| _id | d1b380b8e |
| title |  |
| text | AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in millions, unless otherwise disclosed)
14. STOCK-BASED COMPENSATION

Summary of Stock-Based Compensation Plans—The Company maintains equity incentive plans that provide for the grant of stock-based awards to its directors, officers and employees. The 2007 Equity Incentive Plan, as amended (the “2007 Plan”), provides for the grant of non-qualified and incentive stock options, as well as restricted stock units, restricted stock and other stock-based awards. Exercise prices for non-qualified and incentive stock options are not less than the fair value of the underlying common

less than the fair value of the underlying common stock on the date of grant. Equity awards typically vest ratably, generally over four years for RSUs and stock options and three years for PSUs. Stock options generally expire 10 years from the date of grant. As of December 31, 2019, the Company had the ability to grant stock-based awards with respect to an aggregate of 7.0 million shares of common stock under the 2007 Plan. In addition, the Company maintains an employee stock purchase plan (the “ESPP”)

an employee stock purchase plan (the “ESPP”) pursuant to which eligible employees may purchase shares of the Company’s common stock on the last day of each bi-annual offering period at a 15% discount from the lower of the closing market value on the first or last day of such offering period. The offering periods run from June 1 through November 30 and from December 1 through May 31 of each year.

During the years ended December 31, 2019, 2018 and 2017, the Company recorded and capitalized the following stock-based compensation expenses:

 |
| table | | 2019   | 2018   | 2017
---------------------------------------------------------------------- | ------ | ------ | ------
Stock-based compensation expense - Property                            | $1.8   | $2.4   | $2.1
Stock-based compensation expense - Services                            | 1.0    | 0.9    | 0.8
Stock-based compensation expense - SG&A                                | 108.6  | 134.2  | 105.6
Total stock-based compensation expense                                 | $111.4 | $137.5 | $108.5
Stock-based compensation expense capitalized as property and equipment | $1.6   | $2.0   | $1.6 |


| _id | d1b2fd234 |
| title |  |
| text | Note 6 Segments
The Company’s segment reporting structure consists of two reportable segments and a Corporate category as follows: • Food Care; and • Product Care.

The Company’s Food Care and Product Care segments are considered reportable segments under FASB ASC Topic 280. Our reportable segments are aligned with similar groups of products. Corporate includes certain costs that are not allocated to or monitored by the reportable segments' management. The Company evaluates performance of the reportable segments based on the results of each segment. The performance metric used by the Company's chief operating decision maker to evaluate performance of our reportable

maker to evaluate performance of our reportable segments is Adjusted EBITDA. The Company allocates expense to each segment based on various factors including direct usage of resources, allocation of headcount, allocation of software licenses or, in cases where costs are not clearly delineated, costs may be allocated on portion of either net trade sales or an expense factor such as cost of goods sold.

We allocate and disclose depreciation and amortization expense to our segments, although depreciation and amortization are not included in the segment performance metric Adjusted EBITDA. We also allocate and disclose restructuring charges and impairment of goodwill and other intangible assets by segment. However, restructuring charges and goodwill are not included in the segment performance metric Adjusted EBITDA since they are categorized as certain specified items (“Special Items”), in addition to

specified items (“Special Items”), in addition to certain transaction and other charges and gains related to acquisitions and divestitures and certain other specific items excluded from the calculation of Adjusted EBITDA. The accounting policies of the reportable segments and Corporate are the same as those applied to the Consolidated Financial Statements.

The following tables show Net Sales and Adjusted EBITDA by reportable segment:

 |
| table | |           | Year Ended December 31, |
-------------------------------------------------------- | --------- | ----------------------- | ---------
(In millions)                                            | 2019      | 2018                    | 2017
Net Sales                                                |           |                         |
Food Care                                                | $ 2,880.5 | $ 2,908.1               | $ 2,815.2
As a % of Total Company net sales                        | 60.1%     | 61.4%                   | 63.1%
Product Care                                             | 1,910.6   | 1,824.6                 | 1,646.4
As a % of Total Company net sales                        | 39.9%     | 38.6%                   | 36.9%
Total Company Net Sales                                  | $ 4,791.1 | $ 4,732.7               | $ 4,461.6
                                                         |           |                         |
                                                         |           | Year Ended December 31, |
(In millions)                                            | 2019      | 2018                    | 2017
Adjusted EBITDA from continuing operations               |           |                         |
Food Care                                                | $ 629.3   | $ 577.8                 | $ 538.1
Adjusted EBITDA Margin                                   | 21.8%     | 19.9%                   | 19.1%
Product Care                                             | 349.9     | 318.6                   | 292.2
Adjusted EBITDA Margin                                   | 18.3%     | 17.5%                   | 17.7%
Corporate                                                | (14.4)    | (6.9)                   | 3.0
Total Company Adjusted EBITDA from continuing operations | $ 964.8   | $ 889.5                 | $ 833.3
Adjusted EBITDA Margin                                   | 20.1%     | 18.8%                   | 18.7% |


| _id | d1b3bcdc8 |
| title |  |
| text | Our restaurant leases generally provide for fixed rental payments (with cost-of-living index adjustments) plus real estate taxes, insurance, and other expenses. In addition, approximately 14% of our leases provide for contingent rental payments between 1% and 15% of the restaurant’s gross sales once certain thresholds are met. We have generally been able to renew our restaurant leases as they expire at then-current market rates. The remaining terms of ground leases range from less than one year to 49 years,

leases range from less than one year to 49 years, including optional renewal periods. The remaining lease terms of our other leases range from less thanone year to 56 years, including optional renewal periods.

As of September 29, 2019, our restaurant leases had initial terms expiring as follows:

Our principal executive offices are located in San Diego, California in an owned facility of approximately 150,000 square feet. We also own our 70,000 square foot Innovation Center and approximately four acres of undeveloped land directly adjacent to it. We plan to sell our principal executive offices and consolidate our headquarters in the Innovation Center, which we believe will be suitable and adequate for our purposes.

 |
| table | |        | Number of Restaurants
----------- | ------ | ---------------------
            |        | Land and
            | Ground | Building
Fiscal Year | Leases | Leases
2020 – 2024 | 381    | 697
2025 – 2029 | 198    | 270
2030 – 2034 | 40     | 135 |


| _id | d1b31e6b4 |
| title |  |
| text | A condensed summary of the Company’s financial information for equity-accounted investments (20% to 52%-owned) shown on a 100% basis (excluding the impact from purchase price adjustments arising from the acquisition of Joint Ventures) are as follows:
The results included for TIL are until its consolidation on November 27, 2017. The results included for Altera are from the date of deconsolidation on September 25, 2017 to the sale of Teekay's remaining interests on May 8, 2019.

For the year ended December 31, 2019, the Company recorded equity loss of $14.5 million (2018 – income of $61.1 million, and 2017 – loss of $37.3 million).
The equity loss in 2019 was primarily comprised of the write-down and loss on sale of Teekay's investment in Altera and the Company’s share of net loss from the Bahrain LNG Joint Venture; offset by equity income in the Yamal LNG Joint Venture, the RasGas III Joint Venture, the MALT Joint Venture, the Pan Union Joint Venture and the Angola Joint Venture.

For the year ended December 31, 2019, equity loss included $12.9 million related to the Company’s share of unrealized losses on interest rate swaps in the equity-accounted investments (2018 – gains of $17.6 million and 2017 – gains of $7.7 million).

 |
| table | | As at December 31, |
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------ | ---------
                                                                                | 2019               | 2018
                                                                                | $                  | $
Cash and restricted cash                                                                                | 379,085            | 568,843
Other assets – current                                                                                | 148,663            | 412,388
Vessels and equipment, including vessels related to finance leases and advances on  Vessels and equipment, including vessels related to finance leases and advances on newbuilding contracts | 3,123,377          | 6,615,077
Net investment in direct financing leases                                                                                | 4,469,861          | 3,000,927
Other assets – non-current                                                                                | 169,925            | 1,957,271
Current portion of long-term debt and obligations related to finance leases                                                                                | 563,776            | 1,106,812
Other liabilities – current                                                                                | 189,165            | 563,862
Long-term debt and obligations related to finance leases                                                                                | 5,156,307          | 6,882,426
Other liabilities – non-current                                                                                | 243,301            | 478,311 |


| _id | d1a725f60 |
| title |  |
| text | 3. Accrued and other liabilities:
Accrued and other current liabilities consist of the following (in thousands):

 |
| table | | December 31, |
-------------------------------- | ------------ | -------
                                 | 2019         | 2018
Operating accruals               | $23,695      | $24,020
Deferred revenue—current portion | 4,316        | 4,504
Payroll and benefits             | 6,613        | 7,695
Taxes—non-income based           | 6,053        | 4,212
Interest                         | 10,624       | 11,000
Total                            | $51,301      | $51,431 |


| _id | d1a72740a |
| title |  |
| text | NOTE 2. FAIR VALUE OF FINANCIAL INSTRUMENTS
For cash equivalents, amounts receivable or payable and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities.

