Free Cash Flow-U. GAAP measure. net cash operating investing excluding purchases marketable securities joint ventures deconsolidation temporary investments. net cash operating activities purchase sale tangible financial assets sale businesses cash business.
 Free Cash Flow. GAAP information investors measures capacity cash operating investing. not. GAAP represent total cash flow cash flows financing.
 reconciles total cash flow payment purchases proceeds marketable securities cash joint ventures deconsolidation financing exchange rates. definition Free Cash Flow. determined from Consolidated Statements of Cash Flows
 Reflects Payment purchase Proceeds sale financial disposal equity investment sale businesses business cash equivalents.
 Free Cash Flow positive $497 million 2019 $533 million $308 million 2018 2017.
Ended December 31,
 2019
 millions
 cash operating activities $1,869 $1,845
 investing (1,172 (1,212) (1,468)
 securities joint ventures deconsolidation (200
 business (1,372 (1,312),369
 Free Cash Flow. $497 $533 $308


. Segment Geographic Area
 table geographic financial information 2019 2018 2017. sales operational locations.
 Millions April 27, 2019 28, 2018 29, 2017
 Sales
. $540. $487. $506.
 148. 184. 155.
 113. 127.
 101. 54
. 65. 26
 Sales $1,000. $908. $816.
 Plant Equipment
. $83. $63. $44.
 33. 36 26.
.
 18.
.
 Property Plant Equipment $191. $162. $90.


Operations
 analysis performance trends Consolidated Financial Statements Item 8 Annual Report Form 10 - K.
 table Consolidated Statements
 December
 Sales $788,948 $718,892
 Gross profit 315,652 365,607
 expenses 261,264 194,054
 income 54,388 171,553
 Other income 12,806 823
 taxes 67,194 172,376
 taxes 10,699 25,227
 56,495 147,149


Obligations
 June 30, 2019 obligations minimum
 interest principal payments. 10-Term Debt.
 $30. 7 million sublease income.
 Payments
 July 1 2020
 Long-term debt obligations $3,408,565 $147,059 $292,156 $1,045,567 $1,923,783
 Operating lease obligations 318,851 72,853,394
 Purchase obligations 11,280 8
 $3,738,696 $228,276 $401,297 $1,105,177


. Directors Key Management remuneration
 disclosed report pages 64 to 74
 31 March 2019 OLT Non-Executive Directors. remuneration Key Management
 2019
 £m Short-term employee benefits 5.
 Share-based payments.
 Termination benefits.
 Pension contributions.
 9.


. Orders revenue region
 currency translation added point order revenue growth portfolio transactions minimal volume. ratio orders to revenue Siemens 2019 1. 13,. order backlog € 146 billion September 30, 2019 high.
 International Monetary Fund.
 Orders external customers up Mobility. Gas Power Siemens Healthineers Smart Infrastructure SGRE declined Digital Industries. Volume large up Mobility SGRE Gas and Power. Growth emerging markets orders China Russia Mobility € 1. 2 billion contract high-speed.
 development mixed Europe. Africa Middle East. growth double Mobility contracts. offset decline SGRE lower decrease Digital Industries. orders up Germany Gas and Power. Mobility other businesses.
 Orders Americas up currency translation. SGRE Mobility. same.
 Asia Australia orders rose.growth SGRE higher volume offshore wind-farms
 € 2. 3 billion. Mobility dropped. growth China industrial businesses.
 millions.
 Europe. Africa Middle East 46,086 46,495
 Germany 12,021 11,254 7%
 Americas 29,812 25,060 19%
. 21,166 18,106
 Australia 22,101 19,742
 China 8,989
 97,999 91,296
 emerging 31,720 30,564 4%


. Consolidated Financial Data
 table presents consolidated financial data five-year period December 31, 2019. past not future. data's Discussion Analysis Financial Condition Results consolidated financial statements notes.
 Ended December 31,
 2019 2018 2017 2016 2015
 Revenues $111,412 $111,322 $106,524 $114,263 $123,961
 Income operations 9,464 8,238 10,186
 operations taxes 4,155 4,661 6,007 8,523
 discontinued operations 1,938
 income $4,155 $4,661 $3,530 $6,631 $10
 Income per
 operations.
 Discontinued operations.
 income share.
 Income per share—diluted
operations. 35. 37. 12. 43. 58
 Discontinued operations. 15. 04. 16
 Net income share. 35. 37. 27. 47. 74
 Shares calculation operations 11,809 12,323 12,882 13,997 14,722
 discontinued operations
 12,035 12,510 12,894 13,997 14
 discontinuing,035,894


Deferred income taxes assets liabilities.
 January 3, 2020 state losses $77 million tax credits $7 million. 2020 $24 million $7 million. foreign losses $44 million. $9 million.
 valuation allowance deferred tax assets $20 million $28 million January 3, 2020 December 28, 2018. decreased $8 million sale cybersecurity business offset foreign withholding taxes.
 December 28, 2018
 Operating lease liabilities
 Accrued vacation bonuses
 Reserves
 Deferred compensation
 Credits operating losses carryovers
 Vesting stock awards
 loss
 Deferred rent tenant allowances
 Deferred gain
 deferred tax assets
 Purchased intangible assets
 Operating lease right-of-use assets
Deferred revenue (17)
 Employee benefit
 income
 Partnership interest
 deferred tax liabilities (475) (392)
 Net


Income taxes
 Ended December 31,
 2019 2018
 Federal $ (27) (13
 State local 276 249
 Deferred 533 (461
 $ 782 (225)


Equity liabilities net debt consolidated financial statements
 Equity €2,735 million €3,074 liabilities €11,762 million,132. Net debt decreased €0. 2 billion €2. 9 billion 30 September 2019 €3. billion.
 Adjustment previous
.
 Adjusted discontinued operations.
 Equity
 Liabilities 12,132
 Net debt
 Financial liabilities. leases 4,010
 Cash equivalents
 Short-term


Additional
 majority assets July 27, 2019 28, 2018. operations. 2019 no customer 10% revenue.
 Property equipment physical location. geographic areas
 27, 2019 28, 29,
 United States $2,266 $2,487 $2
 International
 $2,789 $3


.
 Company leases land buildings houses vehicles machinery equipment. 5 years. payments region. sub-lease arrangements.
 Land Motor vehicles machinery equipment
 Balance January 1 2019 23,579 1,488 25,687
 Additions 6,475 1,588 8,079
 Modifications reassessments
 Retirements
 Depreciation (6,057) (1,008) (7,333
 Foreign currency translation effect
 Balance December 31, 2019 25,049 2,142 27,547


EXECUTIVE OFFICERS
 Board Directors.
 CHRISTOPHER H. ATAYAN senior executive positions since March 2006, Chairman 2008 Chief Executive Officer October 2006, director since 2004. Senior Managing Director Slusser since 1988 1982. Board Eastek Holdings.
 ANDREW C. PLUMMER President Chief Operating Officer October 2018 Chief Financial Officer January 2007, Secretary 2007 2018. Acting Chief Financial Officer Corporate Controller Manager SEC Compliance. Deloitte Touche.
 CHARLES J. SCHMADERER Vice President Corporate Controller April 2018 Secretary October 2018. Vice President Assistant Secretary Director Financial SEC Reporting. Grant Thornton Master Business Administration).
 Christopher. Atayan Chairman Chief Executive Officer Director
 Andrew. Plummer
. Schmaderer Vice Corporate Controller


 summary
 $201,365 $225,167
 doubtful accounts (1,054)
 product returns (25,897) (11,266)
 $174,414 $212,423


Financial cash flow
 Capital
 cash inflow $4,709,000 $4,081,000 lower. offset costs. impacted upfront revenue. tax refund $2,327,000 $172,000.
 investing cash $12,337,000. $7,755,000 decrease acquisition iMoney.
 financing cash outflows $3,471,000. $2,839,000 lease payments $497,000 interest. decrease $32,918,000 share buy-backs dividends.
 CASH FLOW 2019 2018
 operating 4,709 46%
 investing (12,337 (39%
 financing (3,471)
 (11,099),316) (77%


Interest expense
 unamortized debt discount non-cash 7. 5. 17. 2017 2015 Junior.
 November 2017 Company called redemption $14. 6 million 2007 Junior Debt redemption December 15, 2017 holders. conversion requests received second third quarters 2018. $32. 5 million settled cash issued. 5 million shares common stock. loss conversions $2. 2 million.
 June 2017 exchanged $111. 3 million 2007 Junior Debt. $119. million 3. 2 million shares common stock $254. 6 million $56. 3 million fair value liability $321. 1 million reacquisition equity $374. 0 million. loss settlement $13. 8 million difference liability debt unamortized issuance costs.discount 2017 Junior Convertible Debt $55. 1 million amortized.
 2017 issued 2017 Senior proceeds $2. 04 billion $567. 7 million. incurred costs $33. 7 million $17. 8 million $3. 4 million amortized. $12. 5 million fees equity. Interest payable semi-annually February 15 August 15.
 2015, issued 2015 Senior Convertible Debt proceeds $1. 69 billion. costs $30. 3 million $20. 4 million amortized. balance $9. 9 million equity.
 proceeds 2017 2007 Junior Convertible Debt. 2017 settled $431. 3 million $575. 0 million 2007 Debt. 2015 repurchase cash. 2017 cash $431. 3 million 12. million shares common stock $862. 7 million $1.billion repurchase $431. 3 million 2007 Junior Convertible Debt $188. million liability $1. 11 billion equity. February 2017 inducement fee $5. million loss settlement. consideration transferred February 2015 $1. 13 billion $238. 3 million liability $896. 3 million equity. settlements 2007 Junior Convertible Debt allocated liability equity equivalent borrowing rate nonconvertible debt. transactions loss settlement $43. 9 million $50. 6 million 2017 2015, difference fair value liability repurchase carrying values debt unamortized debt issuance costs.
 March
 $12.
.
 291.
 Senior Secured Indebtedness 306.
.
 112.
 77.
 Convertible Debt 193.
2. 4.
 $502. $199. $146.


FINANCIAL STATEMENTS
 Accrued Expenses Liabilities
 product costs $4,464 $4,377
 income taxes
 property taxes 1,574
 professional fees
 Contract liabilities 2,877,981
 Dividends 1,299
 Remediation reserves 11,444
 liabilities 5,218,165
 $36,378 $37,347


Share Units
 table illustrates WASP award units cash-based awards 2015 LTIP
 vesting two five years no vesting first 12 months.
 Year-ended 31 March 2019 31 March 2018
 share units
 14,840 316. 215.
 Awarded 8,749 478. 6 453.
 Forfeited 426. 284.
 309. 218.
 end 15,346 401. 14,840 316.


2019 Annual LTI Grants. Dev Trezise Andrews Committee granted LTI
 awards February 2019 similar
 2018. Dev’s 2019 LTI target increased $2,700,000
 CFO 2018. Andrews’ target increased $750,000
.
 2019
 increased. Trezise’s LTI target $800,000 unchanged.
 February 28, 2019 Committee granted executives restricted shares RSUs three-year service performance-based shares two installments March 1 2021 2022 2019 Performance Period Adjusted EBITDA Run Rate target 0. 0%-Vested Shares
 Represents granted 2019.
 shares may lower performance.
 Dividends not paid unvested accrue vesting shares RSUs.
determined time-vested performance-based shares grant value volume-weighted average closing price common stock period nearest share. time-vested valued closing price performance-based outcomes SEC. footnote 2 Summary Compensation Table.
. Storey’s annual grant RSUs.
 2019 Annual LTI Grants
 Time-vested Performance-based
.
 Current Executives
 Jeffrey K. Storey(5) 358,884 $5,040,000 538,328 $7,560,000 $12,600,000
 Indraneel Dev 76,904 1,080,000 115,356 1,620,000 2,700,000
 Stacey W. Goff 56,966 800,000
 Scott A. Trezise 22,786 320,000 34,180 480,000 800,000
 Shaun.32,043 450,000


AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
. QUARTERLY FINANCIAL DATA
 data December 31, 2019 2018 millions
 Operating expenses Depreciation amortization accretion Selling administrative development expenses.
 Months
 June December
 Operating revenues $1,813. $1,889. $1,953. $1,923. $7,580.
 Costs operations 543. 563. 559. 2,216.
 Operating income 614. 683. 728. 661. 2,688.
 407. 434. 505. 569. 1,916.
 397. 429. 562. 1,887.
 397. 429. 562. 1,887.
 income share.
income American Tower Corporation. 89. 96. 12 26.


table restructuring liability September 30, 2019 accrued compensation liabilities Consolidated Balance Sheet
 restructuring costs based estimates. differ. additional incurred changes estimates recognized.
 Employee Separation Consulting Costs
 Balance October 1, 2017 $.
 Accrued costs.
 payments.
 Balance September 30, 2018.
 costs.
 payments.
 Balance September 30, 2019.


