FINANCIAL STATEMENTS
 Inventories
 December
 Finished goods $9,447 $10,995
 Work-process 14,954
 Raw materials 23,363 25,746
 reserves
 $42,237 $43,486


AMERICAN TOWER CORPORATION FINANCIAL STATEMENTS amounts millions
 domestic foreign
 December 31,
 $1,527. $1,212. $971.
 389. 284.
 $1,916. $1,154. $1,256.


OFF-BALANCE
 June 30, 2019-balance obligations $665,107. $71,633 leases 2020 2030 $593,474 purchase commitments. 2017 JHA First-service debit card processing. purchase commitment $555,754. commitments open orders. excludes $12,009 uncertain tax positions.
 operating lease obligations recorded 2020 ASU. 2016-02 July 1 2019.
 obligations June 30, 2019 1-3 3-5 5
 Operating lease $15,559 $25,399 $19,004 $11,671 $71,633
 Purchase obligations 62,637 86,875 107,188 336,774 593,474
 $78,196 $112,274 $126,192 $348,445 $665,107


maximum exposure credit risk trade receivables reporting date
 significant accounts. 5m. 6m trade receivables 31 March 2019.
 Retailers 20. 21
 Manufacturer Agency.
.
 24.


. Trail commission asset
 Recognition measurement classification
 Group revenue selling product payments. revenue assets at expected value. adjusted cash flows. adjustment recognised as profit loss.
 Cash receipts within 12 months current. non-current.
 commission revenue asset
 Directors estimates assumptions industry data historical experience.
 Attrition rates Health relevant. vary by provider duration higher policies under two years. attrition rates portfolio 30 June 2019 ranged 7. 5% 26. 5%. average duration attrition increase 0. 2% higher increases policies shorter.
 Group engages Deloitte Actuaries Consultants assumptions for health mortgages life trail revenue. include termination lapse rates mortality rates inflation fund premium increases impact Federal Government policies.
variable considerations constrained reversal revenue. Group assumptions results.
 CONSOLIDATED
 2019 2018
 Current 25,626 22,103
 Non-current 88,452 80,817
 trail commission 114,078 102,920
 Reconciliation asset
 Opening balance 102,920 93,564
 revenue 34,732 33,007
 Cash receipts (23,574,651
 Closing balance 114,078 102,920


Impairment Goodwill Intangibles
 Before impairment losses carrying goodwill allocated
 Impairment tested annually.
 Group estimates recoverable. less than carrying reduced. impairment loss recognised expense Consolidated Statement Profit Loss.
 Goodwill impaired if carrying value greater than fair value less costs disposal value use.
 March 2019 Directors reviewed value goodwill. assumptions discount rates growth rates changes billings direct costs.
 Group prepares cash flow forecasts financial forecasts five years. growth rates based market industry forecasts regional considerations experience. Discount rates estimated market weighted average cost capital.
 31 March 2019 2018
 273. 288.
 413. 434.
.
 785. 826.


. Financial Instruments
 fair values Company’s financial instrument received asset sale liability recorded hierarchical disclosure framework subjectivity inputs. levels
 Level 1: Quoted prices active markets. 2: Observable prices. Level 3: Unobservable inputs little market data.
 Company classifies financial instrument Level 2 fair value hierarchy market inputs. interest rate swap valued valuations third-party pricing services. inputs one month LIBOR-based yield curves. reviews third-party pricing models assumptions pricing processes Level 2. considers risk nonperformance's credit risk. December 31, 2019 2018 adjustments valuations third party pricing providers.
 2018
 Assets
 Interest rate swap $1,623
 Liabilities
 Interest swap $37


ten clients 42. 2%. 9% revenues 2017.
 States $614,493 $668,580 $644,870
 Philippines 250,888 231,966
 Costa Rica,078 132
 Canada 99,037 102 112
 El Salvador 75
 123 118,853
 Americas 1,296,660 1,330,638 1,325,643
 94,166 91,703 81,634
,847 178
 318,013 294,954 260,283
 $1,614,762 $1,625,687 $1,586


OPERATING EXPENSES
 three-month period August 31, 2019 average foreign exchange rate. 3222 USD/CDN.
 Fiscal 2018 IFRS 15 accounting policy Cogeco discontinued operations. policies operations sections.
 Fiscal 2019 translated average foreign exchange rate. 3100 USD/CDN.
 2019 fourth-quarter operating expenses increased. 6%. 1% additional costs American broadband services programming costs headcount marketing initiatives FiberLight acquisition
 months August Foreign exchange impact
 Canadian broadband services 147,815 153,560.
 American broadband services 148,215 136,506.
 Inter-segment eliminations.
,977.


no debt 2019 2018 2017. Apple represented 17. 6%. 1% 10. 5% revenues ADG AMS MDG.
 $75 million accounts sold without recourse 2018).
 accounts 1,396
 doubtful accounts


Stock-based compensation expense recognized statements awards January 1 2006,. impact results 2019 2018 2017
 No compensation capitalized inventories 2019 2018 2017.
 Cost revenue $78 $129 $121
 Research development 2,242 614
 Selling general administrative 824 1,012 706
 Total costs expenses $3,144 $1,901


ITEM 7. MANAGEMENT DISCUSSION ANALYSIS FINANCIAL CONDITION RESULTS OPERATIONS States Dollars share
 Business Metrics
 review operating financial metrics performance trends formulate plans strategic decisions.
 Transaction Volume. dollar value loans
. indicator revenue profitability
 grown years.
 Loan Servicing Portfolio. consumer loan balance interest fees serviced. servicing activities. average portfolio December 31, 2019 2018 2017 $8,213 million $6,303 million $4,501 million.
 Active Merchants. home improvement healthcare providers consumer application twelve months. volume size engagement growth merchant network future revenue profitability. impacted corrective action merchants.
 Cumulative Consumer Accounts. number accounts approved outstanding zero balances. not revenue brand awareness value data. data future growth customers merchants.
Ended December 31,
 Transaction Volume
 $5,954 $5,030 $3,767
 18% 34%
 Loan Portfolio
 Dollars $9,150 $7,341 $5,390
 25% 36%
 Merchants
 17,216 14,907 10,891
 15% 37%
 Consumer Accounts
.
 Percentage 35% 43%


.
 Maple Leaf Foods Inc. producer food products
 Greenfield.
 portfolio prepared meats ready meals fresh pork poultry
 plant protein. 6985 Financial Dr. Mississauga Ontario.
 employs 13,000 Canada U. S. Asia. shares trade Toronto Stock Exchange.
. portfolio prepared meats meals fresh pork poultry plant protein. 6985 Financial Dr. Mississauga Ontario. employs 13,000 U. S. Asia. shares Toronto Stock Exchange.
 Sales 2019 $3,941. 5 million $3,495. 5 million last year increase. 8%. increased. 2% pricing growth plant protein 23. 6%.
 Net earnings $74. 6 million. $101. 3 million.share. commercial performance tax offset investments plant protein volatility hog. earnings impacted $12. 1 million non-cash changes biological assets derivative contracts excluded Adjusted Operating Earnings.
 2019 $145. 4 million $215. 6 million last year Share
 $0. 68 $1. 22.
 Operating Review
 page 3.
 Twelve months December
 earnings share
 Sales $3,941. $3,495.
 Net Earnings $74. $101.
 Earnings Share $0.
 Adjusted Operating Earnings $145. $215.
 Share.


 annually Board. holds office
 appointment successor death
. officers.
 John Sarvis
 Chief Executive Officer President 2015. Chairman Board 2016. Vice President Ceramic Products 2005 2015. Divisional Vice President
 1998. Marketing Operational. 1973
 Jeffrey Schmersal
 Chief Operating Officer. Senior Vice President 2017. Divisional Vice President Specialty Products. Global Business Manager
 2006 2014. Quality Supply Chain 1994.
 Michael Hufnagel
 Chief Financial Officer. Vice President Corporate Finance. Director Accounting
 Reporting.
 John Lawing
 Senior Vice President Officer.
. Vice President. Divisional Vice President
. Engineering Technical Operational Plant management.
 1981.
. Willing King
 Senior Vice President Tantalum Products. Deputy General Manager
. Vice President. Director 2000. Technical Service Sales
 Marketing. since 1984.
Age
 John Sarvis 69
 Jeffrey Schmersal Operating
 Michael Hufnagel Senior Vice President
 John Lawing 68
. Willing King Tantalum
 Eric Pratt
 Evan Slavitt 61
 Steven Sturgeon Connector Products
 Alexander Schenkel


Note 10—Goodwill
 table presents changes goodwill by segment
 fiscal 2019 Company changed composition Defense Solutions segment new operating segments units. contracts reassigned between Civil Defense Solutions segments "Note 24—Business Segments"). carrying goodwill re-allocated for testing goodwill for impairment.
 Company evaluated goodwill for impairment quantitative step one analysis goodwill not impaired.
 fiscal 2019 qualitative analysis units fair values quantitative step one analysis not necessary.
 fiscal 2018 performed qualitative quantitative analysis units. fair values quantitative step one analysis not necessary.
 fair value excess. fiscal 2017 quantitative analysis all units. fair values exceeded carrying values.
 no goodwill impairments identified annual evaluation.January 3 2020 December 28, 2018 Company recorded correction $3 million $6 million assets liabilities IS&GS Transactions.
 losses $369 million $117 million Health Civil segments.
 Goodwill December 29, $2,055 $1,998 $921 $4,974
 Foreign currency adjustments
 Transfers assets
 Adjustment goodwill
 December 28, 2,015 1,924 4,860
 Goodwill re-allocation
 Acquisition IMX
 Divestiture health staff business
 adjustments
 Adjustment goodwill
 January 3 $2,039 $1,907 $4,912


Adjusted Return Invested Capital TORM defines RoIC earnings before interest tax less impairment losses reversals divided by average invested capital less impairment.
 RoIC returns capital impacts impairment. longer-term value creation goals. calculated
 Average invested capital opening closing balance.
 impairment balances goodwill.
 EBIT less 205.
.
 less tax impairment.
 Average invested 1,627. 1,437. 1,396.
 Average impairment 98. 185.
 less impairment 1,725. 1,622. 1,581.
 Adjusted RoIC 4.


16
 recognized right-of-use assets $2,257 million lease liabilities $2,304 million deficit $19 million. leases $1,947 million liabilities $2,097 million December 2018 IAS 17. January total right-use assets lease liabilities $4,204 million $4,401 million. impacts.
 operating lease commitments December 31, 2018 $1,612 million. difference liabilities $2,304 million increase $1,122 million renewal options $112 million non-monetary transactions decrease$542 million discounting future lease payments borrowing rate 3. 49% January 1.
 Prepaid expenses 244
 current assets
 Property plant equipment 24,844
 non-current assets
 Trade payables liabilities
 Debt due one year 4
 Long-term debt 19,760
Deferred tax 3,163
 non-current
 Deficit (4,937)
 Non-controlling interest 326


convertible notes
 2019 unamortized discount $65. 3 million amortized four years. equity $100. 8 million. conversion price $31. 62 share value $992. million.
 Debt principal $460,000
 Unamortized discount 65
 convertible debt $394,687


balance sheet
 31 March 2019
 financial statements approved Board Directors 6 June 2019.
 Fixed assets
 Investments 1,216. 1,212.
.
 Current assets
 415. 440
 Cash cash equivalents.
 415.
 Creditors one year (411.
 current assets.
 1,220. 1,365.
 Capital reserves
 Called share capital.
 shares.
 Capital redemption reserve.
 earnings 1,227. 1,372.
 equity 1,220. 1,365.


receivables nonrecourse borrowings. $1,062 million $710 million December 31, 2019 2018.
 sale December 31, 2019 2018.
 Investment Sales Direct Financing Leases Commercial Financing Client Loan Installment
 $6,846 $11,889 $13,614 $32,348
 Unearned income
 investment $6,320 $11,852 $12,981 $31
 Allowance credit losses
 Unguaranteed residual value
 receivables $6,895 $11,838 $12,802 $31,536
 $2,834 $11,838
 Noncurrent portion $4,061 9


