| _id | d1b3166f8 |
| title |  |
| text | Manoj Shetty
(1) Represents accelerated vesting of 20,687 stock options. Pursuant to Mr. Shetty's stock option agreement (January 17, 2019), if Mr.
Shetty’s employment is terminated without cause or for good reason within six months following a “change in control”, he will become
immediately vested in all outstanding unvested stock options, and all of Mr. Shetty’s outstanding options shall remain exercisable in
accordance with their terms, but in no event for less than 90 days after such termination

(2) Represents accelerated vesting of 8,107 unvested performance restricted stock units. Pursuant to Mr. Shetty's performance restricted
stock unit agreement (dated January 17, 2019), if Mr. Shetty’s employment is terminated without cause or for good reason within six
months following a “change in control” or if Mr. Shetty's employment is terminated due to death or total disability, all non-vested units
shall accelerate and be vested as of the date of termination.

 |
| table | Type of Payment                                                                                | Termination by Systemax without “Cause” or Resignation by Employee for “good reason” ($) | Termination Due to Death or Total Disability ($) Termination Due to Death or Total Disability ($) Termination Due to Death or Total Disability ($) | Change In Control Only ($) | Termination by Systemax without “Cause” or Resignation by Employee for “good reason” within a certain period of time following a Change in Control ($)
-------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------
Cash Compensation (Salary & Non-Equity Incentive Compensation Cash Compensation (Salary & Non-Equity Incentive | -                                                                                | -                                                                                | -                          | -
Value of Accelerated Vesting of Stock Option Awards                                                            | -                                                                                | -                                                                                | -                          | 74,100 (1)
Value of Accelerated Vesting of Restricted Stock Unit Awards                                                   | -                                                                                | -                                                                                | -                          | -
Value of Accelerated Vesting of Performance Restricted Stock Unit Awards                                       | - -                                                                                | 204,000 (2)                                                                                | -                          | 204,000 (2)
Medical and Other Benefits                                                                                | -                                                                                | -                                                                                | -                          | -
Total                                                                                | -                                                                                | 204,000                                                                                | -                          | 278,100 |


| _id | d1b2fdda6 |
| title |  |
| text | 9 Profit / (loss) on Ordinary Activities
The profit (2018: loss) on ordinary activities before taxation is stated after charging:

 |
| table | | Year-ended 31 March 2019 | Year-ended 31 March 2018 Restated See note 2
--------------------------------------------- | ------------------------ | --------------------------------------------
                                              | $M                       | $M
Depreciation of property, plant and equipment | 11.8                     | 11.6
Amortisation of intangible assets             | 16.9                     | 25.2
Research and development expenditure          | (143.9)                  | (140.3)
Operating lease rentals:                      |                          |
Property                                      | 14.0                     | 12.5
Other                                         | 1.6                      | 1.6
Pension scheme contributions                  | 8.9                      | 8.4
Impairment of trade receivables               | 0.6                      | 0.6
Net foreign currency differences              | (1.5)                    | 6.9 |


| _id | d1b3c5d24 |
| title |  |
| text | Gross profit
The recent shift in our revenue mix toward cloud arrangements has resulted in slower total gross profit growth as our cloud business continues to grow and scale. Revenue from cloud arrangements is generally recognized over the service period, while revenue from term and perpetual license arrangements is generally recognized upfront when the license rights become effective.
Gross profit
The increase in total gross profit in 2019 was primarily due to increases in cloud and maintenance revenue.

Gross profit percent

The decrease in cloud gross profit percent in 2019 was driven by an increase in costs as we accelerated our investments in cloud infrastructure and service delivery to support future growth. The decrease in consulting gross profit percent in 2019 was driven by a decrease in billable hours as consulting resources were transitioning to new projects after completing a large project and an increase in consulting resource availability as we continue growing and leveraging our partner network.

 |
| table | (Dollars in thousands) | 2019     |     | 2018     |     | Change   |
---------------------- | -------- | --- | -------- | --- | -------- | -----
Software license       | $275,792 | 99% | $282,950 | 98% | $(7,158) | (3)%
Maintenance            | 254,924  | 91% | 239,310  | 91% | 15,614   | 7%
Cloud                  | 67,918   | 51% | 45,218   | 55% | 22,700   | 50%
Consulting             | 2,727    | 1%  | 22,338   | 9%  | (19,611) | (88)%
                       | $601,361 | 66% | $589,816 | 66% | $11,545  | 2% |


| _id | d1b3a8990 |
| title |  |
| text | The breakout of product and service gross profit was as follows:

