Purchased Intangible Assets
 include technology in-process research development customer-related intangibles acquisition-date backlog. estimated values determined cash flows. amortized cash flows.-process research development capitalized until projects completed abandoned amortized. Customer-related assets contractual relationships customer loyalty determined projected revenues. analysis expected attrition revenue growth customers prepared from information. relationships amortized estimated cash flows retention rates. Backlog orders not shipped values profit. assets one year useful life amortized. average amortization period 9 years. Amortization expense not deductible. approximately $178. 1 million net deferred tax liability for future amortization.
 Weighted Average Useful Life April 4 2016
 millions
 Core technology.
 In-process research development.
 Customer-related.
Backlog.
.
 intangible assets $1,888.


Company’s deferred tax liabilities assets
 finance lease right-of-use assets $6,190 $0 December 31, 2019 2018.
. federal net operating loss carryforwards $213,800 reduce future taxes. expire 2034. state loss carryforwards $445,936.
 minimal income. carryforwards expire 2019 2035. financing federal interest expense deductions indefinite carryforward period.
 change control 2014 limited usage pre-ownership change net operating losses. losses utilized 2019.
 assessed evidence future taxable income deferred tax assets. positive evidence liabilities.
 state deferred tax assets negative evidence outweighed valuation allowance $20,952 $10,961 December 31, 2019 2018 likely.
 2019 2018 paid $1,293 $1,313 income taxes.

 tax
 Vessels $128,026 $128,226
 Prepaid expenditures
 lease 72,298
 205,947 135,338
 Loss carryforwards 68,917
 lease 71,779
 Employee compensation
 Financing fees
 Accrued expenses,165
 154,066 72,934
 Valuation allowance 20,952
 133,114 61
 $72,833 $73,365


. Trade payables
 IFRS 16 31 March 2018 restated.
 unsecured paid 30 days recognition. amounts same values short-term nature.
 2018
 Trade payables 4.
 Accruals 10. 9
 taxes social security 13. 11
 Deferred income.
 payables.
 Accrued interest.
 41. 28.


 include time-based performance market. Vesting subject performance goals approval Compensation Committee. awards include service conditions continued employment.
 RSU activity table
 awards.
 intrinsic value vested RSUs $138. 3 million $90. 0 million $74. 0 million December 2019 2018 2017. total $679. 5 million closing stock price $178. 02. unamortized compensation expense $100. 1 million recognition period three years.
 Cash proceeds from vested PSUs purchase $16. 6 million $10. 6 million 2019 2018. no proceeds 2017.
 Time-Based RSUs PSUs MPSUs MSUs
Number Shares- Average
 January 1, 2017 $51. 35 2,284 $43. 24 $23. 57 4,270 $36.
 $94. 25 $62. 72 $66.
 $48. $41. 94 $43. 39
 $61. $49. 82 $58.
 December 31, 2017 $66. 2,266 $48. 59 1,620 $23. 57 4,144 $39.
 $114. $85. $68. 1,363 $80.
 $60. 23 $41. $44.
 $82. $63. $68. $76.
 December 31, 2018 $95. 2,174 $61. 61 2,219 $35. 4,633 $50.
 $142. $99. $103.
Vested $81. 53 $53. $23. $47.
 Forfeited $117. $42. $68. $57.
 December 2019 $115. $74. $37. $59.


Accounts receivable contract balances
 revenue recognition billing. Receivables represent unconditional right to consideration.
 Contract balances obligation goods services.
 Contract assets relate to rights consideration not unconditional right reporting date. fixed-term plan contract revenue allocated between wireless services equipment revenues.
 contract difference between equipment revenue consideration received customer. asset recognized as accounts receivable services provided billed. right to bill
 service time payment unconditional.
 contract asset balances as prepaid expenses other assets. assessed for impairment charge recognized not recoverable. charge insignificant December 31, 2019 2018.
 Increases asset balances due to new contracts sales promotions reclassifications impairment charges.
 Contract liabilities arise when billed consideration received.majority contract liability year recognized following year advanced billing fixed monthly fees recognized following month provided.
 contract liability balances liabilities. Increases due sales promotions upfront fees deferred revenue performance obligations wireless services.
 balance receivables contracts assets liabilities
 Balances include leasing interest equipment device payment plan agreement. contracts January 1 2018 sale equipment.
 December 31, 2019 2018 January 1, 2018
 Receivables $ 5,752 $ 5,448 5,555
 receivables 15,313 12,272 2,073
 Contract assets 761 772 858
 Contract liabilities 4,721 4,521 3,445


Stock Ownership Requirements
 financial stake Company. stock ownership since 2005. shares
 CEO 6x CFO COO President 3x Vice Presidents 2x.
 Stock options unvested RSUs PRUs.
 acquire maintain stock ownership four years NortonLifeLock. retain 50% equity grants stock ownership.
 October 25, 2019. Kapuria Pilette Taylor ownership requirements FY19. Transitioning non-executive officers not. ownership levels.
 closing price common stock $22. 69 October 25, 2019.
 Ownership Requirement
 Kapuria 39,665 186,735
 Vincent Pilette 85,941 785,906
 Scott. Taylor 52,887 408,724


Deferred Tax Assets Valuation Allowance
 reflect operating losses tax credit carryovers differences between assets liabilities. significant Federal NOLs. $167. 8 million Federal NOLs at December 31, 2019 $160. 2 million generated prior January 1, 2018). NOLs 2018 future income Internal Revenue Code Section 382 limitation deferred tax asset fourth quarter 2017 reducing benefit Federal NOLs $1. 0 million at December 31, 2017. gross Federal NOL benefit prior January 1 2018 less than $150 thousand annually. unused not 20 years 2037 before 2018 after 2017 indefinitely. Future common stock transactions 382 limit utilization NOLs.
 deferred tax assets
 realization future earnings timing uncertain. valuation allowance required if realized.December 31, 2019 2018 deferred income tax assets offset valuation allowance future NOL carryforwards. additional valuation allowance reduced additional benefit recognized.
 31,
 Deferred tax assets
 future value NOLs
 Federal $2,622 $2,174
 Research development tax credits
 1,184
 Share-based compensation
 deferred taxes 4,955 4,442
 Valuation allowance
 deferred tax assets


 2013 Plan RSUs employees directors consultants. vest four years. summary activity 31, 2019 changes
 December 31, 2019 $198. 3 million $107. 9 million unrecognized share compensation expense RSUs recognized vesting. 3. 4 years.
 RSUs Average Grant Date Value Per Share Intrinsic Value
 Outstanding December 31, 2016 3,554 $18. $73,261
 3,005.
.
.
 December 31, 2017 4,281 $25. $207,197
.
.
.
 December 31, 2018 3,561 $42. $293,523
.
.
.
 December 31, 2019 3,249 $85. $548,145


Revenue Products
 design manufacture sell IP networking IT services.
 revenue
 SPVSS $168 million $903 million 2019 2018.
 July
 Infrastructure Platforms. $30,191 $28,322 $27,817
 Applications. 5
 Security 2,352 2
 Products. 1,168
. 39,005 36,709 35,705
 Services 12,899
 $51,904 $49,330 $48


deferred income tax assets
 December 31, 2019 Company had federal state foreign tax loss carryforwards $269. 3 million $86. 4 million $11. 7 million. 2020 2026. foreign tax credit carryforwards $41. 8 million $86. 3 million $5. 7 million. expire 2023 2024. state tax credit carryforwards expire. foreign incentive deductions $24. 5 million expire.
 $0. 3 million federal alternative minimum tax credit carryforwards refundable Tax Cuts Jobs Act.
 liability method deferred taxes determined differences financial tax. records valuation allowance reduce deferred taxes. considers evidence performance. released $51. 2 million valuation allowance deferred tax assets 2017. 2018 released additional $11. 3 million allowance Tax Act.Company valuation allowance state federal foreign. expense tax-free jurisdictions.
 income tax benefit 2019 pre income benefits reserves tax positions ASC 740-10.
 partial release valuation allowance pre-tax excess tax benefits uncertain tax positions ASC.
 Deferred tax assets
 Net operating loss carryforwards $65,477 $64,887
 Research development credits 80,404
 Accrued expenses
 Lease obligation
 Accrued compensation
 Stock-based compensation
 valuation allowance (77,957)
 Deferred tax liabilities
 Fixed assets
 Leased right-of-use assets
 Intangible assets (13,627)
 Net deferred tax assets $67,284 51,518


receivables funding tax refund. public grants Italy France research. benefits local tax jurisdictions collection beyond one year.
 2019 2018 factoring non-current assets. December 31, 2019 $131 million sold without recourse $122 million 2018 cost less than $1 million.
 assets
 2019
 Equity securities 23
-term receivables 358 391
 Deposits non-current assets 56
 437


income
 AOCI net tax
 2018 foreign currency translation loss $8 million Gain gain $3 million liquidated entities Other income. gain $7 million securities divestiture reclassified Gain. tax effect $3 million Income tax expense.
 Foreign Currency Translation Adjustments Unrealized Gain (Loss-Sale Securities Equity Method Investee AOCI
 Balance March 31, 2017 $7 $12
 loss reclassifications
 net income (loss
 Balance March 30, 2018
 income (loss reclassifications
 Balance March 29, 2019


LONG-TERM DEBT
 September 23, 2016, Roper five-year $2. 5 billion unsecured credit facility JPMorgan Chase Bank. syndicate replaced $1. 85 billion July 27, 2012, October 28, 2015. five year $2. 5 billion credit $150. letters credit. loans commitments $500. December 31, 2019 $0. outstanding borrowings 2016 Facility.
 covenants new debt mergers sell assets grant liens payments capital expenditures change business. covenants leverage ratio interest coverage ratio. restrictive total leverage ratio 3. 50 to 1.
 2016 Facility. Deltek acquisition increased leverage ratio 4. 25 1 June 30, 2017. December 31, 2017.
 debt covenants December 31, 2019 2018.
 August 26, 2019 public offering $500. principal.35% September 15 2024 $700. 95% September 15 2029. fixed rate payable semi March 15 September 15 2020. proceeds purchase iPipeline Holdings.
 August 28, 2018 $700. 65% September 15 2023 $800. 4. 20% September 15 2028. fixed rate payable March 15 September 15 2019.
 December 19, 2016, $500. 80% December 15 2021 $700. 80% December 15 2026. payable semi June 15 December 2017.
 December 7 2015, $600. 3.% December 15 2020 $300. 85% December 15 2025. fixed rate payable semi-annually June 15 December 15 2016.
 November 21, 2012, $500. 125% November 15 2022. payable May 15 November 15 2013.
 September 2009, $500.25% senior unsecured notes due September 1 2019. proceeds Offering redeem $500. outstanding 2019 Notes. incurred debt extinguishment charge redemption 2019 Notes $15. 9 make-whole premium unamortized deferred financing costs.
 Roper redeem notes 100% principal amount makewhole premium. Treasury securities.
 senior notes unsecured obligations rank equally payment unsecured indebtedness. subordinated not guaranteed Roper’s subsidiaries subordinated.
 Total debt December 31
 2019 2018 2016 865.
 $600 3. 2020.
. 800 2021.
. 125% 2022.
. 650% 2023 700.
. 350% 2024.
. 850% 2025 300.
. 800% 2026 700.
. 200% 2028.
.notes 700.
 7. 3
 unamortized debt. (26.
 debt 5,275.
 602.
 Long-term debt 4,673.


. Earnings Per Share
 share-based payment awards non dividends before vesting participating securities included earnings. two-class method. allocates earnings shareholders. participating awards dividends same income outstanding shares.
 table presents earnings per share thousands.
 October 31, 2019 2018 2017
 Net income $53,294 $61,431 $279,745
 Distributed undistributed unvested
 common shareholders 52,516 60,553 275,460
 average shares 21,829
 Earnings per common share $2.
.


