| _id | d1b2ff39a |
| title |  |
| text | Results of Operations
Consolidated Results of Operations
The following tables present certain financial data for the periods indicated (dollars in millions):

 |
| table | |          | Year ended December 31, |
------------------------------------------------------------------------------ | -------- | ----------------------- | --------
                                                                               | 2019     | 2018                    | 2017
Revenues                                                                       | $1,177.2 | $1,114.0                | $1,051.6
Expenses:                                                                      |          |                         |
Operating expenses                                                             | 646.0    | 625.4                   | 569.5
Depreciation and amortization                                                  | 236.2    | 217.0                   | 206.5
Transition and integration costs                                               | 5.4      | 6.6                     | 13.1
Total expenses                                                                 | 887.6    | 849.0                   | 789.1
Operating income                                                               | 289.6    | 265.0                   | 262.5
Operating margin                                                               | 24.6%    | 23.8%                   | 25.0%
Interest expense, net                                                          | (63.5)   | (51.7)                  | (57.5)
Other expense, net                                                             | (1.4)    | (7.1)                   | (12.6)
Earnings before income taxes and equity in losses of unconsolidated affiliates | 224.7    | 206.2                   | 192.4
Income tax expense (benefit)                                                   | 41.9     | 37.7                    | (61.8)
Earnings before equity in losses of unconsolidated affiliates                  | 182.8    | 168.5                   | 254.2
Equity in losses of unconsolidated affiliates, net of tax                      | (74.0)   | —                       | —
Net earnings                                                                   | $108.8   | $168.5                  | $254.2
Earnings per share:                                                            |          |                         |
Net earnings per share attributable to Black Knight common shareholders:       |          |                         |
Diluted                                                                        | $0.73    | $1.14                   | $1.47
Weighted average shares of common stock outstanding:                           |          |                         |
Diluted                                                                        | 148.6    | 148.2                   | 152.4 |


| _id | d1b37ff2c |
| title |  |
| text | (b) Purchase Commitments with Contract Manufacturers and Suppliers

We purchase components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with contract manufacturers and suppliers that either allow them to procure inventory based upon criteria as defined by us or establish the parameters defining our requirements. A significant portion of our reported

A significant portion of our reported purchase commitments arising from these agreements consists of firm, noncancelable, and unconditional commitments. Certain of these purchase commitments with contract manufacturers and suppliers relate to arrangements to secure long-term pricing for certain product components for multi-year periods. In certain instances, these agreements allow us the option to cancel, reschedule, and adjust our requirements based on our business needs prior to firm orders being placed.

The following table summarizes our purchase commitments with contract manufacturers and suppliers (in millions):
We record a liability for firm, noncancelable, and unconditional purchase commitments for quantities in excess of our future demand forecasts consistent with the valuation of our excess and obsolete inventory. As of July 27, 2019 and July 28, 2018, the liability for these purchase commitments was $129 million and $159 million, respectively, and was included in other current liabilities.

 |
| table | Commitments by Period | July 27, 2019 | July 28, 2018
--------------------- | ------------- | -------------
Less than 1 year      | $4,239        | $5,407
1 to 3 years          | 728           | 710
3 to 5 years          | —             | 360
Total                 | $4,967        | $6,477 |


| _id | d1b3bd6b0 |
| title |  |
| text | Purchases of Equity Securities by the Issuer and Affiliated Purchasers
The following table provides information with respect to the shares of common stock repurchased by us during the three months ended April 26, 2019:

In May 2003, our Board of Directors approved a stock repurchase program. As of April 26, 2019, our Board of Directors has authorized the repurchase of up to $13.6 billion of our common stock, including a $4.0 billion increase approved by our Board of Directors in April 2018. Since inception of the program through April 26, 2019, we repurchased a total of 313 million shares of our common stock for an aggregate purchase price of $11.7 billion. Under this program, we may purchase shares of our outstanding

we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. The stock repurchase program may be suspended or discontinued at any time.

 |
| table | Period                               | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares That May Yet Be Purchased Under The Repurchased Program
------------------------------------ | -------------------------------- | ---------------------------- | ---------------------------------------------------------------------- | ------------------------------------------------------------------------------------------
                                     | (Shares in thousands)            |                              | (Shares in thousands)                                                  | (Dollars in millions)
January 26, 2019 - February 22, 2019 | 262                              | $ 64.77                      | 306,255                                                                | $ 2,372
February 23, 2019 - March 22, 2019   | 3,380                            | $ 65.53                      | 309,635                                                                | $ 2,150
March 23, 2019 - April 26, 2019      | 3,608                            | $72.49                       | 313,244                                                                | $ 1,889
Total                                | 7,250                            | $68.97                       |                                                                        | |


| _id | d1b36aab4 |
| title |  |
| text | The following table presents summary results for each of our three businesses for each of fiscal 2019 , 2018 and 2017 :

(1) Cloud and license revenues presented for management reporting included revenues related to cloud and license obligations that would have otherwise been recorded by the acquired businesses as independent entities but were not recognized in our consolidated statements of operations for the periods presented due to business combination accounting requirements. See Note 9 for an explanation of these adjustments and the table below for a reconciliation of our total operating segment revenues to our total

our total operating segment revenues to our total consolidated revenues as reported in our consolidated statements of operations

(2) The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of product development, general and administrative and certain other allocable expenses, net. Additionally, the margins reported above do not reflect amortization of intangible assets, acquisition related and other expenses, restructuring expenses, stock-based compensation, interest expense or non-operating income, net. refer to the table below for a reconciliation of our total margin

below for a reconciliation of our total margin for operating segments to our income before provision for income taxes as reported per our consolidated statements of operations.

 |
| table | Year Ended May 31,                          |         |         |
------------------------------------------- | ------- | ------- | -------
(in millions)                               | 2019    | 2018    | 2017
Cloud and license:                          |         |         |
revenues (1)                                | $32,582 | $32,041 | $30,452
Cloud services and license support expenses | 3,597   | 3,441   | 2,881
Sales and marketing expenses                | 7,398   | 7,213   | 6,770
Margin (2)                                  | $21,587 | $21,387 | $20,801
Hardware:                                   |         |         |
revenues                                    | $3,704  | $3,994  | $4,152
Hardware products and support expenses      | 1,327   | 1,547   | 1,618
Sales and marketing expenses                | 520     | 643     | 825
Margin (2)                                  | $1,857  | $1,804  | $1,709
Services:                                   |         |         |
revenues                                    | $3,240  | $3,395  | $3,359
Services expenses                           | 2,703   | 2,729   | 2,661
Margin (2)                                  | $537    | $666    | $698
Totals:                                     |         |         |
revenues (1)                                | $39,526 | $39,430 | $37,963
Expenses                                    | 15,545  | 15,573  | 14,755
Margin (2)                                  | $23,981 | $23,857 | $23,208 |


| _id | d1b39f390 |
| title |  |
| text | 9. BALANCE SHEET DETAILS (Continued)
Other long-term liabilities consist of the following (in thousands):

 |
| table | | Fiscal year-end |
--------------------------------------------------- | --------------- | --------
                                                    | 2019            | 2018
Long-term taxes payable                             | $37,385         | $36,336
Deferred compensation (see Note 13)                 | 39,715          | 40,895
Deferred tax liabilities (see Note 16)              | 27,785          | 26,339
Deferred revenue                                    | 8,012           | 5,091
Asset retirement obligations liability (see Note 2) | 4,934           | 4,529
Defined benefit plan liabilities (see Note 14)      | 45,862          | 37,528
Other long-term liabilities                         | 2,188           | 1,238
Total other long-term liabilities                   | $165,881        | $151,956 |


| _id | d1b347492 |
| title |  |
| text | 15 Goodwill and other intangible assets continued
Impairment
In accordance with the requirements of IAS 36 (Impairment of Assets), goodwill is allocated to the Group’s cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the business combination that gave rise to the goodwill.

During 2019, we performed a review on the basis of identification of our individual CGUs. As a result of this review, we have consolidated a number of our current individual CGUs into groups of CGUs that represent the lowest level to which goodwill is monitored for internal management purposes, being each operating segment as disclosed in Note 3. As a result, we performed an impairment review at an operating segment CGU level, the breakdown of the goodwill value at 31st December across these is shown

value at 31st December across these is shown below:

In order to complete the transition to performing goodwill impairment reviews at an operating segment level, we also performed a goodwill impairment review as at 31st December 2019 under the historical CGU basis. The result of this impairment review led to an impairment of £4.2m being recognised in respect of Watson-Marlow FlowSmart. No other impairment was recognised.
The goodwill balance has been tested for annual impairment on the following basis:

• the carrying values of goodwill have been assessed by reference to value in use. These have been estimated using cash flows based on forecast information for the next financial year which have been approved by the Board and then extended up to a further 9 years based on the most recent forecasts prepared by management; • pre-tax discount rates range from 11-12% (2018: 10-15%); • short to medium-term growth rates vary between 3-8% depending on detailed forecasts (2018: 2-8%). The range in rates excludes

(2018: 2-8%). The range in rates excludes the annualised impact of owning Thermocoax for a first full year in 2020. The short to medium-term is defined as not more than 10 years; and • long-term growth rates are set using IMF forecasts and vary between 1.8-2.5% (2018: 0.8-3.0%).

 |
| table | | 2019 Goodwill | 2018 Goodwill
-------------------------- | ------------- | -------------
                           | £m            | £m
Steam Specialties          | 113.0         | 119.3
Electric Thermal Solutions | 244.7         | 183.0
Watson-Marlow              | 60.0          | 65.7
Total goodwill             | 417.7         | 368.0 |


| _id | d1b2fc51e |
| title |  |
| text | 10.8. Non-financial assets fair value measurement
The Group has classified its non-financial assets held at fair value into the three levels prescribed in note 9.8 to provide an indication about the reliability of inputs used to determine fair value.
Recognised fair value measurements

The Group’s policy is to recognise transfers into and out of fair value hierarchy levels at the end of the reporting period. There were no transfers between levels 1 and 2 for recurring fair value measurements during the year. During the year ended 30 June 2019 the Group transferred $2.1m from level 3 to level 2 following the reclassification of assets from freehold investment properties to assets held for sale, and $5.7m from level 2 to level 3 following the reclassification of assets from assets held for

reclassification of assets from assets held for sale to freehold investment properties, as detailed in note 10.2.