We assess the carrying value of our inventory on a quarterly basis by estimating future demand and comparing that demand against on-hand and on-order inventory positions. Forecasted revenues information is obtained from the sales and marketing groups and incorporates factors such as backlog and future consolidated revenues. This quarterly process identifies obsolete and excess inventory. Obsolete inventory, which represents items for which there is no demand, is fully reserved. Excess inventory, which

is fully reserved. Excess inventory, which represents inventory items that are not expected to be consumed during the next twelve quarters for our Semiconductor Test, Industrial Automation and System Test segments and next four quarters for our Wireless Test segment, is written-down to estimated net realizable value.

During the year ended December 31, 2019, we recorded an inventory provision of $15.2 million included in cost of revenues, primarily due to downward revisions to previously forecasted demand levels for certain products. Of the $15.2 million of total excess and obsolete provisions, $8.7 million was related to Semiconductor Test, $4.0 million was related to Wireless Test, $2.0 million was related to System Test, and $0.5 million was related to Industrial Automation.

During the year ended December 31, 2018, we recorded an inventory provision of $11.2 million included in cost of revenues, primarily due to downward revisions to previously forecasted demand levels for certain products. Of the $11.2 million of total excess and obsolete provisions, $6.8 million was related to Semiconductor Test, $2.5 million was related to Wireless Test, $1.2 million was related to System Test, and $0.7 million was related to Industrial Automation.

During the years ended December 31, 2019 and 2018, we scrapped $9.2 million and $7.0 million of inventory, respectively, and sold $3.2 million and $6.7 million of previously written-down or written-off inventory, respectively. As of December 31, 2019, we had inventory related reserves for amounts which had been written-down or written-off totaling $103.6 million. We have no pre-determined timeline to scrap the remaining inventory.

 |
| table | | 2019     | 2018                  | 2018-2019 Dollar/Point Change
--------------------------- | -------- | --------------------- | -----------------------------
                            |          | (dollars in millions) |
Product gross profit        | $1,105.6 | $1,002.5              | $103.1
Percent of product revenues | 58.6%    | 58.0%                 | 0.6
Service gross profit        | $234.2   | $217.9                | $16.3
Percent of service revenues | 57.5%    | 58.7%                 | (1.2) |


| _id | d1a7270c2 |
| title |  |
| text | Contractual Obligations
The following table sets forth our future payments due under contractual obligations as of December 31, 2019 (in thousands):
(1) Our debt obligations consist of principal and interest repayments due on our Credit Facility based on current interest rates.
(2) Amounts represent the minimum contractual cash commitments, including the effects of fixed rental escalation clauses and deferred rent, exclusive of certain contingent rents that are not determinable for future periods.

(3) Our purchase obligations consist of purchase commitments with various manufacturing suppliers to ensure the availability of components.
(4) Income tax obligations are a result of the Tax Act and include a transition tax on unremitted foreign earnings and profits, of which we have elected to pay the estimated amount over an eight-year period.
(5) Our pension funding commitments represent the amounts that we are required to pay to fund our pension plans.

 |
| table | | Total    | 1 year    | Less than 1-3 years | 3-5 years | More than 5 years
----------------------------------------------------- | -------- | --------- | ------------------- | --------- | -----------------
Debt obligations(1)                                   | $341,250 | $17,500   | 35,000              | 288,750   | —
Interest payments associated with debt obligations(1) | 36,555   | 8,532     | 15,726              | 12,297    | —
Operating lease obligations(2)                        | 152,778  | 22,727    | 33,275              | 20,387    | 76,389
Purchase obligations(3)                               | 192,981  | 192,803   | 178                 | —         | —
Income tax obligations(4)                             | 11,724   | 1,117     | 2,234               | 4,884     | 3,489
Pension funding commitment(5)                         | 173,830  | 6,113     | 12,712              | 20,203    | 134,802
Total                                                 | $909,118 | $ 248,792 | $ 99,125            | $ 346,521 | $ 214,680 |


| _id | d1a738fb6 |
| title |  |
| text | 14. Income Taxes
The provision for income taxes consists of the following (in millions):