Financing receivables client loan leases commercial. hardware software services.
 Payment to seven years. priced market rates. Investment leases products two to six years.
 Commercial financing inventory remarketers IBM OEM products. Payment terms 30 to 90 days.
 December 31, 2019 Investment Commercial Financing Client Loan Installment
 $6,077 $3,836 $13,592 $23,504
 Unearned income
 Recorded investment $5,567 $3,831 $13,022 $22,421
 Allowance credit losses
 Unguaranteed residual value
 Total financing receivables net $6,199 $3,820 $12,884
 Current portion $2,334 $3,820 $14,192
Noncurrent $3,865 4,847


. Net interest income expenses
 Interest income expenses financial instruments assigned categories IFRS 9.
 bonds €41 million €55 million liabilities banks €19 million €12 million.
 decline interest expenses favourable refinancing terms.
 million 2017/2018 2018/2019
 Interest income 27
 finance leases
 post-employment benefits plans
 Interest expenses −163 −148
 finance leases (−51)
 post-employment benefits plans
 (−79) (−69)
 Interest result −136 −119


TAXES INCOME.
. Loss operations
. losses effect ASC.
 December 31
 2019
.
 States (4,378) (3,617)
 Israel (18,875) (10,331)
 (23,253) (13,948)


OPERATING
 decreased. 2%. closures new space channel shift. savings outweighed inflation.
 staffing costs reduced management restructuring efficiencies. costs reduced depreciation programme assets life.
 growth distribution warehousing costs driven inflation channel shift equipment warehouse improved efficiencies Castle Donington.
 marketing costs investments Food brand timing.
 Central costs reduced incentive costs technology transformation programmes cost efficiencies investment write offs Fuse programme.
 weeks
 31 2018
 staffing 1,044. 1,070.
 costs 950. 992.
 Distribution warehousing 564.
 Marketing 155.
 Central costs 694. 698.
 3,409. 3,450.


. increased 21% RMB377. 3 billion 31 December 2019.
 business increased 13% RMB200 billion. Online games 10% RMB114. 7 billion. domestic games Honour of Kings overseas PUBG Mobile Supercell decline PC. Social networks revenues increased 17% RMB85,281 million. digital content broadcast.
 FinTech Business Services increased 39% RMB101. 4 billion. commercial payment increased consumers transactions. cloud services contributed growth.
 Online Advertising increased 18% RMB68,377 million. Social advertising 33% RMB52,897 million. Weixin mobile advertising. Media advertising revenues decreased 15% RMB15,480 million. lower revenues Tencent Video News unpredictability broadcast schedules-environment FIFA World Cup 2019.
%
 millions
 VAS 199,991 53% 176,646
 FinTech Business Services 101,355 27% 73,138
 Online Advertising 68,377 58,079
 Others 7,566
 revenues,289 100% 312,694


 Subscription Solutions
 increased $27. 2 million 26. December 31, 2019 2018. due higher third-party infrastructure hosting costs. merchants credit card fees employee-related costs amortization technology payments theme developers. decreased 9. 4% 2018 to 8. 1% 2019 infrastructure employee-related costs.
 increased $39. 7 million 64. 8% 2018 2017. due higher third-party infrastructure hosting employee-related costs.
 Merchant Solutions
 increased $208. 4 million 55. 4% 2019 2018. due Shopify Payments higher payment processing interchange fees. higher amortization higher product costs credit card fees. increased 35. 0% 2018 to 37. 0% 2019 Shopify Payments larger percentage revenue.
 increased $144. 2 million 62. 2% 2018 2017. due Shopify Payments processing fees.
Years December 31 2019 2018
 $ 128,155 100,990 26. 9 % 64. 8 %
 merchant 584,375 375,972 231,784 55. 4 % 62. 2 %
 $ 712,530 $ 476,962 293,051 49. 4 % 62. 8 %
. 1 %. 4 %. %
 37. 4 %
. 1. 4 %. 5 %


Deferred Tax Assets Liabilities
 differences assets liabilities. deferred
 Deferred tax assets
 Accrued liabilities reserves $ 245
 Tax loss credit carryforwards
 Inventories
 Intangible assets
 Pension postretirement benefits
 Deferred revenue
 Unrecognized income tax benefits
 difference subsidiaries
 deferred tax assets 7,694
 Valuation allowance
 2,724
 tax liabilities
 Intangible assets
 Property equipment
 Total deferred tax liabilities
 Net deferred tax assets 2,620 1,937


Due Related Parties
 Amounts
 Includes immaterial amount lease liabilities January 31, 2020.
 immaterial amount non-current lease liabilities. included consolidated balance sheet January 31, 2020.
 January 31, 2020 February 1, 2019
 $1,618 $1,248
 $1,457 $1,090


Contract assets deferred revenue
 Included. long-term assets. liabilities.
 revenue exceeds right payment subject. Deferred revenue billings payments. netted level.
 change deferred revenue December 31, 2019 due new billings offset revenue.
 Contract assets $5,558 $3,711
 Long-term (2) 5,420
 $10,978 $6,254
 Deferred revenue $190,080 $185,145
 (3) 5,407 5,344
 $195,487 $190,489


. DEFERRED REVENUES
 cloud services license hardware represent payments contracts revenues recognized over contractual periods. prepayments recognized as performed. cloud license on-premise license revenues from payments undelivered products enhancements.
 estimated fair values cloud services license support obligations acquired companies. cost build-up approach. profit margin. approximates obligations. fair value adjustments reduced services license support deferred revenues revenues post-combination.
 May 31,
 millions 2019
 Cloud services license support $7,340 $7,265
 Hardware 635 645
 Services 360 404
 Cloud license on-premise license 39
 Deferred revenues current 8,374 8,341
 non-current 625
 Total revenues $9,043 $8,966


unrecognized tax benefits
 December 31, 2019 balance $130. million $97. 2 million annual tax rate. $32. 8 million adjustments deferred taxes.
 unrecognized tax benefits $1. 5 million 12 months settlement expiration statute limitations. additional tax benefit expense interest penalties 2019.
 recognized $0. 8 million tax benefit $1. 5 million tax expense interest penalties December 31, 2018 2017. $5. 1 million $5. 1 million $5. 9 million accrued interest penalties December 31, 2019. interest unrecognized tax benefits.
 years prior 2016 not. not examination. not subject tax examinations 2015.
 subject examinations foreign tax jurisdictions. subsidiaries audits prior 2009. under audit Canada China Czech Republic Philippines Singapore United Kingdom.
$112. $114. $136.
 Acquired balances 15. 5
 Additions tax benefits 9. 4 7. 23.
 prior years 8. 2. 4.
 Reductions.
 (8. (10. (16.
 (6.
. Tax Reform (27.
 end year $130. $112. $114.


Profitability Measures
 Net Income
 2019 $18. million $16. million last. increase $11. 7 million operating $3. million investment $12. million tax. $21. million decrease expense reduced legal costs offset $8. million restructuring expense.
 Adjusted EBITDA Telematics Systems decreased $8. 1 million lower revenues high margin revenue. higher operating expenses increased headcount outsourced service fees. EBITDA Software Subscription Services increased $4. 9 million growth revenues profit Italia market higher fleet management services.
 Note 20 reconciliation EBITDA GAAP net income.
 years
 Telematics Systems $40,821 $48,943.
 Software Subscription Services.
 Corporate Expense.
 Adjusted EBITDA $48,215 $52,382.


impact product mix TS segment gross margins 30
 TS segment gross margin same 2019 2018. $0. 6 million increase product gross margins revenues U. S. division offset decrease U. K division. $1. 1 million. increase service gross margins increased service revenues U. division.
 amount
 Products $7,462 13%
 Services 6,427 56%
 Total $13,889 20% $12,262


Class A capital
 2019 911,367 827,871 shares restricted stock forfeiture repurchase.
.
 Balance June 30 2017 91,979,704 $9,198
 Conversion Class B shares,707
 1,902,084
 5,253,809
,496
 Balance June 30 2018 105,371,800 10
 Conversion Class B shares 5,219,947 522
 1,496,875
 4,674,873
 Balance June 30 2019 117,273,566 $11,727


. Fair Value Measures
 Company financial assets liabilities fair value hierarchy. fair value price sold transaction unrelated parties. fair value new obligor not.
 Level 1 Quoted prices markets. Level 2 Inputs. Level 3 Unobservable inputs market activity significant.
 disclosure fair value financial assets liabilities
 Cash equivalents accounts receivable payable carrying amount approximates fair value short maturity.
 Long-term debt stated value. not fair value. Fair values based quoted market prices interest rate curves level 2. Estimated fair values estimates level 3 market data not represent change. debt sensitive U. interest rates. interest rate derivative instruments. one percent (1%) decrease interest rates net fair value debt by $23,000 at June 1, 2019.fair long-term debt
 June 1 2019 June 2 2018
 Note payable $1,283 $1,309 $4,750
 Long-term leases 1,054,171
 $2,337,249 $6,090


DIVIDENDS
 August 31, 2019 dividends $0. 525 share $2. 10 $103. 7 million paid voting shares. 475 $1. 90 $93. 7 million.
 October 30 Cogeco Communications dividend $0. 58 share payable November 27, shareholders November 13,.
 August
 multiple voting shares 32,951 29,813
 subordinate 70,757 63


 balances-term $30,694 $1,352 January 1, 2018.
 US $000
 December 31, 2019 2018
 56,691 39,180
 Long 5,969
 62 41,061


. Non-Current Assets Region
 table financial deferred tax post-employment benefit insurance contracts.
 employee headcount. revenue.
 Germany 4,486,184
 EMEA 5,386 4,742
 United States 29,744 22,133
 Americas
 30,154 22,391
 1,276
 Group 41,302 32,239


Group has non-current borrowing facilities Australian New Zealand Dollars. interest only balances payable at maturity. amounts limits
 Maturity dates 23 July 2020 to 23 December 2026. interest rate bank bill rate plus margin gearing. Security granted over freehold investment properties.
 bank overdraft facility $3m undrawn 30 June 2019 2018. converted AUD $25m into $25. 75m refinanced debt increased club banking AUD $100m NZD $50m increased $150m AUD $25m NZD.
 complied with financial covenants 2019 2018. fair value approximates carrying value. exposure risk note 15.
 663,800
 192,250
 184,038


. Quarterly Financial Data
 2020 2019 millions share
 Adjusted Pivotal acquisition transaction entities common control.
 2020 Q1 Q2 Q3 Q4
 Total revenue $2,450 $2,632  $2,656 $3,073
 Net income VMware. 380 5,303 407 321
 common stockholders B income share. $0. 91 $12. 72. 98.
. B $0. 89 $12. 47.


product service revenues
 product revenues increased $158. 1 million 2019 higher sales Semiconductor Test 5G Storage Test 3. 5” hard disk Industrial Automation offset decrease Semiconductor Test automotive analog test. Service revenues increased $36. 1 million 10%.
 2019 2018 no direct customer 10% consolidated revenues. five largest customers 27% 27% revenues.
 revenues Huawei Technologies Co. 11% 4%. OEM customer 10% 13%.
 2018-2019
 Products revenues $1,887. $1,729. $158.
 Services revenues.
 $2,295.


ADVANCED ENERGY INDUSTRIES. FINANCIAL STATEMENTS
 income taxes
 tax rates differ. federal 21% 2019 2018 tax credits earnings foreign jurisdictions GILTI tax withholding taxes.
 2018
 Federal(9,627) $1,423 $26,550
 State
 Foreign 18
 $9,684 $15,207 $36,772
 Deferred
 3,822 4,021 28,297
 State
 Foreign
 deferred provision 10 25,318
 income taxes $10,699 $25,227 $62,090


(Income Expenses
 Interest income. decreased $64,000 2018 2017.
. costs capital leases loans corporate life insurance policies.
 expense. impact foreign currency European Asian currencies US dollar.
 ended March 31,
 expenses
 Interest $(98) $(162) $(64).
 Interest expense.
 expense net (391)
 expense $(479) $77 $556


Geographic Information
 operate segments Probe Cards Systems. Executive Officer reviews results performance. table summarizes operating results segment
 results performance. executive compensation measures.
 unallocated expenses amortization share-based compensation acquisition-related costs other not allocating. Acquisition-related costs transaction acquisition businesses.
 Fiscal 2019
 Revenues $491,363 $98,101 $589,464
 Gross profit $211,382 $50,927 $237,496
 margin 43. 0 % 51. 9 %. 3 %
 Fiscal 2018
 Revenues $434,269 $95,406 $529,675
 Gross profit $187,320 $47,074 $210,339
 margin 43. 1 %. 3 %. 7 %
 Fiscal 2017
Revenues $454,794,647,441
 profit $195,903 $46,647 $215,597
 margin. 3


tax effects differences deferred tax
 Company valuation allowance deferred tax assets. allowance $31. 4 million $28. 5 million remained July 2019 2018.
 increase $2. 9 million losses tax credits jurisdictions.
 Accruals reserves $7,870 $12,129
 Stock compensation 6,353
 Deferred revenue 2,316
 loss 55,881
 Tax credits 74,819
 deferred tax assets 147,239
 Less valuation allowance 31,421
 assets 115,818
 Less liabilities
 Intangible assets 7,413
 Convertible debt 10,274
 Property equipment
 Unremitted foreign earnings
 commissions
 tax liabilities 25,510
,308
 Less foreign deferred revenue
commissions
 tax 89,402 90,300


warranty liabilities
 Equipment warranty. tables liabilities balances
 April 26, 2019 April 27, 2018
 Balance $ 40 50
 Expense accrued
 Warranty costs incurred
 end $ 40
 warranty liabilities $


deferred tax liabilities offset. offset.
 net deferred tax assets entities profitable.
 Tax loss carryforwards investment credits 612
 Less unrecognized tax benefit
 591
 Inventory valuation
 Impairment restructuring charges
 Fixed asset depreciation
 Increased depreciation incentives
 Capitalized development costs
 Receivables government funding
 Tax credits capital investments
 Pension service costs
 Stock awards
 Operating lease liabilities
 Commercial accruals
 differences
 deferred tax assets 2,324
 Valuation allowances (1,534)
 790
 Accelerated fixed asset depreciation
 Acquired intangible assets
 government funding
 Operating lease right-of-use assets
 temporary differences
 Deferred tax liabilities
deferred 659


