| _id | d1b360e42 |
| title |  |
| text | CASH FLOW ANALYSIS
(1) Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections. (2) For further details on the Corporation's cash flow attributable to discontinued operations, please consult the "Discontinued operations" section.

OPERATING ACTIVITIES Fiscal 2019 fourth-quarter cash flow from operating activities increased by 19.3% compared to the same period of the prior year mainly from: • higher adjusted EBITDA; • the decreases in income taxes paid and financial expense paid; and • the increase in changes in non-cash operating activities primarily due to changes in working capital.

INVESTING ACTIVITIES Fiscal 2019 fourth-quarter investing activities decreased by 25.8% compared to the same period of the prior year mainly due to the acquisition of spectrum licenses in the Canadian broadband services segment in the comparable period of the prior year combined with a decrease in acquisitions of property, plant and equipment.

 |
| table | Three months ended August 31,                                                                  | 2019      | 2018 (1)  | Change
---------------------------------------------------------------------------------------------- | --------- | --------- | -------
(in thousands of dollars, except percentages)                                                  | $         | $         | %
Cash flow from operating activities                                                            | 304,702   | 255,438   | 19.3
Cash flow from investing activities                                                            | (144,332) | (194,474) | (25.8)
Cash flow from financing activities                                                            | (50,198)  | (52,127)  | (3.7)
Effect of exchange rate changes on cash and cash equivalents denominated in a foreign currency | (1,405)   | (63)      | —
Net change in cash and cash equivalents from continuing operations                             | 108,767   | 8,774     | —
Net change in cash and cash equivalent from discontinued operations(2)                         | —         | 13,133    | (100.0)
Cash and cash equivalents, beginning of the period                                             | 447,737   | 62,818    | —
Cash and cash equivalents, end of the period                                                   | 556,504   | 84,725    | — |


| _id | d1b359f5c |
| title |  |
| text | ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
MARKET FOR COMMON STOCK

The Company’s common stock trades on NYSE American under the trading symbol “DIT”. As of October 31, 2019 the closing price of our common stock on NYSE American was $73.00 and there were 565,942 common shares outstanding. As of that date, the Company had approximately 521 persons holding common shares beneficially of which approximately 121 are shareholders of record (including direct participants in the Depository Trust Company). The following table reflects the range of the high and low closing prices

the range of the high and low closing prices per share of the Company’s common stock reported by NYSE American for fiscal 2019 and 2018.

 |
| table | | Fiscal 2018 |        | Fiscal 2019 |
----------- | ----------- | ------ | ----------- | -------
            | High        | Low    | High        | Low
4th Quarter | $100.00     | $73.41 | $89.00      | $ 81.10
3rd Quarter | 100.00      | 88.27  | 98.35       | 81.30
2nd Quarter | 101.51      | 88.01  | 99.87       | 84.10
1st Quarter | 99.75       | 77.92  | 97.85       | 86.61 |


| _id | d1b316c52 |
| title |  |
| text | ITEM 6. SELECTED FINANCIAL DATA

The following selected financial data has been derived from our consolidated financial statements (in thousands, except per share data). This data should be read together with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, and the consolidated financial statements and related notes included elsewhere in this annual report. The financial information below is not necessarily indicative of the results of future operations. Future results could differ

of future operations. Future results could differ materially from historical results due to many factors, including those discussed in Item 1A, Risk Factors.

(1) The consolidated balance sheet and statement of operations for the year ended December 31, 2019, includes the acquisition of Speedpay as discussed in Note 3, Acquisition, to our Notes to Consolidated Financial Statements in Part IV, Item 15 of this Form 10-K.

(2) The consolidated balance sheet and statement of operations for the year ended December 31, 2019, reflects the application of Accounting Standards Update (“ASU”) 2016-02, Leases (codified as “ASC 842”) as discussed in Note 14, Leases, to our Notes to Consolidated Financial Statements.

(3) The consolidated balance sheet and statement of operations for the year ended December 31, 2018, reflects the adoption of ASU 2014-09, Revenue from Contracts with Customers (codified as “ASC 606”), as discussed in Note 2, Revenue, to our Notes to Consolidated Financial Statements, including a cumulative adjustment of $244.0 million to retained earnings.

(4) The consolidated statement of operations for the year ended December 31, 2017, reflects the Baldwin Hackett & Meeks, Inc. (“BHMI”) judgment. We recorded $46.7 million in general and administrative expense and $1.4 million in interest expense, as discussed in Note 15, Commitments and Contingencies, to our Notes to Consolidated Financial Statements.

(5) The consolidated balance sheet and statement of operations for the year ended December 31, 2016, reflects the sale of Community Financial Services assets and liabilities.

(6) During the year ended December 31, 2019, we borrowed $500.0 million in the form of a new senior secured term loan and drew $250.0 million on the available Revolving Credit Facility to fund the acquisition of Speedpay. During the year ended December 31, 2018, we issued $400.0 million in senior notes due August 15, 2026. We used the net proceeds of these senior notes to redeem our outstanding $300.0 million senior notes due 2020, which we originally entered in to during the year ended December 31, 2013.

in to during the year ended December 31, 2013. See Note 5, Debt, to our Notes to Consolidated Financial Statements for additional information.

 |
| table | |             |           | December 31, |           |
---------------------------- | ----------- | --------- | ------------ | --------- | ---------
                             | 2019 (1)(2) | 2018 (3)  | 2017         | 2016 (5)  | 2015
Balance Sheet Data:          |             |           |              |           |
Working capital              | $308,426    | $269,857  | $100,039     | $31,625   | $(2,360)
Total assets                 | 3,257,534   | 2,122,455 | 1,861,639    | 1,902,295 | 1,975,788
Current portion of debt (6)  | 34,148      | 20,767    | 17,786       | 90,323    | 89,710
Debt (long-term portion) (6) | 1,350,592   | 658,602   | 668,356      | 656,063   | 845,639
Stockholders’ equity         | 1,129,968   | 1,048,231 | 764,597      | 754,917   | 654,400 |


| _id | d1b31fd3e |
| title |  |
| text | ADJUSTED NET DEBT AND DEBT LEVERAGE RATIO
We use adjusted net debt and debt leverage ratio to conduct valuation-related analysis and make capital structure-related decisions. Adjusted net debt includes long-term debt, net debt derivative assets or liabilities, short-term borrowings, and cash and cash equivalents.

1 Includes current and long-term portion of long-term debt before deferred transaction costs and discounts. See “Reconciliation of adjusted net debt” in “Non-GAAP Measures and Related Performance Measures” for the calculation of this amount. 2 For purposes of calculating adjusted net debt and debt leverage ratio, we believe including debt derivatives valued without adjustment for credit risk is commonly used to evaluate debt leverage and for market valuation and transactional purposes.

3 See “Accounting Policies” for more information. 4 Adjusted net debt and adjusted EBITDA are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See “Non-GAAP Measures and Related Performance Measures” for information about these measures, including how we calculate themand the debt leverage ratio inwhich they are used.

As a result of our adoption of IFRS 16 effective January 1, 2019, we
have modified our definition of adjusted net debt such that it now includes the total of “current portion of lease liabilities” and “lease liabilities”. We believe adding total lease liabilities to adjusted net debt is appropriate as they reflect payments to which we are contractually committed and the related payments have been removed from our calculation of adjusted EBITDA due to the accounting change.

In addition, as at December 31, 2019, we held $1,831 million of

marketable securities in publicly traded companies (2018 – $1,051 million). Our adjusted net debt increased by $3,379 million from December 31, 2018 as a result of: • the inclusion of lease liabilities in the calculation, which had a balance of $1,725 million at year-end, as discussed above; and • a net increase in our outstanding long-term debt, in part due to the 600 MHz spectrum licences we acquired for $1,731 million this year; partially offset by • an increase in our net cash position.

