase license technology partner acquire.
 Sales Marketing Expenses headcount discretionary spending contracted services acquisition costs offset lower share-based compensation expense.
 G&A Expenses decreased $400 million settlement Arista Networks lower contracted services offset discretionary spending headcount expenses.
 Foreign Currency foreign currency fluctuations decreased R&D sales marketing G&A expenses $233 million 1. 3% compared 2018. increased R&D expenses $93 million 0. 5% compared 2017.
 Variance Dollars Percent
 Research development $ 6,577
 Percentage revenue.12. 8%. 6%
 marketing 9,571 9,242,184
 18. 4%. 7%. 1%
 1,827 2,144 1,993
. 5%. 2%
 $17,975 $17,718,236 $257
. 6%.


Revenue
 2019 segment market sector
 Healthcare Sciences $488,851 $602,922 $128,225 $1,219,998
 Industrial,381 534,971
 Aerospace 317,558 186,486
 Communications 256,523 113,329
 External revenue 1,422,313 1,437,708 3,164,434
 Inter-segment sales,995 119,497
 Segment $1,429,308 $1,557,205 $3,296,446


.
 Group operates defined benefit contribution pension plans. largest scheme UK. accounting judgements estimation uncertainty” note 1 financial statements.
 defined benefit retirement plans difference fair assets liabilities financial position. liabilities assessed projected unit funding principal actuarial assumptions reporting. Assets valued market value.
 Actuarial gains losses income. effects adjustments. return on assets interest income costs management.
 net surplus deficit recognised income statement current cost settlements. interest cost expected income charged statement. included operating costs results equity operations
 contributions to pension plans charged income.
 31 March 2019 Group operated pension plans employees varying rights obligations. plans provided defined benefit contribution arrangements. benefits pensionable service final salary. funds converted into benefits retirement
Group operates benefit schemes Germany Ghana India Ireland Italy UK United States Greece Turkey. pension schemes Egypt Germany Greece India Ireland Italy New Zealand Portugal South Africa Spain UK.
 competitive pension market median. Defined Contribution arrangements State provision.
 main Vodafone UK Group Pension Scheme. 2014 Vodafone Cable & Wireless Section. closed new entrants future accrual. operates smaller plans UK Germany Ireland. exposes risks longevity return inflation.
 schemes administered trustee boards separate. boards act set investment strategy contribution rates subject statutory funding objectives.
 UK plan registered occupational pension plan Revenue Customs subject UK legislation Pensions Regulator. valuations three years. Separate valuations Vodafone CWW Section.
trustees valuations funding objective recovery plan. 19 October 2017 31 March 2016 triennial valuation Vodafone CWW Section concluded.
 Income statement expense
 2019 2018 2017
 contribution schemes 166 178 192
 benefit schemes 57 44
 charged income statement 223


3. 5 Leases
 Recognition measurement classification
 Group applied AASB 16 retrospective approach. impact changes disclosed in Note 1.
 contract Group assesses contract lease. contract if conveys right control use identified asset consideration.
 contract involves use identified asset physically distinct capacity. If supplier substitution right asset not identified.
 Group obtain economic benefits asset
 direct use asset. rare cases decisions predetermined Group direct use if
 asset
 asset
 recognises right-of-use asset lease liability at lease commencement date. measurement recognition right-of-use assets Note 3.
 lease liability measured at present value lease payments not paid commencement date discounted interest rate implicit lease or incremental borrowing rate. discount rate.
 Lease payments liability comprise
Fixed payments
 variable lease payments index or rate measured
 amounts under residual value guarantee
 exercise price under purchase option lease payments optional renewal period penalties for early termination.
 lease liability measured at amortised cost effective interest method. remeasured future lease payments index or rate estimate residual value guarantee purchase extension termination option.
 remeasured adjustment to carrying amount right-of-use recorded in profit or loss to zero.
 Short-term leases low-value assets
-of-use assets lease liabilities for leases machinery 12 months or less low-value assets equipment. recognises lease payments expense straight-line over lease.
 liabilities
 2,569
 Non-current


Cash Activities Free Cash Flow
 cash cash flow
 Net cash twelve months 2019 $115. 5 million $90. 3 million 2018. due improved profitability collections working capital changes.
 Free cash flow $72. 8 million margin 12. 6% $49. 8 million 9. 3% 2018. increase offset interest convertible notes $17. 4 million. Capital information.
 Reconciliation cash flow
 Net cash operating activities $115,549 $90,253 $67,510
 Capital expenditures (18
 software costs (24
 Free cash flow $72,847 $49,843 $39,839
 margin 12. 6% 9. 3%.


net deferred income tax assets
 assets February 28, 2018 Italian Canadian subsidiaries $7. 4 million $7. 6 million disclosed 2018 Form 10-K. net operating losses research development expenditure pool carryforwards. 100% valuation allowance.
 maintained valuation allowance non-U. S. jurisdictions state tax credits. 2019 decreased valuation allowance $5. 9 million. foreign tax assets increase state tax credits.
 February 28, 2019 net operating loss carryforwards $30. 1 million $60. 8 million $44. 7 million federal state foreign expiring 2039. $18. 3 million foreign net operating loss carryforwards expire. limitations Section 382 Revenue.
 February 28, 2019 R&D tax credit carryforwards $9. 1 million $8.9 million federal state income tax. federal R&D tax credits expire 2039. state credits no expiration.
 adopted guidance stock compensation tax deductions options stock awards compensation. excess tax deductions $2. 9 million $2. 6 $0 2019 2018 2017. excess tax benefits deficiencies recognized income.
 ASC Topic minimum recognition threshold. uncertain tax benefit $3. 2 million $1. 0 million $1. 0 million February 28, 2019 2018 2017.
 increased uncertain tax benefits foreign net operating loss carryforwards. offset valuation allowance expense. benefit $3. 2 million. liabilities uncertain tax benefits deferred tax assets balance. benefits $0. 6 million.
 interest penalties uncertain tax positions. No accrued February 28, 2019.

 loss $19,269 $22,013
 Depreciation
 Research development credits 19,189
 Stock compensation 2,783
 tax credits
 Inventory
 Warranty
 Payroll benefit accruals 2,220
 doubtful accounts
 liabilities 6,208
 Convertible debt (10
 3,281
 deferred tax assets 32,592 48,425
 deferred tax $21,663 $31,581
 $22,626 $31,581