Long-term Incentive Program Performance Share Awards
 December 31, 2017 granted long-term awards. earned three-year goals annual growth sales operating income. 200% LTIP shares earned goals maximum target. quarterly
 nonvested LTIP shares
 December 31, 2019 revised attainment rates LTIP shares sales operating income additional stock-based compensation expense $3. 7 million.
 Shares Expected Attainment Average Date Value
 Nonvested December 31, 2018 540,697 $19.
 Forfeited -56,567.
 185,339.
 Nonvested December 31, 2019,469 $20.


Cash Equivalents Securities
 increased $485. 5 million to $2,455. 2 million December 2019 1,969. 7 million 2018 public offering stock options.
 market funds repurchase agreements term deposits. bonds corporate bonds commercial paper maturing 12 months December 2019.
 cash equivalents securities operating investing financing activities
 subscription solutions. Shopify Payments fee. fees employee expenditures marketing shipping hosting leased facilities.
 2019 $70. 6 million. net loss $124. 8 million $158. million stock compensation expense $35. million amortization depreciation $37. deferred income taxes. merchant cash advances loans foreign exchange loss $3. 2 million $50. 4 million positive cash flows. Additional cash $162.$84. million $64. million income tax $12. million deferred revenue $1. million lease. offset $142. million $74. 2 million $56. million trade receivables $12. 4 million assets prepaid expenses.
 $9. 3 million. net loss $64. 6 million $95. million stock compensation $27. million amortization depreciation $5. million foreign exchange loss $1. 3 million $65. 4 million positive cash. Additional $38. 1 million $20. million accounts payable $9. million deferred revenue $8. 4 million lease. offset $94. 2 million $50. million cash loans $32. million trade receivables $10. million assets.
Cash flows investing securities business leasehold improvements computer equipment software development.
 Net cash December 2019 569. 5 million $265. 5 million business acquisitions 6RS acquisition $241. 6 million securities $ 56. 8 million property equipment $5. 6 million software.
 cash December 31, 2018 $810. 6 million purchases $749. 7 million securities. $28. 0 million property $19. 4 million business $13. 6 million software.
 private placements public offerings stock options.
 December 2019 $736. 4 million $688. 0 million September 2019 public offering $48. 3 million Class A. $1,072. 2 million 2018 $1,041. 7 million February December public offerings remaining $30. 5 million stock option exercises.

 securities $2,455,194 1,969,670
 Operating $70,615 $9,324
 Investing,475),633
 Financing 736,351 1,072,182
 foreign exchange
 239,233 269,006
 securities 246,291 762,625
 $485,524 $1,031,631


Free Cash Flow. represents net cash operating activities minus capital expenditures software development costs. performance future plans.
 exclusion capital expenditures-developed software excludes. not calculated GAAP. provides information investors results.
 limitations substitute financial results GAAP. consider alongside GAAP financial performance measures results. table reconciliation free cash flow net cash
 2017
 Net cash activities $10,317  $3,295 $4,863
 Capital expenditures (5,269) (1,721) (1,667)
 Capitalized software development costs (7,819) (8,499) (6,160)
 Free cash flow $(2,771) $(6,925) $(2,964)


EXPENSES
 Transaction costs bank handling channel distribution costs.
 2019 Group incurred research development RMB30,387 million (2018 RMB22,936 employee benefits RMB24,478 million,088 million.
 share-based compensation RMB10,500 million (2018 RMB7,900 million.
 No development expenses 2019 2018.
 amortisation intangible assets media contents.
 RMB1,051 million (2018 RMB524 million.
 Transaction costs 85,702 69,976
 Employee benefits
 Content costs 48,321
 28,954
 Bandwidth server custody fees 16,284
 Depreciation
 Promotion advertising expenses,405
 Travelling entertainment expenses
 Auditor’s remuneration
 Audit services
Non-audit services


table provides detail amounts reclassified AOCL
 components derivative hedging activities. See Note 15 Hedging Activities Consolidated Financial Statements details.
 millions 2019 2018 2017 Amount Reclassified AOCL
 benefit pension plans post benefits
 Prior service credits.
 Actuarial losses (4.
 pre-tax amount (4. income
 Tax benefit.
 tax.
 gains (losses cash flow hedging derivatives
 Foreign currency forward contracts. Cost sales
 Interest rate currency swaps.
 Treasury locks. Interest expense
 pre-tax amount.
 Tax (expense benefit.
 tax.
 reclassifications period (2. 5. (7.


Deferred Compensation Plan
 Company non-qualified unfunded deferred compensation employees receipt compensation retirement. returns. administrative expenses. deferrals gains losses liabilities subject claims creditors.
 liabilities recorded at fair value. Changes value included operating expense Consolidated Statements Operations. manages risk with investments life insurance policies mutual funds market funds. investments recorded fair value. Changes included in interest income Consolidated Statements Operations. deferred compensation plan balances Consolidated Balance Sheets
 Deferred compensation plan asset components
 Cash surrender value life insurance policies $16,883 $13,103
 Fair value mutual funds money market funds 21,975 18,867
 $38,858 $31,970
 assets
$38,858,970
 Deferred compensation
 compensation $425
 liabilities 39,665 32,283
 $40,090


securities excluded from diluted common shares
 Participating securities stock options 2015 Plan 2009 Equity Incentive Plan exercised before options vested. Unvested shares non-forfeitable right to dividends. repurchase termination at original exercise price. repurchase right lapses.
 redeemable noncontrolling interest 85% equity OpenEye. agreement put option sell shares. call option purchase remaining shares. options exercised first quarter 2023. temporary equity. net income loss recorded in consolidated statements operations.
 Ended December 31,
 2017
 Stock options 223,259 229,294 258,917
 Restricted stock awards
 units 136,600 148,175 188,050
 Common stock subject to repurchase 250 957 13,281


. operating expenses
 logistics METRO LOGISTICS offset.
 2017/2018 2018/2019
 Expenses logistics services 272 254
 Losses disposal fixed assets
 losses goodwill
 Miscellaneous
 293


Cash Resources table financial condition
 net working capital improved $18. 0 million December 31, 2019 elimination quarterly dividend $27. 6 million decrease accrued compensation $7. 4 million.
 offset current lease liabilities $6. 2 million 2019 ASU No. 2016- 02 Leases. impacted decline accounts receivable $13. 1 million 2018.
 significant use funds 2020 interest payments indebtedness $125. 0 million $130. 0 million principal payments debt $18. 4 million capital expenditures $195. 0 million $205. 0 million.
 dividend savings reduce debt repurchase Senior Notes. debt debt agreements.
 cash flows borrowings credit twelve months.
 future operations performance cash flow. economic conditions financial business regulatory legislative factors.
access cash flows subsidiaries parties borrowing agreements restrictions dividends intercompany loans investments likely restrictions.
 future agreements restrict dividends advance cash.
 business plans projections change require additional financing. include bank borrowings strategic debt financing sales nonstrategic assets vendor financing sales equity debt securities.
 no assurance cash flows revenue growth future borrowings equity issuances. Failure financing reduce operations capital expenditures financial condition results.
 December 31,
 2019 2018
 Cash equivalents $ 12,395 $ 9,599
 Working capital (deficit) (67,429) (85,471)
 Current ratio 0. 72. 70


Hilli LLC
 impacts income cash
 income
 Liquefaction services revenue 218,096 127,625
 oil derivative instrument (26,001 16,767
 cash flows
 debt repayments (243,513) (30,300
 debt receipts 129,454


. Personnel expenses
 salaries restructuring severance payments €23 million €19 million. variable remuneration €52 million 2017/18 €81 million 2018/19. long-term remuneration €7 million €16 million.
 Wages salaries 2,173
 Social security post benefits


outstanding debt December 31, 2018
 Note 13 Item 8 Annual Report Form 10-K disclosures.
 December 31, 2018
 Gross Carrying Amount Unamortized Discount Deferred Financing Costs
 2021
 2022
 2026
 2027
 2047
 Total debt $2,700 $2,671


Unfunded Status
 unfunded Combined Pension Plan post-retirement benefit plans
 current-retirement obligations recorded balance sheets accrued expenses liabilities benefits.
 Combined Pension Plan Post-Retirement Benefit Plans
 Years Ended
 millions
 Benefit obligation $(12,217),594 (3,037),977
 assets 10,493
 Unfunded (1,724) (1,561
 Current
 Non-current(1,724)


. Expenses Liabilities
 purchases $4,328 $1,679
 legal fees 3,860 3,380
 advertising costs
 Symphony 3,517 3,394
 roadside assistance costs 1,709
 telephone charges 1,605
 derivatives 251 2,859
 restructuring 976
 rent 3,283
 10,259
 $29,330 $31,235


Software Development Costs
 capitalize purchased software acquisition internal-use or future alternative use criteria. capitalize labor costs technological feasibility preliminary until available release. Research development software maintenance costs expensed incurred.
 estimate useful life capitalized software amortize value over. If shorter amortize remaining value or impaired write-down charge to earnings.
 availability release amortization capitalized software costs product. Amortization recorded ratio current revenues to future revenues straightline method estimated economic life three to five years.
 balance sheet unamortized capitalized costs compared with net realizable value. future revenues reduced by costs maintenance client support.
 unamortized capitalized costs exceed net realizable value written off. write-down recorded charge to earnings. unamortized balances software
,641 $317,637
 amortization,977
 $243,929 $209,660


 table summarizes 2019
 aggregate intrinsic value options less $1 million.-average contractual term 0. 18 years.
 cash proceeds less $1 million. tax benefit less $1 million. total value 2019 2018 2017 less $1 million.
-Average Exercise Price
 Exercisable December 31, 2018.
.
 Forfeited/Expired.
 Exercisable 31, 2019.


. Stock-Based Compensation
 2014 RSU Plan restricted stock 3,000 units. unit converts share stock
. fair value awards determined closing market price common stock.
 2018 2019 292 315 awards granted. stock activity
 Performance-based awards vest year after grant. Service-based awards vest one-third annually
 grant date. amortized over grade-vesting periods. total unrecognized compensation costs
 $1,476 at March 31, 2019.
 four fixed stock option plans. 2004 Stock Option Plan
 10,000 shares. 2004 Non-Employee Directors’
 1,000 shares. No awards after August 1, 2013. 2014 Stock Option Plan
 10,000 shares.
. exercise price not less
 market price stock grant maximum term 10 years. 2004
 vest 25% annually
Option Plan one-third annually. service grant date. March 31, 2019 12,447 shares
 common stock future issuance options.
 Value Share
 Non-vested March 31, 2018 $16.
 Granted.
.
 Cancelled forfeited.
 Non-vested 2019 $15.