In the prior year ended 30 June 2018 the Group transferred $4.4m from level 3 to level 2 following the reclassification of an asset from freehold investment properties to assets held for sale.
Fair value measurements using significant observable inputs (level 2)

The fair value of assets held for sale is determined using valuation techniques which maximise the use of observable market data. For the years ended 30 June 2019 and 30 June 2018, the Group has valued assets classified as held for sale at the contractually agreed sales price less estimated cost of sale or other observable evidence of market value.
Fair value measurements using significant unobservable inputs (level 3)

Valuation techniques used to determine level 3 fair values and valuation process Investment properties, principally storage buildings, are held for rental to customers requiring selfstorage facilities and are carried at fair value. Changes in fair values are presented in profit or loss as fair value adjustments.

Fair values are determined by a combination of independent valuations and Director valuations. The independent valuations are performed by an accredited independent valuer. Investment properties are independently valued on a rotational basis every three years unless the underlying financing requires a more frequent valuation cycle. For properties subject to an independent valuation report the Directors verify all major inputs to the valuation and review the results with the independent valuer. The Director

results with the independent valuer. The Director valuations are completed by the NSH Group Board. The valuations are determined using the same techniques and similar estimates to those applied by the independent valuer.

The Group obtains the majority of its external independent valuations at each financial year end. The Group’s policy is to maintain the valuation of the investment property valued in the preceding year at external valuation, unless there is an indication of a significant change to the property’s valuation inputs.

 |
| table | |       | Level 1 | Level 2 | Level 3   | Total
------------------------------- | ----- | ------- | ------- | --------- | ---------
                                | Notes | $'000   | $'000   | $'000     | $'000
At 30 June 2019                 |       |         |         |           |
Assets held for sale            | 10.2  | -       | 1,107   | -         | 1,107
Leasehold investment properties | 10.4  | -       | -       | 215,279   | 215,279
Freehold investment properties  | 10.4  | -       | -       | 1,874,698 | 1,874,698
                                |       | -       | 1,107   | 2,089,977 | 2,091,084
At 30 June 2018                 |       |         |         |           |
Assets held for sale            | 10.2  | -       | 5,713   | -         | 5,713
Leasehold investment properties | 10.4  | -       | -       | 207,664   | 207,664
Freehold investment properties  | 10.4  | -       |         | 1,377,924 | 1,377,924 |


| _id | d1b36fdf2 |
| title |  |
| text | Long-term obligations consist of the following (in thousands):
(1) Net of debt issuance costs of $6.4 million and $11.2 million at September 28, 2019 and September 29, 2018, respectively.

 |
| table | | Fiscal year-end |
-------------------------------------------- | --------------- | --------
                                             | 2019            | 2018
Euro Term Loan due 2024(1)                   | $385,208        | $411,661
1.3% Term loan due 2024                      | 5,466           | 7,242
1.0% State of Connecticut term loan due 2023 | 1,028           | 1,406
Capital lease obligations                    | 536             | 402
Total long-term obligations                  | $392,238        | $420,711 |


| _id | d1b33a616 |
| title |  |
| text | Production start-up

Production start-up expense consists primarily of employee compensation and other costs associated with operating a production line before it is qualified for full production, including the cost of raw materials for solar modules run through the production line during the qualification phase and applicable facility related costs. Costs related to equipment upgrades and implementation of manufacturing process improvements are also included in production start-up expense as well as costs related to the

start-up expense as well as costs related to the selection of a new site, related legal and regulatory costs, and costs to maintain our plant replication program to the extent we cannot capitalize these expenditures. In general, we expect production start-up expense per production line to be higher when we build an entirely new manufacturing facility compared with the addition or replacement of production lines at an existing manufacturing facility, primarily due to the additional infrastructure investment

due to the additional infrastructure investment required when building an entirely new facility.

The following table shows production start-up expense for the years ended December 31, 2019, 2018, and 2017:

During 2019, we incurred production start-up expense at our new facility in Lake Township, Ohio. We also incurred production start-up expense at our second facility in Ho Chi Minh City, Vietnam in early 2019. During 2018, we incurred production start-up expense for the transition to Series 6 module manufacturing at our facilities in Kulim, Malaysia and Ho Chi Minh City, Vietnam. We also incurred production start-up expense for the transition to Series 6 module manufacturing at our facility in Perrysburg,

manufacturing at our facility in Perrysburg, Ohio in early 2018.

 |
| table | |         | Years Ended |         |                | Change |                |
---------------------- | ------- | ----------- | ------- | -------------- | ------ | -------------- | ----
(Dollars in thousands) | 2019    | 2018        | 2017    | 2019 over 2018 |        | 2018 over 2017 |
Production start-up    | $45,915 | $90,735     | $42,643 | $(44,820)      | (49)%  | $48,092        | 113%
% of net sales         | 1.5%    | 4.0%        | 1.4%    |                |        |                | |


| _id | d1b2e4da6 |
| title |  |
| text | 30. EMPLOYEE BENEFIT PLANS (cont.)
The above sensitivities are hypothetical and should be used with caution. Changes in amounts based on a one percent variation in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in amounts may not be linear. The sensitivities have been calculated independently of changes in other key variables. Changes in one factor may result in changes in another, which could amplify or reduce certain sensitivities.

The Company expects to make contributions of $5.1 million to the defined benefit plans and $0.6 million to the defined contribution plan of Telesat Canada during the next fiscal year.

 |
| table | | Pension     |             | Other       |
------------------------------ | ----------- | ----------- | ----------- | -----------
As at December 31, 2018        | 1% increase | 1% decrease | 1% increase | 1% decrease
Discount rate                  | $(39,145)   | $49,361     | $(2,471)    | $3,224
Future salary growth           | $7,572      | $(6,919)    | N/A         | N/A
Medical and dental trend rates | N/A         | N/A         | $1,703      | $(1,280) |


| _id | d1b33a9ea |
| title |  |
| text | 12. Restructuring

In fiscal 2019, the Company initiated a restructuring plan to increase efficiency in its sales, marketing and distribution functions as well as reduce costs across all functional areas. During the year ended March 31, 2019, the Company incurred total restructuring charges of $14,765. These restructuring charges relate primarily to severance and related costs associated with headcount reductions and lease abandonment charges associated with two leases. These charges include $2,632 of stock- based

These charges include $2,632 of stock- based compensation related to modifications of existing unvested awards granted to certain employees impacted by the restructuring plan.

The activity in the Company’s restructuring accruals for the year ended March 31, 2019 is summarized as follows:
As of March 31, 2019, the outstanding restructuring accruals primarily relate to future severance and lease payments.
(In thousands, except per share data)

 |
| table | | Lease abandonment charges | Severance & payroll related charges | Total
------------------------- | ------------------------- | ----------------------------------- | --------
Balance at March 31, 2018 | $—                        | $—                                  | $—
Restructuring charges     | 1,034                     | 14,606                              | 15,640
Payments                  | (540)                     | (12,642)                            | (13,182)
Accrual reversals         | —                         | (875)                               | (875)
Balance at March 31, 2019 | $494                      | $1,089                              | $1,583 |


| _id | d1b3c5fe0 |
| title |  |
| text | Other income (expense)
nm—not meaningful
Interest income increased $1.2 million primarily as a result of higher weighted-average balances of cash, cash equivalents and investments and higher yields on investments.
Interest expense increased $5.3 million primarily as a result of interest expense of $3.3 million associated with our long-term debt and our financing lease obligation of $2.0 million in connection with the construction of our Lexington, MA – U.S. headquarters.