The Company’s estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows: Level 1: inputs to the valuation are quoted prices in an active market for identical assets Level

in an active market for identical assets Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly Level 3: valuation is based on significant inputs that are unobservable in the market and the Company’s own estimates of assumptions that it believes market participants would use in pricing the asset

Fair value of financial assets, included in cash and cash equivalents, and financial liabilities is as follows:

(a) In accordance with ASC Subtopic 360-10, long-lived assets held for sale with a carrying value of $4,575 were written down to their fair value of $1,300, resulting in an impairment totaling $3,275, which was included in earnings for the fiscal year ended June 30, 2017. The Company has entered into an agreement to sell these assets. That sale is expected to be completed during the second quarter of fiscal 2020.

 |
| table | |         | Estimated Fair Value Measurements |         |
------------------------------------- | ------- | --------------------------------- | ------- | ----------------
Recurring Fair Value Measurements     | Level 1 | Level 2                           | Level 3 | Total Fair Value
June 30, 2019                         |         |                                   |         |
Financial Assets:                     |         |                                   |         |
Money market funds                    | $81,945 | $—                                | $—      | $81,945
June 30, 2018                         |         |                                   |         |
Financial Assets:                     |         |                                   |         |
Money market funds                    | $14,918 | $—                                | $—      | $14,918
Non-Recurring Fair Value Measurements |         |                                   |         |
June 30, 2019                         |         |                                   |         |
Long-lived assets held for sale       | $—      | $1,300                            | $—      | $1,300
June 30, 2018                         |         |                                   |         |
Long-lived assets held for sale (a)   | $—      | $1,300                            | $—      | $1,300 |


| _id | d1b3662d4 |
| title |  |
| text | P. Income Taxes
VMware’s income tax provision (benefit) for the periods presented consisted of the following (table in millions):

 |
| table | |                  | For the Year Ended |
------------------------------------ | ---------------- | ------------------ | ----------------
                                     | January 31, 2020 | February 1, 2019   | February 2, 2018
Federal:                             |                  |                    |
Current                              | $78              | $181               | $688
Deferred                             | (219)            | (92)               | 275
                                     | (141)            | 89                 | 963
State:                               |                  |                    |
Current                              | 45               | 31                 | 8
Deferred                             | (44)             | (10)               | 21
                                     | 1                | 21                 | 29
Foreign:                             |                  |                    |
Current                              | 240              | 137                | 156
Deferred                             | (5,018)          | (8)                | 4
                                     | (4,778)          | 129                | 160
Total income tax provision (benefit) | $(4,918)         | $239               | $1,152 |


| _id | d1b352b12 |
| title |  |
| text | NAVIOS MARITIME HOLDINGS INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in thousands of U.S. dollars — except share data)
Chartered-out vessels, barges and pushboats:

Chartered-out vessels, barges and pushboats:
The future minimum revenue, net of commissions, (i) for dry bulk vessels, expected to be earned on non-cancelable time charters; and (ii) for the Company’s logistics business, expected to be earned on non-cancelable time charters, COA’s with minimum guaranteed volumes and contracts with minimum guaranteed throughput in Navios Logistics’ ports expected to be earned on non-cancelable time charters, are as follows:

Revenues from time charters are not generally received when a vessel is off-hire, which includes time required for scheduled maintenance of the vessel.

 |
| table | | Dry bulk vessels | Logistics business
----------------------------------------- | ---------------- | ------------------
2020                                      | 22,266           | 129,437
2021                                      | 4,607            | 97,544
2022                                      | 3,445            | 75,425
2023                                      | —                | 69,250
2024                                      | —                | 60,200
2025 and thereafter                       | —                | 642,479
Total minimum revenue, net of commissions | $30,318          | $1,074,335 |


| _id | d1b35de90 |
| title |  |
| text | Contract Balances
The following table provides information about contract assets and contract liabilities from contracts with customers.

Contract assets primarily result from revenue being recognized when or as control of a solution or service is transferred to the customer, but where invoicing is delayed until the completion of other performance obligations or payment terms differ from the provisioning of services. The current portion of contract assets is reported within prepaid expenses and other in the consolidated balance sheet, and the non-current portion is included in other non-current assets. Contract liabilities (deferred revenue)

assets. Contract liabilities (deferred revenue) primarily relate to consideration received from customers in advance of delivery of the related goods and services to the customer. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period.

The Company analyzes contract language to identify if a significant financing component does exist, and would adjust the transaction price for any material effects of the time value of money if the timing of payments provides either party to the contract with a significant benefit of financing the transaction.

During the fiscal years ended June 30, 2019, 2018, and 2017, the Company recognized revenue of $265,946, $269,593, and $264,517, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods.

Revenue recognized that related to performance obligations satisfied (or partially satisfied) in prior periods were immaterial for each period presented. These adjustments are primarily the result of transaction price adjustments and re-allocations due to changes in estimates of variable consideration.

 |
| table | | June 30, 2019 | June 30, 2018
---------------------------------------------------- | ------------- | -------------
Receivables, net                                     | $310,080      | $297,271
Contract Assets- Current                             | 21,446        | 14,063
Contract Assets- Non-current                         | 50,640        | 35,630
Contract Liabilities (Deferred Revenue)- Current     | 339,752       | 328,931
Contract Liabilities (Deferred Revenue)- Non-current | 54,554        | 40,984 |


| _id | d1b2ecdee |
| title |  |
| text | REVENUE
The sales cycle from quotation to shipment for our Front-end equipment generally takes several months, depending on capacity utilization and the urgency of the order. Usually, acceptance is within four months after shipment. The sales cycle is longer for equipment that is installed at the customer’s site for evaluation prior to sale. The typical trial period ranges from six months to two years after installation.

Our revenues are concentrated in Asia, the United States and Europe. The following table shows the geographic distribution of our revenue for 2018 and 2019:

 |
| table | |       | Year ended December 31 |         |
------------- | ----- | ---------------------- | ------- | ------
(EUR million) | 2018  |                        | 2019    |
United States | 175.9 | 21.5%                  | 339.5   | 26.4%
Europe        | 165.6 | 20.2%                  | 126.2   | 9.8%
Asia          | 476.6 | 58.3%                  | 818.2   | 63.7%
              | 818.1 | 100.0%                 | 1,283.9 | 100.0% |


| _id | d1b3a9a7a |
| title |  |
| text | Net cash from operating activities. Net cash from operating activities is the sum of (i) net income (loss) adjusted for non-cash items and (ii) changes in net working capital. The net cash from operating activities in 2019 was $1,869 million, increasing compared to $1,845 million in the prior year, mainly due to more favorable changes in net working capital, compensating lower net income.

Net cash used in investing activities. Investing activities used $1,172 million of cash in 2019, decreasing from $1,212 million in the prior year. Payments for purchase of tangible assets, net of proceeds, totaled $1,174 million, compared to $1,262 million registered in the prior-year period. The 2019 numbers also included the proceeds from matured marketable securities of $200 million and the net cash outflow of $127 million for the acquisition of Norstel.

Net cash used in financing activities. Net cash used in financing activities was $343 million for 2019, compared to the $122 million used in 2018. The 2019 amount included $281 million proceeds from long-term debt, $144 million of long-term debt repayment, $250 million of repurchase of common stock and $214 million of dividends paid to stockholders.

 |
| table | |         | Year Ended December 31, |
------------------------------------- | ------- | ----------------------- | -------
                                      | 2019    | 2018                    | 2017
                                      |         | (In millions)           |
Net cash from operating activities    | $1,869  | $1,845                  | $1,677
Net cash used in investing activities | (1,172) | (1,212)                 | (1,468)
Net cash used in financing activities | (343)   | (122)                   | (106)
Effect of changes in exchange rates   | (13)    | (4)                     | 27
Net cash increase                     | $341    | $507                    | $130 |


| _id | d1b358008 |
| title |  |
| text | Figure 31. 2019/2021 LTIP Award Grants
(1) The number of Market-based PRSUs awarded is reflected at target. The final number of shares that may be earned will be 0% to 150% of target.
(2) Mr. Anstice did not participate in the 2019/2021 LTIP because he terminated his employment with the Company as of December 5, 2018.

The independent members of the Board consulted with the committee and the committee’s compensation consultant to determine the appropriate amount and vesting schedule for Mr. Archer’s award. The independent members of the Board, on December 6, 2018, granted to Mr. Archer a $5,000,000 equity award consisting of 50% service-based RSUs and 50% stock options with a four-year vesting schedule, as shown below. No adjustment was made at that time to his annual base salary or his target award opportunities under

salary or his target award opportunities under the AIP or LTIP. These were adjusted to be competitive with CEOs in our peer group as part of the normal annual compensation review in February 2019.

