| _id | d1a71ea1c |
| title |  |
| text | Property and equipment, net by geographic location consists of the following:
(1) Includes amounts capitalized related to the Company’s U.S. build-to-suit facility of $41.8 million and $39.4 million as of March 31, 2019 and 2018, respectively.

(2) Includes amounts capitalized related to the Company’s U.K. build-to-suit facility of $31.2 million as of March 31, 2018. In March 2019, the Company derecognized the U.K. build-to-suit facility upon substantial completion of construction. See Note 12 for further details.

 |
| table | | As of March 31, |
-------------------- | --------------- | --------
                     | 2019            | 2018
United States (1)    | $62,455         | $62,064
United Kingdom (2)   | 17,402          | 46,664
South Africa         | 6,170           | 6,512
Australia            | 3,481           | 3,953
Other                | 4,694           | 4,629
Total                | $94,202         | $123,822 |


| _id | d1a71fc46 |
| title |  |
| text | (iii) Contract balances
Increases in the balance of accrued and unearned revenue during the year relate to the acquisition of Sigma Systems (refer to Note 24). Additionally, the increase in accrued revenue was a result of software licences deployed on contract inception but have yet to be billed to the customer.

Revenues recognised in the current reporting period that was included in deferred revenue at the beginning of the reporting period was $22,251,000, representing support and maintenance performed during the period.

 |
| table | | 2019   | 2018
---------------- | ------ | ------
                 | $’000  | $’000
Accrued revenue  | 27,817 | 5,824
Unearned revenue | 27,069 | 22,914 |


| _id | d1b306f28 |
| title |  |
| text | 24. Operating lease commitments
The Group has lease agreements in respect of property, plant and equipment, for which future minimum payments extend over a number of years.

Leases primarily relate to the Group’s properties, which principally comprise offices and factories. Lease payments are typically subject to market review every five years to reflect market rentals, but because of the uncertainty over the amount of any future changes, such changes have not been reflected in the table below. Within our leasing arrangements there are no significant contingent rental, renewal, purchase or escalation clauses.

The future aggregate minimum lease payments under non-cancellable operating leases for continuing operations are as follows:

The Group has made provision for the aggregate minimum lease payments under non-cancellable operating leases. The Group sub-lets various properties under non-cancellable lease arrangements. Sub-lease receipts of £0.2m (2017/18: £0.2m) were recognised in the statement of profit or loss during the period. The total future minimum sub-lease payments at the period end is £0.2m (2017/18: £0.2m).

 |
| table | | As at 30 Mar 2019 |                     | As at 31 Mar 2018 |
--------------------- | ----------------- | ------------------- | ----------------- | -------------------
                      | Property          | Plant and Equipment | Property          | Plant and Equipment
                      | £m                | £m                  | £m                | £m
Within one year       | 1.8               | 1.3                 | 2.5               | 1.8
Between 2 and 5 years | 6.3               | 2.4                 | 5.3               | 1.9
After 5 years         | 6.0               | 0.5                 | 9.4               | –
Total                 | 14.1              | 4.2                 | 17.2              | 3.7 |


| _id | d1b32f04a |
| title |  |
| text | Note 23 Other (Expense) Income, net
The following table provides details of other (expense) income, net:
(1) Cryovac Brasil Ltda., a Sealed Air subsidiary, received a final decision from the Brazilian court regarding a claim in which Sealed Air contended that certain indirect taxes paid were calculated on an incorrect amount. As a result, for the year ended December 31, 2019, we recorded income of $4.8 million to Other, net for a claim of overpaid taxes related to 2015 through 2018.

 |
| table | |          | Year Ended December 31, |
-------------------------------------------------- | -------- | ----------------------- | -------
(In millions)                                      | 2019     | 2018                    | 2017
Net foreign exchange transaction loss              | $ (7.7)  | $ (16.7)                | $ (5.9)
Bank fee expense                                   | (5.0)    | (4.4 )                  | (5.8)
Pension income other than service costs            | 1.0      | 3.9                     | 16.7
Loss on debt redemption and refinancing activities | (16.1)   | (1.9 )                  | —
Other, net(1)                                      | 8.3      | 1.0                     | 1.2
Other (expense) income, net                        | $ (19.5) | $ (18.1)                | $ 6.2 |


| _id | d1b39f28c |
| title |  |
| text | Interest in associates
*Included within share of profit from associates is $1,917,000 representing NSR’s share of fair value gains related to investment properties held by joint ventures and associates (30 June 2018: $1,383,000).
The Group owns 24.9% (2018: 24.9%) of the Australia Prime Storage Fund (“APSF”). APSF is a partnership with Universal Self Storage to facilitate the development and ownership of multiple premium grade selfstorage centres in select cities around Australia.

During the year ended 30 June 2019, National Storage (Operations) Pty Ltd earned fees of $0.8m from APSF associated with the design, development, financing of the construction process, and ongoing management of centres (see note 17) (30 June 2018: $0.7m).
As at 30 June 2019, APSF had two operating centres in Queensland, Australia, with a third asset under construction in Victoria, Australia.

Following the financial year end, on 26 July 2019, the Group purchased two storage centre investment properties from APSF for $42.6m, and reached an agreement to purchase a third asset for $21.35m on completion of construction (see note 23). During the year ended 30 June 2018, the Group purchased a storage centre investment property asset in Queensland, Australia from APSF for $14m.

As at 30 June 2019, APSF had contractual commitments of $2.8m in place for the construction of one storage centre in Victoria, Australia. Neither associate had any contingent liabilities or any other capital commitments at 30 June 2019 or 30 June 2018. As at 30 June 2019, APSF had contractual commitments of $2.8m in place for the construction of one storage centre in Victoria, Australia. Neither associate had any contingent liabilities or any other capital commitments at 30 June 2019 or 30 June 2018.

The Group holds a 24% (30 June 2018: 24.8%) holding in Spacer Marketplaces Pty Ltd (“Spacer”). Spacer operate online peer-to-peer marketplaces for self-storage and parking.

 |
| table | | 2019   | 2018
---------------------------------------------------------------- | ------ | -------
                                                                 | $'000  | $'000
Opening balance at 1 July                                        | 10,693 | 8,611
Capital contribution / acquisition of shareholding in associates | -      | 2,048
Share of profit from associates*                                 | 1,695  | 1,282
Distributions from associate                                     | -      | (1,248)
Closing balance at 30 June                                       | 12,388 | 10,693 |


| _id | d1b37e47e |
| title |  |
| text | 6. Inventories
Inventories consisted of the following:

 |
| table | |         | Fiscal Year End
---------------- | ------- | ---------------
                 | 2019    | 2018
                 |         | (in millions)
Raw materials    | $  260  | $  276
Work in progress | 739     | 656
Finished goods   | 837     | 925
Inventories      | $ 1,836 | $  1,857 |


| _id | d1b36b180 |
| title |  |
| text | Revenue
We manage our business on a geographic basis, organized into three geographic segments. Our revenue, which includes product and service for each segment, is summarized in the following table (in millions, except percentages):
Amounts may not sum and percentages may not recalculate due to rounding.

Total revenue in fiscal 2019 increased by 5% compared with fiscal 2018. Product revenue increased by 6% and service revenue increased by 2%. Our total revenue reflected growth across each of our geographic segments. Product revenue for the BRICM countries, in the aggregate, experienced 1% product revenue decline, driven by a 16% decrease in product revenue in China and a decrease of 1% in Brazil. These decreases were partially offset by increased product revenue in Mexico, Russia and India of 26%, 6% and

in Mexico, Russia and India of 26%, 6% and 5%, respectively.

In addition to the impact of macroeconomic factors, including a reduced IT spending environment and reductions in spending by government entities, revenue by segment in a particular period may be significantly impacted by several factors related to revenue recognition, including the complexity of transactions such as multiple performance obligations; the mix of financing arrangements provided to channel partners and customers; and final acceptance of the product, system, or solution, among other factors.

system, or solution, among other factors. In addition, certain customers tend to make large and sporadic purchases, and the revenue related to these transactions may also be affected by the timing of revenue recognition, which in turn would impact the revenue of the relevant segment.

 |
| table | |               | Years Ended   |               | 2019 vs. 2018       |
--------------------- | ------------- | ------------- | ------------- | ------------------- | -------------------
                      | July 27, 2019 | July 28, 2018 | July 29, 2017 | Variance in Dollars | Variance in Percent
Revenue:              |               |               |               |                     |
Americas              | $ 30,927      | $ 29,070      | $28,351       | $1,857              | 6%
Percentage of revenue | 59.6%         | 58.9%         | 59.1%         |                     |
EMEA                  | 13,100        | 12,425        | 12,004        | 675                 | 5%
Percentage of revenue | 25.2%         | 25.2%         | 25.0%         |                     |
APJC                  | 7,877         | 7,834         | 7,650         | 43                  | 1%
Percentage of revenue | 15.2%         | 15.9%         | 15.9%         |                     |
Total                 | $51,904       | $49,330       | $48,005       | $2,574              | 5% |


| _id | d1b2f8c2a |
| title |  |
| text | At December 31, 2019 and 2018, $21 million and $20 million, respectively, of unrecognized tax benefits were classified as a reduction of deferred tax assets. The finalisation in the fourth quarter of 2018 of pending tax litigations triggered the reversal of uncertain tax positions in major tax jurisdictions for a total amount of $310 million.