 |
| table | |                | Year Ended     |
-------------------------- | -------------- | -------------- | --------------
                           | April 26, 2019 | April 27, 2018 | April 28, 2017
Current:                   |                |                |
Federal                    | $ 26           | $ 764          | $ 22
State                      | 27             | 10             | 3
Foreign                    | 49             | 39             | 41
Total current              | 102            | 813            | 66
Deferred:                  |                |                |
Federal                    | 35             | 239            | 61
State                      | (6 )           | 27             | 17
Foreign                    | (32 )          | 4              | (4 )
Total deferred             | (3 )           | 270            | 74
Provision for income taxes | $ 99           | $ 1,083        | $ 140 |


| _id | d1a71479c |
| title |  |
| text | ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
NOTE 5. INCOME TAXES
The geographic distribution of pretax income from continuing operations is as follows:

 |
| table | |           | Years Ended December 31, |
-------- | --------- | ------------------------ | --------
         | 2019      | 2018                     | 2017
Domestic | $(20,597) | $22,325                  | $29,088
Foreign  | 87,791    | 150,051                  | 169,103
Total    | $67,194   | $172,376                 | $198,191 |


| _id | d1b3862b4 |
| title |  |
| text | Revenue
Revenue was $5,517.9 million and $5,878.3 million for 2019 and 2018, respectively. The decrease of $360.4 million, or 6.1% was primarily attributable to an 8.2%, 4.8% and 1.5% decrease in revenue in PSG, ASG and ISG, respectively, which is further explained below. Revenue by reportable segment for each were as follows (dollars in millions):
(1) Certain of the amounts may not total due to rounding of individual amounts.
Revenue from PSG

Revenue from PSG decreased by $249.9 million, or approximately 8%, which was due to a combination of a decrease in volume of products sold and a competitive pricing environment. The revenue in our Protection and Signal Division, Integrated Circuits Division, and High Power Division, decreased by $106.5 million, $96.6 million and $91.5 million, respectively. This was partially offset by an increase in revenue of $30.1 million and $15.0 million from our Foundry Services and Power Mosfet Division,

our Foundry Services and Power Mosfet Division, respectively.

Revenue from ASG
Revenue from ASG decreased by $98.9 million, or approximately 5%, which was also due to a combination of a decrease in volume of products sold and a competitive pricing environment. The revenue in our Industrial and Offline Power Division and our Signal Processing, Wireless and Medical Division, decreased by $100.5 million and $56.4 million, respectively. This was partially offset by $84.8 million of revenue from Quantenna, which was acquired during 2019.
Revenue from ISG

Revenue from ISG
Revenue from ISG decreased by $11.6 million, or 1.5%, which was due to a decrease in our Industrial Sensing Division revenue of $20.8 million, primarily due to decreased demand, which was partially offset by an increase in revenue in other divisions.

 |
| table | | 2019      | As a % of Revenue (1) | 2018      | As a % of Revenue (1)
------------- | --------- | --------------------- | --------- | ---------------------
PSG           | $ 2,788.3 | 50.5 %                | $ 3,038.2 | 51.7 %
ASG           | 1,972.3   | 35.7 %                | 2,071.2   | 35.2 %
ISG           | 757.3     | 13.7 %                | 768.9     | 13.1 %
Total revenue | $ 5,517.9 |                       | $ 5,878.3 | |


| _id | d1b348586 |
| title |  |
| text | Item 2. Properties
The Company operates out of several facilities located around the world. Each facility is used for manufacturing its products and for administrative activities. The following table presents the location, size and terms of ownership/occupation:

The Company’s facility located in Mitchel Field, Long Island, New York, is part of the building that the Company constructed in 1981 and expanded in 1988 on land leased from Nassau County. In January 1998, the Company sold this building and the related land lease to Reckson Associates Realty Corp. (“Reckson”), leasing back the space that it presently occupies.

The Company leased its manufacturing and office space from Reckson under an initial 11-year lease followed by two five-year renewal periods which ended in January 2019. On July 25, 2018, the Company signed an amendment to the lease with RA 55 CLB LLC (as successor-in-interest to Reckson) which extended the current lease terms ten years and eight months through September 30, 2029. Pursuant to the amendment to the lease agreement, the Company shall pay a gradually increasing annual rent of $1,046,810 in 2019

increasing annual rent of $1,046,810 in 2019 to $1,276,056 in 2029. The Company believes the leased space is adequate to meet the Company’s domestic operational needs which encompass the principal operations of the FEI-NY segment and also serves as the Company’s world-wide corporate headquarters.