See “Overview of Financial Position” for more information.

 |
| table | | As at December 31 | As at January 1 | As at December 31
-------------------------------------------------------------------------- | ----------------- | --------------- | -----------------
(In millions of dollars, except ratios)                                    | 2019              | 2019            | 2018
Long-term debt 1                                                           | 16,130            | 14,404          | 14,404
Net debt derivative assets valued without any adjustment for credit risk 2 | (1,414)           | (1,448)         | (1,448)
Short-term borrowings                                                      | 2,238             | 2,255           | 2,255
Lease liabilities 3                                                        | 1,725             | 1,545           | –
Cash and cash equivalents                                                  | (494)             | (405)           | (405)
Adjusted net debt 4                                                        | 18,185            | 16,351          | 14,806
Divided by: trailing 12-month adjusted EBITDA 4                            | 6,212             | 6,157           | 5,983
Debt leverage ratio 4                                                      | 2.9               | 2.7             | 2.5 |


| _id | d1a73a62c |
| title |  |
| text | 4. Earnings per Share
Reconciliations of the weighted average shares outstanding for basic and diluted Earnings per Share for the years ended April 30, 2019 and 2018, respectively, were as follows (in thousands):

** For the years ended April 30, 2019 and 2018, dilutive securities are excluded since the inclusion of such shares would be antidilutive due to the net loss for the period. The exercisable shares excluded for 2019 and 2018 are 1,216,000 and 1,259,500, respectively. The effect of dilutive securities for 2019 and 2018 would have been 242,874 and 127,536, respectively.

 |
| table | For the years ended April 30,                   |           |
----------------------------------------------- | --------- | ---------
                                                | 2019      | 2018
Basic EPS Shares outstanding (weighted average) | 8,916,250 | 8,841,166
Effect of Dilutive Securities                   | **        | **
Diluted EPS Shares outstanding                  | 9,159,124 | 8,841,166 |


| _id | d1b300d1c |
| title |  |
| text | Receivables (payables): The balances with Golar Partners and subsidiaries as of December 31, 2019 and 2018 consisted of the following:

(iii) Interest income on short-term loan, balances due(to)/from Golar Partners and its subsidiaries - Receivables and payables with Golar Partners and its subsidiaries comprise primarily of unpaid management fees and expenses for management, advisory and administrative services, dividends in respect of the Hilli Common Units and other related party arrangements including the Hilli Disposal. In addition, certain receivables and payables arise when we pay an invoice on behalf of a related party and vice

an invoice on behalf of a related party and vice versa. Receivables and payables are generally settled quarterly in arrears. Balances owing to or due from Golar Partners and its subsidiaries are unsecured, interest-free and intended to be settled in the ordinary course of business. In November 2019, we loaned $15.0 million to Golar Partners, with interest of LIBOR plus 5.0%. The loan was fully repaid, including interest of $0.1 million, in December 2019.

(vii) Methane Princess lease security deposit movements - This represents net advances from Golar Partners since its IPO, which correspond with the net release of funds from the security deposits held relating to a lease for the Methane Princess. This is in connection with the Methane Princess tax lease indemnity provided to Golar Partners under the Omnibus Agreement. Accordingly, these amounts will be settled as part of the eventual termination of the Methane Princess lease.

 |
| table | (in thousands of $)                                              | 2019    | 2018
---------------------------------------------------------------- | ------- | -------
Balances due (to)/from Golar Partners and its subsidiaries (iii) | (2,708) | 4,091
Methane Princess lease security deposit movements (vii)          | (2,253) | (2,835)
Total                                                            | (4,961) | 1,256 |


| _id | d1a72a0ce |
| title |  |
| text | With the highest-performance networks and unmatched new services and content, Bell is building a better communications experience at home, in the workplace and on the go.
And customers are responding: In 2019, Bell welcomed the industry’s highest number of new subscribers across the growth services of retail Internet, IPTV and wireless and diligently managed the decline in traditional home phone and other legacy services.

The speed and quality of Canada’s Best National Mobile Network drove unparalleled gains in both postpaid and prepaid wireless, Internet growth accelerated with the fastest consumer home Internet service available, while Fibe TV and Alt TV are winning customers over with leading product and programing innovations.
(1) Excludes wholesale subscribers.
(2) Excludes business telephone services.

 |
| table | BCE retail subscribers                                                 |       |       |
---------------------------------------------------------------------- | ----- | ----- | ------
(millions)                                                             | 2019  | 2018  | Change
Wireless                                                               | 9.96  | 9.61  | +3.6%
High-speed Internet(1)                                                 | 3.56  | 3.41  | +4.3%
Television(1)                                                          | 2.77  | 2.77  | +0.2%
Total growth services, subscribers: retail Internet, IPTV and wireless | 16.29 | 15.79 | +3.2%
Local residential telephone services(1)(2)                             | 2.70  | 2.96  | (8.9%)
Total(2)                                                               | 18.98 | 18.75 | +1.3% |


| _id | d1b356b04 |
| title |  |
| text | WebLife Balance, Inc.
On November 30, 2017 (the “WebLife Acquisition Date”), pursuant to the terms of a merger agreement, the Company acquired all shares of WebLife Balance, Inc. (“WebLife”), a browser isolation offerings vendor, to extend its advanced threat protection capabilities into personal email, while preserving the privacy of its users.

The Company has estimated fair values of acquired tangible assets, intangible assets and liabilities at the WebLife Acquisition Date. The results of operations and the fair values of the acquired assets and liabilities assumed have been included in the accompanying consolidated financial statements since the WebLife Acquisition Date.
At the WebLife Acquisition Date, the consideration transferred was $48,765, net of cash acquired of $278.

Per the terms of the merger agreement, unvested stock options held by WebLife employees were canceled and exchanged for the Company’s unvested awards. The fair value of $333 of these unvested options was attributed to pre-combination service and included in consideration transferred. The fair value of $1,468 was allocated to post-combination services. The unvested awards are subject to the recipient’s continued service with the Company, and $1,468 is recognized ratably as stock-based compensation expense

ratably as stock-based compensation expense over the required remaining service period. Also, as part of the merger agreement, 107 shares of the Company’s common stock were deferred for certain key employees with the total fair value of $9,652 (see Note 11 “Equity Award Plans”), which was not included in the purchase price. The deferred shares are subject to forfeiture if employment terminates prior to the lapse of the restrictions, and their fair value is expensed as stock-based compensation expense over

expensed as stock-based compensation expense over the remaining period.

Proofpoint, Inc. Notes to Consolidated Financial Statements (Continued) (dollars and share amounts in thousands, except per share amounts)
The following table summarizes the fair values of tangible assets acquired, liabilities assumed, intangible assets and goodwill:

 |
| table | |            | Estimated
--------------------------- | ---------- | -----------
                            |            | Useful Life
                            | Fair value | (in years)
Current assets              | $534       | N/A
Fixed assets                | 23         | N/A
Liabilities                 | (88)       | N/A
Deferred revenue            | (700)      | N/A
Customer relationships      | 600        | 5
Core/developed technology   | 16,600     | 5
Deferred tax liability, net | (4,440)    | N/A
Goodwill                    | 36,514     | Indefinite
                            | $49,043    | |


| _id | d1b2fe67a |
| title |  |
| text | Purchases of Equity Securities by the Issuer and Affiliated Purchasers
The following table contains information with respect to purchases made by or on behalf of CalAmp or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act), of our common stock during the following months of our fourth quarter ended February 28, 2019:
(1) Average price paid per share for shares purchased as part of our share repurchase program (includes brokerage commissions).

(2) On December 10, 2018, we announced that our Board of Directors authorized a new share repurchase program under which we may repurchase up to $20.0 million of our outstanding common stock over the next 12 months. As of February 28, 2019, $10.0 million of the $20.0 million had been utilized. Our share repurchase program does not obligate us to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans

open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.

 |
| table | | Total Number of Shares Purchased | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that may be Purchased Under the Plans or Programs (2)
------------------------------ | -------------------------------- | -------------------------------- | -------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------
December 1 - December 31, 2018 | 75,000                           | $12.96                           | 75,000                                                                           | $19,028,173
January 1 - January 31, 2019   | 524,577                          | $14.00                           | 524,577                                                                          | $11,685,543
February 1 - February 28, 2019 | 116,042                          | $14.53                           | 116,042                                                                          | $10,000,013
Total                          | 715,619                          | $13.97                           | 715,619                                                                          | $10,000,013 |


| _id | d1b34f78c |
| title |  |
| text | Disaggregation of revenue
The following table provides information about disaggregated revenue by primary geographical markets:
The Company derived over 90%, and approximately 88% and 84% of subscription revenues from RingCentral Office product for the years ended December 31, 2019, 2018 and 2017, respectively

 |
| table | |      | Year ended December 31, |
---------------------------- | ---- | ----------------------- | ----
                             | 2019 | 2018                    | 2017
Primary geographical markets |      |                         |
North America                | 93%  | 95%                     | 96%
Others                       | 7%   | 5%                      | 4%
Total revenues               | 100% | 100%                    | 100% |


| _id | d1b39a1ec |
| title |  |
| text | Recently Adopted Accounting Pronouncements

On April 1, 2018, the Company adopted ASU 2014-09-Revenue from Contracts with Customers (ASC 606) and all related amendments (“New Revenue Standard”) using the modified retrospective method. The Company has applied the new revenue standard to all contracts that were entered into after adoption and to all contracts that were open as of the initial date of adoption. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained

an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of the new standard impacts the Company's net sales on an ongoing basis depending on the relative amount of revenue sold through its distributors, the change in inventory held by its distributors, and the changes in price concessions granted to its distributors. Previously, the Company deferred

distributors. Previously, the Company deferred revenue and cost of sales on shipments to distributors until the distributor sold the product to their end customer. As required by the new revenue standard, the Company no longer defers revenue and cost of sales, but rather, estimates the effects of returns and allowances provided to distributors and records revenue at the time of sale to the distributor. Sales to non-distributor customers, under both the previous and new revenue standards, are generally

previous and new revenue standards, are generally recognized upon the Company’s shipment of the product. The cumulative effect of the changes made to the consolidated April 1, 2018 balance sheet for the adoption of the new revenue standard is summarized in the table of opening balance sheet adjustments below. In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the consolidated income statement and balance sheet for the period ended March 31, 2019 was as

sheet for the period ended March 31, 2019 was as follows (in millions):