It is reasonably possible that certain of the uncertain tax positions disclosed in the table above could increase within the next 12 months due to ongoing tax audits. The Company is not able to make an estimate of the range of the reasonably possible change.

Additionally, the Company elected to classify accrued interest and penalties related to uncertain tax positions as components of income tax expense in the consolidated statements of income, they were less than $1 million in 2019, $1 million in 2018, less than $1 million in 2017, $1 million in 2016, $1 million in 2015, $27 million in 2014 and not material in the previous years. Accrued interest and penalties amounted to $6 million at December 31, 2019 and $5 million at December 31, 2018.

The tax years that remain open for review in the Company’s major tax jurisdictions, including France, Italy, United States and India, are from 1997 to 2019.

 |
| table | | December 31, 2019 | December 31, 2018 | December 31, 2017
------------------------------------------------------------ | ----------------- | ----------------- | -----------------
Balance at beginning of year                                 | 38                | 333               | 258
Additions based on tax positions related to the current year | 7                 | 43                | 43
Additions based on acquisitions related to the current year  | 5                 | —                 | —
Additions for tax positions of prior years                   | 1                 | 8                 | 12
Reduction for tax positions of prior years                   | (1)               | (310)             | (9)
Settlements                                                  | (2)               | (18)              | (2)
Prepayment / Refund                                          | —                 | —                 | —
Reductions due to lapse of statute of limitations            | —                 | —                 | —
Foreign currency translation                                 | —                 | (18)              | 31
Balance at end of year                                       | 48                | 38                | 333 |


| _id | d1b361b12 |
| title |  |
| text | 5. Goodwill and Purchased Intangible Assets
(b) Purchased Intangible Assets
The following table presents the amortization of purchased intangible assets (in millions):

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


| _id | d1b2f6ad8 |
| title |  |
| text | (1) Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections.
(2) The non-controlling interest represents a participation of 21% in Atlantic Broadband's results by Caisse de dépot et placement du Québec ("CDPQ"), effective since the MetroCast acquisition on January 4, 2018.

Fiscal 2019 fourth-quarter profit for the period from continuing operations and profit for the period from continuing operations attributable to owners of the Corporation increased by 21.8% and 20.8%, respectively, as a result of: • higher adjusted EBITDA; and • the decrease in financial expense.

Fiscal 2019 fourth-quarter profit for the period and profit for the period attributable to owners of the Corporation increased by 26.1% and 25.2%, respectively, mainly due to a profit for the period from discontinued operations of $1.9 million due to working capital adjustments during the fourth quarter related to the sale of Cogeco Peer 1 compared to a loss for the period from discontinued operations of $1.1 million for the comparable period of the prior year in addition to the elements mentioned above.

 |
| table | Three months ended August 31,                                                                | 2019   | 2018(2) | Change
-------------------------------------------------------------------------------------------- | ------ | ------- | ------
(in thousands of dollars, except percentages and earnings per share)                         | $      | $       | %
Profit for the period from continuing operations                                             | 92,403 | 75,870  | 21.8
Profit for the period                                                                        | 94,323 | 74,818  | 26.1
Profit for the period from continuing operations attributable to owners of the Corporation   | 87,850 | 72,753  | 20.8
Profit for the period attributable to owners of the Corporation                              | 89,770 | 71,701  | 25.2
Profit for the period from continuing operations attributable to non-controlling interest(2) | 4,553  | 3,117   | 46.1
Basic earnings per share from continuing operations                                          | 1.78   | 1.48    | 20.3
Basic earnings per share                                                                     | 1.82   | 1.45    | 25.5 |


| _id | d1b3b762a |
| title |  |
| text | Deferred income taxes on the Consolidated Balance Sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The principal components of our current and non-current deferred taxes were as follows:

In December 2017, the Tax Cuts and Jobs Act (“the Act”) was signed into law. As a result of the Act, we recognized an estimated expense of $11.9 million in the fourth quarter of 2017, of which $9.2 million related to the writedown of deferred tax assets and $2.7 million related to tax on unrepatriated foreign earnings. We calculated our best estimate of the impact of the Act in our 2017 year-end income tax provision in accordance with Staff Accounting Bulletin No. 118, which was issued to address the

Bulletin No. 118, which was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed to finalize the accounting for certain income tax effects of the Act. Additional work to complete a more detailed analysis of historical foreign earnings, as well as the full impact relating to the write-down of deferred tax assets, was completed in the third quarter of 2018 and resulted in a tax benefit of $4.0 million for the

resulted in a tax benefit of $4.0 million for the year ended December 31, 2018.

As of December 31, 2019 and 2018, non-current deferred taxes related to our investments and our defined benefit pension plan reflect deferred taxes on the net unrealized gains and losses on available-for-sale investments and deferred taxes on unrealized losses in our pension plan. The net change in non-current deferred taxes associated with these items, which resulted in a deferred tax benefit of $0.4 million and $2.8 million in 2019 and 2018, respectively, was recorded as an adjustment to other

was recorded as an adjustment to other comprehensive income (loss), presented in the Consolidated Statements of Comprehensive Income (Loss).

The Company continually reviews the adequacy of our valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be realized in accordance with ASC 740, Income Taxes. Due to our recent decrease in revenue and profitability for 2019, and all other positive and negative objective evidence considered as part of our analysis, our ability to consider other subjective evidence such as projections for

other subjective evidence such as projections for future growth is limited when evaluating whether our deferred tax assets will be realized. As such, the Company was no longer able to conclude that it was more likely than not that our domestic deferred tax assets would be realized and a valuation allowance against our domestic deferred tax assets was established in the third quarter of 2019. The amount of the deferred tax assets considered realizable may be adjusted in future periods in the event that

be adjusted in future periods in the event that sufficient evidence is present to support a conclusion that it is more likely than not that all or a portion of our domestic deferred tax assets will be realized.

As of December 31, 2019, the Company had gross deferred tax assets totaling $56.2 million offset by a valuation allowance totaling $48.6 million. Of the valuation allowance, $42.8 million was established in the current year primarily related to our domestic deferred tax assets. The remaining $5.8 million established in prior periods related to state research and development credit carryforwards and foreign net operating loss and research and development credit carryforwards where we lack sufficient

credit carryforwards where we lack sufficient activity to realize those deferred tax assets. The remaining $7.6 million in deferred tax assets that were not offset by a valuation allowance are located in various foreign jurisdictions where the Company believes it is more likely than not we will realize these deferred tax assets.

 |
| table | (In thousands)                                                      | 2019     | 2018
------------------------------------------------------------------- | -------- | --------
Deferred tax assets                                                 |          |
Inventory                                                           | $7,144   | $6,609
Accrued expenses                                                    | 2,330    | 2,850
Investments                                                         | —        | 1,122
Deferred compensation                                               | 5,660    | 4,779
Stock-based compensation                                            | 2,451    | 3,069
Uncertain tax positions related to state taxes and related interest | 241      | 326
Pensions                                                            | 7,074    | 5,538
Foreign losses                                                      | 2,925    | 3,097
State losses and credit carry-forwards                              | 3,995    | 8,164
Federal loss and research carry-forwards                            | 12,171   | 17,495
Lease liabilities                                                   | 2,496    | —
Capitalized research and development expenditures                   | 22,230   | —
Valuation allowance                                                 | (48,616) | (5,816)
Total Deferred Tax Assets                                           | 20,101   | 47,233
Deferred tax liabilities                                            |          |
Property, plant and equipment                                       | (2,815)  | (3,515)
Intellectual property                                               | (5,337)  | (6,531)
Right of use lease assets                                           | (2,496)  | —
Investments                                                         | (1,892)  | —
Total Deferred Tax Liabilities                                      | (12,540) | (10,046)
Net Deferred Tax Assets                                             | $7,561   | $37,187 |


| _id | d1b378880 |
| title |  |
| text | CONTRACTUAL OBLIGATIONS
The following table summarizes our significant financial contractual obligations at January 31, 2019, and the effect such obligations are expected to have on our liquidity and cash flows in future periods.

(1) This table generally excludes amounts already recorded on the balance sheet as current liabilities, certain purchase obligations as discussed below, long term deferred revenue, and amounts related to income tax liabilities for uncertain tax positions, since we cannot predict with reasonable reliability the timing of cash settlements to the respective taxing authorities (see Part II, Item 8, Note 5, “Income Taxes” in the Notes to Consolidated Financial Statements).

Notes consist of the Notes issued in December 2012, June 2015 and June 2017. See Part II, Item 8, Note 8, "Borrowing Arrangements," in the Notes to Consolidated Financial Statements for further discussion..
Term loan consists of the Term Loan Agreement entered into on December 17, 2018 as described above.
Operating lease obligations consist primarily of obligations for facilities, net of sublease income, computer equipment and other equipment leases

Purchase obligations are contractual obligations for purchase of goods or services and are defined as agreements that are enforceable and legally binding on Autodesk and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. Purchase obligations relate primarily to enterprise subscription agreements, IT infrastructure costs, and marketing costs

Deferred compensation obligations relate to amounts held in a rabbi trust under our non-qualified deferred compensation plan. See Part II, Item 8, Note 7, “Deferred Compensation,” in our Notes to Consolidated Financial Statements for further information regarding this plan.