Contractual Obligations
 impact on liquidity capital resources with cash flows. plan measure liquidity capital resources annual budgeting. table summarizes contractual obligations at July 27, 2019
 Operating Leases Note 13 Consolidated Financial Statements
 Purchase Commitments with Contract Manufacturers Suppliers purchase components contract manufacturers manufacturing services. commitments shortterm manufacturing capacity. long pricing. commitments firm noncancelable unconditional commitments. liability for commitments future demand forecasts inventory. July 27, 2019 liability $129 million not included table.
 Other Purchase Obligations contractual obligations. Purchase orders not included authorization to purchase obligations.
 Long-Term Debt principal debt instruments. Note 11 Consolidated Financial Statements.
 Transition Tax Payable future cash tax payments.tax earnings foreign subsidiaries Tax Act. Note 17 Consolidated Financial Statements.
-Term Liabilities noncurrent income taxes deferred compensation tax. uncertainty noncurrent income taxes $1. 3 billion deferred tax $95 million. uncertain tax positions. Note 17 Financial Statements.
 PAYMENTS DUE PERIOD
 July 27, 2019 1 3 Years
 Operating leases $1,179 $441
 Purchase commitments manufacturers suppliers 4,967,239
 purchase obligations 1,490 676
 Senior notes 20,500
 Transition tax 8,343
 Other long-term liabilities. 1,214
 Total $37,693 $12,105 $9,062
 1,428
Total,121


Systems profit margin IBM Z declines Power Storage Systems.
 pre-tax income decline performance IBM Z investment innovation portfolio.
 year December 31 2018 2017. Percent Margin Change
 Hardware profit $2,590 $2,893.
 40. 44. 6%.
 Software $1,412 $1,469.
 84. 86. 4%.
 profit $4,002 $4,362.
 49. 8% 53. 2%.
 Pre-tax income 904 $1,128.
. 12. 6%


Selling administrative costs 2019 were $211. 1 million decrease $10. 8 million compared $222. 0 million 2018. table shows costs twelve months October 31, 2019 2018.
 decrease advertising expense television radio advertising 2019. change start-up expense construction. Non-construction expenses labor training recorded start-up expense until operations. start-up expenses. increase. increase until production. expenses recorded as costs goods sold. decrease stock compensation expense earned November 1, 2017 lower 2016. II Item 8 Financial Statements Stock Compensation Plans. increase legal expenses attributable defense. increase third-party sales commissions adoption ASU 2014-09 Revenue. net income 2019 SG&A expenses impacted offset increase revenue.ASU 2014-09 SG II 8 Financial Statements Accounting Policies.
 Selling Administrative Costs
 months 2019
 Advertising $11,071 $32,624
 Trainee 16,254
 Start-up 9,361 13,394
 Stock compensation 11,786 15,702
 SG expenses 62,653 64,705
 Employee Stock Ownership Plan
 Depreciation machinery equipment 7,067
 Sanderson Farms Championship 8,817
 Administrative salaries 45,108
 Legal 25,102
-party sales commissions
 SG $211,141 $221,965


Operating Expenses
 Results Operations.
 Cost Services includes salaries wages benefits materials supplies content contracted services network access transport customer provisioning computer systems outsourcing contracts technical facilities. costs allocated between Selling administrative expense.
 decreased $413 million. 3% 2019 network access product realignment charge employee costs Voluntary Separation Program digital content costs.
 offset rent new lease accounting standard regulatory fees device protection package.
 Wireless Equipment decreased $369 million. 6% cycle higher priced devices.
 Selling Administrative Expense salaries wages benefits bad debt taxes advertising sales commission call center technology regulatory fees professional service fees rent utilities. customer care costs.
 decreased $1. 2 billion.8% 2019 compared 2018 due employee costs Voluntary Separation Program decrease severance pension benefits charges
 acquisition integration charges Yahoo’s net gain dispositions assets offset increases advertising sales commission bad debt. increase sales commission due lower net deferral commission costs Topic 606 January 1 2018 modified retrospective approach.
 Depreciation Amortization Expense decreased $721 million. 1% 2019 change net depreciable assets. Goodwill Impairment annual impairment test.
.
 millions Increase
 December 2019.
 Cost services $ 31,772 $ 32,185 (413).
 Cost wireless equipment 22,954 23,323.
 Selling administrative expense 29,896 31,083 (1.
Depreciation amortization 16,682 17,403 (721).
 goodwill 4,591.
 $101,490 108,585.


recorded $14. $15. $12. 3 million amortization intangible 2019 2018 2017. no impairments long-lived assets.
 tables weighted-average value assets
 2019
 Carrying Amount Accumulated Amortization Net Value
 Customer relationships $123,731 $(39,335) $84,396.
 technology 30,542.
 3,304.
 intangible assets $157,811 $(54,373) $103,438


Deferred Compensation Plans
 employees deferrals limits accrue income. insurance contracts mutual funds liability.
 Life insurance premiums fees gains losses gains $1. 1 million 2019 $4. 8 million 2018 $5. 0 million $1. 3 million 2017. Changes obligation operating expenses cost losses $1. 5 million 2019 $5. 2 million 2018 $3. 9 million 2017. Liabilities contributions distributions gains losses investment allocation.
 deferred compensation liability
 liabilities $3,233 $844
 long-term liabilities 39,715 40,895
 deferred liability $42,948 $41,739


ESPP annual increases 1% outstanding shares common stock last day preceding year 1,250,000 shares other determined board directors. 2019 810,459 shares Class A common stock added ESPP. December 31, 2019 3,918,712 shares available.
 assumptions ESPP rights Black-Scholes-Merton option fair value
 December 31, 2019 2018 $2. 3 million $1. 5 million unrecognized share-based compensation expense related ESPP recognized periods. 4 years
 December
 Expected term years.
 volatility 47% 34%
 Risk-free interest rate 2.
 dividend yield 0%
 date fair value ESPP rights $33. $9.


Property equipment
 lease 5 years.
 Depreciation 2019 2018 2017 $2. 2 million $1. 8 million $1. 9 million.
 December
 Furniture equipment $1,785 $1,189
 Leasehold improvements 4,074 2,776
 System hardware
 Office computers 3,745
 software
,499
 Less depreciation amortization (7,931)
 $6,284 $4,650


Business
 Key Clients. work with leading communication service providers. key clients December 31, 2019
 10% or revenues 2019 2018
 Significant Client Relationships information.
 Research Development. clients competition deploying new services increasing complexity business operations. R&D advance businesses. value solutions value relationship.
 total R&D expenses 2019 2018 $128. 0 million $124. 0 million 13% 14% revenues. anticipate R&D investment consistent 2019.
 risks technological innovations. Risk Factors section.
 2019 2018
 % Revenues
 Comcast  $ 229  23% $221  25%
 Charter 195 20% 179


software costs
 Company capitalized $8. million. $6. 2 million 2019 2018 2017.
 Amortized expense $7. million $5. 9 million $5. million. Amortization cost revenue statements operations loss. 2019 retired $4. 6 million amortized.
 December 31, 2019
 Gross carrying amount Amortization period amortization Net amount
 Capitalized costs $ 49,909 3 years $ (35,622) $ 14,287
 December 31, 2018
 Amortization
 costs $ 45,677 3 years (32 12


Restructuring Expenses plans cost structure operations acquisition integration strategies. employee severance costs duplicate facilities contract termination costs. information Note 8 Consolidated Financial Statements report.
 Restructuring expenses 2019 2019 restructuring Plan. 2018 2017 restructuring Plan. approved initiated plans efficiencies. fourth quarter 2019 supplemented 2019 restructuring Plan additional actions. total estimated restructuring costs $584 million $108 million remained May 31, 2019 recorded statements 2020. costs subject to change. additional expenses new plans changes.
 Year Ended May 31,
 Percent Change
 millions 2018
 restructuring expenses $443 -25% -22% $588


.
 increase short reclassifications euro. dollar instruments € 3. 9 billion. offset €. billion repayment. dollar instruments.
 decrease income tax liabilities reversal tax carve-out Siemens Healthineers.
 Long-term debt euro instruments € 6. 5 billion currency translation bonds. offset reclassifications.
 increase provisions pensions obligations lower discount rate. offset positive return assets.
 increase equity € 5. 2 billion net income re-issuance treasury shares € 1. 6 billion €. 4 billion currency translation. billion offset negative defined benefit plans. billion. offset dividend payments € 3. billion repurchase 13,532,557 treasury shares cost share €. € 1. 4 billion charges.
 Shortpayables 11,409 6 %
 liabilities 1,743,485 17 %
 Contract liabilities 16,452,464
 3,682
 tax,378
 9,023
 50,723 47,874 6
 Long-term debt 30,414 12 %
 7,684 29 %
 Deferred tax liabilities 1,305 19 %
 3,714 4,216
 liabilities 44 %
 2,226 2,198
 non-current liabilities 48,541,995 13
,265,869
 equity 48,125,474
 Non-controlling interests 2,858 2,573 11 %
 liabilities 150,248 138,915 8 %


4-BALANCE
 Company recorded depreciation amortization. 2. 3 million. 4 million 2019 2018 2017. interest capitalized. 2019. 2 million $32,000 capitalized internal-use software.
 December 29, 2019 30
 Inventories
 Raw material
 Work-in-process
 Finished goods
 $3
 assets
 Prepaid expenses $1,296 $1,483
 Property equipment
 $10,694
 Software
 Furniture fixtures
 Leasehold improvements
 Accumulated depreciation amortization
 Capitalized internal-use software
 Accrued liabilities
 Employee compensation accruals


NAVIOS MARITIME HOLDINGS. FINANCIAL STATEMENTS.
 ACCRUED EXPENSES
 December 2019 2018
 Payroll $6,701 $15,264
 interest 35,926 40,903
 voyage expenses 3,643
 running costs 42,212
 losses
 Audit fees
 taxes 8 6,268
 fees
 expenses 12,215
 $51,180 $123,652


.
 Report Directors’ remuneration pages 77 101 note 38 financial statements page 161 disclosures emoluments share incentives interests pensions.
 average
 Manufacturing 40
 Product development 54
 Selling marketing 52
 Administration


carrying amounts financial instruments not approximate fair value short-term. estimated fair values not recorded
 fair values long-term debt June 30, 2019 2018 determined current interest rates Level 2 inputs fair value.
 carrying amount company-owned life insurance reflects cash surrender values market values securities 2 net outstanding policy loans. carrying value recorded in other assets balance sheets.
 goodwill impairment testing Company uses nonrecurring fair value measurements unobservable inputs (Level 3). Fair value based income market approach. discounted cash flow analysis. multiples earnings cash flow companies. assumptions similar market participants.
 June 30 2019 June 30 2018
 millions Carrying
 Long-term debt $550. $560. $545. $558.
Company-owned life insurance $17.


. Cash Equivalents
 table
 December 31,
 Cash $437 $268
 treasury bills 37
 funds 5,320
 equivalents $5,794 $4,225


investments
 Group invests surplus cash short-term investments liquidity credit risk returns. assets cash included net debt.
 €955 million €862 German €941 million Japanese securities €1,115 million UK bonds €1,184 million other assets collateral. Managed funds €5,513 million €3,087 million 90 days €892 million supply chain receivables Vodafone minority.
 Other investments excluded net debt restricted debt securities qualifying assets insurance.
 €1,184 million measured amortised cost remaining fair value. €3,011 million valuation level 1. remaining balance level 2.
 €1,097 million €487 million measured fair value 1. remaining items amortised cost carrying amount approximates fair value
 Short-term investments
Bonds 4,690
 3,891
 11,095
 1,917
 13,012 8,795


Comprehensive Income
 table amounts reclassified AOCI Consolidated Statements Operations net tax
 pension cost. Note 9 Employee.
 AOCI reclassified earnings 2019 2017 due restructuring loss impairments.
 expects reclassify $17. 0 million earnings next twelve months cost revenue.
 Amounts net tax immaterial years 2019 2017. 2018 reduction income tax expense derivative instruments $14. 8 million.
 Fiscal Year Ended August
 Comprehensive Income Components Financial Statement 2019
 Foreign currency translation adjustment Operating income
 Realized losses derivative instruments
 Foreign exchange contracts Cost revenue 21,982
 Interest rate contracts expense
 Actuarial loss
 Prior service credit
 sale securities
$54,289 $26,626


