. increased 25% RMB105. 8 billion fourth quarter 2019. revenues
 increased 20% RMB52,308 million. Online games 25% RMB30,286 million. smart phone games Peacekeeper Elite PUBG Mobile Supercell lower PC games. Social networks revenues increased 13% RMB22,022 million. digital content services. smart phone games RMB26,035 million PC client games RMB10,359 million.
 FinTech Business Services increased 39% RMB29,920 million. commercial payment cloud services.
 Online Advertising increased 19% RMB20,225 million. Social advertising increased 37% RMB16,274 million. Weixin Moments mobile advertising network. Media advertising revenues decreased 24% RMB3,951 million. lower revenues uncertain schedules fewer telecasts sports.
Three months
 31 December 2019 2018
 %
 millions
 VAS 52,308 50% 43,651
 FinTech Business Services 29,920
 Online Advertising 20,225 19% 17,033
 Others 3,314 3%
 revenues 105,767 100%


ADJUSTED EARNINGS EPS
 standardized meaning under IFRS. unlikely comparable measures other issuers.
 adjusted net earnings common shareholders before severance acquisition costs-to-market losses investments early debt redemption costs charges tax NCI. adjusted EPS per BCE common share.
 assess performance without severance acquisition costs losses early debt redemption costs charges tax NCI. exclude items affect comparability distort. non-recurring
 comparable IFRS measures net earnings common shareholders EPS.
 reconciliation of net earnings EPS adjusted net earnings consolidated per BCE common share.
 Net earnings shareholders 3,040. 2,785.
 Severance, acquisition costs 83.100. 11
 losses derivatives compensation plans. 58.
 losses investments 44. 47.
 Early debt redemption costs 13.
 74. 146.
 Adjusted net earnings 3,153.,151.


Disaggregation Revenue
 services downloads partners. table disaggregation revenue financial performance
 Revenue Contracts Customers
 Twelve months December 31,
 Services $59,545 $64,476
 Software 3,788 5,073
 revenue $63,333 $69,549


benefit expense post plans includes
 report service costs Pension Plan expenses statements years December 2019 2018 2017. service cost allocated assets construction. remaining reported. one-time charge 2019 $6 million 2018 $15 million special termination benefit enhancements employees voluntary retirement.
 Post-Retirement Plans
 Years Ended December 31,
 2018 2017
 Service cost $15 18
 Interest cost 110
 return on plan assets
 Recognition prior service cost 16
 Net post-retirement benefit expense $140 134


 Deposits restricted cash security deposits lease agreements.
 Deferred implementation costs long-term contracts recovered revenues. Topic 606 capitalized expensed incurred obligations. adjusted earnings July 1, 2018.
 Capitalized costs sales commissions eligible capitalization.
 Investments non-marketable equity securities partner. interests 4% to 20%. accounted equity method. net income losses recorded Consolidated Statements Income. June 30 2019) $13. 7 million 2018 2017 $6. million. million.
 Long-term expenses advance payments licenses amortized miscellaneous assets.
 June 30 2019 2018
 Deposits restricted cash $13,671 $9,479
 Deferred implementation costs 13,740
 Capitalized costs contract 35,593 13,027
 Investments 67,002 49,635
32,711 25,386
 $148,977,267


. Operating
 key amounts
 year 31 March 2019 €80 million credit €127 million charge
.
 foreign exchange losses
 Depreciation property plant equipment
 Owned assets 5,795 5,963 6,253
 Leased assets
 Amortisation intangible assets 3,941 4,399 4,821
 Impairment goodwill subsidiaries associates arrangements
 Staff costs 5,267 5,295
 inventory 5,886 6,045 6,464
 Operating lease rentals 3,826 3,788 3,976
 Loss disposal property intangible assets
 costs construction acquisition
 Net gain VodafoneZiggo


Accrued Expenses
 December
 Payroll incentive compensation $ 3,009 1,937
 lease liabilities
 Real estate taxes
 expenses $ 4,087 2,777


ADVANCED INDUSTRIES. FINANCIAL STATEMENTS share
 account uncertain tax positions minimum recognition threshold before. unrecognized tax benefits
 unrecognized tax benefits $13. 0 million impact tax rate. accrued interest penalties tax expense. $3. 0 million $1. 2 million accrued interest penalties December 31, 2019 2018. tax contingencies decrease $3. 5 million 2020 statute limitation expiration.
 Company subject federal income tax examinations before 2016.
 December
 Balance $13,162 $15,990 $11,401
 Additions tax positions
 Reductions prior (4,295)
 lapse statute of limitations
 settlement
 Balance end period $13,009 $13,162 $15,990


February 6, 2018 Company Board Directors approved separation smart camera NETGEAR initial public offering spin-off. August 2, 2018 Arlo Technologies. NETGEAR offering $16. 00 per share New York Stock Exchange August 3, 2018. August 7 generated proceeds $170. 2 million corporate purposes. common stock 74,247,000 shares NETGEAR held 62,500,000 shares 84. 2%. December 31, 2018 NETGEAR distribution 62,500,000 shares. NETGEAR owns Arlo. pro rata dividend stockholder. 980295 shares.
 Company ceased interest Arlo assets liabilities results cash flows discontinued operations Statements.
 incurred expense $34. 2 million December 2017.Separation expense third-party consulting legal services IT costs employee bonuses related incremental. costs reflected in Company consolidated statement. third quarter 2018 contributed $70. 0 million cash to Arlo transfer assets assumption liabilities master separation agreement. agreement governs separation Arlo business interim arrangements. third fourth quarter NETGEAR reduction operating expenses $6. 3 million transition services reflected. third quarter provided billing collection services Arlo. December 31, 2018 net liability to Arlo $12. 2 million classified accounts payable balance sheets. after Distribution. agreements transition services tax matters employee matters intellectual property cross-license registration rights. incurred expense $34. 2 million December 2017.Separation expense third-party consulting legal services IT costs employee bonuses related incremental. costs reflected in Company consolidated discontinued. third quarter 2018 contributed $70. 0 million cash to Arlo transfer assets assumption liabilities master separation agreement. governs interim arrangements. third fourth quarter NETGEAR reduction operating expenses $6. 3 million transition services reflected. third quarter provided billing collection services Arlo. December 31, 2018 net liability to Arlo $12. 2 million classified accounts payable balance sheets. after Distribution. agreements transition services tax matters employee matters intellectual property rights cross-license registration rights.
 financial results Arlo income discontinued operations net tax in consolidated
 statements. financial results
 Year Ended December 31,

 revenue $464,649 $367,751
 372,843 279,425
 Gross profit 91,806 88,326
 expenses
 Research development 48,696
 Sales marketing 39,713
 17,762
 Separation 31,583
 Litigation reserves
 expenses 137,754 44,303
 (45,948) 44,023
 Interest income 1,239
,750
 (9 13,921
 $(35,655) $30,569


Lockheed Martin
 August 16, 2016, Leidos Holdings. merged IS&GS Trust.
 2017 adjustments assets liabilities $337 million increase goodwill. changes intangible assets property plant equipment deferred tax assets accounts payable accrued liabilities.
 January 10, 2018 net working capital IS&GS arbitration Separation Agreement. $24 million acquisition costs 2017. January 18, 2018 final working capital $105 million paid Lockheed Martin $24 million $81 million cash flows operating investing.
 2018 tax indemnification liability $23 million paid Lockheed Martin cash flows financing.
 expenses acquisition integration IS&GS Business
 consolidated statements income.
 3
 Acquisition costs
 Integration costs


Directors’ emoluments
 management IAS 24. Total remuneration.
 post-retirement Annual Report Remuneration 2019 pages 102 132. share-based payments charge Performance Share Plan Employee Share Ownership Plan Note 23.
 Salaries short-term benefits.
 Post-retirement benefits.
 Share-based payments.
 Directors' remuneration.


summary amounts reclassified AOCI years June 30 2019 2018:
 Amounts debits income/loss.
 AOCI components net periodic benefit cost Note 11.
 Reclassified AOCI
 Years Ended June 30
 gain
 AOCI Components
 Cash flow hedging items
 Commodity contracts Cost sales.
 Foreign exchange contracts Net sales.
 Forward interest rate swaps expense.
 Total tax.
.
 Net tax $4.
 Amortization pension postretirement benefit plan items
 actuarial loss.
 service cost.
 tax.
.
 Net tax.


RESULTS OPERATIONS
 Revenue
 Reflects client arrangements license cloud maintenance renewal.
 expect revenue mix subscription offerings cloud slower revenue growth. Revenue cloud recognized service period term perpetual license upfront when rights effective.
 increase cloud revenue reflects preferences cloud. due large multi-year term license contracts. offset by contracts multi-year maintenance.
 increase maintenance revenue due growth value installed software strong renewal rates 90%
 decrease shift subscription
 revenue fluctuates new projects. personnel new license cloud arrangements Report.
 decrease consulting revenue due billable hours.
 Cloud $133,746 15% 82,627 $51,119 62%
 Term license 199,433 22% 178,256 20% 21,177 12%
 Maintenance 280,580 30% 263,875 16,705 6%
Subscription 613,759 67% 524,758 89,001
 Perpetual license 80,015 109,863,848
 217,609 256,960,351
 $911,383 $19,802


VALUATION QUALIFYING ACCOUNTS
 millions
 exchange immaterial reclassifications.
 Financing Receivables
 ended July 29, 2017
. $375 $249
 Provisions
 Recoveries.
 exchange.
 fiscal year $295 $211
 ended July 28, 2018
. $295 $211
 Provisions (89)
 Recoveries.
.
 fiscal year $205 $129
 ended July 27, 2019
 $205 $129
 Provisions
 Recoveries
 exchange.
 fiscal $126 $136


table summarizes revenues product categories
 Endpoint protection. Network web security. WSS PKI divested October 31, 2017. email security managed security consulting.
 Consumer security Norton VPN. Identity LifeLock theft.
 revenue
 March 29, 2019 2018
 Enterprise Security
 $1,027 $983 $947
 Network web security 748
 WSS PKI 238
 Security $2,323 $2,554 $2
 Consumer Cyber Safety
 $1,471 $1,504
 Identity protection
 2,408 2,280 1,664
 net revenues $4,731 $4,834 $4,019


. NET INCOME (LOSS) PER SHARE
 earnings shares.
 Diluted dilutive securities-dilutive. securities include stock options restricted stock units senior convertible debentures.
 diluted net income share
 2019 2018 2017 dilutive stock options restricted stock units warrants convertible debt anti-dilutive. excluded diluted net loss.
 Fiscal Year
 December 29, 2019 2018 31, 2017
 net income (loss per share
 $22,159 $(811,091) $(929,121)
 weighted-average common shares 144,796 140,825
 net income (loss) per share. $(5. $(6.
 Diluted net income (loss) per
income $22,159(811,091),121
 $22,159,121
 weighted-average common shares 144,796 140,825 139,370
 dilutive securities
 Restricted stock units
 shares 147,525 140,825 139
 Dilutive income share.