FINANCIAL STATEMENTS data
 liability-driven investment strategy equity fixed-income investments interest rate mismatch return pension liabilities. Risk plan liabilities funded status. portfolio diversified equity fixed. private equity returns portfolio diversification. risk measured monitored quarterly reviews annual liability measurements/liability studies.
 table pension plan assets
 common stocks industries. shift investments value growth large objectives long-term growth volatility protect erosion purchasing power.
 short-term money-market funds.
 partnerships U. international industries.
 long-term government bonds maturity 10 years zero-coupon Treasury securities 20 years.
 investment grade U. corporate bonds 10 years. high-yield emerging market debt. bank loans.
 investments securities U. non-U. Sestate trusts companies real estate. redeemed valuation notice fifteen days before.
 investments measured fair value NAV per share. not classified fair value hierarchy. reconciliation pension plan assets.
 December 31,
 Equity securities. $24,586 $20,469
 Equity funds.
 Bond funds 33,991 19,146
 207,901 202,393
 Real 2,979 2,652
 Cash 5,700
 Partnerships(3) 7,539 9,172
 fair value assets $282,696 $259,752


Earnings Per Share
 computed Net earnings Black Knight weighted-average shares common stock.
 dilutive securities include unvested restricted stock awards BKFS Class B common stock. December 31, 2017 diluted earnings adjusted income tax expense conversion BKFS B A. effective tax rate December 2017 (16. 7)%, deferred income tax liability. includes 63. 1 million shares BKFS Class B common stock. dilutive effect 0. million. shares unvested restricted shares December 2019 2018 2017.
 BKFS Class B earnings losses Black Knight not participating. diluted net earnings per share presented.
 computation earnings
 Year December
 Net earnings Black Knight $108. $168.
 earnings
 Weighted average shares common stock 147.
earnings share. 74 $1. $2.
 taxes equity losses unconsolidated affiliates $192.
 tax noncontrolling interests.
 $224.
 Black Knight $108. $168.
 diluted earnings
 shares common stock 147. 88.
 unvested shares
.
 shares BKFS Class common stock 63.
 148. 148. 152.
 earnings share $0. 73 $1.


 equipment spares. 1.
 proceeds patent litigation arbitration settlements (€159 million equipment revenue.
 December
 Equipment 631,504 1,068,645
 Spares service 186,577 215,215
 818,081 1,283,860


Company reviews valuation allowance recognizes benefits deferred tax assets ASC 740. decrease revenue profitability 2019. domestic tax assets valuation allowance against established third quarter 2019. deferred tax assets may adjusted evidence.
 December 31, 2019 deferred tax assets $56. 2 million offset by valuation allowance $48. 6 million. $42. 8 million domestic tax assets. remaining $5. 8 million state research development credit carryforwards foreign net operating loss credit carryforwards. remaining $7. 6 million not foreign jurisdictions.
 Supplemental balance sheet information
 December 31, 2019 2018 assets foreign domestic loss carry-forwards research development tax credits unamortized research development costs state credit carryforwards totaled $41. 3 million $28. 8 million. December 31, 2019.1 million deferred tax assets expire 2020 2039. remaining amortize 2029 carryforward indefinitely.
 December 31, 2019 2018 cash equivalents $73. 8 million $105. 5 million short-term investments $33. 2 million $3. 2 million-term liquidity $107. 0 million $108. 7 million. foreign subsidiaries held cash $52. 3 million $87. 1 million 48. 9% 80. 1% short-term liquidity liquidity. reinvest funds outside. tax. tax.
 2019 2018 2017 no income tax benefit stock options.
 December 31, 2019
 Deferred Tax Assets
 Domestic $46,266
 International 9,911
 $56,177


Liquidity risk
 policy maintain strong capital base investor market confidence sustain future development.
 liquidity needs affected factors uncertainties global economy semiconductor industry. cash requirements fluctuate sources liquidity current requirements capital expenditures 2020.
 return cash dividend payments share buybacks.
 contractual obligations December 31, 2019.
 short-term lines credit €150 million. outstanding nil undrawn portion €150 million. standby revolving credit facility €150 million available through December 16, 2023.
 flexible delivery schedules delivery.
 1-5 years
 Accounts payable 119,712
 Income tax payable 34,599
 Accrued expenses payables 149,843
 Lease liabilities 24,261
 Pension liabilities 7,734
 Purchase obligations
100,694 99,546
 Capital 43,692 40,745
 obligations 480,535 451,755


effects differences income expense deferred tax
 December 31, 2019 2018 Company had $521. 9 million $768. 9 million federal NOL carryforwards before benefits Section 382. decrease utilization. expire 2024 to 2036 small portion 2017 indefinitely.
 December 31, 2019 2018 $134. 5 million $83. 7 million federal credit carryforwards Section 383. expire 2028 to 2039.
 December 31, 2019 2018 $825. 8 million $801. million state NOL carryforwards. expire 2020.
 states NOL carryover 2017. NOLs 2017 carry forward indefinitely. December 31, 2019 2018 $138. 6 million $115. 8 million state credit carryforwards before. 2020.
 December 31, 2019 2018 $757.1 $734. 4 million foreign NOL carryforwards before valuation. 2020. 2025.
 December $76. million $68. 8 million foreign credit carryforwards before. majority expire 2026.
 valuation allowance $186. 3 million Japan NOLs 2020 to 2024. full valuation allowance. state deferred tax assets foreign NOLs tax credits jurisdictions.
 Net operating loss tax credit carryforwards $612. $584.
 interest expense carryforward.
 Tax-deductible goodwill amortizable intangibles.
 research development expenses.
 Reserves accruals.
 Property equipment.
.
 Undistributed earnings foreign subsidiaries.
 Share-based compensation.
.
.
 Deferred tax assets liabilities before valuation allowance 605.
.
deferred. $211.


FINANCIAL RESULTS
 2019 foreign exchange rate 1. 3255 USD/CDN.
 2018 restated IFRS 15 change accounting policy. policies.
 2019 translated average exchange rate 1. 2773 USD/CDN.
 REVENUE increased 22. 4% (17. 9%. US$782. 3 million US$662. 3 million 2018. MetroCast rate increases Internet FiberLight acquisition video service. increased 5. 2%.
 OPERATING EXPENSES increased 19. 5% (15. 2% MetroCast rate FiberLight compensation expenses marketing initiatives non-recurring costs $3. 1 million$2. 5 million hurricane Irma.
 EBITDA increased 26. 1% (21. 5%. US$351. 3 million US$288. 4 million 2018. MetroCast FiberLight acquisitions organic growth.MetroCast FiberLight acquisitions costs $3. million$US2. 5 million hurricane Irma EBITDA increased. 7% 2019.
 acquisitions decreased. 4%. dark fibres Florida FiberLight $21. 2 million (US$16. 8 million 2018 capital expenditures MetroCast acquisition expansion Florida. capital intensity 18. 6% 25. 1% 2018 lower capital expenditures revenue growth.
 Foreign exchange impact
 Revenue 1,036,853 847,372.
 Operating expenses 571,208,172.
 Adjusted EBITDA 465,645 369,200.
 Margin 44. 9% 43. 6%
 Acquisitions property plant equipment 192,605 212,580.
 Capital intensity 18. 6% 25. 1%


. Registrant’s Common Equity Purchases Securities
 common stock traded New York Stock Exchange. tabulation high low sales prices cash dividends share.
 June 13, 2019 Board Directors dividend $0. 11 share stock July 26,. June 18 holders 397.
 Dividends
 Year Ended April 27, 2019
 First Quarter $45. $37
 Second Quarter.
 Third Quarter.
 Fourth Quarter.
 Year Ended April 28, 2018
 First Quarter.
 Second Quarter.
 Third Quarter.
 Fourth Quarter.


Uncertain Tax Positions
 uncertain tax recognized largest amount-likely. recognized less 50% likelihood.
 table unrecognized tax benefits fiscal years 2019 2018 2017
 tax benefits 30 2019 $1. 6 million effective tax rate. substantial change benefits twelve months.
 interest penalties. September 30 2019 no accrued interest penalties uncertain tax positions recorded consolidated financial statements.
 Company subject to income taxation. federal state levels. years. unutilized losses tax credits. subject foreign income taxes. federal tax return September 30 2017 under examination. not under examination other taxing authorities.
 Gross unrecognized tax benefits year $1,321
 Additions tax positions current year
 Additions prior years
 Reductions
 Tax settlements
unrecognized tax $1,607,321,181


. Property equipment
 Depreciation amortization $80. 2 million $81. 2 million $75. 9 million 2019 2018 2017.
 Company capitalizes compensation cost. capitalized $10. 7 million. 5 million $9. 7 million. infrastructure costs.
 exchanged used equipment new equipment. $3. 3 million $3. 2 million $9. 1 million gains $1. million $1. $3 million.
. equipment interest free note obligations twenty-four month term. no payments first six months eighteen payments. December 31, 2019 2018 $12. 5 million $11. 2 million note obligations outstanding equipment. recorded assets purchased value imputed interest rate. discounts $0. 4 million. million amortized interest rate method.
 assets
 Network equipment $566,936 $538,761
Leasehold improvements 227,388 214,495
 134,726 124,018
 18,169
 958 905,333
 depreciation amortization,356
 leases
,170,170
 depreciation (207,820),822)
 200,350 206,348
 $368,929 $375,325


Cash
. GAAP measures
 cash flow provides information financial condition uses. use excess cash capital equipment acquisition opportunities dividend payments. not. GAAP measure not cash flows. GAAP.
 Fiscal Year
 millions 2019
 Net cash operating activities $232. $209. $130.
 Purchases property plant equipment software (180. (135. (98.
 Acquisition businesses cash (79. (13. (35.
 Proceeds divestiture business 12.
 disposals property plant equipment assets.
 sale equity investment 6.
 insurance recovery.
 Dividends paid (38.
 Free cash flow $(53. $34.(16.


Cash Flow Hedges
 Company interest rate swap agreements variable rate senior secured loans. reduce variability interest payments based LIBOR. variable interest LIBOR fixed rate.
 February 2018 interest swap agreements $250 million. $1. 1 billion maturity December 2021 fixed interest rate 1. 08%.
 $300 million $250 million maturity August 2022 fixed interest rates 1. 66% 2. 59%. counterparties financial institutions.
 September 2018 terminated interest rate swaps. net derivative gain $60 million reclassified into earnings.
 September 2018 new interest rate swap agreements cash $1. 5 billion Loans. maturity August 2025 fixed interest rate 3. 00%.
. gain (loss) reclassified earnings interest payments impact earnings. hedge effectiveness quarterly.
effect cash flow hedges income earnings
 reclassify gains $1 million earnings next 12 months.
 January 3, 2020 December 28, 2018 December 29, 2017
 Total interest expense statements $133 $138 $140
 income $(55) $ $10
 reclassified loss earnings 12 months.


table shows impacted ASC Topics 606 340-40 Balance Sheet January 31, 2019
 Short long assets ASC Topic expenses
 deficit adjustment $179. million ASC Topic 606 340-40 February 1 2018.
 net cash investing
 ASC 606 340-40
 Current assets
 receivable $474. $73. $547.
 Prepaid expenses assets 192. 112.
 Deferred income taxes 65. 72.
 Other assets 337. 319.
 DEFICIT Current liabilities
 Deferred revenue 1,763. 140. 1,903.
 Other accrued liabilities 142. 144.
 Long-term deferred revenue 328. 37 365.
-term income taxes 21.
 deferred 79. 73.
 Stockholders’ deficit
deficit,147. 4). 5).


. Employee Performance Rights Plan
 approved AGM 23 November 2017. awards executives performance. awards performance rights over shares three years performance measures continuous employment. one share rank equally.
 rights valued KMP Note 16(d).
. vesting date rights 2 July 2017 2 July 2018 Board notifies outcomes performance. likely 31 August 2020 31 August 2021.
 No rights vested lapsed. issued 30 June 2018 355,316 2 July 2017.
 average life rights 1. 77 years. 17 years.
 Performance rights 30 June 2019
 Grant Date Vesting Fair Value per Right Rights Granted. 30/6/2019
 2 2017 31 Aug 2020.
 31 Aug 2021.