Pension obligations relate to our obligations for pension plans outside of the U.S. See Part II, Item 8, Note 15, “Retirement Benefit Plans,” in our Notes to Consolidated Financial Statements for further information regarding these obligations.
Asset retirement obligations represent the estimated costs to bring certain office buildings that we lease back to their original condition after the termination of the lease

Purchase orders or contracts for the purchase of supplies and other goods and services are not included in the table above. We are not able to determine the aggregate amount of such purchase orders that represent contractual obligations, as purchase orders may represent authorizations to purchase rather than binding agreements. Our purchase orders are based on our current procurement or development needs and are fulfilled by our vendors within short time horizons. We do not have significant agreements for

We do not have significant agreements for the purchase of supplies or other goods specifying minimum quantities or set prices that exceed our expected requirements for three months. In addition, we have certain software royalty commitments associated with the shipment and licensing of certain products.

The expected timing of payment of the obligations discussed above is estimated based on current information. Timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed upon amounts for some obligations.

We provide indemnifications of varying scopes and certain guarantees, including limited product warranties. Historically, costs related to these warranties and indemnifications have not been significant, but because potential future costs are highly variable, we are unable to estimate the maximum potential impact of these guarantees on our future results of operations

 |
| table | | Total    | Fiscal year 2020 | Fiscal years 2021-2022 | Fiscal years 2023-2024 | Thereafter
--------------------------------- | -------- | ---------------- | ---------------------- | ---------------------- | ----------
                                  |          |                  | (in millions)          |                        |
Notes                             | $1,898.3 | $57.3            | $541.7                 | $422.3                 | $877.0
Term loan                         | 533.8    | 18.0             | 515.8                  | —                      | —
Operating lease obligations       | 409.8    | 75.4             | 115.3                  | 92.1                   | 127.0
Purchase obligations              | 82.7     | 47.8             | 17.0                   | 11.7                   | 6.2
Deferred compensation obligations | 60.3     | 5.0              | 9.2                    | 8.8                    | 37.3
Pension obligations               | 25.5     | 2.4              | 4.6                    | 4.6                    | 13.9
Asset retirement obligations      | 10.4     | 6.7              | 1.1                    | 1.2                    | 1.4
Total (1)                         | $3,020.8 | $212.6           | $1,204.7               | $540.7                 | $1,062.8 |


| _id | d1b351028 |
| title |  |
| text | 3. REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenues and related costs on construction contracts are recognized as the performance obligations are satisfied over time in accordance with ASC 606, Revenue from Contracts with Customers. Under ASC 606, revenue and associated profit, will be recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). The cost of uninstalled materials or equipment will generally be excluded from the Company’s recognition of profit, unless specifically

recognition of profit, unless specifically produced or manufactured for a project, because such costs are not considered to be a measure of progress.

In adopting ASC 606, the Company had the following significant changes in accounting principles:

(i) Timing of revenue recognition for uninstalled materials - The Company previously recognized the majority of its revenue from the installation or construction of commercial & public works projects using the percentage-of-completion method of accounting, whereby revenue is recognized as the Company progresses on the contract. The percentage-of-completion for each project was determined on an actual cost-to-estimated final cost basis. Under ASC 606, revenue and associated profit, is recognized as the

and associated profit, is recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). The cost of uninstalled materials or equipment is generally excluded from the Company’s recognition of profit, unless specifically produced or manufactured for a project, because such costs are not considered to be a measure of progress.

(ii) Completed contracts - The Company previously recognized the majority of its revenue from the installation of residential projects using the completed contract method of accounting whereby revenue the Company recognized when the project is completed. Under, ASC 606, revenue is recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations).

Revenue recognition for other sales arrangements such as the sales of materials will remain materially consistent with prior treatment.
The adoption of the new revenue recognition standard resulted in a cumulative effect adjustment to retained earnings of approximately $1,405 as of January 1, 2018. The details of this adjustment are summarized below.

 |
| table | | Balance at December 31, 2017 | Adjustments Due to ASC 606 | Balance at January 1, 2018
-------------------- | ---------------------------- | -------------------------- | --------------------------
Contract assets      | $3,790                       | $(584)                     | $3,206
Contract liabilities | 7,288                        | 821                        | 8,109
Accumulated deficit  | (56,365)                     | (1,405)                    | (57,770) |


| _id | d1b34b31c |
| title |  |
| text | Capital expenditures
For 2019, capital expenditure was SEK 5.1 (4.0) billion, representing 2.3% of sales. Expenditures are largely related to test sites and equipment for R&D, network operation centers and manufacturing and repair operations.
The increase in 2019 was mainly due to investments in 5G test equipment.

Annual capital expenditures are normally around 2% of sales. This corresponds to the needs for keeping and maintaining the current capacity level. The Board of Directors reviews the Company’s investment plans and proposals.
As of December 31, 2019, no material land, buildings, machinery or equipment were pledged as collateral for outstanding indebtedness.

 |
| table | Capital expenditures 2017–2019 |      |      |
------------------------------ | ---- | ---- | ----
SEK billion                    | 2019 | 2018 | 2017
Capital expenditures           | 5.1  | 4.0  | 3.9
Of which in Sweden             | 2.0  | 1.3  | 1.5
Share of annual sales          | 2.3% | 1.9% | 1.9% |


| _id | d1b3b5438 |
| title |  |
| text | The total fair value of RSUs and PSUs granted and vested during the years ended December 31, 2019, 2018 and 2017 were as follows:
As of December 31, 2019, there was $1.1 billion of unrecognized compensation cost related to non-vested RSUs, which will be recognized on a straight-line basis over the remaining weighted average contractual term of approximately 2.5 years.

In connection with vesting and release of RSUs and PSUs, the tax benefits realized by the company for the years ended December 31, 2019, 2018 and 2017 were $131 million, $117 million and $180 million, respectively.

 |
| table | ($ in millions)                 |      |      |
------------------------------- | ---- | ---- | ----
For the year ended December 31: | 2019 | 2018 | 2017
RSUs                            |      |      |
Granted                         | $674 | $583 | $484
Vested                          | 428  | 381  | 463
PSUs                            |      |      |
Granted                         | $164 | $118 | $113
Vested                          | 118  | 101  | 51 |


| _id | d1b36b7fc |
| title |  |
| text | 4. Link between Group performance and remuneration outcomes
The Altium Remuneration Framework is designed to align key employee remuneration to shareholder returns (in the form of capital appreciation and dividends). The table below shows the Group performance on key financial results and performance metrics over the last five years.

Altium’s remuneration strategy has evolved over the past seven years and we believe that it is linked intrinsically to the success of the Group. Strong payout results for STI and LTI have reflected the strong financial performance of the Group. In addition, STI and LTI hurdles have changed over time to better reflect what is most important for Group growth.
1 Normalised EPS and Profit for the year excludes deferred tax asset of US$77 million recognised on the transfer of core business assets to the USA.

2 The maximum STI payable based on the above performance hurdles is 100%, however based on achievement of individual personal goals, the overall achievement level may be modified up to 150% or down to 0%.

 |
| table | | 2019                   | 2018                   | 2017                   | 2016                   | 2015
---------------------------- | ---------------------- | ---------------------- | ---------------------- | ---------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                             | US$’000                | US$’000                | US$’000                | US$’000                | US$’000
Revenue                      | 171,819                | 140,176                | 110,865                | 93,597                 | 80,216
EBITDA                       | 62,721                 | 44,869                 | 33,254                 | 27,430                 | 22,697
EPS                          | 40.57                  | 28.86                  | 21.70                  | 17.89                  | 12.47 1
Profit for the year          | 52,893                 | 37,489                 | 28,077                 | 23,020                 | 15,398 1
Dividend declared - AU cents | 34                     | 27                     | 23                     | 20                     | 16
Share price - AU$            | $34.2                  | 22.51                  | 8.57                   | 6.46                   | 4.43
STI Achievement              | 100% - 150% 2          | 131%                   | 103%                   | 97%                    | 63%
STI performance hurdles      | 70% Revenue 30% EBITDA | 50% Revenue 50% EBITDA | 70% Revenue 30% EBITDA | 50% Revenue 50% EBITDA | Different metrics related to subscriber related to subscriber growth, EPS and Product development related to subscriber growth, EPS and Product development related to subscriber growth, EPS and Product development
LTI Achievement              | 100%                   | 100%                   | 100%                   | 100%                   | 50%
LTI performance hurdles      | 50% Revenue            | EPS                    | EPS                    | EPS                    | 50% Subscriber growth 50% EPS |


| _id | d1b3b2760 |
| title |  |
| text | The following table shows summary financial performance for the Group:
Notes
1. Order intake represents commitments from customers to purchase goods and/or services that will ultimately result in recognised revenue.
2. Before exceptional items, acquisition related costs, acquired intangible asset amortisation and share-based payment amounting to $4.3 million in total (2018 $19.6 million).
3. Adjusted operating profit as a percentage of revenue in the period.

4. Effective tax rate is the adjusted tax charge, before tax on adjusting items, expressed as a percentage of adjusted profit before tax.
5. Adjusted basic earnings per share is based on adjusted earnings as set out in note 11 of Notes to the full year consolidated financial statements.
6. Cash flow generated from operations, less tax and net capital expenditure, interest paid and/or received, and payment of lease liabilities/sublease income.

7. Dividends are determined in US dollars and paid in sterling at the exchange rate prevailing when the dividend is proposed. The final dividend proposed for 2019 of 3.45 cents per Ordinary Share is equivalent to 2.70 pence per Ordinary Share.
Note on Alternative Performance Measures (APMs)

Note on Alternative Performance Measures (APMs)
The performance of the Group is assessed using a variety of performance measures, including APMs which are presented to provide users with additional financial information that is regularly reviewed by management. These APMs are not defined under IFRS and therefore may not be directly comparable with similarly identified measures used by other companies.