The significant changes in the financial statements noted in the table above are primarily due to the transition from sellthrough revenue recognition to sell-in revenue recognition as required by the New Revenue Standard, which eliminated the balance of deferred income on shipments to distributors, significantly reduced accounts receivable, and significantly increased retained earnings. Prior to the acquisition of Microsemi, Microsemi already recognized revenue on a sell-in basis, so the impact of the

revenue on a sell-in basis, so the impact of the adoption of the New Revenue Standard was primarily driven by Microchip's historical business excluding Microsemi.

 |
| table | |             | For the year ended March 31, 2019                 |
------------------------------------- | ----------- | ------------------------------------------------- | ---------------------------------
Income Statement                      | As reported | Balances without adoption of New Revenue Standard | Effect of Change Higher / (Lower)
Net sales                             | $5,349.5    | $5,380.1                                          | $(30.6)
Cost of sales                         | $2,418.2    | $2,434.0                                          | $(15.8)
Gross profit                          | $2,931.3    | $2,946.1                                          | $(14.8)
Income before income taxes            | $204.5      | $219.3                                            | $(14.8)
Income tax (benefit) provision        | $(151.4)    | $(149.0)                                          | $(2.4)
Net income from continuing operations | $355.9      | $368.3                                            | $(12.4) |


| _id | d1b358d14 |
| title |  |
| text | A.4.2 Income
As a result of the development described for the segments, Income from continuing operations before income taxes declined 7 %. Severance charges for continuing operations were € 619 million, of which € 492 million were in Industrial Businesses. Accordingly, Adjusted EBITA margin Industrial Businesses excluding severance charges was 11.5 % in fiscal 2019. In fiscal 2018, severance charges for continuing operations were € 923 million, of which € 669 million were in Industrial Businesses.

The tax rate of 25% for fiscal 2019 was below the tax rate of 26% for the prior year, benefiting mainly from the reversal of income tax provisions outside Germany. As a result, Income from continuing operations declined 6%.
Income from discontinued operations, net of income taxes in the prior year included positive effects from the release of a provision related to former Communications activities.

The decline in basic earnings per share reflects the decrease of Net income attributable to Shareholders of Siemens AG, which was € 5,174 million in fiscal 2019 compared to € 5,807 million in fiscal 2018, partially offset by a lower number of weighted average shares outstanding. Basic earnings per share excluding severance charges was € 6.93.

As expected, ROCE at 11.1 % was below the target range set in our Siemens Financial Framework, reflecting in particular the effects from portfolio transactions in recent years, including the acquisitions of Mentor and Mendix at Digital Industries and the merger of Siemens’ wind power business with Gamesa Corporación Tecnológica, S. A. that created SGRE. The decline year-over-year was due both to lower income before interest after tax and to higher average capital employed.

 |
| table | |         | Fiscal year |
-------------------------------------------------------- | ------- | ----------- | --------
(in millions of €, earnings per share in €)              | 2019    | 2018        | % Change
Digital Industries                                       | 2,880   | 2,898       | (1) %
Smart Infrastructure                                     | 1,500   | 1,574       | (5) %
Gas and Power                                            | 679     | 722         | (6) %
Mobility                                                 | 983     | 958         | 3 %
Siemens Healthineers                                     | 2,461   | 2,221       | 11 %
Siemens Gamesa Renewable Energy                          | 482     | 483         | 0 %
Industrial Businesses                                    | 8,986   | 8,857       | 1 %
Adjusted EBITA margin Industrial Businesses              | 10.9 %  | 11.1 %      |
Financial Services                                       | 632     | 633         | 0 %
Portfolio Companies                                      | (71)    | (305)       | 77 %
Reconciliation to Consolidated Financial Statements      | (2,028) | (1,135)     | (79) %
Income from continuing operations before income taxes    | 7,518   | 8,050       | (7) %
Income tax expenses                                      | (1,872) | (2,054)     | 9 %
Income from continuing operations                        | 5,646   | 5,996       | (6) %
Income from discontinued operations, net of income taxes | 3       | 124         | (98) %
Net income                                               | 5,648   | 6,120       | (8) %
Basic earnings per share                                 | 6.41    | 7.12        | (10) %
ROCE                                                     | 11.1 %  | 12.6 %      | |


| _id | d1b389a04 |
| title |  |
| text | Provision for Income Taxes
The effective income tax rate is calculated by dividing the provision for income taxes by income before income taxes. The effective income tax rate for 2019 was 13.0% compared to 18.3% for 2018.

The decrease in the effective income tax rate and the provision for income taxes was primarily due to the recognition of approximately $2.2 billion of a non-recurring tax benefit in connection with the disposition of preferred stock, representing a minority interest in a foreign affiliate in 2019 compared to the non-recurring deferred tax benefit of approximately $2.1 billion as a result of an internal reorganization of legal entities within the historical Wireless business, which was offset by a goodwill

Wireless business, which was offset by a goodwill charge that is not deductible for tax purposes in 2018.

A reconciliation of the statutory federal income tax rate to the effective income tax rate for each period is included in Note 12 to the consolidated financial statements.

 |
| table | |        |         | (dollars in millions) Increase/ (Decrease) |
-------------------------- | ------ | ------- | ------------------------------------------ | -------
Years Ended December 31,   | 2019   | 2018    | 2019 vs. 2018                              |
Provision for income taxes | $2,945 | $ 3,584 | $ (639)                                    | (17.8)%
Effective income tax rate  | 13.0%  | 18.3%   |                                            | |


| _id | d1b3b2c2e |
| title |  |
| text | 16. Restructuring and other exit costs, net

During the fourth quarter of fiscal year 2018, the Board of Directors approved a world-wide restructuring plan (“Fiscal 2018 Plan”) to support the Company's strategic priorities of completing the subscription transition, digitizing the Company, and re-imagining manufacturing, construction, and production. Through the restructuring, Autodesk seeks to reduce its investments in areas not aligned with its strategic priorities, including in areas related to research and development and go-to-market activities.

and development and go-to-market activities. At the same time, Autodesk plans to further invest in strategic priority areas related to digital infrastructure, customer success, and construction. By re-balancing resources to better align with the Company’s strategic priorities, Autodesk is positioning itself to meet its long-term goals. This world-wide restructuring plan included a reduction in force of approximately 11% of the Company’s workforce, or 1,027 employees, and the consolidation of certain leased

and the consolidation of certain leased facilities. By January 31, 2019, the personnel and facilities related actions included in this restructuring plan were substantially complete.

During Fiscal 2019, restructuring charges under the Fiscal 2018 Plan included $39.2 million in employee termination benefits and $3.2 million in lease termination and other exit costs.
The following tables set forth the restructuring charges and other facility exit costs, net during the fiscal years ended January 31, 2019 and 2018:
(1) Adjustments primarily relate to the impact of foreign exchange rate changes, settlement of lease contracts, and certain write offs related to fixed assets.

(2) The current portions of the reserve are recorded in the Consolidated Balance Sheets under “Other accrued liabilities.” There was no non-current portion as of January 31, 2019.

 |
| table | | Balances, January 31, 2018 | Additions | Payments | Adjustments (1) | Balances, January 31, 2019
------------------------------------------ | -------------------------- | --------- | -------- | --------------- | --------------------------
Fiscal 2018 Plan                           |                            |           |          |                 |
Employee terminations costs                | $53.0                      | $39.2     | $(89.7)  | $(0.5)          | $2.0
Facility terminations and other exit costs | 2.5                        | 3.2       | (5.7)    | 0.1             | 0.1
Total                                      | $55.5                      | $42.4     | $(95.4)  | $(0.4)          | $2.1
Current portion (2)                        | $55.5                      |           |          |                 | $2.1
Total                                      | $55.5                      |           |          |                 | $2.1 |


| _id | d1b304854 |
| title |  |
| text | Expected Cash Flows
The Combined Pension Plan payments, post-retirement health care benefit payments and premiums, and life insurance premium payments are either distributed from plan assets or paid by us. The estimated benefit payments provided below are based on actuarial assumptions using the demographics of the employee and retiree populations and have been reduced by estimated participant contributions.

 |
| table | | Combined Pension Plan | Post-Retirement Benefit Plans | Medicare Part D Subsidy Receipts
---------------------------------- | --------------------- | ----------------------------- | --------------------------------
                                   |                       | (Dollars in millions)         |
Estimated future benefit payments: |                       |                               |
2020                               | $971                  | 242                           | (6)
2021                               | 921                   | 238                           | (6)
2022                               | 893                   | 232                           | (6)
2023                               | 868                   | 226                           | (5)
2024                               | 842                   | 219                           | (5)
2025-2029                          | 3,813                 | 986                           | (20) |


| _id | d1b36be46 |
| title |  |
| text | Unbilled receivables are client committed amounts for which revenue recognition precedes billing, and billing is solely subject to the passage of time.
Unbilled receivables are expected to be billed in the future as follows

 |
| table | (Dollars in thousands) | December 31, 2019 |
---------------------- | ----------------- | ----
1 year or less         | $180,219          | 60%
1-2 years              | 91,132            | 30%
2-5 years              | 30,604            | 10%
                       | $301,955          | 100% |


| _id | d1b350d80 |
| title |  |
| text | LONG-TERM DEBT
In addition to the Facility, the Company also had the following long-term obligations at fiscal 2019 and fiscal 2018.