ASC 606 deferred revenues costs fleet management finance increased-service lives. Deferred income tax assets deficit. cumulative
 Deferred product costs Prepaid expenses $5. 4 million $6. 0 million March 1, 2018.
 ASC 606
 February 28, Adjustments March 1
 Prepaid expenses assets $12,000 $13,891
 Deferred income tax assets 31,581
 Other assets 18,829 3,145
 Liabilities Stockholders' Equity
 Deferred revenue $17,757 2,156
 non-current liabilities 24,249


Intangible Assets
 software $2,526 $12,666 2019 2018 intangible asset. Amortization $7,464 $3,832 revenues sales marketing expenses Consolidated Statements Operations Loss.
 US $000
 Accumulated amortization Net value
 Acquired technology 15,556
 Software costs 24,963 9,226 15,737
 Acquired customer relationships
 Purchased software 6,973 4,503 2,470
 intangible assets
 48,578


Accounts Receivable
 December 31, 2019 2018 allowances doubtful accounts $1. 8 million $1. 3 million against Restaurant/Retail accounts. Write-offs $0. 3 million. 4 million. bad debt expense statements $0. 8 million. million.
 Receivables unconditional rights payments customers.
 Government segment
 $11,608 $9,100
 billings
 Restaurant/Retail
 30
 $26


OPTION PRICING MODEL
 fair value options binomial option pricing model. assumptions valuation.
 dividend growth strategy. volatility share price. risk-free rate equal yield Government Canada bonds life options
 fair value option $2. 34.
 share price $58 $57
 exercise price $58 $56
 dividend growth 5%
 volatility 14%
 Risk-free interest rate 2%
 life


reconciliation U. S federal taxes expense
. statutory rate 21% 2019. 58% 2018 35%
 2017.
.
 tax benefit 2019 $216 million Switzerland Federal Act Tax Reform AHV Financing $90 million tax audit non-U. S. jurisdiction $15 million legal entity restructurings transactions. Tax.
 2018 $1,222 million restructurings September 28, 2018. non-U. S. loss carryforwards differences subsidiaries offset $46 million increase valuation allowance. federal tax credit carryforwards. $567 million Tax Cuts Jobs Act $61 million benefit legal entity restructurings December 29, 2017. Cuts Jobs.
 tax expense 2017 $52 million benefit transactions reduction valuation allowance. tax loss carryforwards $40 million benefit share-based payments ASU No.2016-09 $14 million income tax benefit pre-separation.
 2019 2018 2017
. federal income tax expense statutory rate $ 406 551 602
 Adjustments expense
. state income tax benefit
 Tax law changes
 credits
 Non. (166) (213)
 accrued income tax liabilities
 Valuation allowance
 Legal entity restructuring transactions
 Excess tax benefits share-based payments
 Income tax expense (344)


VMware’s payments for arrangements
 includes indirect taxes Dell.
 VMware purchases Dell products channel partners. not significant.
 VMware Dell joint marketing sales branding product development arrangements incur costs.
 fourth quarter fiscal 2020 VMware 250 employees. centralizes resources. completed fourth quarter consolidated financial statements. expects Dell consulting solutions.
 third quarter 2019 VMware acquired technology employees Dell EMC Service Assurance Suite Dell. common control. purchase price reduction earnings. Transition services provided 18 months not significant.
 second quarter fiscal 2018 VMware acquired Wavefront, Inc. Dell paid $20 million for non-controlling ownership Wavefront.
 January 31, 2020 February 1, 2019 2, 2018
 Purchases leases $242 $200 $142
Dell subsidiary 145


Earnings per share profit period shareholders divided by weighted average shares. potential share rights dilute ownership.
 adjusted remove shares Woolworths Custodian Pty Ltd trustee trusts
 Includes 8. million. shares issued employee performance rights.
 2019 off-market share buy-back 27 May 2019. million shares cancelled. Note 4. details buy-back.
 53
 Profit equity holders parent entity
 earnings per share$M
 1,493 1,605
 Discontinued 1 119
 1,724
 Weighted average shares earnings
 earnings 1,305. 1,300.
 Diluted earnings per 1,313. 1,303.
 114. 123.
 91.
 206. 132.
 earnings
 113. 123.
 91.
. 132.


 table goodwill
 January 31, 2020 February 1, 2019
 $7,418 $6,660
 Increase goodwill business combinations 1,911 784
 $9,329 $7,418


. Financial instruments management
 Credit risk
 composition receivables 31 December
 Group monitors credit checks credit approval limits. receivables past due not impaired low risk.
 provision credit losses. 20. value impaired receivables $1. 4 million (2018 $0. 9 million. maximum exposure credit risk carrying amount.
 impaired past due.
 not impaired
 Less 30 days overdue.
 30 60.
 60.
 receivables.


Research Development Expenses personnel expenditures. invest essential competitive position.
 Excluding stock-based compensation
 research development expenses flat 2019 offset stock-based compensation.
 Year Ended May 31,
 Percent Change
 Research development $5,063 -2% 0%
 Stock-based compensation 5%
 Total expenses $6,026 -1% 0%
 % Total Revenues 15%


AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS
. CASH FLOW
 non investing financing years December 31,
 extinguishment TV Azteca.
 cash flow
 interest $750. $789. $712.
 income taxes refunds $11. $25. $20. 147.
 Non-cash investing financing
 accounts payable accrued expenses purchases property equipment construction.
 Purchases property leases easements capital leases.
 debt acquisitions 329.
 Commercialization Rights.
 Conversion third-party debt equity.
 acquisition communication sites.


. Income taxes
 normal Company takes positions on tax returns challenged by
 authorities. evaluates uncertain tax positions
. If not likely
 records liability for benefit not likely
 when settled. liability for uncertain tax positions at December 31,
 2019 expect increase twelve months
 ended December 31, 2020 changes could
. changes tax benefits impact
 effective income tax rate.
 takes positions tax returns. evaluates uncertain positions. If not likely records liability for benefit not likely when settled. liability for uncertain tax positions at December 31, 2019 expect increase twelve months ended December 31, 2020 changes liability could different. changes tax benefits impact effective income tax rate. takes positions tax returns challenged. evaluates positions.Company determines tax position not likely records liability for benefit. liability for uncertain tax positions at December 31, 2019 expect months December 31, 2020 changes could. changes tax benefits impact income tax rate. Company takes positions tax returns challenged by authorities. evaluates uncertain tax positions. records liability for benefit not likely. liability at December 31, 2019 2020 changes could. changes tax benefits impact effective income tax rate.
 Company files income tax returns US federal state foreign jurisdictions. subject to US federal state tax examinations 2004 to 2019. tax examinations foreign jurisdictions 2005 to 2019.
 reconciliation of Federal statutory income taxes to financial statements.
 Years Ended December 31,
 2019 2018 2017
income tax,061),690,892)
 State taxes federal benefit (2,973
 foreign operations
 Non-deductible expenses,350
 Federal tax rate change
 TCJA foreign earnings (2,296
 Changes valuation allowance
 Income tax expense(15,154,715),242)


. CAPITAL STRUCTURE
 table summarizes debt financial ratios two years 2020 guidelines
 mid-range guidelines. Excludes deferred costs fees includes interest rate swaps. LIBOR rates considered. interest rate swaps. Net indebtedness bank indebtedness balance business combinations long-term debt less cash equivalents. Adjusted EBITDA financial expense 2018 eight months MetroCast operations. interest coverage.
 2019 leverage ratio indebtedness EBITDA declined sale Cogeco Peer 1 $720 million growing adjusted EBITDA reduction indebtedness. 2020 IFRS 16 Leases leverage ratio growing adjusted EBITDA reduction.
 Years ended August 31,
 Average cost.
 Fixed rate 78%
 long-term debt.
 Net indebtedness(4) adjusted.
 financial.


table activity 2019 2018 finite assets
 Company reviews long-lived assets impairment. impairment loss future cash flows less than carrying amount.
 loss measured excess carrying amount over fair value. 2019 2017 no impairment losses. Impairment loss 2018 $2. 2 million acquired technology.
 Years Ended December
 2018
 Beginning balance $240,500 $310,645
 Transfers
 Amortization (57,015)
 Impairment losses (2,198)
 Ending balance $187,971 240,500


Horizon Clinicals Series2000 Revenue Cycle Discontinued
 acquired after March 31, 2018. decision prior presented discontinued operations.
 Until first quarter 2018 maintenance support customers transitioned platforms. No disposal gains losses December 31, 2018. $0. 9 million accrued expenses Horizon Clinicals consolidated balance sheets December 31, 2018
 summarizes income expense discontinued December 2018 2017:
 pretax profit discontinued operations Horizon Clinicals
 Software delivery support maintenance $9,441 $10,949
 Client services
 2,322
 3,152
 Gross profit 6,693 8,814
 Research development 1,651 1,148
 Income before taxes 5,042 7,666
 provision
Horizon Clinicals $3,731 $4,676


Balance Sheet Adjustments
 new accounting standards
 balance March 30 includes $107 million deferred commissions $94 million. $99 million commissions $86 million.
 long-term deferred commissions $35 million taxes $61 million deferred assets $46 million. $92 million $29 million deferred assets $828 million.
 Balance March 30 Revenue Recognition Accounting Income Taxes Opening Balance March 31,
 Accounts receivable $809 $833
 assets $522
 long-term assets $526
 Total assets $15,759
 Short-term contract liabilities $2,368
 liabilities $372
 Long-term liabilities $735
 Deferred income tax liabilities $592
 Total liabilities $10,736
earnings $197,267


Operations
 tables financial data periods
 December 31,
 2019
 Revenues $1,177. $1,114. $1,051.
 Expenses
 Operating 646. 625. 569.
 Depreciation amortization 236. 217. 206.
 Transition integration costs.
 expenses. 849.
 Operating income. 265. 262.
 Operating margin 24.
 Interest expense.
.
 Earnings taxes equity losses unconsolidated affiliates 224. 206. 192
 Income tax expense 41.
 Earnings equity losses unconsolidated affiliates 182. 254
 losses.
 earnings $108. $168. $254.
 Earnings share
 Black Knight shareholders
 $0.
 shares common stock
148. 6. 152


Purchase Commitments with Manufacturers Suppliers
 purchase components from services. supply agreements inventory parameters. purchase commitments firm noncancelable unconditional. long pricing. agreements allow cancel reschedule adjust requirements.
 table summarizes purchase commitments with
 liability for firm noncancelable unconditional purchase commitments future demand forecasts. July 27, 2019 July 28, 2018 liability $129 million $159 million included in current liabilities.
 Commitments by Period July 2019
 Less than 1 year $4,239 $5,407
 1 to 3 years
 3 to 5 years
 Total $4,967 $6,477


Equity Securities Issuer Affiliated Purchasers
 common stock repurchased April 26, 2019
 May 2003, Board approved stock repurchase program. repurchase $13. 6 billion $4. 0 billion increase 2018. repurchased 313 million shares price $11. 7 billion. market privately accelerated repurchase programs Rule 10b5-1 plan. repurchase program discontinued.
 Shares Purchased Average Price Paid Share Dollar Value
 millions
 January 26, 2019 February 22, 2019 $ 64. 306,255 $ 2,372
 February March 3,380 $ 65. 309,635 $ 2,150
 April 26, 3,608 $72. 313,244 $ 1,889
 7,250 $68.


table presents results three businesses 2019 2018 2017
 Cloud license revenues recognized statements accounting. See Note 9 consolidated revenues
 margins reflect direct costs product development expenses. amortization acquisition restructuring stock-based compensation interest non-operating income. reconciliation income before taxes.
 Year Ended May 31,
 2019 2018 2017
 Cloud license
 revenues $32,582 $32,041 $30,452
 services support expenses 3,597,441 2,881
 Sales marketing expenses 7,398,213 6,770
 $21,587 $21,387 $20,801
 Hardware
 revenues $3,704 $3,994 $4,152
 expenses 1,327 1,547
 Sales marketing expenses 520 643 825
 $1,857 $1,804 $1,709
$3,240
 expenses 2,703
 $537
 revenues $39,526 $39,430
 Expenses 15,545,573,755
 $23,981 $23,857


. BALANCE
 long-term liabilities
 taxes $37,385 $36,336
 Deferred compensation 39,715,895
 tax liabilities
 revenue
 Asset retirement obligations
 benefit plan liabilities 45,862 37,528
 2,188 1,238
 $165,881 $151,956


Goodwill intangible assets
 Impairment
 IAS 36 (Impairment goodwill allocated cash-generating units synergies business combination goodwill.
 2019 review. consolidated CGUs lowest goodwill Note 3. performed impairment review operating segment CGU level goodwill value 31st December
 transition impairment 31st December 2019 CGU. impairment £4. 2m recognised Watson-Marlow FlowSmart. No other impairment recognised.
 goodwill balance tested annual impairment
 carrying values assessed value use. estimated cash flows approved extended 9 years pre-tax discount rates 11-12% (2018 10-15%) short medium-term growth rates vary 3-8% 2-8%). excludes owning Thermocoax. not 10 years long-term growth rates IMF forecasts vary 1. 8-2. 5%.

 Steam 113. 119
 Thermal 244. 183.
 Watson-Marlow 60. 65.
 417.


