tables present investment portfolio class excluding commercial December 31, 2019 2018. Commercial short term risk.
 Write-offs lease loan $16 million $47 million 2019. Provisions credit losses $6 million $2 million.
 average investment impaired leases loans Americas EMEA Asia Pacific $138 million $49 million $45 million. interest immaterial.
 2019 Americas EMEA Asia Pacific
 Lease receivables $ 3,419 $1,186 5,567
 Loan receivables 3,901
 Ending balance $10,144 $5,087 $3,359 $18,590
 impairment $10,032 $5,040 $3,326 $18,399
 $ 112 $ 47 $ 191
 Allowance credit losses
January 1 2019
 Lease $ 53 22 24 99
 Loan 105
 $ 158 $ 65 $ 56 $ 279
 Write-offs
 Recoveries
 balance December 31, 2019 $ 120 $ 54 36 210
 Lease $ 33 23 16 72
 Loan $ 88 31 $ 20 138
 allowance impairment $ 25 11
 $ 96 43


. INCOME TAXES
 calculate federal state taxes. federal tax reform) enacted December 22, 2017 provisions accounting. reduced. corporate tax rate 35% to 21% January 1 2018. remeasured deferred tax assets liabilities. expense $7. 1 million offset valuation allowance 2017. Tax Act provisions January 1 2018 2018 2019 earnings.
 Deferred tax asset
. valuation allowance deferred tax assets.
 Net operating loss carryforwards $7,672 $4,541
 Stock options warrants
 Property
 Intangible assets
 Capitalized expenses
 right-of-use lease assets
 deferred tax assets 8,687 5,398
 Valuation allowance
 asset


. Earnings Per Share
 computed ASC 260 average shares. Diluted adjusted dilutive effect stock options RSUs contingently issuable shares.
 table reconciles share amounts diluted earnings
 excludes. 3. 9 million options RSUs contingently issuable shares December 2019 2018 2017.
 Common stock December 31, 2019 2018 115,986,352 116,123,361.
 Weighted average shares
 116,175 116,057
 Dilutive effect stock options RSUs contingently issuable
 Diluted 118,571


AMERICAN TOWER CORPORATION FINANCIAL STATEMENTS
. EXPENSES
 property real estate taxes $198. $169.
 pass-through costs 74. 71.
 77. 93
 rent 75. 61
 withholdings 102. 90.
 construction costs 27. 41
 income tax 55. 57.
 expenses. 362.
 $958. $948.


tax effects differences Company deferred tax assets liabilities
 Company considers evidence recent earnings future taxable income carryback carryforward periods planning strategies.
 Deferred tax assets
 income shipments distributors $39.
 Inventory valuation 45.
 operating loss 94. 101.
 Capital loss 9.
 Share-based compensation 42.
 Income tax credits 376. 178.
 Property equipment 23.
 Accrued expenses 91.
 Intangible assets 1,608.
.
 deferred tax assets 2,303. 488.
 (332.
 1,971. 283.
 Deferred tax liabilities
 debt (279. (304
 Intangible assets (721.
.
 liabilities.
 deferred tax asset $971.(105.

 deferred tax $1,677. $100.
 (706.
 deferred tax $971.(105.


equipment programming franchise network.
 advertising marketing selling billing debts collection.
 office building fees losses disposals write property administrative expenses.
. OPERATING EXPENSES
 August
 dollars
 Salaries benefits outsourced services,041 317,118
 Service 661,214 615,267
 Customer 83,401 68,744
 114,324 120,496
 1,203,980


gains. RMB19,689 million 31 2019 non-IFRS adjustment items fair value gains increased valuations FinTech social media education disposal gains capital activities.
 Selling marketing expenses. decreased 12% to RMB21,396 million. due advertising promotion expenses improved operational efficiencies. decreased 6% from 8% 2018.
 administrative expenses. increased 29% to RMB53,446 million. driven R&D expenses staff costs. increased 14% from 13% 2018.
 Finance costs. increased 63% to RMB7,613 million. interest expenses higher indebtedness.
. RMB1,681 million 2019 RMB1,487 million 2018. due non-cash charges.
 Income tax expense. decreased 7% to RMB13,512 million. preferential tax treatments benefits.
 Profit equity holders.equity holders increased 19% RMB93,310 million. Non-IFRS profit 22% RMB94,351 million.
 Revenues 377,289 312,694
 (209,756
 Gross profit 167,533 142,120
 Interest income 6,314
 gains 19,689 16,714
 Selling marketing expenses (21,396)
 expenses (53,446)
 Operating profit 118,694 97,648
 Finance costs (7,613)
 Profit tax 109,400
 95,888 79,984
 Equity holders 93,310 78,719
 Non-controlling interests
 Non-IFRS profit 94,351


Non-Management Director Compensation 2019
 directors compensation 2019
 column represents fair value stock award ASC 718. amounts exclude forfeitures vesting. Note 10 financial statements Annual Report Form 10-K 2019.
 Dividend payments unvested restricted stock.
 Fees Stock Awards Option Awards Other Compensation Total
 Robert D. Rosenthal 95,000 40,000 25,900
 Chad M. Lindbloom
 Paul S. Pearlman 65,000 105
 Lawrence Reinhold


. Earnings per Share
 ASC 260 two-class method determines common stock dividends participation rights undistributed earnings. basic diluted earnings presented.
 undistributed earnings allocated equally Class A B common stock. holders participate dividends declared Board. December 31, 2019 2018 2017 declared paid quarterly dividends $0. 27, $0. 25 $0. 21 per share.
 Basic earnings per share computed net income weighted average shares. Shares issued reacquired weighted. Diluted earnings per share computed potentially dilutive shares.
 net income weighted average number shares diluted earnings
 December 31, 2019 2018 2017 options to purchase,133 293,898 265,866 outstanding not included diluted earnings.2019 2018 2017 338,748 420,524 463,800 stock options.
 Distributed earnings $43,207 $39,627 $32,709
 Undistributed 70,683 42,470
 Net income $113,890 $82,097 $114,141
 Class A common stock
 net income $76,294 $54,715 $75,413
 weighted average shares 26,763 26,354 25,685
.
 income $76,555 $54,937 $75,698
 stock options 279
 average shares 27,042 26,678 25,973
.
 Class B common stock
 net income $37,596 $27,382 $38,728
 shares 13,188
.
 income $37,335 $27,160 $38,443
.
years 2017 purchase 288,133 293,898 265,866


Stock-Based Compensation Expense Valuations Stock Awards
 estimated restricted stock-based awards service-based vesting market values discounted expected dividends.
 values PSUs measured market values discounted dividends. vesting conditions terms communicated employee attainment metrics. GAAP. awards met performance-based classification criteria ASC 718.
 estimated values stock options service-based vesting Black-Scholes-Merton option-pricing model. assumptions price volatility. Changes affect value estimates stock-based compensation expense. values estimated grant dates. weighted-average assumptions 2019 2018 2017.
 expected life exercise patterns post-vesting termination behavior risk-free interest rate. Treasury instruments annualized dividend yield share dividend volatility implied volatility publicly traded options.
estimated values PSOs 2018 $10 share Monte Carlo simulation risk-free interest. 14% term seven years volatility. 44% dividend yield. 49%.
 Ended May 31,
 life 4.
 interest. 7%.
 Volatility 24%
 Dividend yield. 7%. 5%.
-average value share $10. 77


Financial risk management
 Credit risk
 financial loss obligation. trade receivables loans cash deposits instruments.
 managed invoiced quarterly managed risks default.
 tenants assessed review process credit ratings financial information. deposits guarantees obtained. deposits collateral 31 December 2019 £3. 5 million (2018 £3. million.
 loss allowance credit losses judgement collectability receivables. losses days past due credit status historical evidence collection.
 ageing analysis trade receivables
 2019
 to three months.
 Three to six months.
.


Non-GAAP Financial Measures
 financial condition include non-GAAP financial measures. standard vary. not substitute financial performance U. S. GAAP. not future results unaffected.
 Management believes non-GAAP measures past future performance manufacturing operations amortization intangibles stock-based compensation restructuring distressed customer charges integration charges loss disposal subsidiaries settlement receivables impairment notes receivable goodwill impairment business interruption impairment securities restructuring loss discontinued operations gain sale other expenses tax deferred tax valuation allowance charges. uses non-GAAP measures operating decisions assess business performance employee performance incentive compensation.Management believes non-GAAP financial measures past future performance manufacturing operations excluding amortization stock compensation restructuring distressed customer charges acquisition integration charges loss disposal settlement impairment goodwill impairment business interruption impairment charges restructuring loss income discontinued operations gain sale other expenses tax deferred tax valuation charges. uses measures decisions business performance employee performance incentive. performance operations amortization stock compensation restructuring customer charges loss disposal settlement impairment goodwill impairment business interruption charges restructuring loss income (loss discontinued operations gain sale other expenses net tax deferred tax valuation allowance charges. uses decisions business performance employee performance incentive compensation.
determine tax effect items excluded from diluted earnings statutory tax treatment tax rate jurisdiction pre-tax realization tax benefit expected. jurisdictions tax benefit tax reduced or 0% tax rate applied.
 reporting operating income earnings return on invested capital earnings. items excluded balance sheet assets written off without recovery cash. restructuring make cash payments future. exclude stock-based compensation expense non outstanding shares dilution stockholders’ ownership interest. consider evaluating utility non-GAAP financial measures.
 tables reconciliation non-GAAP financial measures to comparable U. S. GAAP measures Consolidated Financial Statements
 Reconciliation. GAAP Financial Results Non-GAAP Measures
 Charges fiscal years 2019 2018 inventory assets charges distressed customers networking consumer wearables sectors.2017 inventory disengagement energy customer.
 insurance $2. 9 million $24. 9 million 2019 2018 business interruption asset impairment Hurricane Maria Cayey Puerto Rico.
 Johnson & Johnson Medical Devices.
 restructuring securities loss 2019. Note 16 Value Consolidated Financial Statements.
 year 2019 $13. 3 million income tax benefit November 30 2018. $142. 3 million estimate Tax Act.
 Year August
 Operating income. $701,356 $542,153
 Amortization intangibles
 Stock-based compensation 61,346
 Restructuring 25,914
 Distressed customer 6,235,710
 Business interruption impairment
 Acquisition integration 52,697
 Loss disposal subsidiaries
 Adjustments operating income 175,255
operating income-GAAP $876,611 $768,147 $667,003
 Jabil. $287,111 $86,330 $129,090
 Adjustments income 175,255 225,994 256,773
 impairment securities
 securities
 Adjustment (18,633 146,206
 earnings-GAAP $473,365 $458,530 $392,676
 earnings share.
-GAAP.
 shares. 158,647 175,044 185,838


. Trade payables
. 2018 government grants $0. 4 million $0. 9 million included payments account accruals. reclassified government grants.
. 2018 government grants $1. million payables.
 payables non settled 30 to 60-day terms.
 Directors carrying amount approximates fair value.
 $ million
 Trade payables 24. 12.
 Payments.
 taxes social security costs.
 payables.
 49. 43.
 Government grants1.
 84. 63
 Non-current
.
 Government.
.
.


Financing Cash Flow
 December 31, 2019
 Net cash increased due to 0. 875% Convertible Senior Notes lower credit facility payments borrowings decrease repurchase common stock. offset by purchase minority interest Pulse8 2019.
 December 31, 2018
 used cash financing driven higher repayments higher common stock repurchases. used proceeds sale investment Netsmart repay balances. borrowed funds 2018 purchase Practice Fusion Health Grid remaining minority interest.
 Net cash financing increased December 31, 2018 due higher borrowings Netsmart business acquisitions.
 December
 thousands 2019 2018
 Proceeds sale common stock $1,283 $1,568(1,283)
 Taxes net share settlement equity awards (7,286) (9,466 2,180
. Convertible Senior Notes 218,000
 issuance costs.
. (17,222
 payments (220,000 (713,751) (138,139) 493,751
 borrowings costs 279,241 430,843 325,001 (151,602)
 Repurchase common stock (111,460) (138,928) (12,077)
 financing obligations (14,685 (5,198),487
 Purchases subsidiary shares non-controlling (53,800 (7
 67,343 (442,415) 167,801 509,758 (610,216)
 149,432,784,648
 $67,343 $(292,983) $198,585 $360,326(491,568)


Staff costs
 payroll
 £m
 Wages salaries. 325.
 Social security 71. 58.
 Pension 21. 19.
 payroll costs. 403.