Adjusted EBITDA non-GAAP financial measure net (loss) income depreciation amortization disposals impairment long-lived assets acquisition gains share-based compensation restructuring interest income taxes foreign exchange income. includes rent build-to-suit facilities.
 provides consistency comparability past performance facilitates comparisons peer companies.
 GAAP measures assessment planning annual budget business strategies board directors incentive compensation metrics senior employees.
 reliance Adjusted EBITDA. substitute measures. limitations calculate reflect capital expenditures future requirements changes cash requirements working capital.
 reconciliation net (loss) income Adjusted EBITDA
 Acquisition-related expenses years March 31, 2019 March 31, 2017. See Note 5 consolidated financial statements Annual Report Form 10-K.Gain asset Solebit acquisition. Note 5.
 Amounts 2017 current. Litigation expenses loss contingencies. Note 12.
 Ended March 31,
 2019 2018 2017 2016 2015
 Reconciliation Adjusted EBITDA
 Net (loss income $(7,001) $(12,386),441
 Depreciation amortization disposals long-lived assets 29,960 19,141 11,881
 Rent expense build-suit facilities (4,482)
 Interest expense 3,425
 Provision income taxes 2,001 2,705 2,202
 Share-based compensation expense 25,954 11,734,294
 Impairments long-lived assets
 Restructuring
 Foreign exchange expense 1,647 3,511
Acquisition expenses
 Gain asset
 Litigation expenses 1,000
 EBITDA $54,008 $25,752 $12,457 $15,839 $14,227


Credit Risk Significant Customers
 Financial instruments risk cash equivalents marketable securities accounts receivable. cash equivalents securities invested in high-credit instruments subject minimum credit risk.
 accounts receivable unsecured represent due contractual obligations. mitigate credit risk credit evaluations invoicing terms. require collateral.
 Significant customers represent 10% or more total revenue. Revenues significant customers
 less than 10%
 December 31, 2019 two customers accounted 17% 12% accounts receivable.
 December 31, 2018 two customers 16% 12%
 Customer A 14%
 Customer B 12% 10%
 C 14%


 lower.
 year-end
 Purchased parts assemblies $134,298 $137,566
 Work-process 174,550
 Finished goods 133,682 162,935
 inventories $442,530 $486,741


Group operating profit £4. 5m 2018/19 £69. growth profit £5. offset impairment goodwill intangible assets £30. costs £41. 5m Pension.
 Amortisation intangibles £1. lower SAP software modules amortised. valuation foreign exchange derivatives £1. 3m.
 recognised £41. 5m costs equalisation GMP pension benefits 1990 1997. Lloyds Banking equal treatment State Earnings Pension Scheme.
 final cost equalisation Trustees. statement. companies pension schemes affected.
 £41. non-cash charge two-thirds
 RHM balance Premier Foods. Restructuring costs £16. 8m £8. 3m increase £14m consolidation logistics operations costs.
 restructuring costs. Advisory fees. non-trading items £1. past service pension credit £3.inflation Irish pension scheme offset departure CEO Gavin Darby.
 interest pensions administrative expenses £1. 3m. pension schemes £10. 3m offset net interest credit £9. surplus pension schemes.
 Adjusted EBITDA3 145. 139.
 Depreciation.
 Trading profit 128. 123
 Amortisation intangible assets.
 value movements foreign exchange derivatives.
 Net interest pensions administrative expenses.
 Non-trading items
 GMP equalisation.
 Restructuring costs.
 Impairment goodwill intangible assets (30.
.
 Operating profit 4. 69.


Recast 2019 presentation.
 Reclassified 2019.
 note Accounting Policies
 information.
 table presents revenue similar products reportable segments. solutions include IBM software products.
 Software-as-Service consulting education training product-related services. includes license charges subscriptions.
$ millions
 year December 31 2019 2018 2017
 Cloud Cognitive Software
 $18,712 $17,970** $17,681**
 4,321
 Business Services
 $16,363 $16,238** $15,728**
 Technology Services
 $20,768 $22 $21,913**
 5,183,484
 3,746 3,996 3,993
 1,920 2,114 2,243
 1,528
 Financing
 1,120 1,223
281 366 530


Income Taxes
 summary 2019 2018 2017
 Federal(8,001) $466
 State
 International 11,705
 (1,865) 6,774
 Deferred
 Federal 24,801 (14,448
 State,390 1,882
 4,167
 Deferred 30,070 (17,257) 14,073
 Income Tax Expense $28,205(14,029) $20,847


Operations
 2019
 Net sales $1,791. 8 million $1,562. 5 million 2018.
 product group revenues.
 Electronic Component sales $1,290. million $1,235. 2 million 2018.
 increased volume favorable pricing
 market conditions increased demand
 technological advances
. Components sales $113. 3 million Ethertronics $12. 7 million
 2018. offset loss Kyocera resale sales $19. 0 million $296. 3
 million.
 Interconnect Sensing Control Devices sales $501. 8 million 2019 $327. 3 million 2018.
 growth automotive S&C acquisition $354. 7 million
 $193. 3 million.
 sales independent electronic distributors. 3% net sales. 7%
 2018. sales activity increased favorable pricing
 increased order activity extended delivery lead times. increased
 demand improving market conditions. sales ship debit stock rotation programs
allowances. favorable pricing high demand charges decreased $28. 9
 million 3. 9% $30. 5 million 4. 6%
 2018. Applications $24. 4 million
 $29. 4 million.
 regional sales percentages decreased Asian European
 American increased.
 Asian American European represented 31. 4% 27. 1% 41. 5% sales.
 37. 2% 25. 6% 37. 2% Asian American European prior. dollar
 foreign currencies sales unfavorably impacted $33. 3 million
.
 Gross profit $482. 9 million $318. 9 million 2018.
 27. 0% 20. 4% 2018. increase
 better margin product mix improved efficiencies cost control favorable pricing.
 incurred costs $9. 2 million 2019 $4. 2 million 2018 due
 depreciation amortization adjustments S&C Ethertronics Kumatec acquisitions.
currency. million
 sales
 Ceramic Components $226,204 $421,849
 Tantalum,194
 Advanced 642,775,208
 Electronic Components 1,235,173
 Interconnect Devices 327,301
 Sales $1,562,474 $1,791,790


Includes construction costs
 March 31, 2019 2018. improvements $5. 2 million $4. 5 million. 2019 Company derecognized. completion construction. Note 12.
. $47,001 $43,925
.
 Accumulated depreciation
 $41,837 $74,412


 cash income $39. 3 million $89. 9 million non-cash offset assets liabilities $8. 2 million. Accounts receivable increased $2. 6 million $97. 9 million $95. 3 million strong collections.
 Inventories increased $5. 6 million $83. 3 million $77. 7 million volumes $10. 4 million excess. Accrued liabilities increased $8. 7 million $36. 4 million $27. 7 million compensation income taxes.
 Accounts payable increased $0. 9 million $40. 9 million.
 Investing Activities
 $20. 8 million property $20. 5 million FRT $25. 1 million marketable securities.
 Financing Activities
 $30. million principal payments term loan $8. million tax withholdings offset $23. 4 million loan $8. 1 million common stock.
Fiscal Year Ended
 28, 2019 29, 2018 30 2017
 $121,048 $68,700,323
 investing (66,352),425)
 financing $(6,578),329)


Net loss years.
 average 1-for-14 stock split December 23, 2019.
 Consolidated Financial Statements.
 Revenue $10,310 $12,629 $12,149
 Cost 6,295
 Gross profit 6,334 5,522
 Operating expenses
 Research development 12,350 9,948 9
 Selling administrative 8,918
 Loss operations (15,363 (13,596) (13,950
 Interest expense
 Loss before income taxes (15,524) (13,627) (14
 loss $(15,444(13,779(14,131
 loss per share
 diluted.
 Weighted average shares
 7,663 6,365


Stock-Based Compensation Expense
 statements
 April 26, 2019 unrecognized expense equity $285 million 2. years.
 April 26, 2019 27, 2018 28, 2017
 product revenues $
 hardware maintenance services
 Sales marketing 67
 Research development 48
 General administrative
 compensation expense $ 158 $ 161 195
 Income tax benefit $ 15


. Income taxes
 December 22, 2017 President signed Tax Cuts Jobs Act. Revenue Code reduced corporate tax rate 35% 21%. effective January 1, 2018. Company deferred tax assets corporate taxes. deferred tax assets future tax consequences tax basis. measured tax rates. net deferred tax asset determined federal tax rate 35%. reduction 35% 21% revalued deferred tax asset December 31, 2017 $9. 0 million transition tax $2. 3 million foreign $11. 3 million additional noncash income tax expense December 2017. December 31, 2018 TCJA $0. 1 million reduction net deferred tax asset. TCJA subjects. shareholder tax low-taxed income foreign subsidiaries. Q&A.Global Intangible Low-Taxed Company deferred taxes income tax expense. taxes period cost.
 components income before taxes
 Years Ended December 31,
 2019 2018 2017
 Domestic $72,773 $63,878 $52,250
 Foreign (20,099) (22,496,132
 Total income before taxes $52,674 $41,382 $31,118


 April 26, 2019 27, 2018 28,
 value $ 31 37 26
 Proceeds $ 25 $ 88 60
 options vested $ 2 $ 8


deferred tax assets liabilities
 March ASC 606.
 tax
 loss $78,986 $115,064
 Sales allowances inventory reserves 10,967
 Medical benefits 35,298 38
 Depreciation 5,318
 restructuring
 Anti-trust fines settlements
 Tax credits 3,394
 Stock-based compensation 5,589
 deferred tax assets 142,273 197
,658
 83,615
 Unremitted earnings subsidiaries,850
 Amortization intangibles debt discounts
 Non-amortized intangibles
 liabilities,397
 $48,218 $


Underlying profit margin
 before non-underlying items. segment profit loss allocating resources performance.
 Group reconciliation
 details non-underlying items note 3 page 96 consolidated financial statements.
 Note 2 page 94 reconciliation Division. margin profit divided.
 2019 2018 2017
 Operating profit 8,708 12,639
 Non-underlying items
 profit 1,239,176 543
 Underlying operating profit 9,947 9,463
 Turnover 51,980 50,982 53,715
 Operating margin 16. 8%.
 Underlying operating margin 19. 1%. 6%.


Revenue Similar Products
 financial information similar products markets. report revenue Infrastructure Platforms Applications Security Other Products. aligns categories business model. Prior amounts reclassified current.
 table revenue products
 recalculate.
 Infrastructure Platforms networking switching routing wireless data center. revenue increased 7% $1,869 million. Switching Catalyst 9000 data center. Routing modest growth SD-WAN service provider market. double digit revenue growth wireless. data center increased HyperFlex server products.
 Applications AppDynamics. Revenue increased 15% $767 million double digit growth unified communications TelePresence AppDynamics IoT.
 Security Revenue increased 16% $378 million sales identity access advanced threat security unified management web security. Duo acquisition revenue increase.
 decrease revenue SPVSS divested October 28,.
2019.
 July 27, 2019 28, 29, 2017 Dollars Percent
 revenue
 Infrastructure Platforms $30,191 $28,322 $27,817 $1,869 7%
 Applications 5
 Security.
 Products 1,168
. $39,005 $36,709 $35,705 $2,296


ASSETS
 patents domain name from GVR customer relationships technology trademark. patents acquired STI recorded carryover. fair value same exchange. acquired patents domain name. Intangibles recorded fair value. patents amortized 17 years 20 years regulatory. patents amortizing 1 to 11 years December 2019. domain name amortized 10 years. other intangibles amortized three five years.
 Intangible assets December 31, 2019
 foreign currency. impact 2018 $1,000 no impact
 2019.
 wrote-off $145,000 $96,000 patents. research development expense. no impairments other intangibles.
 Patents $1,801,000 $1,507,000
 Domain name 22,000
 Client Base
 Trademark
 Backlog
 Technology 77,000
 2
amortization (404,000
 Intangible 1,576,000


Recast segment changes.
 Global Technology Services revenue decreased. 2 percent 2018 Infrastructure Cloud Services up. 8 percent decline Technology Support Services.
 high solutions exited lower-value. Technology Support Services impacted hardware grew multivendor. cloud revenue $8. billion grew 22 percent 21 percent adjusted.
 year December 31.
 Global Technology Services revenue $29,146 $29,213.
 Infrastructure Cloud Services $22,185 $22,016. 8%.
 Technology Support Services 6,961.