Obligations
 table September 30, 2019
 executive offices research development facility 29,000 feet San Diego California lease continues through June 30, 2024. average annual base rent $1. million per year. tenant improvement allowances $1. million. amortized rent expense.
 offices Paris Amsterdam New York Barcelona London.
 Paris France July 31, 2021 base rent. 4 million.
 Amsterdam December 31, 2022. 2.
 New York November 30 2024. Barcelona Spain May 31, 2023. 1. London United Kingdom May 31, 2020 base rent £63,000 $78,000. offices Paris Amsterdam New York Barcelona. Paris France July 31, 2021 rent. 4. Amsterdam December 31, 2022. 2. New York November 30, 2024. 2.Barcelona Spain lease May 2023 base rent €0. 1 million. 1 million. London lease May 31, 2020 rent £63,000 $78,000.
. properties good business.
 1 1-3 3-5 5
 Operating lease obligations $1,699 $3,950 $2,707 $36 $8,392
 Other borrowings 131
 $1,830 $4,095 $2,926 $8,948


Accounts Receivable
 table balances
 exposed credit risk residential business customers. require collateral. agreements providers bill collect services. purchase include balance. significant loss.
 December 31,
 2018
 millions
 purchased receivables $1,971 2,094
 Earned unbilled receivables 374 425
 Total accounts receivable 2,365 2,540
 allowance doubtful accounts (106)
 $2,259 2,398


6. SELECTED FINANCIAL DATA.
 derived audited statements. Discussion Analysis Financial Condition Results Form 10-K. historical results not indicative results future.
 Selected Financial Data
 Ended September 30
 Income Statement Data
 Revenue $84,590 $63,559 $45,390 $34,701 $25,367
 Operating income (loss $(4,590) $(7,806) $2,769
 Net income $14,092 $1,959
.
.
 Working capital $34,082 $17,221 $41,342 $31,980 $24,005
 Total assets $135,897 $127,150 $71,719 $48,385 $38,746
 Other borrowings $556 $810
equity,333,394,408,485,433


Loss per Share
 Company two-class method basic diluted net loss dividends.
 table summarizes
 December 31, 2019 2018 loss diluted loss equal loss.
 2018
 Basic diluted shares 113,026,424 105,671,839
 excluded anti-dilutive
 Stock options 3,812,242 5,476,790
 Restricted share units 1,939,918 2,473,665
 Deferred share units
 5,752,833 7,950,802


table fees categories services Ernst & Young years.
 Audit fees annual audit quarterly financial statements statutory audits internal control review. independent accountants.
 Audit-related fees assurance services. certification Singapore Branch corporation registration.
 Tax fees services Ernst & Young tax compliance.
 audit non-audit services Ernst & Young pre-approved committee.-approval reported meeting.
 Years ended December 31,
 2019
 Audit Fees (1) 52,794 62,040 2,074
 Audit-related Fees (2) 1,283 1,095
 Tax Fees (3) 4,304
 Total 58,381 67,078 2,243


. Commitments Contingencies
 Company leases facilities build-to-suit expiration March 2029. Rent expense office facilities $5. 3 million $4. 8 million $3. 2 million 2019 2018 2017. capital lease agreements computer equipment January 2022 commitments data centers.
 Future payments capital leases. March 31, 2019
 usage-based charges rent.
 payments minimum sublease rental income $0. 6 million 2020.
 outstanding letters of credit $3. million $3. 8 million leases March 2019 2018.
 Capital Leases Facility Leases Data Centers
 2020
 minimum lease payments $ 2,346 $ 126,959 54,783
 value capital lease obligations
(844)
 Long-term lease $1,381


 sales decreased 10% to $325. 2 million 2018 $360. 2 million 2017. impacted by $8. 0 million gain contract adjustment training contract. Navy. Sales lower 2018 virtual air ground international training services increased. exchange rates. sales.
 Amortization Purchased Intangibles $1. 1 million 2018 $0. 9 million 2017.
 $16. 6 million 2018 $28. 1 million 2017. gain $8. 0 million 2017 contract adjustment. Navy. 2018 arbitrator awarded $1. 7 million reseller air combat training expense. R&D expenditures increased $1. 8 million. next generation training systems. income offset by increased ground combat training systems costs contracts. exchange rates. income.
 EBITDA $26. 3 million 2018 $39. 4 million 2017.decrease Adjusted EBITDA driven operating income excluding amortization.
 2018 2017
 Sales $ 325. $ 360.
 Operating income 16. 28.
 Adjusted EBITDA 26. 39.


Cost Revenues Gross Margin
 Subscription cost. increased $50. 9 million 46% 2019 2018. third-party costs $21. 5 million infrastructure $19. 8 million headcount personnel contractor costs $9. 6 million. gross margin.
 increase driven investments infrastructure capacity new customers usage. expect subscription gross margin similar future.
 cost revenues. increased $23. 0 million 48% 2019. due services personnel costs $11. 1 million product sales $10. 6 million overhead costs $1. 3 million. margin fluctuates services discounting phones.
 Year ended December
 2019 2018
 Cost revenues
 Subscriptions $160,320 $109,454 $50,866 46% $89,193 $20,261 23%
70,723 47,675 23,048 48% 32,078 15,597 49%
 cost revenues $231,043 $157,129 $73,914 47% $121,271 $35,858 30%
 Percentage revenues
 Subscriptions 18%
 8% 7%
 Gross margins
 80% 82%
 17% 22%
 gross margin 74%


Product Mix Technology Migration
 price wafers technologies varies mix revenues profitability. value wafer determined by complexity performance processing technology yield defect density. higher functionality performance better yields lower defect density greater system-level integration requires better manufacturing expertise commands higher wafer prices. increase price more than production cost economy scale reached.
 Prices wafers decline over processing life cycle. migrating to sophisticated technologies profitability. began volume production with 65-nanometer 40-nanometer technologies 2006 2009,. introduced 28-nanometer technology 2011 started large-scale production 2014. 28nm below technologies contributed. 1% 15. 2% 11. 3% foundry revenue 2017 2018 2019.
.
.
.
.
.
.
.
. 358. 7
. 50 micron 3. 4 9
 100.