 |
| table | | 2019        | 2018
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------- | ------------
Note payable to a bank (“Real Estate Loan”), interest payable at a fixed rate of 2.99% with monthly installments of principal and interest of $38,344 through August 2021 with remaining principal due September 2021, collateralized by three distribution facilities | $ 2,263,040 | $  2,648,179
Note payable, interest payable at a fixed rate of 4.50% with quarterly installments of principal and interest of $49,114 through June 2023 with remaining principal due September 2023                                                                                | 1,395,351   | 1,476,772
Note payable, interest-free with varying installments during fiscal 2019                                                                                | —           | 629,746
                                                                                | 3,658,391   | 4,754,697
Less current maturities                                                                                | (532,747)   | (1,096,306)
                                                                                | $3,125,644  | $3,658,391 |


| _id | d1a7331d8 |
| title |  |
| text | The fair value of the derivative feature of the 127,346 and 295,945 warrants issued to the placement agent of the Company’s 2016 private offering and to a holder of its debt for debt cancellation in connection with the Merger, respectively on the issuance dates and at the balance sheet date were calculated using a Black-Scholes option model valued with the following assumptions:

Risk-free interest rate: The Company uses the risk-free interest rate of a U.S. Treasury Note with a similar expected term on the date of measurement.
Dividend yield: The Company uses a 0% expected dividend yield as the Company has not paid dividends to date and does not anticipate declaring dividends in the near future.

Volatility: The Company calculates the expected volatility of the stock price based on the corresponding volatility of the Company’s peer group stock price for a period consistent with the warrants’ expected term.
Expected term: The Company’s expected term is based on the remaining contractual maturity of the warrants.
During the year ended December 31, 2019 and 2018, the Company marked the derivative feature of the warrants to fair value and recorded a loss of $343,857 and a gain

of $250,241 relating to the change in fair value, respectively.

 |
| table | | December 31, 2018 | December 31, 2019
----------------------- | ----------------- | -----------------
Exercise price          | 1.25              | 1.25
Risk-free interest rate | 2.46%             | 1.59%
Dividend yield          | 0.00%             | 0.00%
Expected volatility     | 152%              | 133%
Contractual term        | 2.15 years        | 1.15 years |


| _id | d1b38c074 |
| title |  |
| text | Cash Flows
The following table summarizes our cash flows for the years ended December 31, 2019, 2018 and 2017 (in thousands):
At December 31, 2019, $6.7 million of the $539.7 million of cash, cash equivalents and restricted cash was held by foreign subsidiaries. Our intention is to indefinitely reinvest foreign earnings in our foreign subsidiaries. If these earnings were used to fund domestic operations, they would be subject to additional income taxes upon repatriation.

 |
| table | |          | Year Ended December 31, |
----------------------------------------------------------------------- | -------- | ----------------------- | --------
                                                                        | 2019     | 2018                    | 2017
Cash, cash equivalents and restricted cash at beginning of period       | $60,068  | $103,051                | $60,765
Cash provided by operating activities                                   | 10,317   | 3,295                   | 4,863
Cash used in investing activities                                       | (24,574) | (48,413)                | (70,972)
Cash provided by financing activities                                   | 494,101  | 3,099                   | 108,475
Effects of exchange rates on cash, cash equivalents and restricted cash | (250)    | (964)                   | (80)
Cash, cash equivalents and restricted cash at end of period             | $539,662 | $60,068                 | $103,051 |


| _id | d1b364948 |
| title |  |
| text | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
We expect to make $493 of contributions to the U.S. plans and $261 of contributions to the non-U.S. plans during 2020.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

 |
| table | | U.S. Pension Plans | Non-U.S. Pension Plans | Post-Retirement Life Insurance Plan
--------- | ------------------ | ---------------------- | -----------------------------------
2020      | $15,514            | $46                    | $393
2021      | 15,399             | 54                     | 377
2022      | 15,218             | 82                     | 362
2023      | 14,983             | 69                     | 347
2024      | 14,706             | 84                     | 332
2025-2029 | 68,594             | 715                    | 1,468
Total     | $144,414           | $1,050                 | $3,279 |


| _id | d1b34dca2 |
| title |  |
| text | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within our consolidated balance sheets as of December 31, 2019 and 2018 to the total of such amounts as presented in the consolidated statements of cash flows (in thousands):
(1) See Note 7. “Restricted Cash and Investments” to our consolidated financial statements for discussion of our “Restricted cash” arrangements.

During the year ended December 31, 2019, we sold marketable securities for proceeds of $52.0 million and realized no gain or loss on such sales. During the years ended December 31, 2018 and 2017, we sold marketable securities for proceeds of $10.8 million and $118.3 million, respectively, and realized gains of less than $0.1 million on such sales in each respective period. See Note 11. “Fair Value Measurements” to our consolidated financial statements for information about the fair value of our marketable

about the fair value of our marketable securities.

 |
| table | | Balance Sheet Line Item                   | 2019        | 2018
------------------------------------------------- | ----------------------------------------- | ----------- | -----------
Cash and cash equivalents                         | Cash and cash equivalents                 | $ 1,352,741 | $ 1,403,562
Restricted cash – current (1)                     | Prepaid expenses and other current assets | 13,697      | 19,671
Restricted cash – noncurrent (1) .                | Restricted cash and investments           | 80,072      | 139,390
Total cash, cash equivalents, and restricted cash |                                           | $ 1,446,510 | $ 1,562,623 |


| _id | d1b3b9e5c |
| title |  |
| text | The following table summarizes the components of the intangible assets acquired and their estimated useful lives by VMware in conjunction with the acquisition (amounts in table in millions):

The excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The estimated fair value assigned to the tangible assets, identifiable intangible assets, and assumed liabilities were based on management's estimates and assumptions. The initial allocation of the purchase price was based on preliminary valuations and assumptions and is subject to change within the measurement period, including current and non-current income

period, including current and non-current income taxes payable and deferred taxes as additional information is received and tax returns are finalized. VMware expects to finalize the allocation of the purchase price within the measurement period. Management expects that goodwill and identifiable intangible assets will not be deductible for tax purposes.

 |
| table | | Weighted-Average Useful Lives (in years) | Fair Value Amount
----------------------------------------- | ---------------------------------------- | -----------------
Purchased technology                      | 4.2                                      | $232
Customer relationships and customer lists | 7.0                                      | 215
Trademarks and tradenames                 | 5.0                                      | 25
Other                                     | 2.0                                      | 20
Total definite-lived intangible assets    |                                          | $492 |


| _id | d1b379460 |
| title |  |
| text | GasLog Ltd. and its Subsidiaries
Notes to the consolidated financial statements (Continued)
For the years ended December 31, 2017, 2018 and 2019
(All amounts expressed in thousands of U.S. Dollars, except share and per share data)
21. Related Party Transactions
The Group had the following balances with related parties which have been included in the consolidated statements of financial position:
Current Assets
Dividends receivable and other amounts due from related parties

On June 28, 2019, GasLog transferred to Golar its 100 shares of the common capital stock of the Cool Pool Limited (Note 1). As of December 31, 2019, the receivable balance from the Cool Pool is nil.

 |
| table | | As of December 31, |
-------------------------------------------- | ------------------ | ----
                                             | 2018               | 2019
Dividends receivable from associate (Note 5) | 885                | 450
Due from The Cool Pool Limited               | 32,397             | —
Other receivables                            | 113                | 123
Total                                        | 33,395             | 573 |


| _id | d1b30d418 |
| title |  |
| text | 5. Goodwill and Purchased Intangible Assets
(b) Purchased Intangible Assets
The following tables present details of our purchased intangible assets (in millions):
Purchased intangible assets include intangible assets acquired through acquisitions as well as through direct purchases or licenses.