The Garden Grove, California facility is leased by the Company’s subsidiary, FEI-Zyfer. The facility consists of a combination office and manufacturing space. The Company has signed a second amendment to the lease, which extends the lease an additional 88 months, beginning October 1, 2017 and expiring January 31, 2025. The average annual rent over the period of the amendment is approximately $312,000. The Company believes the leased space is adequate to meet FEI-Zyfer’s operational needs.

The Tianjin, China facility is the location of the Company’s wholly-owned subsidiary, FEI-Asia. The subsidiary’s office and manufacturing facility is located in the Tianjin Free-Trade Zone. The lease was renewable annually with monthly rent of $8,500 through August 2019. As mentioned in Footnote 3, below, FEI-Asia was sold on May 21, 2019 and as a result the lease commitment transferred with the sale.

FEI-Elcom entered into a new lease agreement on February 1, 2018 regarding its Northvale, New Jersey facility. The facility consists of a combination office and manufacturing space. The lease, which expires in January 31, 2021, requires monthly payments of $9,673. The Company believes the leased space is adequate to meet FEI-Elcom’s operational needs.

 |
| table | Location         | Size (sq. ft.) | Own or Lease
---------------- | -------------- | ------------
Long Island, NY  | 93,000         | Lease
Garden Grove, CA | 27,850         | Lease
Tianjin, China   | 28,000         | Lease
Northvale, NJ    | 9,000          | Lease |


| _id | d1b3ac11c |
| title |  |
| text | Contract Costs
The following table provides changes in our contract acquisition costs and fulfillment costs:
Acquisition costs include commission fees paid to employees as a result of obtaining contracts. Fulfillment costs include third party and internal costs associated with the provision, installation and activation of telecommunications services to customers, including labor and materials consumed for these activities.

Deferred acquisition and fulfillment costs are amortized based on the transfer of services on a straight-line basis over the average customer life of 30 months for consumer customers and 12 to 60 months for business customers and amortized fulfillment costs are included in cost of services and products and amortized acquisition costs are included in selling, general and administrative expenses in our consolidated statements of operations. The amount of these deferred costs that are anticipated to be

these deferred costs that are anticipated to be amortized in the next twelve months are included in other current assets on our consolidated balance sheets. The amount of deferred costs expected to be amortized beyond the next twelve months is included in other non-current assets on our consolidated balance sheets. Deferred acquisition and fulfillment costs are assessed for impairment on an annual basis.

 |
| table | | Year Ended December 31, 2019 |
--------------------------- | ---------------------------- | -----------------
                            | Acquisition Costs            | Fulfillment Costs
                            | (Dollars in millions)        |
Beginning of period balance | $322                         | 187
Costs incurred              | 208                          | 158
Amortization                | (204)                        | (124)
End of period balance       | $326                         | 221 |


| _id | d1b374154 |
| title |  |
| text | Realized and unrealized (losses) gains on non-designated derivative instruments. Realized and unrealized (losses) gains related to derivative instruments that are not designated as hedges for accounting purposes are included as a separate line item in the consolidated statements of loss. Net realized and unrealized losses on non-designated derivatives were $13.7 million for 2019, compared to $14.9 million for 2018, as detailed in the table below:

The realized losses relate to amounts we actually realized for settlements related to these derivative instruments in normal course and amounts paid to terminate interest rate swap agreement terminations.

During 2019 and 2018, we had interest rate swap agreements with aggregate average net outstanding notional amounts of approximately $1.1 billion and $1.3 billion, respectively, with average fixed rates of approximately 3.0% and 2.9%, respectively. Short-term variable benchmark interest rates during these periods were generally less than 3.0% and, as such, we incurred realized losses of $8.3 million and $13.9 million during 2019 and 2018, respectively, under the interest rate swap agreements.

We did not incur any realized losses related to the termination of interest rate swaps in 2019, compared to realized losses of $13.7 million during 2018. Primarily as a result of significant changes in long-term benchmark interest rates during 2019 and 2018, we recognized unrealized losses of $7.9 million in 2019 compared to unrealized gains of $33.7 million in 2018 under the interest rate swap agreements.