4 REVENUE FROM CONTRACTS CUSTOMERS
 Revenue recognized performance obligations satisfied control service transferred to customer. Revenue measured consideration Company transferring services (“transaction. revenue transaction price allocated to performance obligation. if payment before or after performance significant financing. licenses agreements significant financing at December 31, 2019 or 2018.
 agreements contain or multiple. require allocation transaction price based estimated selling prices.
 license agreements contain options for additional products territories. prices potential market size. agreements contain technology tradenames. immaterial in contract.
 Sales-based Milestones Royalty Revenues
 royalties Oxaydo Nexafed recorded sales Zyla MainPointe. Payments milestones due 30 days after year. royalties 45 days after quarter.
 License Collaboration Agreement Revenues
milestones under agreements recorded as revenue earlier recognition. license fee option revenue option exercised obligations fulfilled. monthly license fee LTX-03 revenue development activities. out-of-pocket development expenses recorded as revenue.
 June 28, 2019 agreement with AD Pharma development LTX-03 (hydrocodone acetaminophen tablets LIMITxTM monthly license payment $350 thousand 18 months until November 2020. development expenses. first license payment received July 2, 2019.
 two license agreements for products Oxaydo Zyla Nexafed Impede MainPointe. January 1, 2020 MainPointe assigned to AD Pharma right title interest MainPointe. royalty revenues from agreements sale products.
 no contract assets liability balances under at December 31, 2019 or 2018.Contract assets prepaid consolidated balance sheet. liabilities deferred revenue.
 December 31,
 thousands
 Zyla (Oxaydo $351 $386
 MainPointe
 Royalty revenues $410


 2019 2018 2017 Teradyne’s postretirement
 Components Postretirement Benefit
 Service cost $41 $39 $34
 Interest cost
 Amortization service credit
 actuarial loss 717 25 398
 Special termination benefits 3,708 591
 postretirement benefit cost 914 3,595  728
 Changes Plan Assets Benefit Obligations
 cost
 Reversal amortization
 service credit 373 496
 $1,105 $3,968 $1,224


Cash Flow
 foreign currencies converted. Dollars-average exchange rate reporting periods. rates
 December 31,
 Swedish Krona.
 Japanese Yen.
 South Korean Won 1,165.
 Taiwan Dollar.


Earnings share
 diluted adjusted profit Note 2.
 dilution options Performance Share Plan.
 Profit equity shareholders (£m 166. 6 223.
 average shares 73. 7
.
 73.
 earnings 226. 303.
 Diluted 225. 302.


21—EARNINGS PER SHARE
 earnings computed net income average Common Shares. Diluted earnings computed shares dilutive effect Common Share equivalents. equivalents excluded anti-dilutive.
 note 14 Taxes one-time tax benefit $876. 1 million months September 30 2016 reorganization subsidiaries.
 options Common Shares excluded exercise price greater average price Common Shares.
 June 30
 earnings per share
 income OpenText $285,501 $242,224 $1,025,659(1)
.
 Diluted earnings per share
 $285,501 $242,224 $1
.
 Weighted-average number shares outstanding
 268,784 266,085 253,879
 Effect dilutive securities 1,124
 269,908 267,492 255,805
anti 2,759,770


 Group adopted IFRS 15 restated results 2 Financial Statements.
 revenue increased $71. 6 million. $710. 6 million 31 March 2019. Subscription revenue strong 15. prior-period billings growth MSP channel.
 IFRS 15
 Revenue $710. million $394. 1 million prior-period deferred revenues $316. 5 million in-period billings. billings subscription products 84. FY18. balance $742. 1 million increased $13. 5 million year-on-year. per net deferral billings $49. 7 million currency revaluation $36. 2 million weakening euro. Deferred revenue $428. 6M increased 5.
 Revenue Americas increased $29. 7 million. $253. 3 million-ended 31 March 2019 prior-period billings growth MSP channel.
 EMEA revenue increased $39.million 12. $363. 6 million year-ended 31 March 2019 growth Enduser Network sales.
 revenue increased $2. 8 million 3. $93. 7 million-ended March 2019 growth Enduser decline Network sales transition.
 Revenue Region
 253. 223. 13.
 363. 324. 12.
 93. 90. 3. 6
 710. 639. 11. 12.
 Revenue Product
 328. 316. 3. 4.
 348. 291. 19. 20
 33. 30. 9. 10
 710. 639. 11. 12.
 Revenue Type
 593. 512. 15. 16
 106. 115.
 9. 11. (13
 710. 639. 11. 12.


 Group expansion 2019. 73. 72 2018. increase points last year. operating segments margin product launches higher software sales.
 Networks Security 232. 72. 205. 72
 Lifecycle Service Assurance 88. 79. 87. 77.
 Connected Devices 47. 65. 51. 64.
. 73. 344 72.


Fiscal 2019 Restructuring Plan
 Catalyst Liaison operational efficiency. charges workforce reductions facility consolidations. judgments. liability adjustments. quarterly revise assumptions estimates.
 June 30, 2019 costs approximately $30. 0 million $28. 3 million recorded charges. further significant charges.
 reconciliation liability June 30, 2019.
 Fiscal 2019 Restructuring Plan Workplace reduction Facility costs
 Balance payable June 30, 2018
 Accruals adjustments 12,460
 Cash payments (10,420
 Non-cash adjustments (3,393
 Foreign exchange,438
 Balance payable June 30, 2019 $1,819 $5,288 $7


FINANCIAL RESULTS
 REVENUE
 earned
 advertising subscriptions ticket fund distributions MLB concession sales retail sales.
 4% decrease revenue sale publishing business 2019 lower revenue Toronto Blue Jays distribution League higher revenue Sportsnet TSC. Excluding sale revenue increased 1%.
 OPERATING EXPENSES
 expenses
 broadcast content
 Toronto Blue Jays player compensation
 retail products
 other expenses.
 2% decrease expenses
 lower Toronto Blue Jays compensation
 lower publishing costs sale
 higher programming costs
 higher cost sales higher revenue TSC.
 EBITDA
 29% decrease
 revenue expense changes.
 sale
 distribution Major League Baseball
 increased 1%.
 Revenue 2,072 2,168
 Operating expenses 1,932
 Adjusted EBITDA 140
EBITDA. 8%.
 Capital expenditures 90


Auditor’s remuneration
 Relates interim report review Group subsidiary undertakings.
 2019 non-audit assurance services reporting accountants’ work potential equity raise not completed.
 includes working capital report detailed knowledge Group. additional time. Deloitte chosen efficient time costs.
 2018 non-audit services included £40,000 year end significant change report £190,000 Group’s Q3 profit estimate due Takeover Code rules.
 detailed knowledge Group. additional time. PwC chosen efficient time costs.
 Deloitte’s PwC’s (2018) independence. Audit Committee not case.
 Fees payable Group’s joint ventures 2019 were £156,000 (Group’s audit audit-related services (2018 £121,000 audit-related services.
 Fees payable Company’s auditor associates for
 audit Company’s annual financial statements
audit subsidiaries 533 441
 1,092 823
 64 51
 1,156 874
 non-audit 534 230
 1,690 1,104


STAFF
 majority not employed TORM. costs operating expenses 108 seafarers 112 131.
 average employees full-time equivalent.
 Executive Director termination severance 12 months salary.
 staff costs
 operating expenses 8. 9
 administrative expenses 37. 36. 34
 45. 46. 43.
 Wages salaries 37. 38. 36
 Share-based compensation.
 Pension costs 3.
 social security costs.
 staff costs 2.
 45. 46. 43.
 Average permanent employees
 107. 111. 130.
-based 313. 302. 286.
 421. 413. 417.