Foreign exchange expense and other, net decreased by $3.1 million primarily as a result of a decrease in foreign exchange expense of $1.9 million, sublease income of $0.9 million and a gain on a previously held asset related to the Solebit acquisition of $0.3 million.

 |
| table | | Year ended March 31, |                        | Period-to-period change |
--------------------------------------- | -------------------- | ---------------------- | ----------------------- | --------
                                        | 2019                 | 2018                   | Amount                  | % Change
                                        |                      | (dollars in thousands) |                         |
Other income (expense):                 |                      |                        |                         |
Interest income                         | $ 2,515              | $ 1,310                | $ 1,205                 | 92 %
Interest expense                        | (5,940)              | (598)                  | (5,342)                 | nm
Foreign exchange expense and other, net | (356)                | (3,439)                | 3,083                   | nm
Total other income (expense), net       | $ (3,781)            | $ (2,727)              | $ (1,054)               | nm |


| _id | d1b34ca32 |
| title |  |
| text | 12 Directors’ Remuneration
Directors’ emoluments represent all earnings and aggregate contributions to pension schemes made during the year as a Director of Sophos Group plc and its subsidiaries. Further details can be found in the Group’s Remuneration Report on pages 91 to 101.

 |
| table | | Year-ended 31 March 2019 | Year-ended 31 March 2018
---------------------------------- | ------------------------ | ------------------------
                                   | $M                       | $M
Directors’ emoluments              | 2.3                      | 3.3
Gains on exercise of share options | 3.6                      | 3.5
Gains on vesting of LTIP awards    | 14.5                     | 4.2
Total Directors’ remuneration      | 20.4                     | 11.0 |


| _id | d1b362f12 |
| title |  |
| text | Orders at Mobility grew to a record high on a sharp increase in volume from large orders, which the Strategic Company won across the businesses, most notably in the rolling stock and the customer services businesses. Among the major contract wins were a € 1.6 billion order for metro trains in the U. K., a € 1.2 billion contract for high-speed trains including maintenance in Russia, a € 0.8 billion order for trainsets including service in Canada, a € 0.7 billion contract for diesel-electric locomotives

billion contract for diesel-electric locomotives including a service agreement in the U. S. and two orders in Germany worth € 0.4 billion and € 0.3 billion, respectively, for regional multiple-unit trainsets. In fiscal 2018, Mobility also gained a number of significant contracts across the regions.

Revenue grew slightly as double-digit growth in the customer services business was largely offset by a decline in the rail infrastructure business. Revenue in the rolling stock business remained close to the prior-year level due to unfavorable timing effects related to the execution of large rail projects, which the business began to ramp up late in the fiscal year. Mobility continued to operate with high profitability in fiscal 2019, including a strong contribution to Adjusted EBITA from the services

contribution to Adjusted EBITA from the services business. Severance charges were € 20 million, up from € 14 million in fiscal 2018. Mobility’s order backlog was € 33 billion at the end of the fiscal year, of which € 8 billion are expected to be converted into revenue in fiscal 2020.

Order growth reflected overall strong markets for Mobility in fiscal 2019, with different dynamics among the regions. Market development in Europe was characterized by continuing awards of mid-size and large orders, particularly in the U. K., Germany and Austria. Within the C. I. S., large projects for high-speed trains and services were awarded in Russia. Demand in the Middle East and Africa was held back by ongoing uncertainties related to budget constraints and political climates. In the Americas

and political climates. In the Americas region, stable investment activities were driven by demand for mainline

and urban transport, especially in the U. S. and Canada.

Within the Asia, Australia region, Chinese markets saw ongoing investments in high-speed trains, urban transport, freight logistics and rail infrastructure, while India continues to invest in modernizing the country’s transportation infrastructure. For fiscal 2020, we expect markets served by Mobility to grow moderately with increasing demand for digital solutions. Overall, rail transport and intermodal mobility solutions are expected to remain a focus as urbanization continues to progress around the

as urbanization continues to progress around the world. In emerging countries, rising incomes are expected to result in greater demand for public transport solutions.

 |
| table | |        | Fiscal year |        | % Change
--------------------- | ------ | ----------- | ------ | --------
(in millions of €)    | 2019   | 2018        | Actual | Comp.
Orders                | 12,894 | 11,025      | 17 %   | 16 %
Revenue               | 8,916  | 8,821       | 1 %    | 0 %
Adjusted EBITA        | 983    | 958         | 3 %    |
Adjusted EBITA margin | 11.0 % | 10.9 %      |        | |


| _id | d1b3b8660 |
| title |  |
| text | 9. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:

 |
| table | | December31, |
-------------------------------------------------------------------------- | ----------- | ------
                                                                           | 2019        | 2018
Accrued payroll and employee benefits                                      | $116.9      | $105.9
Derivative liabilities                                                     | 93.8        | 120.5
Current portion of operating lease liabilities                             | 39.5        | —
Tax-related accruals                                                       | 30.8        | 38.4
Accrued legal and professional                                             | 28.7        | 10.9
Accrued marketing and advertising expenses                                 | 14.7        | 19.4
Accrued acquisition-related expenses and acquisition consideration payable | 8.3         | 74.4
Accrued other                                                              | 33.3        | 44.8
                                                                           | $366.0      | $414.3 |


| _id | d1b37ac20 |
| title |  |
| text | 12. Derivative Instruments
(a) Summary of Derivative Instruments

We use derivative instruments primarily to manage exposures to foreign currency exchange rate, interest rate, and equity price risks. Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates, interest rates, and equity prices. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We do, however, seek to mitigate such risks by

We do, however, seek to mitigate such risks by limiting our counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management does not expect material losses as a result of defaults by counterparties.

The notional amounts of our outstanding derivatives are summarized as follows (in millions):

 |
| table | | July 27, 2019 | July 28, 2018
-------------------------------------------------- | ------------- | -------------
Derivatives designated as hedging instruments:     |               |
Foreign currency derivatives—cash flow hedges      | $663          | $147
Interest rate derivatives                          | 4,500         | 6,750
Net investment hedging instruments                 | 309           | 250
Derivatives not designated as hedging instruments: |               |
Foreign currency derivatives                       | 2,708         | 2,298
Total return swaps—deferred compensation           | 574           | 566
Total                                              | $8,754        | $10,011 |


| _id | d1b32b986 |
| title |  |
| text | Contractual Obligations and Commercial Commitments
The following table summarizes our non-cancelable contractual obligations and commercial commitments as of the end of 2019 and the effect such obligations and commitments are expected to have on our liquidity and cash flows in future fiscal periods (in thousands):
(1) Certain of our wafer manufacturers require us to forecast wafer starts several months in advance. We are committed to take delivery of and pay for a portion of forecasted wafer volume.

(2) Other commercial commitments are included as liabilities on our consolidated balance sheets as of the end of 2019.
(3) Does not include unrecognized tax benefits of $2.1 million as of the end of 2019. See Note 10 of the Consolidated Financial Statements.

 |
| table | |         |                  |           | Payments Due by Period |
------------------------------------------------------------ | ------- | ---------------- | --------- | ---------------------- | -----------------
                                                             | Total   | Less than 1 year | 1-3 Years | 4-5 Years              | More than 5 Years
Contractual cash obligations:                                |         |                  |           |                        |
Operating leases                                             | $2,040  | $611             | $902      | $527                   | $—
Finance software lease obligations                           | 514     | 214              | 300       | —                      | —
Wafer purchases (1)                                          | 57      | 57               | —         | —                      | —
Other purchase commitments                                   | 413     | 386              | 27        | —                      | —
Total contractual cash obligations                           | 3,024   | 1,268            | 1,229     | 527                    | —
Other commercial commitments (2):                            |         |                  |           |                        |
Revolving line of credit                                     | 15,000  | 15,000           | —         | —                      | —
Total commercial commitments                                 | 15,000  | 15,000           | —         | —                      | —
Total contractual obligations and commercial commitments (3) | $18,024 | $16,268          | $1,229    | $527                   | — |


| _id | d1b36ed08 |
| title |  |
| text | 2. Inventories
Inventories as of September 28, 2019 and September 29, 2018 consisted of the following (in thousands):
In certain circumstances, per contractual terms, customer deposits are received by the Company to offset obsolete and excess inventory risks. The total amount of customer deposits related to inventory and included within current liabilities on the accompanying Consolidated Balance Sheets as of September 28, 2019 and September 29, 2018 was $136.5 million and $87.7 million, respectively.

In fiscal 2019, the Company adopted and applied Topic 606 to all contracts using the modified retrospective method of adoption. The prior year comparative information has not been restated and continues to be reported under the accounting standards in effect for fiscal 2018. Refer to Note 15, "Revenue from Contracts with Customers," for further information.

 |
| table | | 2019     | 2018
---------------------- | -------- | --------
Raw materials          | $577,545 | $579,377
Work-in-process        | 49,315   | 102,337
Finished goods         | 74,078   | 112,632
Total inventories, net | $700,938 | $794,346 |


| _id | d1b371d0a |
| title |  |
| text | Liquidity and Capital Resources

Our cash, cash equivalents, and short-term investments consist primarily of money market funds and U.S. treasury bills. All of our short-term investments are classified as available-for-sale. The securities are stated at market value, with unrealized gains and losses reported as a component of accumulated other comprehensive income, within stockholders’ equity. As of December 31, 2019, our cash, cash equivalents, and short-term investments totaled $89.5 million, a decrease of $35.4 million from $124.9

million, a decrease of $35.4 million from $124.9 million on December 31, 2018.