Marketing
 expenses 2019 decreased $7. 6 million 32%, 2018. global sales marketing headcount restructuring $4. 8 million personnel $1. million facilities technology. Restructuring costs decreased $0. 4 million headcount reduction 13% closure leased facilities. remaining decrease lower marketing costs $0. 6 million.
 Years Ended December 31,
 2018
 Sales marketing $15,836 $23,425 $(7,589) (32)%
 revenues 32% 40%


. INCOME TAXES
 Company files returns. federal California. subject. tax examinations 2015.
 Deferred income taxes differences assets liabilities. provides valuation allowances against deferred tax assets realization uncertain. balances December 31, 2019 2018 tax positions deductibility uncertainty timing. disallowance shorter deductibility tax rate payment cash.
 interest unrecognized tax benefits penalties operating expenses. December 31, 2019 2018 interest penalties.
 income tax provision differs from. federal income tax rate December 31, 2019 2018
 Net taxable) rates $(2,508) $(1,567)
 Stock compensation expense
 Amortization debt discount
 Impairment goodwill
 Valuation allowance 2,518
 Income tax expense


Incentive Plan
 RSU 2004
 value RSUs 2017 $229. $146. $166. million. value March 31, 2019 $522. million closing common stock $82. share March 29,. average expense 1. 91 years.
 Nonvested shares March 31, 2016 6,307,742 $36.
 1,635,655.
 2,059,524.
 Forfeited.
.
 March 31, 2017,456.
 1,267,536.
.
.
 March 31, 2018 5,672,440.
 1,951,408.
 1,805,680.
.
,729,324).
 shares March 31, 2019 6,291,962 $64.


Costs Expenses
 Revenues
 tables detail revenues percentage net revenues
 Cost Revenues—Product Sales
 decrease product costs 2019 due Destiny franchise publishing rights Bungie.
 decrease software royalties amortization intellectual property licenses due $133 million software amortization royalties Activision Destiny franchise. offset by
 royalties Call of Duty: Black Ops 4 Sekiro: Shadows Die Twice Call of Duty: Modern Warfare.
 Revenues—Subscription Licensing Other Revenues
 decrease game operations distribution costs due decrease $50 million service provider fees. payment processor server bandwidth.
 decrease software royalties amortization intellectual property licenses due
$122 million franchise King $36 million software amortization royalties Activision Destiny offset royalties Call of Duty: Mobile October 2019 lower amortization film costs third season Academy September 2018 no comparable release 2019.
 Ended December 31, 2019 Increase
 Cost sales
 costs $656 33% $719  32% $
 Software royalties amortization licenses
 licensing
 Game operations distribution costs 965 21 1,028
 royalties licenses
 $2,094 32% $2,517 34%


assets
 December 31, 2019 2018
 Note 10. "Leases financial statements.
 April 2009, credit facility agreement solar power project €17. 5 million financing system. interest 8. 0% per annum payable quarterly full due December 2026. December 31, 2019 2018 balance €7. 0 million ($7. 8 million $8. 0 million.
 June 2015, 8point3 Energy Partners initial public offering. contributed interests OpCo voting economic interests acquired interest OpCo.
 June 2018 interests Partnership CD Clean Energy Infrastructure V. received net proceeds $240. 0 million. accounted OpCo equity accounting. December 31, 2018 recognized equity earnings $39. 7 million investment OpCo gain $40. 3 million sale. received distributions OpCo $12. 4 million.
agreement Maryland Solar until December 31, 2019. fixed rent energy. accounted leaseback until sale June 2018. Maryland Solar qualified sale-leaseback accounting recognized net revenue $32. million.
 Note 9. Financial.
 Operating lease assets $145,711
 Indirect tax receivables. 9,446 22,487
 Notes receivable 8,194 8,017
 Income taxes. 4,106
 Equity investments. 2,812 3,186
 Derivative instruments.
 Deferred rent. 27,249
.,446,495
 $249,854 $98,878


Contract Costs
 Topic 606 requires incremental costs contract amortized over benefit. asset commission costs sales personnel agents contracts. defer costs incremental recoverable. Costs contract amortized as commission expense transfer goods. wireless contracts amortized over Consumer Business upgrade cycles. wireline contracts amortized customer relationship period Consumer. Business insignificant. recorded in Selling general administrative expense.
 defer costs contracts relate contract generate resources recovered through revenue. Contract fulfillment costs expensed obligations recorded Cost of services. relate direct costs wireline business resources.
 determine amortization periods portfolio level similarities.
 Other costs expensed as incurred.
 costs deferred contract costs amortized over 2 to 5-year period. costs classified current non-current Prepaid expenses other assets.
balances deferred contract costs balance sheets
 2019 2018 recognized expense $2. 7 billion $2. 0 billion deferred contract costs Selling expense.
 assess deferred costs impairment quarterly. recognize impairment charge less. no impairment charges recognized December 31, 2019 2018.
 2019 2018
 Assets
 Prepaid expenses $2,578 $ 2,083
 Other assets
 $ 4,489 $ 3,895


ADVANCED ENERGY INDUSTRIES. FINANCIAL STATEMENTS
. QUARTERLY FINANCIAL DATA
 results eight December 2019 2018. adjustments. volatility results indicative.
 December 31, September 30 June 30 March 31,
 Sales $ 338,268 $ 175,127 $ 134,810 140,743
 Gross Profit $112,295 $73,491 $64
 Restructuring Expense $1,418
 Operating income $22,202 $9,390
 Income operations $ 10,479 7,256 23,373 15,387
 Loss discontinued operations
 Net Income $ 10,269 7,631 31,697 15,378
 noncontrolling interest
 Advanced Energy Industries. $ 10,264 7,621 31,686 15,370
Earnings Per Share
 Continuing Operations
 Basic earnings. 27. 19. 61. 40
 earnings. 27. 19. 61. 40
 Discontinued Operations
 loss share. 01. 01. 22
 loss. 01. 01. 22
 Net Income
 earnings share. 27. 20. 83. 40
 earnings. 27. 20. 82.


Operating Income Margin
 2019 increased $406 million 7% 2018.
 rounding.
 September 1 2018 adopted FASB ASU No. 2017-07 Compensation-Retirement Benefits Improving Pension Cost Postretirement Benefit Cost. pension reclassified Operating Non-operating expenses. amounts revised current.
 Operating Income Margin
 millions. dollars
 Communications Media Technology $1,555 18% $1,380 17%
 Financial Services 1,238
 Health Public Service
 Products 1,720
 Resources 1,053
 $6,305. $5,899. $406


Contractual Obligations
 obligations December 31, 2019
 obligations orders obligations goods services. orders enforceable binding cancel reschedule adjust. non-cancellable. other obligations goods services. not enforceable change. aggregate estimate obligations.
 Payments due period
 Up to 1 year 3 years 5 years
 Operating lease obligations 16,164 19,812 6,551 5,883 48
 Financing obligations 2,956 5,912 8,868
 Long-term debt 460,000
 Purchase obligations 55,755 16,220 7,595 17,649 97,219
 Total 74,875 41,944 474,146 614,497


Differences taxes. Federal statutory income tax rate
 tax rate March 2017 35%. Tax Cuts and Jobs Act reduced. corporate tax rate 35% to 21% January 1, 2018. tax blended 31. 6%. 2019 21%.
 prior year adjustments offset by full valuation allowance no impact.
 difference $1. 5 million expansion Sec. 162(m) limitation tax law.
 2018 differences $4. 8 million foreign earnings $45. 6 million tax rate adjustment. offset valuation allowance adjustment net benefit $0. 8 million.
 difference $3. 7 million revaluation net operating loss federal tax rate.
 foreign operations valuation allowance excludes adjustments $3. 8 million. $0. 9 million 2019 2018 2017 impact.
 jurisdictions China Mexico. statutory tax rates 25% 30%. combined
 $5. 7 million, $3.8 million. 1 million.
 Fiscal Years Ended March 31,
 statutory rate $35,791 $59,162 $3,722
. valuation allowance (67,761
 Unremitted earnings foreign subsidiaries
 prior year adjustments
 IRC section 162 limitation
 Expired foreign tax credits
 Taxable foreign income 3,502
 valuation impact
 Non-taxable gain bargain purchase
 APA settlement
 Tax-deductible equity compensation
 non-deductible expenses
. tax law changes 50
 taxes federal taxes
 foreign operations tax reserves
 Foreign tax rate differential
 tax law
 foreign operations valuation allowance
 Nondeductible expenses antitrust litigation
 foreign operations
,460 $9,132 $4,294


table maturities debt investments July 27, 2019
 differ borrowers prepay obligations.
 1 year $6,322
 5 12,191
 10
 10
 Mortgage-backed securities no maturity 1,425
 $21,590 $21,660


. Taxation
 charge lower effective rate corporation tax UK 19%. differences explained
 Taxation equity £0. 6m (2018 £0. 1m share-based payments.
 tax charge based standard rate UK corporation tax 19%. Deferred income taxes measured rate. assessment average deferred income tax rate 17% balances 31 March 2019.
 £m Profit before taxation 242. 210.
 Tax profit activities standard UK corporation tax rate 19% 46.
 Expenses not deductible.
 Income not taxable.
 Adjustments foreign tax rates.
 prior years.
 Total taxation charge 44. 39.


. Intangible assets
 goodwill
 allocated listed group. appropriate allocate intangible assets combining portfolios.
 recoverable amount determined fair value less costs disposal. 1 July 2019 NSR 773,343,956 stapled securities Australian Securities Exchange $1. 745 per security market capitalisation $1,349. 5m.
 excess net assets 30 June 2019 future issue equity. security price decreased. 5% market capitalisation excess carrying.
 Goodwill
 net book value 43,954
 Other intangible assets
 2,051
 Additions
 Amortisation
 2,546
 Total intangible assets 46,500


FINANCIAL INFORMATION
 results under. S. accounting principles non-GAAP measures operating performance. fiscal years 2019 2018 2017 gross profit margin (loss income net (loss income diluted net (loss income per share shares calculation GAAP non-GAAP millions
 non-GAAP measures supplement consolidated financial statements. include items financial results. operating decisions supplemental information earning potential performance excluding benefits credits expenses charges core business results. measures useful investors allow transparency financial operational decision-making institutional investors analyze health business. understand operating results future prospects compare financial results periods peer understand long performance core business. use measures company-wide incentive compensation.
 limitations in non-GAAP financial measures not GAAP different from.non-GAAP measures exclude results. subject limitations judgments management. compensate analyzing future results providing GAAP measures public disclosures. not comparable measures. urge investors review reconciliation not rely single.
 Fiscal Year Ended January 31,
 Gross profit $2,283. $1,753. $1,689.
 Non-GAAP profit $2,317. $1,785. $1,743.
 margin 89%
 87%
 Loss from operations $(25. $(509. $(499.
 Non-GAAP income (loss $316. $(112.(125.
 Operating margin
 Non-GAAP 12%
 Net loss $(80. $(566. $(582.
 Non-GAAP net income $223. $(106. $(111.
 net loss per share $(0.. 58) 61
 Non-GAAP income share $1. 01 48. 50
 GAAP shares 218. 9 219. 5 222.
 Non-GAAP 222.