Thomas Clark
 Represents accelerated vesting 33,711 stock options. option agreements January 17, if. employment terminated six months immediately vested all unvested stock options. options remain exercisable less than 90 days after termination. accelerated vesting 33,711 stock options. agreements employment terminated six months immediately vested all unvested stock options. remain exercisable less than 90 days after termination. employment terminated six months immediately vested stock options. remain exercisable less than 90 days after termination.
 accelerated vesting 8,340 unvested performance restricted stock units. if. employment terminated six months. death disability all non units accelerate vested as date termination.
Payment Termination Systemax Resignation$ Termination Death Disability$ Change Control Only$ Termination Systemax Resignation Change Control$
 Cash Compensation Non-Equity Incentive Compensation
 Accelerated Vesting Stock Option Awards 314,100 (1)
 Restricted Stock Unit Awards
 Performance Restricted Stock Unit Awards 209,800 (2)
 Medical Other Benefits
 Total 523,900


Cash Flows
 table summarizes cash flow
 Ended December 31,
 Operating $(426) $14,314
 Investing (5,142
 Financing 5,798 8,420
 cash $5,121 $(5,946) $17,592


 Capital Management Dividend Policy
 Net debt less cash bank balances hedging balances.
 debt gearing ratio debt capitalisation. debt shareholders’ funds non-controlling interests.
 Interest cover EBITDA pre-tax profits interest expense.
 31 March 2019 net debt S$9. billion.
.
 credit. rated A1 Moody’s A+ S&P Global Ratings. healthy capital structure.
.
 year March 2019 dividend payout 17. 5 cents per share 101% net profit 88% free cash flow.
 March 2019 dividend payout 17. 5 cents per share 101% net profit 88% free cash flow.
 dividends earnings optimal capital structure credit ratings. dividends 17. 5 cents per share next financial year 31 March 2020.

 Group
 Gross debt$ 10,396 10,402
 Net debt 9,877
 gearing ratio 24.
 debt EBITDA pre profits. 6.
 Interest cover 16. 2


. Operating profit
 Group identified items material nature amount. listed financial performance
 IFRS 16 depreciation property plant equipment restated year 31 March 2018.
 2018
 Staff costs (56. (54.
 Contractor costs.
 Depreciation property plant equipment.
 Amortisation intangible assets (4.
 Profit sale property plant equipment.


Income Tax
 federal
 2019 2018 pre-tax losses $19,573 $25,403 future income. full valuation allowances deferred tax assets 2019 2018 NOL carryforwards evidence operating losses uncertainty future taxable income deferred tax.
 December 31, 2018
 States federal statutory rate 21.
 State taxes federal benefit.
 Valuation allowance.
 accounting change.
 R&D Credit. 34%. 53%
.
 Effective income tax rate.


GasLog Ltd. Subsidiaries
 consolidated financial statements
 2017 2018 2019
 amounts. Dollars
. Revenues Contracts
 Revenues Cool Pool Limited vessels Net pool allocation ($4,264) 2019$17,818 2018 $7,254 2017) separate Profit Loss Statement.
 exit Cool Pool allocates revenues charters variable rate fixed rate charters. vessels LNG.
 2018 2019
 fixed rate charters 485,961 515,324,266
 variable rate 64,334
 Cool Pool Limited vessels 38,046 102,253 45,253
 vessel management services 1,222 767
 525,229 618,344 668,637


source cash revenue employee stock purchase plan. uses stock repurchase program payroll expenses operating expenses rent cost revenue. uses business acquisitions purchases property taxes share settlement equity.
 Cash Flows Operating Activities
 2019 $4. 42 billion income non-cash. net income deferred revenue offset outflows prepaid expenses. revenue Digital Media. prepaid expenses sales commissions advanced payments income taxes long-term contract assets.
 Investing Activities
 $455. 6 million purchases property equipment equity interest Allegorithmic. offset sales maturities short-term investments. Note 3 Financial Statements.
 Flows Financing Activities
 $2. 95 billion due treasury stock repurchases taxes settlement offset re-issuance stock employee purchase plan. Repurchase.
continue investing long expansion computer research sales marketing support staff. cash reserves repurchase companies products complementary business.
 operating $4,421. $4,029. $2,912.
 investing (455. (4,685. (442.
 financing (2,946. (5 (1,183.
 foreign currency exchange rates cash equivalents (12.
 cash equivalents $1,007. $(663. $1,294.


. Deferred income
 contracts.
 2019 2018 $ million 53. 55.
 Non-current 13. 14.
 66. 69.


. Operating Leases
 Company charters vessels from time-charter bareboat charter contracts provides use operates. contract fixed extend charter.
 pays daily hire rate fixed. not required pay hire rate-charters.
 bareboat contracts year 2019 incurred $99. 0 million time-charter bareboat hire expense $68. 2 million lease $30. 8 million non-lease component.
 lease approximate liabilities reduction in operating cash flows. Three Teekay Tankers' time-charter-in contracts option extend charter additional one-year term.
 lease not recognized right-of-use assets lease liabilities. December 31, 2019 lease term discount rate 2. 6 years 6. 1%.
2019 Teekay Tankers chartered LR2 Aframax 24 months LNG LNG carrier 21 months Parent FSO 12 months right-of-use assets lease liabilities $47. 7 million. 7 million.
 lease liabilities bareboat December 2019
 commitments $4. 3 million (2020. December 31, leases $116. 3 million $90. 4 million $53. 4 million $9. 1 million $9. 1 million (2023) $5. 6 million.
 Non-Lease Commitment
 Payments
 2020 69,617
 2021 54,195
 2022
 2023
 2024
 payments 161,730 72,226 233,956
 imputed interest,128
 operating lease liabilities 148,602
(61,431)
 long-term liabilities 87,171


Revenues by Geographic Region
 table consolidated revenues by region
 Europe Middle East Africa
 Americas
 decrease revenues Americas 2019 due to lower revenues Destiny franchise.
 EMEA
 decrease due
 lower revenues Destiny Call of Duty: Black Ops 4 October 2018.
 Asia Pacific
 decrease due to
 lower revenues Hearthstone NetEase. no transaction lower revenues Destiny.
 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.
 2018 Increase
 Net revenues by geographic region
 Americas $3,341 $3,880
 EMEA 2,239 2,618
 Asia Pacific 909 1,002
revenues $6,489 $7,500


Deferred income taxes reflect differences assets liabilities carryforwards. deferred tax assets
 increase deferred tax assets allowance 2019 2018 due tax carryforwards.
 Realization earnings history future income. $227. million California deferred tax assets. valuation allowance California deferred tax asset balance sales apportionment lower taxable income.
 federal net operating loss carryforwards $109. 8 million. expire 2020.
 state net operating loss $58. 5 million. expire 2020.
 state tax credit carryforwards $322. 4 million. carried forward indefinitely.
 Deferred tax assets
 Tax carry forwards $231,390 $206,073
 Allowances reserves 97,671,559
 Equity-based compensation 14,661
 Inventory valuation differences 18,516
Prepaid 74,139 65,644
 subsidiaries 16,260
 deferred tax 470,609 437,000
 Valuation (226,928)
 243,681 237,161
 Intangible
 Convertible debt (46,993)
,298
 Amortization goodwill (11,299),738
 subsidiaries
 deferred tax liabilities,225
 $83,456,573


Monte Carlo assumptions
 January 3 2020 $12 million unrecognized compensation cost. years. stock awards 2019 2018 2017 $9 million $13 million $4 million.
 January 3 2020 December
 volatility. 37%.
 Risk free return. 39%. 53%
 average stock price $62.


ACCOUNTING POLICY
 measure inventories merchandise resale lower cost net realizable value. reverse writedown net value increase.
 equipment resale $2,496 million inventory costs 2019 $2,515 million.
 Wireless devices accessories 380 399
 Other finished goods merchandise 80
 Total inventories 460 466


Issuer Purchases Equity Securities
 shares repurchased quarter June 30, 2019
 250,000 shares purchased repurchase plan. no shares surrendered tax stock awards.
 stock repurchase authorizations February 17, 2015 30. 0 million shares. no dollar price targets expiration dates.
 Total Number Shares Purchased Average Price Share Plans Maximum Number Shares Purchased Plans
 April 1 - 30, 2019 3,732,713
.
 June
.


. Convertible Notes
 December 2016, Company J. P. Morgan Securities Jefferies $90,000 5. 50% senior convertible notes due 2021 institutional buyers Securities Act 1933 non-U. S. persons Regulation. December 2016, Cambridge Equities. Dr. Patrick Soon-Shiong issue sell $10,000 exemption registration Act. 2016, issued additional $7,000. net proceeds $102,714 ($9,917 Cambridge $92,797 Initial Purchasers discount debt issuance costs $4,286.
 December 21, 2016, Company indenture U. S. Bank National Association. interest rates fixed 5. 50% per year payable annually June 15 December 15 June 15 2017.Convertible Notes mature December 15, 2021 unless repurchased or converted.
 December 15, 2016, Company entered Second Amended Restated Promissory Note May NantCapital maturity June 15, 2022 subordinate Note Convertible Notes.
 initial conversion rate 82. 3893 shares common stock per $1 principal approximately $12. 14 per share. September 15, 2021 Notes convertible March 31, 2017 20 trading days last reported sale price common stock greater than equal 120% conversion price five period trading price per $1 principal amount Convertible Notes less than 98% last reported sale price common stock conversion rate (3) corporate transactions Indenture agreement.
 Notes settled in cash, shares common stock option.
fundamental change holders require Company purchase Convertible Notes $1 or for cash equal 100% principal plus accrued unpaid interest excluding change purchase date. conversion rate events.
 one year after last date original issuance Notes if last sale price common stock 20 trading days 30 consecutive days conversion greater than or 120% conversion price interest make-whole payment to converting holder equal to present values scheduled payments interest Convertible Notes conversion date three years maturity date. values remaining interest payments computed using discount rate equal to 2. 0%. Company pay interest payment in cash or shares common stock.one year after last issuance Convertible Notes last sale price common stock 20 days 30 conversion greater 120% conversion price interest payment to converting holder equal present values scheduled payments Convertible Notes conversion three years maturity date. remaining interest payments computed discount rate equal 2. 0%. pay interest cash or shares common stock.
 accounts for convertible debt instruments settled cash conversion liability equity components separately. liability computed fair value similar liability conversion. interest derivative carrying value Convertible Notes. equity computed total debt proceeds less fair value liability. recorded as debt discount amortized as interest expense over term Convertible Notes.
 liability Notes issuance computed $83,079 interest derivative $1,499 carrying value Notes $81,580.equity issuance was $23,921. debt current liability liabilities equity redeemable security.
 Offering costs $4,286 Convertible Notes allocated liability equity deferred financing equity costs. $972 equity $3,314 deferred financing.
 debt discounts deferred financing amortized to interest expense 12. 82%.
 remaining life Convertible Notes 24 months.
 issuance Consolidated Balance Sheets
 Balance December 31, 2019
 Gross proceeds $10,000 $97,000 $107,000
 Unamortized debt discounts deferred financing costs
 Net carrying amount $8,864 $84,648 $93,512
 Balance December 31, 2018
 Gross proceeds $10,000 $97,000
deferred financing (17,567 (19,189
 $8,378,433


. Plant
 Land buildings improvements $289,051 $267,809
 Machinery 381,656 364,034
 Computer 136,227 130,645
 Capital assets 49,599 38,469
 856,533 800,957
 depreciation (472,309),651
,224 341,306


 exercisable one-fourth-third per year. after 2014 expire eight years. prior 2014 expire six years. activity 2019
 total intrinsic value $108 million $446 million $198 million options 2019 2018 2017.
 Weighted-Average Price Per Share Contractual Life Intrinsic Value
 Outstanding August 30, 2018 $23.
 Granted 44.
 Exercised.
 Canceled expired.
 Outstanding August 29, 2019.
 Exercisable $25. $143
 Unvested.


Acquisition Fagerdala
 October 2 2017 acquired Fagerdala Singapore Pte. manufacturer fabricator polyethylene foam Care division. acquired 100% Fagerdala shares S$144. 7 million $106. 2 million cash $13. 3 million purchase price adjustments finalized third quarter 2018. manufacturing footprint Asia foam presence.
 table summarizes consideration final allocation purchase price.
 Preliminary Allocation Final Allocation
 October 2 2017 Adjustments December 31, 2018
 consideration transferred $ 106.
 Assets
 Cash equivalents 13.
 Trade receivables.
 Inventories.
 Prepaid expenses assets.
 Property equipment.
 intangible assets.
 Goodwill.
 assets 158.
 Short-term borrowings.
 Accounts payable.6.
 liabilities 15. 1
 Long-term debt less 3.
 Non-current deferred taxes 11. 7.
 liabilities 51.