. Non-financial assets fair value measurement
 Group classified assets three levels note 9.
 Recognised value measurements
 transfers value reporting period. no transfers between levels 1 2. 30 June 2019 transferred $2. 1m 3 to $5. 7m 2 to.
 prior year 2018 transferred $4. 4m 3 to 2.
 Fair value measurements observable inputs (level 2)
 determined. 30 June 2019 2018 valued assets agreed sales price less estimated cost sale market.
 Fair value measurements unobservable inputs (level 3)
 Investment properties storage buildings for rental fair value. Changes values presented profit loss fair value adjustments.
 determined independent valuations Director valuations. accredited independent valuer. valued every three years. Directors verify inputs review results valuer.Director valuations completed by NSH Group Board. determined same techniques similar estimates independent valuer.
 Group obtains majority external valuations financial year. valuation investment property preceding unless significant change valuation.
 1 2 3
 30 June 2019
 Assets sale. 2 1,107
 Leasehold properties. 215,279
 Freehold. 1,874,698
 2,089,977 2,091,084
 30 June 2018
 Assets sale 10. 2 5,713
 Leasehold properties. 4 207,664
 Freehold. 1,377,924


Long-term obligations
 $6. million $11. 2 million September 28, 29, 2018.
 Term Loan $385,208 $411,661
.
. Connecticut loan 2023
 Capital lease obligations
-term obligations $392,238 $420,711


Production start-up
 expense employee compensation costs operating line before production raw materials solar modules facility costs. equipment upgrades process improvements new site legal regulatory costs plant replication program. expense per higher new facility additional infrastructure investment.
 table shows start-up expense 31, 2019 2018 2017:
 2019 incurred facility Lake Township Ohio. Ho Chi Minh City Vietnam. 2018 transition Series 6 module manufacturing Kulim Malaysia Ho Chi Minh City Vietnam. Perrysburg Ohio.
 Years Ended
 thousands 2019 2018 2017
 Production start-up $45,915 $90,735 $42,643 $(44,820) (49)% $48,092 113%
 % net sales 1. 5% 4. 0%. 4%


. EMPLOYEE BENEFIT PLANS.
 sensitivities hypothetical. percent variation. sensitivities calculated. sensitivities.
 Company $5. 1 million benefit $0. 6 million Telesat Canada next fiscal year.
 December 31, 2018 1% increase
 Discount rate $(39,145) $49,361 $3,224
 Future salary growth $7,572 $(6,919)
 Medical dental trend rates $1,703 $(1,280)


. Restructuring
 2019 Company initiated plan sales marketing costs. incurred restructuring charges $14,765. severance headcount lease abandonment. $2,632 stock compensation unvested awards.
 restructuring accruals
 accruals future severance lease payments.
 Lease abandonment Severance payroll
 Balance March 31, 2018 $—
 Restructuring charges 1,034 14,606
 Payments (13
 Accrual reversals
 Balance March 31, 2019 $494 $1,089 $1,583


 Interest income increased $1. million higher cash higher yields.
 Interest expense increased $5. 3 million $3. million long-term debt financing lease obligation $2. million Lexington. headquarters.
 decreased $3. 1 million expense $1. million sublease income. million gain Solebit acquisition. million.
 March 31, Period-period change
 Interest income $ 2,515 $ 1,310 1,205
 Interest expense (5,940)
 Foreign exchange expense
 $ (3,781) (2,727) (1,054)


Directors’ Remuneration
 earnings contributions pension schemes Sophos Group subsidiaries. details Remuneration Report pages 91 101.
-ended 31 March 2019 2018
 emoluments.
 Gains share options.
 vesting LTIP awards.
 remuneration.


Orders Mobility grew high orders rolling stock services. major wins € 1. 6 billion metro trains. € 1. 2 billion high-speed Russia €. 8 billion Canada €. 7 billion diesel-electric locomotives. Germany €. 4 billion. 3 billion. 2018 Mobility gained contracts.
 Revenue grew slightly services offset decline infrastructure. rolling stock level unfavorable timing large projects. high profitability 2019 EBITA services. Severance charges € 20 million 14 million 2018. order backlog € 33 billion € 8 billion converted revenue 2020.
 growth strong markets. Europe mid-size large orders U. Germany Austria. projects high-speed Russia. Middle East Africa uncertainties budget. Americas mainline
 urban transport U. S. Canada.
Chinese high-speed trains urban transport freight logistics rail infrastructure India. 2020 markets grow demand digital solutions. intermodal mobility urbanization. emerging countries rising incomes demand public transport.
 Fiscal year
 millions €.
 Orders 12,894 11,025 17 %
 Revenue 8,821 1 %
 Adjusted EBITA 983 958 3 %
 margin. %


. Expenses Liabilities
 payroll employee benefits $116. $105.
 93. 120.
 operating lease liabilities 39.
 Tax-related 30. 38.
 28. 10
 marketing advertising expenses 14. 19.
 acquisition expenses 8. 74.
 33. 44.
 $366. $414.


. Derivative Instruments
 foreign currency interest equity price risks. volatility earnings. expose credit risk. major financial institutions. loss monitored. losses defaults.
 outstanding derivatives
 July 27, 2019 July 28, 2018
 Derivatives hedging instruments
 Foreign currency $663 $147
 Interest rate derivatives 4,500 6,750
 Net investment hedging instruments 309 250
 not
 Foreign currency derivatives 2,708 2,298
 Total return swaps—deferred compensation 574 566
 $8,754 $10,011


Contractual Obligations Commercial Commitments
 table summarizes non obligations commercial commitments end 2019 effect liquidity cash flows future
 wafer manufacturers starts. committed forecasted wafer volume.
 commercial commitments liabilities balance sheets.
 unrecognized tax benefits $2. 1 million. Note 10 Consolidated Financial Statements.
 Payments Due Period
 Less 1 1-3 Years 4-5 5 Years
 Contractual cash obligations
 Operating leases $2,040 $611
 Finance software lease obligations
 Wafer purchases
 purchase commitments
 obligations 3,024 1,268
 commercial commitments
 Revolving line credit 15,000
 $18,024 $16,268 $1,229 $527


.
 September 28, 2019 29, 2018
 customer deposits excess inventory risks. deposits Balance $136. 5 million $87. 7 million.
 2019 Topic 606 contracts retrospective. prior year information accounting 2018. Note 15 Contracts.
 Raw materials $577,545 $579,377
 Work-in-process 49,315 102,337
 Finished goods 74,078 112,632
 inventories $700,938 $794,346


Capital
 cash-term investments funds. treasury bills. available-for-sale. securities market value unrealized gains losses. December 2019 investments $89. 5 million $35. 4 million $124. 9 million 2018.
 cash flow 2019 2018 2017
 $34. 1 million $69. 9 million $74. 4 million decrease income $25. 6 million deferred revenue $4. 2 million assets $2. 1 million increase accounts receivables. million accrued compensation $3. 8 million long-term liabilities. ASC 606 2018. 5 million non-cash charges $3. 2 million stock-based compensation expense. million Facility $1. 3 million depreciation amortization expense. shortened Facility. million deferred income taxes.
 $10. 9 million $2. 7 million.investing 2018. 2019 $20. million. offset purchases $8. 9 million purchases $0. 2 million. $26. million. offset purchases $17. 7 million purchases property $0. 1 million.
 2019 $1. 3 million decrease $9. 5 million $8. 2 million 2018. $2. 7 million treasury stock offset $1. 4 million stock option purchases. $8. 2 million.
 $69. 9 million $43. 8 million 2017. million change $99. 6 million net income $45. 3 million $54. 3 million $27. 0 million deferred revenue offset $7. million assets $4. 2 million prepaid expenses assets $3. 7 million accounts payable. ASC 606 2018. non-cash charges $2. 6 million higher stock-based compensation expense.
2018 $8. 2 million decrease $2. 8 million $11. 1 million 2017. $26. 0 million offset purchases $17. 7 million purchases $0. 1 million. 2017 $35. 0 million offset purchases $23. 8 million purchases $0. 1 million.
 2018 $8. 2 million increase $7. 7 million $0. 5 million 2017. $8. 2 million stock exercises purchases. 2017 $0. 8 million offset repurchases treasury stock $0. 3 million.
 cash investments working capital needs twelve months. investments $89. 5 million December 31, 2019 5% foreign subsidiaries repatriation tax. reinvest earnings foreign operations domestic operations. invest IP portfolio cash. December 31, 2019 $30. 6 million share repurchase program.capital expenditures property 2020 less $1. million. Part I Item 1A Factors Annual Report Form 10-K.
 Ended December 31,
 2017
 operating $(34,099) $69,924,829)
 investing $10,920 $8 $11,068
 financing $(1,331) $8,205


Operating Revenues
.
 Consumer’s revenues increased $1. 3 billion. 4% 2019 Service revenues Wireless equipment.
 increased $1. 2 billion. 8% wireless Fios revenues wireline voice.
 revenue increased $1. 3 billion 2. 5% plans declining fixed-term subsidized plan base reseller accounts. postpaid ARPA increased 2. 3%.
 Fios revenues $10. 4 billion increased $92 million 0. 9% 2018. 2. 5% increase Internet connections 5. 1% decrease video connections.
 wireline voice broadband declined 2019. 9. 1% voice connections competition substitution.
 Wireless Equipment Revenue decreased $827 million 4. 4% 2019 sales handset upgrade cycle promotions. offset higher priced units.
Revenue includes regulatory fees cost recovery surcharges device protection package leasing interest equipment. increased $1. billion. 4% 2019 2018 due pricing increases wireless protection plans regulatory fees.
 December 31,.
 $65,383 $ 64,223 $ 1,160.
 Wireless equipment 18,048 18,875.
 7,625 6,664.
 Operating Revenues $ 91,056 $ 89,762 1,294.
 retail 94,544,507
 postpaid 90,481 89,861.
 Internet connections 5,902 5,760.
 video connections 4,152 4,377.
 Broadband connections 6,467 6,460.
 Voice connections 5,754 6,332.
 Additions
.
 1,129.
retail postpaid phones 737 498 239 48.
 Churn Rate
. 28%. 25%
. 05%.
. 79%. 76%
 Account Statistics
 118. 13 $115. 48. 65.
 accounts 33,875 34,086 (211).
 connections. 67. 64. 03.


Americas 2019 Exit Plan
 first quarter 2019 initiated restructuring operating model. agent attrition absenteeism. closing centers consolidating leased space. management reorganization. finalized actions September 30, 2019.
 Americas 2018 Exit Plan
 second quarter 2018 initiated restructuring capacity utilization closing centers consolidating space. Canada finalized site closures December 31, 2018 reduction seats.
 actions cost savings lower depreciation expense.
 cumulative costs cash non expenditures December 31, 2019
.
 salaries.
 paid $12. 3 million cash December 31, 2019 $10. 4 million Americas 2018 Exit Plan $1. 9 million 2019 Exit Plan.
 Lease obligations facility exit costs $7,073
 Non-cash charges
non-cash 244


. Remuneration year ended March 31, 2019
. Non-Executive Directors
 Chandrasekaran Chairman abstained receiving commission
 Company.
 no payment commission
 Non-Executive Directors full time employment
.
 Relinquished Independent Director. July 10, 2018.
 Relinquished Independent Director. September 28, 2018.
 Additional Independent Director. December 18, 2018.
 Additional Independent Director. January 10, 2019.
 Chandrasekaran Chairman.
 Aman Mehta 315.
 Thyagarajan.
 Clayton 75.
 Ron Sommer.
.
 Aarthi.
 Pradeep Kumar 150.
.
.
.
.


Adjusted cash flow
 reconciliation net cash IFRS adjusted basis. Board performance Group focus Net capital expenditure control.
 cash conversion 2019 84% (2018 91%). divided profit.
 Financial Review page 58.
 Net cash activities IFRS 227. 212.
 Acquisition disposal costs.
 Net capital expenditure intangibles.
 Tax 78. 61.
 Repayments lease liabilities.
 Adjusted cash operations 238.


Cash Flows
 table consolidated cash flow
 Operating Activities cash 2019 due increased accounts payable accrued expenses liabilities decreased inventories non-cash expenses offset contract assets accounts receivable. increase due collections securitization purchases cash payments. decrease inventories ASU 2014-09 reclassification contract assets offset increase sales 2020. increase contract assets ASU 2014-09. increase accounts receivable driven securitization programs higher sales timing collections.
 Investing Activities capital expenditures assets acquired offset proceeds sale property equipment cash receipts-backed securitization programs.
 Financing Activities due debt agreements repurchase common stock dividend payments treasury stock minimum tax withholding. offset borrowings debt agreements proceeds stock options common stock employee purchase plan.
Fiscal Year Ended August 31,
 operating $1,193,066,105,448,464,085)
 investing (872,454 1,240,914 2,141,263
 financing (415,772,044
 exchange rate cash,392 5,228
 $(94,606 $68,030 $277,860


Autodesk applies fair value accounting for financial assets liabilities cash equivalents marketable securities instruments. defines fair value as price selling liability transaction market participants. Fair value estimated hierarchy prioritizes inputs three levels lowest level 1) observable inputs quoted prices active markets 2) 3) unobservable inputs little market data assumptions. uses observable market data relies unobservable inputs. reviews changes quarterly.
 cash equivalents marketable securities financial instruments classified Level 1 or 2 fair value hierarchy. values securities on pricing vendors quoted prices. Level 2 securities valued using observable inputs. Level 3 securities convertible debt securities derivative contracts.
 reconciliation change in Level 3 items fiscal year ended January 31, 2019
expense Statements Operations.
 Fair Measurements Inputs
 Contracts Convertible Debt Securities
 Balances January 31, 2018 $1. $7. $8.
 Settlements.
 Gains earnings.
 Losses OCI.
 Balances January 31, 2019. 8 $4. 4 $5.


