ADG revenues up 3. 3% 8% offset selling prices 5% product mix.
 AMS revenues increased. 1% Analog Imaging. 5% prices higher volumes 7%.
 MDG revenues increased. 9% Microcontrollers higher selling prices 6% higher volumes 2%.
-over fourth quarter revenues increased 4. 0%. ADG revenues decreased. 5%. lower selling prices 4% volumes flat. less product mix.
 AMS revenues grew. 9% Analog Imaging. higher selling prices 18%
 offset lower volumes 8%. MDG revenues increased. 6% Microcontrollers. higher selling prices
 improved product mix.
 December 2019 Year-Over-Year
 Automotive Group $924 $894. 3%.
Analog MEMS Sensors Group 1,085 968 988.
 Microcontrollers Digital ICs 742 689.
 revenues $2,754 $2,553 $2,648.


income decreased $3. million $24. 7 million $27. 7 million. Adjusted EBITDA increased $14. 8 million $75. 7 million $60. 9 million. acquisition GrayWolf.
 Marine Services decreased $2. 9 million $2. 6 million $0. 3 million. EBITDA decreased $2. million $30. 7 million $32. 7 million.
 decline income equity investees lower revenues losses SBSS lower vessel utilization.
 higher profit improved profitability offshore renewables improved vessel utilization. impacted higher costs power project.
 Energy income increased $5. 1 million $4. 2 million loss $0. 9 million. EBITDA increased $11. 5 million $17. 0 million $5. 5 million.
increase Adjusted EBITDA driven AFTC 2019 higher revenues acquisition ampCNG stations growth CNG sales. higher selling administrative expenses.
 Net income decreased $6. million $1. 4 million $4. 6 million. Adjusted EBITDA decreased $1. 9 million to $3. 4 million $5. 3 million.
 due decline revenue call termination margin long distance market offset compensation expense headcount bad debt.
 income decreased $65. 4 million $0. 2 million $65. 2 million. Adjusted EBITDA decreased $3. 1 million $11. 8 million $14. 9 million.
 fewer expenses Pansend holding company. reduction costs BeneVir sold.
 Net loss decreased $16. 0 million to $18. 5 million from $34. 5 million.EBITDA loss Broadcasting segment December 31, 2019 decreased $10. 6 million to $6. 3 million from $16. 9 million.
 driven reduction costs exited markets offset higher overhead expenses growth Broadcast stations.
 Net loss 2019 increased $5. 7 million to $87. 6 million from $81. 9 million. EBITDA loss decreased $8. million to $17. 9 million from $25. 9 million.
 attributable reductions bonus expense administrative expenses.
 Construction $ 75. $ 60. 14
 Marine Services.
 Energy.
 Telecommunications.
 Core Operating Subsidiaries 126.
 Life Sciences.
 Broadcasting.
.
 Early Stage.
 Non-Operating Corporate.
 Adjusted EBITDA $ 90. $ 44.46.


. Liquidity Capital Resources
 operations objectives require capital investment resources include cash capital markets. cash capital liquidity needs next 12 months.
 future financial performance debt subject future economic conditions financial health factors control. working capital present requirements.
 trade receivables.
 decrease working capital March 31, 2019 increase short borrowings $208. 9 million $152 million overdraft restricted deposits loan installments 12 months.
 Note 2 Note 32 Consolidated Financial Statements.
 March
 Current $351,597 $339,562 $362,477
 liabilities 318,672 239,327 316,101
 Working capital $32,925 $100,235 $46,376


Currencies
 multinational Company transactions currencies. uses contracts reduce currency fluctuations. policy prohibits trading no exposures.
 hedges assets liabilities undesignated.
 December 31, 2019 2018 foreign exchange contracts amounts $183. 3 million $157. 3 million. contracts obtained scheduled mature three months.
 risks exchange gains losses offset assets liabilities.
 net foreign exchange positions. dollars
 Amounts receivable payable contracts included assets expenses Consolidated Balance Sheets. December 31, 2019 2018 2017 unrealized foreign currency transactions loss $5. 0 million $8. 0 million $6. 3 million. included income expenses Consolidated Statements Operations Comprehensive Income.
 December 31,
 2019
 Japanese Yen $49.$29.
 Philippine Peso 36. 30. 30.
 Malaysian 20. 20.
 Yuan 20.
 18. 18. 20.
 Koruna 11.
 13.
 currencies 21. 21. 26. 26.
 currencies (4. 4. (7 7.
 $174. $183. $142. $157.


GreenSky. FINANCIAL STATEMENTS States Dollars
. Quarterly Consolidated Results
 quarterly consolidated results eight quarters December 31, 2019. GS Holdings predecessor operations. May 24 2018 December 31, 2018 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.
 December 31, 2018
 Fourth
 revenue $85,326 $105,704 $113,912 $109,731 $414,673
 Cost revenue
 36,130 33,765 35,374 55,170,439
 costs expenses 61,749 58,896 59,655 81,583
profit 23,577 46,808 54,257 28,148 152,790
 (4,973,170 (19,276)
 18,604 42,410 49,087 23,413 133,514
 18,604 40 45,712 22,848 127,980
 interests 18,604 35,266 33,711,143 103,724
 GreenSky. 5,550 12,001 6,705 24,256
 Earnings common stock
.
.


.
 Sales unaffiliated customers
 United States $339,585 $309,495 $297,699
 South Korea
 China 194,653 235
 Japan 180
 Asia-Pacific
 Germany
 Europe,680 171,936 162
 World 57,559 61,379 64
 countries 1,091,055 1,593,078 1,425,612
 $1,430,640,902,573 $1,723


. Earnings Per Share
 computed net income weighted-average shares. Diluted earnings dilutive shares. dilutive effect reflected treasury stock method.
 reconciliation basic diluted loss per share
 adjusted IFRS 15. Note 2.
 fiscal years 2019 2018 2017 9. 6 million 12. 8 million 13. 8 million anti-dilutive shares excluded net loss share.
 Fiscal Year Ended June 30
.
 Net loss ordinary shareholders $(637,621)(113,432) $(37,449)
 Weighted-average shares 238,611 231,184 222,224
 Net loss per
 Basic net loss.
 Diluted net loss.


Profit Margin amortization assets
 profit segment
. Unallocated manufacturing costs percentage revenue expensing fair market inventory $19. 6 million 2019 $1. million 2018).
 decrease profit $265. 1 million 12% sales volume higher fixed costs manufacturing capacity expensing $19. 6 million excess book value inventory Quantenna acquisition.
 margin decreased 35. 8% 2019 38. 1% 2018. competitive pricing selling prices higher demand lower margin increased manufacturing costs decreased demand.
 $976. 35. $ 1,110. 36.
 794.
.
 Gross profit segments $ 2,046. $ 2,305.
 Unallocated manufacturing costs (72.
 Total gross profit $ 1,973. 35. 8 $ 2,238. 38.


. Share-based Compensation
 grant non-qualified stock options SSARs restricted shares units 2016 Stock Incentive Plan 2. 0 million shares plus 957,575 2011 Stock Incentive Plan forfeited settled canceled expired.
 maximum restricted 1. 25 million. distribute authorized unissued shares treasury shares option appreciation right exercises restricted share performance share awards.
 stock options SSARs price equal closing market price. maximum term seven years. vest Compensation Committee Board.
 SSARs stock option grants. exercisable terminate.
 Restricted shares units time-vested performance-based issued no cost below fair market value subject to forfeiture restrictions sale. Performance-based awards conditioned performance objectives conditions restrictions contingencies.
Restricted shares units dividends vesting forfeiture provisions. 2016 no performance-based less one year time-based three years.
 compensation expense stock options stock-settled appreciation rights restricted shares performance shares employees directors fair value. closing price common shares.
-settled appreciation right estimated Black-Scholes-Merton option pricing model risk-free interest rate dividend yield volatility.
 table-based compensation expense options SSARs restricted performance awards Consolidated Statements Operations 2019 2018
 Product development $1,478 $1,306 $1,545
 Sales marketing 469
 General administrative 2,429
 share-based compensation expense $4,376 $4,688 $2,427


Property Plant Equipment
 Land 1,565 1,747
 Buildings improvements 17,332
 Machinery 30,670 29,692
 Vehicles
 Office 851
 Construction
 51,558
 depreciation (29,284,707
 property $ 22,274 24,573


Retirement-Related Plans
 table pre-tax cost. Consolidated Income Statement.
 pre-tax cost decreased $994 million 2018 actuarial losses$1,123 amortization period U. S. Qualified Personal Pension Plan higher return assets$143 interest costs$203 million.
 costs operating non-operating. 2019 $1,457 million $37 million 2018. Non-operating costs $615 million decreased $957 million factors.
 31.
 Retirement-related
 Service cost $385 $431.
 Multi-employer plans.
 defined contribution plans.
 operating costs $1,457 $1,494.
 Interest cost $2,929 $2,726.
 return assets.
 Recognized actuarial losses 1,819.
service.
 41 262.
 costs 28 76.
 non-operating costs $615 $1,572.
 retirement $2,072 $3,066.


Uncertain Tax Positions
 2019 unrecognized tax benefits $542 million. recognized $397 million expense tax rate. 2018 unrecognized benefits $566 million. recognized $467 million expense rate. benefits
 accrued interest penalties uncertain tax positions expense. 2019 2018 $42 million $60 million accrued interest penalties uncertain tax positions Consolidated Balance Sheets. 2019 2017 recognized tax benefits $14 million expense $5 million benefits $5 million.
 income tax returns local jurisdictions statutes limitations 3 to 4 years. examination appeal.
 non-U. subsidiaries file returns. statutes limitations 3 to 10 years. returns examination.
 Balance fiscal year $ $ 501 $ 490
 Additions prior years tax positions
Reductions
 Additions 105 70
 Settlements
 Reductions statute limitations (32) (36) (86)
 Balance fiscal $ 542 $ 566 501


Impact Adoption Results
 adopted Topic 606 modified retrospective method. impact contracts April 1, 2018 adjustment retained earnings. adjustments accounts Consolidated Balance Sheet April 1,
 acceleration revenue deferred attributable requirement Topic 606 transaction price performance obligations residual method.
 no tax impact 606.
 presentation changes Consolidated Balance Sheet April 1, 2018 comply Topic 606. offset accounts receivable contract liabilities unpaid deferred performance obligations.
 standard accounts receivable contract liabilities non-cancelable contracts right consideration unconditional. adoption right consideration reclassified from accounts receivable to contract assets.
 March 31, 2018 Adjustment Topic 606 April 1, 2018
 Accounts receivable 16,389
 Contract assets 4,583
Prepaid 5,593,097
 2,484
 26,820 7,006 33,826
 Shareholders equity
 earnings 103,601 106,215


OPERATING COSTS ADJUSTED EBITDA
 Bell Wireline operating costs stable. 1% 2019 2018 IFRS 16 cost containment Lower pension expenses
 offset Higher cost goods acquisition Axia Greater payments carriers international long distance minutes
 EBITDA grew 1. 7% growth expenses stable. Adjusted EBITDA margin increased 43. 8%. 4% IFRS 16 service revenue growth offset higher low-margin product sales.
 Operating costs (6,942). 1%
 Adjusted EBITDA 5,414.
 EBITDA margin.


market serviceable products Microprocessors memories optoelectronics Flash Memories.
 semiconductor revenues 2019 decreased 12% TAM flat SAM $412 billion $194 billion. fourth quarter TAM decreased 6% SAM increased 2%. increased 1% SAM decreased 3%.
 2019 financial performance net revenues $9. 56 billion gross margin 38. 7% operating margin 12. 6% expectations.
 solid fourth quarter sales performance. net revenues up 4. 0%-over gross margin 39. 3% operating margin 16. 7%. revenues grew 7. 9% 290 points above mid-point guidance. quarterly performance above SAM.
 average exchange rate $1. 14 €1. 2019 $1. 18. 2018. fourth quarter $1. 12.
 2019 gross margin decreased 130 points 38.. 0% 2018 price unsaturation charges manufacturing product mix currency.
 fourth quarter 2019 gross margin 39. 3% above 140 improved product mix efficiencies. margin decreased 70 year-over-year price unsaturation currency.
 operating expenses $2,591 million 2019 increasing 3. $2,493 million salary increased spending higher share-based compensation cost currency. R&D $672 million fourth quarter 2019 $629 $630 million. increase seasonality salary dynamic. year-over-year increase salary increased R&D offset currency.
 income $103 million 2019 $53 million 2018 higher R&D grants. Fourth quarter $54 million $2 million $16 higher R&D grants.
 impairment restructuring charges $5 million $21 million 2018.restructuring charges fourth quarter $3 million prior $2 million year-ago.
 Operating income 2019 $1,203 million decreasing $197 million 2018 driven price pressure increased unsaturation charges higher R&D spending offset grants currency. income fourth quarter grew $460 million $336 million $443 million prior higher revenues improved product mix higher grants.
 Year December Months
 Net revenues $9,556 $9,664 $2
 Gross profit 3,696
 margin revenues.
 Operating income 1,203 1,400
 Net income parent company 1,032 1,287 392 302
 earnings per share $1.