Segment Results
 three reportable Blizzard King. Chief Executive Officer. reviews performance deferred online-enabled games share-based compensation amortization fees financings restructuring costs non-cash charges. total assets no disclosure.
 segments consistent with organizational structure performance resources financial information. aggregate segments.
 reportable net revenues operating income
 Intersegment revenues reflect licensing service fees segments.
 December 31, 2018
 Blizzard
 Revenues
 Net revenues external customers $2,458  $2,238  $2,086  $6,782
 Intersegment net revenues
 revenues $2,458 $2,291 $2,086 $6,835
 operating income $1,011 $685 $2


Intangible assets
 technologies relationships trade names. lives two to seven years. 2019 2018
 Amortization expense $7. million $4. million. million 2017 recorded statements.
 Amortization
 Completed technologies. 4 years $20,341 $7,104 $13,237
 Customer relationships 4. 8 years
 Trade names 4. 5 years
 Total intangible assets $38,587 $14,182 $24,405


Liquidity Capital Resources
 cash balances investments liabilities capital expenditure expense finance lease interest debt payments. liabilities capital expense lease interest debt.
 consolidated cash flows.
 Net Cash Operating Activities. receipts customers. vendors employees interest payments finance lease vendors note holders. changes profit interest payments. interest payments note obligations $38. million $32. 7 million $30. 8 million.
 Cash Investing Activities. purchases property equipment. $47. million $49. 9 million $45. 8 million 2019 2018 2017. changes network expansion. 2017 obtained $11. 3 million $9. 9 million $9. million equipment software non-cash installment.
 Cash Financing Activities. dividend payments stock purchases principal payments finance lease obligations.stock buyback program $6. million 2018 $1. 8 million 2017. no stock purchases 2019. paid $112. million $97. 9 million $81. 7 million quarterly dividend. increased. finance lease obligations $9. million $10. 3 million $11. 2 million 2019 2017 impacted network expansion. debt offerings. 2019 $152. million €135. million 2024 Notes. August 2018 $69. 9 million $70. million senior secured notes. payments $10. million $9. 4 million $3. 8 million 2019 2018 2017.
 $ 148,809
 investing
 financing
 exchange rates cash
 cash equivalents
 $ 123,329


SG&A costs 2018 $222. million increase $5. 7 million $216. 3 million 2017. table shows twelve months October 31, 2018 2017.
 change start-up expense relates. Non-construction expenses labor training recorded start expense until operations. start-up expenses. increase. expenses increase until production. production expenses recorded costs goods sold. increase legal expenses attributable defense II Item 3. Legal. increases trainee expense administrative salaries personnel growth plans. decrease bonus expense not. decrease ESOP expense difference 2018 2017. increase SG&A expenses net increase.
 General Administrative Costs
 Twelve months October 31, 2018 2017 Increase
 Start-up expense (Tyler, Texas complex $13,394 12,991
Legal 17,573,879
 68,863 61,847
 Administrative salary 42,288 36,193
 Trainee 21,553 16,182
 aircraft 2,167
 Stock compensation 15,702 16,952
 Marketing 32,624 34,272
 Start-up. 4,022
 Bonus 15,098
 Employee Stock 2,000 18,000
 $221,965 $216,303


table summarizes dilutive shares excluded-average
 Company convertible notes excess Common uses treasury stock method dilutive effect conversion spread net income. income average market price Stock exceeds conversion price $81. 45 per share.
 Ended December 31,
 Shares stock equity incentive plans 6,832 10,806
 Convertible senior notes 1,905
 shares excluded diluted net loss share 8,737 9,022 10,806


Employee Share Ownership Plan
 cost shares intu properties plc Trustee ESOP deduction equity.
 purpose ESOP acquire hold shares transferred employees employee incentive arrangements 7 joint ownership. 2019 no dividends waived (2018 £1. 6 million.
 Shares million
 1 January 11. 37. 11. 39.
.
 (1. (3.
 31 December 10. 33. 11. 37.


income tax provision 2019 2018 2017
 loss foreign net operating loss carry-forward $0. 3 million
 future income. expires 2025. valuation allowance
.
 tax credit carry-forwards $5. 1 million offset future state tax.
 expire 2020 2029. deferred tax $4. 0 million
. valuation allowance $1. 8 million
.
 December 31, 2019 $58. 2 million undistributed earnings profits.
 taxed income. taxes
. reinvested no
 local withholdings taxes
 taxes.
 Ended December 31,
 2018 2017
 Federal $ 18,682 22,606 53,998
 State 5,711 6,182 6,595
 Foreign 7,323
 66,778
 Deferred
 Federal (863 (3,127 1,590
 State (326
Foreign (212
,265 1,574
 30,315 31,541 68,352


Contractual Obligations
 table summarizes obligations March 31, 2019 effect liquidity cash flows
 Operating lease obligations $18. 1 million future payments liability. Atmel San Jose California.
 Capital purchase obligations construction property equipment. not liabilities received goods title.
 obligations licenses purchase commitments wafer foundries.
 Term Loan Facility matures May 29, 2025.
 principal 2023 revolving loans paid May 18, 2023.
 principal 2017 senior convertible debt February 15, 2027.
 2015 Senior Convertible Debt February 15, 2025.
 2017 Junior Convertible Debt February 15, 2037.
 pension obligations 5 years payments 2025 2029. excludes subsequent 2029.
 2018 recognized-time transition tax unrepatriated foreign earnings estimated $644. 7 million U. tax reform.December 31, 2018 increased amount $13. 1 million to $657. 8 million expect cash payments $280. 7 million tax carryforwards. first payment $35. 0 million September 30, 2018 expect future cash payments $245. 7 million. tax paid eight years 8% transition tax 2019 2023 15% 20% 25% 2024 2025 2026.
 contractual obligations include uncertain tax positions.
 Purchase orders raw materials commitments wafer foundries not included table. amount. contractual obligations enforceable binding terms quantities price provisions timing. purchase orders manufacturing needs fulfilled vendors short time horizons. agreements minimum quantities prices three months. contracts outsourced services obligations not significant cancellation penalty.
 expected timing estimated current information.payments amounts receipt goods obligations.
 Payments
 Less 1 – 3 years 5
 Operating lease obligations $167. $49. $68. $27. $22.
 Capital purchase obligations 18.
 purchase obligations commitments 205. 194.
 Loan Facility 2,435. 72. 174. 2,013.
 Revolving Credit Facility 3,879. 294. 3,438.
 2021 Notes 2,293. 1,145. 1,065.
 Convertible Debt 2,339. 2,170.
 Convertible Debt 1,893. 56 1,753.
 Convertible Debt 964. 30. 886.
 Pension obligations 20.
 Transition tax obligation 245. 64 126.
 contractual obligations $14,461. $652. $1,895.$4,927.


failed-sale-leaseback accounting consolidated results December 31, 2018
 costs data centers colocation sale $20 million gain proceeds assets sold liabilities assumed. loss $102 million pre-tax cash proceeds financing obligation. net loss $82 million included selling administrative expenses consolidated statement December 31, 2017.
 November 3, 2016, ceased recording depreciation property equipment amortization assets. additional depreciation amortization $67 million January 1 2017 May 1, 2017.
 adopting ASU 2016-02 accounting failed sale leaseback applicable real estate assets financing obligation derecognized from consolidated financial statements. Note 1— Background Accounting Policies impact failed-sale-leaseback.
 Impact Net Income
 December 31,
 millions
revenue $74
 cost sales 22
 loss sale business (102)
 depreciation-time (44)
 (69)
 interest (55) (39)
 income tax 65
 net income(21)


Contractual Obligations Liabilities
 commitments operating financing leases offices colocations servers network infrastructure data center operations. commitments December 31, 2019
 Finance leases servers network infrastructure data center operations.
 severance agreements employees $6. 4 million terminated.
 Payments Due Ending December 31, 2020
 1 2 3 4 5
 Operating leases 12,807 3,519 5,102 4
 Finance leases 2,165 1,423
 Total contractual obligations $ 14,972 $ 4,942 5,838 4,192


AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
 information assets years December 31,
 assets Right-of-use new lease accounting standard.
 Balances translated exchange rate comparability.
 include corporate assets cash equivalents tangible intangible income tax accounts.
. $22,624. $18,782. $19,032.
 Asia 5,307. 4,770
 Africa. 1,929.
 Europe 1,535. 1,438
 Latin America 8,125. 5,594. 5,868.
.
 470.
 Total assets $42,801. $33,010. $33,214.


Prepaid expenses assets
 December 31, 2019 2018
 November 2014 February 2016, term convertible Clean Energy Collective. term 16% convertible 10%. 2018 amended maturity June 2020 waive conversion features increase interest. January 2019 loss representation board. equity. December 31, 2019 balance $23. 9 million expenses assets. December 31, 2018 $22. 8 million receivable.
 Note. Financial.
 Prepaid expenses $137,927 $90,981
 income taxes. 47,811 59,319
 Indirect tax receivables. 29,908 26,327
 Restricted cash 13,697 19,671
 Notes receivable 23,873 5
 Derivative instruments. 1,199
 current assets 22,040,203
 $276,455 $243,061


cash flow information years December 31,
 cash flows fund operations investments tower maintenance communications construction network installations land. distributions REIT taxable income. repay repurchase indebtedness equity. fund international expansion cash debt equity contributions.
 April 2019 Tata Teleservices Tata Sons Limited
 put options Indian subsidiary ATC TIPL
. expect pay INR
 24. 8 billion $347. 6 million 31, 2019 redeem put shares first half
 2020. Eaton Towers Acquisition
 April 2019 Tata Teleservices Sons Limited options. pay INR 24. 8 billion $347. 6 million redeem put shares first half 2020.closing Eaton Towers Acquisition April 2019 Tata Teleservices Tata Sons Limited minority holders options holdings subsidiary ATC TIPL. pay INR 24. 8 billion $347. 6 million redeem shares first half 2020. agreement MTN acquire noncontrolling interests Ghana Uganda $523. 0 million. transaction first quarter 2020 approval. 2019 Tata Teleservices Sons options TIPL. pay INR 24. 8 billion $347. 6 million redeem put shares 2020. closing Eaton Towers Acquisition
 December 31, 2019 outstanding indebtedness $24. 2 billion current portion $2. 9 billion. sufficient cash flow capital expenditures debt service obligations distributions. cash 2020 borrowing capacity fund distributions capital expenditures debt obligations acquisitions.December 31, 2019 $1. 3 billion cash equivalents foreign subsidiaries $583. million ventures. subsidiaries pay interest debt repatriate earnings expansion capital. accrue taxes.
 cash
 Operating $3,752. $3,748. $2,925.
 Investing (3,987. (2,749. (2,800.
 Financing 521. (607. (113.
 currency exchange rates equivalents (13. (41.
 increase $273. $350. $18.


Orders Digital Industries declined lower demand factory automation motion control adverse market conditions automotive machine building. offset growth process automation moderate increase software currency volume acquisitions.
 drivers revenue growth declines. orders declined Europe. S. Africa Middle East Americas offset increase Asia Australia. Revenue rose regions. software EBITA double-digit increase.
 expenses offset € 50 million gain equity investment. process automation moderate increase higher revenue. lower declines short-cycle. Severance charges € 92 million 2019 € 75 million. order backlog € 5 billion € 4 billion converted revenue 2020.
 Digital Industries market momentum. demand investment goods eroded. regions impacted suffered. process industries industries low demand. automotive industry hit production cuts Europe weak demand China.impacted machine building industry Germany Japan.
 pharmaceutical chemicals industries flattened
 2019 automotive. food beverage industry grew modestly electronics semiconductor production expanded prices pressure. 2020 market Digital Industries weaken. Manufacturing investments decrease stabilize. decline investment sentiment trade tensions expectations cautiousness. weakening growth China spillover Asian
 Europe.
 Fiscal year
.
 Orders 15,944 16,287
 Revenue,087 3 %
 software business 4,039
 Adjusted EBITA 2,880 2,898
 margin. %. %


Intangible Assets
 remaining $152 December 31, 2019 amortized 2020.
 $ 44
 Customer lists intangibles 4,529
 relationships
 Trade names 2,248
 8,244
 Accumulated amortization
 Intangible assets $ 152


table impairment charges
 Restructuring costs $2. 2 million lower severance expenses. Costs restaurants increased $3. 8 million $3. 5 million charge. Gains property increased $7. 9 million $5. 7 million sale. million eminent domain.
 Note 9 Impairment Charges.
 Restructuring costs $8,455 $10,647
 closed restaurants 8,628
 losses property (6
 Accelerated depreciation
 Operating restaurant impairment charges
 $12,455 $18,418


6. Financial Data
 statements 7 Financial 8 Financial Statements Data Annual Report Form 10-K. historical not future.
 2018 2017 adjusted new standard Revenue Contracts 606). Note 7 Revenue Financial Statements.
 2019 27, 2018 28, 2017 29, 2016 24, 2015
 Cash equivalents short-term investments $ 3,899 $ 5,391
 Working capital $ 1,743 3,421
 assets $ 8,741 $ 9,991 10,037
 debt $ 1,793
 deferred revenue unearned services $ 3,668 3,363 3,213 3,385,197
 stockholders' equity $ 1,090 2,276 2,949 2,881