Teradyne’s revenues by
 customer.
 2019 2018 no customer 10% revenues. Taiwan Semiconductor Manufacturing Company. 13%. customer Teradyne’s Semiconductor Test segment. Huawei Technologies Co. 11% 4% revenues 2019 2018. 10% 13% 22%.
 Revenues
 China $514,327 $348,942 $260,451
 Taiwan 485,681 516,322,031
 United States 333,059 282,869
 Korea 239,504 163,224
 Europe 219,015 223,207
 Japan 175,322 158,281 169,093
 Thailand 87,503 59,184
 Singapore 84,111 108,618
 Malaysia 58,200 122,797
 Philippines 54,560 77,996 105,850
43,683 39,362
,294,965,802,606


Equity net earnings
 December 31, 2019 32. ownership Golar Partners 2% general partner interest 100% incentive distribution rights. decrease earnings performance fair value adjustment. offset impairment charge $149. 4 million 2018.
 net earnings affiliates equity Egyptian Company Gas Services. Avenir LNG. recognized negative goodwill $3. 8 million earnings bargain purchase Avenir. note 14 "Investment Affiliates financial statements details.
 2019 2018
 Share net/earnings Golar Partners (20,050 7,001 (386)
 Impairment (149,389
 other affiliates (2,515) 3,711 (6


Liability Warranty
 products include 90 days to five years defects. accrue warranty returns return rate cost. quality programs. complexity warranty incidences costly. estimates change failure rates usage rework costs. accruals unforeseen problems. additional warranty expense. liability warranty obligations $8. 4 million $8. 6 million December 31, 2019 2018. included accrued expenses Consolidated Balance Sheets. 2017 reduction warranty expense settlement defective component.
 summary warranty expense write-off activity December 31, 2019 2018 2017
 Balance $8,623 $9,724 $8,548
 cost expenses 4,569 7,392 6,951
 Deductions (4,798) (8,493)
 end $8,394 $8,623 $9,724


. Defined Benefit Pension Plan Postretirement Benefits
 Company sponsors non-contributory pension plans employees Philippines. benefits years service final salary. employees. December 31, 2019 Plans unfunded. no cash contributions 2020.
 benefit obligation net amount long liabilities Balance Sheets
 Balance $3,282 $3,642
 Service cost 405
 Interest cost 254
 Actuarial losses (108)
 Benefits paid (22)
 foreign currency translation
 $3,933
 Unfunded
 Net amount


RESEARCH DEVELOPMENT EXPENSES
 research expenses excluding increased 22% 2019 higher development activities. sales decreased 10% 11% 2018. Currency changes 4% increase R&D expenses-over-year.
 expenses new technology-demand.
 R&D. development programs customers research institutes. products access new technology expertise. costs prototypes experimental models charged cost sales.
 R&D operations Netherlands Belgium United States receive grants credits.
 Year ended December 31,
 million) 2018 2019 %
 Research development expenses 125. 150. 20%
 Capitalization. 21%
 grants credits.
 Amortization capitalized development expenses.
.
 Impairment capitalized development expenses.
 88. 110.


Stock options average contractual terms December 31, 2019 2018 2017
 December 31, 2019 unrecognized expense non stock unit awards options $45 million expected recognized 1. 8 years.
 2018.
 Vested expected vest 5.
.


.
 December 2016, 67% Inotera results. sold DRAM products supply agreements. funded 80 billion dollars $986 million 58 million common stock. Financial Statements Data Acquisition Inotera.
 2016
 Revenue $23,406 $30,391 $20,322 $12,399 $16,192
 Gross margin 10,702 17,891 8,436
 Operating income 7,376 14,994 5
 Net income 6,358 14,138 5,090
 6,313 14,135 5,089
 earnings) per share.
 Cash short-term investments 7,955 6,802 5,428
 assets 16,503 16,039
 Property equipment 28,240 23,672 19,431 14,686
assets 48,887 43,376
 liabilities 6,390
 debt 4,541 3,777
 Micron equity 35,881 32,294 18 12
 subsidiaries 889
 equity 36,770 33,164 19,470 12


. Income Taxes
 December 22, 2017 Tax Act enacted. tax law. Federal corporate income tax rate 35% to 21% one-time transition tax unrepatriated earnings foreign subsidiaries eliminating. taxes dividends foreign capitalizing R&D expenses 15 years changes foreign earnings.
 Tax Act low-taxed income foreign subsidiaries tax. corporation foreign subsidiaries. effective August 1, 2018 no impact tax benefit July 31, 2019.
. Company GILTI current expense deferred taxes. elected current period expense. finalized assessment transitional impacts Tax Act.
 December 2018 IRS regulations BEAT tax evaluating. tax provision.
. Treasury Department Internal Revenue Service standard-setting bodies Tax Act. Company guidance estimates information.
 legislative changes.Treasury regulations income tax adjustments. Company’s income before taxes July 31, 2019 2018 2017
 years July
 2018 2017
 Domestic $(1,778) $(13,501) $21,723
 International 14,230 5,225
 taxes $12,452 $(8,276) $28,526


Contractual Obligations
 liquidity. obligations as January 31, 2020
 principal interest payments Senior Notes. public debt offering issued August 21, 2017 $4. 0 billion.
 principal interest note Dell. $270 million note Dell January 21, 2014.
 principal senior unsecured term loan facility. repaid before October 2020. variable interest payments excluded.
 operating finance leases. facility space land. exclude minimum lease payments $361 million sublease income.
 future cash payments Transition Tax.
 January 31, 2020 $479 million uncertain tax benefits interest penalties. timing future payments uncertain. 12 months unrecognized tax benefits reduced $17 million.
 Less than 1 year 1-3 years 3-5 years More than 5 years
Senior $4,552 $1,372
 283 278
 Term 1,500
 Future Lease 1,202 144 268 178
 Purchase obligations 255 168
 Tax 545
 Asset Retirement Obligations
-Total 8,350 3,243 2,428 505 2,174
 Uncertain tax 479
 $8,829


table SG&A expenses. GAAP
 depreciation amortization.
 non-cash share-based compensation.
 new store marketing allowance $1,000 non freight costs Freshpet Fridge replacements. enhances marketing spend distribution network.
 fees secondary public offerings common stock.
 Chief Executive Officer’s separation agreement leadership transition costs
 securities lawsuits.
 Months December
 SG&A expenses $114,450 $94,876 $75,167 $62,586 $58,297
 Depreciation amortization 9,551
 Non-cash share-based compensation 5
 Launch expense 4,563 3,540 3,066 2,813
 Loss disposal equipment
 Secondary offering expenses
 Leadership transition expenses
Litigation expense
 $92,473 $76,698 $60,797 $48,651 $46,347
 Net Sales. 6%. 7%.


EBITDA Non-GAAP Reconciliation
 millions
 Non-GAAP Integration Transformation Costs Special Items.
 Net income $(5,269) (1,733)
 Income tax expense 503
 2,040 2,133
 Depreciation amortization expense 5,120
 Share-based compensation expenses 162
 Goodwill impairment 6,506 2,726
 EBITDA 8,771 8,602 8,248
 transaction expenses
 integration transformation
 special
 EBITDA $9,070 9,040 8,686
 Total revenue $22,401 23,443 24
 EBITDA Margin.
.


Consolidated Financial Statements Fiscal Years Ended 2019 2018 28, 2017
 Revolving Credit Facility Term Loan Agreement require earnings taxes amortization expense 3. 1. funded debt EBITDA 5. 875 2020 to 3. 75 2023 fourquarter. May 26, 2019 compliance financial covenants Loan Agreement.
 Net interest expense
 Interest operations $375. 6 million $164. 5 million $223. 7 million 2019 2018 2017.
 Long-term debt $385.
 Short-term debt.
 Interest income.
 Interest capitalized.
 $391.


. Net Income Per Share
 computed common stock. Diluted dilutive securities treasury stock method. dilutive securities include unvested restricted stock units stock options VMware’s stock. Securities excluded anti-dilutive. VMware two-class method diluted earnings same.
 table computations diluted net income
 January 31, 2020 February 1, 2019 2, 2018
 Net income VMware, Inc. $6,412  $1,650  $437
 Weighted-average shares A B 417,058 413,769  410,315
 other dilutive securities 8,177 7,362  10,572
 425,235 421,131 420,887
 income VMware. $15. 37 $3. 99 $1. 07
.stockholders Classes A B. $3.


. BALANCE
 property
 Depreciation 2017 $11. 8 million $10. 2 million. 3 million.
 Computer 3 5 $57,474 $52,055
 Furniture fixtures 7 years
 Leasehold improvements 2 6 9
 Renovation
-to-suit property 25 years 51,058
 86,378 119,451
 accumulated depreciation amortization
 $36,526 $77,254


Management Discussion Analysis
 Associates
.
 Singapore Financial Reporting Standards.
 constant exchange rates regional currencies Rupee Indonesian Rupiah Philippine Peso Thai Baht 2018.
 items exceptional.
 Singtel equity 21. 0% Intouch 40. 5%.
 Bharti Telecom equity 50. 1% Airtel 31 March 2019. loss interest charges borrowings.
 equity. 1% Airtel 2019. loss interest charges borrowings.
 Singtel ceased units NetLink Trust 2017 interest 24. 8% Trust. amortisation deferred gain S$20 million$32 million excluded fair value adjustments acquisition.
 results Singapore Post Limited.
 Financial Year ended 31 March
 constant currency
 Group share associates pre-tax profits.
post-tax profits
 Telkomsel 843 1,031.
 286 292 -1.
 Globe
 ordinary results 251 180 39. 45.
 exceptional items
 251 202 23. 29.
 Intouch
 operating results 101 106.
 amortisation intangibles 8.
 79 86 -7.
 Airtel (131) 101
 BTL 127. 140.
 (171) 83
 Regional associates 1,287  1,694.
 NetLink 48 72 -32.
 associates 47 57.
 post-tax profits 1,383 1,823.


.
 Group leases offices Amsterdam San Francisco Austin Sydney Manila Bengaluru Yokohama Ankara-cancellable leases nine years. leases terms escalation clauses renewal rights. rent $38. 6 million $23. 6 million $12. 2 million 2019 2018 2017.
 services-parties cloud data centers. non-cancellable expire two four years.
 minimum lease payments June 30 2019
 Leases Commitments
.
 2020 $38,790 $108,978 $147,768
 2021 2024 148,021 219,342,363
 $330,848 $328,320,168


Net Income per Share
 shares. Diluted treasury stock method dilutive options restricted units convertible notes.
 reconciles numerators denominators basic diluted computations income.
 Diluted shares note hedges 2018.
 June 30 2019 24 2018 25 2017
 Net income $2,191,430 $2,380,681 $1,697,763
 Basic shares 152,478 161,643
 dilutive securities
 stock plans
 Convertible notes 5,610
 Warrants
 Diluted shares 159,915 180,782
 Net income share-basic $14.
-diluted $13.


Convertible Notes amortized cost
 December 31, 2019 2018
 debt excluding derivative liability. carrying debt.
 determined unobservable inputs minimal market activity. level 3 hierarchy.
 Carrying
. 5% convertible notes due December 15, 2021
 Balance December 31, 2019
 $6,727 $8,864
 65,257 84,648
 $71,984 $93,512 $107,000
 December 31, 2018
 $5,879 $8,378
 57,031 79,433
 $62,910 $87,811 $107,000


. Reportable Segments Geographic Information Major Customers
 segments components enterprise financial information evaluated performance resources. Company internal reporting system financial data. Net sales attributed region product. services manufacturing processes customers order fulfillment processes interchangeable. performance operating income (loss. net sales administrative expenses excludes corporate expenses. $13. 5 million-time employee bonus overseas Tax Reform. not allocated. Inter-segment transactions recorded arm’s length. accounting policies same Company.
 three reportable segments 2019 2018 2017
 Total assets
 AMER $751,990 $645,791
 APAC 958,744 937,510
 EMEA 209,541 193,797
 Corporate 80,608
 $2,000,883 $1,932,642


spend pay
 table shows FY19 FY18 expenditure employee costs distributions shareholders.
 dividends
 expenditure wages salaries social security pension share-based payments note 10 Financial Statements
 Shareholder distributions. 10%
 employee 370. 2%