In light of Mr. Bettinger’s critical role, his expanded responsibilities, and the intense competition in the technology industry for proven CFO talent, he received a special equity award on November 30, 2018. The committee consulted with its compensation consultant and with the Board to determine the amount and vesting schedule for the award. The committee granted to Mr. Bettinger a one-time service-based restricted stock unit (RSU) award with a nominal value of $8,000,000 and a four-year vesting schedule,

of $8,000,000 and a four-year vesting schedule, as shown below.

 |
| table | Named Executive Officer (1)(2) | Target Award Opportunity ($) | Market-based PRSUs Award (#) | Stock Options Award (#) | Service-based RSUs Award (#)
------------------------------ | ---------------------------- | ---------------------------- | ----------------------- | ----------------------------
Timothy M. Archer              | 7,200,000                    | 21,243                       | 33,988                  | 12,746
Douglas R. Bettinger           | 2,700,000                    | 7,966                        | 12,744                  | 4,779
Richard A. Gottscho            | 2,250,000                    | 6,638                        | 10,620                  | 3,983
Patrick J. Lord                | 1,800,000                    | 5,310                        | 8,496                   | 3,186
Vahid Vahedi                   | 1,575,000                    | 4,647                        | 7,432                   | 2,788
Seshasayee (Sesha) Varadarajan | 1,575,000                    | 4,647                        | 7,432                   | 2,788 |


| _id | d1b34a48a |
| title |  |
| text | Security Ownership of Management
(a) Amounts listed in this column may include shares held in partnerships or trusts that are counted in more than one individual’s total.
* less than 1%
(1) In computing the percentage of shares owned by each person and by the group, these restricted stock units and stock options, as applicable,
were added to the total number of outstanding shares of common stock for the percentage calculation.

(2) Includes 577,462 shares owned by Mr. Richard Leeds directly, 1,000,000 shares owned by the Richard Leeds 2020 GRAT, 1,000,000
shares owned by the Richard Leeds 2019 GRAT, and 1,263,265 shares owned by the Richard Leeds 2018 GRAT. Also, includes 1,838,583
shares owned by a limited partnership of which Mr. Richard Leeds is a general partner, 100 shares owned by the general partner of the

aforementioned limited partnership, 235,850 shares owned by a limited partnership of which a limited liability company controlled by Mr.
Richard Leeds is the general partner, 7,981,756 shares owned by trusts for the benefit of his brothers’ children for which Mr. Richard Leeds
acts as co-trustee, 519,800 shares owned by a limited partnership in which Mr. Richard Leeds has an indirect pecuniary interest, and

10,000 shares owned by trusts for the benefits of other family members for which Mr. Richard Leeds acts as co-trustee.
(3) Includes 1,007,661 shares owned by Mr. Bruce Leeds directly, 1,000,000 shares owned by the Bruce Leeds 2020 GRAT, 1,000,000 shares
owned by the Bruce Leeds 2019 GRAT, and 581,633 shares owned by the Bruce Leeds 2018 GRAT. Also, includes 1,838,583 shares

owned by a limited partnership of which Mr. Bruce Leeds is a general partner, 100 shares owned by the general partner of the aforementioned
limited partnership, 7,728,313 shares owned by trusts for the benefit of his brothers’ children for which Mr. Bruce Leeds acts as co-trustee,
519,800 shares owned by a limited partnership in which Mr. Bruce Leeds has an indirect pecuniary interest, and 10,000 shares owned by
trusts for the benefits of other family members for which Mr. Richard Leeds acts as co-trustee.

(4) Includes 16,429 shares owned by Mr. Robert Leeds directly, 1,000,000 shares owned by the Robert Leeds 2020 GRAT, 1,500,000 shares
owned by the Robert Leeds 2019 GRAT, and 741,817 shares owned by the Robert Leeds 2018 GRAT. Also, includes 1,838,583 shares
owned by a limited partnership of which Mr. Robert Leeds is a general partner, 100 shares owned by the general partner of the aforementioned

limited partnership, 7,397,263 shares owned by trusts for the benefit of his brothers’ children for which Mr. Robert Leeds acts as co-trustee
and 519,800 shares owned by a limited partnership in which Mr. Robert Leeds has an indirect pecuniary interest.
(5) Includes 1,000 shares held by Mr. Reinhold's spouse, of which Mr. Reinhold disclaims beneficial ownership.

 |
| table | Name of Beneficial Owner                                         | Shares of Common Stock (a) | Restricted Stock Units Vesting within 60 days | Stock Options currently exercisable or becoming exercisable within 60 days (1) | Percent of Common Stock
---------------------------------------------------------------- | -------------------------- | --------------------------------------------- | ------------------------------------------------------------------------------ | -----------------------
Richard Leeds (2)                                                | 14,526,816                 | -                                             | -                                                                              | 38%
Bruce Leeds (3)                                                  | 13,686,090                 | -                                             | -                                                                              | 36%
Robert Leeds (4)                                                 | 13,013,992                 | -                                             | -                                                                              | 34%
Barry Litwin                                                     | 5,098                      | 1,259                                         | -                                                                              | *
Robert D. Rosenthal                                              | 69,401                     | 1,259                                         | 10,000                                                                         | *
Chad M. Lindbloom                                                | 680                        | 1,259                                         | -                                                                              | *
Paul S. Pearlman                                                 | -                          | 849                                           | -                                                                              | *
Lawrence Reinhold                                                | 159,344 (5)                | 849                                           | -                                                                              | *
Thomas Clark                                                     | 18,233                     | -                                             | 53,737                                                                         | *
Robert Dooley                                                    | 70,264                     | -                                             | 45,348                                                                         | *
Eric Lerner                                                      | 4,147                      | -                                             | 18,750                                                                         | *
Manoj Shetty                                                     | 2,922                      | -                                             | 51,063                                                                         | *
All of our current directors and executive officers (16 persons) | 25,181,435                 | 5,475                                         | 196,496                                                                        | 67% |


| _id | d1b305c90 |
| title |  |
| text | AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in millions, unless otherwise disclosed)
Information about receivables, contract assets and contract liabilities from contracts with tenants is as follows:
(1) Prior-period amounts adjusted with the adoption of the new lease accounting guidance, as applicable.
(2) Excludes $56.7 million and $55.0 million of capital contributions related to DAS networks as of December 31, 2019 and 2018, respectively.

(3) Excludes $300.2 million and $313.6 million of capital contributions related to DAS networks as of December 31, 2019 and 2018, respectively.

The Company records unearned revenue when payments are received from tenants in advance of the completion of the Company’s performance obligations. Long-term unearned revenue is included in Other non-current liabilities. During the year ended December 31, 2019, the Company recognized $62.2 million of revenue that was included in the Unearned revenue balance as of December 31, 2018. During the year ended December 31, 2018, the Company recognized $44.4 million of revenue that was included in the Unearned

of revenue that was included in the Unearned revenue balance as of January 1, 2018. The Company also recognized revenues of $59.2 million and $55.4 million during the years ended December 31, 2019 and December 31, 2018, respectively, for capital contributions related to DAS networks. There was $0.4 million of revenue recognized from Other non-current liabilities during each of the years ended December 31, 2019 and 2018. $59.2 million and $55.4 million during the years ended December 31, 2019 and December

the years ended December 31, 2019 and December 31, 2018, respectively, for capital contributions related to DAS networks. There was $0.4 million of revenue recognized from Other non-current liabilities during each of the years ended December 31, 2019 and 2018.

$59.2 million and $55.4 million during the years ended December 31, 2019 and December 31, 2018, respectively, for capital
contributions related to DAS networks. There was $0.4 million of revenue recognized from Other non-current liabilities during
each of the years ended December 31, 2019 and 2018.

 |
| table | | December 31, 2019 | December 31, 2018 (1)
--------------------------------------------- | ----------------- | ---------------------
Accounts receivable                           | $80.5             | $92.6
Prepaids and other current assets             | 8.3               | 7.7
Notes receivable and other non-current assets | 21.3              | 22.2
Unearned revenue (2)                          | 35.0              | 35.0
Other non-current liabilities (3)             | 79.0              | 54.1 |


| _id | d1b34baf6 |
| title |  |
| text | 2016 Collective Bargaining Negotiations
During 2016, we adopted changes to our defined benefit pension plans and other postretirement benefit plans to reflect the agreed upon terms and conditions of the collective bargaining agreements ratified in June 2016. The impact includes a net increase to Accumulated other comprehensive income of $2.9 billion (net of taxes of $1.8 billion).

The amount recorded in Accumulated other comprehensive income will be reclassified to net periodic benefit cost on a straight-line basis over the average remaining service period of the respective plans’ participants, which, on a weighted-average basis, is 12.2 years for defined benefit pension plans and 7.8 years for other postretirement benefit plans.

The above-noted reclassification resulted in a decrease to net periodic benefit cost and increase to pre-tax income of approximately $658 million during 2019, 2018 and 2017, respectively. Information for pension plans with an accumulated benefit obligation in excess of plan assets follows:
Information for pension plans with an accumulated benefit obligation in excess of plan assets follows:

 |
| table | |          | (dollars in millions)
------------------------------ | -------- | ---------------------
At December 31,                | 2019     | 2018
Projected benefit obligation   | $ 21,190 | $ 19,510
Accumulated benefit obligation | 21,134   | 19,461
Fair value of plan assets      | 19,388   | 17,757 |


| _id | d1b3a487c |
| title |  |
| text | Due To/From Related Parties, Net
Amounts due to and from related parties, net as of the periods presented consisted of the following (table in millions):
(1) Includes an immaterial amount related to our current operating lease liabilities due to related parties as of January 31, 2020.

We also recognized an immaterial amount related to non-current operating lease liabilities due to related parties. This amount has been included in operating lease liabilities on the consolidated balance sheet as of January 31, 2020.