Operations
 Revenue
 2019 decreased 23% pricing declines memory market. Sales DRAM decreased 28% declines 30% supply demand imbalances inventory CPU shortages. NAND decreased 12% offset increases sales volumes. demand affected transition SATA NVMe SSDs. higher NAND sales high mobile NAND discrete NAND 64- 96-layer TLC 3D NAND.
 revenue 2018 increased 50% 2017. Higher revenue DRAM high products 1Xnm DRAM 64-layer 3D NAND strong demand. Sales DRAM 2018 increased 64% 2017 prices 35% sales volumes 20% strong market conditions high-value markets. NAND increased 20% 2017 volumes 30% high-value SSD mobile NAND 3D.
 Gross Margin
gross margin decreased 46% 2019 from 59% 2018 due declines prices cost reductions costs. Underutilization IMFT impacted margin $100 million 2019 $65 million 2018 $150 million per quarter 2020.
 technology transitions capital spending re-use NAND equipment. depreciable life NAND equipment five to seven years 2020. depreciation expense 2020 $80 million $100 to $150 million per quarter remainder 2020.
 gross margin increased 59% 2018 from 42% 2017 favorable market conditions manufacturing cost reductions. pricing DRAM increased manufacturing costs declined NAND cost reductions outpaced prices.
 2019
 Revenue $23,406 $30,391
 Cost goods sold 12,704
 Gross margin 10
Selling administrative 836 4% 813 743
 Research development 2,441 10% 7% 1,824 9%
 49
 Operating income 7,376 32% 14,994 49% 5,868 29%
 Interest income 77 (222)
 non-operating income (405)
 Income tax benefit (693) (168)
 Equity net income 3%
 noncontrolling interests (45)
 Micron $6,313 27% $14,135 47% $5,089


option activity equity incentive plans December 31, 2019
 no options granted 2019 2018. value options $215. 5 million $74. 6 million $41. 2 million.
 Options Average Exercise Price Share Contractual Term Intrinsic Value
 December 31, 2016 7,384 $10. 59 5. $74,065
 Granted 23.
.
 Canceled/Forfeited.
 December 31, 2017 5,286 $10. $201,480
 8.
 Canceled/Forfeited.
 December 31, 2018 4,131 $10. $295,921
 8.
 Canceled/Forfeited.
 December 31, 2019 2,257 $13. $351,428
 December 31, 2019 $13. $351,362
. $349,002


Reporting Channels Whistleblower Protection
 legal requirements ethical standards TSMC provides channels reporting business conduct concerns.
 Audit Committee approved implemented “Complaint Policy Procedures for Accounting Legal Matters” “Procedures Ombudsman System” employees whistleblowers report financial legal ethical irregularities anonymously Ombudsman Audit Committee.
 TSMC maintains internal reporting channels employees. encourage employees report suspected noncompliance law.
 treats complaint confidential prohibits retaliation. receives reports from employees external customers suppliers. summary Number Reported Incidents.
 205 cases 132 employee relationship 47 other matters. 26 ethical matters.
 One case employee hotel advance fees disciplined. Another case personal loan terminated.
 investigation Sexual Harassment Investigation Committee four employees received discipline.
cases 116 113 150 205
 Ethics-related 16 20 14 26
 ethics violations
 Sexual Harassment Investigation Committees 5 7 4
 violations


Discontinued Operations
 December 2015, engineering manufacturing sales solar inverter line. results reflected (loss) discontinued operations net Consolidated Statements Operations.
 extended inverter warranties reflected deferred revenue Balance Sheets. costs reflected Sales Cost. Extended warranties no offered.
 May 2019 divested-tied central solar inverter repair service operation. initial warranty transferred buyer. gain $8. 6 million tax expense $2. 4 million recognized income discontinued operations December 31, 2019. includes product warranty liability recovery accounts receivable foreign exchange gain.
 Income (loss net taxes
 Years
 Sales
 Cost sales
 operating expense 1,022
 Operating income (loss) discontinued operations (121)
10,895 (24)
 discontinued operations 10,774 (32)
 taxes 2,294
 taxes 8,480


AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
. OPERATING EXPENSE
 impairment charges net losses sales disposals. records impairment charges net value partially recoverable. assets towers network location intangibles-related intangibles. Net losses sales disposals relate non towers assets miscellaneous items. acquisition-related costs integration costs.
 Impairment charges December
 2018 tower $258. 3 million carrier consolidation-driven churn. impaired tenant relationship Aircel Ltd. impairment charge $107. 3 million.
 2017 $81. million impairment charges carrier consolidation-driven churn.
 2019 impairment charges right-of-use assets land easements.
 Tower network location intangible assets $77.
 relationships.
.
$94. $211.


January 1 2019 adopted IFRS 16 impacts results. 2018 2017 results restated IFRS 16. Performance.
 Adjusted EBITDA margin net income non-GAAP not substitutes.-GAAP Measures.
 increased 5% 2018 7% Wireless 1% Cable Media. Wireless subscribers higher-rate plans higher-value devices.
 Cable revenue increased 1% Television subscribers pricing. Media revenue increased 1% higher revenue Toronto Blue Jays League Baseball higher Sportsnet revenue lower advertising revenue.
 EBITDA increased 2018 $5,983 million Wireless Cable Media. Wireless increased 10% service revenue growth expenditures subscriber volumes costs.
 Cable increased 3% Internet revenue growth shift higher-margin cost efficiency productivity initiatives.adjusted EBITDA increased 54% revenue lower operating expenses cost structure.
 increased higher EBITDA depreciation amortization. $2,059 million $1,845 million 2017 $2,241 million $1,902 million 2017.
 2018 FULL-YEAR RESULTS COMPARED 2017
 Years ended December 31
 millions
 Revenue
 Wireless 9,200  8,569
 Cable 3,932 3,894
 2,168 2,153
 Revenue 15,096  14,369
 service revenue 12,974  12,550
 Adjusted EBITDA
 4,090  3,726
 1,874 1,819
 Adjusted EBITDA 5,983 5,502
.
 income 2,059 1,845
 2,241  1,902


 table summarizes revolving credit facility amounts receivable securitization programs.
 Includes borrowings revolving credit facility subsidiaries.
 $1,137. 4 million committed December 31, 2019.
 Used lines $ 98. $ 232.
 Unused 1,245. 1,135.
 $ 1,344. $ 1,368.


revenue sale in-store online hospitality leisure services. Revenue recognised control transferred to customer service provided consideration.
 in-store control transfers customer. online. payment received revenue recognition deferred liabilities until delivered.
 Woolworths Rewards points provide discount future purchases. deferred in liabilities until redeemed customer.
 2019 2018
 53 WEEKS 52 WEEKS
 $M
 in-store 54,720  52,533
 online 2,534  1,883
 Leisure hospitality services 1,671 1,612
 Other 1,059
 Total 59,984  56,944


PERFORMANCE INDICATORS
 summary quantitative performance indicators financial performance. indicators non-GAAP not alternative operating performance liquidity.
 Definitions
 Net Sales include lasers systems accessories service. 2019 decreased 29. 6% OLS 15. 4% ILS 2018. ‘‘Results of.
 Gross Profit Percentage Net Sales calculated divided by net sales. OLS decreased to 47. 3% 2019 from 52. 7% 2018. ILS decreased 13. 3% 2019 from 26. 7% 2018.
 Research and Development Percentage Net Sales divided by net sales. important key future growth. percentage increased to 8. 2% 2019 from 7. 0% 2018. changes R&D spending ‘‘Results of.
 Net Cash Activities excess cash from billings receipts over cash vendors expenses inventory purchases.cash operations performance indicator essential business growth. changes Net Cash Capital section.
 Days Sales Outstanding Receivables calculate net divided sales multiplied days. lower higher working capital availability. more money receivables less money for research acquisitions expansion marketing. DSO 2019 unchanged 67 days 2018.
 Annualized Fourth Quarter Inventory Turns cost sales divided by net inventories. inventory higher more working capital availability higher return investments. inventory turns 2019 decreased 2. turns. 2018 decrease demand large tools offset lower inventories restructuring charges.
 Adjusted EBITDA Percentage Net Sales operating income adjusted depreciation amortization stock compensation expense restructuring costs non-operating. initiatives EBITDA Asian manufacturing locations optimizing supply chain leveraging infrastructure.
utilize financial measures adjusted EBITDA business performance decisions future. performance. GAAP. adjusted EBITDA.
 Net Sales OEM Laser Sources $886,676 $1,259,477
 Net Sales Industrial Lasers Systems $543,964 $643,096
 Gross Profit 47. 3% 52. 7%
 Profit 13. 3% 26. 7%
 Research Development Expenses Net Sales 8. 2% 7. 0%
 Income Operations Before Taxes $60,048 $361,555
 Net Cash Activities $181,401 $236,111
 Sales Receivables
 Fourth Quarter Inventory.
 Net Income Operations Sales 3. 8% 13.
 Adjusted EBITDA Net Sales 18. 1% 28. 9%


. expenses
 Workers’ compensation $9,687 $9,020
 wages 14,142
 rebates 13,529 7,828
 vacation
 property taxes 11,331
 payroll taxes
 9,986 11,922
 $82,940 $69,953


PERFORMANCE MEASURES
 TORM defines cash equivalents restricted undrawn credit facilities.
 financial position liabilities cash buffer. invest possibilities.
 Cash equivalents restricted cash 72. 127. 134
 Undrawn credit facilities 173. 270.
 Liquidity 245. 404.


rewards executives three measures three year
 Relative TSR LTI outcomes shareholder value. peer group ASX30 metals mining. 75th percentile higher 100% vesting median 50%. Between pro-rata vesting 50% to 100%. below median zero vesting.
 Sales per square metre productivity Food Drinks businesses. physical network in‐store online sales success.
 ROFE long‐term shareholder value. improvements earnings growth disciplined allocation capital management assets. Lease‐adjusted ROFE earnings growth allocation assets. leases sites leased. similar accounting standard definition ROFE lease-adjusted.
 Sales/SQM ROFE targets published performance period.
 SALES/SQM
.
.


table compares consolidated results 2019 2018:
 Interest expense. increased $279. 1 million 2019 $254. 1 million 2018 due increase $29. 9 million Teekay LNG lease obligations Myrina Megara Yamal Spirit debt balance Bahrain Sean Spirit
 increase $6. 7 million additional interest expense Teekay Tankers sale-leaseback financing transactions $6. 3 million decreases capitalized interest delivered
 $6. 7 million interest expense $6. 3 million decreases capitalized interest
 decrease $4. 1 million interest Teekay Parent 2018 prepayment amounts lower debt issuance cost amortization 2019 amendment.
 Realized unrealized gains non-designated derivative instruments. Net losses $13. 7 million 2019 $14. 9 million 2018
 losses relate settlements
swap.
 2019 2018 amounts $1. 1 billion $1. 3 billion rates 3. 0% 2. 9%. Short-term interest rates less than 3. 0% incurred losses $8. 3 million $13. 9 million.
 losses termination 2019 $13. 7 million 2018. interest rates unrealized losses $7. 9 million 2019 gains $33. 7 million 2018.
 2019 losses $26. 9 million warrants Teekay loss $25. 6 million. 2018 unrealized losses $21. 1 million Warrants. Financial Statements Measurements.
 Foreign Exchange. losses $13. 6 million 2019 gains $6. 1 million 2018. due revaluation debt Euro-denominated loans leases cash gains cross currency swaps.
NOK liabilities stronger. Dollar. Losses weaker. Dollar.
 2019 loss losses $5. 1 million $6. 5 million unrealized losses $13. 2 million. swaps $42. 3 million unrealized gains $5. 8 million $19. 2 million revaluation NOK debt.
 Loss deconsolidation. $7. 1 million.
. $14. 5 million 2019 $2. million 2018. $10. 6 million repurchase 2020 Notes $2. million tax expense Teekay LNG. $1. 4 million losses LNG sale refinancing. loss $1. 8 million repurchases 2020 Notes $0. 6 million tax Teekay lease.
. $25. 5 million 2019 $19. 7 million 2018. freight tax accruals.