Global Financing internal external. revenue grew. percent financing. used equipment sales.
 External revenue declined. 3 percent equipment sales. financing.
 Global Financing pre-tax income gross profit decrease expense.
 year December 31 2018. Change
 External revenue $1,590 $1,696.
 Internal revenue 1,610.
 Total revenue $3,200 $3,168.
 Pre-tax income $1,361 $1,278.


financial position
 entity subsidiaries
 Altium Limited guarantees credit card office leases US$261,518 (2018 US$283,752).
 no 30 June 2019 2018.
.
 accounting policies Group financial statements.
 assets 121,041 73,202
 383,665 336,032
 liabilities 154,619 90,392
 92,364
 126,058 125,635
 Foreign currency reserve 2,607
 compensation reserve 19,561
 profits 79,918 102,680
 equity 228,144 243,668


capital management borrowings. manages liquidity short loans bank loans debt instruments varying maturities.
 shareholder value cost capital.
 returns capital objectives. May 2019 returned $1. 7 billion off-market share buy-back. 58. 7 million shares cancelled. complements dividends $1. 4 billion 2018 2019 $3. 1 billion excluding.
 solid credit ratings sale non-core assets capital initiatives adjusting growth expenditure property leasing. credit ratings BBB Baa2 Moody’s.
 2019 $500 million Medium Term Notes matured. refinanced April 2019 $400 million Term Notes Green Bond Framework. five-year tenor maturing April 2024.
 November 2019 $320 million undrawn syndicated bank loan. maturity.
 ratings issued providers.
OPENING NON‐CASH CASH CLOSING
 BALANCE
 $M
 unsecured
 Short-term loans 16
 Bank loans 88
 current borrowings 604 274
 Non‐current unsecured
 Bank loans 540 678
 Securities 1,668 110 2
 Unamortised borrowing costs
 Finance leases
 non‐current borrowings 2,199 157 499 2
 2,803 3


Employee Benefit Plans
 Pension
 defined benefit pension plan foreign countries.
 obligations funded status December 31, 2019 2018
 accumulated benefit obligation $43. million $37. 2 million. increase loss discount rate 2019.
 projected benefit obligation
 $37,245 $34,893
 Service cost 1,471
 Interest cost
 Actuarial loss
 5,091
 Benefit payments
 foreign currency exchange rate changes
 43,902 37,245
 plan assets
 24,159
 gain 4,392
 foreign currency exchange rate changes
 28,016
 Unfunded status period $(15,886)


Selling Administrative Expenses. increased $124. 2 million 2019.
 increased 70 points net sales. PCM North America EMEA August 30.
 variable compensation $90. 9 million personnel costs. facilities travel entertainment marketing expenses.
 Depreciation amortization increased $8. million acquired intangible assets.
 Personnel costs $684,837 $593,955 $90,882
 Depreciation amortization 46,209
 Facility expenses 30,945
 Travel entertainment 28,402
 Legal fees 16,839
 Marketing 11,597
 Other 61,908
 $880,737 $756,529 $124,208


Contract Balances
 collected services deferred revenue. deferred revenue services customer support contracts.
 term software licenses over. unbilled receivables. Accounts receivable. Long term unbilled receivables Other assets. opening closing balances receivable unbilled receivables deferred revenues
 increase accounts receivable subscription software transactions over. increase deferred revenue deferred customer support revenue 2019.
 revenue deferred $238,603 March 31, 2019. majority customer support arrangements. revenue performance obligations not material.
 Consolidated Financial Statements
 Accounts Receivable Unbilled Receivable Deferred Revenue
 Opening Balance March 31, 2018 $152,219 $9,900 $4,380 $241,113 $84,661
9,351 5,366 2,836 14,596
 March $161,570,266,439,257


movements foreign currency cashflow hedge reserve NSPT Group non-controlling.
 Taxation impact revaluation applies hedges NSNZPT sub-trust New Zealand tax legislation. tax other hedges Australian legislation.
 hedging reserve gains losses derivatives cash flow hedges. Amounts reclassified profit loss transaction.
 24 June 2019 Group reset interest rates swaps cash flow hedges. cash outflow $22. 9m reduced financial liability. fair value outflow remains reserve amortised profit loss.
 cash flow hedge non-controlling interest not classified reserves.
 NSPT Group
 Foreign currency translation reserve
 Net investment hedge
 Foreign exchange translation differences
 Cash flow hedge reserve
 Revaluation derivatives
 Taxation impact revaluation
30 June,881),073)
,123,188


first quarter 2019 Company determined revenue IT Services Hardware nonrecurring aligned Infrastructure Solutions Consulting. reclassed revenue $26. 6 million $12. 3 million Consulting Infrastructure Solutions months December 31, 2018 2017. reclassification Consolidated Statements Operations
 table presents revenues disaggregated contract type
 December
 millions
 services transferred $31. $25. $20.
 942. 805. 664.
 21. 22. 21.
 995. 853. 706.
 138. 142. 80.
 423. 404. 300.
 4. 3.
 Services 567. 550. 385.
 170. 168. 101.
 1,366. 1210. 964.
 $1,536. $1,378. $1,065.


Prices Common Stock
 2016 February 2017 common stock traded Nasdaq Capital Market “ACUR”. February 23, 2017 delisted Listing Rule 5550(b)(1) $2. 5 million equity listing market value $35 million net income operations. grace period February 10, 2017 regain compliance.
 February 23, 2017 stock quoted OTCQB June 4 2018 July 2, 2018 quoted Pink. late filing 2017 Annual Report Form 10-K. regained compliance July 3, 2018 quoted OTCQB. May 20 2019 2018 Report relegated OTC Pink tier. compliance 2020 23, quoted OTCQB.
 high low sales prices stock.
 March 27, 2020 closing sales price $0. 22.
 2019
 Quarter.
.
.
 Fourth..
 2020 Year
 First Quarter March 27,.


Income Tax Expense
 components
 2019 2018 2017
 millions
 Current income tax expense
.
 (28) 20
. 406 322
 447
 Deferred income tax expense
.
 (25) 499 (119)
 (30)
 Non. (185) (1,260)
 (218) (791) (142)
 Income tax expense (benefit (344) 180


. Loss per Share
 data loss per share effect earnings dilutive shares.
 earnings per share net income divided by shares. shares 300,437 334,817 490,355 restricted performance shares at March 31, 2019 2018 2017 not.
 Diluted earnings includes dilutive securities. stock options stock-settled appreciation rights restricted shares performance shares dilutive. denominator diluted earnings impact compensation.
 loss diluted earnings anti-dilutive.-average shares diluted net loss per share.
 Year ended March 31,
 2018
 Net loss $(13,164) $(8,350) $(11,721)
 Weighted average shares basic diluted 23,037 22,801 22,615
 Loss per share
loss share diluted. 37.
 Anti-dilutive options restricted 1,433 756


breakdown revenue shipment
 Asia Pacific China. million 11% Japan $1. 8 million 17% 2019. million. 6 million 12% 2018. 2017 $1. 3 million 11%. 5 million 12%.
 North America United States $4. 7 million 46% $6. 4 million 50% 2018 $4. 2 million 34%.
 Asia Pacific $3,049 $4,905
 Europe
 North America
 $10,310


AMERICAN TOWER CORPORATION SUBSIDIARIES FINANCIAL STATEMENTS amounts millions
. EARNINGS COMMON SHARE
 diluted income share years December 31,
 income Tower Corporation stockholders $1,887. $1,236. $1,238.
 Dividends preferred stock.
 $1,887. $1,227. $1,151.
 average common shares 442,319,606 428,181
 3,201 3,354
 445,520,960 431,688
 income $4. 27 $2.
 Diluted income $4.


. SELECTED FINANCIAL DATA
 data statements notes Discussion Analysis Financial Condition Results. not. historical results not indicative future results.
 2019 2018 2017 balance sheets statements. 2016 2015 not.
 2019 2018 2017 2016 2015
 Consolidated Statement Operations Data
 Net sales $ 245,862 $193,237 $152,359 $129,707 $113,505
 Cost goods sold 131,665 103,247 79,943 69,336 58,856
 Gross profit 114,197 89,990 72,416 60,371 54,649
 Selling administrative expenses 114,450 94,876 75,167 62,586 58,297
 Loss from operations (253) (4,886) (2,751),215) (3,648
 Other income (525)
Interest expense (991) (296) (910) (698) (455)
 Loss taxes (1,239) (5,284) (4,187 (3,095) (3,653
 Income tax expense 144 66
 Net loss $(1,383,361,262),161,711)
 loss share
.
.
 Average shares common stock
 35,950,117 35,329,170 34,487,239 33,674,416 33,497,940


ENERGY INDUSTRIES. FINANCIAL STATEMENTS
 sales product line
 Ended December 31,
 Semiconductor Equipment $403,018 $533,770 $554,063
 Industrial Medical 245,992
 Data Center Computing 91,438
 Telecom Networking 48,500
 $788,948 $718,892 $671,012


Remuneration management
 IAS 24
 No Director compensation loss office.
 gains $2,010,731 $852,742 options 2019.
 Report Directors’ remuneration pages 77 101.
 Short-term benefits 3,540. 3,842.
 Share-based payment 1,982.
 5,523. 4,506.


BELL WIRELESS
 Q1 2018 ABPU adjusted CRTC decision roaming rates $14 million.
 Q1 2019 adjusted wireless subscriber base 167,929 subscribers (72,231 postpaid 95,698 prepaid 65,798 (19,195 46,603 shutdown CDMA April 30 49,095 prepaid deactivation 90 43,670 postpaid subscribers 9,366 postpaid subscribers transferred retail high-speed Internet base.
 Q4 2018 adjusted postpaid wireless subscriber base remove subscribers Xplornet acquisition MTS 2017.
 Blended ABPU $68. 32 increased. 8% 2019 higher-value monthly rate increases adjustments
 offset Lower data voice overages Lower ABPU contract Shared customers Lucky Mobile
 wireless activations increased 8.2019 higher prepaid activations lower postpaid. Postpaid activations decreased 2. 9% fewer additions SSC. postpaid activations higher mobile network quality sales execution subscriber base management. Prepaid activations increased 61. 9% growth Lucky Mobile distribution
 wireless churn. 39% increased. pts. Postpaid churn. 13% improved. customer retention network speeds Prepaid churn 4. 44% increased. competitive intensity discount mobile prepaid deactivation policy
 activations grew 7. 4% higher prepaid lower postpaid. Postpaid activations decreased. 2% lower Prepaid activations increased 81,325 higher activations greater deactivations
 subscribers December 31, 2019 9,957,962 increase 3. 6%,482 2018. 9,159,940 postpaid 798,022 prepaid increase 3. 7% 2. 3%.2019 Bell Wireless postpaid stable 92%. Q1 2019 adjusted subscriber base 167,929 subscribers,231 postpaid 95,698 prepaid 65,798 subscribers (19,195 postpaid 46,603 shutdown CDMA April 30 49,095 prepaid subscribers deactivation policy 90 43,670 postpaid subscribers 9,366 postpaid subscribers transferred retail high-speed Internet
 Blended ABPU$/month).
 activations 2,117,517 1,954,792 162.
 Postpaid 1,568,729 1,615,764.
 Prepaid 548,788 339,028 209,760.
 activations 515,409 479,811 35,598.
 Postpaid 401,955 447,682.
 113,454 32 81.
 Blended churn %. 39%.
.
Prepaid. 44%.
 9,957,962,482,480.
 Postpaid 9,159,940 8,830,216 329,724.
 798,022,266 17,756.