Amounts included in due from related parties, net, excluding DFS and tax obligations, includes the current portion of amounts due to and due from related parties. Amounts included in due from related parties, net are generally settled in cash within 60 days of each quarter-end.

 |
| table | | January 31, 2020 | February 1, 2019
-------------------------------------- | ---------------- | ----------------
Due from related parties, current      | $1,618           | $1,248
Due to related parties, current(1)     | 161              | 158
Due from related parties, net, current | $1,457           | $1,090 |


| _id | d1b3719ae |
| title |  |
| text | ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
We have established an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends, and other information.

Accounts Receivable and Allowance for Doubtful Accounts — Accounts receivable are recorded at net realizable value. We maintain a credit approval process and we make significant judgments in connection with assessing our customers’ ability to pay. Despite this assessment, from time to time, our customers are unable to meet their payment obligations. We continuously monitor our customers’ credit worthiness and use our judgment in establishing a provision for estimated credit losses based upon our historical

estimated credit losses based upon our historical experience and any specific customer collection issues that we have identified. While such credit losses have historically been within our expectations and the provisions established, there is no assurance that we will continue to experience the same credit loss rates that we have in the past. For example, in the fourth quarter, we increased our allowance for doubtful accounts by $4.2 million relating to a customer exposure in China resulting from economic

exposure in China resulting from economic softness and funding delays causing uncertainty in large program timing which uncertainty is now exacerbated by the spreading Coronavirus. A significant change in the liquidity or financial position of our customers could have a material adverse impact on the collectability of accounts receivable and our future operating results.

Changes in allowance for doubtful accounts are summarized as follows:

 |
| table | | Years Ended December 31, |
------------------------------------------ | ------------------------ | ------
                                           | 2019                     | 2018
Balances at beginning of period            | $1,856                   | $1,748
Additions from acquisition                 | 1,884                    | 416
Additions - charged to expense             | 4,207                    | 109
Deductions - write-offs, net of recoveries | (202)                    | (417)
Balances at end of period                  | $7,745                   | $1,856 |


| _id | d1b364ee8 |
| title |  |
| text | Year ended December 31, 2019 compared with the year ended December 31, 2018:
Revenue in 2019 is derived from license agreements that we entered into with third-parties following negotiations pursuant to our patent licensing and enforcement program. The revenue decrease is primarily due to timing of revenues, as further described in "Item 1. Business" - "Licensing and Enforcement - Current Activities, Post 2013".

Cost of revenues includes contingent legal fees directly associated with our licensing and enforcement programs. Cost of revenues primarily decreased in proportion to the decrease in revenues.

Operating expenses consists of sales and marketing, general and administrative, and research and development. Selling, general and administrative expenses ("SG&A") consisted primarily of legal fees incurred in operations and employee headcount related expenses. These comprise approximately 60% of total SG&A expense. Litigation expenses increased $3.0 million to $19.4 million in 2019 compared to 2018 and are primarily due to the timing of various outstanding litigation actions. See "Item 3. Legal

litigation actions. See "Item 3. Legal Proceedings". Employee headcount related expenses decreased $2.0 million to $3.6 million in 2019 compared to 2018, primarily due to lower incentive bonuses.

Research and development expense remained flat between years.
Other expense decreased in 2019 as we no longer have exposure from the warrant liability, and included $0.7 million related to the sale of our investment in JVP, offset by $0.3 million of net interest income.
Income tax provision (benefit) is primarily a function of income (loss) before income, state income tax expense (benefit) and federal benefit of foreign derived intangible tax benefit related to 2018.

 |
| table | For the Years Ended December 31,    |         |       |         |
----------------------------------- | ------- | ----- | ------- | --------
                                    | 2019    | 2018  | Change  | % Change
(In millions, except percentages)   |         |       |         |
Revenues                            | $13.2   | $82.3 | $(69.1) | (84)%
Cost of revenues                    | 1.9     | 15.3  | (13.4)  | (88)%
Gross profit                        | 11.3    | 67.0  | (55.7)  | (83)%
Gross margin                        | 86 %    | 81 %  |         |
Operating expenses:                 |         |       |         |
Selling, general and administrative | 31.7    | 32.2  | (0.5)   | (2)%
Research and development            | 2.0     | 2.1   | (0.1)   | (5)%
Total operating expenses            | 33.7    | 34.3  | (0.6)   | (2)%
Other expense                       | (0.3)   | (4.0) | 3.7     | (93)%
Income (loss) before income taxes   | (22.7)  | 28.7  | (51.4)  | (179)%
Income tax provision (benefit)      | (6.2)   | 8.0   | (14.2)  | (178)%
Net income (loss)                   | $(16.5) | $20.7 | $(37.2) | (180)% |


| _id | d1b3c230e |
| title |  |
| text | Impairment of Goodwill
We recorded a goodwill impairment charge of $1.9 million in the fourth quarter of 2019, reducing the goodwill balance to zero at that time. We also recorded a goodwill impairment charge of $14.7 million in the third quarter of 2018. Refer to Note 2 and Note 6 of the accompanying consolidated financial statements for additional information on these goodwill impairment charges.

 |
| table | | Years Ended December 31, |                        | Change    |
------------------------ | ------------------------ | ---------------------- | --------- | -----
                         | 2019                     | 2018                   | $         | %
                         |                          | (dollars in thousands) |           |
Impairment of goodwill   | $1,910                   | $14,740                | $(12,830) | (87%)
Percent of revenues, net | 4%                       | 26%                    |           | |


| _id | d1b347398 |
| title |  |
| text | 6. Other Balance Sheet Account Details
Allowance for Doubtful Accounts
The following table presents the changes in the allowance for doubtful accounts (in thousands):

 |
| table | | December 31, 2019 | December 31, 2018
-------------------------------------------------- | ----------------- | -----------------
Allowance for doubtful accounts, beginning balance | $319              | $983
Increase (decrease) of provision                   | (72)              | (26)
Write-offs                                         | (195)             | (638)
Allowance for doubtful accounts, ending balance    | $52               | $319 |


| _id | d1b33c5ce |
| title |  |
| text | Constant underlying earnings per share
Constant underlying earnings per share (constant underlying EPS) is calculated as underlying profit attributable to shareholders’ equity at constant exchange rates and excluding the impact of both translational hedges and price growth in excess of 26% per year in hyperinflationary economies divided by the diluted average number of ordinary share units. This measure reflects the underlying earnings for each ordinary share unit of the Group in constant exchange rates.

The reconciliation of underlying profit attributable to shareholders’ equity to constant underlying earnings attributable to shareholders’ equity and the calculation of constant underlying EPS is as follows:
(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
(b) See note 7.
(c) See pages 28 and 29 for further details.

 |
| table | | € million | € million
-------------------------------------------------------------------------------------- | --------- | -------------
                                                                                | 2019      | 2018
                                                                                |           | (Restated)(a)
Underlying profit attributable to shareholders’ equity(b)                              | 6,688     | 6,345
Impact of translation from current to constant exchange rates and translational hedges | 13        | 46
Impact of price growth in excess of 26% per year in hyperinflationary economies(c)     | (108)     | (10)
Constant underlying earnings attributable to shareholders’ equity                      | 6,593     | 6,381
Diluted combined average number of share units (millions of units)                     | 2,626.7   | 2,694.8
Constant underlying EPS (€)                                                            | 2.51      | 2.37 |


| _id | d1b3a06aa |
| title |  |
| text | Share buybacks
On 28 January 2019, Vodafone announced the commencement of a new irrevocable and non-discretionary share buy-back programme. The sole purpose of the programme was to reduce the issued share capital of Vodafone and thereby avoid any change in Vodafone’s issued share capital as a result of the maturing of the second tranche of the mandatory convertible bond (‘MCB’) in February 2019.

In order to satisfy the second tranche of the MCB, 799.1 of million shares were reissued from treasury shares on 25 February 2019 at a conversion price of £1.8021. This reflected the conversion price at issue (£2.1730) adjusted for the pound sterling equivalent of aggregate dividends paid from August 2016 to February 2019.

The share buyback programme started in February 2019 and is expected to complete by 20 May 2019. Details of the shares purchased under the programme, including those purchased under irrevocable instructions, are shown below.

 |
| table | | Number of shares purchased | Average price paid per share inclusive of transaction costs | Total number of shares purchased under publicly announced share buyback programme | Maximum number of shares that may yet be purchased under the programme
---------------------- | -------------------------- | ----------------------------------------------------------- | --------------------------------------------------------------------------------- | ----------------------------------------------------------------------
Date of share purchase | 000s                       | Pence                                                       | 000s                                                                              | 000s
February 2019          | 14,529                     | 135.17                                                      | 14,529                                                                            | 784,539
March 2019             | 305,099                    | 140.56                                                      | 319,628                                                                           | 479,440
April 2019             | 290,570                    | 142.20                                                      | 610,198                                                                           | 188,870
May 2019 (to date)     | 116,228                    | 140.11                                                      | 726,426                                                                           | 72,642
Total                  | 726,426                    | 141.04                                                      | 726,426                                                                           | 72,642 |


| _id | d1b328920 |
| title |  |
| text | The long-term rate of return assumption represents the expected average rate of earnings on the funds invested or to be invested to provide for the benefits included in the benefit obligations. That assumption is determined based on a number of factors, including historical market index returns, the anticipated long-term asset allocation of the plans, historical plan return data, plan expenses, and the potential to outperform market index returns.