.
 Interest expense,059) (254,126
 income
 losses instruments (13,719)
 (13,574
 Loss deconsolidation Altera (7,070
 (14,475)
 Income tax expense (25,482) (19


Teekay Tankers
 table compares results equity income calendar-ship-days 2019 2018.
-ship-days-chartered vessels.
 income increased $123. 9 million 2019 $7. 2 million 2018 $129. 3 million higher rates $3. 5 million improved results days rates
 increase $3. 4 million lower expenses non expenses net increase $2. 3 million three Aframax two LR2 tankers offset redeliveries increase $1. 2 million restructuring charge
 decrease $10. 2 million higher off-hire days expenses decrease $6. 9 million lower revenues loss sale Suezmax write-down two decrease $6. 4 million amortization dry dockings. acquisition 2017.
 Equity income increased $2. 3 million 2019 $1. 2 million 2018 higher earnings High-Q Investment.venture spot rates 2019.
 December
.
 Revenues 943,917 776,493
 Voyage (402,294)
 Vessel,601
-charter hire,189
 Depreciation amortization (124,002)
 expenses (36,404),775
 loss sale
 Restructuring charges
 vessel operations 123,883
 Equity income
-Ship-Days
 Conventional Tankers 22,350


. Financial Data
 factors Financial.
 Ended October 31,
 Net sales $3,440,258,236,004 $2,816,057 $2,803,480
 Operating income 67,994 425,239 294,111 335,998
 Net income 53,294 61,431 279,745 188,961 216,001
 earnings share.
.
 Working capital 365,430,600 650,817 465,135 396,834
 Total assets 1,774,134 1,659,440 1,733,243 1,422,700 1,246,752
 Long-term debt
 Stockholders’ equity 1,417,675 1,387,893 1,432,862 1,190,262 1,029,861
 dividends.


product categories
 Drinkable Kefir organic non-organic sizes flavors types low fat non-fat whole milk protein BioKefir 3. 5 oz. probiotic cultures.
 European-style soft cheeses farmer cheese resealable cups.
 Cream.
 ProBugs children.
 Other Dairy Cupped Kefir Icelandic Skyr kefir yogurt.
 Frozen Kefir soft serve pint-size containers.
 Lifeway reportable segment chief decision. Chief Financial Officer Chief Operating Officer Executive Officer Chairperson board directors. consolidated revenues cultured dairy products distributors retailers United States.
 Net sales category
 Lifeway Kefir Shop
 retail food United States. Two major customers 22% 21% net sales. 17% accounts receivable. ten largest customers 57% 59% net sales.
Kefir 71,822 77% 78,523 76%
 Cheese 11,459
 Cream 4,228 5,276 5%
 ProBugs 2,780
 dairy 1,756
 Frozen Kefir 1,617
 Sales 93,662


Deferred tax assets liabilities reflect tax effects loss differences financial income tax. deferred tax assets
 deferred tax assets management considers taxable income future reversals tax planning strategies future income projections assets.
 negative evidence uncertainty realizing deferred tax assets full valuation allowance tax assets.
 $4. 3 million increase valuation allowance 2018 to 2019 due operating losses windfall tax benefits equity awards offset reduction valuation allowance net deferred tax liability ASC 606. recognized tax benefit $1. 0 million release-existing. valuation allowances Ataata Simply Migrate business combinations.
 2018 Tax Cuts and Jobs Act) enacted. Securities Exchange Commission guidance. taxpayers consider impact. legislation information change tax law.
2019 Company completed accounting tax effects Act. recognized adjustment provisional estimate 2018 financial statements.
. operating loss carryforwards $57. 4 million. federal loss carryforwards $78. 6 million. $32. 5 million expire 2037. $46. 1 million.
. state net operating loss carryforwards $54. 6 million expire 2039. Australian net operating loss carryforwards $23. 9 million. German net loss carryforwards $9. 9 million.
 Israeli net operating loss carryforwards $3. 3 million. income tax credit carryforward $1. 1 million. Israeli income tax credit carryforwards $0. 6 million 2023 2024.
 382. ownership pre-change net operating loss carryforwards. ownership change 50 percent change ownership three-year period. state tax laws.
Company experienced ownership may outside control. operating loss carryforwards tax. income limitations.
 March 2019 2018 liabilities tax positions $6. million $6. 2 million tax rate.
 Deferred tax assets
 Net operating loss carryforwards $35,120 $24,159
 Share-based compensation
 Deferred revenue
 Fixed assets 4
 Lease liability
 Accrued compensation
 costs
 Deferred rent
 Income tax credits
 Gross deferred tax assets 63,515 53,610
 Prepaid expenses
 Fixed assets
 Unremitted earnings
 Intangible assets
 Capitalized commissions
 Gross deferred tax liabilities (27,205
 Valuation allowance (38,318)
 $


Cash Equivalents
 liquid instruments maturities three months cash equivalents. invested high institutions short investments. carrying amounts Consolidated Balance Sheets approximate fair value maturities.
 equivalents unrestricted
 December 31,
 $8. $9.
 equivalents.
 $15. $20.


Life Sciences
 Selling expenses December 2019 decreased $5. million to $8. 6 million $13. million. fewer expenses Pansend holding company additional compensation expense. reduction costs sale BeneVir second quarter 2018.
 Life Sciences Segment
 December 31,
 Increase
 Selling general administrative $8. $13.
 Depreciation amortization.
 Loss operations.


Accounting Uncertainty Income Taxes
 2019 2018 changes unrecognized tax benefits
 September 30, 2019 2018 tax benefits effective tax rate $0. 7 million $1. 8 million. 2020 resolution reviews unrecognized tax benefits expiration statutes limitations. recognize interest penalties. net interest penalties 2019 2018 not material.
 subject audits jurisdictions. September 30, 2019 fiscal years limitations 2016 2019. provided uncertain tax issues. adverse resolution additional charges earnings. resolution uncertain tax issues financial condition results.
 Cash amounts paid income taxes refunds $28. 7 million, $15. 7 million $1. 6 million 2019 2018 2017.
 September 30,
 Balance beginning year $ $ 13,248
 Additions (reductions tax positions prior years 8,458
statutes (776) (1,770
 Additions 951
 Reductions (2,169
 year $18,575 $9,942


. Stock-Based Compensation
 table summarizes non-cash stock-based compensation expense
 2015 Equity Incentive Plan
 stock options. allows options employees nonqualified stock options stock appreciation rights restricted stock awards performance-based stock awards equity compensation employees directors non directors consultants.
 June 2015, board directors adopted stockholders approved 2015 Plan reserved 4,700,000 shares common stock 2009 Stock Incentive Plan. January 1 ten years 2024 5% shares December 31. no further grants 2009 Plan. December 31, 2019 6,527,550 shares available future grant.
 Stock Options
 granted exercise prices closing price common stock. 2009 Plan fair market value. vest five-year period expires tenth anniversary grant.
 stock options granted 2015 exercised before vested.Unvested shares early exercise repurchase termination employment original price. proceeds current liability reclassified common stock capital awards repurchase right lapses. 250 957 unvested shares outstanding repurchase December 31, 2019 2018. repurchased 27 107 employee terminations 2019. recorded less than $0. 1 million accounts payable accrued expenses current liabilities balance sheets proceeds.
 account stock-based compensation options fair value grant date. compensation accelerated attribution method.
 value stock options Black-Scholes option pricing model assumptions risk-free interest rate expected term stock price volatility dividend yield. risk-free interest rate observed interest rates constant maturity U. Treasury securities expected term. term "simplified method. mid-point vesting date contractual term. historical data.November 2019 volatility historical.
 186,500 219,450 252,100 options December 2019 2018 2017. declared paid dividends June 2015 closed July 1 2015. dividend rate 0%.
 Ended December
 2018 2017
 Stock options $3,783 $3,511 $3,913
 Restricted stock units 16,627 9,770 3,366
 awards
 Employee stock purchase plan
 stock-based compensation expense $20,603 $13,429 $7,413
 Tax benefit $5,154 $7,581 $12,719


Tower Corporation 2019 Annual Report
 Appendix 1 Letter Stakeholders
 RETURN INVESTED CAPITAL millions. rounding.
 balances adjustments
 Q4 2015 Verizon Transaction.
 Q4 2016 Viom Transaction
 acquisitions.
 settlement Tata Q4 2018.
 deferred tax adjustments.
 Adjusted EBITDA $3,206 $3,743 $4,149 $4,725 $4,917
 Taxes
 $2,948 $3,459 $4,394
 PPE $14,397 $15,652 $16,950 $17,717 $19
 Intangibles 12,671 14,795 16
 4,240
 $31,308 $34,957 $38,012 $38,837 $43,292
 ROIC. 4%. 2%. 3%.


currency translation risk
 reporting currency. dollar. Fluctuations impact assets liabilities subsidiaries. cash equivalents. subject translation currency exchange rates period.
 table shows cash equivalents foreign currencies June 30, 2019.
 foreign currency exchange rates. 10% cash equivalents. decrease $32. 9 million (June 2018—$34. 6.
. Dollar June 30 2019.
 Euro $120,417
 British Pound 33,703
 Canadian Dollar 12,635
 Swiss Franc 56,776
 foreign currencies 105,273 117,459
 cash equivalents foreign currencies 328,804 346,258
. dollar 612,205 336,684
 cash equivalents $941,009 $682,942


Amounts balance sheet
 surplus £2. 2m £1. 3m recoverable.
 value funded obligations 20. 19.
 plan assets (22. (21.
 surplus cap 2. 1
 asset Consolidated balance


Inventory
 stated lower cost net realizable value first-in, first-out (“FIFO”) valuation method. value estimated selling prices less costs completion disposal transportation. adjustments cost recognized in earnings.
 low sell-through AirBar work-in components raw materials. finished goods. inventory reserve $0. 8 million $1. 0 million December 31, 2019 2018.
 partners losses inventory bank guarantee. sale lower inventory unused date inventory AirBars rest purchased us. inventory value reserved.
 December 31, 2019 inventory components sensor modules. inventory by raw materials work-in-process finished goods.
 Raw materials $396 $246
 Work-in-process 186
 Finished goods 448 753
 Ending inventory $1,030 $1,219


 commercial paper December 2019 2018. 6 2. 5. loans 6. 1 4. 3.
 Commercial paper $ 304 2,995
 Short-term loans 971
 Long-term 7,522
 $8,797 $10,207


Included long-term assets.
 financial instruments carrying value approximates fair value short maturity.
 December 31, 2018
 1 3
 Cash equivalents $10,155
 securities
 Municipal bonds $44,705
 Corporate bonds $48,296
 marketable securities $93,001
 Investments privately-held companies $3,390


table summarizes restricted shares granted vested
 December 31, 2019 performance goals $6. 1 million unrecognized compensation cost nonvested. 33% performance 67% employment. 2. years.
 Ended December 31,
 2018 2017
 granted 508 492 480
 grant-date value per share $28. 43.
 vested $3,647 $8,342 $6,868


environmental impact
 FY19 energy audits UK manufacturing sites Savings Opportunity Scheme mandatory. progress efficiency. 9% improvement primary energy per tonne 26. 5% six years.
 FY19
 Redistribution human consumption. 3% 791. 2%
 Waste avoided Animal feed 4,454.,895.
 5,404.,686.
 Co/Anaerobic digestion 24,978. 6% 32,202.
 Food waste Controlled combustion 1,650. 1,964.
 8,280.
 34,908. 40,912.


. Acquisitions disposals
 completed disposals. details prior year. accounting judgements estimation note 1 consolidated financial statements.
 Accounting policies
 Business combinations
 Acquisitions subsidiaries acquisition method. cost measured fair values assets liabilities equity instruments issued. costs recognised income statement. assets liabilities recognised fair values acquisition date. Goodwill measured excess consideration transferred non-controlling interests fair value equity interest assets liabilities. non-controlling shareholders measured fair value proportion value assets. measurement acquisition-by-acquisition. Acquisitions. cost measured fair values liabilities equity instruments. costs recognised income statement. assets liabilities recognised fair values acquisition date.Goodwill measured excess consideration transferred non-controlling interests fair value equity interest over assets acquired liabilities assumed acquisition date. interest non-controlling shareholders measured fair value proportion assets. acquisition-by-acquisition.
 Acquisition interests non-controlling shareholders
 difference fair value interest recognised equity
 aggregate cash consideration purchases subsidiaries acquired
 31 March 2019 Group completed acquisitions net cash €87 million. fair values goodwill assets liabilities €77 million €123 million €139 million.
 Cash
 Acquisitions
 Net cash acquired acquisition related costs


. Equity
 Share buy-back
 shares. note 4. 3.
 Share-based payment reserve
 records value shares Long Term Incentive Plan Employee CEO Share Option plans. note 5. 2.
 Business combination reserve
 group restructure 2007 iSelect exempted AASB Business Combinations. carry-over accounting restructuring iSelect Group. assets liabilities reflected carrying amounts. No adjustments values new. goodwill difference acquired reflected Combination.
 Foreign currency translation reserve
 Note 1. 5.
 Share-based payment reserve 3
 Business combination reserve
 Foreign currency translation reserve


measure report annual scope 1 2 GHG emissions. moved certified green tariff renewable electricity contract
 UK operations financial year.
 GHG emissions summary net emissions green electricity tariff.
 reduction energy efficiency carbon renewables fuel.
 six years water consumption per tonne 15%. improvement FY19 closure Evercreech desserts facility water intensity.
 GHG emissions calculated GHG Protocol Corporate Accounting Reporting Standard government GHG conversion factors. UK Ireland FY19 Group. Group.
 Emissions summarised CO2 equivalent
 tonnes CO2e
 Combustion fuel operation facilities (Scope 1) 59,495 66,336 75,600
 Electricity heat steam cooling (Scope 2) 27,633 32,389 67,754
emissions 87,128 98,725 143,354
 tariff -27,603
 emissions 59,525 98,725 143,354
 £1.