Impairment charges related to purchased intangible assets were approximately $47 million for fiscal 2017. Impairment charges were as a result of declines in estimated fair value resulting from the reduction or elimination of expected future cash flows associated with certain of our technology and IPR&D intangible assets.

 |
| table | July 27, 2019                                                | Gross  | Accumulated Amortization | Net
------------------------------------------------------------ | ------ | ------------------------ | ------
Purchased intangible assets with finite lives:               |        |                          |
Technology  .                                                | $3,270 | $(1,933)                 | $1,337
Customer relationships .                                     | 840    | (331)                    | 509
Other                                                        | 41     | (22)                     | 19
Total purchased intangible assets with finite lives          | 4,151  | (2,286)                  | 1,865
In-process research and development, with indefinite lives . | 336    | —                        | 336
Total .                                                      | $4,487 | $(2,286)                 | $2,201 |


| _id | d1b353846 |
| title |  |
| text | Restricted Stock and Restricted Stock Units ("Restricted Stock Awards")

As of August 29, 2019, there were 16 million shares of Restricted Stock Awards outstanding, 14 million of which contained only service conditions. For service-based Restricted Stock Awards, restrictions generally lapse in one-fourth or one-third increments during each year of employment after the grant date. Restrictions lapse on Restricted Stock granted in 2019 with performance or market conditions over a three-year period if conditions are met. At the end of the performance period, the number of actual

of the performance period, the number of actual shares to be awarded will vary between 0% and 200% of target amounts, depending upon the achievement level. Restricted Stock Awards activity for 2019 is summarized as follows:

 |
| table | | Number of Shares | Weighted-Average Grant Date Fair Value Per Share
--------------------------------- | ---------------- | ------------------------------------------------
Outstanding as of August 30, 2018 | 15               | $25.18
Granted                           | 9                | 41.11
Restrictions lapsed               | (6)              | 24.22
Canceled                          | (2)              | 24.79
Outstanding as of August 29, 2019 | 16               | 34.72 |


| _id | d1b374d48 |
| title |  |
| text | Property and Equipment

Property and equipment is recorded at cost and consists of furniture, computers, other office equipment, and leasehold improvements. We depreciate the cost of furniture, computers, and other office equipment on a straight-line basis over their estimated useful lives (five years for office equipment, seven years for furniture and fixtures). Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Depreciation and amortization expense for 2019, 2018, and 2017 was

amortization expense for 2019, 2018, and 2017 was approximately $8.0 million, $8.6 million, and $9.1 million, respectively, and was included in “Depreciation and amortization” in the Consolidated Statements of Income. Amortization expense on intangible assets in 2019, 2018 and 2017 was immaterial.

Property and equipment, at cost, consist of the following (in thousands):

 |
| table | | December 31 |
----------------------------- | ----------- | ---------
                              | 2019        | 2018
Office equipment              | $ 38,373    | $ 39,633
Furniture and fixtures        | 5,017       | 4,610
Leasehold improvement         | 23,534      | 19,430
Property and equipment, gross | 66,924      | 63,673
Less accumulated depreciation | (44,199 )   | (49,355 )
Property and equipment, net   | $ 22,725    | $ 14,318 |


| _id | d1b31c580 |
| title |  |
| text | Identifiable intangible assets
The Company's identifiable intangible assets represent intangible assets acquired in the Brink Acquisition, the Drive-Thru Acquisition, the Restaurant Magic Acquisition and software development costs. The Company capitalizes certain software development costs for software used in its Restaurant/Retail reporting segment. Software development costs incurred prior to establishing technological feasibility are charged to operations and included in research and development costs.

The technological feasibility of a software product is established when the Company has completed all planning, designing, coding, and testing activities that are necessary to establish that the software product meets its design specifications, including functionality, features, and technical performance requirements.

Software development costs incurred after establishing technological feasibility for software sold as a perpetual license, (as defined within ASC 985-20, Software – "Costs of Software to be sold, Leased, or Marketed" - for software cost related to sold as a perpetual license) are capitalized and amortized on a product-by-product basis when the software product is available for general release to customers.

Included in "Acquired and internally developed software costs" in the table below are approximately $2.5 million and $3.0 million of costs related to software products that have not satisfied the general release threshold as of December 31, 2019 and December 31, 2018, respectively. These software products are expected to satisfy the general release threshold within the next 12 months.

Software development is also capitalized in accordance with ASC 350-40, “Intangibles - Goodwill and Other - Internal - Use Software,” and is amortized over the expected benefit period, which generally ranges from three to seven years. Long-lived assets are tested for impairment when events or conditions indicate that the carrying value of an asset may not be fully recoverable from future cash flows. Software costs capitalized during the years ended 2019 and 2018 were $4.1 million and $3.9 million,

2019 and 2018 were $4.1 million and $3.9 million, respectively.

Annual amortization charged to cost of sales when a product is available for general release to customers is computed using the greater of (a) the straight-line method over the remaining estimated economic life of the product, generally three to seven years or (b) the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product. Amortization of capitalized software costs amounted to $3.3 million and $3.5 million, in 2019 and 2018,

$3.3 million and $3.5 million, in 2019 and 2018, respectively.

The components of identifiable intangible assets, excluding discontinued operations, are:

 |
| table | | December 31,   |          |
------------------------------------------------------------------------- | -------------- | -------- | ---------------------
                                                                          | (in thousands) |          |
                                                                          | 2019           | 2018     | Estimated Useful Life
Acquired and internally developed software costs                          | $36,137        | $18,972  | 3 - 7 years
Customer relationships                                                    | 4,860          | 160      | 7 years
Non-compete agreements                                                    | 30             | 30       | 1 year
                                                                          | 41,027         | 19,162   |
Less accumulated amortization                                             | (12,389)       | (11,708) |
                                                                          | $28,638        | $7,454   |
Internally developed software costs not meeting general release threshold | 2,500          | 3,005    |
Trademarks, trade names (non-amortizable)                                 | 1,810          | 400      | Indefinite
                                                                          | $32,948        | $10,859  | |


| _id | d1b390fa2 |
| title |  |
| text | Summary of Consolidated Cash Flows
The below table summarizes the cash provided or used in our activities and the amount of the respective changes between the periods (in millions):

Operating Activities Cash provided by operating activities was $110.5 million for the year ended December 31, 2019 as compared to cash provided by operating activities of $341.4 million for the year ended December 31, 2018. The $230.9 million decrease was the result of the recapture of reinsurance treaties by our Insurance segment in 2018 and was offset in part by improved performance of the Insurance segment subsequent to the KIC acquisition, significant reduction of losses at the Broadcasting segment

reduction of losses at the Broadcasting segment driven by the cost cutting measures, and an increase in the working capital at our Telecommunications segments.

Investing Activities Cash used in investing activities was $263.7 million for the year ended December 31, 2019 as compared to cash used in investing activities of $224.6 million for the year ended December 31, 2018. The $39.1 million increase in cash used was a result of (i) an increase in net cash spent at our Insurance segment driven by purchases of investments from the residual cash received from the KIC acquisition and reinsurance recaptures in 2018, (ii) a decrease in cash proceeds received at our

(ii) a decrease in cash proceeds received at our Life Sciences segment, from the 2018 upfront payment and 2019 escrow release related to the sale of BeneVir in the prior period, and (iii) an increase in cash used at our Energy segment to acquire ampCNG stations in 2019. These decreases were largely offset by a reduction in cash used by our Construction segment, driven by the acquisition of GrayWolf in 2018, and a reduction in cash used by our Broadcasting segment as less cash was used on its acquisitions

segment as less cash was used on its acquisitions in the current year compared to 2018.

This was largely offset by a reduction in net cash used by the Insurance segment's purchases of investments, as in the prior period the Insurance segment purchased investments from the cash received from the acquisition of KIC.

Financing Activities Cash provided by financing activities was $62.4 million for the year ended December 31, 2019 as compared to $115.2 million for the year ended December 31, 2018. The $52.8 million decrease was a result of a decrease in net borrowings by the Construction and Broadcasting segments, and offset in part by the increase in net borrowings by the Energy segment and Corporate segment, and a decline in cash paid to noncontrolling interest holders driven by the proceeds from our Life Sciences

driven by the proceeds from our Life Sciences segment's sale of BeneVir in 2018.

 |
| table | Years Ended December 31,                                     |         |         |
------------------------------------------------------------ | ------- | ------- | ---------------------
                                                             | 2019    | 2018    | Increase / (Decrease)
Operating activities                                         | $110.5  | $341.4  | $(230.9)
Investing activities                                         | (263.7) | (224.6) | (39.1)
Financing activities                                         | 62.4    | 115.2   | (52.8)
Effect of exchange rate changes on cash and cash equivalents | 1.0     | (0.5)   | 1.5
Net decrease in cash,cash equivalents and restricted cash    | $(89.8) | $231.5  | $(321.3) |


| _id | d1a719490 |
| title |  |
| text | Share-based Compensation Our Board of Directors may grant share-based awards from our shareholder approved Amended and Restated Consolidated Communications Holdings, Inc. 2005 Long-Term Incentive Plan (the “Plan”). The Plan permits the issuance of awards in the form of stock options, stock appreciation rights, stock grants, stock unit grants and other equity-based awards to eligible directors and employees at the discretion of the Compensation Committee of the Board of Directors.

On April 30, 2018, the shareholders approved an amendment to the Plan to increase by 2,000,000 the number of shares of our common stock authorized for issuance under the Plan and extend the term of the Plan through April 30, 2028.

With the amendment, approximately 4,650,000 shares of our common stock are authorized for issuance under the Plan, provided that no more than 300,000 shares may be granted in the form of stock options or stock appreciation rights to any eligible employee or director in any calendar year. Unless terminated sooner, the Plan will continue in effect until April 30, 2028.

We measure the fair value of RSAs based on the market price of the underlying common stock on the date of grant. We recognize the expense associated with RSAs on a straight-line basis over the requisite service period, which generally ranges from immediate vesting to a four year vesting period.

We implemented an ongoing performance-based incentive program under the Plan. The performance-based incentive program provides for annual grants of PSAs. PSAs are restricted stock that are issued, to the extent earned, at the end of each performance cycle.