Software License reproduction media packaging delivery documentation royalties third-party software. 2019 decreased $2. 7 million $1. 7 million third-party fees $1. 0 million decrease royalty costs. 2018 decreased $0. 2 million license revenue lower royalty costs. Royalty costs decreased $2. 1 million offset $1. 7 million increase third-party fees.
 Cost Cloud Subscriptions Maintenance Services 2019 salaries expenses maintenance hosting fees. $46. 8 million increase due $25. 8 million headcount $9. 4 million performance-based compensation $8. 5 million computer infrastructure costs. $46. 8 million increase due $25. 8 million headcount $9. 4 million performance-based compensation expense $8. 5 million increase computer infrastructure costs.
 salaries
 maintenance services hosting fees.
.8 million increase 2019 2018 due $25. million compensation
 headcount cloud operations $9. 4 million
 performance compensation $8. 5 million computer infrastructure costs cloud
.
 $27. 5 million increase due $11. 6 million performance
 compensation $8. million computer infrastructure cloud $7. million
 headcount.
 adopted new revenue recognition standard January 1, 2018.
 hardware revenue net costs reduces cost sales
.
. 2019 decreased $3. 5 million
 2018 increased $3. 7 million
 Ended December 31,
 Change.
 Cost software license $ 2,626 $ 5,297 -50% -3%
 cloud subscriptions maintenance services $282,341 $235,584 $208,045
 Cost hardware $32,205 N -100%
cost 284,967 240,881 245,733


. Property Equipment
 Depreciation amortization. million $1. million 2019 2018.
 Computers software furniture fixtures $1,406 $1,407
 capital lease 3
 depreciation amortization,448
 $1,583 $2,484


Research development expenses payroll contracted facility costs. growth product stability functionality. driver software upgrades development.
 expenses decreased $1. 1 million June 2019. due reduction contract labour consulting $6. 8 million facility expenses $4. 8 million offset increase payroll benefits $12. 6 million. driven headcount acquisitions. expenses stable 11%.
 labour resources increased 336 employees 3,331 2018 to 3,667 2019.
 Payroll benefits $12,629 $39,119
 Contract labour consulting (6,791)
 Share-based compensation
 Travel communication
 Facilities
 miscellaneous
 Total change expenses $41,694


Past due not impaired
 US$9,319,000 30 June 2019 (2018
 US$6,890,000.
 ageing receivables
 Accounting policy recognised fair value measured amortised cost interest less impairment. 30 to 90 day terms.
 AASB 9 Financial Instruments rules hedge accounting impairment model. applied standard 1 July 2018 simplified losses lifetime. receivables grouped region ageing. heightened credit risk historical default rates information. no expectation recovery balances written-off. doubtful debtors.
 Collectability reviewed. Debts uncollectable written carrying amount. provision impairment. financial difficulties bankruptcy default delinquency 60 days overdue indicators. impairment allowance difference carrying amount estimated future cash flows discounted original interest rate.Cash flows shortterm receivables discounted.
 receivables recognised amortised cost provision impairment.
 1 month overdue 5,139
 2 months
 2 2,756
 9 6


Income
 years 2018 29, 2017 differed federal tax rate
 Statutory. Federal tax $6,805 $5,847 $6,443
 Differences
 State local taxes federal benefit 2,078 1,906
 valuation allowance
 Tax Act
 Stock compensation (676)
 Income tax expense $8,210 $7,442 $4,042


Seasonality Backlog
 seasonal pattern. third fourth strongest first affected holidays second winter.
 end markets seasonality. sales automotive global production declines impact sales fourth. sales energy market increase third fourth activity.
 orders fluctuate market conditions. Backlog not indicative future sales unfilled orders cancelled. Backlog segment
 majority backlog 2019 filled 2020.
 millions
 Transportation Solutions 1,639 1,779
 Industrial Solutions 1,315
 Communications Solutions 361
 $ 3,315


. Income Taxes
 2019 2018
 Domestic $22,330 $(55,197)(7,228
 Foreign (48,204
 $(25,874) $(46,647) $2,596


.
 components
 Raw materials $8,921 $6,396
 Finished goods 25,247 16,594
 $34,168 $22,990


. Basic Diluted Net Loss Per Share
 computed shares common stock less unvested common stock repurchase forfeiture. Diluted shares common stock stock options restricted stock units ESPP convertible senior notes. common stock equivalents excluded loss.
 table basic diluted net loss share December 31, 2019 2018 2017
 Net loss $(53,607) $(26,203) $(4,204)
-average shares diluted net loss 83,130 79,500 76,281
 Basic diluted net loss per share.


. EQUITY INVESTMENTS
 fair value without value method.
 earnings investments reflected earnings unconsolidated.-to-market gains losses fair value reflected. carrying value equity investments long
 December 29, 2019 December 30, 2018
 investments with fair value
 Enphase Energy, Inc $173,908 $36,225
 without fair value
 Project entities 2,677
 investments without fair value 5,859
 investments with fair value option
 SunStrong Capital Holdings 8,831
 SunStrong Partners 9,500
 Solar Investco 3 Holdings
 fair value option 17,500 8,831
 investments
 Huansheng Corporation 26,533 32,784
 Project entities 2
26,658 34,828
 $226,602,694


non-operating results
 consolidated results
 Interest income increased $4. 2 million $10. 1 million $5. 9 million 2017 fixed deposits VIEs.
 Interest expense increased $42. 6 million $101. 9 million $59. 3 million 2017. due
 $22. 7 million interest expense Hilli sale leaseback
 $21. 7 million lower interest borrowing costs Hilli FLNG
 $7. million deferred financing costs
 $1. 4 million interest expense $402. 5 million convertible bond 2017.
 offset
 $5. 9 million interest expense Hilli disposal
 $5. million higher interest borrowing costs Golar Power.
 derivative instruments increased $51. 2 million $30. 5 million 2018 $20. 7 million 2017.
unrealized gains interest rate swap agreements December 31, 2018 swap portfolio $950 million hedges. unrealized gains decreased $0. 6 million $6. 6 million 2017 long-term swap rates decreased value. gains increased $8. 1 million 2018 loss $3. 8 million 2017. due higher LIBOR rates.
 Unrealized gains Total Return Swap 2014, three month facility Indexed Swap DNB Bank. extended June 2019. loss $30. 7 million 2018 $16. 6 million 2017. loss due fall share price.
 Unrealized mark-to-market losses Earn-Out Units IDR reset transaction 2016,. decrease Golar Partners' quarterly distribution $0. 4042 per unit 2018 Earn-Out Units mark-to-market loss $7. 4 million 2018 derivative $nil gain $0.million 2017.
 Net income non-controlling interests $19. 7 million $1. 5 million shareholders Hilli LLC Corp 2018 $43. 5 million $32. 9 million equity interests VIEs.
 non-operating expense
 Interest income 10,133 5 4,243 72%
 Interest expense (101,908),305 72%
 derivative instruments (30,541) 20,696
 Other financial items (1,481 2,046%
 Income taxes (1,267)
 income non-controlling interests (63,214) (34,424) 84%


Stock-Based Compensation
 Company accounts options employees cost services fair value. recognized expense.
 Options warrants consultants non-employees recorded at fair value grant date adjusted reporting period until expensed vesting period.
 Company measures cost services fair value. measured grant date recognized vesting period. Forfeitures unvested stock options recorded.
 incurred stock-based compensation charges $3. 5 million $1. 5 million years ended December 31, 2019 2018 included general administrative expenses. table summarizes charges
 Compensation benefits $3,247 $949
 Professional legal fees 242
 3,489 $1,494


Financial Data
 events earnings trends 2018 2019 Discussion Analysis Financial Condition Results.
 2017 severance pension benefit acquisition product realignment net gain sale debt redemption costs. 2016. 2015 severance.
 January 1 2019 adopted Accounting Standards Updates modified retrospective. January 1 2018 ASUs FASB. prospective full modified retrospective.
 figures full retrospective. Note 1 financial statements information.
 2016
 Operating revenues $131,868 $130,863 $ 126,034 125,980 131,620
 Operating income 30,378 22,278 27,425 29,249 30,615
 Net income Verizon 19,265 15,528 30,101 13,127 17,879
 common share 4. 66. 76.
common share. 37
 dividends. 335. 230
 income noncontrolling interests 523
 assets $ 291,727 264,829 257,143
 Debt 10,777 7,190 3,453
 Long-term debt 100,712 105,873 113,642 105,433
 Employee benefit obligations 17,952 18,599 22,112 26,166
 Noncontrolling interests
 Equity Verizon 61,395 53,145


 table category segment. Travel revenue includes publications Getaways vouchers hotel vacation packages. Local revenue Deals vouchers entertainment offers.
 Asia Pacific
 revenues decreased $1. 4 million 17% 2019. Travel Local revenues $206,000 foreign currency. $887,000 emails. $276,000 Deals vouchers.
 Europe
 revenues increased $749,000 2%. $1. 8 million foreign currency. Travel revenue $2. 9 million increased emails. Local $292,000 Local Deals vouchers.
 North America
 revenues increased $710,000 1%. Travel Local. $1. 7 million increased emails. Local $1. decreased Local Deals vouchers sold.
 customers accounted 10% more revenue.
 Asia Pacific
 $6,274 $7,351
 Local
 revenues 6,490 7,859
 Europe
32,081 30,856
 5,293
 Europe 36,898
 57,863 56,145
,169
 68,024 67,314
 96,218 94,352
,970
 $111,412,322


ITEM 7. MANAGEMENT DISCUSSION ANALYSIS FINANCIAL CONDITION RESULTS States Dollars share
 Adjusted EBITDA limitations GAAP measures. limitations
 contractual commitments future cash flows working capital expenditures universally consistent.
 compensates disclosure financial statements reconciliation net income.
 Includes equity compensation employees directors payments non-employees.
 losses fourth quarter 2019 financial guarantee Bank Partner loan 2019. Note 14 Consolidated Financial Statements.
 year December 31, 2019 loss remeasurement tax receivable agreement $9. 8 million professional fees strategic alternatives review process $1. 5 million. December 31, 2018 costs not deferrable proceeds. March 2018 loan upsizing. December 31, 2017 one-time fees affiliate board August 2017 loan transaction.
year December 2019 legal fees IPO $2. million tax fees. 2 million lien filing Bank Partner solar loans. 6 million.
 December
 Net income $95,973 $127,980,668
 Interest 23,860
 Tax,125
 Depreciation amortization 7,304
 Equity compensation 13,769
 financial guarantee 16,215
 Transaction 11,345
 Non-recurring 2,804
 Adjusted EBITDA $164,145 $170,023


Comparison Years 2019 2018
 tables consolidated statements operations percentage change revenue 2019 2018. amounts reclassified interest income.
 Cost Revenue
 Excludes amortization depreciation expenses.
 $37. 9 million increase cost revenue 2019 $32. 8 million 32%, increase cost hardware revenue $5. 1 million 11% increase cost SaaS license revenue. cost software license revenue decreased $0. 4 million $1. 3 million 2019 $1. 7 million 2018. increase cost. hardware hardware units shipped 2019. increase amounts paid wireless network providers.
 Cost hardware revenue 81% 78% 2019 2018. Cost SaaS license revenue 15%. software license revenue 3% 4%. increase cost hardware revenue mix product sales.
 Change
 2019. 2018.
 Cost
 Cost SaaS license revenue $50,066 $44,933 11%
133,533 100,782 32%
 $183,599 $145,715 26%
 37%


. Fixed assets
 Accounting policies
 Shares Group undertakings cost less provision impairment capital share-based payments. Contributions recognised note 7.
 Company assesses investments impairment. recoverable amount. less impaired written down recoverable. impairment loss recognised income statement.
 Shares Group undertakings
 2018
 Cost
 1 April 91,905
 Capital contributions share-based payments
 Contributions
 March 91,950
 Amounts
 April 8,177
 Impairment losses
 Net book value
 83,773