non-current assets
 2019 formed joint venture Lenovo. February contributed assets Lenovo NetApp Technology Limited 49% equity interest. cash fixed assets customer relationships goodwill value $7 million. value equity interest $80 million non gain $73 million. ownership equity investment balance April 26, 2019. LNTL integral sales China distributor OEM sales Lenovo. products services develop offerings NetApp Lenovo technologies.
 26, 2019 2018
 Deferred tax assets $201 $229
 non-current $ $ 450


 offer services investments Oracle applications infrastructure. revenues recognized as performed. cost personnel technology infrastructure facilities external contractor expenses.
 Excludes stock compensation expense allocations. amortization assets GAAP expenses not allocated results.
 services revenues decreased 2019 declines education consulting. increases EMEA offset decreases Americas Asia Pacific.
 expenses increased employee external contractor expenses consulting. total margin revenues decreased decreased revenues increased expenses.
 Percent Change
 Revenues
 Americas $1,576 -5% -3% $1,654
 EMEA 1,021 -2% 2% 1,046
 Asia Pacific 643 -7% -4% 695
 revenues 3,240 -5% -2% 3,395
 Expenses 2,703 -1% 2% 2,729
Margin $537 -19% $666
 17%
 Revenues
 Americas 49%
 EMEA 31%
 Asia Pacific 20%


SHARES
 Holders Class B Non-Voting Shares receive attend meetings not vote law. purchase A Shares no requirement no protection. different terms-Voting.
 February 29, 2020 111,154,811 A Shares,770,507
 B Non-Voting Shares 3,145,274 options purchase
 outstanding.
 December 31
 shares
 A Voting 111,154,811,155,637
 B Non-Voting 393,770,507 403,657,038
 504,925,318 514,812,675
 Options purchase
-Voting
 3,154,795 2,719,612
 exercisable 993,645 1,059,590


GAAP Results Operations
 Performance Indicators
 excludes discontinued operations Note 5.
 special charges.
 $20. million income tax benefits reversal valuation allowances deferred tax assets
 impacts. tax reform Q4 2017.
 December
 sales continuing operations
 sales $946. $896. $791. 5. 13. 3%
 gross profits $325. $307. $273. 5 12.
 gross margin 34.
&A costs $260. $245. $227. 6
 costs sales 27.
 operating income $66. $61. $45. 35.
 operating margin operations 7.
 income tax rate 24. 4% 21. 3% 3 65
 Net income continuing $50. $49.65. (24. 4)
 margin operations 5. 3%. 5% 8.
 Income discontinued operations tax. $175. (100. 9)


 WSTS semiconductor sales $412. billion 2019. 1% from $468. billion 2018. participate surveys trends progress. table semiconductor revenue since 2015
. revises. obligation.
 semiconductor sales increased $335. 2 billion 2015 to $412. 1 billion 2019. decrease. 1% decreased demand. revenue decreased $360. 4 million. 1% 2018 to 2019.
 Worldwide Semiconductor Sales Percentage Change
 2019 $412.
 2018 $468.
.
 2016 $338.
 2015.


Leases
 operating leases for office space automobiles equipment U. S. international locations. reviewed contracts for potential leases. reviewed right economic benefit.
 December 31, 2019 operating leases terms one month to six years options extend nine years terminate within three months. option extend. Leases term 12 months or less not recorded balance lease expense recognized lease term. expense short leases $0. 4 million included in sales selling research development expenses Consolidated Statements Income. Lease expense variable lease payments real estate taxes insurance reimbursements $0. 9 million. lease agreements 842 lease nonlease components. residual value guarantees restrictive covenants.
 Supplemental balance sheet information leases
 new lease accounting standard January 1, 2019.
Assets
 use $8,452 $10,322
 Liabilities
 Accrued expenses $2,676 $2,948
 Non-current 7,374
 $8,494 $10,322


Suppliers
 purchase inventory from components assemblies electronic parts. purchased under standard agreements. title risk loss pass us upon shipment. Some manufacturers 10% purchases accounts payable
 reliant upon suppliers for products. loss supplier financial condition.
 Ended February 28,
 Inventory purchases
 Supplier A 31% 33%
 B 20% 16% 14%
 C 6% 11%
 February 28,
 Accounts Payable
 Supplier A 30% 40% 33%
 B 18% 16%


profit after tax $. million. earnings improved $62. million $85. million.
 Reconciliation profit
 2018
 profit after tax (9,819) 6,639 (248%)
 finance costs 54,897 113%
 interest income (8,220 42%
 (6,254) 4 (247%
 depreciation amortisation 47%
 EBITDA 79,046 63,954 24%
 gain B1 lease
 leases
 distribution income
 transaction costs 5,459 201%
 landholder duty acquisition
 Singapore Japan costs
 EBITDA 85,123 62,575 36%


 assets increased $1,234. million $485. 5 million cash securities public offering proceeds $688. million. acquisitions 6RS goodwill $273. million $141. 2 million intangible assets cash. new lease accounting standard right-of-use assets $134. 8 million $58. 3 million cash advances loans $49. 8 million property equipment $49. 2 million trade receivables taxes $19. 4 million deferred tax. liabilities increased $309. 7 million leasing standard $126. 8 million. Accounts payable accrued liabilities increased $84. 2 million indirect taxes payroll liabilities processing fees liabilities. income taxes $69. 4 million. Deferred tax liabilities increased $7. 6 million acquisition 6RS.acquisition 6RS deferred revenue $21. million.
 Cash securities $2,455,194 $1,969,670
 assets 3,489,479 2,254,785
 liabilities 473,745
 non-current 157,363


Non-GAAP Results
 income EPS performance-cash. performance decisions budgets. incentive plans include measures. measures not. GAAP differ accounting. provide additional information. results. GAAP.
 results exclude non-cash charges stock-based compensation amortization intangible assets. discontinued operations nonrecurring items acquisition costs restructuring expenses performance. tax effect adjustments anticipated annual tax rate Tax Act.
 Reconciliation Non-GAAP measure operating expenses income operations excluding items Years December 31,
 Gross profit operations $ 315,652 $365,607
 Adjustments profit
 Stock-based compensation 525
 Facility expansion relocation costs 3,891
 Acquisition-related costs 8,290
 Non-GAAP gross profit 328,358 368,246
 margin 41..
 expenses 261,264 194,054
 intangible assets,168
 Stock compensation
 Acquisition
 Facility expansion relocation
 Restructuring
 Non-GAAP expenses 224,305 172,836
 income 104,053 195,410


. Revenue Contracts
 Adopting Topic 606
 effects Financial Statements year September 2019
 Adjustments Topic 606
 Contract assets $90,841
 Inventories 700,938
 LIABILITIES SHAREHOLDERS EQUITY
 accrued liabilities $106,461
 Retained earnings 1,178,677 1,169,356


Quarterly Results
 table unaudited quarterly financial information 2019 2018 years. financial statements adjustments included. results not indicative future.
 Includes acquisition integration charges $17. million $13. 4 million $12. 8 million $8. 9 million $8. 1 million August.
 Includes$13. 3 $111. 4 million $30. 9 million income tax) expense.
 Includes restructuring securities loss $29. 6 million.
 distressed customer charge $6. 2 million $18. million $14. 7 million August.
 Fiscal Year 2019
 Three Months
 August May February November 30
 Net revenue $6,573,453 $6,135,602 $6,066,990 $6,506,275
 Gross 495,078 443,799 454,874 519,650
189,745 140,918 153,983 216,710
 Net 53,761 44,032 67,607 124,074
 Jabil. $52,675 $43,482 $67,354 $123,600
 Earnings share stockholders Jabil.
.
.


2019 2018 pre-tax losses $19,573 $25,403 available future income. full valuation allowances deferred tax assets 2019 2018 NOL carryforwards evidence losses uncertainty future taxable income.
 tax assets
. future taxable income. assets December 31, 2019. maintained full valuation allowance assets December 31, 2019. net change total valuation allowance 12 months 2019 increase $1,816.
 December 31, 2019 2018
 Deferred tax assets
 Reserves accruals $62 $45
 Research development credits 1,730
 Net operating loss carry forward 27,907 25,733
 Stock based compensation 8,402
 Total deferred tax assets 38,112 36,296
 after
 Total tax liability
 Net deferred tax assets


Results Operations
 Consolidated Financial Statements expense loss sale disposal lease termination costs
 asset impairment asset retirement obligations FCC reimbursements. table summarizes
 change. Services
 Net revenue 2019 decreased $21. 8 million to $172. 5 million $194. 3 million. decline projects reduction Group revenue projects.
 Cost revenue decreased $35. 9 million to $127. 1 million $163. 0 million. improved vessel utilization higher costs power construction project.
 Selling administrative expenses increased $5. 6 million to $25. 8 million $20. 2 million. higher disposition costs. offset reversal bad debt expense favorable receivable settlement.
 Depreciation amortization decreased $1. 5 million to $25. 7 million from $27. 2 million 2018.decrease disposal assets.
 decreased $0. 7 million. million December 31, 2018 impairment 2019 under-utilization assets.
 Net revenue $172. $194.(21.
 Cost revenue 127. 163. (35.
 Selling 25. 20. 5
 Depreciation amortization 25. 27.
 operating income.
 Income (loss) operations $(6. $(15. $9.


income taxes federal tax rate before. sources effects differences tax
 tax positions 2019 increased net income per share $0. 32 $0. 30. 2018 increased $0. 05. 2017 increased $0. 17 $0. 15.
 foreign tax rate differential benefit relates Company operations Thailand Malta Ireland. Thailand operations subject tax holidays. tax holiday periods expire 2022 2026 seeks new tax holidays. tax rate. operations Malaysia tax holiday reduces income tax rate. tax holiday granted 2009 effective through December 2019. expense tax holidays $0. 1 million 2019. benefit $6. 2 million $13. 2 million 2018 2017. holidays 2019 net income per. 2018 increased income $0. 03 $0. 02. 2017 increased income $0. 06.
 March
 2019
 income tax $43. $232. $31.
 State income taxes federal benefit (8.
 Foreign income lower federal rate (94.
 one-time transition tax foreign tax credits 13. 653.
 deferred tax effects valuation allowance (136.
 low-taxed income 95.
 realignment (90.
 current tax positions 9. 32 53.
 prior tax positions (75.
 Share-based compensation (13. (27. (25
 tax credits.
 prepaid tax asset amortization 5.
.
.
 valuation allowance (9.
 income tax provision $(151. $481.(80.


 $45. million $24. 2 million net income $47. 6 million non-cash charges working capital $26. 8 million. $9. 4 million earn-out liabilities $4. million depreciation amortization expense. increase $26. million growth $1. 8 million.
 $44. 2 million $16. 1 million capital expenditures Planning headquarters Ridgefield Dallas. $28. 1 million acquisitions Bassian.
 $96. 9 million $145. million Senior Notes $44. 2 million $2. 4 million liability.
 $45. 1 million $20. 4 million net income $38. 2 million non-cash charges offset $13. 5 million increase working capital.
 $33. 7 million $19. 8 million capital expenditures. remaining $13. 9 million acquisitions.
 $10. 4 million.2018 doubled borrowing capacity. drew $47. million lowered interest rates. $5. 2 million $3. million Fells Point acquisition $1. 5 million financing.
 Year
 Net income $24,193 $20,402 $14,366
 Non-cash charges $47,625 $38,186 $28,725
 working capital $(26,811)
 operating $45,007,082 $31,497
 investing,154,688,406
 financing $96,947 $19,429


. Property Plant Equipment
 Depreciation expense $290. 2 million 2019 $239. 6 million 2018 $190. 4 million 2017. 87% 85% 84% 2019 2017. depreciable lives 2 50 years 7 25 years
 No asset impairment losses 2019 2017.
 Land rights-of-way $117.
 Buildings leasehold improvements 315. 305.
 equipment 4,044. 3,913.
 Office software furniture fixtures vehicles 229.
 Construction.
 value 4,745. 4,599.
 Accumulated depreciation (2,964.,755.
 $1,780. $1,844.