A summary of select cash flow information for the years ended December 31, 2019, 2018 and 2017 (in thousands):
2019 Compared to 2018

Cash provided by (used in) operating activities - Net cash used in operating activities was $34.1 million during 2019 compared to $69.9 million cash provided by operating activities during 2018, primarily due to a $74.4 million decrease in net income, a $25.6 million decrease in deferred revenue, a $4.2 million increase in other assets, a $2.1 million increase in accounts and other receivables and a $0.9 million decrease in accrued compensation partially offset by a $3.8 million increase in other long-term

by a $3.8 million increase in other long-term liabilities. The decrease in deferred revenue primarily reflects the effect of the adoption of ASC 606 on January 1, 2018. Cash used in operating activities was also affected by a $0.5 million decrease in non-cash charges primarily related to a $3.2 million decrease in stock-based compensation expense, partially offset by a $0.9 million impairment charge related to the SJ Facility right-of-use lease asset and a $1.3 million increase in depreciation and

and a $1.3 million increase in depreciation and amortization expense. The increase in depreciation and amortization expense is due primarily to amortization of right-of-use lease assets and the shortened useful life of the SJ Facility leasehold improvements and a $0.3 million increase in deferred income taxes.

Cash provided by investing activities - Net cash provided by investing activities during 2019 was $10.9 million, a decrease of $2.7 million compared to $8.2 million cash provided by investing activities during 2018. Net cash provided by investing activities during 2019 consisted of maturities of short-term investments of $20.0 million. This was partially offset by purchases of short-term investments of $8.9 million and purchases of property, plant and equipment of $0.2 million. Net cash provided by

equipment of $0.2 million. Net cash provided by investing activities during 2018 consisted of maturities of short-term investments of $26.0 million. This was partially offset by purchases of short-term investments of $17.7 million and purchases of property, plant, and equipment of $0.1 million.

Cash provided by financing activities — Net cash provided by financing activities during 2019 was $1.3 million, a decrease of $9.5 million compared to $8.2 million cash provided by financing activities during 2018. Net cash used in financing activities during 2019 consisted of $2.7 million used to purchase of treasury stock partially offset by $1.4 million in cash proceeds from stock option exercises and stock purchases under our employee stock purchase plan. Net cash provided by financing activities

plan. Net cash provided by financing activities during 2018 consisted primarily of $8.2 million in proceeds from stock option exercises and stock purchases under our employee stock purchase plan.

2018 Compared to 2017

Cash provided by (used in) operating activities - Net cash provided by operating activities was $69.9 million during 2018 compared to $43.8 million cash used in operating activities during 2017. The $113.8 million change was primarily driven by $99.6 million increase in net income (loss), from $45.3 million net loss for 2017 to $54.3 million net income for 2018 and $27.0 million increase in deferred revenue, partially offset by $7.0 million increase in other assets, $4.2 million increase in prepaid

in other assets, $4.2 million increase in prepaid expenses and other current assets, and $3.7 million decrease in accounts payable. The increases in deferred revenue and other non-current assets primarily reflected the effect of the adoption of ASC 606 on January 1, 2018. Cash provided by operating activities was also affected by an increase in non-cash charges of $2.6 million primarily related to higher stock-based compensation expense incurred for 2018 compared to 2017.

Cash provided by (used in) investing activities - Net cash provided by investing activities during 2018 was $8.2 million, a decrease of $2.8 million compared to $11.1 million cash provided by investing activities during 2017. Net cash provided by investing activities during 2018 consisted of maturities of short-term investments of $26.0 million partially offset by purchases of short-term investments of $17.7 million and purchases of property, plant and equipment of $0.1 million. Net cash provided by

equipment of $0.1 million. Net cash provided by investing activities during 2017 consisted of maturities of short-term investments of $35.0 million partially offset by purchases of short-term investments of $23.8 million and purchases of property, plant, and equipment of $0.1 million.

Cash provided by (used in) financing activities - Net cash provided by financing activities during 2018 was $8.2 million an increase of $7.7 million compared to $0.5 million net cash provided by financing activities during 2017. Net cash provided by financing activities during 2018 consisted primarily of $8.2 million in proceeds from stock option exercises and stock purchases under our employee stock purchase plan. Net cash provided by financing activities during 2017 consisted primarily of $0.8 million

during 2017 consisted primarily of $0.8 million proceeds from stock option exercises and stock purchases under our employee stock purchase plan partially offset by repurchases of treasury stock of $0.3 million.

We believe that our cash, cash equivalents, and short-term investments will be sufficient to meet our working capital needs for at least the next twelve months. Of our total cash, cash equivalents, and short-term investments of $89.5 million as of December 31, 2019, 5% was held by our foreign subsidiaries and subject to repatriation tax effects. Our intent is to permanently reinvest all of our earnings from foreign operations, and current plans do not anticipate that we will need funds generated from

anticipate that we will need funds generated from foreign operations to fund our domestic operations. We will continue to invest in, protect, and defend our extensive IP portfolio, which is expected to result in the continued use of cash. At December 31, 2019 there was $30.6 million remaining under our previously-approved share repurchase program. We anticipate that capital expenditures for property and equipment for the year ending December 31, 2020 will be less than $1.0 million. Cash from operations

be less than $1.0 million. Cash from operations could also be affected by various risks and uncertainties, including, but not limited to the risks detailed in Part I, Item 1A, Risk Factors of this Annual Report on Form 10-K.

 |
| table | |           | Years Ended December 31, |
--------------------------------------------------- | --------- | ------------------------ | ---------
                                                    | 2019      | 2018                     | 2017
Net cash (used in) provided by operating activities | $(34,099) | $69,924                  | $(43,829)
Net cash provided by investing activities           | $10,920   | $8,237                   | $11,068
Net cash (used in) provided by financing activities | $(1,331)  | $8,205                   | $518 |


| _id | d1b349954 |
| title |  |
| text | Operating Revenues and Selected Operating Statistics
(1) As of end of period (2) Excluding acquisitions and adjustments.
Consumer’s total operating revenues increased $1.3 billion, or 1.4%, during 2019 compared to 2018, primarily as a result of increases in Service and Other revenues, partially offset by a decrease in Wireless equipment revenue.

Service Revenue Service revenue increased $1.2 billion, or 1.8%, during 2019 compared to 2018, primarily due to increases in wireless service and Fios revenues, partially offset by decreases in wireline voice and DSL services.

Wireless service revenue increased $1.3 billion, or 2.5%, during 2019 compared to 2018, due to increases in wireless access revenue, driven by customers shifting to higher access plans including unlimited plans and increases in the number of devices per account, the declining fixed-term subsidized plan base and growth from reseller accounts. Wireless retail postpaid ARPA increased 2.3%.

For the year ended December 31, 2019, Fios revenues totaled $10.4 billion and increased $92 million, or 0.9%, compared to 2018. This increase was due to a 2.5% increase in Fios Internet connections, reflecting increased demand in higher broadband speeds, partially offset by a 5.1% decrease in Fios video connections, reflecting the ongoing shift from traditional linear video to over-the-top (OTT) offerings.

Service revenue attributable to wireline voice and DSL broadband services declined during 2019, compared to 2018. The declines are primarily due to a decrease of 9.1% in voice connections resulting primarily from competition and technology substitution with wireless and competing Voice over Internet Protocol (VoIP) and cable telephony services.

Wireless Equipment Revenue Wireless equipment revenue decreased $827 million, or 4.4%, during 2019 compared to 2018, as a result of declines in wireless device sales primarily due to an elongation of the handset upgrade cycle and increased promotions. These decreases were partially offset by a shift to higher priced units in the mix of wireless devices sold.

Other Revenue Other revenue includes non-service revenues such as regulatory fees, cost recovery surcharges, revenues associated with our device protection package, leasing and interest on equipment financed under a device payment plan agreement when sold to the customer by an authorized agent. Other revenue increased $1.0 billion, or 14.4%, during 2019 compared to 2018, primarily due to pricing increases related to our wireless device protection plans, as well as regulatory fees.