GreenSky. CONSOLIDATED FINANCIAL STATEMENTS States Dollars share data
 Note 3. Fair Value Assets Liabilities
 table summarizes carrying amounts estimated values assets liabilities recurring nonrecurring disclosed Consolidated Balance Sheets. no transfers levels fair value. Note 4 7 8 9 additional information assets liabilities.
 Disclosed not carried.
 Measured nonrecurring.
 Measured carried recurring.
 December 31, 2019 31, 2018
 Carrying Value
 Assets
 Cash $195,760 $303,390
 Loan receivables sale 51,926
 Servicing 30,459
 Liabilities
 Finance charge reversal $206,035 $138,589
 Term,497 386,822
Interest rate 2,763
 Servicing liabilities(3) 3,796


pension plan asset allocation 2019 2018
 2019 corporate government bonds (32%) equity (15%) other instruments (16%).
 2018 thirds corporate (55% treasury bonds (45%) third multi
 equity instruments.
 Assets
 Cash equivalents 1%
 Equity securities 24%
 Government debt 12%
 Corporate debt 16% 26%
 Investments 21% 17%
 Real estate 2%
 Other 24% 22%


Amortization Intangibles Acquisition Costs
 2019 2018 2017
 Amortization relationships trademarks. costs legal due diligence professional costs.
 increase 2018 Blue Microphones ASTRO Acquisition. 2018 2017 ASTRO Acquisition.
 March 31,
 Amortization $12,594 $7,518 $4,352
 Acquisition-related costs 1,696 1,412
 Total $14,290 $8,930 $5,814


effective tax rate
 calculated dividing taxation profit net profit/ joint ventures. reflects tax rate profit before net profit.
 Tax impact non-underlying items operating profit sum tax country tax rates treatment. shown table
 Restated IFRS 16. See note 1 24.
 Refer note 3 details.
 Excludes €3 million (2018 €32 million gain disposal spreads business joint venture Portugal net profit/. non-underlying items not operating profit net profit before tax €35 million (2018 €154 million. note 3.
 2,263 2,572
 Non-underlying items operating profit 309
 profit before tax 1,239
 not net profit before tax
joint ventures (176) (185)
 Profit tax 9,320 8,877
 tax rate. 5%. 7%


 summary 2019 2018 2017 dividends common stock.
 May 22, 2019 declared cash dividend $0. 48 share payable July 24 July 5. future dividends market financial regulatory requirements. dividends authorized laws state.
 April 26, 2019 27, 2018 28, 2017
 Dividends share declared $ 1. 60.
 additional paid capital $ 403
 retained earnings deficit


. Deferred Revenue
 December 31, Domains $752. $686.
 526. 483
 265. 224.
 $1,544. $1,393.
 Domains $382. $365.
 187. 180.
 85. 77.
 654. $623.


reconciliation unrecognized tax benefits
 benefits December 2019 2018 2017 $2. 4 billion $2. 3 billion $1. 9 billion income tax rate.
 2017
 Balance January 1 $ 2,871 $2,355 $ 1,902
 Additions
 Additions
 Reductions (300
 Settlements
 Lapses statutes limitations
 Balance December 31, $ 2,870 2,355


Dividends
 Board Directors declared dividends 2019 2018:
 change terminate practice. February 27, 2020 declared quarterly cash dividend $0. 25 per share.
 Declared Dividend Share Total Amount Payment Date
 millions
 November 21, 2019 12/2. 250 $273
 August. 273
 May 23, 6/3. 274
 March 1. 273
 November 14 11.
 August 21,. 584
 May 23, 6/4/2018. 588
 February 21, 3/5/2018.


Netsmart Discontinued
 December 31, 2018 sold Class A Units $566. 6 million cash final settlement.
 separate segment discontinued. Note 4 Combinations.
 table income expense December 31, 2018 2017:
 Netsmart intercompany transactions.
 income expense
 Revenue
 Software delivery maintenance $214,065 $198,204
 Client services 131,166 110
,231 308,634
 Cost
 60,100
 94,061 78,317
 34,357
 188,518 159,272
 Gross profit 156,713 149,362
 Selling administrative expenses 125,807 85,583
 Research development 25,315 17,937
 Amortization assets 24,029 16,409
 Income discontinued operations (18,438
 Interest expense (59,541)
 Other income
Netsmart (77,878) (19,581)
 22,933 45,253
 $25,672


. DEFINED BENEFIT PLANS
 Rofin assumed assets liabilities defined benefit plans Rofin-Sinar Laser. employees. U. S. plan 1995 partially funded. employees after January 2007, not eligible RS. German pension plan unfunded. employees after 2000 not eligible RSL pension plan. measurement date September 30. gains losses deferred OCI amortized future.
 2012, RS Inc. benefit plan highly compensated employees. non-qualified benefit plan. August 31, 2018. plans freeze future compensation benefit accruals.
 defined benefit plans South Korea Japan Spain Italy Germany. unfunded exception Spanish plan partially funded. actuarial gains losses. measurement date September 30.
 pension costs actuarial assumptions discount rate return compensation increase. judgment.expense cash funding defined benefit plans.
 Components cost 2019 2018 2017
 Service cost $1,955 $2,262 $2,077
 Interest 1,308 1,230
 return assets (817)
 loss
 Foreign exchange impacts
 curtailment gain plan freeze
 pension cost $2,837 $1,653 $2,185


Operations
 tables revenues. historical
 December
 Revenues
 Subscriptions $817,811 $612,888 $465,254
 85,047 60,736 38,363
 revenues 902,858,624 503,617
 Subscriptions 160,320 109,454 89,193
 70,723 47,675
 231,043 157,129 121,271
 Gross profit 671,815 516,495 382,346
 Operating expenses
 Research development 136,363 101,042 75
 Sales marketing 439,100 329,116
 142,027 102,773
 expenses 717,490 532,931 387,684
 Loss operations (45,675) (16,436 (5,338
 Loss taxes (56,940) (26,063)
 (3,333
Net loss,607,203,204


 February 28, 2020
 Michael Hsing Board Directors President Chief Executive Officer 1997. Senior Silicon Technology Developer patented technologies power electronics. inventor bipolar mixed-signal semiconductor manufacturing. University Florida.
 Bernie Blegen Chief Financial Officer July 2016 finance accounting tax treasury investor relations. 2011 2016, Corporate Controller. finance accounting Xilinx. Credence Systems. University California Santa Barbara.
 Xiao President Asia Operations since 2008. Manager Senior Vice President Operations. Engineering Account Manager Semiconductor Manufacturing. Manager Process Integration Engineering Fairchild Imaging Sensors. Semiconductor Physics Sichuan University. Wayne State University.
 Maurice Sciammas Senior Vice President Worldwide Sales Marketing since 2007. 1999 Vice President Sales. Director IC Products Supertex 1990 1999. Micrel.. San Jose State University.
 Saria Tseng Vice President Counsel Corporate Secretary 2004 Strategic Development 2009. MaXXan Systems. Vice President Counsel 2001 2004. attorney Gray Cary Ware Freidenrich Jones Day Reavis Pogue. state bar California New York bar Republic China. Board Directors Super Micro Computer. performance server. Masters Law California Berkeley Chinese Culture University Taipei.
 Hsing
 Bernie Blegen
 Vice President
 Saria Tseng Vice President Counsel


Management Personnel
 Short-term benefits fees salaries benefits bonuses nonmonetary benefits.
 Post-employment benefits pensions senior management.
 Share-based payments senior participation IFRS2.
 Year-ended 31 March 2019 2018
 Short-term benefits.
 Post-employment benefits.
 Share-based payments equity-settled.
.


exchange
 Export revenue. revenue 2019. 2 2018).
 earnings 2019 2018
. 119,499 92,258
. imports 447
. foreign currency 49,336 33,014


Teradyne’s unrecognized tax benefits 2019 2018 2017
 Current additions federal state research credits. Prior additions stock-based compensation. reductions federal reserves 2015 U. federal audit 2019.
 $21. 2 million unrecognized tax benefits $12. 7 million consolidated income tax rate. $8. 5 million deferred taxes.
 Teradyne change tax benefits.
 Teradyne records interest penalties. 2019 2018 $1. 4 million $0. 3 million. 2018 2017 $1. 1 million $0. 1 million $0. million.
 subject. federal income tax state local foreign jurisdictions. tax concluded 2013, federal 2015 foreign 2011. operating losses tax credits.
 Teradyne not permanently reinvested unremitted earnings non. subsidiaries. Remittance income tax.
2019 2017
 balance January 1 $43,395 $36,263 $38,958
 Additions
 1,322 4,716 8,208
 2,626
 Reductions
 (31,397,573
 Expiration statutes
 Settlements tax
 balance December 31 $21,180 $43,395 $36,263


. INVESTMENTS
 Company determines designation purchase reevaluates each balance date. investments as available-for-sale debt securities. September 2019 2018 short-term investments maturity less than one year from. long-term investments greater than one year.
-for-sale securities carried at fair value market prices unrealized gains losses net of taxes separate stockholders’ equity. reviews fair value monthly evaluates securities with below amortized cost. debt securities impairment before. other-than-temporary impairment occurred. recognized in earnings. impairment recorded consistent with fair value. No other-than-temporary impairment charges recognized in years 2019 2018 2017. no gains or losses from sale securities 2019 2017. recorded net loss from sale of $49,000 2018.
 cost securities identification method. Amortization premiums discounts interest dividend gains losses investment income.
 tables summarize investments September 30 2019 2018
 Cost Gains Losses Market Value
 Available-for-sale securities
. Treasury short-term $4,240
 Corporate debt securities 12
. Treasury long-term
 Corporate debt securities
 $18,051


. Inventories
 increase live inventories attributable to Tyler, Texas facility production 2019 value poultry inventories. cost grow birds values inventories cost accumulates costs. higher net realizable value. value future selling prices finished products cost sales. recorded charge $2. 8 million October 31, 2019 $9. 6 million October 31, 2018 reduce values broiler inventories to net realizable value.
 increases in feed eggs processed poultry packaging materials inventories inventory volume Tyler, Texas facility.
 increase prepared chicken inventory attributable to finished products October 31, 2019 production volume facility Flowood, Mississippi. 2019 processed 129. 1 million pounds prepared chicken products 107. 6 million pounds 2018. 1. 2 million pounds increase October 31, 2019 12% increase volume.

 poultry breeders 179,870 $150,980
 47,417 37
 Processed poultry 30
 Prepared chicken
 Packaging
 inventories $289,928 $240,056


Deferred taxes differences assets liabilities.
 December 31, 2019 undistributed earnings foreign subsidiaries outside. $3. 8 billion. Verizon’s cash flow domestic operations not dependent foreign cash.
 portion reserve unavailable distribution repatriation. deferred taxes reinvested. unavailable. Determination deferred taxes.
 December 31, 2019 net after-tax loss credit carry forwards $3. 0 billion state foreign taxes. $2. 0 billion 2020 2039 $1. 0 billion carried forward indefinitely.
 valuation allowance decreased $481 million. balance related state foreign taxes.
 Deferred Tax Assets
 Employee benefits $ 5,048 5,403
 Tax loss credit carry forwards
 Other assets 5,595 1,650
 13,655
,260
 assets 11,395 7,888
 22,388 21,976
 Depreciation 16,884 15,662
 6,742
 46,014
 34,619 33,726


Revenues by Platform
 tables detail revenues by platform
 revenues include devices non-platform-specific game-related toys accessories.
 Distribution business Overwatch League.
 decrease revenues 2019 due to
 lower revenues Destiny franchise Call of Duty titles.
 offset by Crash Team Racing Nitro-Fueled June 2019.
 decrease due to
 Destiny Hearthstone.
 increase due to Call of Duty: Mobile October 2019.
 Increase
 Net revenues by platform
 Console $1,920  $2,538 $(618)
 PC 1,718 2,180
 Mobile and ancillary 2,203 2,175
 Other 648
 Total consolidated net revenues $6,489 $7,500  $(1,011)