Intangible Assets
 table presents intangible asset balances asset class.
 Amounts December 31, 2019 decrease $42 million due foreign currency translation. no foreign currency impact assets December 31, 2018.
 intangibles acquired business processes methodologies systems.
 31, 2019
 Intangible
 Capitalized software 1,749 1,006
 Client relationships 8,921 7,488
 Completed technology 6,261
 Patents/trademarks 2,301
 $19,287 $15,235
 December 31,
 Capitalized software $1,568
 Client relationships 2,068
 Completed technology 2,156
 Patents/trademarks
 $6,489(3,402) $3,087


PROPERTY EQUIPMENT
 2019
 Depreciation amortization $66,082 $67,107.
 Development equipment $16,461
 Computer software 76,134
 Office equipment 66,685
 fixtures furniture 330,568
 Leasehold improvements 18,016
 depreciation amortization,339
 property equipment 186,525 $247,289


Operating Expenses
 Cost Services increased $549 million 3. 6% 2019 due rent capacity new lease accounting standard device protection package regulatory fees.
 offset by employee costs Voluntary Separation Program access costs roaming.
 Cost Wireless Equipment decreased $544 million 2. 9% 2019 declines devices handset upgrade cycle. offset higher priced devices.
 Selling General Administrative Expense increased $938 million 6. 0% sales commission bad debt advertising costs. lower net deferral costs Topic 606 modified retrospective approach.
 offset employee costs Voluntary Separation Program.
 Depreciation Amortization Expense decreased $599 million 5. 0% 2019 Verizon depreciable assets Consumer’s usage.
 millions Increase
 December.
services $15,884,335.
 wireless equipment 18,219,763.
 Selling 16,639 15,701.
 Depreciation amortization 11,353,952 (599).
 Operating 62,095.


performance obligations
 revenue liabilities. March 29, 2019 $2,608 million obligations customer deposit liabilities $505 million percentages
 100% rounding.
 Obligations 0-12 Months 13-24 25-36 Months
 Enterprise Security $2,059 65% 24% 10% 2%
 Consumer Cyber Safety 549 95% 4% 1%
 Total $2,608 71% 19% 8%


. Goodwill Intangible Assets
 Trade
 Balance January 1 2018 $88,526,286
 Amortization (11,854 (15
 December 31, 2018 77,264 79,067
 19,805 16,583 38,607
 Amortization (12,673 (14,236)
 December 31, 2019 $84,396 $16,820 $103,438


Deferred Tax Assets Liabilities
 recognized for future tax consequences differences tax basis tax rates.
 assets liabilities
 evaluate realizability assets U. non-U. jurisdictions valuation allowance. 2009 to 2018 maintained 100% valuation allowance against. deferred tax assets insufficient positive evidence.
 reported. pre-tax income 2015 2017. losses 100% valuation allowance 2018.
 December 29, 2018 positive operating performance. two consecutive years threeyear. pre-tax profit. completed financial plan for 2019 expected positive operating performance. considered future taxable income evaluated utilization net operating losses tax credit carryforwards.
 positive evidence overcame negative evidence. assets realizable. released valuation allowance against. federal. state deferred tax assets fourth quarter 2018.
 valuation allowance decreased by $75.2018 valuation. deferred tax. allowance $36. million California tax carryovers future realization.
 Tax credits $44,696 $39,586
 Inventory reserve 12,350
 Non-statutory stock options 2,982
 Depreciation amortization 27,758
 loss carryforwards 21,410
 deferred tax assets 115,048 121,810
 Valuation allowance
 deferred tax 78,444
 Acquired intangibles
 Unrealized investment gains
 undistributed earnings
 deferred tax liabilities
 $64,266


table presents items not recognized 31, 2017 recognized 2018 deferred 2018. items not recognized recorded balance sheets accumulated loss
 include $375 million ASU 2018-02.
 $32 million ASU 2018-02.
 2017 Recognition Net Benefits Expense Deferrals Net Change AOCL 2018
 millions
 Accumulated loss
 Pension plans
 Net actuarial (loss) gain $(2,892) 179 (260) (81) (2,973
 Prior service benefit
 Deferred income tax benefit 1,107 (418) 65 (353)
 Total pension plans (1,731) (247) (195) (442) (2,173
 Post-retirement benefit plans
 Net actuarial (loss) gain (250) 257
service benefit (107) 20
 Deferred income tax benefit 122
 post-retirement benefit plans (235) 194 177
 loss $(1,966)


. Debtors
 Directors carrying approximates fair value.
 Company no credit risk trade debtors exposure spread customers.
 Assets recognised contract costs sales commissions contracts one year. No assets impaired derecognised current prior year.
 £ million
 Due one year
 Trade debtors.
 subsidiaries.
 debtors.
 Prepayments.
 tax asset.
 Deferred tax.
 Assets recognised costs contract.
. 19.
 Due after one year
 benefit pension plan surplus.


consolidated revenues disaggregated product group Note 19. tables disaggregated by geographical region
 nature.
 revenues classified location destination. products U. S. Asia Pacific revenues.
 Original Equipment Manufacturers end-customers marketing support Distribution customers distributors representatives.
 January 1 2018 adopted converged guidance revenue no impact recognition practices.
 disclose value unsatisfied performance obligations contracts one year less revenue.
 2019 2017
 revenues geographical region
 EMEA 2,265 2,478,142
 Americas 1,351 1,264
 Asia Pacific 5,940,120
 9,556 9,664 8,347
 sale products 9,381 9,461 8,175
 services 148
 Other revenues
 revenues 9,556 9,664 8,347

 Equipment 6,720
 Distribution 2,836 3,339,798
 revenues 9,556,664 8,347


Cash Flow Activities
 December 31, 2019
 Net cash decreased. decrease income increase non-cash adjustments gains sale divestitures.
 increase non-cash adjustments loss higher depreciation amortization right-to-use assets. loss impact reflects $145 million settlement DOJ Practice Fusion investigations.
 Net cash reflects advance income tax payment gain investment Netsmart 2018.
 Net cash decreased due working capital changes higher costs interest legal incentive compensation.
 decrease non-cash adjustments net loss driven lower non impairment charges long-term investments intangibles goodwill.
 Net cash operations decreased driven additional tax provision gain sale investment Netsmart. Netsmart generated cash 2018 2017. cash decreased $16 million higher interest expenses credit facilities.
 Year Ended December

 income (182,602) 407,807 (154,175 (590,409) 561,982
 discontinued operations 395,138 30 364,790
 operations (182,602) 12,669 (184,523) (195,271)
 Non-cash adjustments 277,217 136,651 351,835 140,566 (215,184)
 assets liabilities (18,361 (60,086) 57,746 41,725 (117,832)
 76,254 89,234 225,058
 discontinued operations (21,343) 54,357 (75,700
 46,254 67,891 279,415


 Topic 280 standards segments products geographic areas customers. segments financial performance. operations sales Enterprise Information Management software.
 table distribution revenues
 Revenues
 Canada $153,890 $149,812 $227,115
 United States 1,490,863 1,425,244 1,090,049
 Kingdom 182,815 201,821 159,817
 Germany 203,403 198,253 166,611
 Europe 534,204 517,693 394,132
 other countries 303,580 322,418 253,333
 revenues $2,868,755 $2,815,241 $2,291,057


Australian VOC NPS 3 Store‐controllable steady. improved Q3’19 flood drought. improved 78%. Attitude stable (89%.
 VOC reduced five removing Ease Movement Correct Price Tickets.
 Sales increased 5. 3% $39. 6 billion. 1% transaction growth. 8% items basket. 7%.
 improved H2. campaigns Disney Words Earn Learn. Q4 sales increased 3. 6% growth. 4%. items basket. 2%.
 Metro range. extra‐small store format launched Kirribilli Rozelle Kings Cross. 43 Metro‐branded stores 16 Woolworths Supermarkets.
 Online VOC improved 2 81% Delivery Pick up Ease Website Navigation. Online sales grew 31% $1. 4 billion.
 Australian Food sales metre $17,163 growth 2. 0%.24 stores opened (21 three eight closed 68 Renewals. 1,024 Woolworths Supermarkets Metro stores.
 prices declined. 4% modest inflation. 5% fourth quarter Fresh categories Fruit Vegetables Meat Bakery.
 Sales 39,568 37,589 5. 3% 3. 3%
 EBITDA 2,613 7. 5%. 1%
 Depreciation amortisation.
 EBIT 1,857. 7% 3.
 Gross margin 28.
 Cost business.
 EBIT sales 4.
 Sales square metre$ 17,163 16,528.
 Funds employed 1,468.
 ROFE.


Disaggregation Revenues
 timing uncertainty depicted type geographic region 3
 Ended December 31,
 Cloud $896,164 $766,377
 Software services 52,364
 Maintenance 48,282 50
 revenues $996,810 $875,059


 increased $15. 3 million 2018 2017. $7. 2 million employee costs headcount 128 173. remaining $7. million hosting software messaging $0. 6 million office expenses $0. 4 million depreciation amortization acquired intangible assets.
 Gross margin decreased investment personnel infrastructure.
 December
 2017
 revenue $ 46,810 $ 31,503 $ 15,307.
 Gross margin 68%


GasLog Ltd. Subsidiaries
 consolidated financial statements
 years December 31, 2017 2018 2019
 amounts U. S. Dollars except
. Derivative Financial Instruments
 fair value liabilities
 Interest rate swap agreements
 floating fixed market interest. bank floating-rate payments. dollar LIBOR payments fixed rates.
 December 31, 2018 2019 no hedging instruments accounting.
 December
 2019
 Derivative liabilities
 Interest rate swaps 9,196 49,891
 foreign exchange contracts 1,467
 hedging
 Cross currency swaps 1,429
 12,092 49,932
 current 2,091
 non-current liability 10,001 41,837


table valuation allowance
 loss. federal tax $31. 4 million. Tax Act NOLs expire. $9. million expire 2020 2037 $21. 5 million expire. state $40. 6 million 2020 2039.
 allowances $5,398 $13,872
 Net operating loss 3,284
 Expiration losses
 Adjustment deferred taxes
 state tax rate change
 Valuation allowance end year $8,739 $5,398


 revenues earnings. Consolidated Statements Operations
 years 2017 ASC 606.
 Net sales $1,382,818 $1,200,181 $757,338
 Operating costs expenses
 sales 924,276 860,744 571,944
 expenses 202,642 173,620 107,658
 Research development 44,612 39,114
 Restructuring charges 8,779 14,843
 loss write disposal long-lived assets 1,660
 operating costs expenses 1,181,969 1,087,329 722,370
 Operating income 200,849 112,852 34,968
 Non-operating
 Interest income
 21,239 32,882
 Acquisition loss
 TOKIN options
 11,214 24,592
 170,431 187,067 9
tax,460 9,132 4,294
 209,891 177,935 5,514
,304 76,192 41,643
 $206,587 $254,127 $47,157


Company incurred $106,000 legal professional costs acquisition administrative. remaining life intangible assets 12. 5 years acquisition.
 active cabinet business financial statements. determine earnings/loss since acquisition.
 table reflects unaudited combined results October 1, 2016 net sales income Clearfield years September 30 2018 2017.
 includes expenses amortization intangibles inventory fair value adjustment personnel costs
 results indicative results. include benefits elimination duplicative costs.
 Forma Year Ended September 30 2018 September 30 2017
 Net sales $80,958,789 $89,672,074
 Income operations $5,554,766 $8,174,841
 Net income 4,794,757 $5,809,018
 income per share
.
.


NAVIOS MARITIME HOLDINGS. FINANCIAL STATEMENTS. dollars
 6 PREPAID EXPENSES ASSETS
 insurance charter contracts. settlement. amounts current. net deductibles.
 December 31, 2018 $11,571 insurance iron ore port terminal Nueva Palmira Uruguay.
 Prepaid voyage operating costs $5,726 $9,261
 Claims receivable 3,826 22,224
 Prepaid taxes 1,012 2,682
 Advances working capital
 1,675
 prepaid expenses current assets $12,239 $40,190


REMUNERATION AUDITORS PARENT COMPANY’S ANNUAL GENERAL MEETING
 SEC regulations remuneration auditor USD 0. 7m. 8m 1. Audit USD. 6m. audit-related services USD. 1m. 4m.
 Audit Committee pre-approves audit non-audit services law independent auditors engagement.
 2019 2018 2017
 Audit fees
 Company's auditor audit annual accounts. 4. 4.
 Audit Company subsidiaries.
 audit fees. 6.
 Non-audit fees
.
 Tax services.
 non-audit fees.
. 7 8.