 |
| table | |          |          | (dollars in millions, except ARPA) |
----------------------------------------------------- | -------- | -------- | ---------------------------------- | ------
                                                      |          |          | Increase/ (Decrease)               |
Years Ended December 31,                              | 2019     | 2018     | 2019 vs. 2018                      |
Service                                               | $65,383  | $ 64,223 | $ 1,160                            | 1.8%
Wireless equipment                                    | 18,048   | 18,875   | (827)                              | (4.4)
Other                                                 | 7,625    | 6,664    | 961                                | 14.4
Total Operating Revenues                              | $ 91,056 | $ 89,762 | $ 1,294                            | 1.4
Connections (‘000):(1)                                |          |          |                                    |
Wireless retail connections                           | 94,544   | 94,507   | 37                                 | —
Wireless retail postpaid connections                  | 90,481   | 89,861   | 620                                | 0.7
Fios Internet connections                             | 5,902    | 5,760    | 142                                | 2.5
Fios video connections                                | 4,152    | 4,377    | (225)                              | (5.1)
Broadband connections                                 | 6,467    | 6,460    | 7                                  | 0.1
Voice connections                                     | 5,754    | 6,332    | (578)                              | (9.1)
Net Additions in Period (‘000):(2)                    |          |          |                                    |
Wireless retail                                       | 379      | 372      | 7                                  | 1.9
Wireless retail postpaid                              | 970      | 1,129    | (159)                              | (14.1)
Wireless retail postpaid phones                       | 737      | 498      | 239                                | 48.0
Churn Rate:                                           |          |          |                                    |
Wireless retail                                       | 1.28%    | 1.25%    |                                    |
Wireless retail postpaid                              | 1.05%    | 1.00%    |                                    |
Wireless retail postpaid phones                       | 0.79%    | 0.76%    |                                    |
Account Statistics:                                   |          |          |                                    |
Wireless retail postpaid ARPA                         | $ 118.13 | $115.48  | $ 2.65                             | 2.3
Wireless retail postpaid accounts (‘000)(1)           | 33,875   | 34,086   | (211)                              | (0.6)
Wireless retail postpaid connections per account(1)   | 2.67     | 2.64     | 0.03                               | 1.1 |


| _id | d1b2ea8fa |
| title |  |
| text | Americas 2019 Exit Plan
During the first quarter of 2019, the Company initiated a restructuring plan to simplify and refine its operating model in the U.S. (the “Americas 2019 Exit Plan”), in part to improve agent attrition and absenteeism. The Americas 2019 Exit Plan included closing customer engagement centers, consolidating leased space in various locations in the U.S. and management reorganization. The Company finalized the actions as of September 30, 2019.
Americas 2018 Exit Plan

Americas 2018 Exit Plan
During the second quarter of 2018, the Company initiated a restructuring plan to manage and optimize capacity utilization, which included closing customer engagement centers and consolidating leased space in various locations in the U.S. and Canada (the “Americas 2018 Exit Plan”). The Company finalized the site closures under the Americas 2018 Exit Plan as of December 31, 2018, resulting in a reduction of 5,000 seats.

The Company’s actions under both the Americas 2018 and 2019 Exit Plans resulted in general and administrative cost savings and lower depreciation expense.
The cumulative costs incurred to date related to cash and non-cash expenditures resulting from the Americas 2018 and 2019 Exit Plans are outlined below as of December 31, 2019 (in thousands):
(1) Included in “General and administrative” costs in the accompanying Consolidated Statements of Operations.

(2) Included in “Direct salaries and related costs” in the accompanying Consolidated Statements of Operations.
The Company has paid a total of $12.3 million in cash through December 31, 2019, of which $10.4 million related to the Americas 2018 Exit Plan and $1.9 million related to the Americas 2019 Exit Plan.

 |
| table | | Americas 2018 Exit Plan | Americas 2019 Exit Plan
--------------------------------------------- | ----------------------- | -----------------------
Lease obligations and facility exit costs (1) | $7,073                  | $—
Severance and related costs (2)               | 3,426                   | 191
Severance and related costs (1)               | 1,037                   | 2,155
Non-cash impairment charges                   | 5,875                   | 1,582
Other non-cash charges                        | —                       | 244
                                              | $17,411                 | $4,172 |


| _id | d1b2f48d2 |
| title |  |
| text | iv. Details of the Remuneration for the year ended March 31, 2019:
a. Non-Executive Directors:
@ As a policy, N Chandrasekaran, Chairman, has abstained from receiving commission from the
Company.
@@ In line with the internal guidelines of the Company, no payment is made towards commission to
the Non-Executive Directors of the Company, who are in full time employment with any other Tata
company.
* Relinquished the position of Independent Director w.e.f. July 10, 2018.

** Relinquished the position of Independent Director w.e.f. September 28, 2018.
*** Appointed as an Additional and Independent Director w.e.f. December 18, 2018.
**** Appointed as an Additional and Independent Director w.e.f. January 10, 2019.

 |
| table | |            | (` lakh)
---------------------------- | ---------- | ------------
Name                         | Commission | Sitting Fees
N Chandrasekaran, Chairman@  | -          | 3.60
Aman Mehta                   | 315.00     | 4.80
V Thyagarajan*               | 100.00     | 3.00
Prof Clayton M Christensen** | 75.00      | 0.30
Dr Ron Sommer                | 220.00     | 5.10
O P Bhatt                    | 215.00     | 7.50
Aarthi Subramanian@@         | -          | 5.70
Dr Pradeep Kumar Khosla      | 150.00     | 2.10
Hanne Sorensen***            | 50.00      | 0.60
Keki Mistry***               | 50.00      | 0.60
Don Callahan****             | 35.00      | 0.30
Total                        | 1,210.00   | 33.60 |


| _id | d1b30a4fc |
| title |  |
| text | Adjusted cash flow
A reconciliation showing the items that bridge between net cash from operating activities as reported under IFRS to an adjusted basis is given below. Adjusted cash from operations is used by the Board to monitor the performance of the Group, with a focus on elements of cashflow, such as Net capital expenditure, which are subject to day to day control by the business.

Adjusted cash conversion in 2019 is 84% (2018: 91%). Cash conversion is calculated as adjusted cash from operations divided by adjusted operating profit.
The adjusted cash flow is included in the Financial Review on page 58.

 |
| table | | 2019   | 2018
------------------------------------------------------------------------ | ------ | ------
                                                                         | £m     | £m
Net cash from operating activities as reported under IFRS                | 227.4  | 212.6
Acquisition and disposal costs                                           | 2.5    | 0.2
Net capital expenditure excluding acquired intangibles from acquisitions | (59.0) | (31.5)
Tax paid                                                                 | 78.4   | 61.6
Repayments of principal under lease liabilities                          | (11.2) | –
Adjusted cash from operations                                            | 238.1  | 242.9 |


| _id | d1a740c66 |
| title |  |
| text | Cash Flows
The following table sets forth selected consolidated cash flow information (in thousands):

Operating Activities Net cash provided by operating activities during the fiscal year ended August 31, 2019 was primarily due to increased accounts payable, accrued expenses and other liabilities, decreased inventories and non-cash expenses, partially offset by increased contract assets and accounts receivable. The increase in accounts payable, accrued expenses and other liabilities is primarily due to the timing of collections on accounts receivable sold under the securitization programs and the timing of

the securitization programs and the timing of purchases and cash payments. The decrease in inventories is primarily due to the adoption of ASU 2014-09 and the reclassification to contract assets for revenue recognized for over time customers, partially offset by an increase in inventories to support expected sales levels in the first quarter of fiscal year 2020. The increase in contract assets is due to the adoption of ASU 2014-09 and the timing of revenue recognition for over time customers. The increase

recognition for over time customers. The increase in accounts receivable is primarily driven by the amended and new securitization programs and higher sales and timing of collections.

Investing Activities Net cash used in investing activities during the fiscal year ended August 31, 2019 consisted primarily of capital expenditures principally to support ongoing business in the DMS and EMS segments and expenditures for assets acquired in connection with the initial and second closings of the acquisition of certain assets of JJMD, partially offset by proceeds and advances from the sale of property, plant and equipment and cash receipts on sold receivables under the asset-backed

on sold receivables under the asset-backed securitization programs.

Financing Activities Net cash used in financing activities during the fiscal year ended August 31, 2019 was primarily due to: (i) payments for debt agreements, (ii) the repurchase of our common stock, (iii) dividend payments and (iv) treasury stock minimum tax withholding related to vesting of restricted stock. Net cash used in financing activities was partially offset by: (i) borrowings under debt agreements and (ii) net proceeds from the exercise of stock options and issuance of common stock under the

options and issuance of common stock under the employee stock purchase plan.

 |
| table | |            | Fiscal Year Ended August 31, |
------------------------------------------------------------ | ---------- | ---------------------------- | ------------
                                                             | 2019       | 2018                         | 2017
Net cash provided by (used in) operating activities          | $1,193,066 | $(1,105,448)                 | $(1,464,085)
Net cash (used in) provided by investing activities          | (872,454)  | 1,240,914                    | 2,141,263
Net cash used in financing activities                        | (415,772)  | (47,044)                     | (404,546)
Effect of exchange rate changes on cash and cash equivalents | 554        | (20,392)                     | 5,228
Net (decrease) increase in cash and cash equivalents         | $(94,606)  | $68,030                      | $277,860 |


| _id | d1b32f6da |
| title |  |
| text | Autodesk applies fair value accounting for certain financial assets and liabilities, which consist of cash equivalents, marketable securities, and other financial instruments, on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair

which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can

or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and (Level 3) unobservable inputs for which there is little or no market data, which require Autodesk to develop its own assumptions. When determining fair value, Autodesk uses observable market data and relies on unobservable inputs only when observable market data is not available. Autodesk reviews for any potential changes on a quarterly basis, in conjunction

changes on a quarterly basis, in conjunction with our fiscal quarter-end close.

Autodesk's cash equivalents, marketable securities, and financial instruments are primarily classified within Level 1 or Level 2 of the fair value hierarchy. Autodesk values its securities on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1) or inputs other than quoted prices that are observable either directly or indirectly in determining fair value (Level 2). Autodesk's Level 2 securities are valued primarily using observable inputs other than quoted

using observable inputs other than quoted prices in active markets for identical assets and liabilities. Autodesk's Level 3 securities consist of investments held in convertible debt securities, and derivative contracts.