Under the performance-based incentive program, each participant is given a target award expressed as a number of shares, with a payout opportunity ranging from 0% to 120% of the target, depending on performance relative to predetermined goals. An estimate of the number of PSAs that are expected to vest is made, and the fair value of the PSAs is expensed utilizing the fair value on the date of grant over the requisite service period.

The following table summarizes grants of RSAs and PSAs under the Plan during the years ended December 31, 2019, 2018 and 2017:

 |
| table | |         |                       | Year Ended December 31, |                       |         |
------------ | ------- | --------------------- | ----------------------- | --------------------- | ------- | ---------------------
             | 2019    | Grant Date Fair Value | 2018                    | Grant Date Fair Value | 2017    | Grant Date Fair Value
RSAs Granted | 551,214 | $ 9.87                | 478,210                 | $ 12.45               | 124,100 | $ 23.12
PSAs Granted | 371,672 | $ 12.45               | -                       | $ -                   | 36,982  | $ 23.27
Total        | 922,886 |                       | 478,210                 |                       | 161,082 | |


| _id | d1b398126 |
| title |  |
| text | MARKET PRICES OF COMMON STOCK
The common stock of the Company is listed on the NASDAQ Global Market under the symbol “FEIM.”

 |
| table | Fiscal Quarter | High Sale | Low Sale
-------------- | --------- | --------
2019           |           |
First Quarter  | $8.95     | $7.30
Second Quarter | 11.38     | 7.80
Third Quarter  | 13.38     | 9.60
Fourth Quarter | 13.52     | 10.80
2018           |           |
First Quarter  | $10.76    | $ 7.91
Second Quarter | 10.00     | 7.53
Third Quarter  | 9.94      | 8.66
Fourth Quarter | 10.59     | 8.55 |


| _id | d1b3947f6 |
| title |  |
| text | 12. Earnings per share How are earnings per share calculated?
Basic earnings per share is calculated by dividing the profit after tax attributable to equity shareholders by the weighted average number of shares in issue after deducting the own shares held by employee share ownership trusts and treasury shares.

In calculating the diluted earnings per share, share options outstanding and other potential shares have been taken into account where the impact of these is dilutive. Options over 36m shares (2017/18: 23m shares, 2016/17: 27m shares) were excluded from the calculation of the total diluted number of shares as the impact of these is antidilutive.

The earnings per share calculations are based on profit after tax attributable to equity shareholders of the parent company which excludes non-controlling interests. Profit after tax was £2,159m (2017/18: £2,032m, 2016/17: £1,908m) and profit after tax attributable to non-controlling interests was £3m (2017/18: £4m, 2016/17: £1m). Profit attributable to non-controlling interests is not presented separately in the financial statements as it is not material.

 |
| table | Year ended 31 March                                    | 2019  | 2018  | 2017
------------------------------------------------------ | ----- | ----- | -----
Basic weighted average number of shares (millions)     | 9,912 | 9,911 | 9,938
Dilutive shares from share options (millions)          | 6     | 2     | 27
Dilutive shares from executive share awards (millions) | 57    | 48    | 29
Diluted weighted average number of shares (millions)   | 9,975 | 9,961 | 9,994
Basic earnings per share                               | 21.8p | 20.5p | 19.2p
Diluted earnings per share                             | 21.6p | 20.4p | 19.1p |


| _id | d1b3710bc |
| title |  |
| text | Geographic Information
The amounts for revenue by region in the following tables are based on the location of customers. The regions in the following table are EMEA (Europe, Middle East, and Africa), Americas (North America and Latin America), and APJ (Asia Pacific Japan).
Total Revenue by Region

 |
| table | € millions       | 2019   | 2018   | 2017
---------------- | ------ | ------ | ------
Germany          | 3,948  | 3,658  | 3,352
Rest of EMEA     | 8,158  | 7,446  | 7,063
EMEA             | 12,105 | 11,104 | 10,415
United States    | 9,085  | 7,880  | 7,436
Rest of Americas | 2,109  | 1,832  | 1,911
Americas         | 11,194 | 9,713  | 9,347
Japan            | 1,180  | 963    | 885
Rest of APJ      | 3,074  | 2,928  | 2,814
APJ              | 4,254  | 3,891  | 3,699
SAP Group        | 27,553 | 24,708 | 23,461 |


| _id | d1b39d9dc |
| title |  |
| text | Cost of Revenues
Cost of Subscription Solutions

Cost of subscription solutions increased $10.7 million, or 39.9%, for the three months ended December 31, 2019 compared to the same period in 2018. The increase was due to an increase in the costs necessary to support a greater number of merchants using our platform, resulting in an increase in: infrastructure and hosting costs, employee-related costs, credit card fees for processing merchant billings, amortization of technology related to enhancing our platform, payments to third-party partners for the

payments to third-party partners for the registration of domain names, and payments to third-party theme developers. As a percentage of revenues, cost of subscription solutions decreased from 7.8% in the three months ended December 31, 2018 to 7.4% in the three months ended December 31, 2019 due to subscription solutions representing a smaller percentage of our total revenues.

Cost of Merchant Solutions

Cost of merchant solutions increased $72.5 million, or 55.2%, for the three months ended December 31, 2019 compared to the same period in 2018. The increase was primarily due to higher payment processing and interchange fees resulting from an increase in GMV facilitated through Shopify Payments. The increase was also due to an increase in amortization related to acquired intangibles from the acquisition of 6RS, employee-related costs associated with 6RS, product costs associated with expanding our product

costs associated with expanding our product offerings, credit card fees for processing merchant billings, infrastructure and hosting costs, materials and third-party manufacturing costs associated with 6RS and cost of POS hardware units. Cost of merchant solutions as a percentage of revenues increased from 38.2% in the three months ended December 31, 2018 to 40.4% in the three months ended December 31, 2019, mainly as a result of Shopify Payments representing a larger percentage of total revenue.

 |
| table | | Three months ended December 31,    |           | 2019 vs. 2018
------------------------------ | ---------------------------------- | --------- | -------------
                               | 2019                               | 2018      | % Change
                               | (in thousands, except percentages) |           |
Cost of revenues:              |                                    |           |
Cost of subscription solutions | $ 37,369                           | $ 26,706  | 39.9 %
Cost of merchant solutions     | 203,900                            | 131,413   | 55.2 %
Total cost of revenues         | $ 241,269                          | $ 158,119 | 52.6 %
Percentage of revenues:        |                                    |           |
Cost of subscription solutions | 7.4 %                              | 7.8 %     |
Cost of merchant solutions     | 40.4 %                             | 38.2 %    |
                               | 47.8 %                             | 46.0 %    | |


| _id | d1a7183ce |
| title |  |
| text | CAPITAL EXPENDITURES
BCE capital expenditures totaled $3,988  million for the year, up $17 million over 2018. This corresponded to a capital intensity ratio of 16.6%, down 0.3 pts compared to last year. Capital spending in the year reflected the following:

• Greater capital investments in our wireless segment of $33 million in 2019, compared to 2018, as we advanced the build-out of our LTE-A network, continued to deploy wireless small-cells to expand capacity to support subscriber growth and increase network speeds, coverage and signal quality, as well as to expand data fibre backhaul in preparation for 5G technology

• A modest reduction in capital spending in our wireline segment of $10 million in 2019, compared to last year, as we continued to focus our investments on the ongoing deployment of FTTP to more homes and businesses, the roll-out of fixed WTTP to rural locations in Ontario and Québec, the connection of fibre Internet and TV services to more homes and businesses and the execution of business customer contracts

• Lower capital expenditures at Bell Media of $6 million in 2019, compared to 2018, mainly due to production equipment and IT upgrades in 2018

 |
| table | | 2019  | 2018  | $ CHANGE | % CHANGE
----------------------- | ----- | ----- | -------- | ---------
Bell Wireless           | 697   | 664   | (33)     | (5.0%)
Capital intensity ratio | 7.6%  | 7.5%  |          | (0.1) pts
Bell Wireline           | 3,183 | 3,193 | 10       | 0.3%
Capital intensity ratio | 25.8% | 26.0% |          | 0.2 pts
Bell Media              | 108   | 114   | 6        | 5.3%
Capital intensity ratio | 3.4%  | 3.7%  |          | 0.3 pts
BCE                     | 3,988 | 3,971 | (17)     | (0.4%)
Capital intensity ratio | 16.6% | 16.9% |          | 0.3 pts |


| _id | d1b355fa6 |
| title |  |
| text | 45. Contingent liabilities
Contingent liabilities from guarantee and warranty contracts are primarily rent guarantees with terms of up to 10 years if utilisation is not considered entirely unlikely.

 |
| table | € million                                                                           | 30/9/2018 | 30/9/2019
----------------------------------------------------------------------------------- | --------- | ---------
Contingent liabilities from guarantee and warranty contracts                        | 18        | 17
Contingent liabilities from the provision of collateral for third-party liabilities | 9         | 12
Other contingent liabilities                                                        | 0         | 1
                                                                                | 27        | 30 |


| _id | d1a73bd10 |
| title |  |
| text | 17. OTHER NON-CURRENT ASSETS
(1) Following the adoption of ASC 842, the balance sheet presents right-of-use-assets which mainly comprise of our office leases. This standard has been adopted under a modified retrospective transition approach as of January 1, 2019.