. Selected Financial Data
 table summarizes consolidated financial data. Consolidated Financial Statements's Discussion Analysis Financial Condition Results Annual Report Form 10-K. consolidated income balance five years derived from audited Financial Statements. acquired companies Catalyst Liaison Hightail Guidance Covisint ECD CCM Recommind ANX CEM Daegis Actuate. results contributed revenues net income per share comparability.
 July adopted Accounting Standards Codification Topic 606 Contracts cumulative effect approach. contracts. Results new standard previous standard.
 2017 one-time tax benefit $876.
 Year Ended June 30
 2016 2015
 Statement Income Data
 $2,868,755 $2,815,241 $2,291,057 $1,824,228 $1,851,917
income OpenText(2) $285,501 $242,224 $1,025,659 $284,477 $234,327
 OpenText(1) $1.
 OpenText(1).
 Shares 268,784 266,085 253,879 242,926 244,184
 269,908 267,492 255,805 244,076 245,914


Settlement Equity Awards
 restricted stock units vesting. underlying shares issued. broker sales program tax withholding. shares sold common stock repurchases.
 fourth quarter 2019 withheld 83,327 shares net settlements holder.
 repurchase common stock Program shares surrendered tax withholding December 31, 2019
 Period Shares Repurchased Average Price Paid Share Announced Program Maximum Dollar Value Repurchase Program
 October 1 31, $12,544,543
 November 274,681 $4. 82 191,354 $11,620,641
 December 1 374,490 $4. $9,859,153
 Total shares repurchased 649,171 $4. 565,844 $9,859,153


ADJUSTED EBITDA MARGIN
 standardized meaning IFRS. unlikely issuers.
 operating revenues less costs income statements. same profit 2019 financial statements. margin divided by operating revenues.
 EBITDA performance. investors analysts debt obligations telecommunications. short-term incentive compensation management employees.
 EBITDA margin no comparable IFRS. reconciliation net earnings adjusted EBITDA.
 Net earnings 3,253 2,973
 Severance acquisition costs 114
 Depreciation 3,496
 Amortization 902
 Finance costs
 Interest expense 1,132
 post-employment benefit obligations
 Other expense
 Income taxes 1,133
 Adjusted EBITDA 10,106
 operating revenues 23,964 23,468
EBITDA 42.


Licensing Segment
 Excludes operating expenses.
 revenue 2019 $198. million $219. 7 million 2018 $21. million. due guarantee contracts NRE services per-unit royalty revenue.
 Revenue
 Royalty license fees $198,124 $219,708 $167,923
 revenue,124,708
 Operating expenses
 Cost revenues 8,460
 Research development costs 83,613,892
 Litigation
 Amortization
 operating expenses 181,804 180,727 172,745
 operating income (loss $16,320 $38,981


Cash Equivalents
 bank earns interest. Short-term deposits three months requirements interest.
 31 March 2019 2018
 Cash bank hand 134. 67.
 Short-term deposits 37. 52.
 cash 172. 120.


GreenSky Inc.
 FINANCIAL STATEMENTS
 States Dollars share data
 4. Loan Receivables
 table summarizes activity receivables cost value.
 Includes accrued interest fees recoveries charged-off receivables proceeds transferring rights. servicing arrangements receivables terms conditions Bank Partners. Income recorded interest income gains Statements Operations. sold receivables Bank Partners
 temporarily hold receivables eligibility. transfer cost accrued interest. receivables non-accrual non status inquiries.
 received recovery payments $50 $57 $238 December 31, 2019 2018 2017. Recoveries principal finance charges fees receivables recognized gains interest income Statements. December 2019 write offs reduced $312 $431 $406 proceeds transferring rights Charged-Off Receivables.cash proceeds Consolidated Statements Operations.
 Ended December
 $2,876 $73,606 $41,268
 Additions 157,928 93 134,659
 sales borrower
 Loss sale
 valuation
 Write offs (2,982) (2,891) (3,176
 balance $51,926 $2,876 $73,606


 increased $9. 6 million $24. 4 million 2019 $14. 8 million 2018. $4. 4 million MOI $2. million GP $1. million acquisition. 9 million share compensation awards $1. 1 million sales marketing increased revenue.
 Research development engineering increased $3. 7 million $7. 5 million 2019 $3. 8 million 2018 $1. 1 million MOI $2. 7 million GP.
 Selling administrative expense $24,371,349 $14,794,205 $9,577,144.
 Research engineering 7.
 operating $31,867,361 $18,560,365 $13,306,996.


European revenue decreased. 9%. Foreign exchange. deconsolidation Vodafone Netherlands. offset. 0% organic growth. Service revenue increased. 6% excluding legal settlement Germany Q4 customer growth mobile propositions regulatory headwinds “Roam policy handset financing. legal settlement service revenue growth. 0% (Q3.
 Adjusted EBITDA increased. 3%. impact deconsolidation Vodafone. foreign exchange. EBITDA increased 13. handset financing regulatory settlements legal settlement Germany. EBITDA grew. operating leverage cost control “Fit Growth” programme.
 EBIT increased. 3% growth stable depreciation amortisation expenses.
 activity M&A Foreign exchange
 Revenue Europe.
 Service revenue
 Germany.
 Italy..
 UK. 5.
 Spain. 8. 3.
 Europe (19. 6) 22. 9. 4) 9
 Europe. 9). 8.
 Adjusted EBITDA
 Germany. 9. 7
 Italy. 5. 6
 UK 45. 7 51
 Spain. 6.
 Europe (18. 26. 8
 Europe. 3. 6 13.
 Europe. 34. 8. 7) 86.


Income
 table reclassifications transactions AOCI consolidated statements income millions.
 ended March 31,
 AOCI Component 2019 2018 2017 Income
 Unrealized losses securities. income
 Amortization actuarial loss (1.
 Reclassification transactions taxes $(6. 6)(16.


roll-forward uncertain tax positions January 2017 to December 31, 2019
 net increase tax freight income increased voyages 2019.
 recognizes interest penalties tax positions. increases $13. 2 million $9. 2 million $6. 4 million 2019 2018 2017.
 Balance unrecognized tax benefits January 1 40,556 31,061 19,492
 Increases current year 9,297 2,631
 prior years 19,119 3,475
 Decreases statute limitations
 Increase acquisition
 deconsolidation Altera
 Balance tax benefits December 31 62,958 40,556 31,061


Autodesk’s deferred tax assets liabilities
 tax expense driven by foreign locations withholding taxes. tax amortization intangibles offset benefit uncertain tax positions valuation allowance deferred tax liabilities.
 Autodesk assesses valuation allowance deferred tax assets. evidence. losses business model transition negative. allowance required U. S. Canada Singapore tax attributes. deferred tax assets operating losses foreign tax R&D credits Singapore Canada credits. offset by valuation allowance. increased $163. 6 million 2019. decreased $113. 8 million increased $352. 4 million 2018 2017 U. S. Tax Act reduction. deferred tax attributes. business model tax planning strategies deferred tax assets allowance deferred tax assets.foreign jurisdictions.
 Tax Act December 22, 2017 changes U. S. corporate income tax regime. reduced federal corporate rate 35%. 81% 2018 21% 2019. imposed one-time mandatory tax earnings foreign subsidiaries subjected intangible income. taxation full dividends deduction minimum taxation taxable income accelerated depreciation deduction rules deductibility expenses. accounting implications Tax Act.
 recorded tax benefit financial statements January 31, 2018 $32. 3 million corporate rate remeasurement deferred tax liability.
 estimated taxable income offshore earnings $831. 5 million 2019 adjusted $819. 6 million Treasury Regulations 2019. tax rate offset operating losses. recorded deferred tax $45. 1 million foreign tax credits valuation.
January 31,
 2018 Stock compensation $25. $26.
 tax 238. 170.
 tax 198. 162.
 compensation 6. 25.
 deductible 19. 22.
 software 32. 43.
 15. 16
 loss carryforwards 237. 85.
 Deferred revenue 49. 120.
 28. 32.
 deferred tax 850. 706.
 (797.
 53. 72.
 intangibles.
 deferred tax.
. $15.


Investment associates
 32. 4 per cent holding Prozone Intu Properties Indian developer 26. 8 per cent holding Empire Mall Private Prozone group ownership 38. per cent. companies incorporated India.
 equity method accounting Prozone Empire IAS 28. results 30 September. adjusted accounting policies recent property valuations valuers.
 market price per share Prozone 31 December 2019 INR19 INR29) interest £9. 9 million £16. 4 million Prozone carrying value pre-impairment £41. 5 million £45. 1 million. share price lower carrying value review value interest Empire. impairment assessment independent third-party valuations investment properties. Assumptions tax costs. impairment £7. 4 million recognised.
 1 January.
 Share post-tax (loss)/profit associates.
 Impairment.
 Foreign exchange movements.
 31 December.


Property plant equipment
 Depreciation expense $52. 3 $46. 6 million 2019 2018. $9. 1 million $7. million.
 value equipment cable-ships submersibles $35. $40. million.
 Energy segment $0. 7 million. 4 million station performance. 3 million abandonment.
 Cable-ships submersibles $ 246. $ 251.
 Equipment furniture fixtures software 214. 148
 Building leasehold improvements.
.
 Construction.
 Plant transportation equipment.
.
 Accumulated depreciation 168. 127
 405. $ 376.


Financial Results Key Performance Metrics Overview
 table key financial metrics last three fiscal years cash conversion
 Net revenues increased 4% 2019. due 7% product revenues offset 3% decrease software hardware maintenance services revenues.
 Gross profit margin percentage increased 2019 product hardware maintenance.
 Income operations flat.
 Provision income taxes decreased. tax reform.
 Net income Diluted income per share increase. impacted 6% decrease annual dilutive shares due share repurchases.
 Operating cash flows decreased 2019 operating assets liabilities offset higher net income.
 2019 2018 28, 2017
 Net revenues $ 6,146 $ 5,919
 Gross profit $ 3,945 3,709
 Gross profit margin percentage 64 %
 Income from operations $ 1,221 $ 1,158
operations 20%
 taxes $ 99 1,083
 Net $ 1,169 116 481
 income share. 51.
 cash flows $ 1,341 1,478


ITEM 6. FINANCIAL DATA thousands except share
 Statements Operations December 2019 2018 2017 Balance Sheet derived Financial Statements Item 8 Form 10-K. December 2016 2015 Balance Sheet Financial Statements 10-K. historical results not indicative future. read financial information Item 7's Discussion Analysis Financial Condition Results Operations Consolidated Financial Statements notes Item 8.
 GS Holdings GSLLC predecessors amounts Reorganization Transactions operations. amounts December 31, 2019 2018 May 24 2018 GreenSky, Inc. subsidiaries. GreenSky. business formation initial capitalization. Note 1.
 Basic diluted earnings per share Class A common stock May 24, 2018 December 31, 2019 Reorganization Transactions IPO. Note 2.
 Year Ended December 31,

 revenue $529,646 $414,673 $325,887 $263,865 $173,457
 revenue 248,580 160,439 89,708 79,145 36,506
 costs expenses 408,693 261,883 180,288 144,054 80,351
 profit 120,953 152,790 145,599 119,811 93,106
 income,105 (19,276)
 expense 88,848 133,514 138,668 124,464
 expense
 income 95,973 127,980 138,668 124,464
 noncontrolling 63,993 103,724
 GreenSky. 31,980 24,256
 Earnings share A common
.
.


 2019 increased $241. 4 million. $189. 3 million 8. 2018. Excluding surcharge special items adjusted margin 12. 5 percent 10. 6 percent. increase reflects steady demand improved product mix cost improvements higher selling administrative expenses.
 income margin excluding impact surcharge. removing impact.-GAAP Financial.
 Net sales $2,380. $2,157.
 surcharge revenue.
 sales excluding surcharge $1,942. $1,792.
 Operating income $241. $189.
 Special items
 Acquisition-related costs.
 Adjusted income excluding $242. $189.
 margin 10. 8.
 excluding surcharge 12. 5%.