. PROPERTY PLANT EQUIPMENT
 Depreciation $29. $30. $27. 3 million. depreciation lease $5. 3 million $3. 2 million.
 Note 17 Impairments 15 Restructurings.
 Construction 24,848
 Machinery 175,696
 Leasehold improvements 12,962
 Furniture fixtures 3
 Capital lease assets 46,496
 Computer 18,116
 property 281,834,286
 depreciation amortization,363
 $132,647 $149,923


Telecommunications Segment
 revenue decreased $97. 5 million to $696. 1 million $793. 6 million. attributed customer mix wholesale voice termination volumes market pressures.
 decreased $94. 2 million to $684. 9 million from $779. 1 million. volumes reduction margin mix.
 Selling general administrative expenses decreased $1. 2 million to $8. 2 million $9. 4 million. due compensation expense headcount bad debt expense.
 operating expense $4. 5 million driven impairment goodwill declining performance.
 Net revenue $696. $793.
 Cost revenue 684.
 Selling general administrative 8.
 Depreciation amortization.
 Other operating expense.
 Income (loss) operations. $4.


U. federal corporate income tax rate change January 1, 2018 remeasured deferred tax assets liabilities. 2018 recorded $108 million tax expense tax rate changes. 2019 $6 million deferred tax assets equity compensation awards executives.
 TCJA imposes transition tax foreign earnings profits. 15. 5% foreign cash 8% remaining earnings. 2018 recorded $732 million tax expense. third quarter 2019 reduction $5 million provisional estimate.
 April 26, 2019 completed accounting tax impacts TCJA assess impact recognize adjustments.
 TCJA minimum tax intangible income foreign income. companies account GMT. GMT recorded $22 million tax expense federal state impacts fiscal 2019.
 October 2016, FASB issued ASU eliminates deferred tax effects intra-entity asset transfers.tax expense sale recognized pre-tax effects eliminated.
 2017 stock-based compensation tax charge $18 million.
 deferred tax assets liabilities
 valuation allowance increased $14 million 2019. deferred tax assets foreign tax carryforwards state tax credit.
 April 26, 2019 federal net operating loss tax credit carryforwards $2 million $3 million. state loss tax credit carryforwards $25 million $138 million. California research credits offset valuation allowance. $4 million foreign net operating losses $43 million tax credit carryforwards offset valuation. acquired carryforwards limitation Internal Revenue Code Section 382. federal loss carryforwards credits expire 2020 2038. California research Dutch foreign tax credit carryforwards expire.
 Deferred tax assets
 Reserves
loss credit carryforwards 139 131
 Stock compensation
 Deferred revenue 205 156
 deferred tax assets 426 395
 303 286
 Prepaids accruals
 Acquired intangibles 32
 Property equipment
 liabilities 104 89
 $199 $197


PER SHARE
 computed earnings. diluted earnings potentially dilutive shares.
 dilutive shares incentive plans treasury stock method stock options vesting RSUs issuance 2006 ESPP. December 2017 paid cash convertible
 debentures 2035 excluded diluted earnings dilutive. November 2019 issued notice redemption $372 million 2009 Debentures date January 9, 2020. settlement cash. determined dilutive shares treasury stock. included 2009 Debentures diluted earnings average market price above conversion price.
 dilutive shares plans treasury stock method stock options RSUs issuance. December 2017 paid cash convertible debentures 2035 excluded earnings no dilutive. November 2019 notice redemption remaining $372 million 2009 Debentures redemption date January 9, 2020. settlement cash.conversion premium paid cash stock determined dilutive shares treasury stock method. included 2009 Debentures diluted earnings market price above conversion price.
 Securities anti-dilutive excluded.
 Dec 28, 2019 Dec 29, 2018 30, 2017
 Net income common stockholders $21,048 $21,053 $9,601
 shares 4,611 4,701
 Dilutive effect employee incentive plans
 convertible debt
 4,701
 Earnings $4. 77.
.


AMERICAN TOWER CORPORATION SUBSIDIARIES
 FINANCIAL STATEMENTS
 amounts millions
.
 reduction Prepaid leases reclassification Right-use new lease accounting standard.
 receivables $142. $126.
 Prepaid income tax 185. 125.
 Value added tax consumption tax receivables 71. 86.
 56.
 leases 165.
 assets 57.
 $513. $621.


Cash Flows
 2019 2018
 table cash flows 2019 2018
 $0. 6 million 2019 loss $3. 8 million debt discount $13 thousand loss debt extinguishment $2. 6 million. offset $108 share compensation $66 debt depreciation $207 intangible amortization $154 outflows. $78 revenue receivable $379 accounts payable accrued expenses. offset $55 royalty $67 income tax $394 accrued interest $44 prepaid expenses $18 liabilities.
 $3. 9 million 2018 loss $3. 8 million debt discount $172 gain debt extinguishment $296 thousand. offset $218 share compensation $87 debt discount $73 depreciation $207 intangible asset amortization $183 outflows. $66 royalty receivable $830 accrued interest expenses.cash outflows offset $109 thousand decrease prepaid expenses assets $604 accounts payable.
 no investing 2019 2018.
 $1. 4 million 2019 proceeds loans.
 $1. 8 million 2018 $4. 350 million proceeds loans. offset $2. 6 million repayments debt retirement Oxford Finance.
 cash
 Operating activities $(3,908)
 Investing
 Financing
 increase cash equivalents $771,129


. REVENUE CONTRACTS CUSTOMERS
 Revenues costs construction contracts recognized performance obligations ASC 606. revenue profit recognized customer control goods services promised. uninstalled materials equipment excluded profit unless progress.
 tables impact adoption ASC 606 statement operations year December 31, 2018 balance sheet
 Revenue $70,965 $68,845 $(2,120)
 Cost goods sold 58,701 57,471 (1,230)
 Gross profit 12,264 11,374 (890)


Plan Assets fair value 20 May 26, 2019
 Level 1 assets valued prices. include common stock. companies mutual funds units real estate trusts traded priced.
 Level 2 valued inputs quoted prices yield curves indices. fixed income securities prices data.
 3 market pricing estimated unobservable inputs.
 Certain assets measured not. long-term varying redemption availability. $51. 0 million managers impose redemption gates redemption. $4. 2 million imposed gates.
 unfunded commitments $48. 3 million private equity $17. 0 million natural resources funds. unfunded commitments plan assets.
 Consolidated Financial Statements Fiscal Years Ended May 26, 2019 May 27, 2018 May 28, 2017
 Level 1 2 3

 Cash equivalents $0. $77.
 Equity securities
. 56.
 International equity securities 87.
 Fixed income securities
 Government bonds 748.
 Corporate bonds 2,255.
 Mortgage-backed bonds 31.
 Real estate funds.
 receivables unsettled transactions 5.
 pension plan assets $150. $3,204. $3,355.
 Investments value 245.
 pension plan assets $3,601.


Unrecognized Tax Benefits
 July 27, 2019 $1. 7 billion unrecognized benefits tax rate. 2019 $30 million interest $6 million penalty. 2018 $10 million no. 2017 $26 million $4 million penalties. total penalties $220 million $180 million $186 million 2019 2018 2017. federal income tax 2010. foreign tax 1999 2008,.
 tax authorities. federal tax matters 12 months. transfer pricing. unrecognized tax benefits 27, 2019 $50 million 12 months.
 July 27, 2019 28, 2018 July 29, 2017
 Beginning balance $2,000 $1,973 $1,627
 Additions tax positions 185
 Additions prior 84
 Reductions.
 Settlements
 Lapse statute limitations.
 Ending balance. $ 1,925


FAIR VALUE MEASUREMENT
 Company measures financial assets liabilities fair value. determined exit price liability determined principal advantageous market. Inputs classified three-level hierarchy
 Level 1—Quoted prices markets.
 Level 2—Observable inputs model-derived valuations
.
 Level 3—Unobservable inputs.
 Company considers liquid investments maturity three months less cash equivalents. investments money market funds. treasury bonds commercial paper certificates of deposit securities corporate debt securities classified Level 2 valued transaction price reporting date market-observable data. trades benchmark yields credit spreads broker/dealer quotes bids offers spot rates industry economic events.
 fair value determined inputs 31, 2019 2018
Quoted Prices Markets Inputs Inputs 3)
 Assets
 Money market funds $2,010
. treasury bonds 116,835
 Commercial paper 44,300
 Certificates deposit 24,539
 Asset-backed securities 73,499
 Corporate debt securities 181,079
 442,262


 objective strong credit rating capital ratios value. returns structure costs.
 dividend return capital issue shares liabilities.
 monitors capital debt to capital ratio. net debt divided total capital. liabilities minus cash. total capital equity net debt.
 strategy reasonable ratio raise capital cost. debt to capital ratios December 31, 2018 2019
 liabilities $158,199,746 $163,347,778
 Cash equivalents (83,661,739 (95,492,477)
 Net debt 74,538,007 67,855,301
 equity 204,397,483 202,913,915
 capital $278,935,490 $270,769,216
 Debt to capital ratios 26. 72% 25. 06%


. Segment Customer Information
-lived assets geographic area. table presents property equipment location
 April 26, 2019 April 27, 2018
. $ 572 $
 $ 759 $ 756


 Enterprise Security
 Revenue increased $199 million $331 million network web security $36 million endpoint information protection solutions offset $184 million decrease divestiture WSS PKI solutions. subscription cloud solutions less-period more deferred. income increased $286 million higher revenue $51 million decrease sales marketing expenses $38 million cost revenues.
 Variance
 Net revenues $2,554 $2,355 8%
 53%
 Operating income $473  $187
 margin 19%


GreenSky. FINANCIAL STATEMENTS States Dollars share
 Note 6. Property Equipment Software
 table shows depreciation amortization impairment losses abandoned software projects. future cash fair value $0.
 Ended December 31,
 Depreciation $2,540 $2,320 $2,149
 Amortization 4,764 2,158
 Impairment losses


Research Development Engineering Expense
. percent 2019 6. percent 2018.
 increased. 3 percent 2019 Higher spending Higher acquisition-related charges Red Hat currency.
 Operating (non-GAAP expense increased. 4 percent acquisition charges.
 year December 31 2019 2018. Percent Change
 consolidated research development engineering $5,989 $5,379. 3%
 Non-operating adjustment
 Acquisition-related charges
 research $5,936 $5,379. 4%


profit Canadian American. reporting structure performance.
 Canadian American provide Internet video telephony residential business. Canadian Cogeco Connexion Québec Ontario American Atlantic Broadband Connecticut Delaware Florida Maine Maryland New Hampshire New York Pennsylvania South Carolina Virginia West Virginia.
 Business ICT services segment Cogeco 1 discontinued sale April 30, 2019. Note 8.
 assess performance profit revenue less operating expenses. other expenses reported external.
 Revenue market $1,294,967 Canada $1,036,853 United States. restructuring costs acquisition FiberLight American.
 Year ended August 31, 2019 Canadian American broadband services Inter-segment eliminations Consolidated
 dollars
 Revenue 1,294,967 1,036,853
 Operating expenses 606,286 571,208 1,203,980
Cogeco. 19,900
 profit 688,681,645,107,940
 Integration acquisition,150
 Depreciation amortization 254,345 226,301,725
 Financial expense 175,502
 Profit taxes 440,563
 356,908
 Acquisition property equipment 241,940 192,605 434,545


Postretirement Benefit Plans
 pension benefits. Teradyne employees early retirement Welfare Plan medical dental benefits 65. Death benefits fixed sum survivors. employees eligible benefit obligation.
 December 31 balances postretirement assets obligations
 Assets Obligations
 Change benefit obligation
 $9,256 $6,177
 Service cost
 Interest cost
 Actuarial loss
 Special termination benefits 3,708
 9,003,256
 plan assets
 value
 Company contributions 1,358
 Funded status $(9,003) $(9,256


Profit loss after taxes
 METRO China reclassified income loss discontinued operations consolidation measures. shares consolidation included discontinued section. previous year’s figures adjusted.
 Profit loss discontinued operations taxes shareholders METRO AG €118 million (2017/18 €87 million. Noncontrolling interests €5 million earnings (2017/18 €1 million.
 divestment expenses low 2-digit million incurred.
 profit loss discontinued operations taxes METRO China
 million 2017/2018 2018/2019
 Sales 2,680,901
 Expenses −2,563 −2,736
 earnings discontinued operations before taxes
 Income taxes gains/losses −29
 after taxes
 Gains/losses


Non-GAAP Integration Transformation Costs Special Items
 $18 million hardware Q3 2018 $15 million content $27 million hardware software internal labor Q1 2018.
 $55 million restructuring reserve Q2 2018.
 Level 3 acquisition colocation data center sale January 1 2017.
 Integration Transformation Costs Special Items EBITDA
 Consumer litigation settlement $65
 Loss sale data colocation
 hardware software
 special items
 integration transformation costs
 transaction expenses
 costs items


. Directors management compensation
 details amounts earned Directors Executive Committee.
 emoluments
 Excludes gains incentive plans.
 Includes cash allowance pension contributions
 No Directors exercised share options 31 March 2019 gain. 1 million 2017:. 7 million
 2018
 Salaries fees
 Incentive
 Other


ADVANCED INDUSTRIES. FINANCIAL STATEMENTS
. WARRANTIES
 agreements warranties 12 24 months. estimated cost warranty obligation experience.
 obligation Balance Sheets. Changes warranty obligation
 Ended December
 Balances $2,084 $2,312 $2,329
 Warranty combinations
 Increases accruals 1,752 1,606 2,029
 expenditures (2,249),127,184)
 exchange rates
 end period $6,413 $2,084


Interest Income Expense
 earned cash equivalents restricted cash marketable securities. increase higher yields longer duration investments higher balances.
 expense term loans offset-rate swap contracts charges. decrease lower debt balances CMI acquisition expense loan.
 foreign currency impact gains losses.
 28, 2019
 Interest income $2,714 $1,356 $548
 balance cash investments $179,526 $138,467
 yield 2. 05 %. %.
 Interest expense $1,915 $3,314 $4,491
 Average debt $56,776 $90,086 $127,598
 interest rate debt 4. 09 %. %.