Income Taxes effective income tax rates income tax jurisdictions. 2018 Tax Act signed law. significant provisions “Impacts U. S. Tax Cuts and Jobs Act of 2017”. Note 14 Consolidated Financial Statements differences between effective income tax rates. federal statutory income tax rates. Future tax rates affected by shift earnings higher tax rates changes tax laws adverse rulings tax litigation shortfalls stock-based compensation.
 income taxes decreased 2019 due initial accounting charges Tax Act. impacts final accounting Tax Act tax profile deferred tax asset realignment legal structure lower income before provision taxes. decreases offset by lower excess tax benefits stock-based compensation expense less favorable changes net unrecognized tax benefits due settlements tax authorities.
 Year Ended May 31,
 Percent Change
2019
 income taxes $1,185 $8,837
 tax. 7%. 1%


Original Equipment Manufacturers end-customers direct marketing engineering support Distribution customers distributors representatives.
 revenues Distribution 5 2018 30% share total revenues 2019. 2018 2017 revenues Distribution 1.
 Ended December
 2019 2018 2017
 net revenues
 OEM 70% 65% 66%
 Distribution 30 35 34
 100%


Share-Based Payment Expense
 employee services
 awards social security taxes. 31 March 2019 $1. 6M $3. 1M.
-ended 2019
 Cash-settled transactions.
 Equity-settled transactions.
 share-based payment expense 36.


Leases
 Consolidated Balance Sheet
 Additions right-of-use assets 2019 were $0. 3 million.
 Consolidated Statement of Comprehensive Income
 leases total cash outflow leases 2019 $8. 6 million.
 group’s leasing activities
 leases property motor vehicles connectivity links varying terms escalation clauses renewal rights.
 Leases recognised right-of-use liability. lease payment allocated between liability finance cost. finance cost charged profit loss lease term constant interest. right-of-use depreciated life lease term.
 Assets liabilities lease measured present value. liabilities include value lease payments
 fixed payments
 variable lease payments
 residual value guarantees
 exercise price purchase option
 penalties terminating lease.
lease payments discounted interest rate borrowing rate.
 Right-of-use assets measured cost
 initial lease liability
 payments incentives
 initial costs
 restoration costs.
 Payments short-term low-value recognised expense profit loss. Short-term leases 12 months or less. Low-value assets IT-equipment office furniture.
 Extension termination options
 property equipment leases. operational flexibility. exercisable Group not lessor.
 June 2019 2018
 Right-of-use assets
 Properties
 Motor Vehicles
 Connectivity Links


Stock-Settled Appreciation Rights
 value difference shares exercise. settled shares Agilysys.
 Black-Scholes-Merton option pricing model value. assumptions SSARs 2019 2018
 risk-free interest rate based yield zero coupon U. S. Treasury bond expected life. estimated historical data. fair value recognized vesting period graded vesting method. compensation cost unvested amounts recognized grant date.
 Risk-free interest rate 2. 68%.
 Expected life years 5
 volatility 32. 42%.
 average grant date fair value $4. 72 $3.


Annual Contract Value
 measures future cash flows Pega Cloud Client Cloud arrangements reporting period.
 ACV sum components
 Client Cloud annual value license contract maintenance revenue quarter multiplied four. hosting services.
 Pega Cloud annual value contract.
 foreign currency exchange rates ACV growth rates constant currency enhances performance.
 Maintenance  $292,696  $269,708  $22,988 9%
 Term  231,267  190,349 40,918 21%
 Client Cloud 523,963  460,057 63,906 14%
 Pega Cloud 169,329  109,973 59,356 54%
 Total ACV $693,292  $570,030  $123,262 22%


Net Income per Common Share
 based average common Class A shares. includes dilutive effects stock options unvested restricted shares.
 calculated. Diluted effects options shares. June 3, 2017 restricted shares 131,292 excluded
 antidilutive. computations
 2019 2018 2017
 Net income (loss) Cal-Maine Foods. $54,229 $125,932 $(74,278)
-average common shares Class A 48,467 48,353 48,362
 Effect dilutive securities
 stock options restricted stock
 Dilutive potential common shares 48,589 48,468
 Net income (loss) per common share
. $2.
.


Employees’ information
 Share payments
 share options schemes
 exercised vested.
 non-vested SIP free shares partnership shares matching shares.
 prices 31 December 2019 Share Option Schemes 304 309 Save As You Earn Scheme 77 278.
 Share Option Schemes
 shares intu properties Company Share Option Plan Non-approved Executive Share Option Scheme.
 options not exercised three years performance conditions forfeited. options lapse 10 years.
 Performance Share Plan
 operates employees Remuneration Committee
 Awards cost options conditional share joint share ownership fixed-value zero option.
 2020 PSP awards 50 Total Shareholder Return real estate intu’s Total Property Return MSCI UK Shopping Centre benchmark. change 2019 awards TSR targets Remuneration Committee financial performance.awards vest three years following grant additional two year post vesting period shares Remuneration Committee.
 Bonus Share Scheme
 shares awarded deferred.
 Restricted Additional Shares July 2019. Restricted Shares vest two three years after award Additional Shares four or five years after. Vesting subject to continued employment. no further performance conditions.
 Additional Shares equal 50 per cent. No Additional Shares outstanding 1 January 2014 no awards.
 Share Incentive Plan
 eligible employees £3,600 annual bonus. tax-advantaged scheme.
 Free Shares held in trust three years withdrawn. two years qualify HMRC tax advantages.
Company offers employees Partnership share scheme invest £1,800 pre-tax salary 10 per cent shares 12-month period. one share Matching two Partnership Shares purchased. Matching Shares forfeited if leaves three years qualify for tax advantages five years.
 Save As You Earn Scheme
 Group operates employees save £500 per month three or five years proceeds purchase shares. option purchase shares average mid-market closing share price three discounted 20 per cent. Options exercised six months savings period.
 F Joint Share Ownership Plan)
 employees intu properties Unapproved Share Option Scheme replaced Non-approved Executive Share Option Scheme. shares held jointly by employee trustee increases share price dividends allocated between owners.
 same as Non-approved Executive Share Option Scheme.
January 2019 Granted Exercised Expired 31 December
 Share Option Schemes 7,938,601,137,073
 Performance Share 7,008,260 3,734,410,228,278 8,514,392
 Bonus Share Scheme 1,827,366 556,840 1,371,071
 Share Incentive 243,127 88,027 209,302
 Save Earn Scheme 219,136 448,368 546,332
 Joint Share Ownership Plan 4,345,305,382,972) 2,962,333


employees
 August 3, 2018 plan reduction 40 30% pre-restructuring workforce. recorded $381,000 third quarter 2018 one-time severance payments termination benefits. goal retaining clients gaining business new business.
 Employees
 March 1
 Department 2020
 Sales Marketing 41
 Engineering 13
 Professional Services 6
 Customer Support 22
 Management Administration 18
 100


TAXES
 tax rate jurisdictions.
 geographical breakdown taxes
 June 30
 Domestic income $269,331 $238,405 $110,562
 Foreign 171,243 147,721,989
 before taxes $440,574 $386,126 $249,551


ITEM 6. SELECTED FINANCIAL DATA
 data derived from consolidated financial statements. with Item 7 Discussion Analysis Financial Condition Results financial statements notes. information not indicative future. results differ historical Risk.
 consolidated balance sheet December 31, 2019 acquisition Speedpay Note 3 Part IV Item 15 Form.
 2019 Accounting Standards Update 2016-02 Leases.
 December 31, 2018 ASU 2014-09 Revenue Contracts adjustment $244. 0 million retained earnings.
 December 31, 2017 reflects Baldwin Hackett & Meeks, Inc. judgment. $46. 7 million general administrative expense $1. 4 million interest expense Note 15.
 balance December 31, 2016, sale Community Financial Services assets liabilities.

 2019 2018 2017 2016
 Income Statement
 revenues $ 1,258,294 1,009,780 1,024,191 1,005,701 1,045,977
 Net income 67,062 68,921 129,535 85,436
 Earnings per share
.
.
 shares
 116,175 116,057 118,059 117,533 117,465
 118,571 117,632 119,444 118,847 118,919


7—Income Taxes
 Company incorporated Switzerland tax.
 Company income taxes Switzerland.
 Income operations 2019 2017 Years Ended March 31, 2019 2017 $212,986 $177,935 $161,544 Non-Swiss 58,147 54,330 53,445 Income before taxes $271,133 $232,265 $214,989


Liquidity Capital Resources
 table summarizes cash equivalents accounts receivable working capital
 capital assets minus liabilities. equivalents December 31, 2019. excess short deposit accounts low returns.
 Cash equivalents $119,629 $146,061 $96,329
 Accounts receivable 76,373 49,510 40,634
 Working capital 167,879 152,793 119,433


18. Income
 Years Ended June 30
 millions 2019 2018 2017
 Unrealized gains life insurance contracts investments trusts. 8 $1. 5 $1. 7
 Interest income.
 Foreign exchange.
 Pension earnings interest deferrals.
 Pension curtailment.
. 2
 income $0. 6. 8).


FY17 PRUs.
 Compensation Committee payouts.
 Gregory. Clark 2,404,175 2,579,198
 Nicholas. Noviello 606,935
 Amy. Cappellanti-Wolf 207,142 15
 Samir Kapuria 148,322 10,798 159,120
 Scott. Taylor 414,287 30 444,447


. LIABILITIES
 CFO Vice President payable March 2020 payroll taxes Pension Plan Chairman President CEO. note 7.
 figures USD
 Interest 1,598
 Expenses 11,569 7
 Liabilities 3,830
 December 15,562 8,960


. Debt Capital Lease Obligations Financing
 obligations September 28, 2019 29, 2018
 June 15, 2018 Company Note Purchase Agreement issued$ 150. million unsecured senior notes $100. million. Series A Notes June 2025 $50. million. 22% Series B Senior Notes June 15 2028. NPA financial covenants financial ratios leverage minimum interest coverage ratio. Notes prepaid interest payable semiannually. September 28, 2019.
 June 15 repaid $175. million 5. 20% Senior Notes.
 May 15, 2019 refinanced -year expanded maximum commitment $300. million to $350. million extended maturity July 5, 2021 to May 15, 2024. $600. million. highest daily borrowing $250. million average $140. million.Company borrowed $1,084. million repaid $989. million 2019. covenants 2018 NPA. commitment fee daily revolver credit leverage ratio. 125% September 28, 2019.
. Senior Notes June 15 2025
. 22% June 15 2028
 Borrowings
 Capital lease obligations 44,492
 Unamortized deferred financing fees
 obligations 287,980
 Long-term debt capital lease 187,278


5. million. options granted Sharesave Plan price 30 pence per share.
 options 30 March 2019 32 pence contractual life 1. 6 years.
 2018/19 Group expense £2. 1m. equity-settled share payment transactions.
 Premier Foods plc Sharesave Plan
 average exercise price
 17,835,628 20,231,334
 Exercised (4,306,470) (3,536,539
 5,022,240 4,988,669
 Forfeited/lapsed (2,447,511) (3,847,836)
 16,103,887 17,835,628
 2,673,154 792,451


. common stock traded NASDAQ Global Market. high low sales prices quarters
. 2019 Board Directors declared four cash dividends$0. 40 per share. subject Board law depends results financial condition indebtedness capital requirements contractual restrictions.
 16 Weeks
 12 Weeks
 September July 7 April 14 January
 $91. $87. $85. $90.
 $70. $75. $74.
 16 Weeks
 12 Weeks
 September 30 July 8 April 15 January
 $93. $92. $95. $108.
 $81. $79. $90.