Balances
 assets unbilled technology custom product. royalty revenue returned inventory. Long-term assets fee withholding reimbursable contracts. liabilities excess billings subcontractor accruals warranty expense extended right return refund customer deposits. net $1. million increased liabilities assets. government research programs fixed-price contracts. unbilled fee cost government contracts contract.
 contract balances December 2019
 assets $3,208,206 $2,759,315
 liabilities (3,887,685 (2,486,111
 Net assets $(679,479) $273,204


. recognized,252,795,999 million operating costs,256 million inventories.
. pledged.
 December
 Raw materials $3,766,056 $5,102,571
 Supplies parts 3,133,737 3,548,376
 process 10,034,488 11,309,718
 Finished goods 1,268,838 1,754,137
 $18,203,119 $21,714,802


Stock Options
 granted equal market value Leidos' common stock terms not ten years. term seven years vesting four years except outside directors vesting one year next.
 fair value stock option awards estimated Black-Scholes- Merton option-pricing model. expensed vesting four years except outside directors recognized one year or less.
 2017 ceased peer group volatility increased historical volatility. includes weighted average historical implied volatilities. 2018 2019.
 risk-free rate derived yield curve zero-coupon U. S. Treasury bond maturity equal expected term stock option. simplified method expected term term.
 methodology changed fiscal 2019. midpoint scenario one-year grant date filter options. uses historical data forfeitures.
 weighted average grant-date fair value assumptions stock options
Ended
 January 3 2020 December 28, 2018 29, 2017
 grant $11. 89 $13. 85 $11.
 term 4.
 volatility 24. 29
-free interest 2.
 Dividend yield.


Operations 2019 2018 thousands
 income expense
 Interest expense increased debt QTI acquisition. foreign currency losses appreciation. Dollar Renminbi pension expense.
 Ended December
 Interest expense $(2,648) $(2,085)
 income 1,737 1,826
 (2,638) (2,676)
 $(3,549) $(2,935)


Foreign Currency Exchange Risk
 contracts fiscal year-end. dollar equivalents
 July 27, 2019 July 28, 2018 no option contracts.
 business globally currencies. direct effect foreign currency fluctuations revenue. dollars. dollar strengthens cost non. demand. weaker. dollar. effect currency fluctuations difficult revenue influenced factors
 70% operating expenses. -dollar denominated. 2019 foreign currency fluctuations decreased R&D sales marketing G&A expenses $233 million 1. 3% 2018. 2018 increased R&D sales expenses $93 million 0. 5% 2017. reduce variability non. -dollar hedge foreign currency transactions currency options forward contracts. protection. effectiveness gains losses contracts mitigate currency movements operating expenses service cost.
enter foreign exchange option contracts reduce effects currency fluctuations receivables payables. market risks variances forecasted transactions balances. enter speculative
 July 27, 2019 July 28, 2018
 Notional Fair
 contracts
 Purchased $2,239 $14 $1,850
 Sold $1,441 $845 $2


revenue guidance Consolidated Statement 2019
 Differences revenue fulfillment costs.
.
 Year
 August 31, 2019
 Net $25,282,320 $24,864,754
 $23,368,919 $23,057,603
 Operating income $701,356 $595,105
 Income tax expense $161,230 $164,054
 Net income $289,474 $180,399


2018 Compensation
 table total compensation earned non-employee directors 2018.
 amounts “Stock Awards” represent grant date RSU awards Financial Accounting Standards 718. actual value. valuation assumptions Notes Consolidated Financial Statements Annual Report Form 10-K December 31, 2018.
 annual directors 2018. settles first anniversary grant date Annual Meeting continued service.
 RSUs cash 2018. vested settled grant date.
 Dr. Simmons held vested option purchase 38,000 shares Class B common stock.
. Viniar held 8,750 RSUs granted 2015 settled shares Class B common stock June 21, 2019 annual meeting. service. vested option purchase 326,950 shares Class B common stock.
 Director Fees Earned Cash Stock Awards Total$
Botha 305,119
 Paul Deighton
 Randy Garutti
 James McKelvey
 Mary Meeker 305
 Anna Patterson 249
 Naveen Rao
 Ruth Simmons 300,132
 Lawrence Summers
 David Viniar 382,610


Revenue income
 recognition
 AASB 15 principles reporting revenue cash flows contracts five-step process identify contract performance obligations determine price allocate recognise revenue.
 Revenue recognised business activities
 Data centre services
 recurring monthly service fees upfront project fees.
 recognised accounting period. Project fees installation services initial deployment. revenue deferred recognised over term contract renewal options. Upfront discounts assets amortised over contract life.
 Group applies revenue standard disclose transaction price remaining obligations contracts unsatisfied consideration services. upfront project fees not significant contract.
 Interest income
 calculated interest rate gross carrying financial credit-impaired. net carrying loss.
 Distributions from investments
 recognised as revenue when right receive payment established.
disclosures 30 June 2018 balances
 Revenue measured at fair value.
 recognises future benefits criteria met. bases estimates on historical results.
 Revenue recognised activities
 Data centre services
 recognised economic benefits. discounts amortised over contract term.
 Interest income
 recognised effective interest method. receivable impaired reduces carrying to recoverable cash flow discounted original interest rate. impaired loans recognised original interest.
 Distributions from investments
 recognised right receive payment established.
 Data centre services revenue 169,696 152,560
 Interest income 8,220
 Distributions from investments 1,344
 revenue 9,564
 179,260
 Gain extinguishment B1 lease 1,068
 APDC leases 1,291
 675
3,034 284


SUPERVISORY BOARD
 table remuneration no bonuses pensions Company subsidiaries current former members Supervisory Board
 Period January 1 to May 28, 2018
 remuneration Supervisory Board determined 2018 Annual General Meeting.
 No stock options performance shares granted.
 ended December 31
 2019 Supervisory Board
. 78 83.
. 21
. 56 58
. 53 56
. 55
. 34 57
 299. 315


Revenue
 IBW decreased $10. 8 million fiscal 2019 compared to 2018 due to lower sales DAS conditioners commercial repeaters ancillary products.
 Lower sales DAS conditioners Universal DAS Interface Tray) active conditioner largest contributor decline. market conditioners expected decline RF signal into DAS head-ends. fourth fiscal quarter 2018 service provider large UDIT buyer alternative non-DAS solution. resulted decline 2019. expect UDIT revenue flat-to-down future primary market from capacity expansions sites DAS. Lower sales DAS conditioners Universal DAS Interface Tray conditioner largest contributor decline. market expected into DAS head-ends. fourth fiscal quarter 2018 one service provider UDIT buyer non-DAS solution. sharper decline 2019.expect UDIT revenue flat-to-down future primary market from capacity expansions sites DAS.
 Lower sales commercial repeaters reliable cellular coverage downward-demand trend customers small cells. expect trend.
 decrease ancillary products revenue decline sales DAS conditioners commercial repeaters. Future revenue flat-to trend increase public safety revenue.
 2019 Company spent resources new public safety products. additional capacities frequency ranges features channelization offering market. partner product testing delivery expect future revenue growth.
 ISM segment revenue decreased$2. 1 million 2019 2018. due decline deployment. services revenue. dependent domestic customer. lower sales Optima network management software. difficult future trends.
 CNS segment revenue decreased$2. 1 million 2019 due lower sales integrated cabinets project-based.decrease 2019 cabinets rural broadband.
 lower sales T1 NIUs TMAs CNS revenue decline.
 increased revenue copper/fiber connectivity growth.
 fiber access revenue grow power distribution network connectivity flat T1 NIU TMA decrease integrated cabinets uneven.
 Revenue segment Fiscal Year Ended March 31,
.
 IBW $12,474 $23,265 $(10,791)
 ISM 17,263 19,350
 CNS 13,833 15,962
 Consolidated revenue $43,570 $58,577 $(15,007)


fourth quarter 2019 recognized income $54 million increasing $2 million $16 million R&D grants Italy IPCEI program.
 income expenses
 Three Months Ended
 December 31, 2019 31,
 millions
 Research development funding $68 $14
 Phase-out start-up costs
 Exchange gain
 Patent costs
 Gain sale non-current assets
 income expenses $54 $16
 percentage net revenues.


FY19 Financial Results
 Challenges
 improvements performance stock price impacted Revenue business momentum Enterprise Security segment declined. internal investigation concerns former employee. restructuring plan reductions global workforce 8%. executive leadership team transition departures November 2018 January 2019.
 Net revenues $4,731 $4,834
 Operating income 380
 Net 1,138
 per share.
 Net cash activities 1,495 950


Sales
 Market Application
 table
 percentages
 2019 sales decreased $471. 9 million 25% decreases microelectronics materials processing OEM components instrumentation. Ondax acquired contributed $6. 4 million net sales. weaker demand microelectronics materials processing. demand microelectronics balanced headwinds materials processing.
 2018
 Microelectronics $632,176 44. 2% $1,036,354 54. 5%
 Materials processing 404,878. 3%. 4%
 OEM components instrumentation 266,788. 6%. 6%
 Scientific government programs 126,798. 9%. 5%
 $1,430,640. $1.


tax holidays foreign investment. effect tax benefits earnings per share $0. 14. 15 $0. 13 December 2019 2018 2017. agreements countries 100% taxes.
 tax holidays expire December 31, 2028. conditions.
 2019 Switzerland tax reform single tax rate revaluation deferred tax assets liabilities. third quarter 2019 tax benefit $20 million. remeasurement deferred taxes reconciled fourth quarter 2019 current year activity net remeasurement.
 2019 2018 2017
 Income tax benefit statutory rate
 Non-deductible non-taxable differences 4
 Income (loss) on equity investments
 Valuation allowance adjustments
 Effect deferred taxes tax rates
 Current year credits
 Benefits tax holidays 129
tax positions
 Earnings subsidiaries rates (9) (19)
 Income tax benefit (156)


table includes fair value financial assets liabilities December 31, 2019 2018:
 Cash equivalents deposits.
 carrying amount senior unsecured convertible bonds corresponds liability component. bonds issued July 3, 2017 outstanding December 31, 2017 liability $242 million recorded shareholders’ equity.
 Carrying Amount Estimated Fair Value
 Cash equivalents 1,691 2,138
 Long-term debt
 Bank loans 594
 Senior unsecured convertible bonds


December 2019 options less. 1 million. 4 million 2019. 1 million 2018. assumptions 2019 2018 option grants
 January 2020 issued options 591,004 shares common stock $1. 23 per share installments January 2024. value share $1.
 December 31
 volatility 64% - 69% 75% - 81%
 risk free interest rate. 8% -. 7%. 2%.
.
 life options 6. 6
.
 dividends


Fair Value Disclosures
 value based exit price liability transaction measurement. assumptions. fair value hierarchy three levels 1 to 3 1 highest priority.
 1: observable inputs prices assets
 2: inputs
 3: unobservable inputs.
 Company no assets liabilities measured fair value pension plan
 non September 30, 2019 30 2018.
 fair value financial instruments below quoted market prices Level 1. observable market inputs Level 2. internally generated data Level 3.
 Cash equivalents
 fair value
 Accounts long term receivable maturity over one year
 estimated discounting future cash flows current rate.
 quoted market prices.
 accounts receivable maturity one year less not different values September 30, 2019 2018.
--------------------------------
 Carrying amount Fair value References
 (Amounts thousands
 Assets
 Cash equivalents $18,099 $25,107 Consolidated Balance SSheets
 Accounts long term receivable 7,087
 Liabilities
 Note payable 1,001  Note
 *Original maturity over one year


Equity Incentive Plan
 board administers determines vesting. stock options 10 years. December 31, 2019 4,236,719 shares granted 2,063,281 shares future 2014 Plan.
-based compensation expenses selling administrative expenses. compensation expense.
 December 31
 Common stock $721 $555
 Stock options 354
 Restricted stock units 225
 Compensation expense common stock awards plan $ 1,300


COMPENSATION
 Company sponsors 2013 Equity Compensation Plan established June 2013. 500,000 shares reserved. amended 2,500,000 December 31, 2019. 1,624,221 shares common stock options outstanding 2019. 236,614 remaining shares.
 incentive stock options non-qualified stock options stock appreciation rights restricted stock. options exercisable ten years price not less fair market value. limited full-time employees. Non-qualified options employees agents consultants attorneys. issued less fair market value exercisable ten years. vesting schedule determined Compensation Committee. accelerated vesting unvested options change control.
 compensation cost options December 31, 2019 2018 $1,687,745 $1,317,904. No income tax benefit compensation capitalized.
 option activity 2019
 options 2019 1,143,637 exercisable average contractual life 1. 9 years.
 Options exercise price life value
 January 1 2018 1,368,772 $3.
 401,099 $9. 27
 (165,169 $3.
 $5.
 1,554,700 $4.
 410,134 $12.
 (251,063) $3.
 Expired (89,550 $12.
 1,624,221 $6. 27. $7,925,643
 1,143,637 $4. 39. $7,197,053