. EARNINGS (LOSS) PER SHARE
 earnings computed net income weighted-average shares. Diluted EPS net income shares.
 March 29, 2019 launched ATM program $40. million. issued 5,260,968 shares net proceeds $17. 9 million December 31, 2019. issued shares.
 remaining proceeds $21. 4 million. share price $3. 47 per share April 3, 2020 6,173,500 new shares issued balance.
 figures USD except earnings (loss) per share 2019 2018
 Net Loss
 Weighted Average Common Shares 142,571,361 141,969,666
 Loss per Common Share
.
.


Quarterly Financial Data
 first quarter 2019 non-cash goodwill impairment charge $6. 5 billion Note Customer Relationships Intangible Assets.
 fourth quarter 2018 $2. 7 billion Note.
 first quarter 2018 recognized $71 million expenses acquisition Level 3 expenses $162 million $43 million $117 million second third fourth quarters. 2019 recognized expenses $34 million $39 million $38 million $123 million first second third fourth quarters.
 First Second Third Fourth Quarter
 Operating revenue $5,647
 Operating (loss income (5,499)
 Net (loss income (6,165
 Basic (loss earnings common share.
.
2018
 Operating revenue $5,945 5,778 23,443
 income 750 767 894 (1,841)
 Net income 115 292 272 (2,412) (1,733)
 Basic earnings share.
 earnings share.


 January 3, 2020 Company compensation awards 2017 Omnibus Incentive 2006 Equity Incentive Plan 2006 Employee Stock Purchase Plan. Leidos issues shares.
 2017 approved 2017 Omnibus Incentive Plan stock compensation options restricted stock units performance awards cash.
 grants awards 25% four years three years. January 3, 2020. million shares Leidos stock reserved future issuance 2017 Omnibus 2006 Equity Incentive Plan.
 defer stock units. Management Stock Compensation Plan. Benefits payable shares Leidos stock.
 stock units deferred counted against shares future issuance 2017 Omnibus Incentive Plan. awards vested maximum future issuance.
 ESPP Leidos 15% value. 2018 2017 discount 5% non-compensatory.2018 increased discount 10% ESPP compensatory.
 2017 $25 million $11 million $10 million received ESPP Leidos stock. 2 million shares future issuance.
 compensation tax benefits
 January 3 2020 December 28, 2018 29, 2017
 compensation expense $52 $44
 Tax benefits


Deferred Revenue
 decreased ASC 606 2019. $2. 8 billion $2. 6 billion product $0. 2 billion service. $1. 3 billion recurring software subscription $0. 6 billion two-tier distribution remainder nonrecurring software. offset product deferred revenue. contract renewals offset amortization.
 July 27, 2019 July 28, 2018
 Service $11,709 $11,431
 Product 8,254
 $18,467 $19,685
 $10,668 $11,490
 Noncurrent 7,799 8,195
 $18,467 $19,685


26% tax rate
 difference federal effective tax rate 2019 2018 2017 state taxes. foreign tax rates deferred tax adjustment share-based compensation taxes non items valuation allowance. foreign subsidiaries varied tax rates.
 2017
 Income tax federal statutory rate $(10,883) $(9,811)(6,659)
 State income tax expense federal tax effect (3,657 (2,749
 Nondeductible permanent items 3,522
 Foreign rate differential
 Tax rate change
 Adjustment deferred taxes
 valuation allowance
 Uncertain tax positions
 Nonqualified stock option performance award windfall (9,128
 $425 $796


Interest Expense Income
 2018
 $242,000 increase expense higher line credit balance 2019. $112,000 increase money market account Heritage Bank.
 Year-Over-Year Change
 2018
 Interest expense $(350) $(108) $(242) 224%
 Interest income expense net 189 77 112 145%
 $(161) $(31) $(130) 419%


. Management Personnel Compensation
 salary bonus contributions benefits performance share option expenses.
 Group Chief Executive Officer Singtel awarded 1,030,168 (2018 1,712,538) shares Singtel. Special Share Award. S$1. 5 million (2018 S$3. 3 million.
 Officers Consumer Singapore Australia Enterprise Digital Life International Corporate Officer Financial Officer Human Resources Information Officer Technology Officer. awarded 3,537,119 (2018 4,391,498) shares Singtel. one-off. S$6. 1 million (2018 S$8. 5 million.
 Directors’ remuneration Directors’ fees S$2. 7 million. 5. Car-related benefits Chairman S$24,557 (2018 S$20,446).Venkataraman Vishnampet Ganesan non director Singtel awarded 831,087 share options Amobee Long-Term Incentive Plan terms conditions. share option expense SFRS 2 S$104,278 (2018 S$21,607).
 management personnel compensation
 director.
 management personnel.
.
 Directors' remuneration.
.


GreenSky. FINANCIAL STATEMENTS States Dollars share
 Disaggregated revenue
 year December 31, 2019 $30,459 change servicing fees Bank Partners. Note 3.
 revenue miscellaneous. merchant interchange servicing fees.
 No assets recognized costs contract December 31,
 2018. recognized bad debt expense contracts $950 $1,294
 $817 2019 2018 2017 recorded
 expense Consolidated Statements Operations.
 Merchant fees $361,755 $297,776 $234,548
 Interchange fees 44,150
 Transaction fees 405,905 348,904
 Servicing 123,697 65,597 46,575
 123,741 65,769
 revenue $529,646 $414,673 $325,887


 Company vested payments United States participants common stock equity Balance. outside settled cash liabilities December 31, 2019 2018
 table activity unvested stock units December 31, 2019
 Unrecognized compensation expense $731 December 31, 2019. 7 years.
 issued 642,520 782,364 shares common stock participants 2016 Plan withholding 261,335 472,965 shares tax withholding obligations. cash payment $181 $1,495 employee withholding taxes settlement units. paid $0 $300 cash-settle 16 100,025 vested stock units cash shares units.
-Average
 Unvested restricted stock units outstanding December 31, 2017 3,106,024.
 Granted 853,736.
 Vested (1,583,399).
 Forfeited (563,400.
units December 2018 1,812,961.
 Granted.
 (904,096).
 Forfeited (263,450.
 December 2019,415.