Short long-term obligations
 debt $4. million. 7 million September 28, 29, 2018.
 Euro Term $2,748 $3,092
. 2024
. Connecticut loan 2023
 Capital lease obligations
 credit borrowings
 long-term obligations $14,863 $5,072


Figure 29. 2016/2018 LTIP Award Grants
 Market-based PRSUs one-third stock options service RSUs. Anstice 2019 canceled termination December 5 2018.
 Market-based PRSUs awarded. final shares earned 0% 150%.
 2019 committee determined payouts 2016/2018 LTIP. stock price SOX.
 stock price performance 89. 93% SOX index 84. 47%. stock price outperformed SOX. 46% payout 110. 93% PRSUs. payouts 2016/2018 LTIP Market PRSUs.
 Target Market-based PRSUs Stock Options Service-based RSUs
 Timothy M. Archer 4,000,000 28,935 34
 Douglas. Bettinger 2,750,000
 Richard. Gottscho 3,250,000 23,509
 Patrick.Lord 1,100,000 7,957
 Vahid Vahedi
 Varadarajan 7,957


. Financial Information
 operations divided Products Licensing Technology Development. Licensing develops sells concepts. revenue sales development licenses.
 engineers scientists collaborate experts technologies potential.-service contracts customers. services. provides research.
 President Chief Executive Officer reports evaluate performance revenue operating income loss.
 table. no significant inter-segment sales December 2019 2018.
 32% 24%, sales outside United States. China 11% revenues no country 10% 2018.
 Products Licensing revenue $44,491,041 $21,949,689
 Technology Development 26,024,674 20,967,556
 Total $70,515,715 $42,917,245
 Licensing $1,807,616 $499,323
 Technology Development 1,507,405 378,212
 $3,315,021 $877,535
 Development $397,296 $379,952
Licensing,285 $273,185
,185 $130,765
,462,525 $418,349


Annual Incentive Plan Opportunities
. FY19 Annual Incentive Target increased 60% 100% May 8 2018. $427,451.
 Target
 Gregory S. Clark 1,500,000
 Nicholas. Noviello 650,000
 Amy. Cappellanti-Wolf 308,000
 Samir 450,000
 Scott. Taylor 600,000


Income Taxes
 equity investments
 Fiscal years March 31, 2018 2017 adjusted ASC 606.
 2017
 Domestic. $95,639 $141,582
 Foreign. 74,792 45,485 9,875
 Total $170,431 $187,067 $9,808


Income Before Taxes
 Included contingent adjustments investment pension postretirement plans actuarial losses interest expense foreign exchange intercompany eliminations acquisition charges.
 increase income Semiconductor Test 2018 2019 sales 5G offset automotive analog test. System Test higher Storage Test. Defense/Aerospace instrumentation Production Board Test 5G demand. increase Wireless Test higher demand millimeter wave cellular test wireless standards 5G lower sales connectivity test. decrease Industrial Automation higher sales marketing engineering spending.
 Semiconductor Test $417. $397. $19.
 System Test.
 Wireless Test. 29.
 Industrial Automation.
 Corporate Other (14.
 $525. $467. $58.


ADVANCED INDUSTRIES. FINANCIAL STATEMENTS
. EARNINGS PER SHARE
 earnings computed income shares. diluted EPS denominator increased additional shares stock options units converted common shares.
 reconciliation weighted-average shares basic diluted earnings per share years December 31, 2019 2018 2017:
 Income operations $56,495 $147,149 $136,101
 noncontrolling interest
 Advanced Energy Industries. $56,461 $147,063 $136,101
 Basic common shares 38,281 39,081
 dilutive stock options restricted stock units
 Diluted shares 38,495 39,352
 Basic earnings per share $ 1. 47 $. 76.
 Diluted earnings.


Debt
 Includes $1,502 million.$1,951 million Canadian $2,314 million.$3,156 million December 2019 2018 issued. paper program hedged. 26, Financial capital management.
 long-term debt lease liabilities $775 million 2019 finance leases $466 million 2018.
 AVERAGE INTEREST RATE DECEMBER 31, 2019
 Notes payable. 03% 1,994 3,201
 Loans trade receivables.
 Long-term debt. 77% 525
 debt 3,881 4,645


 Bell Canada issue notes Canadian U. commercial paper programs $3 billion. exceed $4 billion Canadian equals Bell revolving expansion credit facilities December 31, 2019. total net credit facilities drawn.
 table credit facilities December 31, 2019.
 Bell Canada’s $2. 5 billion $500 million revolving credit facilities expire November 2024 2020 $1 billion expansion credit November 2022. convert advances $500 million term loan one-year term.
 December 31, 2019 Bell outstanding commercial paper $1,502 million U. S. dollars ($1,951 million Canadian dollars. commercial paper debt due one year.
 TOTAL COMMERCIAL PAPER
 Committed
 1,951
 4,106
 non-committed


Vessel Calendar Days fleet.
 Time Charter Equivalent Rate Net Voyage Revenue TCE days.
 change due
 TCE days
 TCE rate.
 decrease disposal ten vessels 2018 three Newbuildings.
 TCE rate increased $8,560. 4%. rates Clarksons Shipping increased. 7% 2019 $31,560 $16,466. influenced Suezmax tanker rates. average TCE impacted rates not. spike first quarter 2020.
 net voyage revenues increased. 5% $124. million to $175. million.
 figures USD except TCE rate
 Voyage Revenue 317,220 289,016 9. 8%
 Less Voyage expenses.
 Net Voyage Revenue 175,450 124,004. 5%
 Vessel Calendar Days 8,395. 9%)
 Less off-hire days 293.
 days 8,102 9,470.
 $21,655 $13,095.
 expenses 8,395 9,747.


Plant Equipment
 Depreciation $61 $56 $55 million 2019 2018 2017.
 January 3 2020 December 28, 2018
 Computers equipment $259 $233
 Leasehold improvements
 Office furniture
 Buildings
 Land
 Construction
 accumulated depreciation amortization


GasLog. Subsidiaries
 consolidated financial statements
 years December 31, 2017 2018 2019
 amounts. Dollars
. Voyage Expenses Commissions
 unemployment off-hire.
 December
 2018 2019
 commissions revenue 6,456 7,555
 expenses 12,819 16,245
 15,404 20,374 23,772


.
 Company global manufacturer devices aerospace appliance automotive construction consumer industrial communications medical transportation industries. April 29, 2018 adopted ASC 606 amendments modified retrospective approach contracts.
 $0. 1 million increase retained earnings. ELECTRONICS. revenue customized goods deferring revenue material rights. impact financial statements immaterial. modified controls risks ASC 606.
 ASC 606 prior periods restated 605. impact changes accounting 2019.
 Fiscal Year Ended April 27, 2019
 Balance ASC 605
 Net Sales $1,000. $1,024.
 Cost Products Sold $734. $758.
 Total Inventories $116. $117.
 Contract Assets.
 Contract Liabilities.
 Retained Earnings $545.1|.


NOTE 6
 collateral security refer note 16. note 8 impairment testing.
 depreciation expense plant operating equipment USD. expense USD 1. 2017: USD. Depreciation impairment losses assets capitalized dry-docking operating expenses.
 2019 2018 2017
 plant operating equipment
 Balance 1 January 5. 8. 6.
 Adjustment transition IFRS 16.
 Additions.
.
 Balance 31 December. 5
 Depreciation
 Balance 1 January.
.
 Depreciation.
 Balance 31 December 3.
 31 December 4.


Cash Flows
 2018 2019
 summarizes net cash flows operating investing financing
 Net Cash Activities
 increased $33. million from $283. million to $317. 4 million 2019. increase $57. 7 million working capital increased cash parties $56. 3 million $20. million payables $4. 6 million trade receivables cash collateral swaps $22. 2 million $28. million total revenues decrease $29. 9 million cash interest decrease $22. 3 million movements.
 Cash Investing Activities
 decreased $250. million from $693. to $443. million 2019. $203. million increase $45. 5 million short-term investments increase $0. 8 million interest income.
 decreased $318. million from $368. to $50. $316. million bank loan repayments.GasLog decrease $60. 4 million unit $46. 7 million NOK bond repurchase $26. 6 million $18. 5 million loan costs $15. 4 million dividend $3. 7 million currency $2. 6 million lease liabilities $0. 8 million equity costs decrease $0. 5 million stock option $381. 6 million borrowings.
 Year December 31,
 2019
.
 operating activities $283,710 $317,423 $33,713
 investing (692,999
 financing 368,120


maintain program new product development.
 software engineers products. expertise input sales marketing product management. design manage testing quality assurance. utilize third software developers. skilled labor 24-hour development schedule time to market programming costs.
 phases research development design internal quality assurance testing. focus improving quality assurance testing infrastructure practices. enhancement research quality assurance processes.
 EFT Arcus product hosted by third-party cloud services providers. rely development. perform research development own personnel.
 R&D expenditures profile
 decreased 23% 2019 due to fewer employed software engineers technical personnel.
 Total resources expended for R&D efforts improve develop new products. not measure financial performance GAAP substitute for R&D expense capitalized software development costs. non-GAAP expended R&D limitations.resources expended R&D non-GAAP standard. limitations R&D expense software costs.
 Research Development
 December 31,
 R&D expensed $1,355 $1,883
 Capitalized software development costs $1,074 $1,276
 Total resources expensed R&D $2,430 $3,159


table Adjusted Gross Profit. GAAP
 depreciation amortization goods
 operating costs manufacturing lines Freshpet Kitchens expansion 2016 lines.
 non-cash share-based compensation.
 Twelve Months December
 2017
 Gross Profit $114,197 $89,990 $72,416 $60,371 $54,649
 Depreciation expense 6
 Plant start-up expense
 Non-cash share-based compensation
 Adjusted Gross Profit $121,489 $96,938 $78,450 $66,248 $57,416
 Net Sales 49. 4%. 2%. 5%. 6%


Disaggregation Revenue
 disaggregates States.
 tax. disaggregated. revenues
 December
.
 Tax determination $203,584 $147,847 $114,575
 returns 127,815 91,239 74,454
 Interest income funds 3,213
 returns 334,612 240,141 189,029
 Professional services 24,399 15,126 12,476
 revenue. 359,011 255,267 201,505
. 23,410 16,831 11,654
 $382,421 $272,098 $213,159


Cloud Services Subscriptions
 hosting arrangements outsourced solutions. software third party customer-needed. arrangements subscriptions managed services.
 network fees maintenance technical support costs royalty costs.
 revenues increased $78. 8 million 9. 5% 2019 up 10. 8% $10. 8 million foreign exchange rate changes. Americas $61. 6 million EMEA $14. 7 million Asia Pacific $2. 6 million.
 Cloud services deals greater than $1. 0 million 2019 46 2018.
 increased $19. 8 million labour-related costs $19. 1 million third party network usage fees $1. 3 million. offset other miscellaneous costs $0. 6 million. increased headcount acquisitions.
 gross margin percentage increased 58% from.
Topic 605 Cloud services $901. 5 million June 30 2019 higher $72. 5 million. 7% prior up 10. 1% $11. 0 million foreign exchange rate changes. Americas $56. 4 million EMEA $12. 4 million Asia Pacific $3. 7 million.
 $6. 4 million difference timing differences deferred 606 recognized performed. note 3 Consolidated Financial Statements.
 June 30
 2019 2018 2017
 Americas $616,776 $61,553 $555,223 $70,216 $485,007
 EMEA 206,227 14,707 191,520 40,673 150
 Asia Pacific 84,809
 907,812 78,844 828,968 123,473 705,495
Cloud Services Subscriptions Revenues 383,993 19,833 364,160 64,310 299,850
 Profit $523,819 $59,011 $464,808 $405,645
 Margin 57. 7%. 1%. 5%
 67. 7%
 22. 7%. 1%.
 Pacific 9. 4%.


 Group strong FY19 $836. 3m exceeding EBITDA. Tax payments FY19 lower capital gain sale investments.
 $198. 7m $59. 3m lower completion VHA fibre contract.
 Mobile spectrum capex $352. 4m second instalment Australian 700MHz spectrum 2017. first instalment $597. 3m paid FY18 third instalment $352. 4m payable January 2020. $86. 1m capex incurred FY19 Australian mobile network rollout. expenditure spectrum assets impaired review cessation project.
 mobile network build Singapore FY19 $80. 1m capex $147m.
 Operating cashflow 836. 868.
 Tax (128. (194.
 finance lease payments.
.
.
.
.
 Free cashflow. (316


manufacture products 107 facilities 15 serving business segments. table shows facilities geographic region business segment structure
 own majority facilities. Some secured. lease balance smaller. general purpose buildings specialized machinery. low density air cellular foam protective mailer products freight savings near customers distributors.
 occupy facilities sales distribution
 U. S. foreign countries. Some leased.-alone facilities leased. global headquarters Charlotte North Carolina. Operations.
 manufacturing warehouse office facilities well maintained suitable adequate.
 Region Food Care Product Care
 North America 44 10 37
 Europe Middle East Africa 29 11
 South America
 Asia Australia New Zealand
 Total 107 36


 March 31, 2019 obligations-cancellable leases debt interest Note 3 Note 15 European social security pension post-retirement benefits inventory fixed asset acquisition construction
 Note 3. Customer Capacity Agreements maximum debt repayment.
 benefit payments 2029.
 additional $2. 9 million expenses timing.
 Contractual obligations Year 1 2 - 3 4 - 5
 Debt $305,927 $28,430
 Interest obligations 28,200 6,326
 Operating lease obligations 48,311 10,898
 Pension post-retirement benefits 94,178 6,758 15,184 18,024
 Employee separation liability 7,640
 Restructuring liability 2,181 1,869
Purchase 31,468
 Capital lease 2,049
 Anti-trust fines settlements 34,880
 $554,834 $109,048 $112,111


. Registrant's Equity Purchases
 August 18 2004, common stock Market. high low sales prices share.
 March 3 2020 last sales price $8. 64 share.
 197 stockholders.
 Fourth Quarter $11. $9.
 Third $14. $10
 Second $20. $12.
 First $18. $8.
 Fourth $12. $7.
 Third $20. $10
 Second $18. $6
 First $7.