12 new office buildings 2019.
 energy consumption calculated purchased electricity fuel National PRC Principles Energy Consumption 2589-2008.
 water resources municipal.
 Recycled water consumption wastewater Tencent Tower A Tower B Chengdu.
 diesel consumption centres fees borne Group.
 Average PUE Usage Efficiency. facility equipment energy.
 running water consumption covers centres.
 packaging materials not applicable
.
 31 December
 Total energy consumption (MWh 205,092. 167,488.
 Direct 19,144. 12,852.
 Gasoline.
 Diesel.
 Natural gas 18,297. 12,029.
 Indirect consumption 185,948. 154,636.
 Purchased.
 consumption per employee 3.
energy consumption floor. 12.
 water consumption 1,283,749. 973,413.
 21.
 Recycled water 4 5


Adjusted Gross Margin. represents profit amortization intangibles stock-based compensation. performance future plans. exclusion stock-based compensation amortization intangibles facilitates.
 expenses negatively impact gross profit. not calculated GAAP. provides information.
 limitations not substitute for financial results GAAP. consider alongside GAAP performance measures profit. table reconciliation gross margin profit
 2017
 Gross profit $137,347 $100,284  $72,849
 Amortization acquired intangibles 2,114 1,268 1,614
 Stock-based compensation 1,966 2,306 578
 Adjusted gross margin $141,427  $103,858 $75,041


. NON-CURRENT ASSETS
 office lease contracts. periods.
 figures USD
 Fixture Furniture Equipment 65
 Right Use Asset
 December 1,534


Insurance Segment
 revenues gains investment income 2019 2018. adjustments related transactions entities.
 Life accident health earned premiums increased $22. 4 million to $116. 8 million $94. 4 million. due premiums KIC 2018.
 investment income increased $95. 8 million to $212. 9 million from $117. 1 million. due KIC acquisition higher assets reinvestment rotation higher-yielding investments.
 unrealized gains investments decreased $3. 7 million to $1. 9 million from $5. 6 million. driven smaller gains bonds common stocks higher impairments losses interest bonds. offset improvement equity securities gains mortgage loans.
 Life accident health earned premiums $116.
 investment income.
 unrealized gains investments.
revenue 331. 217. 114.
 benefits 234. 197. 37.
 Selling 35. 30. 5
 Depreciation amortization (23. (10
 47.
 operations $37. $35.


. ACCRUED EXPENSES
 Vessel drydocking wages supplies repairs maintenance drydocking oils insurances.
 Administrative expenses property.
 repayments.
 Vessel drydocking expenses (24,457) (24,041)
 Administrative expenses (11,713)
 Interest (44,150) (97,688)
 Current tax (720)
 (81,040)


tables deferred unearned services
 April 26, 2019 27, 2018 recognized $1,722 million $1,806 million.
 April 26, 2019 transaction price obligations $3,668 million equivalent deferred revenue balance. orders-needed cancellable backlog future revenue. expect recognize 50% deferred 12 months 25% 13 24 months remainder.
 Year Ended
 April 26, 2019 27, 2018
 Balance $ 3,363 $ 3,213
 Additions 2,763 2,566
 Revenue recognized
 end $ 3,668 $ 3,363


values financial assets liabilities
 at 31st December 2019 size short-term rates interest. assessed
 Derivatives future cash flows
 Interest-bearing loans borrowings calculated discounted future principal interest cash flows.
 Lease liabilities estimated future cash flows discounted incremental borrowing rate.
 Trade receivables/payables less one year notional amount fair value.
 table compares values Group’s financial assets liabilities
 no other assets liabilities measured fair value.
 Derivative financial instruments measured fair value. calculated discounted cash flow analysis market information.
 Financial assets
 Cash equivalents 168. 5 187.
 Trade receivables contract assets 263. 264.
 Total financial assets 431. 452.


. EARNINGS PER SHARE
 table basic diluted net income per share common stock
 September 27, 2019 warrants outstanding liability balance sheet. 2019 2018 recorded gains $0. 8 million $27. 6 million adjusting fair value warrants declines stock price.
 earnings dilutive effect common stock equivalents contracts settled stock. 2019 excluded warrant gain 214,303 potential shares common stock.
 2018 adjusted exclude warrant gain $27. 6 million dilutive effect incremental warrant shares,667. excludes 375,940 shares stock anti-dilutive.
 excludes 386,552 1,877,401 shares years 2019 2017 warrants anti-dilutive.
 Years
 Loss operations $(383,798) $(133,762) $(150,416)
Loss discontinued operations (6,215) (19,077)
 Net loss (383,798 (139,977 (169,493)
 Warrant liability gain (27,646)
 loss common stockholders(383,798(167,623),493)
 average common shares 65,686 64,741 60,704
 effect warrants
 65,686
 stock earnings share
 operations.
 Discontinued operations.
 stock earnings share.
-diluted
 operations.
 Discontinued operations.
 common stock earnings share-diluted.


9 FINANCIAL ITEMS
 Interest financial assets liabilities value profit loss.
 2019 2018 2017 Financial income
 Interest income cash equivalents restricted cash.
 Exchange rate adjustments gain forward exchange rate contracts.
.
 Financial expenses
 Interest expenses mortgage bank debt.
 Exchange rate adjustments loss forward exchange rate contracts.
 Commitment fee.
 financial expenses.
 41.
 financial items.


summary additions deductions allowance doubtful accounts years March 31, 2019 2018 2017
 Deductions uncollectible accounts recoveries.
 Balance Year Additions Costs Expenses Deductions Balance End Year
 Allowance doubtful accounts
 Fiscal 2019 $2.
 2018.
 2017.


. Contractual Obligations December 31, 2019
 Payment
 interest costs LIBOR regulatory requirements margin 2. 75% 3. 25% annum. 2022 Senior Secured Notes 2024 Notes NSM Loan Logistics Term Loan Navios Logistics Notes. interest payments $127. 8 million 1 $166. 6 million (1-3 $3. 8 million (3-5 years 5 years. principal amounts interest rates margins term.
 41% charter payments operational costs.
 Navios Logistics lease agreements port terminals offices. no office lease obligations.
 lease.
 payments acquisition six barges. $0. 3 million 1 $1. 8 million $0. 9 million (3-5 years. 1 million 5 years. shipbuilding contract.
 Obligations Less 1 1-3 3-5 5

 Long-term $1,581. $51. $1,461. $69.
 Operating Lease Obligations vessels 367. 4 109. 142. 81. 33.
 Lease Obligations 63. 13. 12. 31.
 six liquid barges 12.
 Rent Obligations(3).
 Land lease agreements 25. 23.
 $2,052. $168. $1,623. $170. $90.


Contract Assets Liabilities
 table receivables assets liabilities revenue contracts
 assets acquisition. sales commissions. deferred amortized over expected customer life.
 renewal initial. 2019 2018 recognized $6. 3 million $2. 9 million deferred acquisition costs.
 liabilities include deferred revenues advanced payments nonrefundable upfront activation set fees deferred amortized over life. deferred recognized revenues $397. 5 million $354. 2 million.
 receivable recognized goods right consideration unconditional. Payment terms 30 to 60 days.
 Accounts receivable $120,016 $133,136
 Contract assets 18,804 12
 liabilities 50,974 52


table TCE rates 2019 2018 earnings revenue.
 2019 revenues increased $8,426. 6% $335,133 from $326,707 2018. average daily rates decreased spot market exposure. revenue days decreased 7,678 2018 to 7,215 2019. three fewer vessels.
 Vessel expenses stable $134,618 $134,956 2018. Depreciation expense increased $1,987 $52,499 $50,512 2018. due amortization drydock costs Overseas Gulf Coast Sun Coast vessels service 2019.
 Two reflagged. Flag Product Carriers. Maritime Security Program.
 annual subsidy increased cost. $5,000 2019 $4,600 2018.
 $5,000 annually 2020 $5,200 2021. subsidy time charter. government.
 June 2019 PES explosion refinery Delaware Bay.PES refinery complex shut fire. redeployed. Gulf of Mexico.
 July 2019 PES Chapter 11 bankruptcy. outstanding receivables $4,300. recovery unknown. established loss provision $4,300. working recovery.
 June 2018 ship damage. repairs covered insurance. filed lawsuit lost earnings off 46 repair days.
 Act Carriers
 Average $25,036 $57,910 $31,254 $60,252
 Revenue 523 4,052 1,142 3,141
 Non-Jones Act
 Average $30,671 $13,912 $25,925 $12,097
 Revenue 482 417 707
 ATBs
 $19,117 $21,861 $15,333 $22,207
 255 773 990
 Lightering
$63,162 $66,041
 Revenue days 713


 Net Revenues Distribution Channel
 table details revenues channel
 revenues online include subscriptions downloadable content microtransactions products licensing royalties.
 Distribution business Overwatch League.
 Digital Online Channel Net Revenues decrease due lower revenues Destiny franchise Hearthstone.
 Retail Channel Revenues decrease due Call of Duty: Black Ops 4 Destiny franchise Crash BandicootTM N. Sane Trilogy.
 decrease offset by revenues Crash Team Racing Nitro-Fueled June 2019 Sekiro: Shadows Die Twice March 2019 higher revenues Call of Duty: Modern Warfare October 2019.
 2018 Increase Change
 Net revenues by distribution channel
 Digital online channels $4,932 $5,786 $(854
channels 909 1,107 (198)
 648
 revenues $6,489 $7,500


Liquidity Capital Resources
 Cash $1,066 $1,058 $1,310 million 2019 2018 2017. driven incentive payments retailer investments restructuring payments offset capital interest tax payments.
 additional liquidity cash balance global funding revolving credit facility. sources liquidity
 $454 million cash equivalents 2019 $383 million outside. review. growth initiatives U. S. indebtedness obligations.
 Net cash $1,066 $1,058 $1,310
 Cash-term securities $454 $524 $656
 Revolving credit facility $850


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 losses recognized operating results. derivative gains losses segment operating results.
 table net derivative gains (losses economic hedges commodity consumption foreign currency risk
 May 26, 2019 cumulative net derivative gains economic hedges $1. 4 million. net gains $1. million $0. 4 million. reclassify segment operating results gains $0. 9 million 2020 $0. 5 million 2021.
 Fiscal Years Ended
 May 26, 2019 27, 2018 28, 2017
 Net derivative gains (losses.
derivative gains reporting segments (1. 8) (7. 1) 5.
 corporate expenses $(1. 8) $6. 2 $(5.
 Grocery Snacks $(2. $3.
 Refrigerated Frozen (1. 3)
 International Foods. 2. (6. 9).
 Foodservice.
 Pinnacle Foods.
 Commercial.
 operating profit. $(1. 8)(7. 1) $5.


 liquidity revenue receivable payments vendors.
 Investing 2019 $284. 6 million AppRiver DeliverySlip $11. 7 million capital expenditures $8. 2 million software $3. 5 million networking equipment. business processes offerings.
 2018 $11. 8 million Erado $4. 2 million capital expenditures $2. 1 million computer equipment $1. 5 million software $500 thousand. business processes.
 Financing debt $179. 2 million $6. 4 million $1. 4 million $96. 6 million stock $415 thousand stock options. AppRiver DeliverySlip. $3. 8 million contingent Greenview Erado DeliverySlip. paid $1. 7 million lease liabilities $1. 9 million common stock.
 2018.4 million $10 million repurchase $656 thousand repurchase common stock $605 thousand acquisition Greenview. 2017 $3. 8 million repurchase $762 thousand common stock $4. 2 million stock options.
 Years Ended December 31,
 2019 2018
 cash $ 13,951 16,671 18,204
 investing (296,243 (15,952 (11,285
 financing 268,740 (6,593