We have the responsibility to formulate the investment policies and strategies for the plans’ assets. Our overall policies and strategies include: maintain the highest possible return commensurate with the level of assumed risk, and preserve benefit security for the plans’ participants.

We do not direct the day-to-day operations and selection process of individual securities and investments and, accordingly, we have retained the professional services of investment management organizations to fulfill those tasks. The investment management organizations have investment discretion over the assets placed under their management. We provide each investment manager with specific investment guidelines by asset class.

 |
| table | |      | Years Ended September 30, |
---------------------------------------------------------------------------------------------------------- | ---- | ------------------------- | ----
                                                                                | 2019 | 2018                      | 2017
Weighted-average assumptions used to determine benefit obligation at September 30:                         |      |                           |
Discount rate                                                                                | 2.5% | 3.6%                      | 3.3%
Rate of compensation increase                                                                              | 3.1% | 3.3%                      | 3.2%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended September 30: |      |                           |
Discount rate                                                                                | 3.6% | 3.3%                      | 3.0%
Expected return on plan assets                                                                             | 5.7% | 6.8%                      | 6.8%
Rate of compensation increase                                                                              | 3.3% | 3.2%                      | 3.1% |


| _id | d1b399b34 |
| title |  |
| text | A segment-level summary of the goodwill allocation is presented below.
The recoverable amount of the group’s intangible assets has been assessed based on value-in-use calculations. The value in use is calculated using a discounted cash flow methodology covering a four year period plus terminal value.
Cash flow forecasts

Cash flow forecasts are post-tax and based on the most recent financial projections covering a maximum of five years. Financial projections are based on assumptions that represent management’s best estimates.
Revenue growth rates

Revenue growth rates used are based on management’s latest four-year plan. Four-year growth rates averaged between 8.8% to 12.1% for these CGUs (Board & Systems - Americas 8.8%, Board & Systems - EMEA 12.1% and Parts Analytics and Search 11.8%). Sensitivity testing was performed on these CGUs and a reasonably possible decline in these rates would not cause the carrying value of any of these CGUs to exceed its recoverable amount.
Terminal value

The terminal value calculated after year four is determined using the perpetual growth model, having regard to the weighted average cost of capital (WACC) and terminal growth factor appropriate to each CGU. Terminal growth rates used in the financial projections was 2.0%.
Discount rates

Discount rates used are WACC and include a premium for market risks appropriate to each country in which the CGU operates. WACCs averaged 8.9% (Board & Systems - Americas 9.1%, Board & Systems - EMEA 8.6% and Parts Analytics and Search 9.1%).
Sensitivity  Any reasonable change to the above key assumptions would not cause the carrying value of any of the remaining CGU’s to materially exceed its recoverable amount.
Accounting policy for intangible assets
Goodwill

Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed.
Intellectual property

Significant costs associated with intellectual property are deferred and amortised on a straight-line basis over the period of their expected benefit, being their finite life of 5 to 10 years.
Customer relationships

Customer relationships acquired in a business combination are amortised on a straight-line basis over the period of their expected benefit, being their finite life of 10 to 15 years.
Software intangibles

Software intangibles arise from costs associated with the direct development and implementation on an internal project on new and existing software utilised by the group which demonstrates the technical feasibility of providing future economic benefits and amortised on a straight-line basis over the period of their expected benefit, being their finite life of 2 to 5 years.
Accounting policy for intangible assets

 |
| table | | Consolidated |
-------------------------- | ------------ | ------
                           | 2019         | 2018
                           | US$000       | US$000
Goodwill                   |              |
Board & Systems - Americas | 10,672       | 8,324
Board & Systems - EMEA     | 5,383        | 5,383
Parts Analytics and Search | 13,444       | 13,444
Total                      | 29,499       | 27,151 |


| _id | d1b31e7a4 |
| title |  |
| text | Disaggregated Revenue
The Company has disaggregated revenue from contracts with customers into categories which depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Consequently, the disaggregation below is based on contract type.

Since the terms within these contract types are generally standard in nature, the Company does not believe that further disaggregation would result in increased insight into the economic factors impacting revenue and cash flows.
The following table shows the Company's shipping revenues disaggregated by nature of the charter arrangement for the years ended December 31, 2019 and 2018:

(1) Voyage charter revenues include approximately $10,152 and $7,600 of revenue related to short-term time charter contracts for the years ended December 31, 2019 and 2018, respectively.

 |
| table | | Years Ended December 31, |
----------------------------------- | ------------------------ | --------
                                    | 2019                     | 2018
Time and bareboat charter revenues  | $263,683                 | $213,923
Voyage charter revenues(1)          | 33,275                   | 83,542
Contracts of affreightment revenues | 58,589                   | 68,698
Total shipping revenues             | $355,547                 | $366,163 |


| _id | d1b35e44e |
| title |  |
| text | Opening Balance Sheet Adjustment on January 1, 2018
As a result of applying the modified retrospective method to adopt ASC 606, the following amounts on our Consolidated Balance Sheet were adjusted as of January 1, 2018 to reflect the cumulative effect adjustment to the opening balance of Retained earnings (in millions):

 |
| table | | As reported December 31, 2017 | Adjustments for ASC 606 adoption | Adjusted January 1, 2018
----------------------------------------- | ----------------------------- | -------------------------------- | ------------------------
Trade receivables, net                    | $201.8                        | $(6.2)                           | $195.6
Prepaid expenses and other current assets | 44.6                          | 11.8                             | 56.4
Receivables from related parties          | 18.1                          | (3.7)                            | 14.4
Computer software, net                    | 416.8                         | 1.8                              | 418.6
Deferred contract costs, net              | 136.1                         | 13.3                             | 149.4
Other non-current assets                  | 104.0                         | 3.3                              | 107.3
Total assets                              | 3,655.9                       | 20.3                             | 3,676.2
Deferred revenues (current)               | 59.6                          | (1.9)                            | 57.7
Deferred revenues (non-current)           | 100.7                         | 6.8                              | 107.5
Deferred income taxes                     | 224.6                         | 4.2                              | 228.8
Total liabilities                         | 1,947.1                       | 9.1                              | 1,956.2
Retained earnings                         | 201.4                         | 11.2                             | 212.6
Total equity                              | 1,708.8                       | 11.2                             | 1,720.0
Total liabilities and equity              | 3,655.9                       | 20.3                             | 3,676.2 |


| _id | d1b31111c |
| title |  |
| text | VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and / or Manager:

 |
| table | |                                                                 |                                                                        | (` lakh)
------------------------------------------------------------------------------------------------- | --------------------------------------------------------------- | ---------------------------------------------------------------------- | ------------
Particulars of Remuneration                                                                       | Name of MD/WTD/Manager                                          |                                                                        |
                                                                                | Rajesh Gopinathan Chief Executive Officer and Managing Director | N Ganapathy Subramaniam Chief Operating Officer and Executive Director | Total Amount
Gross salary                                                                                |                                                                 |                                                                        |
(a) Salary as per provisions contained in Section 17(1) of the Income-tax Act, 1961               | 115.74                                                          | 109.02                                                                 | 224.76
(b) Value of perquisites u/s 17(2) of the Income-tax Act, 1961                                    | 126.76                                                          | 13.30                                                                  | 140.06
(c) Profits in lieu of salary under Section 17(3) of the Income-tax Act, 1961                     | -                                                               | -                                                                      | -
2. Stock Option                                                                                | -                                                               | -                                                                      | -
3.Sweat Equity                                                                                | -                                                               | -                                                                      | -
4.Commission                                                                                | 1,300.00                                                        | 900.00                                                                 | 2,200.00
as % of profit                                                                                | 0.03                                                            | 0.02                                                                   | 0.05
5.Others, Allowances                                                                              | 60.35                                                           | 138.76                                                                 | 199.11
Total (A)                                                                                | 1,602.85                                                        | 1,161.08                                                               | 2,763.93
Ceiling as per the Act (@ 10% of profits calculated under Section 198 of the Companies Act, 2013) |                                                                 |                                                                        | 404,348.06 |


| _id | d1b365708 |
| title |  |
| text | Ernst & Young LLP
Ernst & Young LLP fees incurred by us for fiscal 2018 and 2019 were as follows:
Audit Fees: Audit fees for fiscal 2018 and 2019 were for professional services rendered in connection with audits of our consolidated financial statements, statutory audits of our subsidiary companies, quarterly reviews, and assistance with documents that we filed with the SEC (including our Forms 10-Q and 8-K) for periods covering fiscal 2018 and 2019.

Audit-Related Fees: Audit-related fees for 2018 and 2019 were for professional services rendered in connection with consultations with management on various accounting matters, including audit of financial
statements of a carve-out entity and sell-side due diligence with respect to our previously announced Spin-Off.
Tax Fees: Tax fees for 2018 and 2019 were for tax compliance and consulting services.
All Other Fees: Other fees in 2018 and 2019 were for access to technical accounting services.

 |
| table | Services           | 2018 ($)  | 2019 ($)
------------------ | --------- | ----------
Audit Fees         | 5,859,755 | 5,024,093
Audit-Related Fees | 137,420   | 3,178,737
Tax Fees           | 1,440,168 | 2,346,879
All Other Fees     | 11,200    | 10,955
Total              | 7,448,544 | 10,560,664 |


| _id | d1b300c2c |
| title |  |
| text | INCOME TAX EXPENSE
Below is a summary of the difference between income tax expense computed by applying the statutory income tax rate to income before income tax expense and the actual income tax expense for the year.
Our effective income tax rate this year was 25.8% compared to 26.9% for 2018. The effective income tax rate for 2019 was lower than the statutory tax rate primarily as a result of a reduction to the Alberta corporate income tax rate over a four-year period.