6. FINANCIAL DATA
 data Statements. future Statements Item 7 Discussion Analysis Financial Condition Results Operations.
 December 1, 2018 adopted Financial Accounting Standards Update. 2014-09 Revenue Contracts Topic 606 retrospective. Prior information restated.
 November 29, 2019 working capital deficit $2. 25 billion term loan April 2020 $900 million. 75% senior notes February 1, 2020. refinance Term Loan Notes.
 fiscal 52- 53-week ends November 30. 2016 53-week.
 Revenue $11,171,297 $9,030,008 $7,301,505 $5,854,430 $4,795,511
 Gross profit $9,498,577 $7,835,009 $6,291,014,034,522 $4,051,194
taxes $3,204,741 $2,793,876,137,641
 $2,951,458,590,774,693,954,168,782
 share
.
.
,291,564
 diluted 491,572
 Cash investments $4,176,976 $3,228,962 $5,819,774 $4,761,300,988,084
 Working,696,013) $555,913 $3,720,356 $3,028 $2,608,336
 Total assets $20,762,400 $18,768,682 $14,535,556 $12,697
 $3,149,343
 $988,924 $4,124,800 $1,881,421
 Stockholders’ equity $10,530,155 $9,362,114 $8,459,869 $7,424

 22,634 21,357 17,973 15


Cash Flows
 table summarizes cash flow
 cash increased $224 million 2019. due capital advance payments $59 million Greek arbitration award integration restructuring costs. offset tax interest $60 million interest swaps.
 cash increased $242 million 2018. taxes integration restructuring costs swaps. offset $24 million 2016 acquisition Lockheed Martin.
 investing increased $179 million. due $178 million $96 million sale real estate $81 million 2016 acquisition. offset $94 million acquisition IMX purchases property lower proceeds promissory notes.
 investing increased $43 million. due $81 million 2016 acquisition IS&GS offset $40 million settlement promissory note.
 financing increased $2 million 2019. due debt payments higher stock repurchases offset $23 million tax indemnification issuances.
 increased $278 million 2018.increase $250 million $167 million open market $23 million cash tax indemnification. offset $150 million debt $14 million real estate.
 3 2020 December 28, 2018 29, 2017
 operating $992 $768 $526
 investing 65
 financing (709) (429)
 cash cash $348(53)


Auditor Service Fees
 Company PricewaterhouseCoopers LLP auditors audit financings regulatory reporting SOX tax services December 31, 2019 2018
 Audit fees annual quarterly 2019 2018 public offerings Class A voting shares
-related fees accounting consultations services related not.
 Tax fees tax compliance expatriate tax return planning advisory services.
 Other fees additional products services accountants.
 Fiscal 2019 2018
 Audit Fees 1,133 764
-Related Fees
 Tax Fees
 Other Fees
 1,136 766


 2019 satellite programs increased $8. 6 million 61%. government 46% 36%. commercial 5% 14%. FEI-NY recognized POC method. from non-space. Government/DOD customers increased $5. 2 million 29%. recorded FEI-NY FEI-Zyfer segments 46% 45% consolidated revenues. commercial industrial sales 8% revenues 19% 2018. $3. 9 million $7. 6 million. due ASU 2014-09 1.
 Fiscal years
 FEI-NY $38,096 $26,936 $11,160 41%
 FEI-Zyfer 12,235 15,272 (3,037 (20%)
 Intersegment sales (822) (2,801) 1,979 (71%)
 $49,509 $39,407 $10,102 26%


Benefit Taxes
. federal state foreign taxes. operations taxes
 Ended December 31,
 2018 2017
. $176. $138. $180.
 (50. (73.
 $126. $73. $106.


Deferred Taxes deferred tax liability
 Deferred taxes differences. realization income.
 future income-planning strategies.
 Consolidated NOL carryforwards December 31, 2019 $349. 5 million deferred tax assets $73. 4 million.
 NOL carryforwards 2017 $60. 7 million deferred assets $12. 8 million indefinitely. carryforwards $288. $60. expire 2026 2035.
 ETFL subsidiary NOL carryforwards December 31, 2019 $1. 0 million deferred tax assets $0. 2 million. expire 2021 2024.
 state NOL carryforwards December 2019 $758. 5 million deferred tax assets $16. 7 million. expire 2020 to 2039. NOL carryforwards $80. 3 million deferred tax asset $5.million valuation allowance.
 carryforwards expire 2020 to 2037. tax expense.
 Tax Act repeals tax 2017. AMT credit carryforwards $1. 5 million refundable income tax return.
 state tax credit carryforwards $7. million deferred tax assets $6. 1 million. expire 2020 2029.
 state tax carryforwards $1. 8 million $1. 5 million valuation allowance. carryforwards expire 2020 to 2024.
 Non-current deferred tax assets
 Reserve uncollectible accounts $1
 vacation pay deducted
 expenses deferred revenue
 Net operating loss carryforwards
 Pension postretirement obligations 80
 Share-based compensation
 Derivative instruments 5,868
 Financing costs
 Tax credit carryforwards
194,779 185,612
 (9,158
 deferred 188,099 176,454
 Goodwill intangibles (66,271) (82,992)
,138
 Property plant equipment (278,712) (267,154
,126
 taxes


. Revenue
 Disaggregation
 disaggregate revenue into similar products services. sales cycle contractual obligations customer requirements-to-market strategies differ economic risk profiles.
 table disaggregation
.
 2019 divestiture Service Provider Video Software Solutions). SPVSS $168 million $903 million 2019 2018.
 Infrastructure Platforms core networking technologies switching routing wireless data center data. hardware software build networks automate orchestrate integrate digitize data. shifting business to software subscriptions. hardware perpetual software distinct performance obligations revenue upfront transfer. Term software licenses multiple maintenance revenue. SaaS arrangements distinct performance obligation satisfied over time revenue.
 Applications networking data center platforms. products software licenses SaaS hardware. perpetual software distinct. Term software licenses maintenance revenue.SaaS arrangements performance obligation satisfied over time revenue recognized contract term.
 network cloud email security identity access management threat protection unified threat management products. hardware software licenses SaaS. Updates critical. performance obligation revenue recognized contract term. hardware software revenue recognized upfront transfer control. SaaS obligation satisfied over time.
 Products Service Provider Video Software Solutions cloud system management products. October 28, 2018 sale SPVSS. hardware software licenses. revenue recognized upfront transfer control.
 service support options technical advanced services. Technical satisfied over time revenue. Advanced services revenue delivered.
 sales arrangements customer purchase orders. Cash received 30 days. financing hardware software service. cash received over time.
 July 27, 2019 July 28, 2018 July 29, 2017
,191,322 $27,817
 Applications
 Security,152
 Products 281 1,168
 39,709 35,705
 Services,899,300
 $51,904 $49,330,005


table credit agreements
 deferred commitment fee.
 Company repaid $175. million long-term debt 2015 Agreement foreign subsidiaries.
 Ended December 31,
 daily utilization $87,800 $106,189 $268,775
 Interest expense $3,465
 interest rate.


Assets Liabilities Measured Fair Value
 table presents assets liabilities measured fair value
 carrying cash equivalents approximates fair value short maturity.
 non-financial assets liabilities recognized disclosed fair value December 31, 2019 31, 2018.
 Assets
 Cash equivalents
 Money market funds $256,915 $254,552
 Other current assets
 Indemnification - Sale of SSL $598 $2,410
 Liabilities
 Long term liabilities
 - Globalstar do Brasil S. $145 $184


segment changes.
 GTS profit margin increased. 34. 8 percent workforce actions public cloud. cost competitiveness accelerating AI automation Red Ansible platform. Pre-tax income $1,645 million decreased. 6 percent decline revenue profit workforce rebalancing. Pre-tax margin. 8 percent flat 2019 pre-tax margin structural workforce actions.
 31.
 Services gross profit $9,515 $10,035.
 margin 34. 8%.
 Pre-tax income $1,645 1,781.
.


. Equity
 stock compensation
 fiscal year August one-time cash-settled stock award vested November 30.
 Restricted stock units $53,766 $84,082 $42,122
 Employee stock purchase plan
 $61,346 $98,511 $48,544


 sources April 26, 2019 cash equivalents short-term investments operations commercial paper program credit facility.
 April 26, 2019 April 27, 2018 $3. 7 billion $4. 5 billion foreign subsidiaries U. S. dollar $0. 2 billion $0. 9 billion U. S. TCJA-time tax foreign earnings December 31, 2017 taxes. reviewed cash requirements foreign earnings indefinitely reinvested.
 liquidity requirements working capital business research development capital expenditure technologies debt stock repurchase dividends.
 objectives investment preservation principal liquidity. default risk securities time maturity-parties obligors. cash equivalents short-term investments liquid accessible. deterioration fair value equivalents April 26, 2019.
 investment portfolio exposed market risk. events. exposure sovereign non-sovereign borrowers.planning financing strategies cash. equivalents investments markets credit lines satisfy liquidity requirements working capital expenditures stock repurchases dividends obligations commitments. automatic shelf registration Commission. offer debt equity securities.
 26, 2019 27, 2018
 Cash equivalents $ 2,325 $ 2,941
 Short-term investments 1,574 2,450
 $ 3,899 $ 5,391


June 7, 2019 U. Court Appeals Altera Corp. v. Commissioner upheld. Treasury Department regulations cost-sharing expenses stock compensation economic activity. ruling reversed decision. Tax Court. November 12, 2019 denied rehearing. Company recorded income tax expense $5. 3 million fourth quarter 2019. plaintiff filed certiorari. Supreme Court February 10, 2020 Company developments.
 tax effects temporary differences deferred tax assets
 Company accounts deferred taxes ASC Topic 740. evaluated weighed. evidence. negative evidence losses high seasonal revenue competitive pressures challenging retail environment. Realization deferred tax taxable income future reversal temporary differences operating loss carryforwards tax credit carryforwards. deferred tax assets adjustment taxable income.
Company valuation allowance deferred tax assets. December $191. 7 million. tax $52. 9 million foreign deferred tax assets. realizability.
. federal loss carryforwards $316. 2 million 2032 California $57. 3 million 2032 other states $52. 1 million 2023. federal tax credit carryforwards $22. 6 million 2031 California $45. million Massachusetts $2. 9 million 2028
 Deferred tax assets
 Net operating losses credits $113,475 $61,494
 Fixed assets intangible 61,932 55,476
 Accruals reserves 75,133 53,818
 Stock-based compensation 8,615
 Inventory
 deferred tax assets 264,871 185,999
 (244,581
 20,290 4,877
tax
 Accruals reserves (15,525)
 (16,439
 $3,851 $4,317


Cash Flow Hedge Gains
 recognized gains exchange contracts cash flow hedges
 net derivative gains AOCI June 30 2019 earnings 12 months. gains reclassified earnings transactions 2019.
 Ended June 30
 Gains income tax $1 $11 $4 159 219 $ 328
 Gains reclassified revenue
 Excluded Effectiveness Assessment Ineffective Portion
 Losses income


table summarizes common stock granted vested
 December 31, 2019 $0. 2 million unrecognized compensation cost nonvested common stock. 4. 2 years.
 shares granted 16
 grant-date value stock $29. $28. $30.
 vested $320 $315 $334
 obligation $366 $1


unrecognized tax benefits penalties
 September 28, 2019 benefits $63. 9 million $43. 9 million tax rate. reassessed transition tax liability new guidance 2019. adjustments tax benefit $6. million recorded 2019. tax benefit long taxes. interest penalties income. September 28, 2019 interest penalties accrued $5. 8 million long-term taxes. September 29, 2018 accrued $4. 4 million interest penalties Other long-term liabilities.
 Fiscal year-end
 Balance $65,882 $47,566 $20,442
 Increase acquisitions
 Tax positions current year
 Additions 605 19,033 1,326
 Reductions
 prior year
 448
 Reductions
 Lapses statutes limitations
tax benefits,217)
 currency (2,114 1,588
 $58,111 $65,882 $47,566


. Directors Officers Governance
 officers Loral March 12 2020.
 remaining information 2020 proxy statement Annual Report Form 10‐K.
 Position
 Avi Katz 61 President General Counsel Secretary 2012. Senior Vice President.
 John Capogrossi 66 Vice President Chief Financial Officer Treasurer.
 Ravinder. Girgla 56 Vice President Controller. Deputy Controller. Assistant Controller.


AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
 deferred tax asset valuation allowance
 Company provides valuation allowances deferred tax assets. future taxable income deferred tax assets.
 Assets
 Operating lease liability $878.
 operating loss carryforwards 356. 264.
 asset retirement obligations 174.
 Stock-based compensation.
 Unearned revenue.
 Unrealized loss foreign currency.
.
 deductible.
 Liabilities
 Depreciation amortization.
 Right-of-use asset.
 Deferred rent.
.
.
 Valuation allowance.
 Net deferred tax liabilities(636.(378


Restructuring Activities
 December 31, 2019 Company incurred $41. 9 million restructuring $60. 3 million costs. restructuring Reinvent SEE strategy.
 restructuring program initiatives. three-year program approved December 2018. spend elimination stranded costs sale Diversey. completed end 2021.
 approved cumulative restructuring spend $840 to $885 million.
 cost excludes sale property equipment foreign currency impact.
 Remaining spend SEE strategy.
 anticipates $6. 0 million restructuring spend recent acquisitions $2. 3 million incurred December 31, 2019. remainder 2020. Note 5 "Discontinued Operations Divestitures Acquisitions Financial Statements information.
 Total Restructuring program range Spend Remaining Restructuring
headcount reorganization 355 370 (325) 30 45
 expenses 230 245 (196) 49
 585 615 (521)
 Capital expenditures 255 270 (239)
 cash $ 840 885


Income Taxes
 December 22, 2017 Cuts & Jobs Act” effective Company December 24. tax reform reduced. federal tax rate 35% to 21% one-time transition tax foreign subsidiaries created new taxes foreign earnings. impact taxes Accounting Standards Codification Income Taxes. SEC issued Staff Accounting Bulletin 118 provisional amounts. tax reform. Company recorded estimates 118. December 2018 quarter finalized accounting tax effects. reform. 118 aspects. future regulations. adjust amounts tax accounting ASC 740.
 one-time transition tax unrepatriated foreign earnings $883. 0 million fiscal year June 24, 2018. recorded adjustment $36. 6 million Financial Statements months September 23, 2018. finalized computation transition tax liability December 2018 quarter. final adjustment tax benefit $51.million recorded Financial Statements December 23, 2018. final transition tax $868. 4 million. based post-1986 earnings profits deferred. taxes. accrued deferred taxes. completed calculation-1986 E tax foreign subsidiaries. tax eight years.
 2019 GILTI. tax reform. taxes foreign earnings. calculated impact included effective tax rate. accounting policy 2018 deferred taxes recorded provisional tax benefit $48. 0 million Financial Statements. December 2018. adjustment tax expense $0. 4 million recorded Statements 2018. final tax benefit $47. 6 million.
 income before taxes
 30 2019 24 2018 25 2017
 States $(59,876) $128,190 $7,553
 Foreign 3,023,599 1,804,120
,446,571,151,789,673


.
 December 2019 $11. 6 million (2018 $5. 4 million. prior year $0. 1 million credit adjusting items. 7 million $1. 5 million $5. 2 million. effective tax rate 13. per cent 15. 4 per cent.
 Tax charge income
 tax.
 Foreign.
 underprovided previous years.
 income tax charge.
 Deferred tax
 Recognition deferred tax.
 Reversal temporary differences.
 Adjustments prior.
 deferred tax charge.
 statement 11.


Warranty Reserves
 reserves warranty costs recorded. return rates. reserves costs. warranty period 15 18 months. costs adjustments.
 reserve warranty costs 2019
 Beginning balance $40,220 $36,149 $15,949
 Additions sales 52,271 58,865 41,365
 Warranty costs (54,538) (51,935) (31,825)
 Accruals 21 14,314
 Adjustments foreign exchange (1,514) (3,038) (3,654)
 Ending balance $36,460 $40,220 $36,149


Lives Computer Software Assets Acquired
 gross carrying value December 2019
 Gross carrying value life
 Computer software $9.
 intangible assets
 Client relationships 19.
 Trade names.
 Non-compete agreements.
 21.
 gross carrying value $30.


three levels
 Level 1 Inputs Unadjusted prices in active markets identical assets liabilities accessible by Company
 Level 2 prices markets not active observable
 Level 3 Inputs Unobservable inputs assumptions Company market participants.
 Company’s financial assets liabilities cash accounts payable accrued expenses approximate fair value
 short maturity.
 Transactions related parties arm’s-length
. Representations transactions imply consummated terms equivalent
 arm’s-length.
 assets fair value measurement based lowest level input. table summary financial instruments measured at fair value as of December 31, 2019.
 Fair Value Measurement
 Carrying Value Level 1 2 3
 Marketable securities
 Derivative warrants liabilities


Proofpoint Inc. Financial Statements share amounts
 share purchase agreement unvested stock options stock units Meta Networks employees canceled exchanged. $184 pre-combination services. $12,918 post-combination services. subject service $12,918 stock-based compensation service.
 unvested shares exchanged $7,827 deferred cash consideration 72 shares common stock fair value $8,599. restricted cash balance sheet December 31, 2019. $7,596 stock $8,338 post-combination expense not included purchase price. subject forfeiture employment terminates value expensed compensation stock-based compensation three-year vesting period.
 Cost to Recreate Method acquired technology asset. cost time profit rate return.
 table fair values assets liabilities intangible assets goodwill
value
 assets $356
 Fixed assets
 technology 21,000
 Deferred tax
 liabilities (671)
 Goodwill 85,869
 $104,768


GasLog Ltd. Subsidiaries
 consolidated financial statements
 years December 31, 2017 2018 2019
 amounts U. S. Dollars except
. Earnings(losses) per share
 profit dividend Preference Shares average shares.
 Diluted EPS profit(loss adjusted dilutive shares.
 Group excluded 2,630,173 SARs,162 RSUs diluted EPS December 31, 2019 anti-dilutive 31, 2018: 555,453 SARs 0 RSUs 2017: 998,502 SARs 0 RSUs.
 December
 2017 2018 2019
 Basic earnings/(loss) per share
 15,506 47,683 (100,661
 Dividends Preference Shares
 Profit/(loss owners 5,442 37,620 (110,724)
shares 80,622,788 80,792,837 80,849,818
 earnings. 07. 47.
 earnings
 Profit 5,442 37,620 (110,724)
 80,622,788 80,792,837 80,849,818
 shares 643,342,185
 81,266,130 81,637,022 80,849,818
 earnings(loss share. 46.


. Quarterly Financial Data
 2018 recorded $2. 3 million $80. 8 million settlement antitrust claims. Tax Cuts Jobs Act 2017 enacted. deferred tax liabilities impacted results $35. million. fourth quarter tax benefit $8. million.
 Fiscal Year 2019
 Net sales $340,583 $356,040 $383,993 $280,572
 Gross profit 57,128 70,535 82,441 12
 income Cal-Maine Foods. 39 (19
 share
.
.
 Fiscal Year 2018
 Fourth
 Net sales $262,845 $361,172 $435,820 $443,095
 Gross profit 17,336 82,396 120,098
-Maine Foods.(15,993) (26,136) 96,294 71,767
 Net income per share
. 33. 54.
. 54.


FLNG
 revenues May 31, 2018 Hilli accepted commenced operations. generated $127. 6 million revenues services December 31, 2018.
 Vessel operating expenses.
 Project development expenses non-capitalized legal professional consultancy costs. increase engineering consultation design costs Gimi GTA project.
 Depreciation Hilli depreciation commenced second quarter 2018.
 gains gain oil derivative instrument. gain $26. 7 million unrealized fair value loss $10. 0 million oil increased price Brent Crude. 2017. unrealized fair value gain $15. 1 million.
 offset $1. 3 million write off conversion costs Gandria. wrote off $12. 7 million trading balance.
 Equity net losses net losses. 2018 Schlumberger OneLNG FLNG projects.activity reduced December 31, 2018 value investment $nil.
 2018 2017
 operating revenues 127,625
 Vessel operating expenses (26,317) 1,315,750%
 Voyage (1,363 1,026%
 Administrative expenses
 Project development expenses (16,526) 559%
 Depreciation amortization (28,193)
 operating gains 2,749
 Operating income 58,150 442%
 Equity net losses (2,047)


. Trade receivables
 rental goods services. non payments not quoted active market. collection expected year current. non-current.
 allowance expected credit losses estimate receivables not recoverable. 30 June 2019 recognised loss provision AASB 9 Financial Instruments. recognises loss allowance credit losses.
 assesses historical credit loss experience factors. 30 June 2018 recognised provision trade receivables investment properties risks recoverability.
 Trade receivables 3,770 3,054
 Allowance expected credit losses
 3,635
 Other receivables 4,223
,880
 19,738 15,152
 Non-current
 current non-current 19,856 15,753


Accounts Receivable Allowance Doubtful Accounts
 due. allowance doubtful accounts losses payments.
 payment levels experience. customer-specific. credit evaluations allowance.
 Uncollectible accounts removed charged against collection unsuccessful. activity December 31, 2019 2018 2017:
 2017
 Balance $4,421 $6,667 $2,813
 Provision charged expense 9,347 8,793 7,072
 Write-offs recoveries (9,219) (11,039) (6,516)
 Acquired allowance doubtful accounts 3,298
 Balance end year $4,549 $4,421 $6,667


purchase warrants
 2019 Brookfield Transaction Teekay held 15. 5 million unit warrants Altera 2017 1,755,000 warrants Series D Units 2016. 2019 Teekay sold Brookfield interests Altera Brookfield Transaction Warrants Series D Warrants.
 Changes fair value December 31, 2019 2018 Brookfield Transaction Warrants Series D Warrants
 December
 value 30,749
 acquisition/issuance
 Unrealized gain earnings
 loss (25,559
 Settlements (13,367
 end year 12,026


. SHAREHOLDERS’ EQUITY
 2017 offering 40,000,000 shares increased equity $103. million.
 2018 Annual General Meeting capital $1. million $3. 6 million.
 issued 5,260,968 shares proceeds $17. 9 million.
 Balance January 1 2017 180,000,000 101,969,666
 December 31, 180,000,000 141,969,666
 December 31, 2018 360,000,000 141,969,666
 December 31, 2019 147,230,634


income tax charged operations income
 Prior year balances deferred tax assets liabilities recast federal state taxes deferred tax
 Ended December 31,
 2019 2018
 Income tax
 operations $(10. $9. $26.
 Accumulated income (loss.


ANG revenues compressed natural gas.
 December 2019. Congress passed alternative fuel tax credit. retroactive 2018 extends 2020.
 extends $0. 50 per gallon fuel credit Alternative Fuel Vehicle Refueling Property Credit 30 percent$30,000 tax credit. Net revenue after 2019 $10. million.
 Bipartisan Budget Act 2018 AFTC revenue fuel collected second quarter 2018. Net revenue after rebates $2. 6 million.
 revenue by type
 Volume-related.
 Maintenance services.
 revenue contracts.
 incentives.
 Alternative fuel tax credit.
 revenue.
 Energy segment revenue $.


Revenue Market table revenues market
 ASC 606 January 1 2018 amounts prior 2018 adjusted distributor sales deferral revenue.
 Revenues distributors 52% 42% 34% net revenue years 2019 2018 2017.
 Connected home $152,674 $207,336 $288,610
 48% 54% 69%
 Infrastructure 85,369 82,388 71,779
 27% 21%
 Industrial multi-market 79,137 95,273 59,929
 25%
 revenue $317,180 $384,997 $420,318


 $156. 8 million loss $320. 7 million assets liabilities $3. 3 million non adjustments $167. 2 million. $21. 3 million accounts receivable sales $18. 5 million inventories $22. 9 million lease liabilities $40. 7 million increase accounts payable accrued liabilities rebates promotional activities $15. 1 million decrease prepaid expenses $4. million increase deferred revenue. increased 74 lower collections. $167. 2 million non-cash adjustments stock-based compensation $77. 7 million depreciation amortization $62. 8 million non-cash lease expense $19. 2 million.
 Net cash $156. 8 million $113. 2 million 2018 $134. 9 million increase loss $126. million assets liabilities.2 million income tax refund 2018 accounts receivable inventories $9. 1 million non-cash adjustments loss.
 Cash Flows
 $25. 8 million maturities sales $414. 7 million purchases $347. 6 million purchases $36. 5 million $2. 2 million holdback payments $2. 6 million.
 $17. 5 million maturities sales $443. 6 million purchases $353. 9 million purchases property equipment $52. 9 million $13. 6 million holdback payments $5. 6 million.
 businesses. additional funds.
 Flows Financing Activities
 $8. 4 million $18. 2 million taxes common stock $2. 7 million financing lease payments offset $13. 0 million stock options purchases 2015 Employee Purchase Plan.
 Ended December
cash
 Operating(156,832) $113,207,241
 Investing 25,761 17,496
 Financing
(139,477 $131,990 $40,158


R&D
 TCS Innovation Labs India. certified Pune Chennai Bengaluru Delhi Hyderabad Kolkata Mumbai.
 Expenditure R&D 2019
 Expenditure R&D Unconsolidated
. Capital
. Recurring 303 295 306 298
. Total R&D expenditure 305 295 308
. Innovation center expenditure 1,285 1,079 1,352
. R&D expenditure 1,590 1,374 1,660 1
. turnover. 3%.