Net Income Share
 table basic diluted earnings
 December 27, 2019
 income share
. 82.
. 81.
 shares
 29,532,342 28,703,265 26,118,482
 Diluted 30,073,338 29,678,919 27,424,526


realisation obligations year end
 Group applies IFRS 15 disclose obligations one year less.
 year deferred income unsatisfied obligations recognised revenue future
 represents revenue remaining obligations. amounts include orders performed.
 million
 Within one year 18. 15.
 Greater one year 10. 12.
 28.


small OEM customers net revenues expect concentration. OEMs use contract manufacturers. net revenues from sales contract manufacturers consignment warehouses.
 sales foreign domestic distributors OEMs contract manufacturers. Direct sales consignment warehouses 41. 3% 34. 39. 0% net revenues 2019 2017.
 Sales foreign domestic distributors 56. 0% 62. 5% 57. 5% net revenues. direct customers 10% or more net revenues
 Nokia largest customer 2019 2017. purchases contract manufacturers distributors. purchases 45% 36% 41% net revenues.
 revenues impacted fluctuations sales Nokia future sales affect results. other OEM customers 10% net revenues 2019 2017.
 Contract manufacturers consignment warehouses
 Flextronics Technology. 8%.
 Sanmina.
 Distributors
Avnet Logistics 31.
 Nexcomm 14.


. Fair Value Measurements
 valuation techniques fair value assets liabilities
 Cash Equivalents. December 31, 2019 2018 money market funds. prices identical classify Level 1.
 Marketable Securities Restricted Investments. foreign debt government obligations U. S. debt time deposits investments foreign U. S. government obligations. classify techniques Level 1 or 2. counterparties’ credit standing.
 Derivative Assets Liabilities. foreign exchange forward contracts major currencies interest rate swap contracts interest rates. not traded standard industry valuation models. project future cash flows discount present value-based inputs interest rate curves credit risk foreign exchange rates prices. active markets term classify valuation techniques Level 2.evaluating credit risk effect credit fair value derivative assets liabilities.
 December 31, 2019 2018 fair value measurements
 Measurements Reporting Date
 31, 2019 Quoted Prices Active Markets Identical Assets Inputs Unobservable Inputs 3)
 Assets
 Cash equivalents
 Money market funds. $7,322
 Marketable securities
 Foreign debt 387,820
 government obligations
. debt. 66,134
 Time deposits. 335,541
 Restricted investments. 223,785
 Derivative assets. 1,338
 assets. $ 1,043,951 $ 342,863


assets decreased €569 million €7. billion. billion. Cash equivalents €407 million. 5 billion.
 Adjusted discontinued business.
 consolidated financial statements.
. 30/9/2018
 assets 7,703 8,329 7,761
 Inventories 26 2,108 1,905
 Trade receivables 27 571 496
 Financial assets
 24 913 796 881
 tax refunds 206
 Cash equivalents 29 1,298 906
 Assets 2,605 4,024 3,758


Performance-Based Restricted Stock Units
 eligible vest fiscal year three-year based annual growth rate net sales non-GAAP diluted earnings per share four times results fourth quarter 2018 peer.
-based units granted 2019 60% net sales 40% non-GAAP diluted earnings per share. maximum percentage 50% target units vesting capped 30% 100% target units years one two.
 December 31, 2019 probable achieve performance metrics expected revenue non-GAAP diluted EPS results growth rates.
 performance-based stock unit activity
 Number shares granted based maximum percentage.
 Number Weighted-Average Grant-Date
 Fair Value per Share
 December 31, 2018
.
 December 31,.


 Free Cash Flow £54. 9m FY19 £92. 4m US cash flows. conversion rate 36% Adjusted EBITDA 45%. Conversion increased 47% 33% improved EBITDA capital interest costs exceptional cashflows.
 factors cash. disposal US business capital restructuring dividend payments.
 Net Debt decreased £288. 5m £501. 1m FY18. Net Debt:EBITDA leverage 1. 8x. 2019 2. 3x September 2018. debt Freshtime acquisition. 27 facilities £506m maturity 4. years.
 ROIC 14. 4% 12 months. 6% 2018. increased investment acquisition Freshtime increased tax rate.
 Free Cash Flow.
 Net Debt.
.
.


AMERICAN TOWER CORPORATION SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS amounts millions
. INCOME TAXES
 December 31, 2012, Company filed intends U. S. federal income tax returns REIT domestic separate tax returns. files tax returns states countries. state tax returns reflect subsidiaries dependent connection state organization. information income taxes consolidated basis.
 income tax provision continuing operations
 effective tax rate years December 31, 2019 2018 2017 differs federal statutory rate due qualification REIT adjustments state foreign items. deduct earnings against income REIT operations. offset income NOLs limitations.
.
 (5.
.
.
.
 53. 85.
 Income tax benefit (provision.


Company maintains allowance doubtful accounts. monitors credit risk receivables. considers aging creditworthiness economic conditions.
 allowance doubtful accounts
 increases expense December 31, 2019 2018 2017 reflect receivables.
 Years Ended December
 2018 2017
 Balance -$3,912 -$4,799 -$3,873
 Provision increase -2,561 -1,505 -2,086
 Amounts written recoveries 1,368 2,269 1,305
 Foreign currency translation adjustments
 end period -$5,149 -$3,912 -$4,799


. 25% Notes Embedded Cash Conversion Option
. derivative liability changes value recognized consolidated statements.
 initial value liability $82. 8 million reduced carrying value. 25% Notes original issuance discount. measured fair value Level 3 fair value hierarchy. Note 1 Presentation Accounting Policies.
 table impact changes. 25% Call Option. Notes statements
 December
. 25% Call Option $ (9,020 (37,474) 29,498
. 25% Embedded cash conversion option 9,789 37,803 (30
 Net (loss income $ 769 $ 329


FINANCIAL STATEMENTS
 Quarterly
 Net sales $117,625 $120,684 $115,651
 Gross margin $40,615 $41,204 $37,057
 Operating earnings $14,218 $17,083
 earnings $11,419 $11,943 $2,722 $10,062
 earnings.
.
 Net sales $113,530 $118,021 $118,859 $120,073
 Gross margin $38,433 $41,813 $42,082
 Operating earnings $13,359 $14,544 $16,118 $17,017
 earnings,54 $7,209 $10,211 $17,564
 earnings.
.


Plans
 maintain termination postretirement. disability. Eligibility local requirements.
 Funded Status
 postretirement health plans
 April 26, 2019 27, 2018
 value assets $ 31 $ 25
 Benefit obligations (61) (53)
 Unfunded obligations $(30) $(28)


. 6 Provisions
 Recognition measurement classification
 Employee benefits annual service leave
 Group recognises liability for annual leave present value future payments services projected unit credit method. future wage salary levels departures periods service. payments discounted market yields corporate bond rates future cash outflows.
 within 12 months.
 Annual leave current obligation pay.
 Clawback provisions
 fees insurance funds broadband providers mortgage brokers clawed early termination membership. triggered policy. clawback period 0 24 months.
 measured present value expenditure obligation discounted cash flow methodology. risks factored cash flows corporate bond rate discount rate. provisions discounted pre-tax rate. increase provision interest expense.
 Group provides liability rates attrition recognises revenue clawback.
CONSOLIDATED
 2019 2018
 Annual 2,349 2,233
 830 781
 Clawback 2,463
 6,135 5,701
 Non-Current


FINANCIAL STATEMENTS share data
 2017 Tax Cut Jobs Act one-time transition tax repatriation foreign earnings no incremental US Tax. limited taxes foreign withholding state taxes. company records deferred tax liability estimated state tax cost undistributed not.
 Tax Act Global Intangible Low-Taxed Income taxes return assets. tax expense.
 financial statement benefit tax position. December 31, 2019 approximately $5,016 unrecognized tax benefits effective tax rate. changes 12 months.
 reconciliation tax benefits
 interest penalties tax benefits income tax expense. December 31, 2019 $707 $2,515 interest penalties accrued.
 subject taxation U. states non-U. jurisdictions. income tax returns 2016 through 2018. review prior tax years tax credit.non. tax returns 2008 2018 local statutes.
 December
 Balance January 1 $3,649 $4,670
 current tax positions
 prior
 statute limitation
 settlements taxing authorities
 Balance December 31 $5,016 $3,649


 allocates sales. Caribbean Canada Central South America.
 domestic international sales three years
 assets 2019 2018 property plant equipment $1,406,546 $412,755 Mexico.
 United States $78,553,000 $72,295,000 $67,901,000
 Countries 6,481,000 5,356,000
 Sales 85,034,000 $77,651,000 $73,948,000


Summarized Quarterly Financial Data
 table presents unaudited results eight fiscal quarters. statements.
 UNAUDITED QUARTERLY RESULTS
 thousands
 dilutive securities treasury stock method.
 Three Months March June September December 31,
 Net sales $143,791 $156,391 $114,092 $115,787
 Gross profit $60,612 $65,015 $46,331 $47,209
 Operating income $(6,167,288,070
 Net income $770 $3,995(46,123
 Earnings common share.
 diluted.


Research Development Expense
 increased $19. 1 million 2018 2017. due $18. 1 million employee costs 159 229. remaining increase $2. 9 million hosting software $0. 3 million subscription cost offset $1. 0 million office expenses. $7. 8 million 2018 $6. 3 million expense $1. 4 million 2017.
 Ended December 31,
 Research development $ 41,305 $ 22,241 $ 19,064. 7%
 revenue 28%


Contractual Obligations
 table contractual obligations commercial commitments at December 31, 2019. detail consolidated financial statements.
 long-term debt variable coupon rates exclude unamortized debt costs Note 7. Note 6.
 purchase obligations commitments services equipment software marketing services. represent entire purchases. purchase products services no firm commitment.
 future cash outflows cash position. See Note 16.
 long-term liabilities estimated postretirement benefit pension plan contributions. contributions minimum funding contributions 2026. postretirement benefit future.
 subject to change exclude expectations beyond 5 years. See Note 11.
 future minimum payments sublease arrangement tower transaction. Note 6.
 unrecognized tax benefits balance $2. 9 billion interest penalties settled until. See Note 12.
 Payments Due Period

 Obligations
 Long-term $110,865 10,470 16,431 74
 lease 1,213
 debt 112,078 10,836 16,910 74,285
 Interest 62,450 4,578 8,383 7,426
 25,968 4,099 7,127 5,485 9,257
 Purchase 18,769 8,384 7,448
 long-term 4,135 694 1,692
 1,539 281
 obligations $ 224,939 28,872 42,139 26,751 127


Deferred commissions
 ASC 606 capitalize sales contracts. amortize commissions transfer goods. tables activity commissions sheets
 April 26, 2019 27, 2018
 current assets $ 75 $ 66
 non-current assets
 deferred commissions $ 172 $ 137


AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
. RECEIVABLE NON
 reduction Long-term prepaid ground rent reclassification Right-of-use new lease accounting standard.
 December 31, 2019
 Long-term prepaid ground rent $607.
.
 miscellaneous assets.
 $406.