The APMs adopted by the Group are defined on pages 190 and 191. The APMs which relate to adjusted income statement lines are presented and reconciled to GAAP measures using a columnar approach on the face of the income statement and can be identified by the prefix “adjusted” in the commentary. All APMs are clearly identified as such, with explanatory footnotes to the tables of financial information provided, and reconciled to reported GAAP measures in the Financial review or Notes to the consolidated

the Financial review or Notes to the consolidated financial statements.

 |
| table | $ million                                  | 2019  | 2018  | Change (%)
------------------------------------------ | ----- | ----- | ----------
Order intake1                              | 532.0 | 470.0 | 13.2
Revenue                                    | 503.6 | 476.9 | 5.6
Gross profit                               | 368.6 | 344.5 | 7.0
Gross margin (%)                           | 73.2  | 72.2  | 1.0
Adjusted operating costs2                  | 275.7 | 267.4 | 3.1
Adjusted operating profit2                 | 92.9  | 77.1  | 20.5
Adjusted operating margin3 (%)             | 18.4  | 16.2  | 2.2
Reported operating profit                  | 88.6  | 57.5  | 54.1
Effective tax rate4 (%)                    | 13.0  | 15.4  | (2.4)
Reported profit before tax                 | 89.6  | 61.2  | 46.4
Adjusted basic earnings per share5 (cents) | 13.40 | 10.86 | 23.4
Basic earnings per share (cents)           | 12.79 | 9.14  | 39.9
Free cash flow6                            | 100.1 | 50.9  | 96.7
Closing cash                               | 183.2 | 121.6 | 50.7
Final dividend per share7 (cents)          | 3.45  | 2.73  | 26.4 |


| _id | d1b327606 |
| title |  |
| text | Liability Insurance
The Company carries property, general liability, vehicle liability, directors’ and officers’ liability and workers’ compensation insurance. Additionally, the Company carries an umbrella liability policy to provide excess coverage over the underlying limits of the aforementioned primary policies.

The Company’s insurance programs for workers’ compensation, general liability, and employee related health care benefits are provided through high deductible or self-insured programs. Claims in excess of self-insurance levels are fully insured subject to policy limits. Accruals are based on historical claims experience, actual claims filed, and estimates of claims incurred but not reported.

The Company’s liabilities for unpaid and incurred, but not reported claims, for workers’ compensation, general liability, and health insurance at September 2019 and September 2018 was $1.5 million and $1.6 million, respectively. These amounts are included in accrued expenses in the accompanying Consolidated Balance Sheets. While the ultimate amount of claims incurred is dependent on future developments, in the Company’s opinion, recorded reserves are adequate to cover the future payment of claims

adequate to cover the future payment of claims previously incurred. However, it is possible that recorded reserves may not be adequate to cover the future payment of claims.

Adjustments, if any, to claims estimates previously recorded, resulting from actual claim payments, are reflected in operations in the periods in which such adjustments are known.
A summary of the activity in the Company’s self-insured liabilities reserve is set forth below (in millions):

 |
| table | | 2019  | 2018
------------------ | ----- | -----
Beginning balance  | $1.6  | $1.5
Charged to expense | 5.4   | 5.8
Payments           | (5.5) | (5.7)
Ending balance     | $ 1.5 | $ 1.6 |


| _id | d1b3b2d14 |
| title |  |
| text | 7. INCOME TAXES:
The components of income tax expense from operations for fiscal 2019 and fiscal 2018 consisted of the following:

 |
| table | | 2019       | 2018
------------------ | ---------- | ----------
Current: Federal   | $1,139,927 | $1,294,253
Current: State     | 428,501    | 423,209
                   | 1,568,428  | 1,717,462
Deferred: Federal  | 34,466     | (470,166)
Deferred: State    | 6,106      | (83,296)
                   | 40,572     | (553,462)
Income tax expense | $1,609,000 | $1,164,000 |


| _id | d1b398b80 |
| title |  |
| text | Share Repurchase Programs

On December 1, 2014, the Company announced the "Capital Allocation Policy" under which the Company intends to return to stockholders approximately 80 percent of free cash flow, less repayments of long-term debt, subject to a variety of factors, including the strategic plans, market and economic conditions and the discretion of the Company’s board of directors. For the purposes of the Capital Allocation Policy, the Company defines "free cash flow" as net cash provided by operating activities less purchases

provided by operating activities less purchases of property, plant and equipment.

On December 1, 2014, the Company announced the 2014 Share Repurchase Program (the "2014 Share Repurchase Program") pursuant to the Capital Allocation Policy. Under the Company’s 2014 Share Repurchase Program, the Company had the ability to repurchase up to $ 1.0 billion (exclusive of fees, commissions and other expenses) of the Company’s common stock over a period of four years from December 1, 2014, subject to certain contingencies.

The 2014 Share Repurchase Program, which did not require the Company to purchase any particular amount of common stock and was subject to the discretion of the board of directors, expired on November 30, 2018 with approximately $288.2 million remaining unutilized.
The Company repurchased common stock worth approximately $315.0 million and $25.0 million under the 2014 Share Repurchase Program during the years ended December 31, 2018 and December 31, 2017, respectively.

On November 15, 2018, the Company announced the 2018 Share Repurchase Program (the "2018 Share Repurchase Program") pursuant to the Capital Allocation Policy. Under the 2018 Share Repurchase Program, the Company is authorized to repurchase up to $ 1.5 billion of its common shares from December 1, 2018 through December 31, 2022, exclusive of any fees, commissions or other expenses.

The Company may repurchase its common stock from time to time in privately negotiated transactions or open market transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and Rule 10b-18 of the Exchange Act, or by any combination of such methods or other methods.

The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, corporate and regulatory requirements, restrictions under the Company’s debt obligations and other market and economic conditions. There were $138.9 million in repurchases of the Company's common stock under the 2018 Share Repurchase Program during the year ended December 31, 2019. As of December 31, 2019, the remaining authorized amount under the 2018 Share

remaining authorized amount under the 2018 Share Repurchase Program was $1,361.1 million.

Information relating to the Company's 2018 and 2014 Share Repurchase Programs is as follows (in millions, except per share data):
(1) None of these shares had been reissued or retired as of December 31, 2019, but may be reissued or retired by the Company at a later date.

 |
| table | |          | Year ended December 31, |
-------------------------------------------- | -------- | ----------------------- | ------
                                             | 2019     | 2018                    | 2017
Number of repurchased shares (1)             | 7.8      | 16.8                    | 1.6
Aggregate purchase price                     | $138.9   | $315.0                  | $25.0
Fees, commissions and other expenses         | 0.1      | 0.3                     | —
Total cash used for share repurchases        | $139.0   | $315.3                  | $25.0
Weighted-average purchase price per share    | $17.89   | $18.78                  | $15.35
Available for future purchases at period end | $1,361.1 | $1,500.0                | $603.2 |


| _id | d1b36c3be |
| title |  |
| text | We completed our qualitative assessment of our indefinite-lived intangible assets other than goodwill as of December 31, 2019 and 2018 and concluded it is more likely than not that our indefinite-lived intangible assets are not impaired; thus, no impairment charge for these assets was recorded in 2019 or 2018.
The following tables show the rollforward of goodwill assigned to our reportable segments from December 31, 2017 through December 31, 2019.

(1) Goodwill is net of accumulated impairment losses of $1.1 billion that related to our former hosting segment now included in our business segment.
(2) We allocated $32 million of Level 3 goodwill to consumer as we expect the consumer segment to benefit from synergies resulting from the business combination. (2) We allocated $32 million of Level 3 goodwill to consumer as we expect the consumer segment to benefit from synergies resulting from the business combination.

(3) Includes $58 million decrease due to effect of foreign currency exchange rate change.

 |
| table | | Business | Consumer              | Total
----------------------------------------------- | -------- | --------------------- | -------
                                                |          | (Dollars in millions) |
As of December 31, 2017(1)                      | $20,197  | 10,278                | 30,475
Purchase accounting and other adjustments(2)(3) | 250      | 32                    | 282
Impairment                                      | —        | (2,726)               | (2,726)
As of December 31, 2018                         | $20,447  | 7,584                 | 28,031 |


| _id | d1a7200d8 |
| title |  |
| text | ALTERNATIVE PERFORMANCE MEASURES
Net profit/(loss) for the year excluding impairment:
Net profit excluding impairment is net profit less impairment and reversals of impairment generated from impairment testing during the year (Please refer to Note 8). The Company reports Net profit excluding impairment because we believe it provides additional meaningful information to investors regarding the operational performance excluding fluctuations in the valuation of fixed assets.

 |
| table | USDm                                                | 2019   | 2018  | 2017
--------------------------------------------------- | ------ | ----- | ----
Reconciliation to net profit/(loss) for the year    |        |       |
Net profit/(loss) for the year                      | 166.0  | -34.8 | 2.4
Reversal of impairment losses on tangible assets    | -120.0 | -     | -
Net profit/(loss) for the year excluding impairment | 46.0   | -34.8 | 2.4 |


| _id | d1b317bac |
| title |  |
| text | AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in millions, unless otherwise disclosed) net foreign currency losses
(“AOCL”) in the consolidated balance sheets and included as a component of Comprehensive income in the consolidated
statements of comprehensive income.

statements of comprehensive income.
Gains and losses on foreign currency transactions are reflected in Other expense in the consolidated statements of operations. However, the effect from fluctuations in foreign currency exchange rates on intercompany debt for which repayment is not anticipated in the foreseeable future is reflected in AOCL in the consolidated balance sheets and included as a component of Comprehensive income.
The Company recorded the following net foreign currency losses:

 |
| table | |       | Year Ended December 31, |
--------------------------------------------------------- | ----- | ----------------------- | ------
                                                          | 2019  | 2018                    | 2017
Foreign currency losses recorded in AOCL                  | $45.8 | $385.8                  | $51.6
Foreign currency (gains) losses recorded in Other expense | (6.1) | 4.5                     | (26.4)
Total foreign currency losses                             | $39.7 | $390.3                  | $25.2 |


| _id | d1b331e12 |
| title |  |
| text | The service cost component of net pension expense represents the estimated cost of future pension liabilities earned associated with active employees. The pension earnings, interest and deferrals (“pension EID”) is comprised of the expected return on plan assets, interest costs on the projected benefit obligations of the plans and amortization of actuarial gains and losses and prior service costs.