A reconciliation of the change in Autodesk’s Level 3 items for the fiscal year ended January 31, 2019 was as follows:
(1) Included in “Interest and other expense, net” in the accompanying Consolidated Statements of Operations.

 |
| table | |                      | Fair Value Fair Value Measurements Using Significant Unobservable Inputs (Level 3) |
--------------------------------------- | -------------------- | ---------------------------------------------------------------------------------- | -----
                                        | Derivative Contracts | Convertible Debt Securities                                                        | Total
Balances, January 31, 2018              | $1.0                 | $7.8                                                                               | $8.8
Settlements                             | —                    | (3.5)                                                                              | (3.5)
(Losses) Gains included in earnings (1) | (0.2)                | 0.5                                                                                | 0.3
Losses included in OCI                  | —                    | (0.4)                                                                              | (0.4)
Balances, January 31, 2019              | $0.8                 | $4.4                                                                               | $5.2 |


| _id | d1b2fbc2c |
| title |  |
| text | Provision for Income Taxes: Our effective income tax rates for each of the periods presented were the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. In fiscal 2018, the Tax Act was signed into law. The more significant provisions of the Tax Act as applicable to us are described above under “Impacts of the U.S. Tax Cuts and Jobs Act of 2017”. refer to Note 14 of Notes to Consolidated Financial Statements included elsewhere in this Annual report

included elsewhere in this Annual report for a discussion regarding the differences between the effective income tax rates as presented for the periods below and the U.S. federal statutory income tax rates that were in effect during these periods. Future effective income tax rates could be adversely affected by an unfavorable shift of earnings weighted to jurisdictions with higher tax rates, by unfavorable changes in tax laws and regulations, by adverse rulings in tax related litigation, or by shortfalls

in tax related litigation, or by shortfalls in stock-based compensation realized by employees relative to stock-based compensation that was recorded for book purposes, among others.

Provision for income taxes decreased in fiscal 2019 relative to fiscal 2018 primarily due to the absence of the initial accounting charges related to the Tax Act that were recorded in fiscal 2018. To a lesser extent, provision for income taxes also decreased in fiscal 2019 due to the net favorable impacts of our final accounting for the Tax Act in fiscal 2019; the net favorable impacts of the Tax Act on our tax profile during fiscal 2019; the favorable impact of a tax benefit arising from an increase in a

of a tax benefit arising from an increase in a deferred tax asset associated with a partial realignment of our legal structure in fiscal 2019; and lower income before provision for income taxes in fiscal 2019. These decreases to our provision for income taxes in fiscal 2019 relative to fiscal 2018 were partially offset both by lower excess tax benefits related to stock-based compensation expense in fiscal 2019, and by less favorable changes in net unrecognized tax benefits due to settlements with tax

tax benefits due to settlements with tax authorities and other events in fiscal 2019 relative to fiscal 2018.

 |
| table | |        |        | Year Ended May 31, |
-------------------------- | ------ | ------ | ------------------ | ------
                           |        |        | Percent Change     |
(Dollars in millions)      | 2019   | Actual | Constant           | 2018
Provision for income taxes | $1,185 | -87%   | -86%               | $8,837
Effective tax rate         | 9.7%   |        |                    | 71.1% |


| _id | d1b3c460e |
| title |  |
| text | Original Equipment Manufacturers (“OEM”) are the end-customers to which we provide direct marketing application engineering support, while Distribution customers refers to the distributors and representatives that we engage to distribute our products around the world.

Our revenues weight in Distribution registered a decrease of 5 percentage point compared to 2018, reaching a 30% share of total revenues in 2019. In 2018 as compared to 2017, our revenues weight in Distribution registered an increase of 1 percentage point.

 |
| table | | Year Ended December 31,         | Year Ended December 31,         | Year Ended December 31,
------------ | ------------------------------- | ------------------------------- | -------------------------------
             | 2019                            | 2018                            | 2017
             | (As percentage of net revenues) | (As percentage of net revenues) | (As percentage of net revenues)
OEM          | 70%                             | 65%                             | 66%
Distribution | 30                              | 35                              | 34
Total        | 100%                            | 100%                            | 100% |


| _id | d1b393522 |
| title |  |
| text | Share-Based Payment Expense
The expense recognised for employee services received during the year is as follows:
The cash-settled expense comprises cash-based awards together with certain social security taxes. The carrying value of the liability as at 31 March 2019 was $1.6M (2018: $3.1M).

 |
| table | | Year-ended 31 March 2019 | Year-ended 31 March 2018
--------------------------------- | ------------------------ | ------------------------
                                  | $M                       | $M
Cash-settled transactions         | 1.9                      | 2.7
Equity-settled transactions       | 35.0                     | 39.6
Total share-based payment expense | 36.9                     | 42.3 |


| _id | d1b389b4e |
| title |  |
| text | 12 Leases
(a) Leases
(i) Amounts recognised in the Consolidated Balance Sheet
The Consolidated Balance Sheet includes the following amounts relating to leases:
Additions to the right-of-use assets during the 2019 financial year were $0.3 million.
(ii) Amounts recognised in the Consolidated Statement of Comprehensive Income
The Consolidated Statement of Comprehensive Income shows the following amounts relating to leases:
The total cash outflow for leases in 2019 was $8.6 million.

(iii) The group’s leasing activities and how these are accounted for
The Group has a number of leases over property, motor vehicles, and connectivity links that have varying terms, escalation clauses and renewal rights.

Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability for each year. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a

the asset's useful life and the lease term on a straight-line basis.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:
- fixed payments (including in-substance fixed payments), less any lease incentives receivable  fixed payments (including in-substance fixed payments), less any lease incentives receivable
- variable lease payments that are based on an index or a rate
- amounts expected to be payable by the lessee under residual value guarantees

- the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
- payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the Group’s incremental borrowing rate.
Right-of-use assets are measured at cost comprising the following:
- the amount of the initial measurement of lease liability

- any lease payments made at or before the commencement date, less any lease incentives received
- any initial direct costs, and
- restoration costs.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture.
(iv) Extension and termination options

(iv) Extension and termination options
Extension and termination options are included in a number of property and equipment leases across the Group. These terms are used to maximise operational flexibility in terms of managing contracts. The majority of extension and termination options held are exercisable only by the Group and not by the respective lessor.

 |
| table | | 30 June 2019 | 30 June 2018
-------------------- | ------------ | ------------
                     | $'000        | $'000
Right-of-use assets* |              |
Properties           | 68,569       | 5,070
Motor Vehicles       | 259          | -
Connectivity Links   | 9,696        | -
                     | 78,524       | 5,070 |


| _id | d1a735078 |
| title |  |
| text | Stock-Settled Stock Appreciation Rights
Stock-Settled Appreciation Rights (“SSARs”) are rights granted to an employee to receive value equal to the difference in the price of our common shares on the date of the grant and on the date of exercise. This value is settled only in common shares of Agilysys.

We use a Black-Scholes-Merton option pricing model to estimate the fair value of SSARs. The following table summarizes the principal assumptions utilized in valuing SSARs granted in fiscal 2019, 2018 and 2017:

The risk-free interest rate is based on the yield of a zero coupon U.S. Treasury bond whose maturity period approximates the expected life of the SSARs. The expected life is estimated using historical data representing the period of time the awards are expected to be outstanding. The estimated fair value of the SSARs granted is recognized over the vesting period of the awards utilizing the graded vesting method. Under this method, the compensation cost related to unvested amounts begins to be recognized as

to unvested amounts begins to be recognized as of the grant date.

 |
| table | | 2019   | 2018            | 2017
-------------------------------------- | ------ | --------------- | -------------
Risk-free interest rate                | 2.68%  | 1.74%-1.94%     | 0.94%-2.14%
Expected life (in years)               | 5      | 5               | 5
Expected volatility                    | 32.42% | 32.42% - 32.84% | 35.25%-40.22%
Weighted average grant date fair value | $4.72  | $3.36           | $3.69 |


| _id | d1b30e408 |
| title |  |
| text | Annual Contract Value (“ACV”) (1) (2)
The change in ACV measures the growth and predictability of future cash flows from committed Pega Cloud and Client Cloud arrangements as of the end of the particular reporting period.
Total ACV, as of a given date, is the sum of the following two components:

• Client Cloud: the sum of (1) the annual value of each term license contract in effect on such date, which is equal to its total license value divided by the total number of years and (2) maintenance revenue reported for the quarter ended on such date, multiplied by four. We do not provide hosting services for Client Cloud arrangements.
• Pega Cloud: the sum of the annual value of each cloud contract in effect on such date, which is equal to its total value divided by the total number of years.