August 1, 2019 Company acquired 100% Automated Packaging Systems. manufacturer bagging systems. acquisition Product Care. solutions markets.
 $445. 7 million cash. balance sheet $58. 2 million liabilities deferred incentive compensation plan European employees. $19. 7 million paid December 31, 2019. Sealed Air remaining payments installments two years.
 purchase price funded incremental term facility Credit Agreement. December 31, 2019 transaction expenses Automated $3. 3 million. selling expenses Consolidated Statements Operations.
 summarizes Automated allocation purchase price assets liabilities. preliminary adjustment. estimates one year acquisition.
 August 1, 2019 $8. 6 million cash receivables. Cash Automated. impact Consolidated Balance Sheets September 30, 2019.
 August 1, 2019 $19.4 million recorded non liabilities preliminary balance sheet third quarter 2019 Form 10-Q filing. related second installment deferred incentive compensation plan Automated European employees. two payments twelve months acquisition second current liabilities. preliminary allocation August 1 2019 shows second installment.
 Revised Allocation
 August 1 2019 December 31, 2019
 consideration transferred $ 445.
 Assets
 Cash 16.
 Trade receivables 37.
.
 Inventories 40.
 Prepaid expenses current assets 2.
 Property equipment 79.
 intangible assets 78.
 261.
 Operating lease right-of-use-assets.
 non-current assets 24.
 $ 540. 545.
 Liabilities
 Accounts Payable 12.
 long-term debt 2. 6.
 operating lease liabilities. 5.
 56. 2 55.
 debt 4. 3.
 2. 8.
 Deferred taxes.
 non-current 19. 8 6 21.
 liabilities 94. 9 5. 100.


Acquisition-Related Expenses
 Level 3. summarizes transformation severance retention compensation transaction
 December 31, 2019 $950 million Level 3. selling general administrative expenses.
 $47 million acquisition. not included results operations.
 Ended December
 millions
 Transaction-related expenses
 Integration transformation 234 391
 Total acquisition expenses $234 393


Income Taxes
 operations. jurisdictions offset release valuation allowance. federal deferred tax assets limitations. December 28, 2019 valuation allowance $36. 6 million against California deferred tax assets foreign tax credits uncertainty future.
 2018 $75. 8 million reduction valuation allowance. deferred tax assets. lower statutory tax rate. offset higher profits foreign jurisdictions.
 tax rate taxable income valuation allowance. tax laws expansion deductibility.
 Fiscal Year
 December 28, 2019 29, 2018 30, 2017
 Provision income taxes $11,717 $(70,109 $1,293
 Effective tax rate 22. %.


net sales North America 2019 2018
 increased 12% $661. 3 million. PCM $716. 1 million core $51. 3 million. hardware software services increased 10% 14% 25%.
 Hardware $3,957,507 $3,610,356
 Software 1,269,983 1,112
 Services
 $6,024,305 $5,362,981


. DEPRECIATION AMORTIZATION
 2018 restated IFRS 15 accounting policy Cogeco discontinued operations. policies operations.
 2019 depreciation amortization increased. 9% MetroCast acquisition depreciation property plant equipment appreciation US dollar Canadian dollar.
 August
 Depreciation property plant equipment 423,432 387,726.
 Amortization intangible assets 57,293 45,928.
 480,725,654.


Long-lived assets region
 fixed assets property plant equipment 2019 new lease accounting standard ROU other not allocated location.
 Credit Note 2.
 December 31,
 2018 2017
 assets region
 Americas $322 $203 $197
 EMEA 142 62
 Asia Pacific 21
 assets $485  $282 $294


Trade Receivables
 non interest-bearing 30–90 day payment terms territory. carrying value fair value. 31 March 2019 provision impairment $0. 6M. operating expenses receivables.
 contract acquisition expense deferred $0. 9M $259. Sales Marketing costs $8. $239. 9M.
 31 March 2019 2018
 receivables 128. 151.
 Prepayments 26. 23.
 Deferral acquisition. 29.
.
 195. 210.
 Non
 15. 16.
.
.


ADVANCED ENERGY INDUSTRIES. FINANCIAL STATEMENTS thousands share amounts
 pension plan assets category December 31,
 December 31, 2019 assets $14. 9 million invested five funds multiasset fund. diversified growth fund. index-linked gilt. corporate bonds. insurance contracts (7%. funds return reduced volatility classes equities bonds cash alternatives. property infrastructure debt currency. bond fund gilt fund invested index-linked gilts corporate bonds. investments protection interest rates inflation.
 December 31, 2019
 Multi-Asset Fund $4,825
 Diversified Growth Fund 4,855
 Index-Linked Gilts 1,934
 Corporate Bonds 2,090
 Insurance Contracts
 December 31, 2018
Multi-Asset Fund $4,570
 Diversified Growth Fund 4,650
 Index-Linked Gilts 2,044
 Corporate Bonds
 Insurance Contracts
 Cash
 $13,308 $13,433


Goodwill
 excess consideration transferred over fair value assets. Autodesk tests goodwill for impairment annually fourth fiscal quarter impairment reporting units.
 qualitative factors impairment quantitative test. include cost financial performance legal regulatory contractual political business entity specific industry market considerations macroeconomic conditions events. fair value greater than carrying value quantitative impairment test unnecessary.
 test necessary optional assessment or fair value greater. publicly traded fair value approximated by market capitalization.
 Goodwill impairment estimated fair value less than carrying value. value reduced to fair value impairment charge statements. evaluating potential impairment subjective requires judgment.Autodesk’s goodwill impacted financial results market capitalization slowdown economy changes business strategy.
 Autodesk market capitalization excess carrying value January 31, 2019. no goodwill impairment 2019. goodwill impairment losses 2018 2017.
 table summarizes changes goodwill 2019
 Purchase accounting adjustments reflect value assets liabilities 2019.
 January 31, 2019 2018
 Goodwill $1,769. $1,710.
 accumulated impairment losses.
 Additions acquisitions 866.
 foreign currency translation measurement period adjustments.
 Goodwill end year $2,450. $1,620.


Leases Contractual Commitments
 VMware leases office facilities equipment. future lease commitments January 31, 2020
 exclude lease payments $361 million sublease income.
 future lease commitments after 2025 ground leases Palo Alto headquarter facilities expire 2047. leases payable foreign currencies payments fluctuate exchange rate.
 Future Lease Purchase Obligations Asset Retirement Obligations Total
 2021 $144 $168 $313
 2022
 2023 127
 2024
 2025
 $1,202 $255


Property plant equipment
 December 31, 2019 2018
 estimated lives. revised Series 6 equipment 10 to 15 years. reduce depreciation $15. million per year. Depreciation $176. 4 million $109. 1 million $91. 4 million 2019 2018 2017.
 Land $14,241,382
 Buildings improvements. 664,266
 Machinery. 2,436,997 1,826,434
 Office equipment furniture. 159,848 178
 improvements 48,772
 Construction 243,107
 Property plant equipment 3,567,231 3,041,068
 Accumulated depreciation. (1,386,082)
 $2,181,149 $1,756,211


financial performance
 presents operating performance revenue adjusted EBITDA. IFRS 15 1 April 2018 results 31 March 2019 IFRS 15 March 2018 18 comparison. financial performance IAS 18 years. “Alternative performance measures” page 231 reconciliations.
 performance organic growth merger acquisition activity foreign exchange rates. alternative measure. page 231.
 Revenue service revenue regional results Europe Rest World Other eliminations. 2019 results reflect foreign exchange rates €1:£0. 88 €1:INR 80. 93 €1:ZAR 15. 92 €1:TKL 6. 05 €1: EGP 20. 61.
 Service revenue adjusted EBITDA EBIT operating profit alternative performance measures. non-GAAP financial information not. page 231 reconciliations page 250.
adjusted results equity associates joint ventures excludes amortisation customer bases brand assets restructuring costs. 6 billion.
 IAS 18 growth
 Revenue 43,666 45,066  46,571.
 Service revenue 36,458 39,220  41,066.
 Other revenue 7,208   5,505
 Adjusted EBITDA 13,918 14,139 14,737.
 Depreciation amortisation (9,665)
 Adjusted EBIT 4,253 4,474  4,827.
 Share adjusted results associates joint
 Adjusted operating profit 3,905 4,183  5,216.
 Impairment loss (3,525)
 Restructuring costs
 Amortisation bases assets
 Other income expense
Operating (951) 4,299
 Non-operating expense
 Net financing costs (1,655) (389)
 Income tax (1,496)
 (4,109
 discontinued operations (3,535) (1,969)
 (7,644),788


. Financial Data
 consolidated data Part II Item 7 Financial Condition consolidated financial statements notes Part II 8 Annual Report 10-K.
 consolidated income 2019 2018 2017 balance sheets statements Part II 8. 2016 2015 balance sheets. historical results not indicative future.
 costs expenses include 4,840 million 4,150 million 3,720 million 3,220 million 2,970 million share-based compensation December 31, 2019 2018 2017 2016, 2015,.
 Consolidated Statements Income
 Revenue $70,697  $55,838 $40,653 $27,638 $17,928
 Total costs $46,711 $30,925 $20,450 $15
 Income operations $23,986 $24,913 $20,203 $12,427 $6,225
$24,812 $25,361 $20,594 $12,518 $6,194
 $18,485 $22,112 $15,934 $10,217 $3,688
 $18,485 $22,111 $15,920 $10,188 $3,669
 Earnings share
 $6. $7.
 $6.


Repurchase Shares
 November 2018 Board authorized repurchase $5. 0 billion Common Stock. open market private derivative contracts financial institutions law. no termination discontinued. Funding cash generation borrowings. June 30, 2019 purchased $2. 0 billion $0. 5 billion open market trading $1. 5 billion accelerated share repurchase arrangements.
 June 4, 2019 institutions $750 million Common Stock. initial delivery 3. 1 million shares 75% prepayment stock price June. total based average daily volume price Common Stock less discount. Final settlement November 20, 2019.
 January 31, 2019 agreements $760 million Common Stock. initial delivery 3. million shares 75% prepayment. total shares based average daily volume price discount.May 2019 receipt. 8 million additional shares-average share price $182. 32.
 Share repurchases
 fiscal year June 30 2019 acquired. 5 million shares $80. 5 million withheld share settlements tax restricted stock awards equity compensation plans. shares retained not Board-authorized repurchase program authorized equity compensation plan.
 Average price paid share excludes accelerated share repurchases.
 Shares Repurchased Average Price Paid Announced Plans Amount Repurchase Program
 balance June 24, 2018 $1,733,638
 Quarter September 23, 2018 $183.
 Board authorization $5. billion November 2018
 Quarter December 23, $145.
 Quarter March 31, 2019.
 April 1.
.1,143,258
 May June 30 $176.,500
 21,517 $181. 21,059


. NET DEFERRED GAIN
 NetLink Trust Info-communications Media Development Authority Next Generation Nationwide Broadband Network.
 Singtel sold infrastructure assets manholes buildings NLT. gain disposal deferred financial amortised. unamortised deferred gain released NLT sold.
 Singtel sold 100% interest NLT NetLink NBN Trust July 2017 cash 24. 8% interest. Net deferred gains S$1. 10 billion released. Singtel ceased interest 24. 8%.
 Singtel sold 100% interest NLT July 2017 cash 24. 8% interest. Net deferred gains S$1. 10 billion released. Singtel ceased units interest 24. 8% units.
 March April
 Unamortised deferred gain 446. 1,616.
Reclassification Note 23 (50. 9)
 deferred gain 395. 377 1,351.
 20. 68.
 Non-current 375. 1,282.
. 1,351.