(2) Investment in OLT-O refers to our investment in an Italian incorporated unlisted company which is involved in the construction, development, operation and maintenance of a FSRU terminal to be situated off the Livorno coast of Italy, representing a 2.7% interest in OLT-O’s issued share capital. In May 2019, a major shareholder sold its shareholding which triggered a re-assessment of the carrying value of our investment in OLT-O. This resulted in an impairment charge of $7.3 million for the write down of

charge of $7.3 million for the write down of the carrying value in our investment in OLT-O in the year ended December 31, 2019.

(3) "Other non-current assets" as of December 31, 2019 includes payments made for long lead items ordered in preparation for the conversion of the Viking into an FSRU. As of December 31, 2019 the aggregate carrying value of Viking long lead items was $16.2 million.

"Other non-current assets" as of December 31, 2018 was mainly comprised of payments made relating to long lead items ordered in preparation for the conversion of the Gimi into a FLNG vessel. Subsequent to the receipt of a Limited Notice to Proceed from BP in relation to the Greater Tortue Ahmeyim project in December 31, 2018, initial works of the FLNG conversion commenced in January 2019. Consequently, as of December 31, 2019, the aggregate carrying value of $31.0 million has been reclassified to "Asset

of $31.0 million has been reclassified to "Asset under development" (see note 15).

 |
| table | (in thousands of $)                                        | 2019   | 2018
---------------------------------------------------------- | ------ | -------
Oil derivative instrument (see note 24)                    | 45,640 | 84,730
Operating lease right-of-use-assets (1)                    | 9,847  | —
Foreign exchange swap (see note 24)                        | 214    | —
Mark-to-market interest rate swaps valuation (see note 24) | 8      | 6,298
Investment in OLT-O (2)                                    | —      | 7,347
Other non-current assets (3)                               | 24,700 | 40,729
                                                           | 80,409 | 139,104 |


| _id | d1b385b5c |
| title |  |
| text | The total remuneration of the Group’s auditors, PricewaterhouseCoopers LLP and other member firms of PricewaterhouseCoopers International Limited, for services provided to the Group during the year ended 31 March 2019 is analysed below
Notes: 1 Fees during the implementation phase of new accounting standards, notably preparations for IFRS 15 “Revenue from Contracts with Customers” in the year ended 31 March 2018 and preparations for IFRS 16 “Leases” in the year ended 31 March 2019.

2 Relates to fees for statutory and regulatory filings during the year. In addition, the amount for the year ended 31 March 2018 includes non-recurring fees that were incurred during the preparations for a potential IPO of Vodafone New Zealand and the merger of Vodafone India and Idea Cellular. The amount for the year ended 31 March 2017 primarily arose from work on regulatory filings prepared in anticipation of a potential IPO of Vodafone India that was under consideration prior to the agreement for the

consideration prior to the agreement for the merger of Vodafone India and Idea Cellular.

A description of the work performed by the Audit and Risk Committee in order to safeguard auditor independence when non-audit services are provided is set out in the Audit and Risk Committee report on pages 71 to 76.

 |
| table | | 2019 | 2018 | 2017
---------------------------------------- | ---- | ---- | ----
                                         | €m   | €m   | €m
Parent company                           | 2    | 2    | 2
Subsidiaries                             | 14   | 14   | 13
Subsidiaries – new accounting standards1 | 1    | 5    | 1
Audit fees:                              | 17   | 21   | 16
Audit-related fees2                      | 2    | 5    | 4
Non-audit fees:                          | 2    | 5    | 4
Total fees                               | 19   | 26   | 20 |


| _id | d1b3641f0 |
| title |  |
| text | Supported by a recovery in commodity-related markets, orders and revenue showed broad-based growth year-over-year with strongest increases in the mechanical drives business. Overall, Portfolio Companies businesses made good progress in achieving their targets. Adjusted EBITA improved in all fully consolidated units and turned positive in total, mainly driven by the large drives applications business.

The result from equity investments in total also improved slightly, though it was negative in both periods under review. Severance charges decreased to € 14 million, from € 86 million in fiscal 2018. Portfolio Companies’ order backlog was € 5 billion at the end of the fiscal year, of which € 3 billion are expected to be converted into revenue in fiscal 2020. Regarding Portfolio Companies’ at-equity investments, volatile results are expected in coming quarters.

Markets for Portfolio Companies are generally impacted by rising uncertainties regarding geopolitical and economic developments, which weaken investment sentiment. Although the broad range of businesses are operating in diverse markets, overall, moderate growth is expected in the coming years for the main markets served by the Portfolio Companies.

Beginning with fiscal 2020, the equity investments Ethos Energy Group Limited and Voith Hydro Holding GmbH & Co. KG, the subsea business, and the majority of the process solutions business will be transferred to the Operating Company Gas and Power. If this organizational structure had already existed in fiscal 2019, Portfolio Companies would have posted orders of € 4.746 billion, revenue of € 4.558 billion and Adjusted EBITA of €(115) million.

Mitsubishi-Hitachi Metals Machinery (MHMM) and Siemens AG reached an agreement in September 2019, that MHMM will acquire Siemens’ stake in Primetals Technologies. Closing of the transaction is subject to customary conditions and is expected by the beginning of calendar 2020.

 |
| table | |         | Fiscal year |        | % Change
--------------------- | ------- | ----------- | ------ | --------
(in millions of €)    | 2019    | 2018        | Actual | Comp.
Orders                | 5,806   | 5,569       | 4 %    | 3 %
Revenue               | 5,526   | 4,930       | 12 %   | 11 %
Adjusted EBITA        | (71)    | (305)       | 77 %   |
Adjusted EBITA margin | (1.3) % | (6.2) %     |        | |


| _id | d1b36398a |
| title |  |
| text | Restricted Stock Units

During the fiscal years 2019, 2018, and 2017, the Company issued both service-based RSUs and market-based performance RSUs (“PRSUs”). Market-based PRSUs generally vest three years from the grant date if certain performance criteria are achieved and require continued employment. Based upon the terms of such awards, the number of shares that can be earned over the performance periods is based on the Company’s Common Stock price performance compared to the market price performance of the Philadelphia

the market price performance of the Philadelphia Semiconductor Sector Index (“SOX”), ranging from 0% to 150% of target. The stock price performance or market price performance is measured using the closing price for the 50-trading days prior to the dates the performance period begins and ends. The target number of shares represented by the market-based PRSUs is increased by 2% of target for each 1% that Common Stock price performance exceeds the market price performance of the SOX index. The result of the

performance of the SOX index. The result of the vesting formula is rounded down to the nearest whole number. Total stockholder return is a measure of stock price appreciation in this performance period.

The following table summarizes restricted stock activity:
The fair value of the Company’s service-based RSUs was calculated based on fair market value of the Company’s stock at the date of grant, discounted for dividends.

 |
| table | | Service-based RSUs Outstanding |                                        | Market-based RSUs Outstanding |
--------------------- | ------------------------------ | -------------------------------------- | ----------------------------- | --------------------------------------
                      | Number of Shares               | Weighted-Average Grant Date Fair Value | Number of Shares              | Weighted-Average Grant Date Fair Value
June 26, 2016         | 3,256,513                      | $71.34                                 | 1,078,591                     | $63.12
Granted               | 1,224,877                      | $114.13                                | 435,694                       | $111.75
Vested                | (1,677,318)                    | $69.10                                 | (592,321)                     | $46.67
Forfeited or canceled | (116,466)                      | $76.76                                 | (59,509)                      | $66.81
June 25, 2017         | 2,687,606                      | $92.01                                 | 862,455                       | $83.83
Granted               | 964,391                        | $183.97                                | 285,866                       | $170.15
Vested                | (1,362,369)                    | $87.80                                 | (407,024)                     | $76.88
Forfeited or canceled | (96,540)                       | $108.67                                | (47,571)                      | $91.36
June 24, 2018         | 2,193,088                      | $134.34                                | 693,726                       | $104.59
Granted               | 893,622                        | $161.64                                | 163,529                       | $165.78
Vested                | (1,135,284)                    | $115.23                                | (301,622)                     | $70.58
Forfeited or canceled | (154,541)                      | $141.38                                | (120,859)                     | $104.73
June 30, 2019         | 1,796,885                      | $159.36                                | 434,774                       | $144.57 |


| _id | d1a7283d2 |
| title |  |
| text | Amortization of Purchased Intangible Assets
The following table presents the amortization of purchased intangible assets (in millions):
The decrease in amortization of purchased intangible assets was due largely to the purchased intangible assets related to the divestiture of SPVSS business on October 28, 2018, partially offset by amortization from our recent acquisitions.

 |
| table | Years Ended                                  | July 27, 2019 | July 28, 2018 | July 29, 2017
-------------------------------------------- | ------------- | ------------- | -------------
Amortization of purchased intangible assets: |               |               |
Cost of sales                                | $624          | $640          | $556
Operating expenses                           |               |               |
Amortization of purchased intangible assets  | 150           | 221           | 259
Restructuring and other charges              | —             | —             | 38
Total                                        | $774          | $861          | $853 |


| _id | d1a7413dc |
| title |  |
| text | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
NOTE 5 — Property, Plant and Equipment
Property, plant and equipment is comprised of the following:

 |
| table | | As of December 31, |
---------------------------------- | ------------------ | ---------
                                   | 2019               | 2018
Land and land improvements         | $1,095             | $1,136
Buildings and improvements         | 68,350             | 70,522
Machinery and equipment            | 224,312            | 231,619
Less: Accumulated depreciation     | (188,719)          | (203,876)
Property, plant and equipment, net | $105,038           | $99,401 |


| _id | d1b3a734c |
| title |  |
| text | Interest expense, net includes the stated interest rate on our outstanding debt, as well as the net impact of capitalized interest, interest income, the effects of terminated interest rate swaps and the amortization of capitalized senior debt issuance costs and credit facility fees, bond discounts, and terminated treasury locks.
Interest expense, net for the years ended December 31, was as follows:
(1) We repaid the notes upon maturity in July 2017.