Operations
 table revenue items statements
 Impact inflation product price changes revenue income 2019 2018 2017.
 Years
 Statements Operations
 Revenue 100%
 Cost revenue 43%
 Gross profit 57%
 Operating expenses
 Research development 120% 79%
 Selling general administrative 86%
 Loss operations (149)% (108)
 Interest expense
 Loss taxes (150)%
 Provision income taxes
 Net loss (151)%


Value Financial Instruments
 table summarizes financial assets liabilities fair value
 non-current
 accrued expenses
 April 26, 2019
 Fair Value Measurements Reporting Date
 1 2
 Cash $ 2,216
 Corporate bonds 1,353
. Treasury government debt securities 213
 Certificates deposit 117
 cash equivalents short-term investments $ 3,899 2,347 1,552
 Mutual funds $ 6
 $ 29
 Foreign currency exchange contracts assets $
 liabilities


Sales Marketing Expense
 increased $22. 6 million 2018 2017. due $20. million employee costs compensation 215 286. remaining increase $1. 8 million trade show advertising costs $0. 8 million office expenses. adoption ASC 606 commission expense.
 Ended December 31,
 2017
 Sales marketing $ 69,608 $ 46,998 22,610.
 revenue 47% 45%


Deferred income taxes reflect differences assets liabilities.
 evidence deferred tax assets. August 29, 2019 30, 2018 valuation allowance $277 million $228 million against deferred tax assets operating loss carryforwards Japan. Changes 2019 tax credits losses.
 Deferred tax assets
 Net operating loss tax credit carryforwards $1,045 $1,417
 Accrued salaries wages benefits
 Property plant equipment
 deferred tax assets 1,357 1,695
 Less valuation allowance
 1,080 1,467
 liabilities
 Product process technology
 plant equipment
 Net deferred tax assets $833 $1,019
 $837 $1,022
 $833 $1,019


income increased SEK 2. billion. excluding improved SEK 2. 4. billion reversal impairment trade receivables 2019. billion higher gross margin.
 6. 3% excluding restructuring charges.
 Restructuring charges SEK. billion.
 3% (4% Group net sales.
 49% ownership MediaKind.
 decreased –19% 51% divestment MediaKind. increased 14% growth iconectiv.
 declined 51% divestment MediaKind. offset lower restructuring charges.
 income
 impacted SEK. billion US SEC DOJ investigations refund social security costs. billion.
 billion wind-down ST-Ericsson legal structure.
 improved growth. Red Bee Media income improved. Media Solutions income 51% divestment capital gain.
 billion 2019 2018
 operating income.
Emerging Business costs.
 SEC DOJ
 settlement costs.
 ST-Ericsson wind-down.
 refund social security costs Sweden.


2021
 August 6 2018 performance three July 1 2018. target value.
 2018. 11 Annual Report Form 10-K.
 Performance Restricted Share Units Stock Options
 Mark J. Barrenechea $2,815,000 $1,407,500 $5,630,000
 Madhu Ranganathan $500,000 $250,000
 Muhi Majzoub $550,000 $275,000
 Gordon A. Davies $500,000 $250,000
 Simon Harrison $218,750 $109,375 $437,500


Return Invested Capital Economic Return. financial model business strategy ROIC goal 500 points over cost capital Return. focus Economic Return goal 5. 0% shareholder value cash revenue growth rate 12. 0%. ROIC Return non-GAAP financial measures.
 management goals decision making insight financial performance. long capital requirements. ROIC performance criteria compensation incentives Return performance.
 ROIC tax-effected operating income before restructuring divided invested capital five-quarter. equity plus debt less cash equivalents. financial performance.
 review calculation WACC annually. 9. 0% 2019 9. 5% 2018. ROIC WACC value shareholders. 2019 ROIC 13. 1% Economic Return 4. 1% cost capital 9. 0% 2018 ROIC 16. 1% Economic Return 6. 6% cost capital 9. 5%.
ROIC Economic Return operating income financial statements GAAP Exhibit 99. annual report Form 10-K.
 ROIC Economic Return periods
 Adjusted operating income $120. $118.
 Average invested capital 923. $735.
 After-tax ROIC 13.
.
 Economic Return.


CASH FLOW STATEMENT1
 Abridged. complete consolidated financial statements.
 million 2017/18 2018/19
 operating activities 766 796
 139 157
 905 953
 −292 46
 −89 −136
 −381 −90
 474
 50 21
 524  863
 −587 −1,122
 −74 −109
 −661 −1,231
 cash flows −137 −368
 Currency effects cash equivalents −30 17
 change −167 −351


. Cash equivalents
 majority cash bank deposits money market funds three months short-term liquidity requirements.
 Cash equivalents deposits short-term investments convertible cash insignificant risk value. Assets money market funds measured fair value gains losses net profit. equivalents measured amortised cost.
 level 1 classification.
 balances amortised cost approximates fair value.
 equivalents €1,381 million €1,449 countries repay third party liabilities.
 Cash bank hand 2,434 2,197
 Repurchase agreements bank deposits
 Money market 9,007 2,477
 equivalents position 13,637 4,674
 Bank overdrafts
 discontinued operations
 flows 13,605 5,394


Greenhouse gas emissions
 Companies Act 2006, Sophos Greenhouse Gas emissions. calculated 31 March 2019. Greenhouse Gas Protocol Corporate Standard UK conversion factor guidance.
 operations GHG electricity gas business travel vehicles. data capture direct information. estimates developed reporting. revised data.
 GHG reporting capabilities. intensity ratio ‘tonnes CO2 equivalent per million dollars strategic growth ambitions.
 environmentally friendly HQ
 commissioned greening study headquarters Abingdon Oxfordshire. environmental health wellbeing performance practice competitors.
 performance management. future improvement. best practice environmental sustainability growth aspirations objectives.
 standards environmental performance health wellbeing global technology headquarters.
 Year-ended 31 March 2019 March 2018 31 March 2017
 tCO2e
Combustion gas vehicles 220. 320. 251.
 Electricity consumption offices 4,487. 4,681.
 Business travel 3,260. 5,117. 4,510.
 7,969. 9,444.
 10. 12.


December 31, 2019 annual payments obligations
 finance lease obligations.
 interest rate swaps margins constant loan debt priced one LIBOR rate mandatory debt repayments no refinancing maturity.
 commitment fees revolving credit rating agencies fees.
 Payments
 2021-2022 2023-2024
 $1,554. $80. $184. $1,290.
 Interest debt 171. 54. 102
 processing maintenance commitments 103.
 lease payments 27.
.
 $1,861. $193. $346. $1,321.


. Income Taxes
 before
 April 26, 2019 27, 2018
 Domestic $ 678 589
 Foreign
 $ 1,268 1,199 621


Net Income Per Share computed Cubic by common shares including vested RSUs.
 income diluted EPS by common equivalent shares. shares dilutive RSUs. calculated average share price treasury stock method. RSUs performance-based vesting no common equivalent shares EPS until performance criteria. performance market-based vesting dilutive stock units calculated treasury stock method modified multiplier calculated end. multiplier RSUs performance market-based vesting Note 16.
 net loss Cubic common equivalent shares not included diluted EPS anti-dilutive.
 weighted-average shares net income per share
 Years Ended September 30,
 shares basic 30,495 27,229 27,106
 dilutive securities
 diluted 30,606 27,351 27,106
anti-dilutive securities


Property Plant Equipment
 lives buildings improvements rental property twenty-five years. furniture equipment three eight years. Depreciation operations $1. 5 million $1. 2 million 2019 2018.
 Company leases headquarters tenants. rent. 3 million. 4 million 2019 2018.
 Land $199
 Building improvements
 Rental property 2,749
 Software
 Furniture equipment 11,755
 Construction
 depreciation


Patents Intangible Assets
 Company owns licenses patents. costs maintaining expensed.
 Finjan Blue Patent Assignment Support Agreement IBM August 24, 2017. Finjan Blue acquired IBM patents security sector. patents amortized four-year term.
 May 15, 2018 Finjan Blue second agreement IBM 2018 Patent Assignment. acquired 56 IBM patents security sector. terms confidential. patents amortized five years.
 triggering events impairment change.
 intangible assets
 Amortization expense years December 31, 2019 2018 2017 approximately $2. 0 million $1. 8 million $0. 8 million.
 December Patents $26,069
 accumulated amortization
 Intangible assets net $3,552 $5,507


. PENSIONS
. pension cost represents contributions. charge income 2019 2018 2017 $2. 4 million $1. 9 million $1. 7 million.
 two plans closed cover employees. Benefits years service compensation. costs Projected Unit Credit Cost method. funded. assets fixed income equity funds. two plans closed. Benefits years service compensation. Projected Unit Credit Cost method. funded. fixed income equity funds.
 December 31 measurement date.
 benefit costs
 income administrative expenses operating expenses.
 estimated net loss amortized December 31, 2019 $0. 8 million (2018 $1. 4 million.
 Service cost 162
 Interest cost 1,740
 Expected return on assets (375) (926)
 Recognized actuarial loss 777
 Net periodic benefit cost 2,304 2,403 2,553


.
 Ended December31
 Domestic. $38,672 $6,971 $9,662
 Foreign 47,251 49,946 71,645
 $85,923 $56,917 $81,307


MARKET RISK
 risk loss interest rates foreign exchange financial instruments. exposed risks.
 variable rate debt swaps foreign exchange transactions manage risks. reviewed board stockholders’ meeting. treasury operations internal audit. hold issue derivative financial instruments.
 export sales U. S. dollars. dollar accounts US$626 million December 31, 2019. Japanese Yen,266 million Renminbi RMB¥710 million. dollar Japanese Renminbi accounts US$128 million,193 million RMB¥262 million.
 market risk exposures interest rate exchange rate movements foreign currency capital expenditures equipment purchased Europe Japan United States.
 table December 2019 market risk sensitive financial instruments.
 millions
 Deposits Non-Trading Purpose 62,320
Loans 12,015
 Bonds 38,781
-term Loans 33,902


origination delinquency write-off experience monitored credit quality indicators device receivables service plans. collection efforts based behavioral-scoring models.
 assess variables origination characteristics history payment patterns. accounts grouped risk collection strategy.
 Collection performance credit quality monitored aging. delinquent unpaid charges remaining due date.
 December 31, 2019 2018 balance aging receivables
 Unbilled $ 22,827 $ 24,282
 Billed
 1,286 1,465
 Past due
 receivables gross $ 24,349 $ 26,018


Transactions with Golar Power
 months 2019 2018 2017
 Debt guarantee compensation Golar Power debt guarantees.
 Balances due Golar Power Receivables unpaid management fees advisory administrative services. invoice. settled quarterly. Balances unsecured interest-free settled. December 2019 loaned $7. million Golar Power interest LIBOR plus 5. 0%. loan repaid December 2019.
 2018
 Management administrative services revenue 5,904 6,167 5,711
 Ship management fees 1,210 1,400
 Debt guarantee compensation 693 861 775
 Total 7,805 8,181 7,445


Stock repurchases
 March 15 2019 extended repurchase June 30, 2020 increased common stock $60 million.
 2018 2017
 January 1 $6,620 $34,892 $39,385
 Authorizations $60,000 $27,003
 Repurchases $(21,136)(55,275)(4,493)
 December 31, $45,484 $34,892


gains. RMB3,630 million fourth quarter 2019 non-IFRS adjustment fair value gains valuations social media FinTech.
 Selling marketing expenses. increased 17% RMB6,712 million 2019. driven marketing spending FinTech cloud services smart phone games digital content Supercell. expenses decreased 6% 2019 from 7% 2018.
 administrative expenses. increased 41% RMB16,002 million. due R&D expenses staff costs Supercell. increased 15% 13% 2018.
 Finance costs. increased 102% RMB2,767 million. driven interest expenses higher indebtedness.
/profit ventures. RMB1,328 million 2019 profit RMB16 million 2018. change due non-cash value changes investment portfolios.
 Income tax expense. increased 12% RMB2,137 million.
 Profit equity holders.Profit equity holders increased 52% RMB21,582 million fourth quarter 2019. Non-IFRS profit 29% RMB25,484 million.
 figures
 Revenues 105,767 84,896
 (59,659) (49,744
 Gross profit 46,108 35,152
 Interest income 1,580 1,350
 gains 3,630
 Selling marketing expenses (6,712)
 General administrative expenses
 Operating profit 28,604 17,288
 Finance costs (2,767
 ventures
 Profit income tax 24,509
 tax expense
 Profit 22,372 14,026
 Equity holders 21,582 14,229
 Non-controlling interests
 Non-IFRS profit 25,484


. Stocks
. Finished goods 2018 £2. million deferred costs reclassified prepayments note 1 details.
 no stock write-downs reversals prior.
 No stock carried fair value less costs sell.
 Work progress.
 Finished.
.