. Income taxes
 differences deferred tax assets
 Company assesses likelihood deferred tax assets. considers valuation allowance. maintains full valuation allowance deferred tax assets net operating loss carryforwards foreign operations Canada Europe Asia Latin America Australia United States Section 382 Internal Revenue.
 December 31, 2019 net operating loss carry-forwards $994. 0 million. federal $97. 6 million European Mexican Canadian Asian operations $890. 1 million $3. 3 million $1. 8 million $1. 0 million. Section 382 limits ownership changes. utilization limited. $38. 4 million limited Section 382. carryforwards outside $896. 4 million not. carryforwards expire 2025 2036. Mexican Asian Canadian 2020 2029. European operations $744. 6 million $145.million expire 2020 2035.
 $2. 3 million transition tax 2017 deferred income non-US subsidiaries. unrecognized deferred tax liability.
 Deferred Tax Assets
 loss $255,269
 Tax credits 2,261
 Equity compensation 4,116
 Operating leases 32,289
 deferred tax assets 293,935 261,015
 Valuation allowance
 Deferred Tax Liabilities
 Depreciation amortization 34,884
 Accrued liabilities 107,711
 Right-of-use assets
 deferred tax liabilities 172,265
 deferred tax $2


funded plans
 Ended March
 assets $90,365 $84,718
 obligations 143,662 128,915
 Underfunded $(53,297,197)


Property Equipment
. Depreciation computed. December 31, 2019 2018 equipment
 Computer office equipment 3 - 5 years $143,942 $129,359
 Leasehold 33,346
 Furniture fixtures 7 years
 Building improvements 7 - 30 years 14,553
 Non-depreciable 1,785
 equipment 206,606 190,121
 accumulated depreciation (136,226,392
 $ 70,380 72,729


Markets Pricing
 three largest markets fresh frozen chicken food service medium-sized quick-serve small.
 table poultry processing customer market weekly capacity average size.
 big bird plants process large bird. sold as fresh bulk-packed chicken boneless breast meat chicken tenders whole wings boneless thigh meat restaurants food service processors negotiated spreads market prices. long-term contracts prices fluctuate prices. dark meat sold as frozen leg quarters fresh whole legs. sales at negotiated commodity prices. few long-term contracts product.
 October 31, 2019 Company process 7. 1 million head per week plants results affected by fluctuations commodity market prices for boneless breast meat chicken tenders wings leg quarters thigh meat.
Urner Barry independent reporting market news price quotations food protein industries poultry. Barry spot market prices for boneless breast meat chicken tenders leg quarters whole wings boneless thighs past five years published permission. prices equal market prices contracts offer negotiated discounts. market price benchmark customer driven
 chill-pack plants process medium sized birds package product trays specifications. trays weighed pre-priced for retail grocery. sells Sanderson Farms® brand. long-term contracts with customers. pricing prices negotiated formulas guidelines. contracts sale negotiated quantities prices. require specific quantity. October 31, 2019 process 6. 5 million head per week results affected by Urner Barry prices market benchmarks.
 pricing customer driven.discontinuation 2016 Georgia Dock index published Georgia Department of Agriculture chill-pack customers used index pricing formulas. contracts flat prices some index Express Markets.
 products sold chicken plant long-term contracts fixed prices spot commodity price chicken premium additional processing.
 Plant Location Market Capacity Per Week Industry Bird Size
 Laurel, Mississippi 650,000.
 Hammond Louisiana.
 Hazlehurst Mississippi.
 Collins Mississippi 1.
 Waco Texas.
 Palestine.
. Pauls North Carolina.
 McComb, Mississippi 1.
 Bryan, Texas.
 Moultrie Georgia.
 Kinston, North Carolina.
 Tyler, Texas.


Transactions stock options employees
 expected life awards. Company determines experience contractual terms vesting schedules exercise patterns pre forfeitures. estimates volatility historical volatility price data. bases risk-free interest rate-Scholes option implied yield. Treasury zero-coupon issues term life. paid cash dividends. uses expected dividend yield zero Black-Scholes option valuation model. uses historical data pre-vesting option forfeitures records share-based compensation awards. calculates compensation forfeitures experience.
 Average Exercise Price Per Share
 January 1, 2018 4,376,474.
.
 Exercised
 Cancelled expired (1,094,075).
 December 31, 2018 3,349,793.
 Cancelled expired
 December 31, 2019 3,349,793.


Annual Dividends Paid Proposed
 table euro annual dividends per ordinary share. One SAP ADR represents one SAP SE share. final dividend equal one SAP SE share euro. dollar exchange rate. tax credits German taxpayers. shares ADRs resident “Item 10. Additional Information Taxation.
 Translated euro. dollars. Depositary convert dividend payments.
 approval Annual General Meeting May 15, 2020.
 Translated euro. February 7, 2020 US$1. 0950 per €1. dividend differ exchange rate.
 profits SAP SE financial performance. dividends affected exchange rates 3. Information Exchange. timing future dividend future earnings capital needs factors proposed Executive Board Supervisory Board approved Annual General Meeting Shareholders.
strong financial performance Supervisory Board approved November 2019 plan enhanced capital return 2020. repurchase shares issue special dividend €1. 5 billion December 31, 2020.
 Dividend Ordinary Share
 Ended December 31, US
 2015. 15. 30
.
.
.
. 58. 73


. Remuneration directors
 Relinquished Independent Director. July 10, 2018.
 Independent Director. September 28, 2018.
 Additional Independent Director. December 18, 2018.
 Director. January 10, 2019.
 Chandrasekaran Chairman abstained receiving commission Company.
 no payment commission Non-Executive Directors full time employment.
 Remuneration Sitting Fees attending board committee meetings Total Amount
. Independent Directors
 Aman Mehta 4. 315. 319.
 Thyagarajan 3. 100. 103
 Clayton. 75.
 Sommer. 220 225
. 215. 222
 Pradeep Kumar Khosla. 150. 152.
. 50.
.
. 35.
 24. 1,210. 1,234
.Non-Executive Directors
 Chandrasekaran 3. 60.
 5. 70.
 9. 30.
 33. 60 1,210.
 Managerial Remuneration
 profits Section 198 Companies Act 2013) 40,434. 81


 $1. 2 billion 2018 increased. 5% $757. 3 million 2017. Solid Capacitor Film Electrolytic increased $196. 1 million $19. 7 million MSA $227. 0 million. acquisition TOKIN 2017 MSA sales.
 Solid Capacitors $133. 8 million TOKIN acquisition distributor $81. 7 million. Ceramic $6. million EMS $10. 2 million OEM EMEA APAC. offset $28. 0 million decrease OEM. impacted $6. 1 million currency exchange Euro.
 Film Electrolytic APAC EMEA $13. 7 million $3. 3 million increase OEM EMEA $4. 2 million EMS Americas EMEA APAC. offset decrease $1. 2 million OEM Americas APAC JPKO. impact $7. 6 million currency exchange Euro.
 2018 2017 net sales region

 Net Sales %
 APAC $479,987 40. $288,764.
 EMEA 277,898.
 Americas 259,105. 224,056 29.
 JPKO 183,191.
 1,200,181 757,338


ENERGY INDUSTRIES. FINANCIAL STATEMENTS share
 table restructuring charges
 Severance $3,041 $4,239 $7,280
 Facility relocation closure
 restructuring $5,038 $4,239 $9,277


. Net Loss Per Share
 December 31, 2019 2018 computed Neonode Inc. shares. Diluted loss Neonode. equivalents.
 0 350,000 stock warrants 11,000 shares stock options excluded diluted earnings share December 31, 2019 2018 anti-dilutive effect.
 December
 2018
 average shares 8,844 5,884
 Net loss Neonode Inc. $(5,298) $(3,060)
 Net loss per share basic diluted $(0.


ADVANCED ENERGY INDUSTRIES.
 FINANCIAL STATEMENTS
 2019 assets LumaSense acquisition. table summarizes values adjustments.
 adjusted values valuation. adjustments additional liabilities deferred taxes excess purchase price goodwill intangibles.
 Preliminary December 31, 2018 December 31, 2019
 Accounts receivable $ 7,167
 Inventories 9,372
 Property equipment 1,353
 Goodwill 48,032
 Intangible assets
 Deferred income tax assets 8,116
 Other assets
 assets 105,166
 Accounts payable 5,734
 Deferred income tax liabilities
 Other liabilities
 liabilities 20,482
 net assets $ 84,684


deferred tax assets liabilities from differences income expense. sources
 Company. realization future taxable income. income carryback opportunities tax planning strategies. differences. 2019 decreased valuation allowance by $12. 8 million reduction. foreign tax credits offset increase foreign net operating losses.
 2019 domestic federal tax net operating losses $65. 9 million 2020. deferred tax assets $1. 4 million 2020. against federal tax NOLs $1. 2 million allowance against deferred tax asset state NOLs. foreign tax NOLs $30. 4 million $28. 1 million utilized remainder expiring 17 years. provided $0. 7 million valuation allowance against deferred tax foreign NOLs.
 U. S. foreign tax credit carryforwards 2019 $40. 7 million.2 million valuation allowance. foreign tax credits 2022. carryforwards $1. 9 million $1. 3 million remainder seven years. 2 million valuation allowance tax benefit. domestic state tax credit carryforwards $15. 7 million. million 2020 2022.
 Deferred income tax assets
 operating loss carryforwards $23,030
 Tax credits 52,902 43
 Compensation 18,791
 Deferred revenue 25,599
 Research development expense deferral
 deferred income tax assets 124,387
 deferred tax assets 116,734 110,713
 liabilities
 Depreciation amortization,978)
 revenue
 liabilities
 deferred taxes 19,558
 tax noncurrent 51,611
Deferred noncurrent (32,053)
 19,558 (4,667


Income Tax Provision
 2019 $12. 6 million 39% pre-tax loss $6. 7 million 20% loss 2018.
 pre-tax income compensation reserves uncertain tax positions ASC 740-10.
 2018 partial release valuation allowance pre-tax income tax benefits compensation release uncertain tax positions ASC 740-10.
 Year December % Change
 tax benefit $(12,586 $(6,653) 89%
 pre-tax loss


2019 2018
 decrease tax expense pre-tax earnings international tax audits. offset stock compensation limitations deductions executive officers IRC section 162.
 evaluated Global Intangible Low-Taxed Income Foreign Derived Intangible Income Base Erosion Anti-abuse Tax provisions. net addition tax $1. 7 million. BEAT $2. 1 million offset GILTI $. 4) million. 2018 net benefit $(0. 3) million. 2019 tax expense $. 7) million final. tax return 2018.
 2017
 decrease tax rate tax expense decline pre-tax earnings federal tax rate 35% to 21% tax Cuts Jobs Act. expense Tax Act expense transition tax $21. 7 million. tax expense $26. 6 million remeasurement deferred tax assets reduction federal tax rate. higher tax expense.2018 Company transition tax reduced federal state provisional amount $6. 7 million. evaluated Global Intangible Low-Taxed Income Foreign Base Erosion Tax recorded detriment $0. 4 million benefit $. 7) million net benefit $. 3) million. December 31, 2018 tax expense $23. million write deferred tax assets. decrease tax rate expense decline pre-tax earnings decrease federal tax rate 35% to 21% tax Cuts Jobs Act. Tax Act expense transition tax $21. 7 million. tax expense $26. 6 million remeasurement deferred tax assets reduction federal tax rate. higher tax expense. 2018 transition tax reduced federal state provisional amount $6. 7 million. impact Global recorded detriment $0. 4 million benefit $.million GILTI FDII net benefit $. million. year December 31, 2018 Company tax expense $23. million write-off deferred tax assets.
 subject income taxes U. foreign jurisdictions. future foreign tax rate. under examination. foreign jurisdictions.
 Year Ended December 31,
 Provision (benefit) income tax $3,780. $25,878. $57,357
 tax rate 12. 8%. 9%.


VMware Pivotal Employee Stock Purchase Plans
 2007, VMware adopted Employee Stock Purchase Plan Section 423 Internal Revenue Code. June 25, 2019 amended ESPP 9. million shares Class A common stock. January 31, 2020 32. 3 million shares. VMware employees options purchase 85% fair market value. option period twelve months two six-month periods. exercised. fair market value lower expires new option. January 31, 2020 14. 3 million shares VMware Class A common stock.
 summarizes ESPP activity
 January 31, 2020 $95 million ESPP withholdings liability balance sheets purchase February 29, 2020.
 acquisition Pivotal granted options employees purchase Class A common stock 85% market value. ESPP activity.
January 2020 2019 2018
 $172
 A common stock 1,489 1,895
 $115. $84.


. Trade receivables contract assets
 Recognition measurement
 due settlement 30 days marketing fees one year trail commission. measured amortised cost.
 partners credit credit verification.
 credit losses
 iSelect records losses receivables assets. credit risk loss allowance loss.
 calculates provision credit loss experience. credit rating. Debts uncollectable written off. impairment allowance recognised uncollectable written against provision. recovered credited against profit loss.
 30 June 2019 credit losses not material.
 Contract assets
 recognised revenue comparison purchase support referral services purchase. invoices issued. reclassified trade receivables. receivable balance unconditional right receive cash.
 losses
 management judgement credit losses. Financial difficulties probability default delinquency credit ratings.