Cash income taxes paid increased this year primarily as a result of the timing of installment payments.

 |
| table | | Years ended December31 |
--------------------------------------------------------- | ---------------------- | -----
(In millions of dollars, except tax rates)                | 2019                   | 2018
Statutory income tax rate                                 | 26.7%                  | 26.7%
Income before income tax expense                          | 2,755                  | 2,817
Computed income tax expense                               | 736                    | 752
Increase (decrease) in income tax expense resulting from: |                        |
Non-deductible stock-based compensation                   | –                      | 5
Non-deductible portion of equity losses                   | 7                      | 1
Income tax adjustment, legislative tax change             | (23)                   | -
Non-taxable portion of capital gains                      | (2)                    | (9)
Other items                                               | (6)                    | 9
Total income tax expense                                  | 712                    | 758
Effective income tax rate                                 | 25.8%                  | 26.9%
Cash income taxes paid                                    | 400                    | 370 |


| _id | d1b3b553c |
| title |  |
| text | Restructuring costs — Restructuring charges include costs resulting from the exploration of strategic alternatives (the “Strategic Alternatives Evaluation”) in 2019, and a plan that management initiated to reduce our general and administrative costs. Restructuring charges in 2018 also include costs related to the evaluation of potential alternatives with respect to the Qdoba brand (the “Qdoba Evaluation”), which resulted in the Qdoba Sale. Refer to Note 10, Discontinued Operations, for information regarding

Operations, for information regarding the Qdoba Sale.

The following is a summary of the costs incurred in connection with these activities during each fiscal year ( in thousands):
(1)  Strategic Alternative Evaluation costs are primarily related to third party advisory services.
(2)  Qdoba Evaluation consulting costs are primarily related to third party advisory services and retention compensation.

 |
| table | | 2019   | 2018    | 2017
------------------------------------- | ------ | ------- | ------
Employee severance and related costs  | $7,169 | $7,845  | $724
Strategic Alternatives Evaluation (1) | 1,286  | —       | —
Qdoba Evaluation (2)                  | —      | 2,211   | 2,592
Other                                 | —      | 591     | 315
                                      | $8,455 | $10,647 | $3,631 |


| _id | d1a72dc10 |
| title |  |
| text | Computer Equipment, Software, Furniture, and Leasehold Improvements, Net
Computer equipment, software, and furniture are depreciated using the straight-line method over the estimated useful lives of the assets, which range from three to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the lease term. Depreciation expense was $59.2 million in fiscal 2019, $67.6 million in fiscal 2018, and $73.1 million in fiscal 2017

Computer equipment, software, furniture, leasehold improvements and the related accumulated depreciation at January 31 were as follows:
Costs incurred for computer software developed or obtained for internal use are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and post-implementation activities. These capitalized costs are amortized over the software’s expected useful life, which is generally three years.

 |
| table | | 2019    | 2018
-------------------------------------------------------------------------------------- | ------- | -------
Computer hardware, at cost                                                             | $190.2  | $217.1
Computer software, at cost                                                             | 66.7    | 72.6
Leasehold improvements, land and buildings, at cost                                    | 247.8   | 228.9
Furniture and equipment, at cost                                                       | 67.2    | 63.4
Computer software, hardware, leasehold improvements, furniture, and equipment, at cost | 571.9   | 582.0
Less: Accumulated depreciation                                                         | (422.2) | (437.0)
Computer software, hardware, leasehold improvements, furniture, and equipment, net     | $149.7  | $145.0 |


| _id | d1b33472a |
| title |  |
| text | 11. Share-Based Compensation

As of March 31, 2019, the Company has four share-based compensation plans and an employee share purchase plan. Prior to the Company’s initial public offering (IPO) in November 2015, the Company granted share-based awards under three share option plans, which were the Mimecast Limited 2007 Key Employee Share Option Plan (the 2007 Plan), the Mimecast Limited 2010 EMI Share Option Scheme (the 2010 Plan), and the Mimecast Limited Approved Share Option Plan (the Approved Plan) (the 2007 Plan, the 2010 Plan and

Approved Plan) (the 2007 Plan, the 2010 Plan and the Approved Plan, collectively, the Historical Plans).

Upon the closing of the IPO, the Mimecast Limited 2015 Share Option and Incentive Plan (the 2015 Plan) and the 2015 Employee Share Purchase Plan (the ESPP) became effective. Subsequent to the IPO, grants of share-based awards have been made under the 2015 Plan and no further grants under the Historical Plans are permitted.

The 2015 Plan allows the compensation committee to make equity-based incentive awards to our officers, employees, non-employee directors and consultants. Initially a total of 5.5 million ordinary shares were reserved for the issuance of awards under the 2015 Plan. This number is subject to adjustment in the event of a share split, share dividend or other change in our capitalization.

The 2015 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1st by 5% of the outstanding number of ordinary shares on the immediately preceding December 31 or such lesser number of shares as determined by the board of directors.

Under the 2015 Plan, the share option price may not be less than the fair market value of the ordinary shares on the date of grant and the term of each share option may not exceed 10 years from the date of grant. Share options typically vest over 4 years, but vesting provisions can vary based on the discretion of the board of directors.

The Company settles share option exercises under the 2015 Plan through newly issued shares. The Company’s ordinary shares underlying any awards that are forfeited, canceled, withheld upon exercise of an option, or settlement of an award to cover the exercise price or tax withholding, or otherwise terminated other than by exercise will be added back to the shares available for issuance under the 2015 Plan.

Initially, a total of 1.1 million shares of the Company's ordinary shares were reserved for future issuance under the ESPP. This number is subject to change in the event of a share split, share dividend or other change in capitalization. The ESPP may be terminated or amended by the board of directors at any time.

The ESPP permits eligible employees to purchase shares by authorizing payroll deductions from 1% to 10% of his or her eligible compensation during an offering period, a duration of six months. Unless an employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase shares on the last day of the offering period at a price equal to 85% of the fair market value of the shares on the first business day or last business day of the offering period,

day or last business day of the offering period, whichever is lower.

Share-based compensation expense recognized under the 2015 Plan, Historical Plans and ESPP in the accompanying consolidated statements of operations was as follows:

In certain situations, the board of directors has approved modifications to employee share option agreements, including acceleration of vesting or the removal of exercise restrictions for share options for which the service-based vesting has been satisfied, which resulted in additional share-based compensation expense. The total modification expense in the years ended March 31, 2019, 2018 and 2017 was $3.2 million, $0.5 million and $3.0 million, respectively.

 |
| table | |         | Year ended March 31, |
-------------------------------------- | ------- | -------------------- | -------
                                       | 2019    | 2018                 | 2017
Cost of revenue                        | $1,684  | $1,053               | $1,353
Research and development               | 6,199   | 2,555                | 1,873
Sales and marketing                    | 7,856   | 4,477                | 4,719
General and administrative             | 10,215  | 3,649                | 2,349
Total share-based compensation expense | $25,954 | $11,734              | $10,294 |


| _id | d1b34e29c |
| title |  |
| text | Note 11: Property and Equipment
Property and equipment, net, consist of the following:
Depreciation expense, including amortization of capital leases, during fiscal years 2019, 2018, and 2017, was $182.1 million, $165.2 million, and $152.3 million, respectively.

 |
| table | | June 30, 2019  | June 24, 2018
----------------------------------------------- | -------------- | -------------
                                                | (in thousands) |
Manufacturing and engineering equipment         | $1,039,454     | $911,140
Building sand improvements                      | 664,061        | 530,032
Computer and computer-related equipment         | 190,974        | 182,451
Office equipment, furniture and fixtures        | 82,115         | 66,378
Land                                            | 46,155         | 46,155
                                                | 2,022,759      | 1,736,156
Less: accumulated depreciation and amortization | (963,682)      | (833,609)
                                                | $1,059,077     | $902,547 |


| _id | d1b32b440 |
| title |  |
| text | Note 10. Intangible Assets and Goodwill
Intangible assets consist of the following (in millions):

 |
| table | |              | March 31, 2019           |
----------------------------------- | ------------ | ------------------------ | ----------
                                    | Gross Amount | Accumulated Amortization | Net Amount
Core and developed technology       | $7,413.0     | $(1,112.9)               | $6,300.1
Customer-related                    | 917.1        | (544.0)                  | 373.1
In-process research and development | 7.7          | —                        | 7.7
Distribution rights                 | 0.3          | (0.2)                    | 0.1
Other                               | 7.3          | (2.7)                    | 4.6
Total                               | $8,345.4     | $(1,659.8)               | $6,685.6 |


| _id | d1b3029aa |
| title |  |
| text | FY19 EAIP Payout Results:
(1) Calculated in FY19 plan exchange rates and excludes stock-based compensation expense, charges related to the amortization of intangible assets, restructuring, separation, transition and other related expenses, contract liabilities fair value adjustment, acquisition-related costs and certain litigation settlement gains.
(2) Calculated in FY19 plan exchange rates and excludes contract liabilities fair value adjustment.

 |
| table | Weighted Average Company Performance Funding |                       |                         |                       |                       |
-------------------------------------------- | --------------------- | ----------------------- | --------------------- | --------------------- | -----------
Company Performance Metric                   | Target ($) (millions) | Threshold ($)(millions) | Actual ($) (millions) | Threshold Funding (%) | Funding (%)
Non-GAAP Operating Income                    | 1,630                 | 1,428                   | 1,427(1)              | 40                    | 0.0
Non-GAAP Revenue                             | 4,943                 | 4,760                   | 4,804(2)              | 40                    | 71.2
FY19 Funding                                 | .                     | .                       | .                     | .                     | 35.6 |


| _id | d1b3bb36a |
| title |  |
| text | 35 Related party transactions (continued)
Balances outstanding between the Group and members of Peel at 31 December 2019 and 31 December 2018 are shown below:
Under the terms of the Group’s acquisition of intu Trafford Centre from Peel in 2011, Peel has provided a guarantee in respect of Section 106 planning obligation liabilities at Barton Square which at 31 December 2019 totalled £13.0 million (2018: £12.4 million).