December 31, 2019 US$8. 3 billion senior notes debentures hedged debt derivatives.
 long-term debt reflects hedged exchange rate interest rate.
 IFRS 9 RCI accounted 100% debt derivatives dollar debt. 100% dollar senior notes debentures hedged.
 Borrowings long-term short-term securitization programs.
 millions
 dollar-denominated long-term debt US$ 8,300 6
 Hedged debt derivatives
.
.
 borrowings fixed rates
 $ 17,496 $ 15,320
 87. 2%. 3%
 average interest rate borrowings. 30%. 45%
 term maturity. 1 years 10. 7


. ACCOUNTS RECEIVABLE
 multinational semiconductor manufacturers. losses evaluations.
 receivable
 154,607 171,866
 <30 days 8,802 19,977
 31-60 days 2,258
 61-120 days 3,507 1,599
 >120 4,276
 173,450 199,535


 2013 Equity Incentive Plan shares 8,462
 Employee stock options 10,455
 2014 Stock Purchase Plan 10,085 5,365
 shares 29,002 27,382


 Company estimates employee share options Black-Scholes option-pricing model subjective estimates assumptions. estimates “Simplified Method. average vesting tranches contractual life grant.
 risk-free interest rate based treasury instrument consistent life share option. no public market ordinary shares determined volatility peer.
 volatility average historical volatility measures. uses expected dividend rate zero no history dividends ordinary shares. fair value shares based on closing market value grant date.
 estimated Black-Scholes option-pricing model weighted-average assumptions
 per share fair value options 2019 2018 2017 $16. 48 $11. 12 $8. 65 per share.
 Expected term years 6.
 Risk-free interest rate 2. 7%. 2%.
 Expected volatility 41. 5%. 8%.
dividend yield
 grant share $37. $26. $20.


Company sells products to distributors equipment manufacturers performs credit evaluations collateral letters credit. operations outside U. S. assembly test facilities Thailand sales support design centers foreign countries. Domestic operations for design development wafer fabrication production planning shipping commitments. Thailand assembly test facility reimbursed value added foreign sales offices receive compensation sales. sales profits assembly test foreign sales office operations. long assets property plant equipment amortization by area
 Sales to unaffiliated customers outside U. S. Asia Europe 80% 2019 85% 84% 2018 2017. Europe 23% 24%. Asia 52% 58%. sales China 22% 30% 32%. Taiwan 13% 11%. Sales other foreign country exceed 10% net sales three years.
Arrow Electronics largest distributor 10% sales no 10% 2019. 2018 2017 no 10%.
 United States $521. $393.
 Thailand 209. 215.
 countries 266. 159.
 long-lived assets $996. $767.


Trade Accounts Receivable
 Company’s accounts
 Included “Receivables Consolidated Balance Sheets.
 “Deferred charges.
 noncurrent trade accounts from contracts renewal provisions multi-year arrangements. contracts renewal revenue recognized up-front obligations payments received renewal. Renewals bi-annual annual two to five years. contracts multi-year three-year terms invoiced annually. Company records receivable revenue unconditional right to invoice receive payment.
 timing revenue recognition differs invoicing payment contracts significant financing component. consideration renewal variable future events. multi-year arrangements minimal difference consideration received cash selling price discounts driven by volume short duration insignificant interest. primary purpose invoicing terms simplified products not financing.
 December 31,
$375,136 $335,377
 26,496
 $401,632 $351,325


.
 2018/19 METRO IFRS 15 Contracts.
 categories
 2018/2019
 Store 22,585 22,487
 Germany 4,128 4,075
 Western Europe. 8,885
 2,406
 Eastern Europe. 5,986
 Asia 1,074
 Delivery 4,207 4,595
 Western Europe. 1,704 1,867
 257
 Eastern Europe. 1,059 1,205
 Asia
 26,792 27,082
 Germany 4,761 4,735
. 10,609,752
 Russia 2,815 2,662
 Eastern Europe. 6,952 7,191
 Asia 1,612


CAPITAL
 cash equivalents increased $93,628 June 30 2019 $31,440 2018. acquisition Ensenta higher repayment debt.
 cash
 increased 5%. debt dividends stock capital expenditures.
 Net income $271,885 $365,034
 Non-cash expenses 180,987 87,906
 receivables,777
 deferred revenue 23,656
 assets liabilities
 cash $431,128 $412,142


Receivables
 receivables losses receivables
 Includes deferred costs eliminated results.
 receivables reserved. percent December 31, 2019. percent 2018. decline write $64 million net releases $7 million lower asset balances. Receivables information.
 December 31
 Recorded investment $22,446 $31,182
 allowance credit losses 177
 Unallocated
 221
 Net receivables $22,224 $30,890


Benefit Cost
 table 2019 2018 2017
 September 1, 2018 adopted accounting standard Consolidated Statements. service cost. Prior periods reclassified.
 Service cost $1,437 $1,063 $1,068
 Interest cost 3,715 3,807 2,942
 long-term return assets (5,291) (5,954) (4,206
 actuarial loss 741 1,127 1,929
 Amortization service credit
 settlement loss 634 1,472
 benefit cost $1,192 $3,067


Forma
 unaudited information AutoGuide January 1 2018 MiR January 1 2017. results not indicative
 results December 31, 2019 $1. 2 million AutoGuide costs $0. 1 million non expense adjustment.
 2018 $1. 2 million AutoGuide costs. 4 million non-recurring expense.
 $2. 9 million MiR costs $0. 4 million MiR non-recurring expense adjustment.
 December 31, 2019 2018
 Revenues $2,303,737 $2,111,373
 Net income $464,602 $442,082
 per common share
.
.


2019 Performance Target Payout 0% to 200%, based Adjusted EBITDA Run Rate target 2018 to.
 Determined dividing.
 Linear interpolation EBITDA Rate performance threshold target maximum percentage award earned.
 Performance Level Adjusted EBITDA Run Payout % Target
 Maximum ≥ 2. 8% 200%
 Target. 100%
 Threshold. 50%
 Below Threshold < (2. 8)%


fair value option grant estimated Black-Scholes pricing model
 employee stock options $4. 63 $2. 58 per share 2019 2018.
 expected life determined method ASC 718. volatility historical data. estimate forfeitures forfeited options December 31, 2019.
 stock price volatility 92. 34%. 26%
 Risk-free interest rate. 09%. 73%
 life term. 14 years.
 dividends 0%


Changes Estimates Contracts
 cost-to-cost recognized contracts combination adjustment acquisition.
 impact diluted EPS Leidos stockholders calculated Company statutory tax rate.
 January 3, 2020 December 28, 2018 December 29, 2017
 Favorable impact $95 $167 $185
 Unfavorable impact (52) (62)
 favorable impact taxes $43 $105 $103
 Impact diluted EPS Leidos stockholders.


Reconciliation Bookings
 table reconciles bookings revenue GAAP
 deferred revenue gains losses hedging foreign currencies.
 December
 Bookings millions
 revenue $2,988. $2,660. $2,231. $1,847. $1,607.
 deferred 180. 163. 214. 165.
 refunds 233. 192. 170. 137.
.
 bookings $3,401. $3,011. $2,618. $2,155. $1,914.


calculation TCE. table reconciles revenues daily TCE
 commission expenses less charterhire expenses $nil $12. 4 million 2019 2018 2017 Golar Grand voyage expenses Hilli Episeyo $0. 5 million $1. 4 million $nil 2019 2018 2017.
 calculate vessel operating costs calendar days. exclude undergoing conversion.
 Years Ended December
 2017 2016
.
 Total operating revenues 448,750 430,604 143,537 80,257 102,674
 Liquefaction services revenue (218,096) (127,625)
 Vessel management fees (21,888) (24,209) (26,576)
 Net voyage charter revenues 208,766 278,770 116,961 66,032 90,127
Voyage commission expenses,381 (104,463) (48,933) (25,291) (23,434
 174,307 68,028,741
 off-hire
 TCE 44 43,700 14,900


reconciliation federal income tax rate Consolidated Statements 2019 2018
 tax rate 2019 lower U. Tax Cuts Jobs Act. Company reasserted undistributed earnings foreign subsidiaries $10. 5 million benefit. included tax dividends. reduction offset GILTI Reform. impact includes deduction foreign tax credits. period cost. tax rate 2018 higher expenses Tax Reform.
 $1. 9 million increase valuation allowance losses AMER EMEA offset expiration net operating losses.
 2018 $32. 9 million reduction allowance $9. 7 million. federal tax rate change 35% to 21% $21. million carryforward credits net operating losses repatriation undistributed foreign earnings $3. 6 million release. valuation allowance. income. offset by $1. 4 million increase foreign valuation allowances EMEA.
2017 Company recorded $14. million addition valuation allowance losses AMER EMEA.
 Federal statutory income tax rate 21. 24. 5 % 35.
 Foreign tax rate differences (21. (30
 Withholding tax dividends. 23
 differences.
 Excess tax benefits share-based compensation.
 low-taxed income 11.
 repatriation tax.
 Non-deductible compensation.
 Valuation allowances.
 changes.
.
 income tax rate 13. 8 % 87. 9 %.


2019 gross margin decreased 130 38. 7%. 0% 2018 price pressure increased unsaturation charges offset improved manufacturing efficiencies product mix currency effects. Unused capacity charges $65 million margin 70.
 2018 margin improved 80. 0%. 2% 2017 manufacturing efficiencies product mix offset price unfavorable currency. unused capacity charges negligible.
 Ended
 Cost sales $(5,860).
 Gross profit $3,696 $3.
 Gross margin revenues 38. 7% 40. 39. 2%


Trade payables
 Recognition measurement
 recorded future payments purchases period. unsecured paid 30 days. current liabilities unless due 12 months. recognised fair value measured amortised cost interest.
 values
 short-term carrying amount same fair value.
 Risk Exposure
 majority Australian dollars significant risks. note 15 financial risk management policies.
 2019 2018
 Trade payables 44,840 27,640
 capital expenditure
 expenses 2,848
 Other creditors 3,117
 Total payables 56,646 34,409


Goodwill intangible assets
 disclosure tables.
 Customer relationships amortised economic lives. balances Thermocoax £32. 6m. amortisation 14. 3 years.
 Brand names trademark assets amortised lives. Chromalox £114. 1m. Gestra £28. 4m. Thermocoax £13. 6m. periods 17. 5 12. 3 19.
 Manufacturing designs technology amortised lives. balances Chromalox £12. Gestra. Aflex. 5m. amortisation 12. 5 Chromalox. 3 Gestra 10 Aflex.
 Non-compete undertakings amortised lives. no material items.
 Customer relationships Brand names trademarks Manufacturing designs technology acquired intangibles
 1st January 2019.320. 6
 (3. (13
 54. 179. 53. 19. 306.
 34. 14. 7 60.
 31st December 2019 89. 193. 61. 23.
 Amortisation 1st January 2019 25. 21. 14. 15. 76.
.
 23. 20 13. 14. 72.
 7. 10. 5 26.
 31st December 2019 30. 30 19. 18. 99.
 31st December 2019 58. 163. 41. 4 267.


. PRINCIPAL ACCOUNTANT FEES SERVICES
 Deloitte LLP independent audited annual financial statements years 2018 2019.
 chart total amount billed accrued services 2018 2019 category service. fees principal accountant approved pre policies procedures.
 Audit Fees
 compensation services consolidated financial statements Company subsidiary companies quarterly financial information registration statements consents comfort letters services SEC regulatory filings
 fees 2018 $0. 2 million public offerings. 2019 $0. 2 million equity bond transactions.
 Tax
 No.
 Audit-Related Fees
.
 Other
.
 millions. Dollars
 Audit fees $1. $1
 Total fees.