. Accounts Receivable
 2017 provision doubtful accounts $1. 2 million. 1 million. 5 million.
 2019 reduction reserve product returns. 1 million. 2018 2017. 3 million $2. 1 million reserve product returns. write-offs uncollectible accounts.
 receivable $80,032 $52,850
 doubtful accounts (2,584
 product returns (1,075)
 $76,373 $49,510


Semiconductor IP Licensing Segment
 Excludes expenses.
 revenue 2019 $81. 9 million $186. 4 million 2018 decrease $104. 5 million. Samsung settlement offset new license agreement.
 Years Ended December
 Revenue
 Royalty license fees $81,943 $186,425 $205,809
 expenses
 Research development costs 28,732 27,514
 Litigation 3,471
 Amortization
 operating expenses 44,074 73,519
 income $37,869 $112,906 $117,971


6. Selected Financial Data
 tables financial data. cash 2019 2018 2017 Annual Report Form 10-K. 2016 2015 derived statements not. read consolidated financial statements notes Item 7. Discussion Analysis Financial Condition Results Operations.
 Years Ended December 31,
 2019 2018 2017 2016 2015
 Net sales. $3,063,117 $2,244,044 $2,941,324 $2,904,563 $4,112,650
 Gross profit 549,212 392,177 548,947 638,418 1,132,762
 Operating (loss) income. (161,785) 40,113 177,851 (568,151 730,159
 Net income (114,933) 144,326 (165,615) (416,112 593,406
 Net income per share
. $1.$5.
. $5.
 dividends share.
 cash
 $174,201 $1,340,677 $206,753,209)
 (362,298 (682,714) (626,802) 144,520,177
 financing
 74,943 255,228 192,045 (136,393 101,207
 equivalents. $1,352,741 $1,403,562 $2,268,534,347,155,126,826
 securities. 811,506 1,143,704 720
 assets. 7,515,689 7,121,362,864,501,368,360,392
-term debt 471,697 466,791
 liabilities 2,418,922 1,908,959 1,765,804,996
 stockholders’ equity.,096,767,212,403,697,218,349,396


Goodwill
 arises from acquisition excess purchase price over fair value net. values based preliminary valuations estimates change acquisition.
 table changes carrying amount goodwill
 performs annual goodwill impairment assessment October 31st two-step. one identification potential impairment. fair value unit carrying amount.
 If fair value exceeds carrying amount not impaired second step unnecessary. If exceeds second step impairment loss.
 no indications impairment goodwill. October 31, 2019. test impairment. December 31, 2019 no indications impairment goodwill balances.
 Years Ended December 31,
 Beginning balance $238,330 $237,992
 Adjustments
 Ending balance $238,330


Liquidity Capital Resources
 Note 1 Financial Statements liquidity.
 Cash.
 used $13. 5 million cash 2019 $5. 2 million 2018. funded $4. million capital expenditures $3. 3 million. capacity expansion Golden Ridge leasehold improvements Riverside specialty equipment Dillon plant. $19. 4 million common stock prefunded warrant $2. 2 million option warrant exercises.
 December 31, 2019 cash balance $8. 4 million $7. million. 2 million restricted cash 2018. capital reserves borrowing capacity seek external funding.
 Cash flow
 Loss
 Adjustments
 Depreciation amortization
 Stock share compensation
 Settlement Sellers Golden Ridge
 Provision bad debts
 Changes assets liabilities
 Accounts receivable
Inventories 332
 Accounts expenses
 Commodities (1,340
 (235)
 Net cash(13,450,241)


Item 6. Financial Data
 table financial data last five fiscal years. consolidated financial statements notes Item 15 Annual report. acquired companies including NetSuite Inc. 2017. included financial statements contributed revenues income earnings assets.
 net income diluted earnings impacted 2019 2018 U. S. Tax Cuts Jobs Act 2017.
 Working capital assets decreased 2019 due $36. 1 billion repurchases common stock dividend payments offset 2019 income. Working capital total assets increased 2015 to 2018 due issuances long-term senior notes $10. 0 billion 2018 $14. 0 billion 2017. offset by repurchases dividend payments 2015 2018. assets affected repayments notes payable borrowings.
notes payable borrowings decreased 2019 due repayments short-term borrowings senior notes. increased 2015 2018 due 2018 long-term senior notes $10. 0 billion short-term borrowings $2. 5 billion 2017 $14. 0 billion $3. 8 billion 2016 borrowings $3. 8 billion. Note 7 Financial Statements.
 consolidated financial data years 2018 2017 restated Accounting Standards Update. 2014-09 Revenue Contracts Topic amendments 2015-14 2016-08 2017-07 Compensation—Retirement Benefits Net Pension Costs Postretirement Benefit Costs. Note 1 Financial Statements adjustments Topic 606 ASU 2017-07. data years May 31, 2016 2015 not updated Topic 606 ASU 2017-07.
 May

 2018 2015
 Operations
 revenues $39,506 $39,383
 Operating income $13,535 $13,264
 Net income $11,083 $3,587 $9,452 $8,901 $9,938
 Earnings $2.
 shares 3,732 4,238,217 4,305
 dividends $0.
 Balance Sheets
 Working capital $27,756 $57,035 $50,995 $47,105
 assets $108,709 $137,851 $136,003 $112,180 $110,903
 borrowings $56,167 $60,619 $57,909 $43,855 $41,958


Fair Value Measurements
 Liabilities
 contingent earn-out liabilities measured fair value. Level 3 inputs. probability-based approach discount rate. change value. Changes reflected operating expenses statements.
 changes Level 3 contingent liabilities
 May 2019 settled Del Monte earn-out liability $200. long-term liabilities $7,957 $2,792 December 27, 2019 28, 2018 reflected liabilities deferred credits balance. short-term accrued liabilities. payments acquisition date operating activities financing activities.
 Del Monte Fells Point Bassian Other Acquisitions Total
 Balance December 29, 2017 $649 $4,579 $5,228
 Acquisition value 1,414
 Cash payments (3,000
value 2,070 1,448
 Balance December 2018 3,649 1,441 5,090
 Acquisition 7,450 7,929
 Cash payments
 3,895 5,879
 Balance December 27, 2019 $2,197


Income Taxes
 expense December 22, 2017 Tax Reform Act law. reduced federal corporate income tax rate 35% to 21%. fourth quarter 2017 recorded one-time noncash tax benefit $110. million revaluation deferred income tax assets liabilities Reform Act.
 December 31,
 $39. $35. $10.
.
.
 50. 45. 16.
 Deferred.
 (8. 9
.
 income tax expense (benefit $41. $37. $(61.


ASC Topics 606 340-40 adoption
 gross margin loss operations before income taxes affected adjustments.
 impact Consolidated Statements Loss limited effects "Net loss.
 Fiscal Year January 31, 2019
 Impact adoption ASC 606 340-40 adjusted
 Net revenue
 Subscription $1,802. $1,785.
 Maintenance 635. 5 640.
 132. (11 121.
 Cost revenue
 subscription maintenance 216. 215.
 54. 55.
 Operating expenses
 Marketing sales 1,183. (17. 1,166.
 Provision income taxes (38.
 Net loss(80.
 Basic net loss per share.
 loss share.


Reconciliations. federal tax rate loss expense
 no liabilities uncertain income tax positions December 31, 2019 2018. returns comply. federal tax regulations authorities may contrary. tax position challenged adjustment.
 Ended December 31
 2018
 Income tax benefit federal rate $(2,928) $(1,692)
 Increase
 State tax benefit federal tax effect
 change state tax rate
 Change valuation allowance
 Expirations net operating losses IRC 382 limitation
 Adjustments to deferreds
 Income tax expense


table summarizes purchase commitments manufacturers
 commitments decreased 23% 2018. decreased 24%.
 Inventory supply chain management inventory obsolescence. inventory commitments appropriate revenue levels.
 Commitments Period July 27, 2019 July 28, 2018
 1 year $4,239 $5,407
 1 to 3 years
 3 to 5 years
 $4,967 $6,477


Unearned Revenue
 subscription SaaS recognized over. allocated license software maintenance reclassified.
 maintenance contracts recognized over duration. contractual term January 31, 2020 two years. professional services revenue prepaid services recognized performed.
 January 31, 2020 February 1,2019
 license revenue $19 $15
 subscription SaaS revenue 1,534 916
 software maintenance 6,700
 professional services 1,015 767
 Total $9,268 $7,439


Adjusted earnings share
 divided average shares.
 IFRS profit Note 10.
 Profit equity holders IFRS (£m) 166. 6 223.
 Items excluded profit 37. 7 (34.
 Tax adjusted items (£m) (8. 5) (5.
 Adjusted profit equity holders 195. 8 183. 9
 Weighted average shares (million 73. 7 73. 6
 earnings 265. 250.
 73.
 264. 249.


Recast segment changes.
-to improvements margins pre-tax income shift higher-value offerings resources increased benefit currency global delivery model.
 December 31 2018 2017. Margin Change
 gross profit $4,448 $4,033.
 margin. 8%.
 Pre-tax income $1,629 $1,303.
 margin. 6%.


table summarizes restricted stock-based award activity performance Oracle three fiscal years May 31, 2019
 total value awards vested issued 2019 2018 2017 $1. 3 billion $1. billion $715 million. May 31, 2019 unrecognized stock-based compensation expense non $2. 8 billion expected recognized. 68 years.
 No PSUs granted 2019 2018. 2017. 7 million PSUs granted performance metrics. participants 150% target PSUs no PSUs. 2019. 4 million PSUs vested. 3 million outstanding May 31, 2019.
 Restricted Stock-Based Awards
 Weighted-Average Grant Date
 May 31, 2016.
 Granted.
.
 Vested Issued.
.
.
.
.
.
.
.
Vested Issued $41.
 $42.
 May $43.


 Revenue headquarters
 ship products locations headquarters supply chain operations. production facilities subcontractors warehouses. China 53% 57% 51% Taiwan 13% 13% United States 11% 12% 14%.
 2019 2018
 United States $12,451  $17,116  $11,359
 Mainland China 3,595 3,607 1,539
 Taiwan 2,703 3,918 2,892
 Hong Kong 1,614 1,761 1,429
 Asia Pacific 1,032 1,458 1,078
 Japan 1,265
 1,053 1,266
 $23,406 $30,391 $20,322


. INVESTMENTS
 Marketable Securities
 policy diversification capital preservation liquidity cash flow.
 summary investments cash equivalent December 31, 2019
 Amortized Unrealized Gains Losses Fair Value
 Current assets
 Cash $67,818
 equivalents
 Money market funds 126,075
 Corporate bonds 1,000
 Agency bonds 6,485
 Commercial paper 9,609
 Certificates of deposit
 US treasury securities 4,749
 cash equivalents 148,089
 equivalents 215,907
 Short-term investments
 Corporate bonds 103,130
 Agency bonds 3,966
 US treasury securities 50,703
 Commercial paper 23,827
 Certificates of deposit 3,936
-backed securities 15,837
 short-term investments 201,399
-term
 Corporate bonds 19,407
 treasury securities 19,300
-backed securities 11,693
 Strategic investments 9,750
 long-term investments $60,150


2017
 initiated restructuring complexity reduced headcount closed facilities. completed 2019 cost $289 million.
 restructuring transition costs
 2018 $29 million impairment charge land buildings.
 March 29, 2019 restructuring liabilities not significant.
 2018 31, 2017
 Severance termination benefit costs $28 $61 $76
 exit disposal costs 15
 Asset write-offs
 Transition costs 196
 restructuring $241 $410


return on plan assets €125 million/ 18 €45 million.
 2019/20 expects employer payments pension providers €18 million employee contributions €9 million Netherlands Belgium Germany major. Germany not included.
 fair value assets
 Dutch company assets exceeded value commitments closing. overfunding balance sheet reduced €0 IAS 19. 64.
 2018/2019
 Change plan assets
 Fair value beginning period
 defined benefit pension
 Gains/losses assets.
 effects
 Benefit payments. tax
 Settlement payments
 Employer contributions
 participants
 consolidation transfers
 Reclassification IFRS5
 Currency effects
 Fair value assets end period


2019 vs 2018
 Cost revenue decreased December 31, net revenue declining.
 Gross margin decreased. impacted Section 301 tariffs cost inefficiencies new manufacturing locations channel promotional activities foreign exchange headwinds. dollar.
 2018 vs 2017
 Cost revenue decreased improved product margin performance lower warranty expense lower air freight costs.
 Gross margin increased improved product margin lower foreign exchange rate lower air freight costs.
 gross margins improve U. S. inventory not subject Section 301 tariffs. Forecasting difficult risks. cost revenue uncertainties. production import customs duties tariffs competition technology product mix compensation costs royalties freight repair costs manufacturing price variances warranty costs timing sales. revenue paid subscription service plans increase gross margin.fluctuations gross margin factors.
 Ended December 31
 2019 2018 2017
 thousands
 Cost revenue $704,535. $717,118 (2. $731,453
 Gross margin 29. 5%. 3%. 6%


Expense
 consolidated $968 million 2019 $1,152 million 2018. driven Lower non-operating retirement-related costs ($957 million. Higher gains divestitures$833 million Higher net exchange gains ($272 million. hedging programs mitigate currency impacts.
 $1,431 million 2019 increased $1,010 million prior. lower non-operating retirement costs.
 December 31 2019 2018. Percent Change
 Foreign currency transaction losses $(279).
/losses derivative instruments.
 Interest income.
 Net/losses securities investment assets.
 Retirement-related costs.
 expense $1
 Non-operating adjustments
 Amortization acquired intangible assets.
Acquisition charges
 Non-operating retirement costs (1,572.
-GAAP expense(1,431).