Basic Diluted Net Income Per Share
 computed divided weighted average shares common stock
.
 Diluted computed divided treasury stock method effect common equivalent shares. reconciliation earnings shares years December 31, 2019 2018 2017
.
 December 2019 2018
 2017
 anti-dilutive CESs 2019 2018 2017 immaterial. See Note 2 information.
 Year Ended December 31,
 2019 2018 2017
 Net income $ 85,762 $ 104,690  $ 116,481
 Earnings per share
 $ 1.
 Effect CESs.
.
 Weighted average number shares
 64,397 66,201 69,175
 Effect CESs
 65,103 66,434 69,424


December 31, 2018 2017
 management reviews financial measures service revenue results cash flows. tables measures.
 non-cash equity compensation expense $895 $604 2018 2017.
 $16,813 $12,686 2018 2017.
 Service Revenue. increased 7. 2% 2017 to 2018. Exchange rates impacted $4. 0 million. foreign currency comparisons 2018 average rates 2017. increased revenue increasing sales representatives expanding network adding buildings penetration market lower prices.
 Revenue recognition standards taxes Universal Service Fund fees regulatory fees. taxes statements. revenues 2017 to 2018 $1. 6 million.
 net-centric customers purchase price per megabit. corporate customers bandwidth per connection. Revenues corporate net-centric customers represented 64. 35. 1% service revenue 2018 62. 3% 37.7% service revenue 2017. corporate customers increased 11. 8% $337. 8 million 2018 $302. 1 million 2017 increase. net-centric customers decreased. 4% $182. 3 million 2018 $183. 1 million 2017 decline average price per megabit. revenue declined slower declined 25. 9% 2017 2018. net-centric market pricing pressure expect lower price. average price megabit corporate revenues greater net-centric revenues lower. foreign exchange rates net centric revenues.
 on-net revenues increased 8. 1% 2017 2018. connections 12. 1% December 31, 2018. 5. 1% decline on-net ARPU net-centric customers. determined revenue average customer connections. average price per megabit charges. decline on-net ARPU attributed volume term based pricing discounts.on-net customers service have ARPU greater than new customers due to declining prices. on-net ARPU 25. 9% decline average price per megabit.
 off-net revenues increased 5. 2% 2017 to 2018. 10. 3% December 31, 2018. due 6. 8% decrease off-net ARPU.
 Network Operations Expenses. include personnel facilities costs fiber maintenance leased circuit costs access facilities fees excise taxes. Non-cash equity-based compensation expense. increased 4. 9% 2017 to 2018 11. 9% more customer connections 170 more on-net buildings December 31, 2018. increase network facilities expansion off- net revenues. cost circuits.
. increased 4. 6% 2017 to 2018. $16. 8 million $12.2017. SG&A expenses salaries expansion sales $1. 1 million legal fees. net neutrality $1. 3 million reduction commission new revenue accounting standard. sales force headcount increased. 8% 619 2018 total headcount 4. 8% 929 974.
 Depreciation Amortization Expenses. increased. 0% 2017 2018. newly deployed assets.
 Gains Equipment Transactions. exchanged used equipment new gains $1. million 2018 $3. 9 million 2017. value. reduction more equipment 2017.
 Interest Expense. $445. million secured notes $189. 2 million unsecured notes installment payment agreement finance lease obligations. increased. 3% 2018 $70. million secured notes finance lease obligations.
 Tax Expense. $12. 7 million 2018 $25. 2 million 2017.decrease income tax expense deferred Tax Cuts Jobs Act. December 22, 2017 President signed. reduced corporate tax rate 35% 21%. effective January 1, 2018 future taxes. net deferred tax asset $9. million transition tax $2. 3 million foreign operations total tax expense $11. 3 million additional noncash tax expense 2017.
. December 31, 2018 2017 2,676 2,506 on-net buildings.
 Service revenue $520,193 $485,175. 2%
 On-net revenues 374,555 346,445.
 Off-net revenues 145,004 137,892.
 Network operations 219,526 209,278.
 133,858 127,915.
 81,233 75,926.
 equipment transactions 982.
 Interest 51,056 48,467. 3%
12,715 25,242.


. Taxes
 December 22, 2017 Tax Cuts Jobs Act. Law. 31, 2018 Company accounting.
 reduced. corporate income tax rate 35% to 21% January 1 2018. 2017 remeasured deferred tax assets recorded $15. million tax charge. reduced $4. 9 million benefit accelerated tax deductions 2018. Federal Income Tax Return.
 Act.-time transition tax foreign earnings. recorded $20. 9 million tax charge-1986 earnings foreign subsidiaries deferred. reduced $8. 1 million benefit.
 recorded $15. 5 million valuation allowance deferred tax. foreign tax credits.
 2019 acquisition Speedpay tax credits income released $15. million valuation allowance.
 Tax Act subjects. shareholder-taxed income foreign subsidiaries.
2018 Company earnings subsidiaries reinvested no deferred income taxes. December 2019 2018 Indian subsidiaries reinvested. foreign subsidiaries. permanently reinvested differences.
 income taxes
 December
 United States,317 $16,312,863
 Foreign 88,527 75,487 86,435
 Total $72,210 $91,799 $43,572


2019
 Sales $1. 4 billion increased. 2%. billion Solid Capacitor sales $164. million. Film Electrolytic $4. 3 million MSA $13. million.
 $111. million sales Americas APAC EMEA. $72. million Ceramic $39. million Tantalum. $30. 6 million OEM sales APAC EMEA $28. million EMS sales. offset $3. 2 million decrease sales JPKO $2. 7 million decrease OEM Americas. impacted $0. 5 million Euro.
 Film Electrolytic $10. 5 million increase Americas EMEA. $1. 7 million EMS $0. million OEM. offset $5. 6 million decrease OEM sales APAC $3. 1 million decrease sales APAC JPKO. impact $0. million exchange Euro.
 MSA $15. million increase OEM sales JPKO.increase net sales $4. 3 million EMS $3. 7 million distributor Americas EMEA. offset $5. 5 million decrease APAC JPKO $3. 8 million decrease OEM.
 2019 2018 net sales channel percentages
 APAC $533,340. 6% $479,987.
 EMEA 315,535. 8% 277,898.
 Americas 337,842 24. 4% 259,105.
 JPKO 196,101. 183,191.
 $1,382,818