. Directors Officers Corporate Governance
 Board Directors
 name age position.
 biographical summaries.
 Darcy Antonellis Board since December 2018. Chief Executive Officer Vubiquity. Amdocs February 22, 2018 provider content services technical solutions 120 countries 80 languages. June 1998 December 2013,. positions Warner Bros. Entertainment. President Technical Operations Chief Technology Officer. Board Cinemark Holdings. since July 7 2015. B. S. electrical engineering Temple University. Fordham University. expertise executive management operations engineering understanding content services media entertainment industry.
 David. Habiger since December 2016. Chief Executive Officer Power. director March 2014 2016. Chicago Federal Reserve Board. Committee Governance HR Committee
. CEO Textura Corporation
. December 2016. Chief Executive Officer Power.SABOR Governance HR Committee Federal Reserve. CEO Textura Corporation. December 2016. Chief Executive Officer Power. director DTS March 2014 acquisition 2016. Chicago Federal Reserve Board. CEO Textura Corporation May 2015 sale Oracle June 2016. Chief Executive Officer NDS Group. video software content security. Sonic Solutions 1992 President Chief Executive Officer 2005 2011. director Echo Global Logistics. GrubHub. Stamps. Control4 Enova International. Immersion RealD. Textura DTS Sonic Solutions. National Association Corporate Directors Advisory Board University of Chicago Center Entrepreneurship. bachelor’s business administration St. Norbert College M. University of Chicago. experience digital media entertainment consumer electronics industry.
. August 2012 Chairman March 2013. Interim Chief Executive Officer April 15 2013 May 29, 2013.Hill Chief Executive Officer Novellus Systems. acquisition Lam Research 2012. 20 years marketer semiconductor. grew revenues $100 million to $1 billion. Chairman Marvell Technology Group. producer storage communications semiconductor products member board. Interim Chief Executive Officer 2016 July 2016. member Arrow Electronics. provider Cabot Microelectronics supplier. Symantec LSI Planar Systems Autodesk. Yahoo. B. S. Bioengineering Illinois M. B. Syracuse University. expertise management engineering.
 Jon E. Kirchner Chief Executive Officer since June 2017. president Xperi DTS 2016. Chairman Chief Executive Officer 2010 December 2016 member board 2002 December 2016. Chief Executive Officer. DTS 1993 to 2001 senior leadership roles President Chief Operating Officer Chief Financial Officer.Kirchner worked Price Waterhouse LLP. 2012,. received Ernst & Young Technology Entrepreneur Year Award Los Angeles. 2011,. honored Producers Guild America 25 Leaders Emerging award digital entertainment storytelling. serves board Free Media Corporation cross platform TV experiences. Certified Public Accountant B. A. Economics Claremont McKenna College. Board believes. brings experience senior management digital media entertainment industries knowledge Company Board.
. Molina served Board since February 2018. Board Directors DTS January 2008 2016, Chair Audit Committee Nominating Corporate Governance Committee. tax partner Deloitte & Touche 2004 partner Initiative Retention Advancement Women. twenty years Ernst & Young ten years partner. board experience Sucampo Pharmaceuticals. Royal Neighbors America. received B.Masters Accounting degree University Arizona. Board believes. Molina brings accounting financial expertise experience service.
 George A. Riedel served Board since May 2013. Cerner Corporation health care since May 2019. January 2018. Senior Lecturer Harvard Business School. Chairman Accedian Networks director since 2010. 2017. Chairman CEO Cloudmark. network security company. joined board June 2013, Chairman 2014 CEO December 2014. PeerApp 2011 2014 Blade Network Technologies 2009 IBM 2010. March 2006,. joined Nortel Networks Corporation Chief Strategy Officer. Nortel creditor protection. sale/restructuring carrier business units Ericsson Avaya Ciena. led stand-alone business units patents sales. 2010,.President Business Units 6,500 patents P&L business units sale. 2011 patent sale $4. 5 billion Apple Ericsson Microsoft EMC. Vice President Strategy Corporate Juniper Networks. networking 2003 2006. Director McKinsey Company 15 years technology Asia North America. B. S. Mechanical Engineering University Virginia M. Harvard Business School. Stanford Directors’ College certification. experience restructuring Nortel $4. 5 billion technology leadership Board.
 Christopher. Seams Board since March 2013. Chief Executive Officer director Deca Technologies. subsidiary Cypress Semiconductor 2016. Executive Vice President Sales Marketing Cypress Semiconductor 2005 2013. Vice President Worldwide Manufacturing Research. joined 1990 positions process technology research manufacturing. process development Engineer Manager Advanced Micro Devices Philips Research Laboratories.. Seams Chairman Onto Innovation. Nanometrics. senior IEEE NACD ACCD Engineering Advisory Council Texas A&M University Joint Venture Silicon Valley. B. S Electrical Engineering Texas A&M M. S Electrical Computer Engineering Texas Austin. Certificate Computer Security Stanford University. National Association Corporate Directors. management sales marketing engineering experience semiconductor.
 Darcy Antonellis
 David. Habiger
 Richard. Hill
 Jon. Kirchner
. Molina
 George. Riedel
 Christopher. Seams


 decreased $4. million to $142. million from $147. million prior. due $9. million reduction cashflow outflow exceptional items. improved use working capital offset overheads Sales Marketing expenses.
 Unlevered free cashflow decreased $15. million to $123. million from $139. million reduction exceptional items.
 IFRS 15 accounting policy research development expenditure tax credit scheme interest tax positions Financial Statements
 Unlevered free cash flow represented by marked cash generation capability
 Excludes non-cash movements exceptional items
 EBITDA2 167. 199.
 deferral revenue.
 expenses.
.
.
 Adjusted operating profit.
.
.
 Exceptional items.
.
.
 Change working capital.
 Corporation tax paid.
cash flow 142. 147.
 items.
 capital expenditure.
 cash flow 123. 139


2019 ADG revenues increased. 4%. improved selling prices 9% better product mix offset volumes 8%.
 AMS revenues grew. 6% growth Imaging. higher selling prices 12% offset lower volumes 7%.
 MDG revenues down. 3% Microcontrollers. lower volumes 10% selling prices flat.
 2018 product groups double-digit revenue increase. ADG revenues increased. 2% 2017. improved selling prices 21% volumes decreased 5%. flat.
 AMS revenues grew 19. increase Imaging. higher volumes 12% selling prices 8% improved product mix 13% selling prices decreased 5%.
 MDG revenues up. 1% Digital Microcontrollers Memories. higher selling prices 11% volumes flat. better product mix 13% selling prices effect negative 2%.
 2018
Automotive Group $3,606 $3,059.
 Analog MEMS Sensors 3,299 3,154 2,630.
 Microcontrollers Digital ICs 2,638 2,940.
 revenues $9,556 $9,664 $8,347.


activities 2019 2018 2017 focused expansion new products product footprint Supply Chain Inventory Optimization Omnichannel cloud-based point-of-sale tablet retailing. 2019 2018 2017 capitalize R&D costs costs technological feasibility insignificant. 2019 2017 expansion new products product footprint cloud-based point-of-sale tablet retailing. 2019 2018 2017 capitalize R&D costs costs feasibility insignificant. 2019 2018 2017 expansion product footprint Chain Omnichannel cloud-based point-of-sale tablet retailing. 2017 capitalize R&D costs feasibility.
 2019 2018 2017 expansion new products product footprint Supply Chain Inventory Optimization Omnichannel cloud-based solutions point-of-sale tablet retailing.
 2019 2018 2017 capitalize R&D costs costs
 feasibility insignificant.
2019 R&D expenses salaries personnel costs. increased $15. 7 million 22% 2018. due $10. 6 million compensation $3. million performance-based compensation $1. 7 million computer infrastructure costs headcount.
 increased $14. 2 million.
 $8. 9 million compensation headcount
 $4. million performance-based compensation $0. 7 million computer infrastructure.
 Marketing 2019 salaries commissions travel marketing alliance programs. increased $5. 6 million 11% $4. 9 million performance-based compensation $2. 5 million $1. 9 million marketing. salaries travel. increased $5. 6 million 11% $4. 9 million compensation $2. 5 million $1. 9 million marketing.
 increased $3. 8 million $2. 9 million marketing programs $1. 1 million performance-based compensation.compensation personnel expenses offset $2. million commissions services ASC 606. Sales marketing expenses increased $3. 8 million 2018 2017 $2. 9 million marketing campaign $1. 1 million performance-based compensation $0. 7 million personnel expenses offset $2. million commissions. Sales marketing expenses increased $3. 8 million 2018 $2. 9 million marketing $1. 1 million performance compensation. 7 million compensation expenses offset $2. million decrease commissions.
 Sales marketing expenses increased $3. 8 million 2018 $2. 9 million marketing $1. 1 million performance compensation $0. 7 million expenses offset $2. million decrease commissions expense.
 2019 salaries personnel costs executive financial human resources technology administrative facilities legal insurance accounting
administrative expenses salaries facilities legal insurance accounting. increased $12. million 23% 2019 $8. 9
 million compensation headcount $1. 9 million performance-based compensation $1. 1 million computer infrastructure costs.
 increased $6. 6 million $3. 6 million compensation $2. 4 million performance-based compensation.
 Depreciation Amortization $8. million. 6 million $9. 1 million 2019 2017. immaterial.
 $8. $8 6 million $9. 1 million. immaterial.
 Restructuring 2017 eliminated 100 positions. retail sector demand. restructuring charge $2. 9 million pretax ($1. 8 million after-tax. employee severance transition costs outplacement services. “Restructuring Consolidated Statements Income.
 2017 eliminated 100 positions due.. restructuring charge $2. 9 million pretax$1. 8 million after-tax. share. employee severance transition outplacement services. Consolidated Statements Income.
 2019 decreased $18. million $115. 9 million $133. million 2018. margins
 18. 8% 23.
 transition cloud growth
. investing R&D innovation cloud operations infrastructure
. innovation consulting hiring income margins. performance-based compensation expense increased. Americas decreased $18. 9 million flat EMEA APAC.
 2018 decreased $51. 7 million $133. 9 million $185. 6 million 2017. margins 23. 31. 2% 2017. investment cloud transition lower license revenue. Americas EMEA APAC
 $39. 1 million $9. 4 million $3. 2 million.
 December.

 Research development 87,608 71,896 57,704
 Sales marketing 56,860 47,482
 General 64,603 52,618 46,054 23%
 Depreciation amortization 7,987,613 -7%
 Restructuring charge,921
 Operating expenses 217,058 184,389 163,221


Warranties
 table summarizes accrued warranty activities 2019 2018
 extended warranties. distinct service transaction price. assurance-type specifications separate performance obligation. warranties recorded liabilities consolidated balance sheets Note. Balance.
 Fiscal Year Ended
 December 29, 2019 30, 2018 31, 2017
 Balance $172,266 $181,303 $161,209
 Accruals warranties 27,717 31,628 29,689
 Settlements adjustments (61,538) (40,665 (9,595)
 Balance end $138,445 $172,266 $181,303


PREPAYMENTS DEPOSITS ASSETS
 31 December 2019 loans investees shareholders repayable one five years year interest-bearing not 12. 0% per annum.
 royalty fees online games prepaid unamortised deferred.
 deposits assets prepayments refundable value-added tax approximated fair values. past due impaired.
 non-current assets
 Prepayments media contents 15,731
 Loans investees
 Prepayments capital investments
 royalty fees
 current assets
 royalty fees 10,888
 Prepayments prepaid expenses 8,353
 Interest receivables 2,774
 Lease deposits
 Dividend investment-related receivables
 Refundable value-added tax 629
investees 447
 2,608
 27,840 18
 51,282


Incentive
 May 17, 2019 stockholders approved 2019 Omnibus Equity Incentive Plan. 2011 Omnibus Equity Incentive Plan terminated shares extinguished. attracting retaining officers employees directors consultants performance incentives growth success encouraging ownership linking compensation interests.
 2019 Plan administered Compensation Human Capital Committee allows issuance stock options stock appreciation rights restricted share units performance awards. Stock option prices fixed not less fair market value. grant price SAR. expiration date after 10 years. 2019 Plan 2,600,000 shares grant. December 27, 2019 2,222,088 shares grant.
 Stock compensation expense $4,399 $4,094 $3,018 fiscal years December 27, 2019 28, 2018 29, 2017.tax benefit stock compensation $883 $864 $1,283 years 2018 2017.
 table activity RSAs
 fair value RSAs vested $3,742 $2,936 $1,703.
 awards time market performance-based grants employees directors five-years. performance vest three-year period service. RSAs profitability return invested capital targets.
 2019 awarded market-based average closing trade price common stock $39. 86 per share 20 consecutive trading days. fair value determined Monte Carlo simulation future stock prices. risk-free interest rate 2. 2% expected volatility 44. 6%.
 Grant
 December 29, 2017 329,761 $16. 69
 Granted 311,957.
 Vested.
.
 Unvested 28, 2018 526,730.
.
.
,193).
 December 27, 2019,609.