 2019 2018
 Trade receivables 6,165 4,952
 credit losses
 Contract assets 16,824 23,773
 22,989 28,710
 4,967 4,408
 1 30 days 1,024
 90
 6,165


 Adjusteda revenue £4,735m
 profit
 £135m
 market technology landscape. demands flexible-demand cloud networking solutions. Digital Global Services transformation programme infrastructure innovative solutions. 800 multinational companies institutions three industry verticals.
 revenue down 6% low margin divestments. £35m negative impact foreign exchange lower IP Exchange volumes equipment sales.
 operating costs down 8% labour costs restructuring. EBITDA £71m.
 Depreciation amortisation down 13% projects.
 Capital expenditure down 12% rationalisation light. free cash improved 151% £296m higher EBITDA lower capital working capital.
 order intake £3. 3bn down 15% customer behaviour shorter contract lengths usage-based terms.
 measures. flow interest pension deficit. transfer Northern Ireland Networks.
2019 15 2018 18
 31 March
 revenue 4,735 5,013
 operating costs 4,230 4,579
 EBITDA 505
 Depreciation amortisation 370 424
 operating profit 135
 Capital expenditure 245  278
 cash flow 296 118 178


Financial information associates joint ventures
 no significant associate venture Company. tables summarize recognized.
 foreign currency exchange difference recognized income.
 differences 2017 2018 2019 NT$45 million NT$(16) million NT$(9) million not included table.
 share associates equity
 years December
 2019
 Profit (loss) continuing operations $77,589 $(616,665) $115,329
 Post-tax profit discontinued operations 80,248
 Other income (loss 526,773 (82,871) 873,308
 Total income (loss $684,610 $(699,536) $988,637


Balance Sheet Cash Flows
 Equivalents Investments table summarizes equivalents investments
 decrease investments 2018 2019 driven repurchases common stock $20. 7 billion dividends $6. 0 billion divestitures $2. 2 billion debt $1. 1 billion capital expenditures $0. 9 billion. offset operating activities $15. 8 billion settlements $2. 0 billion.
 July 9, 2019 acquire Acacia Communications. $2. 6 billion. $0. 7 billion. transition tax earnings $6. 0 billion long-term debt $4. 2 billion commercial paper notes payable 12 months.
 investment portfolio. short-term. credit quality strong cash debt high quality investment-grade securities. strategic investments financing working capital repurchase stock dividends.
July 27, 28, 2018
. $11,750 $8,934
 debt 21,660 37,009
 equity securities
 $33,413 $46,548,135


bonus paid 2019 2018 2017 approved by compensation Committee Supervisory Board objectives.
 stock awards social contributions company car allowance pension contributions allowances deferred compensation. Bozotti 2019.
 bonus. bonus stock awards 86,782 59,435 vested shares.
. Chery granted 100,000 unvested Stock Awards. vesting conditional continued service.
 2019 total compensation 46% fixed to 54% variable 12% 88% 2018 44% 56% 2017.
 Salary $896,297 $927,820  $903,186
 $1,280,173 $3,214,578 $1,044,514
 Charges Non-cash Benefits(2) $5,618,382 $6,971,946 $1,828,814
 $7,794,852 $11,114,344 $3,776,514


FINANCIAL RESULTS
 three-month period August 31, 2019 average foreign exchange rate. 3222 USD/CDN.
 Fiscal 2018 IFRS 15 accounting policy Cogeco discontinued
. policies operations sections.
 Fiscal 2019 translated average foreign exchange rate. 3100 USD/CDN.
 months August Foreign exchange impact
 Revenue 583,673 566,184 3.
 Operating expenses 302,833 297,977.
 Management fees Cogeco. 5,230.
 Adjusted EBITDA 275,610 263,411 4.
 margin. 2%. 5%


. Share-based payments continued
 Incentive Plan
 2015, Group established Share Incentive Plan. eligible employees awarded free shares-cost options valued £3,600 each based share price admission Stock Exchange March 2015, three-year service period. SIP shareholders entitled dividends Vesting Period. no performance conditions vesting SIP shares. fair value awards £2. 72 Black-Scholes model. share-based payments spread evenly over Vesting Period.
 Share Incentive Plan.
 Sharesave scheme.
 Performance Share Plan.
 Deferred Annual Bonus Single Incentive Plan.
 share-based payment charge.
 apprenticeship levy.
.


table effective. March 31
 2018 recorded provisional tax benefit $3. 3 million Tax Cuts Jobs Act.
 accounting 2019 adjustment December 2018 $0. 2 million deferred tax liability indefinite intangibles. global intangible low-taxed income) inclusions.
 tax provision includes income taxes foreign jurisdictions minimal benefit.
 2019 tax provision foreign tax expense reversal reserves tax positions accounting Tax Act. differs operating losses deferred tax assets valuation state taxes.
 2018 reduction deferred rate tax liabilities Act. rate differs Tax Act operating losses deferred foreign state tax effects benefit $0. 4 million California Franchise Tax Board. differences.
 2017 tax provision state taxes taxes withheld foreign jurisdictions foreign tax expense.2017 tax provision operating losses deferred tax assets offset valuation allowance state taxes. differences.
 Income tax benefit Federal statutory rate $(2,718) $(3,654),019)
 state taxes
 foreign operations
 Indefinite life assets
 insurance
 valuation allowance 3,302 3,328 4
 liability unrecognized tax benefits
 Impact Tax Act,287)
 Meals entertainment
 intangible low-taxed income
 Total income tax expense $221,251)


contract acquisition expense $0. 9M $259. 9M Sales Marketing costs $8. 4M $239. 9M.
 31 March 2019 trade receivables $1. 2M $0. 9M impaired. impairment 31
 2019 2018
.
.
 Amounts written off.
 movements exchange rates.
 31.


Network advertising revenue from television airtime. recognized when broadcast. net agency commissions calculated gross billings. contracts short-term.
 distribution revenue payments from cable satellite video systems retransmission content. earned varies to month.
 fees usage/sales based average subscribers recognized revenue when usage. prices based contract terms no judgments estimates.
 Broadcast station revenue sale television airtime fixed fee ad sales third party. licensee airtime collects revenue from advertising.
 revenue recognized when. fees fixed or variable short-term. usage/salesbased recognized when usage. Transaction prices contract terms no judgments estimates.
 Disaggregation Revenues Broadcasting segment revenue by type
 advertising $22.
 Broadcast station.
 Network distribution.
.
 revenue from contracts customers.
 Other
Broadcasting 41. 45.


. ACCOUNTS RECEIVABLE REVENUES
 Amounts billed due accounts receivables
 payment short. Invoices issued at due
 30 days or up to 120 days.
 location. require payment prior revenue. Amounts
 received liabilities prepayments applied invoice within 30 days prepayment. Revenues 2019 include $0. 1 million unearned revenue December 31, 2018 2018 less than $0. 1 million
 January 1, 2018.
 accounts receivable credit risk. Revenues from customers percent totals.
 2019 11% 16% 3% 2%
 2018 17% 14% 1% 4%
 accounts receivable December 31, 2019 10% 8% 31%
 13% 14%


financial Hilli
 assets liabilities balance sheet 2019
 beneficiary Lessor VIE balances.
 assets 64,507 172,554
 Non-current assets 1,300,065 1,392,710
 liabilities (496,029) (278,728)
 Non-current liabilities (418,578) (842,786


Contract Balances
 revenue recognition invoicing. record receivable unearned. multi-year agreements invoice annually. record receivable multi-year-premises licenses right invoice.
 June 30, 2019 2018 long-term accounts receivable allowance doubtful accounts $2. 2 billion $1. 8 billion included.
 allowance doubtful accounts reflects losses. troubled accounts experience evidence.
 Activity allowance doubtful accounts
 June 30
 Balance $ 397 $ 361 $ 409
 costs
 Write-offs
 end period $ 434 $ 397


Contract costs Accounting Policies Note Topic 606 requires incremental costs contract amortized benefit. Partnership recognizes contract incremental commission costs Verizon Wireless personnel agents contracts.
 costs deferred incremental expected recovered. Costs contract amortized recorded commission expense transfer goods. amortized device upgrade cycle two to three years.
 amortization periods determined portfolio level similarities. Other expensed incurred. Deferred contract costs classified current non-current prepaid expenses assets. balances deferred contract costs December 31, 2019 2018
 December 2019 2018 Partnership recognized expense $3,126 $2,161 amortization deferred contract costs selling general administrative expenses statements income.
 Deferred costs assessed impairment. impairment charge recognized. no impairment charges recognized ended December 31, 2019 2018.
Assets
 Prepaid expenses 3,027 2,347
 $ 4,178


GreenSky. FINANCIAL STATEMENTS States Dollars
 details term loan
 principal balance repaid quarterly amortization. 25% December 31, 2024 balance due maturity. five years repayments $4,000.
 2019 2018 debt discount $613 $593 debt issuance costs $1,062
 $1,091 amortized interest expense.
 effective interest rates 5. 95%. 99%
.
 loan face $393,000 $397,000
 debt discount (3
 issuance (5
 $384,497 $386,822


. Taxes
 27. 0% 2019 2018.
 increased $138 million higher taxable income lower uncertain tax positions offset corporate income tax rate Alberta Q2 2019.
 DECEMBER 31
 Net earnings 3,253 2,973
 taxes 1,133
 before 4,386
 tax rate 27. 0%.
 (1,184) (1,071)
 Non-taxable gains investments
 Uncertain tax positions
 corporate tax rate
 Non-taxable equity losses
 unrecognized tax benefits
 Total taxes (1,133)
 Average tax rate.


Inventories
 valued lower cost value first-in first-out. impairment charges new cost basis reversed income.
 Raw materials $74. $26.
 Work process 413. 311.
 Finished goods 224. 138.
 inventories $711. $476.


Liquidity Capital Resources
 December 31, 2019 assets $27. 1 million liabilities $6. 1 million working capital $21. 0 million ratio 4. to 1. $11. 5 million ratio 3. 7 to 1 December 31, 2018. increase capital raised 2019.
 consolidated cash flows 2019 2018.
 operating activities used $1. 7 million 2019 $0. 8 million. cash 2018 net income non-cash expenses offset increased working capital revenues. 2019 increased working capital expenditures costs acquisition.
 $5. 7 million investing $10. 6 million 2019. acquisition CareSpeak communications. RMDY Health. software purchase.
 Financing activities $8. 7 million $22. 2 million 2019. cash 2018 equity raised uplisting Nasdaq option exercises. 2019 underwritten offering option exercises.
 operate business 12 months raise additional equity.

,660,796),555
 investing (10,582,086) (5,686,833)
 financing 22,181,528 8,685,739
 $9,938,646 $3,791,461


Net Financial Position December 31, 2019 $672 million $686 million 2018.
 debt $2,072 million $173 million long-term $1,899 million long-term. $1,354 million senior unsecured bonds 2017 $706 million European Investment Bank loans $12 million long-term.
 EIB Loans three credit facilities R&D. first 2010, €350 million loan. U. dollars $321 million partially Euros €100 million $55 million outstanding.
 second 2013, €350 million. U. dollars $471 million $118 million outstanding. third 2017 €500 million R&D. Euros $533 million outstanding December 31, 2019.
 Cash equivalents $2,597 $1,759
 Restricted cash
 Short-term deposits
 Marketable securities
resources 2,744 2,596,190
 Short-term debt overdrafts (173)
 Long-term
 debt (2,072)
 $672 $686


.
 accounts payable accrued expenses
 December 31, 2019
 Deferred rent $11,656
 Contingent 2,595
 Holdback 1,650
 liabilities
 $7,489 $13,306


Balance sheet
 Restated IFRS 16. note 1 24
 Goodwill intangible assets increased €31. billion €29. billion acquisitions. billion currency. US Dollar.
 cash equivalents increased. billion. cash short term debt.
 non-current liabilities increased. billion commercial paper issue bank borrowings.
 pension plan deficit lower. billion
 gains liabilities.
 Goodwill intangible assets 31,029 29,493
 non-current assets 17,347
 64,806
 20,978
 Non 29,942
 50,920
 Shareholders’ equity 13,192
 Non-controlling interest


. RESULTS
 Fiscal 2019 average foreign exchange rate. 3255 USD/CDN.
 2018 restated IFRS 15 change accounting policy Cogeco discontinued
 operations. consult policies operations sections.
 Fiscal 2019 translated average foreign exchange rate. 2773 USD/CDN.
 Years ended August 31, currency Foreign exchange impact
 Revenue 2,331,820 2,147,404.
 Operating Expenses 1,203,980 1,121,625.
 Management fees Cogeco.
 EBITDA 1,107,940 1,006,818.
 margin.


. Percentage change remuneration Group Chief Executive
 table 2019 increase salary benefits bonus Chief Executive average UK employee population.
 2018 percentage bonuses.
 2019 2018
 Salary Chief Executive 7. 7% 2. 7%
.
 Benefits 5. 2% 3.
 2.
 15. 5%.
 22. 2%. 6%


.
 revenue region financial performance
 Americas $89,944 $112,506 $122,893
 Japan 59,454 55,488
 Asia Pacific 35,689 36,897 33,189
 EMEA 27,541 27,859
 $212,628 $232,223 $235,429