The net investment in finance leases above relate to three advertising services agreements related to digital screens with Peel Advertising Limited (a member of Peel) under which Peel will procure advertising on behalf of the Group. The minimum fixed payments in these agreements have been classified as a finance lease.

During the year intu shareholders approved, at a General Meeting held on 31 May 2019, the sale to the Peel Group of a 30.96 acre site near intu Braehead known as King George V docks (West) and additional plots of adjacent ancillary land for cash consideration of £6.1 million.
Other transactions

Other transactions
During the year, the Group sold a wholly owned subsidiary, which holds a plot of sundry land near intu Xanadú, to the intu Xanadú joint venture for consideration of £8.6 million. Consideration includes cash consideration of £4.3 million and a retained interest in the entity through the intu Xanadú joint venture. The cash flow statement records a net inflow of £4.0 million comprising the cash consideration less cash in the business of £0.3 million.

 |
| table | £m                              | 2019  | 2018
------------------------------- | ----- | -----
Net investment in finance lease | 0.8   | 1.2
Amounts owed by members of Peel | 0.3   | 0.3
Amounts owed to members of Peel | (0.1) | (0.1) |


| _id | d1b31e8d0 |
| title |  |
| text | DEVELOPMENT OF GROSS DOMESTIC PRODUCT IN IMPORTANT WORLD REGIONS AND GERMANY
Year-on-year change in %
Real GDP growth corrected for purchasing power. Source: Oxford Economics
1 The previous year’s figures may slightly deviate from the Annual Report 2017/18, since retrospective corrections are being made by the data provider.
2 Outlook.

 |
| table | | 20181 | 20192
----------------------------- | ----- | -----
World                         | 3.6   | 2.9
Germany                       | 1.5   | 0.6
Western Europe (excl.Germany) | 1.9   | 1.3
Russia                        | 2.3   | 1.1
Eastern Europe (excl.Russia)  | 4.1   | 3.6
Asia                          | 5.6   | 4.9 |


| _id | d1b3ad8aa |
| title |  |
| text | Stock option and stock appreciation right (SAR) activity under the Company's stock incentive plans in the three years ended March 31, 2019 is set forth below:
The total intrinsic value of options and SARs exercised during the years ended March 31, 2019, 2018 and 2017 was $8.3 million, $7.4 million and $9.6 million, respectively. This intrinsic value represents the difference between the fair market value of the Company's common stock on the date of exercise and the exercise price of each equity award.

The aggregate intrinsic value of options and SARs outstanding at March 31, 2019 was $14.9 million. The aggregate intrinsic value of options and SARS exercisable at March 31, 2019 was $14.8 million. The aggregate intrinsic values were calculated based on the closing price of the Company's common stock of $82.96 per share on March 29, 2019.

As of March 31, 2019 and March 31, 2018, the number of option and SAR shares exercisable was 278,591 and 224,022, respectively, and the weighted average exercise price per share was $30.03 and $29.96, respectively.
There were no stock options granted in the years ended March 31, 2019, 2018 and 2017

 |
| table | | Number of Shares | Weighted Average Exercise Price per Share
----------------------------- | ---------------- | -----------------------------------------
Outstanding at March 31, 2016 | 913,508          | $33.00
Exercised                     | (437,906)        | 34.34
Forfeited or expired          | (42,485)         | 34.26
Outstanding at March 31, 2017 | 433,117          | 31.51
Exercised                     | (131,666)        | 31.75
Forfeited or expired          | (17,111)         | 34.73
Outstanding at March 31, 2018 | 284,340          | 31.21
Assumed upon acquisition      | 141,751          | 25.86
Exercised                     | (140,118)        | 27.67
Forfeited or expired          | (4,091)          | 39.62
Outstanding at March 31, 2019 | 281,882          | $30.16 |


| _id | d1b3813b8 |
| title |  |
| text | Restricted Stock Grants—During 2019 and 2018, the Company granted 0.321 and 0.410 shares, respectively, of restricted stock to certain employee and director participants under its share-based compensation plans. Restricted stock grants generally vest over a period of 1 to 4 years. The Company recorded $72.5, $109.7 and $63.0 of compensation expense related to outstanding shares of restricted stock held by employees and directors during 2019, 2018 and 2017, respectively. In 2018, this expense included $29.4

In 2018, this expense included $29.4 associated with accelerated vesting due to the passing of our former executive chairman. A summary of the Company’s nonvested shares activity for 2019 and 2018 is as follows:

At December 31, 2019, there was $77.9 of total unrecognized compensation expense related to nonvested awards granted to both employees and directors under the Company’s share-based compensation plans. That cost is expected to be recognized over a weighted-average period of 1.8 years. Unrecognized compensation expense related to nonvested shares of restricted stock grants is recorded as a reduction to additional paid-in capital in stockholder’s equity at December 31, 2019.

Employee Stock Purchase Plan—During 2019, 2018 and 2017, participants of the ESPP purchased 0.021, 0.020 and 0.020 shares, respectively, of Roper’s common stock for total consideration of $6.8, $5.4, and $4.2, respectively. All of these shares were purchased from Roper’s treasury shares.

 |
| table | | Number of shares | Weighted-average grant date fair value
------------------------------ | ---------------- | --------------------------------------
Nonvested at December 31, 2017 | 0.859            | $ 187.01
Granted                        | 0.410            | 278.29
Vested                         | (0.492)          | 204.24
Forfeited                      | (0.038)          | 191.51
Nonvested at December 31, 2018 | 0.739            | $ 225.93
Granted                        | 0.321            | 318.75
Vested                         | (0.290)          | 209.05
Forfeited                      | (0.061)          | 225.23
Nonvested at December 31, 2019 | 0.709            | $ 275.00 |


| _id | d1b330f9e |
| title |  |
| text | Other non-current assets
Other non-current assets consisted of the following:
* As adjusted to reflect the impact of the full retrospective adoption of IFRS 15. See Note 2 for further details.

As of June 30, 2019 and 2018, the Group had certificates of deposit and time deposits totaling $3.7 million and $3.7 million which were classified as long-term and were included in security deposits. Included in the Group’s other non-current assets balance as of June 30, 2019 and 2018 were $7.1 million and $6.6 million respectively, of restricted cash used for commitments of standby letters of credit related to facility leases and were not available for the Group’s use in its operations.

 |
| table | | As of June 30,        |
-------------------------------- | --------------------- | ------------
                                 | 2019                  | 2018
                                 | (U.S. $ in thousands) |
                                 |                       | *As Adjusted
Marketable equity securities     | $58,932               | $—
Non-marketable equity securities | 3,000                 | —
Security deposits                | 5,010                 | 5,248
Other                            | 9,703                 | 8,218
                                 | $76,645               | $13,466 |


| _id | d1a71e1e8 |
| title |  |
| text | Cash Flows
Operating Activities: For 2019, cash provided by operating activities was due primarily to cash generated by our operations and the effect of working capital adjustments, which included a $2.43 billion decrease in receivables due to a lower level of net sales and a $1.53 billion increase in inventory due to higher levels of work in process and raw materials inventories.

For 2018, cash provided by operating activities was due primarily to cash generated by our operations and the effect of working capital adjustments, which included a $1.73 billion increase in receivables due to a higher level of net sales.

For 2017, cash provided by operating activities was due primarily to cash generated by our operations and the effect of working capital adjustments, which included a $1.65 billion increase in receivables due to a higher level of net sales, $361 million of payments attributed to intercompany balances in connection with the Inotera Acquisition, and a $456 million increase in accounts payable and accrued expenses.

Investing Activities: For 2019, net cash used for investing activities consisted primarily of $9.03 billion of expenditures for property, plant, and equipment (net of partner contributions) and $1.17 billion of net outflows from sales, maturities, and purchases of available-for-sale securities.

For 2018, net cash used for investing activities consisted primarily of $7.99 billion of expenditures for property, plant, and equipment (net of partner contributions), partially offset by $164 million of net inflows from sales, maturities, and purchases of available-for-sale securities.