BIG NPS improved scores sales F19. 2% $3. 8 billion. sales increased 5. 3% F19 7. 2% Q4.
 transactions. more growth 4. 4%. growth 8. 6%. reusable increased 5. 2%.
 BIG network review. 30 stores years two distribution centres. three stores F20.
 price competitive improved ranges convenient online in‐store experience.
 Online sales increased 128% F19. Apparel improved range flow.
 gross profit declined 49 bps F19 stockloss slow sell‐through apparel. Category mix improved H2.
 CODB declined 132 bps store efficiencies sales growth.
 LBIT $85 million $371 million review.
. Inventory quality improved sales apparel sell‐through.
F20 BIG W sustainable business low prices connected solutions in‐store online.
 F19 F18
 MILLION 53 WEEKS 52
 Sales 3,797 3,566 6. 5% 4. 2%
 LBITDA
 items.
 Depreciation amortisation (80). 7%.
 LBIT (85).
 Significant items (371).
 (456) 315. 5% 313. 7%
 Gross margin 31.
 Cost business 33. 4 34. 8
 LBIT sales.
 Sales square metre 3,629 3,369 7. 7% 5. 4%
 Funds.
 ROFE.


Contractual Obligations Commercial Commitments
 capital commitments facilities leases. rent. rent expense. anticipate increase capital expenditures lease commitments growth infrastructure brand name.
 table summarizes obligations March 31, 2019
 purchase obligations. marketing IT services. excludes tax benefits interest penalties $1. 1 million.
 software royalty commitments licensing. fixed cost. $12. 3 million 2019 $4. 5 million 2018.
 90-day product warranty software. costs.
 Payments Due
 2-3 4-5 5 Years
 Operating lease obligations $23,673 $9,008 $10,907 $2,827
 Purchase obligations 20,520 16,748 3
 $44,193 $25,756 $14,576 $2,930


NAVIOS MARITIME HOLDINGS. FINANCIAL STATEMENTS. dollars
 ACCOUNTS
 $68,309 $76,376
 doubtful receivables (16,377 (16,086)
 $51,932 $60,290


Acquisition Related Expenses personnel costs stock-based compensation integration professional services business combination adjustments operating items. Stock-based compensation expenses from unvested stock awards options vesting accelerated termination.
 acquisition expenses decreased 2019 due favorable business adjustments.
 Ended May 31,
 Percent Change
 Transitional employee costs $49 3% 4%  $48
 Stock-based compensation -100%
 Professional fees 373% 426% 3
 Business combination adjustments
 Total acquisition expenses $44 -15% -13% $52


ASC 606 impact adoption
 balance sheet 2019
 Deferred product costs Prepaid expenses
 $6. 2 million $8. 8 million.
 balances deferred revenue TRACKER acquired
 February 25, 2019.
 impact ASC 606 income).
 Prepaid expenses assets $19,373 $17,900
 Deferred income tax assets 22,626
 Other assets 22,510 (3
 Liabilities Stockholders' Equity
 Deferred revenue $24,264
 non-current liabilities 38,476 (5,353
 Stockholders equity
 Accumulated deficit $(2,227) 1,689


. Associates
 financial information Intouch Holdings investment
 adjustments local accounting standards SFRS.
 income
 Revenue 250. 144.
 Profit after tax 451. 166.
. 10.
 income 450. 499. 164.
 financial position
 assets 743. 720. 701.
 Non-current assets 1,532. 1,554. 1,629.
 (305. (444. (483
 (205. (313. (395.
 assets 1,765. 1,516. 1,452.
 Non-controlling interests (304. (342. (411.
 assets equity holders 1,460. 1,174. 1,040.
 ownership 21. 21
 assets 306. 246. 218.
 Goodwill intangible assets 1,441. 1,417. 1,371.
 (46..
 1,701. 1,641. 1,581.
 market 1,653. 1,639. 1,525.
 Dividends 78. 77.


Accumulated Loss-Recognition Deferrals
 table presents items not December 31, 2018 2019 deferred 2019 2019. recorded balance loss
 2018 Recognition Net Benefits Expense Deferrals Change AOCL 2019
 millions
 Accumulated loss
 Pension plans
 Net actuarial (loss gain $(2,973) 224 (297)
 Prior service benefit 46
 Deferred income tax benefit 754
 pension plans (2,173) 163 (219),229
 Post-retirement benefit plans
 Net actuarial (loss gain 7 (182)
 Prior service benefit
 Deferred income tax benefit (expense
 post-retirement benefit plans (58) 12 (138) (126) (184)
,231) (357) (2,413)


Dividends profit after tax returns.
 dividends franked 30% tax rate.
 29 August 2019 Board of Directors declared final dividend 57 cents per share 30% tax rate. paid 30 September 2019 expected $717 million. no provision.
 DRP active. shareholders participate. no DRP discount no limit.
 Shares allocated 2019 final dividend equal daily volume market price shares ASX 10 trading days 6 September 2019. last date election notices 5 September 2019. acquire shares on-market.
 13. 4% (2018 39. 9%) dividends reinvested in shares. change removal discount 2018 final dividend 12 October 2018. 2019 interim dividend satisfied on-market purchase transfer $73 million shares to shareholders.

 45 593 5 April 2019 561 6 April 2018
 657 12 October 2018 647 6 October 2017
 131 12 October 2018
 Dividends 105 1,381 93 1,208
 dividend
 reinvestment plan
 Dividends trust
 Dividends cash 1,267 724


Obligations
 summary cash obligations February 28, 2019
 inventory commitments.
 Future Cash Payments
 1 - 3
 Obligations 5
 Convertible notes $122,527 $230,000
 interest 6,591 10
 Operating leases 7,565 12,628,659
 Purchase obligations 39,390
 obligations $53,546 $145,351 $21,525 $244,559 $464,981


. financial result
 income expenses instruments assigned categories IFRS 9. foreign currency positions IAS 21.
 income currency effects results hedging transactions €17 million (2017/18 €−14 million. reflects €−5 million €4 million currency effects translation financial statements foreign subsidiaries deconsolidated business activities discontinued. impairment losses financial assets €2 million (2017/18 €0 million recognised period.
 2017/2018 2018/2019
 income
 currency effects
 hedging transactions
 expenses −184 −158
 transactions
 financial instruments IFRS 9
 cash flow hedges


Unaudited Pro Forma Financial Information
 summarizes combined results for Oracle Aconex other companies acquired since 2018 relevant for. included business combination accounting effects acquisitions amortization charges from acquired intangible assets stock-based compensation charges for unvested stock awards stock options tax effects. for informational purposes not indicative of results acquisitions 2018 or 2019.
 for fiscal 2019 presented historical results of Oracle other companies effects of pro forma adjustments.
 fiscal 2018 combined results Oracle Aconex December 31, 2017 (adjusted due to differences other companies pro forma adjustments. unaudited pro financial information
 Year Ended May 31,
 millions 2019 2018
 Total revenues $39,512 $39,546
 Net income $11,076 $3,500
 Basic earnings per share $3.. 85
 earnings share $2.