. ACQUISITIONS
 MGI
 April 4, 2019 acquired assets MGI Grain Processing MGI Grain Incorporated price $3. 8 million. included $0. 3 million deposited escrow released sellers June 2019. owns operates grain mill processing East Grand Forks Minnesota. acquired product portfolio. business combination. financial statements 2019. incurred $0. 1 million MGI acquisition costs selling administrative expenses.
 purchase price adjustment closing working capital. seller paid working capital adjustment $18 thousand 2019. purchase price allocation assets acquired liabilities assumed.
 fourth quarter 2019 appraiser finalized fair value calculations. value trade receivables acquisition equaled gross. intangible estimated future cash flows. amortizing intangible 15-year cash flows. Goodwill intangible assets.7 million goodwill deductible tax fifteen years.
 Estimated June 30 2019 Final December 31, 2019
 Cash $3,795
 Working capital adjustment purchase price
 value transferred 3
 Accounts receivable
 Inventories
 Deposits assets
 Property equipment 1,560
 Customer 930
 intangible assets
 Accounts payable
 Finance lease liabilities
 assets acquired liabilities assumed
 Goodwill


 table contract liabilities
 extended maintenance contracts.
 Deferred maintenance $192,955 $164,986
 10,287 9,539
 203,242 174,525
 144,230 130,865
 Non-current deferred revenue $59,012 $43,660


GreenSky. FINANCIAL STATEMENTS States Dollars share data
. Accounts Receivable
 Gross Allowance Losses Net
 December 31, 2019
 $12,863 $12,625
 6,868
 $19,731 $19,493
 December 31, 2018
 $14,704 $14,536
 $15,568 $15,400


EBITDA operating profit less interest gains/losses depreciation property investment properties right-of-use assets amortisation intangible assets. Adjusted plus compensation expenses.
 Adjusted EBITDA margin revenues.
 Net debt balance cash equivalents deposits minus borrowings notes payable.
 Capital expenditures additions property plant equipment construction investment properties land use rights intangible assets video music game licences.
 EBITDA 35,675 137,268
 Adjusted EBITDA 38,572 147,395 118,273
 Adjusted EBITDA margin 36%
 Interest expenses 2,348 2,086 1,345 7,690
 Net debt (15,552
expenditures,869 6,632,369


 Impairment Assets
 2019
 $85 million indefinite-life $8 million property plant equipment. broadcast licences assets radio markets Bell Media. advertising demand ratings pressures audience declines competitive pressure streaming. carrying value fair value less cost disposal. estimated discounted cash flows market valuation models five-year projections 2024 discount rate 7. 5% perpetuity growth rate market data. carrying value $464 million December 31, 2019.
 $145 million indefinite-life $14 million finite-life. French TV channels Bell. revenue profitability declines audience subscriber erosion. costs disposal. discount rate 8. 0% to 8. 5% perpetuity growth rate nil market data. carrying value $515 million December 31, 2018.previous French Pay Specialty TV channels tested recoverability. 2018 grouped French CGU cash content strategies CRTC Canadian broadcasters group licence.
 2018 indefinite-life asset impairment $31 million Bell Media segment retire brand.
 EQUITY LOSSES INVESTMENTS ASSOCIATES JOINT
 loss $53 million $20 million 2019 2018 equity losses obligation repurchase minority interest. obligation marked recorded gains losses.
 2019 gains $13 million obligation repurchase interest.
 2018 losses $34 million loss obligation.
 YEAR ENDED DECEMBER 31
 Impairment assets
 Equity losses associates joint ventures
 Losses investments
 Early debt redemption costs
gains retirements disposals property assets 11
 gains derivatives equity compensation plans (80)
 Gains investments (34)
 expense (348)


6. FINANCIAL DATA
 table summarizes consolidated financial data financial statements notes 8 Discussion Analysis Financial Condition Results 7 Annual Report Form 10-K. financial data December 31, 2019 derived statements operations King commencing February 23, 2016. amounts millions share data.
 January 1, 2018 new revenue accounting standard. periods.
 Net income 2019 2018 2017 includes tax impacts income tax expense benefits U. S. Tax Reform Act. Note 19.
 Cash investments short-term long-term. total investments $69 million $155 million $62 million $26 million $17 million December 31, 2019 2018 2017 2016, 2015,. excludes $3,561 million escrow King.
 debt obligations Note 13.
 Net debt long-term cash investments
 March 31, 2019 2018 income tax expense $35 million.financial data December 31, 2018 revised correction. Note 2 financial statements Item 8 Annual Report Form 10-K.
 Ended December
 2019 2017 2016 2015
 Net revenues $6,489 $7,500
 Net income 1,503 1,848 966 892
 income share.
 income share.
 Cash dividends.
 Operating cash flows $1,831 $1,790 $2,213 $2,155 $1,259
 Balance Sheet
 Cash investments $5,863 $4,380 $4,775 $3,271 $1,840
 Total assets 19,845 17,890 18,668 17,452 15,246
 Long-term debt 2,675 4,390
 1,669 2


Income
 change December 31, 2019 2018 driven early debt redemption costs $3. 6 billion $725 million 2018 pension benefit charges $126 million credits $2. 1 billion 2018.
 Increase
 Ended December 31, 2019.
 Interest income $ 121 $ 94 $ 27.
 benefit cost 627 3,068 (2.
 Early debt extinguishment costs (3,604) (2,879)
 net.
 $ (2,900) $2,364 (5,264


assumptions 2019 Note 16 Annual Report 10-K.
 Amounts reflect compensation NEO. represent grant values stock options 2003 Equity Incentive Plan inducement grants FASB ASC Topic 718. assumptions Note 16.
 non-equity incentive plan compensation paid Variable Pay Plan.
 amounts Other Compensation” column include $4,000 401(k) matching contribution.
 Compensation Committee awarded. Maletira bonus $180,000 AvComm Wireless acquisition. Compensation Discussion Analysis page 36.
. Staley awarded $60,000 sign-on bonus February 2017.
 salary bonus non-equity incentive plan compensation columns reflect stock awards accounting values. “Outstanding Equity Awards Fiscal Year-End Exercises Stock Vested. Summary Compensation Table Compensation Discussion and Analysis tables.

 Fiscal Year Value Grant
 Oleg Khaykin 4,067,526
 2,457,750
 659,618
 Amar Maletira 1,379,350
 1,015,870 454,950
 574,500
 Paul McNab 591,150
,395
 373,425
 Luke Scrivanich 591,150
 393,600
 Gary Staley 591,150
 943,527
 2017 303,948


 Products Licensing increased $8. 6 million $16. 7 million. million 2018. $3. 9 million MOI $4. 4 million GP sales volume.
 Technology Development increased $3. 2 million $18. 6 million $15. 4 million 2018. labor subcontractor costs.
 Products licensing costs $16,684,172 $8,078,870 $8,605,302. 5%
 Technology development 18,649,161 15,400,475 3,248,686.
 $35,333,333 $23,479,345 $11,853,988.


NantHealth
 Statements Cash Flows
 restricted $1,136 $350 December 31, 2019 2018 2017. Restricted cash security deposits letters leased facilities. No amounts drawn December 31, 2019.
 notes Consolidated Financial Statements.
 disclosure cash flow
 Income taxes $318 $15
 Interest $5,909 $5,885
 Noncash investing financing
 Purchases property equipment
 NantHealth Labs


table Consolidated Statement Operations revenues
. decreased. 3 million. 2% 2018. Products decreased $4. 6 million. 1% support services increased 5. 8 million. 1% services 35%. 16% revenues 2018 12% 2017. Professional services revenue decreased $1. 4 million. 5% proprietary services $1. 5 million remarketed services $0. 1 million.
 profit. increased $0. 6 million. 2018 margin. 6% decreased $2. 8 million margin decreased. 6% 21. 7% lower product revenue higher amortization technology $2. million.
 Support maintenance subscription services profit increased $6. million margin increased 75. 8%. Professional services profit decreased $2. 6 million margin decreased. 19. 2% lower revenues.
 Operating expenses increased $1. million. 4% 2018. increased. 9%
. research.Product development decreased $1. 1 million. 8% 2018. driven shift contract labor to internal resources $5. 9 million increase payroll expenses $4. 7 million.
 Sales marketing. decreased $2. 7 million. 2% 2018. due decrease $2. 2 million incentive commissions lower sales.
 Depreciation fixed assets. increased. 2 million. 2%.
 Amortization intangibles. increased. 5 million 35. 0% rGuest Pay March 31,.
 Restructuring severance charges. increased. 2 million 2018 efficient teams executive changes.
.
 Legal settlements. recorded. 2 million. 1 million legal settlements employment.
 Year ended March
 Net revenue
 26. 5% 30.
 Support services 54.
.
 revenue.
 Cost of goods sold
.
.
.
cost goods 49. 50.
 profit.
 Operating expenses
 development 21. 22.
 Sales marketing 14. 16.
 18. 15
 Depreciation assets.
 Amortization intangibles.
 Restructuring.
 Legal settlements.
 Operating loss.


Operating expenses
 Research development expenses
 increased $15. 8 million March 31, 2018 personnel-related costs $10. 1 million information technology facility costs $2. 3 million professional services. 9 million share-based compensation. 7 million travel costs. 5 million data center. million.
 negatively impacted. 5 million weakening. dollar.
 Personnel headcount information technology facility costs professional services share-based compensation expense share option grants.
 Sales marketing expenses
 increased $25. 1 million personnel-related costs $13. 5 million marketing $4. 7 million information technology facilities $3. 6 million travel costs $2. 3 million professional services. 8 million.
 negatively impacted $1. 4 million weakening. dollar. travel increased headcount.
 General administrative expenses
 increased $9.March 2018 2017 personnel costs $5. million share compensation $1. 2 million information technology facilities $1. million professional services material supplies $0. 6 million.
 expenses impacted $0. 3 million weakening. dollar pound rand. Personnel costs increased headcount.
 Share compensation share option grants. Information technology material supplies headcount.
 Restructuring Impairment
 fourth quarter 2018 Watertown office restructuring charge $0. 8 million-cancelable rent expenses vacated premises sublease non-cash impairment $1. 7 million leasehold improvements.
 change
 Operating expenses
 Research development $38,373 $22,593 $15,780
 Sales marketing
 General administrative 36,989
 Impairment assets

 expenses $199,152,622 $52,530 36%


table. GAAP income non-GAAP EBITDA
 2018 2017 adjusted ASC 606.
. 9 million costs relocation tantalum powder Carson City Nevada Matamoros.
 Years
 Net income. $206,587 $254,127 $47,157
 Non-GAAP adjustments
 Income tax expense,460 9,132 4,294
 Interest expense 19,204,073
 Depreciation amortization 52,628 50,661
 EBITDA-GAAP 238,959 345,993 129,333
 Equity loss investments 3,304
 Acquisition loss
 TOKIN options
 loss write down disposal long-lived assets 1,660
 ERP transition costs
 Stock-based compensation
 Restructuring charges 8
R&D
 Legal expenses antitrust actions 11,896
 exchange loss (7,230 13,145
 TOKIN expenses
 start-up costs
 Loss extinguishment debt 15,946
 EBITDA $289,507 $191,705


use raw materials products. Cost sales margin copper gold silver. 2019 purchased 172 million pounds copper 122,000 ounces gold 2. 6 million silver. average prices silver
 2020 expect purchase 170 million pounds copper 120,000 gold 2. 4 million ounces silver.
 Copper. $ 2. 93 $.
 Gold.
 Silver.


Deferred taxes differences assets liabilities tax bases. summarized table. valuation allowance required deferred. June 30 2019 Company net loss carryforwards $337. 6 million expiring 2020 2039. annual limitation future tax benefits $3. 3 million. Valuation allowances increased $0. 7 million 2019 losses tax jurisdictions.
 unrecognized tax benefits June 30, 2019 2018 2017.
 recognizes interest penalties benefits.
 years prior 2013 settled Internal Revenue Service tax jurisdictions.
 December 2017 Act Reconciliation enacted. income tax rate 35 percent to 21 percent territorial tax system one-time mandatory tax deferred foreign earnings. changed business deductions interest. SEC guidance provisional amounts. 2018 provisional tax charge $5. 0 million transition tax benefit $74.deferred tax assets liabilities. 2019 recorded tax benefit. 2 million transition tax. million. accounting Act completed December 31, 2018. transition tax paid eight year period 2019.
 tax provisions eliminating corporate alternative minimum tax base erosion anti tax deductible interest expense executive compensation eliminating. federal taxes dividends foreign subsidiaries. GILTI current period expense.
 earnings foreign subsidiaries $77. million reinvested. repatriation cash. taxable federal. 3 million tax expense.
 Deferred tax assets
 Pensions $86. $66
 Postretirement provisions.
 operating loss carryforwards.
 Derivatives hedging activities.
.
 deferred tax assets 187. 156.
 Valuation allowances.
 Total deferred tax assets 163.
 Deferred tax liabilities
 (249.
 Intangible assets (11.
 Inventories. (30.
 Derivatives hedging. (8
 (4.
 deferred tax liabilities.
.(157