IMPAIRMENT
 goodwill tested annually impairment carrying value recoverable amount higher less costs disposal.
 determined discounting five-year cash flow projections plans. reflect expectations revenue profit capital expenditures working capital cash flows.
 Cash flows beyond extrapolated perpetuity growth rates. exceed long-term historical growth rates.
 discount rates derived weighted average cost capital.
 table assumptions recoverable amounts.
 amounts Bell Wireless Wireline exceed current carrying values impairment test current year. change assumptions exceed recoverable amounts.
 Bell Media group decrease. 1%) perpetuity growth rate increase. 8% discount rate recoverable amount equal carrying value.
 PERPETUITY GROWTH RATE DISCOUNT RATE
 Bell Wireless. 8%.
 Bell Wireline.
Media. 8.


differences
 federal rate
 2017 President signed Tax Cuts Jobs Act reduced corporate tax rate 35% to 21% January 1, 2018. Company recorded $43 million tax benefit deferred tax assets.
 Federal state taxes $36. 5 million $2. 1 million $3. 7 million paid 2019 2018 2017. $418,000 $47. 2 million $17. 6 million refunded 2019 2018 2017.
 Company benefit uncertain tax position. measures benefits benefit 50% likelihood. June 1, 2019 no uncertain tax positions.
 under audit IRS 2013 2015. subject jurisdictions. state. resolutions not consolidated financial statements. 2013 open examination.
 1 2019 2018 2017
 Statutory federal income tax $14,694 $34,105 $,950
income tax 2,164 3,200
 Domestic manufacturers deduction 4,095
 rate change,973
 (197)
 (918)
 $15,743,859


 expenses increased $124. million. 9% 2019 2018 $114. million employee costs$45. 1 million stock-based compensation payroll $7. million computer hardware software $2. 5 million professional services fees.
 expenses increased $94. 7 million. 6% 2018 2017 $89. 6 million employee costs $3. 1 million computer hardware software $2. million professional services.
 2019 2018
 development $ 355,015 $ 230,674 $ 135,997 53. 9 % 69. 6 %
 revenues 22. 5 %. 2 %


Receivables Contract Balances
 receivables assets liabilities December 31, 2019
 Gross receivables $2. 3 billion $2. 5 billion doubtful accounts $94 million $132 million December 2019.
 Contract liabilities. until obligation. recurring services installation charges deferred term one five years. deferred revenue consolidated balance sheet. 2019 2018 recognized $630 million $295 million revenue liabilities January 1 2019.
 2018
 Customer $2,194 2,346
 Contract liabilities 1,028
 assets 130


Stock Appreciation Rights Awards
 quarter 2019 Pinnacle acquisition granted 2. 3 million stock appreciation rights estimated closing-Scholes $36. 37 per share Pinnacle employees unvested stock option awards. $14. 8 million pre-combination service purchase price liability. May 26, 2019 liability $0. 9 million post-combination service expense mark-to-market payouts.
 compensation income $13. 7 million. $14. 0 million expense $0. 2 million accelerated vesting restructuring lower market price. tax expense $3. 4 million.
 summary stock appreciation rights activity May 26, 2019
 Options Average Exercise Price Contractual Term Intrinsic Value
 Granted.
 Exercised.
 Expired.
 May 26, 2019. 4 13. 16.
 May 26, 2019. 16.


losses currency swaps recognized earnings reported foreign gain statements loss. effect swaps
 Company exposed to credit loss non-performance anticipate non. enters transactions counterparties rated A- better Standard & Poor’s A3 Moody’s. interest rate swaps different counterparties reduce concentration risk.
 December 31,
 gains (losses maturity termination cross currency swap (42,271) (25,733)
 losses (5,062) (6,533) (18,494
 Unrealized gains (13,239) 82,668
 gains swaps (18,301) (27,564 38,441


ITEM. 2 RATIFICATION KPMG
 2020 INDEPENDENT AUDITOR
. KPMG
 BOARD RECOMMENDS VOTE
 PROPOSAL
 Audit Committee KPMG LLP independent auditor fiscal year
 December 31, 2020 submitting shareholders ratification
 advisory. ratification not required
 good corporate practice.
 Audit Committee considered
 factors qualifications industry expertise prior performance control
 procedures staffing fees
.
 Audit Committee KPMG LLP independent auditor fiscal year December 31, 2020 submitting shareholders ratification. ratification not required good corporate practice. considered factors qualifications industry expertise prior performance control procedures staffing fees.
 If shareholders fail vote Audit Committee KPMG appoint without resubmitting.shareholders ratify appointment Audit Committee may select different independent auditor Company’s interests.
 audit 2019 financial statements engagement letter with KPMG
 audit services. future disputes
 subject alternative resolution procedures
.
 audit 2019 financial engagement letter with KPMG audit services. future disputes subject procedures.
 table lists fees costs billed by KPMG for 2018
 2019 services
 cost services auditing annual financial statements internal control financial reporting quarterly financial statements subsidiaries registration statements statutory audits foreign subsidiaries consultations accounting standards. includes final billing $785,000 after 2019 proxy statement not reflected in auditor fee table.
 cost preparing reports accounting consulting services.
 costs tax planning consultation compliance approximately $1,300,000 2018 $100,000 in 2019.
Audit Committee procedures
 services independent auditor. review
 non-audit independence. procedures prohibit non-audit services unless permitted pre-approved by Committee Chairman. Chairman cost exceed $250,000. Committee pre-approved auditor $75,000 per quarter miscellaneous tax services. Chairman Chief Financial Officer advise Committee cost services not-approved. regulations pre-approval requirements Audit Committee waiver provisions 2018 2019.
 KPMG partners present at meeting.
 questions
.
 Ratification KPMG’s independent auditor 2020
 majority.
 Audit Fees(1) $16,014,014 $17,639,702
 Audit-Related Fees(2) 106,528 153,203
 Tax Fees(3) 1,318,798 119,098
 Total Fees $17,439,340 $17,912,003


Movements self‐insured risks restructuring onerous contracts store exit costs provisions
 increase in restructuring contracts exit costs 2019 attributable provisions BIG W network review Note 1.
 provision recognised obligation past probable outflow economic benefits reliable estimate. estimate risks uncertainties.
 liability recognised for benefits annual long service leave.
 Liabilities settled within 12 months measured nominal values remuneration rate.
 Liabilities measured as present value future cash outflows services.
 provision self-insured risks estimated liability for workers’ compensation public liability claims.
 Provision restructuring recognised plan expectation.
 onerous contract unavoidable costs exceed economic benefits. reflect least net cost of exiting lower cost fulfilling compensation failure.
CONTRACTS STORE EXIT COSTS
 SELF‐INSURED RISKS
 Balance 596 593 679 800
 Net provisions 161 225
 Cash payments (162) (178)
 603 596 737 679
 173 177 280 256
 Non‐current 430 419 457 423
 603 596 737


Purchases Accenture plc Class Shares
 table purchases fourth quarter fiscal 2019. year-to-date information purchases redemptions exchanges Analysis Financial Condition Operations—Liquidity Capital Resources—Share Purchases Redemptions.
 Average price per share reflects cash outlay divided shares acquired employee forfeiture.
 Since August 2001, Board Directors Accenture plc
 open-market share purchase program shares.
 fourth quarter 2019 purchased 2,048,307 shares
 $389 million. expiration
 August 31, 2019 authorization share purchases redemptions $3,674 million. Board authorized $35. 1 billion share purchases redemptions Canada Holdings
 fourth quarter 2019 purchased 66,017 shares unrelated plans. withholding payroll tax obligations equity share plans.purchases affect authorization open-market.
 Shares Average Price Paid Share Approximate Dollar Value
 millions.
 June 1, 801,659 $183. 18 785,600 $3,924
 July 1 31, 462,629  $194. 65 442,846 $3,832
 August 1 850,036 $193. 23 819,861 $3,674
 2,114,324 $189. 73 2,048,307


table sources revenue
 Subscription revenue increased $69. 9 million 15% 2019 2018. increased 16%. new business upsells cross-sells renewals.
 Professional services revenue decreased $31. 3 million 48%. migration global partners.
 revenue increased $76. 3 million 19% 2018. business renewals. decreased $20. 4 million 24%, 2018. services global.
 December 31,
 Subscription revenue $542,968 $473,052 $396,764
 94. 2%. 9%. 3%
 $33,555 $64,839 $85,221
 5. 8%.
 revenue $576,523  537,891 481,985


Liquidity Capital
 Cash Flows
 $270. 4 million $158. million equity $143. business divestiture $128. million inventories solar $66. million accounts receivable $38. million assets $25. million sale $17. 3 million equity $8. million lease liabilities. prepaid expenses net loss $7. million $2. 2 million assets. offset $80. million depreciation amortization $79. million accounts payable liabilities $50. million advances $33. 8 million loss residential lease $27. 5 million contract liabilities stock-based compensation $26. million $9. million non interest expense $8. million lease $7. 1 million loss earnings $5. million non-cash restructuring charges.deferred income taxes impairment long-lived assets $0. 8 million.
 December 2019. transferred. excluded consolidated balance sheets. sold $119. 4 million $26. 3 million 2019 2018. uncollected accounts receivable $11. 6 million $21. million.
 Net cash 2018 $543. 4 million net loss $917. 5 million $182. million long-term financing receivables $127. 3 million decrease accounts payable accrued liabilities $59. million gain business divestiture $54. million sale equity investments $43. million contract assets $39. million inventories $30. million contract liabilities $6. million deferred income taxes. million. 2 million increase accounts receivable. offset impairment property plant equipment $369.lease $189. 7 million non-cash charges $162. 1 million loss sale $62. 2 million $44. 4 million advance payments $39. 5 million $22. 8 million prepaid expenses $17. 8 million earnings $6. 9 million income taxes $6. 4 million loss $3. 9 million dividend.
 $267. 4 million loss $1,170. 9 million $216. 3 million liabilities $123. million financing receivables $38. 2 million inventories $25. 9 million earnings $7. million income taxes $5. 3 million gain sale equity $1. 2 million accounts receivable offset $624. 3 million impairment non-cash charges $239. 6 million.contract liabilities construction $110. million prepaid expenses $89. 6 million 8point3 Energy Partners investment balance $68. million advance payments $30. million dividend $10. million contract assets $2. 3 million project assets solar
 cash $21. 4 million $60. million property $42. million investments $40. 5 million divestiture $2. million divestiture. offset cash solar power systems $53. 3 million $47. million $12. million $10. 9 million residential lease assets.
 Net cash 2018 $274. 9 million $420. 3 million $23. 3 million business divestiture $13. million dividend equity investees. offset $167. million capital expenditures solar cell manufacturing $14.million.
 Net cash 2017 $293. 1 million $283. million capital expenditures solar cell manufacturing $18. 6 million $1. 3 million securities. offset sale joint ventures $6. million $3. 8 million dividend equity investees.
 2019 $344. 3 million $171. 9 million common stock $110. 9 million bank loans debt $69. 2 million non-recourse residential financing $35. 5 million $3. million power plant commercial financing. offset $39. million business $5. 6 million treasury stock tax $1. 6 million settlement contingent consideration.
 cash 2018 $85. 8 million $174. 9 million proceeds residential financing $129. 3 million $94.power plant financing. offset $307. 6 million repayments. 75% debentures bank loans $5. 5 million purchases treasury stock tax.
 2017 $589. 9 million $351. 8 million proceeds $179. 2 million residential lease $82. 7 million residential financing. offset 19. 1 million repayments bank loans $4. 7 million purchases treasury stock tax.
 Fiscal Year
 29, 2019 2017
 cash operating $(270,413)(543,389(267,412)
 investing $21,366 $274,900(293,084
 financing $344,314 $85,847 $589,932


. Financial Information
 Cash equivalents
 table presents equivalents balance sheets cash flows ASU Note 1 Accounting Policies.
 26, 2019
 Cash $ 2,216 $ 2,727
 equivalents
 $ 2,325 $ 2,941
 Short-term restricted cash
 Long-term restricted cash
 $ 2,331 $ 2,947


Preliminary Purchase Price Allocation
 Assemble Systems PlanGrid BuildingConnected acquisitions Autodesk recorded assets liabilities assumed estimated fair values. excess goodwill. attributable synergies after acquisition. no goodwill deductible. income tax.
 table summarizes fair value assets acquired liabilities assumed combinations fiscal year January 31, 2019
 Q4 2019 Autodesk adjustment deferred tax liability Assemble Systems acquisition. increased goodwill reduced assets $0. 1 million.
 estimated fair values assessments Autodesk. PlanGrid BuildingConnected estimates assumptions change. tax impact change. Different estimates assumptions different valuations assets liabilities goodwill.
 Assemble Systems PlanGrid BuildingConnected
 Developed technologies.
 Customer relationships non-current intangible assets.26. 9 136.
 2. 20 6 29.
 72. 206.
 Deferred revenue. (25. (30.
 4. 18. 26.
 $93. $777. $253. $1,124.