Net pension expense is recorded in accounts that are included in both the cost of sales and selling, general and administrative expenses based on the function of the associated employees and in other income (expense), net. The following is a summary of the classification of net pension expense for the years ended June 30, 2019, 2018 and 2017:
As of June 30, 2019 and 2018, amounts capitalized in gross inventory were $1.7 million and $1.7 million, respectively.

 |
| table | |       | Years Ended June 30, |
-------------------------------------------------- | ----- | -------------------- | -----
($ in millions)                                    | 2019  | 2018                 | 2017
Cost of sales                                      |       |                      |
Service cost                                       | $10.0 | $10.5                | $20.2
Total cost of sales                                | 10.0  | 10.5                 | 20.2
Selling, general and administrative expenses       |       |                      |
Service cost                                       | 1.5   | 1.6                  | 3.9
Total selling, general and administrative expenses | 1.5   | 1.6                  | 3.9
Other expense                                      |       |                      |
Pension earnings, interest and deferrals           | 0.1   | 2.1                  | 23.8
Curtailment charge                                 | —     | —                    | 0.5
Total other expense                                | 0.1   | 2.1                  | 24.3
Net pension expense                                | $11.6 | $14.2                | $48.4 |


| _id | d1b31c0c6 |
| title |  |
| text | Contractual Obligations
Presented below is information about our material contractual obligations and the periods in which those future payments are due as of December 31, 2019. Future events could cause actual payments to differ from these estimates. As of December 31, 2019, the following table summarizes our contractual obligations and the effect such obligations are expected to have on our liquidity and cash flow in future periods (in thousands):

(1) The 2017 Facility incurs interest at a variable rate. The projected variable interest payments assume no change in the Eurodollar Base Rate, or LIBOR, from December 31, 2019.
(2) Represents the current portion of our expected cash payments for our liability to repurchase subsidiary unit awards for our professional residential property management and vacation rental management subsidiary.

(3) Represents amounts due under multi-year, non-cancelable contracts with third-party vendors, as well as other commitments.

The commitment amounts in the table above are associated with contracts that are enforceable and legally binding and that specify all significant terms, including fixed or minimum services to be used, fixed, minimum or variable price provisions, and the approximate timing of the actions under the contracts. The table does not include obligations under agreements that we can cancel without a significant penalty.
As of December 31, 2019, we had no outstanding letters of credit under our 2017 Facility.

 |
| table | Contractual Obligations            | 1 Year  | 2 to 3 Years | 4 to 5 Years | More Than 5 Years | Total
---------------------------------- | ------- | ------------ | ------------ | ----------------- | --------
Debt:                              |         |              |              |                   |
Principal payments                 | $—      | $63,000      | $—           | $—                | $63,000
Interest payments1                 | 2,206   | 3,876        | —            | —                 | 6,082
Unused line fee payments           | 126     | 222          | —            | —                 | 348
Operating lease commitments        | 9,818   | 18,823       | 15,840       | 10,893            | 55,374
Subsidiary unit award liabilities2 | 141     | —            | —            | —                 | 141
Other long-term liabilities        | —       | 4,375        | 2,513        | 601               | 7,489
Other commitments 3                | 624     | 290          | —            | —                 | 914
Total contractual obligations      | $12,915 | $90,586      | $18,353      | $11,494           | $133,348 |


| _id | d1b33e310 |
| title |  |
| text | In relation to the oil derivative instrument (see note 24), the fair value was determined using the estimated discounted cash flows of the additional payments due to us as a result of oil prices moving above a contractual oil price floor over the term of the liquefaction tolling agreement ("LTA"). Significant inputs used in the valuation of the oil derivative instrument include management’s estimate of an appropriate discount rate and the length of time to blend the long-term and the short-term oil prices

blend the long-term and the short-term oil prices obtained from quoted prices in active markets. The changes in fair value of our oil derivative instrument is recognized in each period in current earnings in "Realized and unrealized gain on oil derivative instrument" as part of the consolidated statement of income.

The realized and unrealized (loss)/ gain on the oil derivative instrument is as follows:
The unrealized loss/gain results from movement in oil prices above a contractual floor price over term of the LTA; the realized gain results from monthly billings above the base tolling fee under the LTA. For further information on the nature of this derivative, refer to note 24.

 |
| table | |          | Year Ended December 31, |
---------------------------------------------------- | -------- | ----------------------- | ------
(in thousands of $)                                  | 2019     | 2018                    | 2017
Realized gain on oil derivative instrument           | 13,089   | 26,737                  | —
Unrealized (loss)/gain on oil derivative instrument  | (39,090) | (9,970)                 | 15,100
                                                     | (26,001) | 16,767                  | 15,100 |


| _id | d1b31925e |
| title |  |
| text | Defined Benefit Pension Plans
The Company maintains defined benefit pension plans for employees of certain of its foreign subsidiaries. Such plans conform to local practice in terms of providing minimum benefits mandated by law, collective agreements or customary practice. The Company recognizes the aggregate amount of all overfunded plans as assets and the aggregate amount of all underfunded plans as liabilities in its financial statements.

The Company's expected long-term rate of return on plan assets is updated at least annually, taking into consideration its asset allocation, historical returns on similar types of assets and the current economic environment. For estimation purposes, the Company assumes its long-term asset mix will generally be consistent with the current mix. The Company determines its discount rates using highly rated corporate bond yields and government bond yields.

Benefits under all of the Company's plans are valued utilizing the projected unit credit cost method. The Company's policy is to fund its defined benefit plans in accordance with local requirements and regulations. The funding is primarily driven by the Company's current assessment of the economic environment and projected benefit payments of its foreign subsidiaries. The Company's measurement date for determining its defined benefit obligations for all plans is December 31 of each year.

The Company recognizes actuarial gains and losses in the period the Company's annual pension plan actuarial valuations are prepared, which generally occurs during the fourth quarter of each year, or during any interim period where a revaluation is deemed necessary.
The following is a summary of the status of the Company's foreign defined benefit pension plans and the net periodic pension cost (dollars in millions):

The long term rate of return on plan assets was determined using the weighted-average method, which incorporates factors that include the historical inflation rates, interest rate yield curve and current market conditions.

 |
| table | |        | Year Ended December 31, |
-------------------------------------------------- | ------ | ----------------------- | ------
                                                   | 2019   | 2018                    | 2017
Service cost                                       | $9.4   | $9.6                    | $10.0
Interest cost                                      | 5.0    | 4.7                     | 4.3
Expected return on plan assets                     | (6.0)  | (6.1)                   | (5.5)
Curtailment gain                                   | —      | (0.3)                   | —
Actuarial and other loss                           | 15.6   | 6.1                     | 1.9
Total net periodic pension cost                    | $24.0  | $14.0                   | $10.7
Weighted average assumptions                       |        |                         |
Discount rate used for net periodic pension costs  | 1.74 % | 1.66 %                  | 1.60 %
Discount rate used for pension benefit obligations | 1.43 % | 1.74 %                  | 1.66 %
Expected return on plan assets                     | 3.23 % | 3.18 %                  | 3.22 %
Rate of compensation increase                      | 3.07 % | 3.22 %                  | 3.22 % |


| _id | d1b35ce14 |
| title |  |
| text | The following table illustrates the classification of pre-payroll tax and social contribution stock-based compensation expense included in the consolidated statements of income for the years ended December 31, 2019, December 31, 2018 and December 31, 2017:
The fair value of the shares vested in 2019 was $114 million compared to $68 million for 2018 and $38 million for 2017.

Compensation cost, excluding payroll tax and social contribution, capitalized as part of inventory was $6 million as of December 31, 2019, compared to $6 million as of December 31, 2018 and $3 million as of December 31, 2017. As of December 31, 2019, there was $138 million of total unrecognized compensation cost related to the grant of unvested shares, which is expected to be recognized over a weighted average period of approximately 9 months.