 Company credit risk short investments. performs credit evaluations collateral.
 table customers 10% net revenue
 2019
 2018 2017
 Tech Data Corporation 18% 14% 16%
 Jenne Corporation 17% 13% 15%
 Westcon Group. 12%


. DEBT FINANCING ARRANGEMENTS
 2021 Convertible Notes
 2017 Company issued $300. million. 75% convertible notes 98%. proceeds $284. 9 million discount $6. million issuance costs $9. 1 million. debt discount accreted interest. issuance costs deferred amortized interest.
 governed Indenture December 8 2017 US Bank National Association. Notes mature July 1 2021. Interest payable semi-annually January 1 1 1 2018.
 convertible. shares common stock $1,000 $42. per share anti issuances fundamental change. delisting liquidation. common stock cash shares. Holders convert maturity.
holders 2021 Notes 100% principal interest maturity fundamental change default non-payment interest 2017 Indenture.
 net carrying amounts
 effective interest rate 6. 4%.
 2019 2018
 Principal amount $300,000
 Unamortized debt discount (2,691) (4,348
 Net costs 297,309 295,652
 (4,135)
 Net carrying value $293,174 $288,967


. Reportable Segments Geographic Information Major Customers
 segments components enterprise financial information evaluated chief performance resources. Company internal management reporting system financial data performance. Net sales attributed region product manufactured service. services manufacturing processes customers order fulfillment processes interchangeable. performance operating income (loss). net sales administrative expenses excludes corporate expenses. 2019 $13. 5 million-time employee bonus cash Tax Reform. not allocated segments. Inter-segment transactions recorded arm’s length. accounting policies same Company.
 three reportable segments 2019 2018 2017
 Depreciation
 AMER $22,531 $21,224 $19,694
 APAC 16,905 15,954
 EMEA 6,105
 Corporate 5,344
 Capital expenditures
,459
 APAC 33,454 13,816
 EMEA 5,186
 4,149
,600,780 $38,538


. Earnings Per Share
 Basic earnings computed net earnings weighted average shares common stock. Diluted
 earnings computed earnings weighted average
 dilutive effect potential stock equivalents. Stock options unvested RSU awards
 equivalents computed treasury stock method.
 table represents basic diluted earnings share weighted average
 March 2017 2018 2019
 equivalents not included 1,381 1,733
 4,375 years 2017 2018 2019.
 2019
 Net income $125,785 $4,910 $271,813
 Basic EPS
 Weighted Average Shares 167,506 168,262 168,713
 earnings.
 Diluted EPS
 Average Shares 167,506 168,262
 167,837 168,925 169,322
 earnings.


Indefinite-lived Intangible Assets
 Broadcasting segment acquires assets FCC licenses. renewal extension minimal costs. acquired FCC licenses indefinite-lived.
 2019 licenses increased $15. 6 million $18. 2 million $2. 3 million impairments $0. 3 million loss sale. impairment licenses future cash flows. impairment charges Asset expense Consolidated Statements Operations.
 FCC licenses $ 136. $ 120.
 State licenses.
 $ 138.


Contract Balances
 asset recorded if revenue unconditional right consideration. services cloud provided. asset subscription licenses if revenue exceeds. assets reclassified to receivable when rights unconditional.
 balance contract assets liabilities. deferred revenues
 difference balances from timing difference performance payments. obligations transferring products services consideration. 2019 reclassified $19. 2 million assets to receivables unconditional. no significant impairment loss.
 deferred revenue consideration future. relate to customer support agreements paid. revenue 2019 revenue balances July 1, 2018 approximately $617 million.
 June 30, 2019 July 1 2018
 Short-term assets $20,956 $5,474
 Long-term $15,386 $12,382
 Short-term deferred revenue $641,656 $618,197
 Long-term $46,974 $64,743


Markets
 U. S. mortgage market first second lien. downturns stable first lien constant. second lien loan-to ratios interest rates lenders.
 delinquent loans small default process long complex multiple parties exchange data regulatory requirements. Providers meet regulatory guidelines proven technology.
 U. S. mortgage loan origination market purchase refinance. multiple parties data exchange regulatory oversight comprehensive scalable solution experience. Mortgage Bankers Association. market estimated
 Amounts recalculate.
 2019 2018 2017. estimated MBA Mortgage Finance Forecast February 18, 2020 11, 2019 October 16, 2018.
 Purchase $1,272. $1,185. $1,143.
 Refinance.
 Total $2,068. $1,643. $1,760.


FINANCIAL STATEMENTS
 Income
 deferred tax liabilities
 Post-retirement benefits $1,100
 Inventory reserves
 Loss
 Credit,964
 Accrued expenses
 Research expenditures 17,953
 lease liabilities
 Stock compensation
 Foreign exchange loss 1,986
 deferred tax assets 56,040 50,979
 Depreciation amortization
 Pensions 13,552
 unremitted earnings 1,903
 deferred tax liabilities 33,871
 deferred tax assets
 deferred tax $14,158 $18