(1) Data Table
(2) As foreign currency exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of ACV growth rates on a constant currency basis enhances the understanding of our results and evaluation of our performance in comparison to prior periods.

 |
| table | | December 31, |          | Change   |     |
---------------------- | ------------ | -------- | -------- | --- | -----------------
(Dollars in thousands) | 2019         | 2018     | Reported |     | Constant currency
Maintenance            | $292,696     | $269,708 | $22,988  | 9%  | 8%
Term                   | 231,267      | 190,349  | 40,918   | 21% | 21%
Client Cloud           | 523,963      | 460,057  | 63,906   | 14% | 14%
Pega Cloud             | 169,329      | 109,973  | 59,356   | 54% | 54%
Total ACV              | $693,292     | $570,030 | $123,262 | 22% | 22% |


| _id | d1b35c0d6 |
| title |  |
| text | Net Income (Loss) per Common Share
Basic net income per share is based on the weighted average common and Class A shares outstanding. Diluted net income per share includes any dilutive effects of stock options outstanding and unvested restricted shares.

Basic net income per share was calculated by dividing net income by the weighted-average number of common and Class A shares outstanding during the period. Diluted net income per share was calculated by dividing net income by the weighted-average number of common shares outstanding during the period plus the dilutive effects of stock options and unvested restricted shares. Due to the net loss in the year ended June 3, 2017 restricted shares in the amount of 131,292 were excluded from the calculation of

of 131,292 were excluded from the calculation of diluted earnings per share because their inclusion would have been

antidilutive. The computations of basic net income per share and diluted net income per share are as follows (in thousands):

 |
| table | | June 1, 2019 | June 2, 2018 | June 3, 2017
-------------------------------------------------------- | ------------ | ------------ | ------------
Net income (loss) attributable to Cal-Maine Foods, Inc.  | $54,229      | $125,932     | $(74,278)
Basic weighted-average common shares (including Class A) | 48,467       | 48,353       | 48,362
Effect of dilutive securities:                           |              |              |
Common stock options and restricted stock                | 122          | 115          | —
Dilutive potential common shares                         | 48,589       | 48,468       | 48,362
Net income (loss) per common share:                      |              |              |
Basic                                                    | $1.12        | $2.60        | $(1.54)
Diluted                                                  | $1.12        | $2.60        | $(1.54) |


| _id | d1b39a084 |
| title |  |
| text | 7 Employees’ information (continued)
Share based payments
Details of share options outstanding under each of the Group’s schemes is set out below:
1 Shares ordinarily exercised immediately on vested date.
2 Relates to non-vested SIP free shares, partnership shares and matching shares granted.

The weighted average exercise prices of the outstanding options and outstanding options exercisable at 31 December 2019 for the Share Option Schemes were 304 pence and 309 pence respectively (2018: 302 pence and 309 pence respectively) and for the Save As You Earn Scheme were 77 pence and 278 respectively (2018: 224 pence and nil respectively).
A Share Option Schemes

A Share Option Schemes
Options to subscribe for ordinary shares may be awarded under the intu properties plc Company Share Option Plan and the intu properties plc Non-approved Executive Share Option Scheme.

Such options may not be exercised within three years of grant or before the satisfaction or waiver of any applicable performance conditions and will be forfeited if the employee leaves the Group before their options become capable of exercise, except in certain circumstances. The options will lapse if not exercised within 10 years of the date of grant.
B Performance Share Plan (PSP)
The Company operates a PSP for eligible employees at the discretion of the Remuneration Committee

Awards may be made in the form of nil cost options, a conditional share award or prior to April 2019, a joint share ownership award and fixed-value zero-cost option, and eligible employees may be granted any combination of such awards subject to any individual limits.

The 2020 PSP awards will vest based on (i) 50 per cent of each award – relative Total Shareholder Return vs a bespoke real estate sector peer group (this group being expanded from the very small groups used previously) and (ii) 50 per cent of each award – intu’s Total Property Return vs the MSCI UK Shopping Centre benchmark. This mix of metrics represents a change from the 2019 awards which were based 50 per cent each on relative and absolute TSR targets subject to a Remuneration Committee-operated

subject to a Remuneration Committee-operated discretionary assessment of underlying financial performance. It is intended that awards will vest three years following grant (with an additional two year post vesting holding period applying to the net number of shares that vest if the Remuneration Committee considers it appropriate to apply such additional condition).

C Bonus Share Scheme (Bonus Scheme)
Under the Company’s Bonus Scheme, shares may be awarded on a deferred basis as part of a bonus award (Deferred Share Awards).

Deferred Share Awards comprise Restricted Shares and Additional Shares (prior to July 2019). Restricted Shares will vest two or three years after the date of their award and Additional Shares will vest four or five years after the date of award. Vesting is subject, under normal circumstances, to continued employment during the vesting or ‘restricted’ period. There are no further performance conditions applicable to either Restricted Shares or Additional Shares.

Where awarded, the number of Additional Shares would be equal to 50 per cent of the combined total of shares awarded as Restricted Shares and under the Share Incentive Plan (see section D). No Additional Shares were outstanding at 1 January 2014 and no awards of Additional Shares have been made since this time. intu properties
D Share Incentive Plan (SIP)

D Share Incentive Plan (SIP)
The Company operates a SIP for all eligible employees, who may receive up to £3,600 worth of shares (Free Shares) as part of their annual bonus. The SIP is an HMRC tax-advantaged scheme.

Any Free Shares awarded under the SIP will be held in trust on behalf of each employee for at least three years following grant, after which time they may be withdrawn, provided the individual employee has remained in employment with the Company. If the Free Shares are held in trust for a further two years, they will qualify for HMRC-approved tax advantages.

As part of the SIP arrangements, the Company also offers eligible employees the opportunity to participate in a Partnership share scheme, under which employees can invest up to £1,800 of pre-tax salary (or, if less, 10 per cent of salary) in any tax year, which will be used to purchase ordinary shares in the Company (Partnership Shares) at the end of a 12-month period. The Group will give each employee one ordinary share (a Matching Share) for every two Partnership Shares purchased by the employee.

two Partnership Shares purchased by the employee. Matching Shares will be forfeited if the employee leaves the Group within three years of the date of award and will qualify for HMRC-approved tax advantages if they are held in the SIP for five years.

E Save As You Earn Scheme (SAYE)

The Group operates a SAYE under which all eligible UK employees may save up to a maximum of £500 per month for a period of three or five years and use the proceeds at the end of their saving period to purchase shares in the Company. At the start of the saving period, each SAYE participant will be granted an option to purchase such shares at a price usually determined as the average mid-market closing share price of an ordinary share in the Company over the three consecutive dealing days preceding the SAYE

three consecutive dealing days preceding the SAYE invitation date, discounted by up to 20 per cent. Options may normally be exercised within six months following the end of the savings period.

F Joint Share Ownership Plan (JSOP)

Eligible employees were invited to participate in the JSOP which formed part of the intu properties plc Unapproved Share Option Scheme (which was replaced by the Non-approved Executive Share Option Scheme upon its expiry in April 2018) and the PSP. Under the JSOP, shares are held jointly by the employee and the employee share ownership plan trustee with any increases in the share price and dividends paid on those shares being allocated between the joint owners in accordance with the terms of the scheme.

Conditions under which JSOP interests may be exercised (including applicable performance conditions) are the same as those for the Non-approved Executive Share Option Scheme as outlined in section A.

 |
| table | | Note | Outstanding 1 January 2019 | Granted during the year | Exercised during the year | Expired/forfeited during the year | Outstanding 31 December 2019 | Exercisable 31 December 2019
-------------------------- | ---- | -------------------------- | ----------------------- | ------------------------- | --------------------------------- | ---------------------------- | ----------------------------
Share Option Schemes       | A    | 7,938,601                  | –                       | –                         | (801,528)                         | 7,137,073                    | 5,687,073
Performance Share Plan1    | B    | 7,008,260                  | 3,734,410               | –                         | (2,228,278)                       | 8,514,392                    | n/a
Bonus Share Scheme         | C    | 1,827,366                  | 556,840                 | (996,503)1                | (16,632)                          | 1,371,071                    | n/a
Share Incentive Plan2      | D    | 243,127                    | 88,027                  | (41,116)1                 | (80,736)                          | 209,302                      | n/a
Save As You Earn Scheme    | E    | 219,136                    | 448,368                 | –                         | (121,172)                         | 546,332                      | 60,443
Joint Share Ownership Plan | F    | 4,345,305                  | –                       | –                         | (1,382,972)                       | 2,962,333                    | 2,962,333 |


| _id | d1b2f421a |
| title |  |
| text | Our number of employees is as follows:

On August 3, 2018, we implemented a plan to restructure our organization, which included a reduction in workforce of approximately 40 employees, representing approximately 30% of the Company’s total pre-restructuring workforce. We recorded a charge of $381,000 in the third quarter of 2018 relating to this reduction in force, consisting primarily of one-time severance payments and termination benefits. The Company’s goal in the restructuring is to better focus our workforce on retaining current clients,

focus our workforce on retaining current clients, gaining incremental business from current clients, and winning new business in the market segments where we can leverage our expertise and long history as an EFT pioneer.