The total deferred income tax benefit recognized in the consolidated statements of income related to unvested share-based compensation expense amounted to $9 million, $7 million and $3 million for the years ended December 31, 2019, 2018 and 2017, respectively.

 |
| table | | December 31, 2019 | December 31, 2018 | December 31, 2017
---------------------------------------------------------- | ----------------- | ----------------- | -----------------
Cost of sales                                              | 22                | 23                | 12
Selling, general and administrative                        | 46                | 67                | 31
Research and development                                   | 77                | 35                | 18
Total pre-payroll tax and social contribution compensation | 145               | 125               | 61 |


| _id | d1b2fbe34 |
| title |  |
| text | Segment Operating Profit (Earnings before general corporate expenses, pension and postretirement non-service income, interest expense, net, income taxes, and equity method investment earnings)

Grocery & Snacks operating profit for fiscal 2019 was $689.2 million, a decrease of $35.6 million, or 5%, compared to fiscal 2018. Gross profits were $55.8 million lower in fiscal 2019 than in fiscal 2018. The lower gross profit was driven by higher input costs, transportation inflation, and a reduction in profit associated with the divestiture of the Wesson ® oil business, partially offset by profit contribution of acquisitions and supply chain realized productivity. The acquisition of Angie's Artisan

productivity. The acquisition of Angie's Artisan Treats, LLC contributed $12.6 million to Grocery & Snacks gross profit in fiscal 2019, through the one-year anniversary of the acquisition. Advertising and promotion expenses for fiscal 2019 decreased by $31.3 million compared to fiscal 2018. Operating profit of the Grocery & Snacks segment was impacted by charges totaling $76.5 million in fiscal 2019 for the impairment of our Chef Boyardee® and Red Fork® brand assets and $4.0 million in fiscal 2018 for the

assets and $4.0 million in fiscal 2018 for the impairment of our HK Anderson® , Red Fork® , and Salpica® brand assets. Grocery & Snacks also recognized a $33.1 million gain on the sale of our Wesson ® oil business in fiscal 2019. Operating profit of the Grocery & Snacks segment included $1.0 million and $11.4 million of expenses in fiscal 2019 and 2018, respectively, related to acquisitions and divestitures and charges of $4.6 million and $14.1 million in connection with our restructuring plans in fiscal

connection with our restructuring plans in fiscal 2019 and 2018, respectively. Grocery & Snacks operating profit for fiscal 2019 was $689.2 million, a decrease of $35.6 million, or 5%, compared to fiscal 2018. Gross profits were $55.8 million lower in fiscal 2019 than in fiscal 2018. The lower gross profit was driven by higher input costs, transportation inflation, and a reduction in profit associated with the divestiture of the Wesson ® oil business, partially offset by profit contribution of acquisitions

offset by profit contribution of acquisitions and supply chain realized productivity. The acquisition of Angie's Artisan Treats, LLC contributed $12.6 million to Grocery & Snacks gross profit in fiscal 2019, through the one-year anniversary of the acquisition. Advertising and promotion expenses for fiscal 2019 decreased by $31.3 million compared to fiscal 2018. Operating profit of the Grocery & Snacks segment was impacted by charges totaling $76.5 million in fiscal 2019 for the impairment of our Chef

in fiscal 2019 for the impairment of our Chef Boyardee® and Red Fork® brand assets and $4.0 million in fiscal 2018 for the impairment of our HK Anderson® , Red Fork® , and Salpica® brand assets. Grocery & Snacks also recognized a $33.1 million gain on the sale of our Wesson ® oil business in fiscal 2019. Operating profit of the Grocery & Snacks segment included $1.0 million and $11.4 million of expenses in fiscal 2019 and 2018, respectively, related to acquisitions and divestitures and charges of $4.6

acquisitions and divestitures and charges of $4.6 million and $14.1 million in connection with our restructuring plans in fiscal 2019 and 2018, respectively.

Refrigerated & Frozen operating profit for fiscal 2019 was $502.2 million, an increase of $22.8 million, or 5%, compared to fiscal 2018. Gross profits were $19.6 million lower in fiscal 2019 than in fiscal 2018, driven by increased input costs and transportation inflation, partially offset by supply chain realized productivity. Advertising and promotion expenses for fiscal 2019 decreased by $24.6 million compared to fiscal 2018. Operating profit of the Refrigerated & Frozen segment included a gain of $23.1

& Frozen segment included a gain of $23.1 million in fiscal 2019 related to the sale of our Italian-based frozen pasta business, Gelit.

International operating profit for fiscal 2019 was $94.5 million, an increase of $8.0 million, or 9%, compared to fiscal 2018. Gross profits were flat in fiscal 2019 compared to fiscal 2018. Included in the International segment fiscal 2019 operating profit was a gain of $13.2 million related to the sale of our Del Monte® processed fruit and vegetable business in Canada, charges of $13.1 million for the impairment of our Aylmer® and Sundrop ® brand assets, and charges of $2.9 million related to

assets, and charges of $2.9 million related to divestitures. In addition, operating profit was impacted by charges of $1.9 million and $1.5 million in connection with our restructuring plans, in fiscal 2019 and 2018, respectively.

Foodservice operating profit for fiscal 2019 was $117.7 million, a decrease of $4.1 million, or 3%, compared to fiscal 2018. Gross profits were $8.5 million lower in fiscal 2019 than in fiscal 2018, due to lower volume (including the sale of our Trenton, Missouri production facility) and higher input costs, partially offset by supply chain realized productivity

Pinnacle Foods operating profit for fiscal 2019 (reflecting 213 days of Conagra Brands ownership) was $238.2 million. Operating profit for Pinnacle Foods during fiscal 2019 included incremental cost of goods sold of $53.0 million due to the impact of writing inventory to fair value as part of our acquisition accounting and the subsequent sale of that inventory, as well as charges of $5.9 million related to restructuring activities.

 |
| table | ($ in millions)       |                              |                              |
--------------------- | ---------------------------- | ---------------------------- | -----------
Reporting Segment     | Fiscal 2019 Operating Profit | Fiscal 2018 Operating Profit | % Inc (Dec)
Grocery & Snacks      | $689.2                       | $724.8                       | (5)%
Refrigerated & Frozen | 502.2                        | 479.4                        | 5%
International         | 94.5                         | 86.5                         | 9%
Foodservice           | 117.7                        | 121.8                        | (3)%
Pinnacle Foods        | 238.2                        | —                            | 100% |


| _id | d1b2f32e8 |
| title |  |
| text | 1. Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018, are as follows:

Our 2019 acquisitions of DeliverySlip (as defined herein) and AppRiver (as defined herein) resulted in the addition to our goodwill balance in 2019. Our 2018 acquisition of Erado (as defined herein) resulted in the addition to our goodwill balance in 2018. Our 2018 acquisition adjustments to goodwill reflect the appropriate reallocation of excess purchase price from goodwill to acquired assets and liabilities related to our 2017 Greenview and EMS (as defined herein) purchases. We evaluate goodwill for

herein) purchases. We evaluate goodwill for impairment annually in the fourth quarter, or when there is reason to believe that the value has been diminished or impaired. There were no impairment indicators to the goodwill recorded as of December 31, 2019.

 |
| table | | Year Ended December 31, |
----------------------------------------- | ----------------------- | --------
(In thousands)                            | 2019                    | 2018
Opening balance                           | $ 13,783                | $ 8,469
Additions                                 | 157,121                 | 6,215
Acquisition adjustments                   | —                       | (901 )
Effect of currency translation adjustment | 305                     | —
Goodwill                                  | $ 171,209               | $ 13,783 |


| _id | d1b377142 |
| title |  |
| text | Operating profit/loss
Our operating profit in 2019 was EUR 485 million, a change of EUR 544 million, compared to an operating loss of EUR 59 million in 2018. The change in operating result was primarily due to lower selling, general and administrative expenses, research and development expenses and a net positive fluctuation in other operating income and expenses, partially offset by lower gross profit. Our operating margin in 2019 was 2.1%, compared to approximately breakeven in 2018.

(1) Excludes costs related to the acquisition of Alcatel Lucent and related integration, goodwill impairment charges, intangible asset amortization and other purchase price fair value adjustments, restructuring and associated charges and certain other items.
The following table sets forth the impact of unallocated items on operating profit/loss:

 |
| table | EURm                                                                                | 2019  | 2018
-------------------------------------------------------------------------------------------------------- | ----- | -----
Total segment operating profit(1)                                                                        | 2,003 | 2,180
Amortization and depreciation of acquired intangible assets and property, plant and equipment            | (924) | (940)
Restructuring and associated charges                                                                     | (502) | (321)
Gain on defined benefit plan amendment                                                                   | 168   | -
Product portfolio strategy costs                                                                         | (163) | (583)
Transaction and related costs, including integration costs relating to the acquisition of Alcatel Lucent | (48)  | (220)
Impairment of assets, net of impairment reversals                                                        | (29)  | (48)
Operating model integration                                                                              | (12)  | -
Release of acquisition-related fair value adjustments to deferred revenue and inventory                  | (6)   | (16)
Divestment of businesses                                                                                | (2)   | (39)
Fair value changes of legacy IPR fund                                                                    | -     | (57)
Other                                                                                | -     | (15)
Total operating profit/(loss)                                                                            | 485   | (59) |


| _id | d1b328f2e |
| title |  |
| text | Unrecognized Tax Benefits
Reconciliation of the unrecognized tax benefits is summarized below (in thousands):
(1) The reductions for tax positions of prior years for the fiscal year ended August 31, 2019 are primarily related to a non-U.S. taxing authority ruling related to certain non-U.S. net operating loss carry forwards, offset with a valuation allowance and the impacts of the Tax Act.

(2) The additions for the fiscal years ended August 31, 2019 and 2018 are primarily related to the impacts of the Tax Act and taxation of certain intercompany transactions. The additions for the fiscal year ended August 31, 2017 are primarily related to certain non-U.S. net operating loss carry forwards, previously offset with a valuation allowance, that can no longer be recognized due to an internal restructuring.