2018 Acquisition
 Wombat Security Technologies.
 February 28, 2018 acquired shares Wombat Security Technologies. leader phishing simulation security training. PhishAlarm phishing campaigns visibility Proofpoint Nexus platform.
 customers leverage threat protection phishing simulation training.
 use real phishing attacks simulations investigate phishing quarantine emails lock accounts train simulated phishing attacks.
 expects savings corporate overhead costs. purchase price estimated fair value acquired assets goodwill recorded.
 Proofpoint, Inc. Consolidated Financial Statements share amounts
 Wombat Acquisition Date consideration transferred $225,366 cash $13,452.
 unvested stock options Wombat employees canceled paid price. fair value $1,580 unvested options pre-combination service.value unvested options $1,571 post-combination services expensed March 2018. merger 51 shares common stock deferred employees $5,458 not included purchase price. deferred shares subject forfeiture expensed stock compensation.
 values liabilities intangible assets goodwill
 Current assets $23,344
 Fixed assets 954
 Customer relationships 37,800
 Order backlog 6
 technology 35,200
 Deferred revenue
 tax liability
 Other liabilities
 Goodwill 162,865
 $238,818


GasLog. Subsidiaries
 consolidated financial statements
 2017 2018 2019
. Dollars
. Administrative Expenses
 Employee costs restructuring $3,975 Piraeus.
 December
 Employee costs 18,789 20,980 24,863
 Share-based compensation 4,565 5,216
 Other expenses 16,496 15,797 17,415
 39,850 41,993 47,385


lease payments
 commitments land buildings sale leaseback 2001. Leases 13 years rentals fixed 13 years.
 no contingent liabilities guarantees 31 March 2018 no material losses anticipated. insurance cover major risks property legal liabilities. group carries risks.
 31 March 2019 2018
 600
 2020 755 550
 2021 513
 2022
 2023
 2024
 3,557
 future lease payments 6,597


6. DIRECTORS SENIOR MANAGEMENT
.
 positions directors management. elected annually holds office until successor. Officers elected vote Board. directors. elected annually successor.
 biographical information. March 6, 2020 Andreas Ove Ugland director Vice Chairman Audit Committee Chairman passed. member Board Directors since 1997.
 Herbjørn Hansson M. B. Norwegian School Economics Business Administration Harvard Business School. 1974 Norwegian Shipowners’ Association. Chief Economist Research Manager INTERTANKO 70% tanker fleet. Chief Financial Officer Kosmos/Anders Jahre. 1989. founded Ugland Nordic Shipping specialized shuttle tankers. served Chairman Chief Executive Officer 1993 to 2001 sold Teekay Shipping Corporation $780. 0 million.Teekay Vice Chairman full-time September 1 2004. founder Chairman Chief Executive since 1995. member governing bodies shipping insurance banking manufacturing agencies associations. Norwegian English German French.
 Workman director November 2019. Hermitage Offshore Services. Class A Director December 2013. Chief Operating Officer Supervisory Board Stork Technical Services sale RBG Offshore Services STS 2011. 30 years experience offshore drilling management. exploration production service. North Sea. Imperial College London 1983 Masters Petroleum Engineering Drilling/Production Operations Engineer BP. Hamilton Brothers Oil Gas floating. 1993 Kerr McGee operations manager Gryphon FPSO moored. 1996. Atlantic Floating Production management contractor John Fredriksen Northern Producer Petroleum Banff FPF. 2003,.Workman Tuscan Energy Argyll Field. Chief Executive Officer STS.
 Richard. Vietor director July 2007. Paul Whiton Cherrington Professor Business Administration teaches regulation business international political economy. Professor 1984. Virginia Polytechnic Institute University Missouri. B. economics Union College 1967 M. history Hofstra University 1971 Ph. D. University Pittsburgh 1975.
 Alexander Hansson director November 2019. investor investments listed privately companies. son Chairman network shipping finance. operated shipping offices London Monaco. studied EBS Regents College.
 Kelly director June 2010. Time Inc. magazine publisher 1978. Foreign Editor Deputy Managing Editor 1996. managing editor four National awards. EMMA ABC News Series. 2006,. managing editor. 2,000 journalists. consultant Bloomberg Princeton Columbia Universities. member Audit Committee 2012.Chairman Audit Committee.
 Giaever Chief Financial Officer Secretary October 16 2017. 20 years experience shipping offshore corporate finance equity research. Fearnley Securities partner director Corporate Finance. 2006 2010,. senior advisor John Fredriksen. Shipping Analyst DNB Markets partner Inge Steensland gas maritime. BSc business economics.
 Herbjørn Hansson Chairman
 Workman
.
 Vice Chairman
 Giaever Chief Financial Officer


future lease payments finance leases January 31, 2020
 lease liabilities 2020 excluded $361 million.
 Finance Leases
 2021 $138
 2022
 2023
 2024
 2025
 future lease payments 1,134 68
 Imputed interest
 lease $855 $59


common shares not direct investment pension funds include shares. not total pension fund assets.
 funding policy contributions laws customs countries discretionary contributions. expect minimum contributions $42 million $26 million non. pension plans fiscal 2020. voluntary contributions.
 fiscal 2019 benefit payments future service
 paid
 Non.
 millions
 2020 82
 2021
 2022
 2023
 2024
 2025-2029


Sales Marketing Expense
 increased $18. 1 million 2019 2018. due $15. 5 million employee costs compensation headcount 286 345. remaining increase $1. 2 million trade advertising $1. million office expenses.
 Ended December 31,
 Sales marketing $ 87,731 $ 69,608 $ 18,123.
 revenue 44%


Restructuring charges incurred £386m 2016/17 leaver costs. cost transformation programme integration EE £23m BT Pension Scheme transition payments.
 EE integration costs EE restructuring leaver costs. 2016/17 £62m amortisation write-off IT assets EE BT infrastructure. EE activities combined restructuring programme.
 regulatory matters net charge £27m regulatory matters. compensation payments providers March 2017 findings. £31m revenue offset £4m operating costs.
 Pension equalisation costs £26m high court requirement pension benefits.
 Property rationalisation costs £36m rationalisation property portfolio reassessment lease-end obligations.
 Italian business investigation released £(55)m provisions settlement Italian business.
Interest expense retirement benefit obligation incurred £139m 2016/17 209m interest costs defined benefit pension obligations. note 20. Tax specific items credit £112m recognised specific items.
. acquisition warranty claims settlements Deutsche Telekom Orange warranty claims 2015 EE acquisition agreement. settlement specific item charge £225m.
. items
 31 March
 Revenue
 Italian business investigation
 regulatory matters
 Operating costs
 acquisition warranty claims
 Restructuring charges
 integration costs
 Property rationalisation costs
 Pension equalisation costs
 irrecoverable VAT
 Profit (loss disposal businesses
 Operating loss
 Net finance expense
 Interest expense retirement benefit obligation
 irrecoverable VAT
139 218 210
 tax 564 828 1,178
 credit (112) (154)
 re-measurement deferred tax
 (217)
 tax 452 741


2018
 sales $7. 94 billion 2018 increase 1%.
 Grocery & Snacks sales $3. 29 billion increase $78. 2 million 2% 2017. 2% excluding acquisitions. promotional intensity discontinuation lower-performing products inventory reductions distribution lower-margin. Price mix flat mix improvements pricing investments marketing. acquisition Angie's Artisan Treats contributed $68. 1 million. Frontera acquisition $8. 6 million Thanasi $66. 5 million. Frontera 2016 April 2017.
 Refrigerated & Frozen net sales $2. 75 billion increase $100. 3 million 4% 2017. 3% increase volume acquisitions. increase brand renovation innovation launches. Price/mix flat marketing. Sandwich Bros. contributed $21. 3 million sales. Frontera acquisition innovation contributed $4.million 2018 acquisition.
 International net sales $843. 5 million increase $27. 5 million 3% 2017. 3% decrease volume 3% increase foreign exchange rates 3% increase price/mix. volume decrease lower margin products promotional intensity. increase price/mix pricing trade productivity.
 Foodservice net sales 2018 $1. 05 billion decrease $23. 5 million 2% 2017. 11% decrease volume increase price/mix. decrease exiting non-core business discontinuation lower-performing businesses categories. increase price/mix favorable product customer mix inflation increases pricing value volume strategy.
 divested Spicetec JM Swank businesses. no net sales. net sales $71. 1 million.
 2018 Net Sales 2017
 Grocery Snacks $3,287.
 Refrigerated Frozen.
 International.
Foodservice 1,054. 1,078.
 Commercial 71.
 $7,938.


. Party Transactions
 management compensation
 directors management.
 Compensation
 Fiscal Year Ended June 30
.
 Short-term compensation benefits $3,835 $2,991 $2,860
 Post-employment benefits
 Share-based payments
 $21,088 $12,425 $28,990
 Board directors
 Cash remuneration $430 $362
 Share-based payments 1,772
 $2 $1,939


Defined Benefit Pension Plans
 funded status difference between fair value projected benefit obligation adjustment loss. overfunded asset underfunded liability. changes status reflected unrecognized pension items stockholders’ deficit. unamortized pension items recorded net tax.
 amortized actuarial gains losses over future working lifetime. corridor method greater ten percent projected benefit obligation value year end. gains losses exceed corridor no amortization.
 2017 pension plans transferred sale Diversey. Two international plans split between Diversey Sealed Air. tables show activity plans retained Sealed Air.
 net periodic benefit cost three years pension plans
 inventory 2019 2018 2017 not material.
 benefit cost
. included in cost.
. in selling administrative expenses.3. 5 5. 6
. benefit (4. 4). (6
 benefit cost. 5. 1.


deferred tax assets liabilities
 acquisitions. income goodwill.
 financial tax rates laws.
 Deferred tax assets
 Accrued employee benefits $ 11,409 $ 8,285
 loss contingencies 3,561
 Deferred compensation 3,071
 Intangible assets
 Inventory valuation
 Long-term contracts 6,995
 Prepaid expenses
 Retirement benefits 4,967
 Tax credit carryforwards
 Loss carryforwards 36,248
 deferred tax assets 110,039
 Valuation allowance (69
 deferred tax assets 40,941 10,628
 Debt obligation basis difference
 Deferred revenue (12,135
 Intangible assets (18,592
 Property plant equipment
 Unremitted earnings (977
(587)
 deferred tax liabilities,397 (8,604
 2,024


net sales EMEA 2019 2018
 flat 5% down $3. 6 million 2019. hardware declined 5% software services up 2% 7%.
 Lower networking solutions higher devices. Higher software.
 Higher cloud increased software referral fees. increase Insight services.
 EMEA
 Sales Mix 2019 2018 %Change
 Hardware $622,949 $653,499
 Software 753,729 736,509 2%
 Services 149,966 140,233 7%
 $1,526,644 $1,530,241


Environmental Performance key environmental indicators Reporting Appendix 27 Listing Rules. data covers Tencent’s office buildings data centres Mainland China. Emissions. Office Buildings
 emissions GHG electricity fossil.
 GHG inventory includes carbon methane nitrous oxide. 31 December 2019 carbon equivalent calculated Baseline Emission Factors Regional Power Grids IPCC Guidelines National Greenhouse Gas
 Diesel consumed backup power generators.
 Hazardous waste toner cartridge ink cartridge printing equipment. suppliers. Mainland China.
 Non-hazardous waste domestic non-hazardous waste. property management kitchen waste recycling vendors estimation Domestic Discharge Coefficients. Non-hazardous waste centralised disposal vendors buildings.
 lead-acid accumulators.lead-acid accumulators disposed recycling vendors.
 Non-hazardous waste servers hard drives. recycled vendors. centres.
 year 31 December
 GHG emissions 1 2) 113,501. 50 102,831.
 Direct GHG emissions 3,785. 86 2,554.
 Gasoline.
 Diesel.
 Natural gas 3,577. 74 2,352.
 Indirect GHG emissions 2) 109,715. 64 100,277. 43
 Purchased electricity.
 GHG emissions employee.
 emissions floor area.
 Hazardous waste.
.
 Non-hazardous waste 5,227. 4,566.
.


granted 100% market value stock. vest 3 to 5 years expire 10 years. Company recorded $32. $23. $18. 3 compensation expense options 2019 2018 2017 expenses.
 estimates value Black-Scholes option valuation model. stock volatility measured weighted historical daily price changes stock. term. risk-free rate based U. S. Treasury yield curve. weighted-average fair value options 2019 2018 2017 calculated assumptions
 fair value$ 68. 57. 75.
 Risk-free interest rate 2. 37.
 option life (years 5. 42.
 Expected volatility (%) 19. 22.
 Expected dividend yield. 58.