Deferred tax assets
 Company Federal tax credit carryforwards $5. 4 million 2028 to 2038. Federal operating loss carryforward $24. 5 million 2029 2037 loss carryforward $17. 9 million unlimited carryforward period. state tax credit carryforwards $0. 3 million state operating loss carryforwards $43. 3 million vary expire 2039.
. realization future taxable income. considers reversal future taxable income tax planning strategies.
 increase valuation allowance.
 not use existing deferred tax liabilities indefinite-lived. income.
 Tax Act. net operating losses December 31, 2017 20-year carryforward period. carry indefinitely indefinite-lived deferred tax assets.Company schedules deferred taxes assets.
 reversal indefinite carryforward NOL new law impact valuation allowance. indefinite carryforward NOLs deferred tax liabilities “naked credits for realization. adjustment 2019 $0. 01 million deferred tax liability.
 2019 foreign tax credit carryforward realizable. reduction valuation allowance. no net income tax provision 2019 reduction. valuation allowance required future benefit tax carryforwards.
 current year income tax provision reduction valuation allowance due deferred tax liability issuance convertible debt. “future taxable assets $4 million reduction valuation allowance.
 Company records benefits uncertain tax positions more likely. measured largest tax benefit 50% likely settlement.
December 31, 2019 reserve tax positions liabilities. income tax.
 Deferred tax
 Subordinated debt
 Indefinite intangibles
 Right use assets
 Software development costs
 Acquired intangible assets
 Depreciation property plant equipment
 deferred tax liabilities
 Allowances bad debts inventory
 Capitalized inventory costs
 Intangible assets
 Employee benefit accruals
 Interest Limitation
 Lease liabilities
 Federal operating loss
 State
 Tax credit carryforwards
 Depreciation property plant equipment
 deferred tax assets 25
 valuation allowance
 deferred tax liabilities


 expenses increased $3. 1 million 1% 2019 2018. decreased two 2018 Reallocation cost efficiency commission.
 expenses decreased $15. 6 million 7% 2018 2017. decreased eight points cost efficiency reduction headcount restructuring leverage.
 Ended December 31,
 2019 2018 2017
 thousands
 Sales marketing $227,733 $224,635 $240,271
 revenue 39. 5% 41. 8% 49. 9%


Interest borrowings includes short long-term debt.
 FOREIGN EXCHANGE VALUE DERIVATIVE INSTRUMENTS recognized $79 million foreign exchange gains 2019 (2018 $136 million losses. US dollar commercial paper borrowings.
 offset $80 million loss change fair value derivatives $95 million debt derivatives foreign exchange risk.
 December 31, 2018 discontinued hedge accounting reclassified $21 million loss fair value derivative.
 extended bond forwards redesignated hedges. December 31, 2019 exercised bond forwards. 17.
 FINANCE COSTS
 Years 31
 Interest on borrowings
 post-employment benefits liability
 Loss repayment long-term debt
 foreign exchange
 Change fair value derivative instruments
 Capitalized interest

 Finance interest 779 793
 Interest expense 61
 finance costs 840 793


foreign exchange differences US dollar.
 financing costs increased €1. 3 billion mark-to-market losses adverse foreign exchange rate movements. before interest Liberty Global adverse interest. underlying financing costs stable debt borrowing costs.
 financing costs
 Investment income
 Financing costs (2,088)
 (1,655)
 costs before interest settlement tax (1,043)
 Interest income settlement tax issues
 Mark market
 Foreign exchange
 financing costs (1,655)


Fourth quarter profit $1,081 million margin 39. 3%. margin increased 140 points improved product mix manufacturing efficiencies.
 decreased 70 year-over-year price pressure unsaturation improved efficiencies currency hedging.
 Months
 Year-Over-Year
 profit $ 1,081 11. 8% 2. 0%
 margin 39. 3% 37. 9% 40.


adjusted IFRS 15. Note 2.
 U. S Tax Cuts Jobs Act 22, 2017. income tax law. reduces. corporate tax rate 35% to 21% interest modifies compensation operating loss 2017 repeals corporate alternative minimum tax credits creates taxes foreign-sourced earnings related-party payments global intangible low-taxed income tax base erosion tax.
. tax rate 21% Group non-cash charges $16. 9 million tax expense $16. 9 million equity. deferred tax assets 2018.
 June 2019 2017. non-cash charges tax expense $54. 7 million $30. 4 million $25. 8 million equity carrying value. evidence. recent earnings losses future taxable income carry-forward periods deferred tax.Group deferred tax assets realizable.
 2017 foreign subsidiaries. tax group deferred tax assets liabilities non-recognized deferred tax asset $2. 1 billion intellectual property. quarterly assessment recognized.
 impact deferred tax asset $19. 1 million 2019 acquisition OpsGenie. acquired deferred tax assets $1. 8 million OpsGenie. recognized deferred tax liabilities $19. 6 million intangibles amortization not deductible future profits.
.
 deferred tax assets
 $47,060
 Deferred tax expense
 Debited equity
 income
 Impact business combinations (19
 Currency revaluation impact
 Balance $3,212 $47,060


Foreign Currency Analysis
 generate revenue States Germany Japan Kingdom Canada
 table impact exchange rate changes revenue spend
 Glossary currency growth rates.
 Changes. dollar revenue spend income. foreign currency contracts reduce exchange rate mitigate.
 Fiscal Year Ended January 31, 2019
 Percent change currency change Positive impact foreign exchange rate changes
 Revenue 25% 24% Positive
 Total spend 1% Neutral


Contractual Obligations
 table payments obligations December 31, 2019
 Includes cash interest terms debt. based fixed floating rates.
 Purchase obligations noncancelable penalty. long-term agreements substrate termination penalties up to $430 million. purchases $2. 4 billion substrate glass $500 million cover glass.
 pay additional milestones. Note 14.
 Transition tax obligations. federal taxes earnings profits foreign subsidiaries. Note 18.
 Includes letter credit fees unused revolver fees.
 excluded $72. 2 million unrecognized tax benefits timing uncertain.
 Payments Due Year
 5
 Long-term debt obligations $482,892 $17,684 $98,571 $37,496 $329,141
 Interest payments.29,533 93,822
 lease 26,708 92,281
 Purchase. 1,424,267,200 221,888 187
 Recycling.
.,895 4,500
 tax. 76,667 14,747 32,259 23,041
. 10,527,933 5,164 2,430
. $2,469,962,261,174 $313,579 $790,948


 table presents sales 2019 2018
 Customers 10% change. 2019 19% 17% 13%. 2018 27% 17%. 2017 40% 16%. five largest customers. represented 15% 18% 15% revenue 2019 2018 2017.
 December 31, 2019 equipment totaled $73. 7 million $69. 9 million. $3. 9 million outside. 2018 $80. 6 million $77. 3 million. $3. 3 million. company-wide.
 United States $300,853 $288,843 $508,178
 Mexico 90,795
 Germany 78,062 167,251
 international 60,351 36,974
 $530,061 $529,277 $666,900


AMERICAN TOWER CORPORATION FINANCIAL STATEMENT amounts
. RETIREMENT OBLIGATIONS
 changes obligations
 Revisions $6. million $49. 4 million foreign currency 2019 2018.
 future cash outlay $3. 2 billion.
 balance January 1 $1,210. $1,175.
 Additions 61. 39.
.
 Revisions 56.
 Settlements.
 December $1,384. $1,210.