Employees

 |
| table | | March 1, |
----------------------------- | -------- | ----
Department                    | 2020     | 2019
Sales and Marketing           | 41       | 38
Engineering                   | 13       | 9
Professional Services         | 6        | 6
Customer Support              | 22       | 22
Management and Administration | 18       | 17
Total                         | 100      | 92 |


| _id | d1b3ae62e |
| title |  |
| text | NOTE 14—INCOME TAXES
Our effective tax rate represents the net effect of the mix of income earned in various tax jurisdictions that are subject to a wide range of income tax rates.
The following is a geographical breakdown of income before the provision for income taxes:

 |
| table | |          | Year Ended June 30, |
-------------------------- | -------- | ------------------- | --------
                           | 2019     | 2018                | 2017
Domestic income (loss)     | $269,331 | $238,405            | $110,562
Foreign income             | 171,243  | 147,721             | 138,989
Income before income taxes | $440,574 | $386,126            | $249,551 |


| _id | d1b370e0a |
| title |  |
| text | ITEM 6. SELECTED FINANCIAL DATA

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

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

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

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

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

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

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

 |
| table | |             |             | Years Ended December 31, |             |
------------------------------------------- | ----------- | ----------- | ------------------------ | ----------- | -----------
                                            | 2019 (1)(2) | 2018 (3)    | 2017 (4)                 | 2016 (5)    | 2015
Income Statement Data:                      |             |             |                          |             |
Total revenues                              | $ 1,258,294 | $ 1,009,780 | $ 1,024,191              | $ 1,005,701 | $ 1,045,977
Net income                                  | 67,062      | 68,921      | 5,135                    | 129,535     | 85,436
Earnings per share:                         |             |             |                          |             |
Basic                                       | $ 0.58      | $ 0.59      | $ 0.04                   | $ 1.10      | $ 0.73
Diluted                                     | $ 0.57      | $ 0.59      | $ 0.04                   | $ 1.09      | $ 0.72
Weighted average common shares outstanding: |             |             |                          |             |
Basic                                       | 116,175     | 116,057     | 118,059                  | 117,533     | 117,465
Diluted                                     | 118,571     | 117,632     | 119,444                  | 118,847     | 118,919 |


| _id | d1b3c43d4 |
| title |  |
| text | Note 7—Income Taxes
The
Company
is
incorporated
in
Switzerland
but
operates
in
various
countries
with
differing
tax
laws
and
rates.
Further,
a
portion
of
the
Company's
income
(loss)
before
taxes
and
the
provision
for
(benefit
from)
income
taxes
is
generated
outside
of
Switzerland.
Income
from
continuing
operations
before
income
taxes
for
fiscal
years
2019
,
2018
and
2017
is
summarized
as
follows
(in
thousands):

 |
| table | |          | Years Ended March 31, |
------------------- | -------- | --------------------- | --------
                    | 2019     | 2018                  | 2017
Swiss               | $212,986 | $177,935              | $161,544
Non-Swiss           | 58,147   | 54,330                | 53,445
Income before taxes | $271,133 | $232,265              | $214,989 |


| _id | d1b32eb86 |
| title |  |
| text | Liquidity and Capital Resources
Working Capital
The following table summarizes our cash and cash equivalents, accounts receivable, net and working capital, for the periods indicated (in thousands):

We define working capital as current assets minus current liabilities. Our cash and cash equivalents as of December 31, 2019 are available for working capital purposes. We do not enter into investments for trading purposes, and our investment policy is to invest any excess cash in short term, highly liquid investments that limit the risk of principal loss; therefore, our cash and cash equivalents are held in demand deposit accounts that generate very low returns.

 |
| table | |          | As of December 31, |
------------------------- | -------- | ------------------ | -------
                          | 2019     | 2018               | 2017
Cash and cash equivalents | $119,629 | $146,061           | $96,329
Accounts receivable, net  | 76,373   | 49,510             | 40,634
Working capital           | 167,879  | 152,793            | 119,433 |


| _id | d1b2ff07a |
| title |  |
| text | 18. Other Income (Expense), Net
Other income (expense), net consists of the following:

 |
| table | |       | Years Ended June 30, |
----------------------------------------------------------------------------------------------- | ----- | -------------------- | -------
($ in millions)                                                                                | 2019  | 2018                 | 2017
Unrealized gains on company owned life insurance contracts and investments held in rabbi trusts | $0.8  | $1.5                 | $1.7
Interest income                                                                                | 0.1   | 0.3                  | 0.3
Foreign exchange                                                                                | (0.4) | (0.7)                | (0.4)
Pension earnings, interest and deferrals                                                        | (0.1) | (2.1)                | (23.8)
Pension curtailment                                                                             | —     | —                    | (0.5)
Other                                                                                | 0.2   | 0.2                  | 1.2
Total other income (expense), net                                                               | $0.6  | $(0.8)               | $(21.5) |


| _id | d1b379d34 |
| title |  |
| text | Below is the summary of the FY17 PRUs vested and earned by each NEO.
(1) The Compensation Committee did not exercise its discretion to reduce any payouts.

 |
| table | NEO                     | Total FY17 PRUs Vested at end of FY18 | Total FY17 PRUs Vested at end of FY19 | Total FY17 PRUs Earned and Vested (1)
----------------------- | ------------------------------------- | ------------------------------------- | -------------------------------------
Gregory S. Clark        | 2,404,175                             | 175,023                               | 2,579,198
Nicholas R. Noviello    | 606,935                               | 44,184                                | 651,119
Amy L. Cappellanti-Wolf | 207,142                               | 15,080                                | 222,222
Samir Kapuria           | 148,322                               | 10,798                                | 159,120
Scott C. Taylor         | 414,287                               | 30,160                                | 444,447 |


| _id | d1a739632 |
| title |  |
| text | 12. ACCRUED LIABILITIES
The settlement of the deferred compensation liabilities includes the settlement with our former CFO and Executive Vice President that is payable within March 31, 2020 and payroll taxes related to this settlement and the settlement of the Executive Pension Plan with our Chairman, President & CEO. We refer to note 7 for further information.

 |
| table | All figures in USD ‘000                        | 2019   | 2018
---------------------------------------------- | ------ | -----
Accrued Interest                               | 163    | 1,598
Accrued Expenses                               | 11,569 | 7,362
Settlement Deferred Compensation Liabilities   | 3,830  | -
Total as of December 31,                       | 15,562 | 8,960 |


| _id | d1b36cad0 |
| title |  |
| text | 4. Debt, Capital Lease Obligations and Other Financing
Debt and capital lease obligations as of September 28, 2019 and September 29, 2018, consisted of the following (in thousands):

On June 15, 2018, the Company entered into a Note Purchase Agreement (the “2018 NPA”) pursuant to which it issued an aggregate of$ 150.0 million in principal amount of unsecured senior notes, consisting of $100.0 million in principal amount of 4.05% Series A Senior Notes, due on June 15, 2025, and $50.0 million in principal amount of 4.22% Series B Senior Notes, due on June 15, 2028 (collectively, the “2018 Notes”), in a private placement. The 2018 NPA includes customary operational and financial covenants

customary operational and financial covenants with which the Company is required to comply, including, among others, maintenance of certain financial ratios such as a total leverage ratio and a minimum interest coverage ratio. The 2018 Notes may be prepaid in whole or in part at any time, subject to payment of a makewhole amount; interest on the 2018 Notes is payable semiannually. At September 28, 2019, the Company was in compliance with the covenants under the 2018 NPA.

In connection with the issuance of the 2018 Notes, on June 15, 2018, the Company repaid, on maturity $175.0 million in principal amount of its previous 5.20% Senior Notes.

On May 15, 2019, the Company refinanced its then-existing senior unsecured revolving credit facility (the "Prior Credit Facility") by entering into a new5 -year senior unsecured revolving credit facility (collectively with the Prior Credit Facility, referred to as the "Credit Facility"), which expanded the maximum commitment from $300.0 million to $350.0 million and extended the maturity from July 5, 2021 to May 15, 2024. The maximum commitment under the Credit Facility may be further increased to $600.0

Facility may be further increased to $600.0 million, generally by mutual agreement of the Company and the lenders, subject to certain customary conditions. During fiscal 2019, the highest daily borrowing was $250.0 million; the average daily borrowings were $140.7 million. The Company borrowed $1,084.5 million and repaid $989.5 million of revolving borrowings under the Credit Facility during fiscal 2019. The Company was in compliance with all financial covenants relating to the Credit Agreement, which are

relating to the Credit Agreement, which are generally consistent with those in the 2018 NPA discussed above. The Company is required to pay a commitment fee on the daily unused revolver credit commitment based on the Company's leverage ratio; the fee was 0.125% as of September 28, 2019.

 |
| table | | 2019      | 2018
-------------------------------------------------------------------- | --------- | --------
4.05% Senior Notes, due June 15, 2025                                | $100,000  | $100,000
4.22% Senior Notes, due June 15, 2028                                | 50,000    | 50,000
Borrowings under the credit facility                                 | 95,000    | —
Capital lease and other financing obligations                        | 44,492    | 39,857
Unamortized deferred financing fees                                  | (1,512)   | (1,240)
Total obligations                                                    | 287,980   | 188,617
Less: current portion                                                | (100,702) | (5,532)
Long-term debt and capital lease obligations, net of current portion | 187,278   | 183,085 |