(3) The reductions from settlements with taxing authorities for the fiscal year ended August 31, 2019 are primarily related to the settlement of a U.S. audit.

The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company’s accrued interest and penalties were approximately $18.9 million and $20.4 million as of August 31, 2019 and 2018, respectively. The Company recognized interest and penalties of approximately $(1.5) million, $(6.7) million and $5.2 million during the fiscal years ended August 31, 2019, 2018 and 2017, respectively.

It is reasonably possible that the August 31, 2019 unrecognized tax benefits could decrease during the next 12 months by $5.8 million, primarily related to a state settlement.
The Company is no longer subject to U.S. federal tax examinations for fiscal years before August 31, 2015. In major non-U.S. and state jurisdictions, the Company is no longer subject to income tax examinations for fiscal years before August 31, 2009.

The Internal Revenue Service (“IRS”) completed its field examination of the Company’s tax returns for fiscal years 2009 through 2011 and issued a Revenue Agent’s Report (“RAR”) on May 27, 2015, which was updated on June 22, 2016. The IRS completed its field examination of the Company’s tax returns for fiscal years 2012 through 2014 and issued an RAR on April 19, 2017. The proposed adjustments in the RAR from both examination periods relate primarily to U.S. taxation of certain intercompany transactions. On

taxation of certain intercompany transactions. On May 8, 2019, the tax return audits for fiscal years 2009 through 2014 were effectively settled when the Company agreed to the IRS Office of Appeals’ Form 870-AD (Offer to Waive Restrictions on Assessment and Collection of Tax Deficiency and to Accept Overassessment) adjustments, which were substantially lower than the initial RAR proposed adjustments. The settlement did not have a material effect on the Company’s financial position, results of operations,

financial position, results of operations, or cash flows and no additional tax liabilities were recorded.

 |
| table | |           | Fiscal Year Ended August 31, |
---------------------------------------------------------------------------------- | --------- | ---------------------------- | --------
                                                                                | 2019      | 2018                         | 2017
Beginning balance                                                                  | $256,705  | $201,355                     | $149,898
Additions for tax positions of prior years                                         | 20,158    | 14,465                       | 2,155
Reductions for tax positions of prior years(1)                                     | (106,252) | (21,045)                     | (12,233)
Additions for tax positions related to current year(2)                             | 35,769    | 81,866                       | 77,807
Cash settlements                                                                   | —         | (1,659)                      | (2,298)
Reductions from lapses in statutes of limitations                                  | (2,570)   | (7,496)                      | (10,446)
Reductions from settlements with taxing authorities(3)                             | (35,582)  | (5,928)                      | (6,061)
Foreign exchange rate adjustment                                                   | (3,845)   | (4,853)                      | 2,533
Ending balance                                                                     | $164,383  | $256,705                     | $201,355
Unrecognized tax benefits that would affect the effective tax rate (if recognized) | $93,237   | $117,455                     | $75,223 |


| _id | d1b35b33e |
| title |  |
| text | 25. Loans and other borrowings continued
Net Debt

Net debt consists of loans and other borrowings (both current and non-current), less current asset investments and cash and cash equivalents. Loans and other borrowings are measured at the net proceeds raised, adjusted to amortise any discount over the term of the debt. For the purpose of this measure, current asset investments and cash and cash equivalents are measured at the lower of cost and net realisable value. Currency denominated balances within net debt are translated to sterling at swapped rates

debt are translated to sterling at swapped rates where hedged.

Net debt is considered to be an alternative performance measure as it is not defined in IFRS. The most directly comparable IFRS measure is the aggregate of loans and other borrowings (current and non-current), current asset investments and cash and cash equivalents. A reconciliation from the most directly comparable IFRS measure to net debt is given below.
A reconciliation from the most directly comparable IFRS measure to net debt is given below.

 |
| table | At 31 March                                                                                | 2019 £m | 2018 £m | 2017 £m
------------------------------------------------------------------------------------------------------ | ------- | ------- | -------
Loans and other borrowings                                                                             | 16,876  | 14,275  | 12,713
Less:                                                                                |         |         |
Cash and cash equivalents                                                                              | (1,666) | (528)   | (528)
Current asset investments                                                                              | (3,214) | (3,022) | (1,520)
                                                                                | 11,996  | 10,725  | 10,665
Adjustments:                                                                                |         |         |
To retranslate debt balances at swap rates where hedged by currency swaps                              | (701)   | (874)   | (1,419)
To remove accrued interest applied to reflect the effective interest method and fair value adjustments | (260)   | (224)   | (314)
Net debt                                                                                | 11,035  | 9,627   | 8,932 |


| _id | d1b3354cc |
| title |  |
| text | Contract Balances
The following table provides information about contract assets and contract liabilities from contracts with customers (amounts in thousands):

Contract assets, reported within current assets and other long-term assets in the consolidated balance sheets, primarily result from revenue being recognized when a license is delivered and payments are made over time. Contract liabilities primarily relate to advance consideration received from customers, deferred revenue, for which transfer of control occurs, and therefore revenue is recognized, as services are provided. Contract balances are reported in a net contract asset or liability position on a

a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. The Company recognized $4.4 million of revenue during the year ended September 30, 2019 that was included in the contract liability balance at the beginning of the period.

 |
| table | | September 30, 2019 | October 1, 2018
--------------------------------- | ------------------ | ---------------
Contract assets, current          | $2,350             | $169
Contract assets, non-current      | 581                | 507
Contract liabilities, current     | 5,612              | 4,281
Contract liabilities, non-current | 736                | 485 |


| _id | d1b3bc0b2 |
| title |  |
| text | Consumer Cyber Safety segment

Revenue increased $616 million due to a $639 million increase in revenue from sales of our identity and information protection products acquired at the end of fiscal 2017, offset by a $23 million decrease in revenue related to our consumer security products. Our revenue growth reflects the benefit of the shift to subscription-based contracts and bundling of our consumer products, which is helping to mitigate the trend of declining revenues from sales of stand-alone security products. Operating income

stand-alone security products. Operating income increased $272 million primarily due to sales of our identity and information protection products, partially offset by higher related cost of sales and operating expenses.

 |
| table | | Fiscal Year |        | Variance in |
------------------------------------- | ----------- | ------ | ----------- | -------
(In millions, except for percentages) | 2018        | 2017   | Dollar      | Percent
Net revenues                          | $2,280      | $1,664 | $616        | 37%
Percentage of total net revenues      | 47%         | 41%    |             |
Operating income                      | $1,111      | $839   | $272        | 32%
Operating margin                      | 49%         | 50%    |             | |


| _id | d1b32c4da |
| title |  |
| text | Cubic Global Defense

Sales: CGD sales decreased 2% to $317.9 million in 2019 compared to $325.2 million in 2018. The timing of sales recognition was impacted by the adoption of ASC 606. Under ASC 606, a number of our CGD contracts, most significantly in air combat training and ground live training, for which revenue was historically recorded upon delivery of products to the customer, are now accounted for on the percentage-of-completion cost-to-cost method of revenue recognition. For fiscal 2019, sales were lower from air

For fiscal 2019, sales were lower from air combat training systems, simulation product development contracts, and international services contracts, partially offset by higher sales from ground combat training systems. The average exchange rates between the prevailing currencies in our foreign operations and the U.S. dollar resulted in a decrease in CGD sales of $3.2 million for 2019 compared to 2018.

Amortization of Purchased Intangibles: Amortization of purchased intangibles included in the CGD results amounted to $0.6 million in 2019 and $1.1 million in 2018.

Operating Income: CGD operating income increased by 39% to $23.0 million in 2019 compared to $16.6 million in 2018. For fiscal 2019, operating profits improved primarily due to the results of cost reduction efforts, including headcount reductions designed to optimize our cost position, and reduced R&D expenditures. Operating profits were higher from increased sales of ground combat training system sales but were lower on decreased sales from air combat training systems, simulation product development

training systems, simulation product development contracts, and international services contracts. The average exchange rates between the prevailing currency in our foreign operations and the U.S. dollar had no significant impact on CGD operating income between 2018 and 2019.

Adjusted EBITDA: CGD Adjusted EBITDA was $32.8 million in 2019 compared to $26.3 million in 2018. The increase in Adjusted EBITDA was primarily driven by the same factors that drove the increase in operating income described above. Adjusted EBITDA for CGD increased by $3.1 million in 2019 as a result of the adoption of the new revenue recognition standard.

 |
| table | | Fiscal 2019 | Fiscal 2018   | % Change
---------------- | ----------- | ------------- | --------
                 |             | (in millions) |
Sales            | $  317.9    | $  325.2      | (2)%
Operating income | 23.0        | 16.6          | 39
Adjusted EBITDA  | 32.8        | 26.3          | 25 |


| _id | d1b3bcf6c |
| title |  |
| text | Credit risk
The carrying amount of financial assets, previously recognised as loans and receivables under IAS 39 now classified as amortised cost under IFRS 9, represents the maximum credit exposure. The maximum exposure to credit risk at 31 March 2019 was £59.1m (2018: £56.5m).
The maximum exposure to credit risk for trade receivables at the reporting date by geographic region was:

 |
| table | |      | 2019 | 2018
------- | ---- | ---- | ----
        | Note | £m   | £m
UK      |      | 24.5 | 24.9
Ireland |      | 0.4  | 0.5
Total   |      | 24.9 | 25.4 |


| _id | d1b3b8f0c |
| title |  |
| text | a. Analysis of revenue growth
On a reported basis, TCS’ revenue grew 19% in FY 2019, compared to 4.4% in the prior year. This was largely an outcome of greater demand for our services and solutions during the year, driven by expanding participation in our customers’ growth and transformation initiatives. In addition, there was some benefit from the movement in currency exchange rates.