2017 acquisitions
 August 1, 2016, acquired stock Blue Coat. web security solutions enterprises. addition cloud security enhanced threat.
 February 9, 2017 acquisition LifeLock. proactive identity theft risk management. services monthly annual notification identity events.
 acquisitions
 Blue Coat LifeLock
 Goodwill $4,084 $1,397 $5,481
 Intangible assets 1,608 1,247 2,855
 Net liabilities (1,019),380
 purchase price $4,673 $2,283 $6,956


included Adjusted EBITDA report key measure management operating performance generate future plans strategic decisions capital investments new markets. use non-GAAP financial measures performance measures under executive bonus plan. exclusion of expenses Adjusted EBITDA facilitates comparisons operating performance excludes items core performance. Adjusted EBITDA provides useful information investors operating results.
 Adjusted EBITDA limitations not substitute for analysis financial results GAAP. limitations depreciation amortization non-cash charges assets reflect cash capital requirements reflect changes cash requirements working capital needs reduction cash other companies calculate EBITDA differently reduces usefulness.
 consider Adjusted EBITDA alongside other GAAP-based financial performance measures net income financial results. table reconciliation Adjusted EBITDA to net income for.
 December
 EBITDA
 income $53,330 $21,524 $29,251 $10,154 $11,768
 Interest (8,483
 taxes 5,566 4
 Amortization depreciation 22,134 17,734 6,490
 Stock compensation 20,603 13,429
 Acquisition expense 2,403
 Litigation 12,754 45,729 7
 adjustments 54,977 71,557 42,377 38,880
 EBITDA $108,307 $93,081 $71,628 $49,034 $34,370


components income tax expense
 tax uncertain tax positions freight taxes. provisions 12 months trading activity.
 reviews freight tax obligations update information. legal advice. Freight tax regulations change amounts change. tax years 2008 through 2019 open examination major jurisdictions.
 Year Ended
 December 31,
 2019 2018 2017
 Current (25,563) (17,458) (11,997
 Deferred (2,266)
 Income tax expense (25,482) (19,724) (12,232)


Fees Billed Ernst & Young LLP
 table fees EY audit services 2019 2018.
 Figure. FY2019/2018 Fees
 Audit Fees financial. reviews audit control financial reporting Sarbanes-Oxley Act.
 Audit-Related Fees. due diligence accounting consultation acquisition Coventor,. 2018 information systems audit 2019.
 Tax Fees tax planning compliance foreign tax compliance audits.
 audit committee reviewed services 2019 non-audit services independence EY accounting. approved 100% services amounts EY 2019.
 AuditFees(1) 4,703,830 4,605,495
 Audit-RelatedFees(2) 27,000 90,500
 TaxFees(3) 194,170 34,888
 AllOtherFees
 TOTAL 4,925,000,883


table details percentage properties internal external valuations
 Group obtained external valuations 31 freehold properties 2019 19. valuations Directors’ valuations 2019 2018. 51% freehold properties 2018: 43%.
 External
 2019
 Leasehold 23% 77%
 Freehold 38% 62%
 2018
 60% 40%
 Freehold 27% 73%


Earnings per share computed
 average shares decreased repurchase common stock Dutch auction offer stock repurchase program October 29, 2018.
. Earnings
 Year December 31,
 diluted earnings share
 Net income $13,267 $3,654
 average shares 17,424 20,721
 shares
 Stock options awards 1,101
 diluted earnings share 18,525 21,017
 Net income share.
.


. Capital risk management
 objectives safeguard support sustainable growth provide returns benefits maintain optimal capital structure value.
 Capital equity external debts borrowings notes payable. dividends return issue shares repurchase raise debts.
 monitors capital debts adjusted earnings ratio health liquidity. total debts/adjusted EBITDA ratio
 EBITDA profit interest income gains depreciation property right-of-use assets amortisation intangible assets compensation expenses.
 31 December
 Borrowings 126,952 114,271
 Notes payable 93,861 65,018
 debts 220,813 179,289
 Adjusted EBITDA 147,395 118,273
 EBITDA ratio.


21.
 revenue facilities.
 December 31,
 2019
 United States 175,855,463
 Europe 165,602 126,203
 Asia 476,624 818,194
 818,081 1,283,860


Cost Revenue
 $29. 3 million increase license subscription revenue attributable $14. 9 million personnel expenses $8. 6 million cloud infrastructure costs $3. 3 million royalties $1. 8 million professional services $0. 9 million amortization software intangible assets.
 Cloud infrastructure costs include $9. 5 million hosting costs 2018. consistent.
 anticipate higher cost license subscription revenue cloud operations. maintenance revenue increased $1. 7 million due personnel term perpetual license customers.
 revenue if infrastructure costs $9. 5 million reclassified. third-party consultants increased $3. 2 million personnel expenses $2. 8 million.
 781 professional service 198 technical July 31, 2019 838 2018.
 % total
 Cost revenue
License subscription 64,798 35,452 5% 29,346
 Maintenance 16,499 14,783
 Services 243,053
 revenue $ 324,350 45% 296,783 27,567
 stock-based compensation
 license subscription $ 3,011
 maintenance 1,820
 services 22,781 21,856
 $ 27,612 24,744 2,868


. Current liabilities trade payables
 policy
 liabilities goods services unpaid. short-term measured amortised cost not discounted. unsecured paid 30 days recognition.
 Deferred consideration
 acquisition deferred. measured present value estimated liability.
 US
 Trade payables 3,492 2,016
 Deferred consideration
 Other payables 11,898,488
,278


INCOME
 components
 derivative instruments risks enhance returns portfolio diversification. Gains losses derivatives recognized.
 2019 Interest dividends increased higher yields fixed-income. Interest expense decreased long debt higher finance lease expense. gains decreased lower gains equity. gains foreign exchange interest rate derivatives.
 2018 Dividends interest increased higher portfolio balances yields fixed-income. Interest expense increased long-term debt finance lease expense. gains decreased higher losses gains equity. losses decreased lower losses equity foreign exchange commodity losses.
 Interest dividends income $ 2,762 2,214 1,387
 Interest expense (2,686) (2,733)
 gains investments 648 2,399 2,583
gains derivatives (187)
 losses (218) (111)
 (251)
 $ 729 1,416 876


. Quarterly Results
 unaudited quarterly results eight quarters March 31, 2019. adjustments results. add total
 Note 11 Income Taxes one-time transition tax third quarter 2018. Note 4 Special Charges. Note 12 Debt Credit Facility loss settlement debt $4. 1 million second. 2 million third $8. million fourth $13. million $2. 1 million first third quarter 2018. Note 5 Investments impairment-sale securities fourth quarter 2018.
 2019 First Second Third Fourth
 Net sales $1,212. $1,432. $1,374. $5,349.
 Gross profit $642. $689 $2,931.
 Operating income $132. $714.
 income operations $35.
 income common share $0.. 70.


table restructuring activities Statements 2019 2018
 non-cash $1. 9 million 2018 sharebased compensation.
 operations
 $ 60. $ 13. $ 14.
 Restructuring charges 41. 47. 12.
 charges operations 102. 61. 26.
 discontinued operations.
 $ 102. $ 61. 28.
 Capital expenditures $ 3. $ 1. 21.


NOTE 21 QUARTERLY FINANCIAL INFORMATION
 summarizes quarterly operations data 2019 2018. results not indicative future. unaudited interim financial statements recurring adjustments. results financial statements notes.
 net income 2019 first third fourth quarter gain legal settlement $13. 3 million $2. 5 million $2. 5 million. legal provision $19. 1 million patent infringement reversed fourth quarter. Note 19 Legal Proceedings. net loss 2019 second quarter $2. 0 million extinguishment debt. Note 10 Financing Arrangements. investment Smart Driver Club impairment $5. million. Note 9 Assets.
 net loss 2018 first quarter provision $6. 1 million. second third quarter gain legal settlement $15. 0 million $13. 3 million. Note 19 Legal Proceedings.
First Second Third Fourth
 Revenues 94,888 96,037 88,495 $84,380 $363,800
 profit 38,091 39,821 36,381 33,471 147,764
.
 Net income 8,511 11,263 18,398
 share.
 Fiscal 2018
 Third Fourth
 Revenues $88,081 $89,767 $93,669 $94,395 $365,912
 profit 37,443 36,838 38,187 38,422 150,890
 margin. 8%.
 income (2,654) 12,232 11,806 (4,767) 16,617
 diluted share.


Consolidated Statements Operations Data
 table consolidated statements operations periods millions percentage net revenues cost revenues
 March 2019 2018 income tax expense $35 million. statement operations December 31, 2018 revised correction. Note 2 financial statements Item 8 Annual Report Form 10-K.
 loss extinguishment debt financing December 31, 2018. $25 million premium payment $15 million write-off unamortized discount deferred financing costs.
 Ended December
 Net revenues
 Product sales $1,975 $2,255
 Subscription licensing revenues
 Total revenues 6,489
 Costs expenses
 sales
 costs
 Software royalties amortization intellectual property licenses
 licensing
 operations distribution costs
Software royalties property licenses 233 399
 Product development 998 1,101
 Sales marketing 926 1,062
 732 822
 Restructuring costs 132
 expenses 4,882 5,512
 Operating income 1,607 1,988
 Interest
 Loss extinguishment debt
 tax 1,633 1,877
 expense 130
 income $1,503 $1,848


Accounts Receivable Net
 January 31
 Autodesk adopted ASU No. 2014-09 Contracts Customers Accounting Standards Topic 606) first quarter 2019. current year balances ASC Topic 606 prior year 605. Note 1 Accounting Policies Standards.
 Allowances uncollectible trade receivables loss patterns potential risk.
 Autodesk partner incentive program monetary rewards distributors resellers. incentives reduce maintenance revenue. remainder reduction deferred revenue. incentive balances assumptions judgments. reserves accounts receivable accounts payable
 million 2019
 Trade accounts receivable $526. $469.
 Allowance doubtful accounts.
 Product returns reserve.
 Partner programs obligations.
 Accounts receivable net $474. $438.