 Board Directors. no family relationships.
 March 13, 2020
 Brian. Faith joined QuickLogic 1996. President Chief Executive Officer 2016 Vice. engineering marketing sales. board member Global Semiconductor Alliance Chairman Marketing Committee CE-ATA. B S. Computer Engineering Santa Clara University Adjunct Lecturer Programmable Logic.
 Cheung. joined QuickLogic May 2007. Chief Financial Officer Vice President Finance Accounting Officer Principal Accounting Officer Corporate Controller 2007 2018. Manager Dell SonicWALL Senior Accounting Manager VeriFone System. accounting management. PricewaterhouseCoopers auditor tax consultant. Ph. D. Business Administration Masters Accounting Florida International University. Certified Public Accountant.
 Rajiv Jain joined QuickLogic August 1992. Vice President Worldwide Operations April 2014.Jain Senior Director Operations 2011 2014, Process Technology Process 1997 Process Technologist 1992 1997. Senior Yield Engineer National Semiconductor 1991 1992 BiCMOS Monolithic Memories 1985 1988 BiPolar yield wafer. Master’s Chemical Engineering University California Berkeley B. S. Chemical Engineering University Illinois Champaign/Urbana.
 Timothy Saxe. QuickLogic May 2001. Senior Vice President Engineering Chief Technology Officer August 2016 November 2008. Vice President FLASH Engineering Actel Corporation semiconductor November 2000 2001. GateField 1983 founder semiconductor division 1993. Chief Executive Officer 1999 acquired November 2000. B. North Carolina State University. Ph. D. Electrical Engineering Stanford University.
 Election Proxy Statement.
. President Chief Executive Officer
Cheung Financial Officer Vice President
 Jain
 Timothy Saxe Senior Vice President
. Farese Chairman
 Andrew. Pease
 Arturo Krueger
.
 Russell
 Gary. Tauss


. Property Plant Equipment
 leases September 28,
 $3. 8 $3. 4 million $3. million. additions $6. 7 million $11. 8 million $20. 5 million.
 accounts payable $10. million $11. 2 million $10. 8 million property non-cash transactions Consolidated Cash Flows.
 Buildings improvements $23,717
 Machinery equipment 12,293
 assets 11,831 7,747
 47,841 42,459
 accumulated amortization (8,762
 39,079 36


 table cash flow data.
 Activities
 $137. 6 million $183. 9 million 2018. income depreciation amortization stock-based compensation. $46. 3 million lower. capital expenditures lease payments stock repurchases.
 Investing
 paid $753. 9 million $0. 1 million Speedpay. $18. 5 million payment $7. million RevChip TranSend Integrated Technologies. $48. million software property equipment $43. 9 million 2018.
 Financing Activities
 $667. 2 million $57. 7 million 2018. $500. million Delayed Draw Term Loan $280. million Revolving Credit Facility Speedpay repurchases repaid $28. 9 million Loan $41. million Credit Facility. $16. 6 million stock options common stock 2017 Employee Stock Purchase Plan used $4.stock compensation tax. $35. million common stock. $400. million 2026 Notes. $300. million. 375% Senior Notes 2020 repaid $109. million Initial Term Loan. $22. million stock options common stock 2017 Employee Stock Purchase Plan $2. 6 million restricted tax withholdings. $54. 5 million common stock.
 cash
 $137,649 $183,932
 Investing -830,481
 Financing


non-employee director appointed after meeting restricted stock option grant appointment equal annual grant
 grants awards vest first anniversary grant or next meeting. No option granted exercisable after tenth anniversary. option exercisable after termination services ending three months after termination.
 table compensation non-employee directors 2019.
 amounts represent grant date fair value stock awards estimated forfeitures reflect financial benefit. Note 13 Consolidated Financial Statements Form 10-K. aggregate shares unvested stock awards non-employee director at December 31, 2019. Hill. Antonellis. Habiger. Molina. Riedel. Seams. None directors held stock options as December 31, 2019.
 Fees Stock Awards Option Awards Total
 Richard S.$106,000 $149
 Antonellis $55
. Habiger $70,000 $219
. Molina $81,000 $230
. Riedel $68 $218
. Seams $82,000 $231


Net Pension Expense
 includes benefit costs pension postretirement plans. determined annually recorded. summary years June 30 2019 2018
 September 2016, changes retirement plans. Benefits frozen December 31, 2016. 1,900 employees transitioned 401(k) plan. plan freeze 2017 eliminated accrual future services. voluntary pension contribution $100. million plan October 2016.
 cost future pension liabilities. pension earnings interest deferrals return assets interest costs benefit obligations amortization gains losses service costs.
 Years Ended June 30
 2019 2017
 Pension plans $9. $11. $45.
 Other postretirement plans.
 Net benefit costs $11. $14. $48.


 table
 working capital assets less liabilities. Fiscal 2019 lease-use assets liabilities Accounting Standards Codification Topic 842.
 balances cash working capital-based loan expenditures debt service liquidity requirements next 12 months.
 capital expenditures $16. 1 million 2019. 2020 $38. 0 million to $42. 0 million. increase expansions distribution facilities. projects facilities improvements efficiency growth customer base.
 December 27, 2019
 Cash equivalents $140,233 $42,410 $41,504
 Working capital $162,772 $160,783 $147,063
 Availability asset-based loan $133,359 $90,015 $64,805


lease
 Group commercial leases properties infrastructure vehicles equipment. leases terms escalation clauses purchase options renewal rights significant
 Future payments-cancellable
 payments €1,027 million (2018 €859 million.
 year 2,834 2,686
 two 1,654 1,633
 three 1,227 1,155
 four 950 903
 five 739 717
 five 2,600
 10,816 9,694


unaudited information acquisitions not future results. adjustments amortization expense intangible assets.
 acquisitions October 1, 2017
 year September 30, 2018 revenue $9. 1 million net loss $5. 3 million A2iA ICAR businesses consolidated statements.
 years September
 revenue $86,206 $78,130
 net income (loss $889 $(12,268)


.
 $773,068
 Buildings 12,574,893 12,206,908
 15,011 13,424
 Furniture 13,155,018,984
 Vehicles 3,687,901 3,229
 45,820,954 42,396,025
 (28,165,539 (26,627,541)
 17,655,415 15,768,484


Product Warranties
 liability
 accrue warranty costs. 90 days five years limited lifetime.
 2019 2018 29, 2017
 Balance fiscal year $359 $407 $414
 Provisions warranties 600 582 691
 Adjustments warranties
 Settlements (603) (592) (677)
 Acquisitions divestitures
 fiscal year $342 $359 $407


table. GAAP non-GAAP
 years 2018 2017 adjusted ASC 606.
. million costs relocation tantalum powder Carson City Nevada Matamoros Mexico start-up 2019.
 Years Ended March
 Operating income $200,849 $112,852 $34,968
 Non-GAAP adjustments
 loss write down disposal long-lived assets
 ERP transition costs
 Stock-based compensation
 Restructuring charges
 Legal expenses antitrust class actions
 expenses
 Plant start-up costs
 Adjusted operating income-GAAP $237,235 $142,105 $66,976


Refranchisings franchisee development table summarizes sold developed gains year
 2019 2018 2017 include proceeds $1. 3 million $1. 4 million $0. 2 million extension franchise lease agreements sale.
 Charges restaurant leases sublease rental income.
 2018 represent $9. 2 million costs franchise remodel incentives $8. 7 million reduction $2. 3 million maintenance repair expenses $3. 7 million non-capital charges. 2017 impairment $4. 6 million equipment write-offs $1. 4 million closed.
 Franchise acquisitions 2019 2018. 2017 acquired 50. 31 underperforming franchisee. 19 restaurants 2017 legal action 2013 judgment 2017. closed eight sold 42 franchisees.
 sold
 New opened
 Proceeds sale-operated restaurants
Cash $1,280 $26,486 $99,591
 Notes receivable
 assets property equipment,329)
 Lease charges (11,737
 Goodwill restaurants (10
 (24,791) (9,161
 Gains $1,366 $46,164 $38,034


. Trade payables
 owed suppliers contract liabilities. taxes social security. Derivative financial instruments negative market value.
 payables not interest-bearing nominal value.
 deferred income 31 March 2018
 measured fair value level 2 classification
 €823 million (2018 €nil) irrevocable share buyback programme January 2019.
 amounts approximate fair value.
 €1,716 million contract liabilities 1 April 2018 revenue.
 €288 million (2018 €271 million re-insurance third party annuity policy Vodafone UK Group Pension Scheme.
 fair values calculated future cash flows values market interest rates foreign currency rates 31 March.
 non-current liabilities
 Other payables
 Accruals
 Contract
 Derivative financial
6,541,185
 associates
 taxes 1,218 1,177
 1,410 1,346
 Accruals 6,120
 Contract 1,818 1,678


. Creditors
 Accounting policies
 Capital market bank borrowings
 Interest-bearing loans overdrafts measured fair value amortised cost interest rate hedged. difference transaction costs settlement recognised term
 owed subsidiaries unsecured fixed repayable demand.
 loans €31,157 million due five years 1 April 2019 payable. Interest. 375% to 7. 875%.
 bond debt issuances note 20 capital consolidated financial statements
 year
 Bank loans 4,835
 232,896 220
 financial instruments
 Taxation
 creditors
 Accruals deferred income
 one year
 Deferred tax
 loans 46,208 32
 financial instruments


. VOYAGE REVENUES
 spot
 charter 2019 2018 606. comparative information.
 amounts USD
 Spot charter 283,007 259,978 257,495
 Time charter 34,213 29,038,646
 Voyage 317,220,016,141


Hardware Business
 revenues from sales Oracle Engineered Systems server storage industry-specific hardware products. Each related software interdependent accounted for as combined performance obligation. revenues recognized at delivered ownership transferred. earns revenues from hardware support contracts recognized as revenues delivered term one year. hardware products sold through independent distributors value-added resellers direct sales force. Operating expenses include cost of hardware products materials labor warranty expenses inventory valuation labor infrastructure support sales marketing expenses personnel related variable compensation sales force.
 Excludes stock-based compensation expense allocations. amortization of intangible assets other GAAP-based expenses not allocated.
 hardware revenues decreased in fiscal 2019 due to lower hardware products hardware support revenues.decrease hardware revenues 2019 attributable cloud-based infrastructure technologies reduced sales volumes support contracts. decrease offset increases Oracle Engineered Systems Exadata.
 hardware expenses decreased 2019 lower products costs sales marketing expenses.
 margin increased 2019 lower expenses.
 May 31,
 Percent Change
 Revenues
 Americas $1,889 -6% -4% $2,003
 EMEA 1,082 -10% -5% 1,201
 Asia Pacific 733 -7% -4%
 Total revenues 3,704 -7% 3,994
 Expenses
 Hardware support 1,327 -14% -11%
 Sales marketing 520 -19%
 1,847 -16%
 Total Margin $1,857 $1,804
 Margin
 Revenues Geography
 Americas 51%
29% 30%
 Asia 20%


. December 31, 2019 cash equivalents short-term investments $182. 7 million $162. 9 million 2018. excess cash low-risk short-term investments market credit risks.
 refinanced 2015 Credit Agreement extended March 2023 interest rate fees. 2018 Credit Agreement increased liquidity capital resources $30 million.
 $200 million senior secured revolving loan expires March 2023. December 31, 2019 no borrowings outstanding. Agreement covenants financial covenants. compliance.
 cash equivalents-term investment balances regions
 access cash limitations foreign jurisdictions currency controls economic consequences. December 31, 2019 $2. 7 million cash restricted collateralize letters credit.
 Cash Flows. cash flows income non-cash. operating assets liabilities.
 primary source cash operating activities.business model recurring revenue cloud managed services payment software maintenance. reliable cash. software license fees professional services less predictable.
 primary cash operating activities. half operating costs labor compensation fringe benefits travel entertainment expenses. cash computing capacity communication lines paper envelopes supplies processing transaction fees hardware software rent facility costs. purchased under short-term long-term contractual commitments. summary contractual obligations.
 Americas. $125,309 $110,385
 Europe Middle East Africa 50,477 45,884
 Asia Pacific 6,871 6,611
 cash equivalents short-term investments $182,657 $162,880


table reconciles EBITDA Adjusted EBITDA to net (loss income.
 Foreign currency exchange loss includes unrealized loss $13. million 2019 (2018 gain $21. million 2017 $82. million 2016 $75. 2015 loss $89. million currency swaps.
 June 2016, Altera canceled contracts UMS newbuildings. accrued damages liabilities.
 net loss $23. 4 million 2016. contracts subsidiaries obligations non-recourse.
 write-down cost-accounted investment $19. million. sold 2017 gain sale $1. 3 million. recognized additional tax indemnification liability $50 million Teekay Nakilat finance leases. 18 Financial Statements Note 15 Other loss.
 equity (loss income non-GAAP alternative. comparable.
equity depreciation amortization interest income tax contracts finance lease payments vessels derivative instruments foreign currency contracts
 equity investments.
 Ended December 31,
 2016 2015
 Income Statement Data.
 Reconciliation EBITDA Adjusted EBITDA Net income
 income $(148,986 $(57,747),072) $86,664 $405,460
 Income tax expense 25,482
 Depreciation amortization 290,672 276,307 485,829
 Interest expense 271,255 245,601 262,110 278,145
 EBITDA 438,423 483,885 231,099
 Foreign exchange loss 13,574 (6,140 26,463 6,548
14,475 53,981 39,013
 vessels 170,310 53,693 270,743 112,246 70,175
 21,636 11,082 18,737
 (4,131 (10 (24
 losses 14,852 38,854 35,091 102,200
 1,532 2,047 (8,646
 deconsolidation 7,070 104,788
 equity 282,375 219,395 217,866 137,496
 EBITDA 951,913,633 951,118 1,287,003 1,415,794