FY 2019 saw volatility in USD-INR, ranging from `64.90 and `74.10, and averaging at `70.07. There was also significant volatility in exchange rates of emerging markets’ currencies. Average currency exchange rates during FY 2019 for the three major currencies are given below:

Movements in currency exchange rates through the year resulted in a positive impact of 7.6% on the reported revenue. The constant currency revenue growth for the year, which is the reported revenue growth stripped of the currency impact, was 11.4%.

 |
| table | Currency                  | Weightage (%) | FY 2019 `   | FY 2018 ` | % Change YoY
------------------------- | ------------- | ----------- | --------- | ------------
USD                       | 53.6          | 70.07       | 64.49     | 8.7
GBP                       | 13.9          | 91.60       | 86.05     | 6.5
EUR                       | 10.1          | 80.82       | 76.16     | 6.1
Breakup of revenue growth | FY 2019 (%)   | FY 2018 (%) |           |
Business growth           | 11.4          | 6.7         |           |
Impact of exchange rate   | 7.6           | (2.3)       |           |
Total growth              | 19.0          | 4.4         |           | |


| _id | d1b30df3a |
| title |  |
| text | Vessel operations segment
(1) TCE is a non-GAAP financial measure. For a reconciliation of TCE, please see “Item 3. Key Information-A. Selected Financial Data."
Total operating revenues: Operating revenues decreased by $72.3 million to $230.7 million for the year ended December 31, 2019 compared to $303.0 million in 2018. This was principally due to a decrease of:

• $90.4 million in revenue as a result of lower utilization, higher number of drydocking days and lower charterhire rates for our fleet for the year ended December 31, 2019 compared to the same period in 2018. During the year ended December 31, 2019, the majority of our fleet was scheduled for drydocking, resulting in 278 days of off-hire in aggregate, compared to 28 days of off-hire during the same period in 2018; and

• $2.3 million decrease in vessel and other management fees revenue for the year ended December 31, 2019 compared to the same period in 2018, mainly due to the wind down of OneLNG during 2018.
This was partially offset by the:
• $20.4 million increase in revenue from the Golar Viking as she was mostly on-hire during the year ended December 31, 2019, compared to being on commercial waiting time until December 2018.

Average daily TCE: As a result of lower voyage expenses offsetting the decrease in operating revenues, the average daily TCE for the year ended December 31, 2019 increased marginally to $44,400 compared to $43,700 for the same period in 2018.
Vessel operating expenses: Vessel operating expenses decreased by $2.9 million to $67.6 million for the year ended December 31, 2019, compared to $70.5 million for the same period in 2018, primarily due to a decrease of:

• $3.1 million in reactivation and operating costs of the Golar Viking as she was taken out of lay-up in January 2018;
• $1.8 million in expenses in relation to the Gandria as a result of the generic works in anticipation of her conversion into a FLNG at the start of 2018; and

• $1.1 million in expenses in relation to the Gimi in the year ended December 31, 2019, as we commenced capitalization of costs associated with her conversion to a FLNG following receipt of the Limited Notice to Proceed in December 2018 to service the Gimi GTA Project.
This was partially offset by an increase in non-capitalizable vessel operating costs of $2.8 million net increase as a result of the scheduled drydocking in the year ended December 31, 2019.

Voyage, charterhire and commission expenses: Largely relates to charterhire expenses, fuel costs associated with commercial waiting time and vessel positioning costs. While a vessel is on-hire, fuel costs are typically paid by the charterer, whereas during periods of commercial waiting time, fuel costs are paid by us. The decrease in voyage, charterhire and commission expenses of $66.1 million to $38.4 million for the year ended December 31, 2019 compared to $104.5 million for the same period in 2018, is

to $104.5 million for the same period in 2018, is principally due to a decrease of:

• $56.4 million reduction in voyage expenses as a result of decreased utilization of our vessels; and
• $15.2 million reduction in bunker consumption as the majority of our fleet underwent drydocking for a total of 278 days in aggregate, compared to 28 days during the same period in 2018.

This was partially offset by the $4.6 million increase in costs in relation to the Golar Arctic, as she was mostly on commercial waiting time for the year ended December 31, 2019, compared to full utilization during the same period in 2018.
Administrative expenses: Administrative expenses decreased by $0.9 million to $50.8 million for the year ended December 31, 2019 compared to $51.7 million for the same period in 2018, principally due to a decrease in corporate expenses and share options expenses.

Project development expenses: Project development expenses decreased by $3.1 million to $2.1 million for the year ended December 31, 2019 compared to $5.2 million for the same period in 2018, principally due to a decrease in non-capitalized project-related expenses comprising of legal, professional and consultancy costs.

Depreciation and amortization: Depreciation and amortization decreased by $0.6 million to $64.9 million for the year ended December 31, 2019 compared to $65.5 million for the same period in 2018, principally due to a decrease of $0.9 million in Golar Viking depreciation for the year ended December 31, 2019, compared to the same period in 2018, as a result of a $34.3 million impairment charge on the vessel and equipment recognized in March 2019.

Impairment of long-term assets: Impairment of long-term assets increased by $42.1 million for the year ended December 31,
2019 due to a:

• $34.3 million impairment charge on vessel and equipment associated with our LNG carrier, the Golar Viking. In March 2019, we signed an agreement with LNG Hrvatska for the future sale of the Golar Viking once converted into an FSRU, following the completion of its current charter lease term. Although the sale is not expected to close until the fourth quarter of 2020, the transaction triggered an immediate impairment test. As the current carrying value of the vessel exceeds the price that a market

of the vessel exceeds the price that a market participant would pay for the vessel at the measurement date, a non-cash impairment charge of $34.3 million was recognized. The fair value was based on average broker valuations as of the measurement date and represents the exit price in the principal LNG carrier sales market; and

• $7.3 million impairment charge associated with our investment in OLT Offshore LNG Toscana S.P.A. ("OLT-O"). In May 2019, a major shareholder in OLT-O sold its shareholding which triggered an assessment of the recoverability of the carrying value of our 2.6% investment in OLT-O. As the carrying value of our investment exceeded the representative fair value, we wrote off our investment.
Other operating gains: Other operating gains comprised of:

• $9.3 million and $50.7 million recovered in connection with the ongoing arbitration proceedings arising from the delays and the termination of the Golar Tundra time charter with a former charterer, for the year ended December 31, 2019 and 2018, respectively. The amount for the year ended December 31, 2019 represents the final payment to settle these proceedings; and
• $4.0 million loss of hire insurance proceeds on the Golar Viking for the year ended December 31, 2019.

 |
| table | |          | December 31, |          |
----------------------------------------------------------------------------------------------- | -------- | ------------ | -------- | --------
(in thousands of $, except average daily TCE)                                                   | 2019     | 2018         | Change   | % Change
Total operating revenues                                                                        | 230,654  | 302,979      | (72,325) | (24)%
Vessel operating expenses                                                                       | (67,601) | (70,543)     | 2,942    | (4)%
Voyage, charterhire and commission expenses (including expenses from collaborative arrangement) | (38,381) | (104,463)    | 66,082   | (63)%
Administrative expenses                                                                         | (50,801) | (51,716)     | 915      | (2)%
Project development expenses                                                                    | (2,050)  | (5,165)      | 3,115    | (60)%
Depreciation and amortization                                                                   | (64,945) | (65,496)     | 551      | (1)%
Impairment of long-term assets                                                                  | (42,098) | —            | (42,098) | 100%
Other operating gains                                                                           | 13,295   | 50,740       | (37,445) | (74)%
Operating (loss)/income                                                                         | (21,927) | 56,336       | (78,263) | (139)%
Equity in net losses of affiliates                                                              | (22,565) | (138,677)    | 116,112  | (84)%
Other Financial Data:                                                                           |          |              |          |
Average Daily TCE (1) (to the closest $100)                                                     | 44,400   | 43,700       | 700      | 2%
Calendar days less scheduled off-hire days                                                      | 3,840    | 3,987        | (147)    | (4)% |


| _id | d1b37f9b4 |
| title |  |
| text | 16. Segment, Geographic, and Significant Customer Information

We operate in one industry segment: the design, manufacturing, marketing, and technical support of high-performance storage and data management solutions. We conduct business globally, and our sales and support activities are managed on a geographic basis. Our management reviews financial information presented on a consolidated basis, accompanied by disaggregated information it receives from our internal management system about revenues by geographic region, based on the location from which the customer

based on the location from which the customer relationship is managed, for purposes of allocating resources and evaluating financial performance. We do not allocate costs of revenues, research and development, sales and marketing, or general and administrative expenses to our geographic regions in this internal management reporting because management does not review operations or operating results, or make planning decisions, below the consolidated entity level.

The majority of our assets, excluding cash, cash equivalents, short-term investments and accounts receivable, were attributable to our domestic operations. The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions):

 |
| table | | April 26, 2019 | April 27, 2018
------------- | -------------- | --------------
U.S.          | $ 159          | $ 853
International | 3,740          | 4,538
Total         | $ 3,899        | $ 5,391 |