Net debt
 provides information financial liabilities.
 financial asset derivatives reduced net debt. derivatives non-current. expanded definition.
 excess total financial liabilities trade payables cash equivalents current assets non derivatives.
 Restated IFRS 16. note 1 24 details.
 Total financial liabilities (28,257),738
 Current (4,691)
 Non-current (23,566),125
 Cash equivalents balance sheet 4,185
 cash flow statement 4,116 3,090
 bank overdrafts deducted
 Other current financial assets 907
 Non-current assets derivatives liabilities
 Net debt (23,051) (22,634)


GreenSky. FINANCIAL STATEMENTS States Dollars
. Quarterly Consolidated Results
 quarterly results eight quarters December 31, 2019. GS Holdings predecessor operations. May 24 2018 December 31, consolidated GreenSky. subsidiaries. diluted earnings share Class A common stock May 24, December 31, Reorganization Transactions IPO. GreenSky. formation initial capitalization. Note 1 organization 2 earnings share.
-to-date results quarterly.
 December 31, 2019
 Fourth
 revenue $103,700 $138,695 $153,415 $133,836 $529,646
 Cost revenue
 58,037 56,228 64,957 69,358 248,580
 costs expenses 92,212 101,017 123,275 408,693
profit 11,488 46,506 52,398 120,953
 (4,682),779 (8,854,105
 34,727 45,608 88,848
 7,401 39,193 44,075 5,304 95,973
 noncontrolling
 4,502 26,877 29,349 3,265 63,993
 GreenSky. 2,899 12,316 14,726 2,039 31,980
 Earnings share common stock
.
.


Adopted Accounting Standards
 October 2016, Financial Accounting Standards Board issued Accounting Standards Update 2016-16 Intra-Entity Transfers income tax consequences intra-entity transfer. adopted first quarter 2019 retrospective adjustments.
 January 2016, FASB issued ASU 2016-01 Recognition Measurement Financial Assets Liabilities recognition disclosure assets liabilities. adopted first quarter 2019 retrospective method prospective amendments equity securities values. financial statements.
 May 2014, FASB issued ASU 2014-09 Revenue Contracts Customers supersedes revenue guidance. revenue promised goods services. disclosure uncertainty revenue cash flows contracts judgments costs. adopted ASC 606 first quarter 2019 made adjustments. applied contracts.
 effects adopting ASU 2016-16 ASC 606
ASC 606 opening balances August 31, 2018 receivables liabilities increased reclassification rebates pricing adjustments returns. margin deferred sales distributors reclassified retained earnings. tax effects net deferred tax assets recognizing income ASC 606.
 Ending Balance August 30, 2018 ASC 606 Opening Balance August 31, 2018
 Receivables $5,478
 Inventories 3,595
 assets 164
 Deferred tax assets 1,022
 current liabilities 521
 354
 Retained earnings 24,395


Unaudited Pro Forma Information OpenEye
 unaudited data OpenEye statements January 1, 2018. results represent business January 1 2018 future.
 information includes historical statements OpenEye business combination adjustments income taxes amortization expense January 1 2018 transaction fees reclassified January 1, 2018.
 adjustments based information assumptions impact acquisitions information
 Forma
 Year Ended December 31,
 2018
 Revenue $527,550 $451,013
 Net income common stockholders 51,075
 per share $1. 05 $0.
 diluted $1. 02.


Company’s deferred tax assets
 December 31, 2019 federal state foreign losses $256. 8 million $275. 5 million $89. 7 million. federal 2022 state 2020 foreign unlimited. Internal Revenue Code 1986 restrictions losses “ownership. Section 382. cumulative ownership change 50% over three-year. future utilization losses limited. none losses expire annual limitation.
 full valuation allowance against US UK New Zealand Hong Kong Brazil deferred income tax assets as December 31, 2019. assets realized. increase valuation allowance of $. million, $(1. 5) million $6. 8 million for December 31, 2019 2018 2017 due to additional net operating losses.
 Deferred income taxes not on undistributed earnings foreign subsidiaries.undistributed earnings $5. million $3. 1 million December 2019 2018. future state foreign withholding taxes $0. million. 1 million.
 Deferred tax assets
 Accrued expenses $2,427
 intangible 25,178
 Net operating loss 81,575
 Stock-based compensation,398
 lease liabilities
 Deferred revenue 3,258
 deferred tax assets 150,217
 33,302
 Prepaid expenses deferred commissions
 right-of-use assets
 deferred tax liabilities (32,257)
 Net deferred tax assets $1,045 $1


 Group strong cash generation 2019 profit working capital management.
 trade receivables reduction inventory growth payables supplier payment terms.
 Free cash flow 2019 doubled $100. 1 million $50. 9 million 2018 123 per cent adjusted earnings 77.
. IFRS 16 2019 lease payments.
 net outflow $5. 5 million $3. 6 million.
 Tax payments $5. 6 million 2019 consistent $5. 7 million. Net capital expenditure $11. 9 million $10. 6 spend $1. 3 million investment 5G. management.
 IFRS 16 lease liabilities separately cash flow. no impact cash flow.
 final dividend interim dividend $28. 6 million paid. $54. million 2018 special dividend $29. million. 4. million shares purchased Employee Share Ownership Trust $8. 6 million.5 million shares $2. 5 million $1. 9 million cash navigation.
 closed $183. million 31 December 2019 $121. 6 million 2018. no bank debt.
 Cash flow 124. 65
 Tax.
 cash inflow 119. 60
 Interest.
 capital expenditure.
 lease liabilities.
 Lease payments.
 Free cash flow 100. 50


year 2019 activity stock plans
 2 3 PSUs granted adjustments 2018 2017.
 June 30, 2019 $8. 6 billion unrecognized compensation costs stock awards. 3 years. grant-date fair value $107. $75. $55. 2019 2018 2017. vested $8. 7 billion $6. 6 billion $4. billion.
 Average Grant-Date Fair Value
 Nonvested balance.
.
.
.
 Nonvested balance end year.


Issuer Purchases Equity Securities
 March 2011, Board Directors approved stock repurchase program $1. 5 billion common stock. December 2017 approved additional repurchase program authorized $2. 0 billion.
 three months December 31, 2019 repurchased 93,654 shares $19. 6 million 2011 Buyback. no repurchases 2017 Buyback. repurchases 2011 Buyback.
 Repurchases
 Average price paid share weighted.
 2011.
 repurchased 14. 1 million shares $1. 4 billion. manage remaining $2. 1 billion market conditions. fund repurchases cash borrowings facilities. Purchases Programs subject cash.
 management authorized purchase shares open market purchases privately negotiated transactions not market prices subject market conditions.open market purchases plans Rule 10b5-1 Exchange Act securities laws repurchase shares insider trading laws trading blackout. programs.
 Shares Purchased Average Price Paid Share Shares Announced Plans Approximate Dollar Value Shares
 millions
 October 1, 2019 - 31, 2019
 November 1, 2019 30, 42,800 $209.
 December 1 2019 31, 50,854 $209. $92.
 Fourth Quarter 93,654.


 January 1 2019 reporting wholesale subscribers retail market. 2018 subscribers.
 IPTV activations decreased. 4% 2019 maturing Fibe TV market slower higher Alt TV activations.
 satellite TV losses improved 4. 3% lower deactivations mature subscriber base.
 activations decreased 71. 9% 2019 lower IPTV activations losses.
 IPTV subscribers December 31, 2019 1,767,182 up 5. 5% 1,675,706 2018.
 satellite TV 1,005,282 down. 8% 1,090,705.
 2,772,464. 2% increase 2018.
 subscriber activations. 9%)
 IPTV 91,476. 4%
 Satellite.
 retail subscribers 2,772,464,766,411.
IPTV 91,476.
 Satellite 1,005,705.


tax expense
 table explains differences expected tax expense geographical split profits local tax rates total tax expense.
 deferred tax asset recognition Luxembourg Spain pages 140 141
 2018 closing tax audits Germany Romania
 Includes €42 million credit 2017 Vodafone India Idea Cellular
 2019 2018 2017
)/profit before tax consolidated income statement (2,613) 3,878
 expected income tax/expense
 Impairment losses no tax effect
 Disposal Group investments
 taxation associates joint ventures profit tax
 deferred tax assets losses Luxembourg
 Deferred tax revaluation investments
 unrecognised temporary differences
 Current differences
 Adjustments prior year tax
 Revaluation assets tax
tax credits taxes
 Deferred tax overseas 26
 deferred tax balances 2,755
 Financing costs 67 23 25
 Expenses 61 72
 Income tax 1,496 4,764


. Financial instruments
 assets
 2019 2018
 £m
 receivables 18 24. 25.
 Accrued income.
 receivables.
 Cash equivalents 19.
 59. 56.


. Financial instruments risk management
 Exposure credit risk
 assets risk
 Managing liquidity risks
 financial obligations.
 cash equivalents obligations. monitors cash inflows trade receivables contract assets outflows. excludes extreme circumstances.
 Concentrations arise counterparties business. indicate performance.
 excessive policies diversified portfolio. credit risks controlled managed.
 non-derivative financial liabilities trade payables settled three months. 30 June 2019 carrying cash flows $25,153,000 (2018 $33,978,000).
 Cash equivalents 21,956 33,045
 Trade receivables contract assets 22,989 28,710
 commission asset 114,078 102,920


Intangible assets
 RIGHTS LICENCES
 licences NEXTDC indefinite useful life carried cost less impairment losses review annually.
 licences cost less accumulated amortisation impairment losses. recognised estimated useful life. reviewed annual reporting.
 INTERNALLY GENERATED
 capitalised cost less accumulated amortisation. life two to three years. potential impairment reviewed financial year.
 SOFTWARE UNDER DEVELOPMENT
 Costs developing products acquiring software licenses capitalised. materials employee costs.
 recognised technical feasibility use.
 Rights licenses Internally generated software under development
 30 June 2019
 12,961 16,284 29,259
 Accumulated amortisation
 amount 7,381 16,284 23,678
30 June 2018
 net book 1 July 2017 8,538
 acquired 5,253
 1,256
 Amortisation
 Transfers 7,563
 classes
 Disposals
 Closing net book 6,385 6,509 12,907
 30 June 2018
 9,555 6,509 16,168
 Accumulated amortisation
 Net book 6,385 6,509 12


. Earnings Share
 weighted-average shares basic diluted earnings
 2019
 millions
 338 350 355
 impact share-based compensation arrangements
 Diluted 340 358


Deferred Compensation Plan
-qualified. contribute salary commissions IRS limits 401. securities Rabbi Trust. assets liabilities
 April 26, 2019 April 27, 2018
 assets $ 35 $ 31
 liabilities
 Accrued expenses $ 6
 long-term liabilities $ 29 $ 25


 write-down £0. 7m (2018 £3. 5m. £5. 1m (2018 £4. 8m reduced £4. 4m (2018 £1. 3m.
 12 months £13. 4m (2018 £11. 2m.
 no difference Financial value replacement cost. pledged security.
 Raw materials consumables components 72.
 progress.
 Finished goods.
 inventories 185.


performance rights-plan hires employees strategic direction. offered
 Executives intellectual property
 executives
 Middle management top talent small grants two years.
 retention rights performance measures talent two years.
 rights employees. service condition performance measures.
 table summarises outstanding rights
 2019 2018
.
 Outstanding start 10,692,594 6,737,076
 Granted 4,465,617 5,691,731
 Vested (182,601) (586,663)
 Lapsed (1,497,852) (1,149,550)
 Outstanding end 13,477,758 10,692,594


 reported adjusted fell 1% Consumer business offset price reductions Openreach declines enterprise businesses fixed voice low margin. negative £35m foreign exchange revenue fell. 9% exceeds expectation 2%.
 details revenue customer unit pages 40 41. Note 6 financial statements breakdown revenue product service categories.
 Operating costs
 down 2% depreciation down 1%. driven restructuring lower payments telecommunications operators Global offset recruiting training.
 cost transformation programme. c4,000 roles removed Global Services Corporate Units. annualised benefit £875m cost £386m. Note 7 operating costs.
.
 depreciation amortisation.
 31 March
 Revenue 23,428
 Operating costs,461
 Depreciation amortisation
 Operating profit 3,421
finance (756)
 Associates ventures
 Profit tax 2,666 2,616 2,354
 (507)
 2,159


Derivative Gains Economic Hedges Cash Flows Results
 Derivatives commodity price foreign currency risk not hedge accounting. provide economic hedges transactions. recognized fair market value gains losses corporate expenses. gains recognized operating results. derivative gains losses segment operating results.
 net derivative gains (losses economic hedges commodity consumption foreign currency risk
 May 26, 2019 cumulative net derivative gains economic hedges $1. 4 million. gains $1. 0 million $0. 4 million. reclassify segment operating results gains $0. 9 million 2020 $0. 5 million 2021.
 Consolidated Financial Statements Fiscal Years Ended May 26, 2019 27, 2018 May 28, 2017
 Net derivative gains (losses.$0. 6
 gains reporting segments (1. 8) (7. 5.
 corporate expenses $(1. 8) $6. 2 $(5.
 Grocery Snacks $(2. $3.
 Refrigerated Frozen (1. 3)
 International 2. 8 (6. 9).
 Foodservice.
 Pinnacle Foods.
 Commercial.
 operating profit $(1. 8) $(7. 1) $5.