Financial risk management
 Credit risk
 cash equivalents trade receivables.
 security deposits
 Australian banks minimum ‘BBB+’. institutions.
 credit quality assessed external credit ratings counterparty default rates
 NEXTDC long rating Standard & Poor’s July 2019.
 CASH BANK
 398,999 417,982
 SECURITY DEPOSITS
 8 4


Acquisitions divestments
 2019 Ericsson negative cash flow SEK 1,815 (1,220) million. acquisitions not material.
 Kathrein October 2, 2019 acquired assets Kathrein antenna filter technologies 4,000 employees. strong R&D IPR portfolio. competence advanced radio network products. Kathrein negative impact SEK –0. 5 billion –1 percentage point Networks operating margin. preliminary.
 CSF August 20, 2019 acquired 100% shares CSF Holdings. US technology company 25 employees. growth messaging Toll-Free Number management.
 ST-Ericsson Ericsson ST Microelectronics 50/50 ownership. December 2019 Company remaining shares two entities SEK –0. 3 billion. Company owns 100% shares.
 information.balances preliminary
 adjustments capital tax decisions local authorities.
 Acquisition-related costs consolidated income statement.
 Acquisitions 2017–2019
 cash 1,957 1,314 62
 assets acquired
 Cash equivalents
 Property plant equipment
 Intangible assets 481
 Investments associates
 assets 1,357 254
 Provisions. post-employment benefits
 liabilities
 net assets 1,605 403
 Costs income
 Goodwill
 1,957 1,314
 Acquisition-related costs


income Transportation Solutions segment decreased $352 million 2019 2018.
 decreased lower volume unfavorable product mix price erosion offset lower material costs.
 millions
 Acquisition-related charges
 costs $ 17 $ 8
 amortization value adjustments
 Restructuring charges
 $ 175 $


BENEFIT OBLIGATION PLAN ASSETS PENSION BENEFIT PLANS
 vested benefit obligation defined-benefit pension plan actuarial value benefits separation retirement.
 projected benefit obligation 35%. 65% outside. December 28, 2019.
 fair value plan assets 55%. 45% outside.
 accumulated loss before tax 35%. 65% outside.
 Changes gains losses driven discount rate movement. corridor approach amortize gains losses. gains losses 10% amortized straight-line.
 2019 29,
 Changes projected benefit obligation
 $3,433 $3,842
 Service cost
 Interest cost
 Actuarial loss
 Currency exchange rate changes
 Plan curtailments
 settlements
 Changes fair value assets
 return
 Employer contributions
 Currency exchange rate changes
settlements
 2,654
 funded $1,630 $882
 Consolidated Balance Sheets
 liabilities $1,630 $1,126
 loss $1,730 $1,038


Unrecognized deferred tax assets
 volatile semi-conductor equipment industry. probable future taxable profit offset deductible differences.
 R&D credits Arizona. ASMI recognize credits prior years utilized. R&D activity credits benefit credits prior.
 Gross amount Tax effect
 Deductible temporary differences 20,642 4,842
 15,221
 Unrecognized deferred tax assets 35,863 20,063


 December 31, 2019 48,866,220 2,431,174. 49,318,898,496-end 2018. cancellation 5 million treasury shares July 950,000 repurchased 498,000 payments.
 January
 62,297,394
 6,157,241,496
,140,153 49,318,898
 Changes Cancellation 6,000,000
 buybacks 7,242,734 950,902
 421,479 498,224
 December 31
 56,297,394,297,394
 6,978,496 2,431,174
 49,318,898,866


CODM evaluates Adjusted Earnings Interest Taxes Depreciation Amortization measure performance. income taxes depreciation amortization stock-based compensation adjustments. adjustments.
 assets segment resources facilities
 long-lived assets outside United States.
 Ended February 28,
 Net income $18,398 $16,617
 Investment income (5,258)
 Interest expense 16,726
 Income tax (1,330,681
 Depreciation amortization 20,016
 Stock-based compensation 11,029,298
 Impairment loss equity loss 6,787
 Loss extinguishment debt 2,033
 Acquisition integration expenses
 Non-recurring legal expenses reversal litigation
 (11,020
 Gain legal Settlement (18,333
Restructuring
,339
 EBITDA,215 $52,382,368


Pension
 Managing Board members contributions BSAV € 5. 6 million. 4 Supervisory Board decision November 7. € 0. 02 million. pension commitments.
 cost € 5. 4 million.
 Contributions added pension accounts. credited annual interest January 1. interest rate 0. 90%.
 table contributions defined benefit obligations
 Managing Board dependents received emoluments Section 314. Commercial Code € 21. 09 million (2018 € 39. 9 million.
 defined obligation September 30, 2019 €175. 7 million (2018. 2 million. NOTE 17.
 Deferred compensation € 4,125,612 € 3,703,123 Joe Kaeser,494 Klaus Helmrich 60,995. Ralf. Thomas.
benefits Lisa Davis. unsecured obligation payout assets.
 pension commitments excluding deferred compensation
 Board September 30
 Joe Kaeser 1,234,800 1,210,440 14,299,267 12,970,960
. Roland Busch,233 5,121,226
 Lisa Davis 5,701,811,322,537
 Klaus Helmrich 6,473,904 5,714,522
 Janina Kugel 2,674,432 2,157,427
 Cedrik Neike 2,349,895 1,757,258
 Michael Sen 1,862,660 1,239,785
. Ralf. Thomas 6,184,498 5,235,121
 5,444,040 45,617,700 39,518,836


2019 Plan Compensation Committee set non-equity incentive target amounts compensation cap percentages weights plan NEOs. cap NEOs.
 Messrs Richard Robert Bruce Leeds participate compensation.
 Mr. Reinhold left Systemax Chief Executive Officer January 2019 2019 NEO Plan.
 Name Target$ Cap Net Sales Adjusted Operating Income Strategic Objectives Corporate Governance Business Unit/Individual Objectives
 Barry Litwin 1,113,750
 Thomas Clark 225,000 150
 Robert Dooley 615,000 150
 Eric Lerner 300,900 150
 Manoj Shetty 241,535 150


. Inventories
 grow flocks pullets breeders. flock June 1 2019. 4 million pullets breeders 36. million layers.
 Flocks amortization $105,536 $96,594
 Eggs 14,318
 Feed supplies 52,383
 $172,237 $168,644


 increase Semiconductor Test revenues $60. 2 million 4% 2018 2019 5G service revenue offset automotive analog test.
 increase Industrial Automation revenues $36. 6 million 14% demand collaborative robots. MiR acquisition April 2018.
 increase System Test revenues $71. 4 million 33% Storage Test. Defense/Aerospace test Production Board Test 5G demand.
 increase Wireless Test revenues $25. 3 million 19% higher demand millimeter wave cellular test wireless standards 5G lower connectivity test.
 Semiconductor Test $1,552.
 Industrial Automation.
 System Test.
 Wireless Test.
 Corporate Other.
 $2,295.


Net Revenue Gross Profit
 revenue decreased $26. 7 million to $149. 5 million December 31, 2019 $176. 2 million 2018. driven lower sales. gross profit due lower revenue product mix.
 profit percentage product mix selling prices manufacturing costs.
 December
 net revenue $149,495 $176,223
 47%
 Gross profit 167,685 208,774
 53%


 November 2018 acquired SmartRG. home platforms cloud services. business combination. included financial results statements. Subscriber Solutions Experience Network Solutions Services Support.
 Contingent liabilities $1. 2 million recognized SmartRG revenue EBIT purchase order milestones 2019. recognized gain $1. 2 million reversal second quarter 2019.
 escrow $2. 8 million capital settlements indemnity obligations. subject arbitration. December 2019 $1. 3 million. released final settlement fourth quarter 2020. remaining to $1. 5 million.
 recorded goodwill $3. 5 million excess purchase price fair value assets liabilities. assessed valuation procedures.
 March 19, 2018 acquired Sumitomo Electric Lightwave. North EPON business technology license OEM supply agreement Sumitomo Electric Industries.acquisition establishes ADTRAN North American leader EPON solutions adoption open scalable architectures. combination. financial results statements. Access Aggregation Subscriber Solutions Experience Network Solutions.
 bargain purchase gain $11. 3 million first quarter 2018 net taxes subject adjustments. $11. million difference fair-value assets cash paid. SEI leader EPON. Broadband Networks Division operated North American EPON business sales marketing. North EPON market Tier 1 cable operators. divested EPON assets relationship ADTRAN. transfer relationships low expenses technology license OEM supply agreement resulted gain. assessed assets liabilities valuation procedures appropriate. gain included bargain purchase 2018 Consolidated Statements Income.
allocation purchase price SmartRG
 Sumitomo SmartRG
 Tangible assets $1,006 $8,594
 Intangible assets 22,100 9,960
 Goodwill 3,476
 assets acquired 23,106
 Liabilities
 Assumed (3,978)
 net assets 19,128 16,029
 Gain bargain purchase net tax (11,322)
 purchase price $7,806 $16,029


Compensation
 2018 2017
 options restricted stock awards units purchases. 2019 $31. 6 million. 2 million options $29. 1 million restricted stock awards $2. 3 million purchases. 2018 $31. million. 4 million options $28. million restricted stock awards units $2. 6 million purchases. increase higher restricted stock unit grants.
 Research development costs $14,643 $13,168
 Selling administrative 16,911
 compensation expense $31,554


origination delinquency write-off experience monitored credit quality indicators device payment plan receivables service plans. collection efforts based behavioral-scoring models.
 assess variables origination characteristics history payment patterns. accounts grouped risk category collection strategy.
 Collection performance credit quality monitored aging. delinquent unpaid charges remaining due date.
 December 31, 2019 2018 balance aging receivables
 Unbilled $ 12,403 $ 11,485
 Billed
 Past due
 receivables gross $ 13,480 $ 12,335


Audit Fees annual audit Financial statutory audit subsidiaries consultations accounting. comfort letters audits strategic transactions.
-related employee benefit plans due diligence acquisitions agreed procedures.
 Tax Fees tax compliance returns consultations expatriate tax compliance.
 2018
 Audit Fees
 Statutory Audit Certification Financial Statements 4,105,000 95. 2% 4,556,500 96. 3%
 Audit-Related Fees 209,005 4. 8% 173,934 3. 7%
 Non-audit Fees
 4,314,005. 0% 4,730,434


Debt EBITDA
 EBITDA Level 3 acquisition colocation data center sale January 1.
 Gross Debt $35,039 36,352 38,053
 equivalents
 Net debt $33,349 35,864
 EBITDA items $9,070 9,040
 Debt Adjusted EBITDA.


Contract Assets Liabilities
 rights consideration for services not billed reporting. rights unconditional performance obligations billing occurs arrears within month services rendered.
 expects one year or less.
 liabilities to advance consideration unconditional from customers revenue recognized obligation transferred customer.
 contract assets liabilities from contracts.
 increase contract assets balance due to $203 million revenue not billed offset by $193 million assets 2018 invoiced transferred trade receivables.
 decrease liability balance due to $326 million advance consideration offset by $337 million revenue December 31, 2018.
 Year December
 assets $218 $210
 liabilities $346 $359


revenues operating results affected by theatrical releases television syndication agreements amortization policy first 12 months. timing. theaters attendance school holidays national holidays festivals. dates cricket events production schedules. holidays Diwali Eid Christmas July December Premier League cricket season April May. Tamil New Year January March releases.
 quarterly results vary not indicative. revenue operating results seasonal releases catalogue revenues.
 June 30 September December March 31, 2019
 Revenue 60,212 63,425 76,744 69,745
 financing 6,410 8,837 9,917 9,303
 Gross Revenue 66,622 72,262 86,661 79,048


Intangible Assets
 technologies relationships trade names patents user lists amortization. Consolidated Balance Sheet. amortized over life two to ten years. $33. 5 million 2019 $36. million 2018 $72. 2 million 2017.
 amortization January 31
 Included. foreign currency translation.
 Developed technologies $670. $578.
 Customer relationships trade names patents user lists 533. 372
 intangible assets 1,203. 951.
 accumulated amortization.
 $280. $55.


 2019 increased $444. 8 million. 7 percent sales from $382. 3 million. 2018. Excluding surcharge revenue gross margin 22. 9 percent 21. 3 percent 2018. improved product mix capacity gains operating cost reductions. $11. 4 million benefit insurance recovery third quarter.
 surcharge mechanism raw material costs. surcharge profit margin. dilutive impact margin. removing impact surcharge.-GAAP Financial Measures”.
 Net sales $2,380. $2,157.
 surcharge revenue.
 sales excluding surcharge $1,942. $1.
 profit $444.
 margin 18. 7%.
 excluding surcharge revenue 22. 9%. 3%


. Operating costs
 wireless devices equipment network content payments carriers.
 Labour costs wages salaries taxes benefits post-employment outsourcing
 marketing advertising sales debt taxes IT fees rent
 costs declined. 5% 2019 reduced Bell Media. 5% Bell Wireless Wireline stable. IFRS 16 2019.
 Bell Wireless (5,300).
 Bell Wireline (6,942).
 Bell Media (2,367) (2,428.
 Inter-segment eliminations.
 operating costs (13,858) (13,933).


income taxes
 U. S. multinational company. jurisdictions. international earnings subsidiaries Ireland Singapore. higher tax favorably lower. change earnings difficult predict.
 increase effective tax rate 2019 due one-time benefits 2017 Tax Act. increases tax expense valuation allowance capital losses tax benefit.
 Fiscal Year
 Income operations before income taxes $108  $437
 Provision income taxes $92 $(690)
 Effective tax rate income operations 85%