AMERICAN TOWER CORPORATION SUBSIDIARIES STATEMENTS millions
. NON LIABILITIES
 reduction Deferred rent new lease accounting standard.
 Deferred rent liability $506.
 Unearned revenue. 504.
 liabilities. 253.
-current liabilities. $1,265.


Contractual Obligations
 table obligations November 29, 2019
 Term value $2. 25 billion. interest London Interbank Offered Rate margin. 500% to 1. 000% base rate. 040% to. 110%. Interest payable periodically period. maximum commitment interest $23. 2 million.
 value Notes $1. 89 billion. Interest payable semi-annually February 1 August 1. maximum commitment interest $200. 1 million remaining duration.
 Term Loan Revolving Credit Agreement covenants maximum leverage ratio. impact credit cash business plan. senior notes covenants.
 cash dividends default. anticipate cash dividends.
 Payment
 Less than 1 1-3 years 3-5 years 5 years
 Term Loan Notes interest $4,373. $3,227. $65.$65. $1,016.
 lease 711.
 2,036. 545. 935 555
 $7,121. $3,860. $1,158. $747.,354.


. MANAGEMENT FINANCIAL CONDITION RESULTS States
 value change FCR liability
 table FCR liability.
 Includes incentive payments Bank Partners surplus finance charges fixed servicing fee credit losses cash recoveries loans proceeds transferring rights Charged-Off Receivables. incentive payments charges deferred.
 reversal finance charges deferred loan balances.
 fair value adjustment reversal estimated date. recognized cost revenue Consolidated Statements Operations.
 Ended December 31,
 Beginning balance $138,589 $94,148 $68,064
 Receipts(1) 159,527 129,153 109,818
 Settlements(2) (262,449 (181,590) (127,029)
 Fair value changes cost revenue(3) 170,368 96,878 43,295
$138,589,148


Non-operating Corporate
 Selling administrative expenses December 2019 decreased $8. 6 million to $24. 9 million from $33. 5 million 2018. decrease driven by bonus expense consulting fees employee wage benefits expenses.
 HC2 Compensation Committee establishes salary cash equity bonus arrangements employees. growth NAV formula 2014.
 determined subtracting 1 threshold return rate. hurdle rate 7% plan allows 12% growth rate.
 cash equity bonus arrangements 2019 2018 $4. 4 million decrease expense. Compensation NAV. 2019 2018 grew 21%.
 declined 26. 1% external events Insurance segment management fee agreement expectations future dividends discussions regulator.
 decline reduces deferred cash compensation 2017 2018. total reduction 2019 $0.8 million back 2017 2018 awards unpaid December 31, 2019. plan requires future NAV growth high water mark Compensation NAV 2019.
 Ended December 31,
 Increase
 Selling administrative $24. $33.
 Depreciation amortization.
 Loss operations.


table cash flows years
. increased $64. 4 million 2019 working capital $37. million lower income tax$41. 3 million higher net income non $27. 3 million
 Pension Postretirement Contributions plans minimum. no minimum requirement. 2019 2018 contributed $6. 2 million $5. 5 million. pension 2020. Note 12 Retirement Plans financial statements.
 cash operations
 $168,405 $104,055
 Investing (13,819) 65
 Financing (5,730)
 increase $148,856 $(275,813)


. Trade payables accounting policies recognise fair value original invoiced. carry amortised cost interest method.
 Deferred income reclassified contract liabilities IFRS 15. remaining balance includes £51m current £586m non-current liabilities Broadband Delivery UK programme grants re-investment.
 operating lease liabilities deferred gains 2001 sale leaseback transaction.
 31 March £m
 Trade payables 4,141 3,991
 taxation social security
 Other payables 387
 Accrued expenses 630
 Deferred income


EQUITY SECURITIES
 common stock Nasdaq Market. Trading March 29, 1988. March 16 2020 147 holders Common Stock.
 high low sale prices Nasdaq years
 First Quarter $ 5. 99 $ 8.
 Second $. 79.
 Third $ 2. 66.
 Fourth Quarter $ 1. 88 3.


DEPOSITS
 analysis deposits currencies
 effective interest rate deposits three months to years 31 December 2019 3. 57% (2018 4. 08%).
 deposits past due impaired. 31 December carrying amounts approximated fair values.
 non-current assets
 deposits 19,000
 current assets
 55
 USD deposits 16,325,349
 Other currencies


Per Share
 computed income Leidos shares. Diluted dilutive shares. dilutive effect equity compensation awards reflected in EPS treasury stock method.
 Company issues unvested stock awards forfeitable rights dividends. dilutive treasury stock method.
 weighted average shares
 Anti-dilutive awards excluded. 2019 2017 no anti equity awards. 2018 1 million stock options awards anti-dilutive.
 January 3 2020 December 28, 2018 29, 2017
 average shares 143 151 152
 Dilutive options awards
 Diluted 145 153 154


Segment Results
 revenue operating
 May 1 2017 sold data centers colocation business. financial statements Item 8 Part II.
 Ended December 31,
 Operating revenue
 International Global Accounts $3,596 3,653
 Enterprise,133
 Small Medium Business,956
 Wholesale 4,074,397
 Consumer 5,642 6,116
 revenue $22,401 23,443 17,463
 Operations
 $22,401


ITEM 3.
 Financial Data
 table consolidated financial data 2019. derived Financial Statements International Financial Reporting Standards 18.
 data euros.
 Note. earnings per share.
 balances include bonds private placements bank loans. Note. financial liabilities.
 FINANCIAL DATA IFRS
 millions 2019 2018 2017 2016 2015
 Income Statement Data Years December 31,
 Cloud revenue 6,933 3,769,993
 Software licenses 16,080
 23,012 20,622,424
 Total revenue 27,553 24,708 23,461 22,062
 Operating profit 4,473 5,703 4,877
 Profit after tax 3,370 4,088,046 3,629
Profit 3,321 4,083 4,008 3,642 3,064
 Earnings
.
.
-average shares
 Financial Position December 31,
 Cash equivalents 5,314  8,627  4,011  3,702  3,411
 Total assets 60,215 51,502 42,484 44,262 41
 3,273 1,125 1,561 1,813
 Non-current 12,923 10,553 5,034 6,481 8,681
 Issued capital 1,229
 Total equity 30,822  28,877 25,515 26,382


Vessels Construction
 Teekay LNG commitments costs December 31, 2019
 June 2019 LNG equipment LNG carriers 2021 2022 $60. 6 million. remaining cost $49. 7 million.
 30% ownership Bahrain LNG Joint Venture LNG terminal. debt financing $34 million $10 million Teekay LNG commitments.
 2021
 Consolidated LNG carriers 49,652 11,979 22,382 15
 Bahrain LNG Joint Venture


 revenues
 United States $529 million $386 million $281 million 2019 2017. United Kingdom $86 million $63 million $46 million. customer 10% revenue.
 Year Ended June 30
.
 Adjusted
 Americas $603,959 $439,363 $317,432
 EMEA 474,712 347,509 193,790
 Asia Pacific 131,456 94,106 115
 $1,210,127 $880,978 $626,684


Totals rounding.
 CEO transition costs include stock-based compensation $16. 4 million acceleration stock awards former CEOs' transition agreements fiscal year January 31, 2018.
 non-GAAP financial measures exclude
 Stock-based compensation expenses. operating expenses. valuation award types excluding allows comparisons business results companies.
 Amortization of technologies purchased intangibles. acquisition acquisitions. inconsistent affected by timing size. charges budgeting. intangible assets contributed revenues. Amortization recur future periods.
 CEO transition costs. exclude amounts paid former CEOs departure transition agreements severance payments acceleration restricted stock units vesting performance stock units legal fees. excluded recruiting costs new CEO. non-recurring not indicative of ongoing operating expenses.excluding CEO transition costs non-GAAP results-period comparability
 Goodwill impairment. non-cash charge-down goodwill fair value asset impaired. non-cash charges operating expenses forecasting
 Restructuring exit costs. realigning business strategies economic conditions. costs termination benefits employees facilities cancellation contracts. exclude charges not reflective business results. investors understand effects operating expenses.
 Acquisition related costs. due diligence professional fees financing integration expenses. unpredictable dependent factors unrelated. size complexity acquisition not indicative future costs. excluding facilitates comparison financial results historical results other companies.
 loss strategic investments dispositions. exclude gains losses non-GAAP measures results. Included non-cash unrealized gains losses derivative components dividends gains losses sales impairment investments.excluding items useful correlate performance business losses gains incurred strategic investments dispositions.
 Discrete tax items. exclude GAAP tax non-GAAP net income-GAAP tax projected-GAAP tax rate. items include expenses ordinary income unusual items tax impact stock-based compensation. changes judgment costs business combinations realizability deferred tax assets tax law. assists investors understanding tax provision effective tax rate. exclusion provides information operational performance.
 valuation allowance deferred tax assets. non-cash charge. non-cash charges assess cash expenses budgeting forecasting
 Income tax effects GAAP non-GAAP costs expenses. due stock-based compensation amortization intangibles restructuring charges exit costs.
 Fiscal Year Ended January 31,
 2019 2018 2017

 Diluted income share. 37. 61
 Stock-based compensation. 12. 11.
 Amortization technologies.
 purchased intangibles.
 transition costs.
 Acquisition costs.
 Restructuring exit costs.
 loss strategic investments.
 tax provision. 14.
 Income tax effect non-GAAP adjustments. 08 31
 Non-GAAP diluted income (loss share. 48. 50


FINANCIAL STATEMENTS
 Geographic
 Sales countries origin.
 Ended December
 Sales
 United States $279,904 $313,489 $287,092
 Singapore 32,957
 Taiwan
 China 87,342 79
 Czech Republic 33,214 36,528
. 15,772 13,560 10
 sales $468,999 $470,483 $422,993


. Financing Receivables Operating Leases
 Receivables
 lease loan financed service contracts. Lease sales direct-financing collateralized security. four years. Loan hardware software services network installation. three years. Financed service contracts technical support advanced services. Revenue deferred recognized one to three years.
 summary financing receivables
 July 27, 2019 Lease Loan Receivables Financed Service Contracts
 Gross $2,367 $5,438 $10,174
 Residual value
 Unearned income
 Allowance credit loss
. $2,326 $5,367 $2,360 $10,053
. $1,029 $2,653 $1,413 $5,095
 Noncurrent 1,297
. $2,326 $5,367 $2,360 $10,053


Advertising Costs $278,057 $365,859 $378,217 years September 2019 2018 2017 charged expense.
 Net Income Per Share common dilutive.
 268,000 108,000 shares 2019 2018 excluded antidilutive. No shares antidilutive September 2017.
 Estimates financial statements estimates assumptions assets liabilities revenues expenses. estimates include rebates revenue recognition stock compensation valuation inventory long-lived intangible assets goodwill. results differ estimates.
 2016, FASB issued ASU 2016-02 Leases. amendments ASU 2018-01 2018-11 July 2018-20 December 2018. recognition lease assets liabilities. effective reporting periods December 15, 2018 early. October 1, 2019. adoption ASU 2016-02 no impact earnings net income.ASU 2016-02 October 1 2019 recording right-of-use asset offsetting lease liability $2. 3 $2. 9 million.
 January 2017 FASB issued ASU 2017-04 Intangibles-Goodwill accounting goodwill impairment Step 2. carrying value fair value. interim annual periods January 1 2020 early adoption January 1 2017. financial statements.
 September 30
 Net income $4,566,156 $4,274,547 $3,847,839
 common shares 13,442,871 13,429,232
 Dilutive shares 8,343
 13,451,214
 Earnings per share
.
.


 Company grants employees. one share. withholds shares tax obligations vesting. compensation RSUs $3. million $1. $1. million 2019 2018 2017.
 table summarizes activity 2019 2009 Plan weighted average grant date value 2018
 RSUs PRSUs
 Shares Weighted Average Grant Date Value
 Nonvested January 1 2017 $23. 52
 Granted.
 Vested.
 Forfeited
 January 1 2018.
.
.
 Forfeited
 December 30, 2018.
.
.
 Forfeited
 Nonvested December 29, 2019 $12.