For 2017, net cash used for investing activities consisted primarily of $4.73 billion of expenditures for property, plant, and equipment (net of partner contributions), $2.63 billion of net cash paid for the Inotera Acquisition (net of $361 million of payments attributed to intercompany balances with Inotera included in operating activities), and $269 million of net outflows from sales, maturities, and purchases of available-for-sale securities.

Financing Activities: For 2019, net cash used for financing activities consisted primarily of $2.66 billion for the acquisition of 67 million shares of treasury stock under our $10 billion share repurchase authorization and cash payments to reduce our debt, including $1.65 billion to settle conversions of notes, $728 million to prepay the 2022 Term Loan B, $316 million for IMFT member debt repayments, and $643 million for scheduled repayment of other notes and capital leases. Cash used for financing

notes and capital leases. Cash used for financing activities was partially offset by net proceeds of $3.53 billion from the aggregate issuance of the 2024 Notes, 2026 Notes, 2027 Notes, 2029 Notes, and 2030 Notes.

For 2018, net cash used for financing activities consisted primarily of cash payments to reduce our debt, including $9.42 billion to prepay or repurchase debt and settle conversions of notes and $774 million for scheduled repayment of other notes and capital leases. Cash used for financing activities was partially offset by net proceeds of $1.36 billion from the issuance of 34 million shares of our common stock for $41.00 per share in a public offering and $1.01 billion of proceeds from IMFT member debt.

For 2017, net cash provided by financing activities consisted primarily of $2.48 billion of net proceeds from the 2021 MSTW Term Loan, and $795 million of net proceeds from the 2021 MSAC Term Loan, partially offset by $1.63 billion to repurchase notes, repayments of $381 million of capital lease obligations, repayments of $550 million of other debt and convertible notes, and payments of $519 million on equipment purchase contracts.

See "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Debt."

 |
| table | For the year ended                                                                          | 2019     | 2018    | 2017
------------------------------------------------------------------------------------------- | -------- | ------- | -------
Net cash provided by operating activities                                                   | $13,189  | $17,400 | $8,153
Net cash provided by (used for) investing activities                                        | (10,085) | (8,216) | (7,537)
Net cash provided by (used for) financing activities                                        | (2,438)  | (7,776) | 349
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash | 26       | (37)    | (12)
Net increase in cash, cash equivalents, and restricted cash                                 | $692     | $1,371  | $953 |


| _id | d1a72b258 |
| title |  |
| text | Impairment test for goodwill
Goodwill is allocated to the appropriate cash-generating unit (‘CGU’) based on the smallest identifiable group of assets that generates cash inflows independently in relation to the specific goodwill. The recoverable amount of the CGU is determined from value-in-use calculations that use cash flow projections from the latest three-year plan. The carrying value of CGUs is the sum of goodwill, property, plant and equipment and intangibles and is as follows:

 |
| table | | 2019  | (Restated) 2018
------- | ----- | ---------------
        | £m    | £m
Digital | 327.6 | 342.6
Webzone | 6.6   | 6.9
Total   | 334.2 | 349.5 |


| _id | d1a717c44 |
| title |  |
| text | 7. LOANS PAYABLE

Plan B, a subsidiary of the Company, entered into a business loan agreement, prior to being acquired by the Company, with Tri Counties Bank dated March 14, 2014, in the original amount of $131 bearing interest at 4.95%. The loan agreement called for monthly payments of $2 and was scheduled to mature on March 14, 2019. Proceeds from the loan were used to purchase a pile driver and related equipment and is secured by the equipment. The loan was fully paid off during the year ended December 31, 2019.

Plan B entered into a business loan agreement prior to being acquired by the Company, with Tri Counties Bank dated April 9, 2014, in the original amount of $250 bearing interest at 4.95%. The loan agreement calls for monthly payments of $5 and was scheduled to mature on April 9, 2019. Proceeds from the loan were used to purchase racking inventory and related equipment. The loan was secured by the inventory and equipment. The loan was fully paid off during the year ended December 31, 2019.

On January 5, 2016, the Company entered into a loan agreement for the acquisition of a pile driver in the principal amount of $182 bearing interest at 5.5%. The loan agreement calls for monthly payments of $4 and is scheduled to mature on January 15, 2020. The loan is secured by the equipment. The outstanding balance at December 31, 2019, is $4.

On September 8, 2016, the Company entered into a loan agreement for the acquisition of a pile driver in the principal amount of $174 bearing interest at 5.5%. The loan agreement calls for monthly payments of $4 and is scheduled to mature on September 15, 2020. The loan is secured by the equipment. The outstanding balance at December 31, 2019, is $36.

On November 14, 2016, the Company entered into a 0% interest loan agreement for the acquisition of an excavator in the principal amount of $59. The loan agreement calls for monthly payments of $1 and is scheduled to mature on November 13, 2020. The loan is secured by the equipment. The outstanding balance at December 31, 2019, is $13.

On December 23, 2016, the Company entered into a loan agreement for the acquisition of modular office systems and related furniture in the principal amount of $172 bearing interest at 4.99%. The loan agreement calls for 16 quarterly payments of $12 and is scheduled to mature in September 2020. The loan is secured by the equipment. The outstanding balance at December 31, 2019, is $35.
As of December 31, 2019 and 2018, loans payable are summarized as follows:

 |
| table | | 2019 | 2018
-------------------------------------------- | ---- | -----
Business loan agreement dated March 14, 2014 | -    | 7
Business loan agreement dated April 9, 2014  | -    | 19
Equipment notes payable                      | 88   | 241
Subtotal                                     | 88   | 267
Less: Current position                       | (88) | (179)
Long-term position                           | -    | $88 |


| _id | d1b38301e |
| title |  |
| text | DEBT DERIVATIVES

We use cross-currency interest rate agreements (debt derivatives) to manage risks from fluctuations in foreign exchange rates associated with our US dollar-denominated senior notes and debentures, lease liabilities, credit facility borrowings, and US CP borrowings. We designate the debt derivatives related to our senior notes and debentures and lease liabilities as hedges for accounting purposes against the foreign exchange risk associated with specific debt instruments. Debt derivatives related to our

debt instruments. Debt derivatives related to our credit facility and US CP borrowings have not been designated as hedges for accounting purposes.

1 Converting from a fixed US$ coupon rate to a weighted average Cdn$ fixed rate.
Settlement of debt derivatives related to senior notes We did not settle any debt derivatives related to senior notes during 2019.
In April 2018, we settled the debt derivatives related to the repayment of the entire outstanding principal amount of our US$1.4 billion ($1.8 billion) 6.8% senior notes otherwise due in August 2018. See “Sources and Uses of Cash” for more information.

 |
| table | |                                  | US$           |             | Hedging effect                      |
-------------------------------------------------------------- | -------------------------------- | ------------- | ----------- | ----------------------------------- | -----------------
(In millions of dollars, except interest rates) Effective date | Principal/ Notional amount (US$) | Maturity date | Coupon rate | Fixed hedged (Cdn$) interest rate 1 | Equivalent (Cdn$)
2019 issuances                                                 |                                  |               |             |                                     |
April 30, 2019                                                 | 1,250                            | 2049          | 4.350%      | 4.173%                              | 1,676
November 12, 2019                                              | 1,000                            | 2049          | 3.700%      | 3.996%                              | 1,308
2018 issuances                                                 |                                  |               |             |                                     |
February 8, 2018                                               | 750                              | 2048          | 4.300%      | 4.193%                              | 938 |


| _id | d1b3b65b8 |
| title |  |
| text | The following table sets forth, for the periods indicated, our working capital:
Working Capital consists of current assets net of current liabilities. Working capital decreased $0.4 million to $12.3 million at December 31, 2019 compared with $12.7 million at December 31, 2018. The decrease was primarily a result of an increase of cash, accounts receivable, and inventory offset by an increase in accounts payable, accrued expenses and current operating lease liabilities.

We normally carry three to four weeks of finished goods inventory. The average duration of our accounts receivable is approximately 25 days.

For the year ended December 31, 2019 our capital resources consisted of primarily $9.5 million cash on hand and $33.0 million available under our credit facilities, net of $2.0 million reserved for two letters of credit. For the year ended December 31, 2018, our capital resources consisted primarily of $7.5 million cash on hand and $30.0 million available under our credit facilities. The Credit Facilities will mature in May 2024.

We borrowed $72.3 million under our credit facilities during 2019, of which $18.5 million was repaid prior to the end of the year. As of December 31, 2019, we had $54.5 million of debt outstanding (including $0.7 million of debt issuance costs) under our credit facilities. There was no debt outstanding under the credit facilities as of December 31, 2018.

 |
| table | | For the Twelve Months Ended December 31, |
----------------------------------------------------------- | ---------------------------------------- | -------
                                                            | 2019                                     | 2018
                                                            | (Dollars in thousands)                   |
Cash and cash equivalents                                   | 9,472                                    | 7,554
Accounts receivable, net of allowance for doubtful accounts | 18,581                                   | 12,327
Inventories, net                                            | 12,542                                   | 9,317
Prepaid expenses                                            | 3,276                                    | 1,078
Other current assets                                        | 10,453                                   | 682
Accounts payable                                            | (18,668)                                 | (9,166)
Accrued expenses                                            | (22,133)                                 | (9,051)
Current operating lease liabilities                         | (1,185)                                  | —
Total Working Capital                                       | $12,338                                  | $12,741 |