(2) On August 1, 2019, Sealed Air Corporation, on behalf of itself and certain of its subsidiaries, and Sealed Air Corporation (US) entered into an amendment to its existing senior secured credit facility with Bank of America, N.A., as agent, and the other financial institutions party thereto. The amendment provided for a new incremental term facility in an aggregate principal amount of up to $475 million, to be used, in part, to finance the acquisition of Automated. See Note 14, "Debt and Credit

of Automated. See Note 14, "Debt and Credit Facilities," of the Notes to Consolidated Financial Statements for further details.

(3) On July 12, 2018, the Company and certain of its subsidiaries entered into a third amended and restated credit agreement with respect to its existing senior secured credit facility. See Note 14, “Debt and Credit Facilities,” of the Notes to Consolidated Financial Statements for further details.

(4) In November 2019, the Company issued $425 million of 4.00% Senior Notes due 2027 and used the proceeds to retire the existing $425 million of 6.50% Senior Notes due 2020. See Note 14, "Debt and Credit Facilities," of the Notes to Consolidated Financial Statements for further details.

 |
| table | |         | Year Ended December 31, |         | 2019 vs. 2018 | 2018 vs. 2017
------------------------------------------------- | ------- | ----------------------- | ------- | ------------- | -------------
(In millions)                                     | 2019    | 2018                    | 2017    | Change        | Change
Interest expense on our various debt instruments: |         |                         |         |               |
Term Loan A due July 2017(1)                      | $ —     | $ —                     | $ 3.6   | $ —           | $ (3.6)
Term Loan A due July 2022(2)                      | 6.8     | —                       | —       | 6.8           | —
Term Loan A due July 2023(3)                      | 8.5     | 8.9                     | 18.6    | (0.4)         | (9.7)
Revolving credit facility due July 2023(3)        | 1.4     | 1.9                     | 2.4     | (0.5)         | (0.5)
6.50% Senior Notes due December 2020(4)           | 25.4    | 28.1                    | 28.1    | (2.7)         | —
4.875% Senior Notes due December 2022             | 21.5    | 21.5                    | 21.5    | —             | —
5.25% Senior Notes due April 2023                 | 23.1    | 23.1                    | 23.0    | —             | 0.1
4.50% Senior Notes due September 2023             | 20.7    | 21.8                    | 21.0    | (1.1)         | 0.8
5.125% Senior Notes due December 2024             | 22.4    | 22.4                    | 22.3    | —             | 0.1
5.50% Senior Notes due September 2025             | 22.4    | 22.4                    | 22.3    | —             | 0.1
4.00% Senior Notes due December 2027(4)           | 1.7     | —                       | —       | 1.7           | —
6.875% Senior Notes due July 2033                 | 31.1    | 31.0                    | 31.0    | 0.1           | —
Other interest expense                            | 19.4    | 18.2                    | 18.3    | 1.2           | (0.1)
Less: capitalized interest                        | (8.4)   | (6.3)                   | (10.3)  | (2.1)         | 4.0
Less: interest income                             | (11.9)  | (15.1)                  | (17.6)  | 3.2           | 2.5
Total                                             | $ 184.1 | $ 177.9                 | $ 184.2 | $ 6.2         | $ (6.3) |


| _id | d1b395412 |
| title |  |
| text | Stock-Based Compensation Award Activity
The following table summarizes the shares available for grant under the 2019 Plan and 2009 Plan (in thousands):

 |
| table | | Shares Available for Grant |
---------------------------- | -------------------------- | ---------
                             | 2019 Plan                  | 2009 Plan
Balance at December 30, 2018 | —                          | 483
Authorized                   | 357                        | —
Options granted              | —                          | —
Options forfeited or expired | 26                         | 2
RSUs granted                 | (113)                      | (240)
RSUs forfeited               | 2                          | 54
Plan Shares expired          | —                          | (299)
Balance at December 29, 2019 | 272                        | — |


| _id | d1b38242a |
| title |  |
| text | The following is a reconciliation of the beginning and ending amounts of unrecognized income tax benefits (in thousands):
The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $ 1.5 million and $4.6 million for the fiscal years ended September 28, 2019 and September 29, 2018, respectively.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The total accrued penalties and net accrued interest with respect to income taxes was approximately $0.2 million for each of the fiscal years ended September 28, 2019, September 29, 2018 and September 30, 2017. The Company recognized less than $0.1 million of expense for accrued penalties and net accrued interest in the Consolidated Statements of Comprehensive Income for each of the fiscal

of Comprehensive Income for each of the fiscal years ended September 28, 2019, September 29, 2018 and September 30, 2017.

 |
| table | | 2019    | 2018   | 2017
----------------------------------------------------- | ------- | ------ | ------
Balance at beginning of fiscal year                   | $5,841  | $3,115 | $2,799
Gross increases for tax positions of prior years      | 62      | 21     | 184
Gross increases for tax positions of the current year | 39      | 2,893  | 163
Gross decreases for tax positions of prior years      | (3,672) | (188)  | (31)
Balance at end of fiscal year                         | 2,270   | 5,841  | 3,115 |


| _id | d1b3008f8 |
| title |  |
| text | Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Consolidated Balance Sheets to the amounts reported on the Consolidated Statements of Cash Flows (in thousands):
As of December 31, 2019 and 2018, restricted cash included a security deposit that is set aside in a bank account and cannot be withdrawn by the Company under the terms of a lease agreement. The restriction will end upon the expiration of the lease.

 |
| table | | December 31, |
------------------------------------------------------------------------------------------------------ | ------------ | --------
                                                                                | 2019         | 2018
Cash and cash equivalents                                                                              | $172,960     | $172,704
Restricted cash included in other long-term assets                                                     | 116          | 114
Total cash, cash equivalents and restricted cash reported on the Consolidated Statements of Cash Flows | $173,076     | $172,818 |


| _id | d1b33e4c8 |
| title |  |
| text | NOTE F – STOCKHOLDERS’ EQUITY (CONTINUED)
A summary of restricted stock units granted during the year ended December 31, 2019 is as follows (each restricted stock unit represents the contingent right to receive one share of the Company’s common stock):
Restricted stock unit compensation expense was $567,000 for the year ended December 31, 2019 and $687,000 for the year ended December 31, 2018.

The Company has an aggregate of $232,000 of unrecognized restricted stock unit compensation expense as of December 31, 2019 to be expensed over a weighted average period of 1.2 years.

 |
| table | | Number of Shares | Weighted-Average Grant Date Fair Value
------------------------------------------------------------------ | ---------------- | --------------------------------------
Balance of restricted stock units outstanding at December 31, 2018 | 505,000          | $2.17
Grants of restricted stock units                                   | 70,000           | 2.45
Vested restricted stock units                                      | (235,000)        | (2.29)
Balance of unvested restricted stock units at December 31, 2019    | 340,000          | 2.15 |


| _id | d1b36a2ee |
| title |  |
| text | Share Options
The fair value of equity-settled share options granted is measured as at the date of grant using a Black-Scholes model, taking into account the terms and conditions upon which the options were granted.
The following table illustrates the weighted average inputs into the Black-Scholes model in the year:
The weighted average fair value of options granted during the year was $ cents 220.53 (2018: $ cents 185.33).

The expected volatility reflects the assumption that the historical share price volatility is indicative of future trends, which may not necessarily be the actual outcome. An increase in the expected volatility will increase the estimated fair value.

The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected life used in the model has been adjusted, based on the Director’s best estimate, taking into account the effects of exercise restrictions, non-transferability and behavioural considerations. An increase in the expected life will increase the estimated fair value.

 |
| table | | Year-ended    | Year-ended
----------------------------------------- | ------------- | -------------
                                          | 31 March 2019 | 31 March 2018
Weighted average share price ($ cents)    | 676.10        | 628.23
Weighted average exercise price ($ cents) | 558.54        | 516.70
Expected volatility                       | 54.91%        | 38.20%
Expected life of options (years)          | 1.69          | 2.08
Risk free rate                            | 1.56%         | 1.49%
Dividend yield                            | 0.81%         | 0.70% |