During the year ended December 31, 2019, we recognized a reversal of previously unrealized losses of $26.9 million on all the warrants held by Teekay to purchase common units of Altera (or the Warrants) as a result of the sale of the Warrants to Brookfield, and we concurrently recognized a realized loss of $25.6 million during the same period. During the year ended December 31, 2018, we recognized unrealized losses of $21.1 million on the Warrants. Please read “Item 18 – Financial Statements: Note 12 –

read “Item 18 – Financial Statements: Note 12 – Fair Value Measurements and Financial Instruments.”

 |
| table | | Year Ended        | Year Ended
-------------------------------------------------------------- | ----------------- | -----------------
                                                               | December 31, 2019 | December 31, 2018
                                                               | $                 | $
Realized (losses) gains relating to:                           |                   |
Interest rate swap agreements                                  | (8,296)           | (13,898)
Interest rate swap agreement terminations                      | —                 | (13,681)
Foreign currency forward contracts                             | (147)             | —
Stock purchase warrants                                        | (25,559)          | —
Forward freight agreements                                     | 1,490             | 137
                                                               | (32,512)          | (27,442)
Unrealized (losses) gains relating to:                         |                   |
Interest rate swap agreements                                  | (7,878)           | 33,700
Foreign currency forward contracts                             | (200)             | —
Stock purchase warrants                                        | 26,900            | (21,053)
Forward freight agreements                                     | (29)              | (57)
                                                               | 18,793            | 12,590
Total realized and unrealized losses on derivative instruments | (13,719)          | (14,852) |


| _id | d1b371ef4 |
| title |  |
| text | 3. CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES
Cash and cash equivalents primarily consist of deposits held at major banks, Tier-1 commercial paper debt securities and other securities with original maturities of 90 days or less. Marketable securities consist of Tier-1 commercial paper debt securities, corporate debt securities and certain other securities.

The amortized principal amounts of our cash, cash equivalents and marketable securities approximated their fair values at May 31, 2019 and 2018. We use the specific identification method to determine any realized gains or losses from the sale of our marketable securities classified as available-for-sale. Such realized gains and losses were insignificant for fiscal 2019, 2018 and 2017. The following table summarizes the components of our cash equivalents and marketable securities held, substantially all of

marketable securities held, substantially all of which were classified as available-for-sale:

As of May 31, 2019 and 2018, approximately 33% and 26%, respectively, of our marketable securities investments mature within one year and 67% and 74%, respectively, mature within one to four years. Our investment portfolio is subject to market risk due to changes in interest rates. As described above, we limit purchases of marketable debt securities to investment-grade securities, which have high credit ratings and also limit the amount of credit exposure to any one issuer. As stated in our investment

to any one issuer. As stated in our investment policy, we are averse to principal loss and seek to preserve our invested funds by limiting default risk and market risk.

Restricted cash that was included within cash and cash equivalents as presented within our consolidated balance sheets as of May 31, 2019 and 2018 and our consolidated statements of cash flows for the years ended May 31, 2019, 2018 and 2017 was nominal.

 |
| table | | May 31, |
----------------------------------------------- | ------- | -------
(in millions)                                   | 2019    | 2018
Corporate debt securities and other             | $22,242 | $44,302
Commercial paper debt securities                | —       | 1,647
Money market funds                              | 5,700   | 6,500
Total investments                               | $27,942 | $52,449
Investments classified as cash equivalents      | $10,629 | $6,808
Investments classified as marketable securities | $17,313 | $45,641 |


| _id | d1b3520ea |
| title |  |
| text | During 2019, 2018 and 2017, no income tax benefit or expense was recorded for stock options exercised as an adjustment to equity.
The change in the unrecognized income tax benefits for the years ended December 31, 2019, 2018 and 2017 is reconciled below:

As of December 31, 2019, 2018 and 2017, our total liability for unrecognized tax benefits was $1.5 million, $1.9 million and $2.4 million, respectively, of which $1.4 million, $1.7 million and $2.2 million, respectively, would reduce our effective tax rate if we were successful in upholding all of the uncertain positions and recognized the amounts recorded. We classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. As of December 31, 2019, 2018 and

tax expense. As of December 31, 2019, 2018 and 2017, the balances of accrued interest and penalties were $0.5 million, $0.7 million and $0.8 million, respectively.

We do not anticipate a single tax position generating a significant increase or decrease in our liability for unrecognized tax benefits within 12 months of this reporting date. We file income tax returns in the U.S. for federal and various state jurisdictions and several foreign jurisdictions. We are not currently under audit by the Internal Revenue Service. Generally, we are not subject to changes in income taxes by any taxing jurisdiction for the years prior to 2016.

 |
| table | (In thousands)                                  | 2019   | 2018   | 2017
----------------------------------------------- | ------ | ------ | ------
Balance at beginning of period                  | $1,868 | $2,366 | $2,226
Increases for tax position related to:          |        |        |
Prior years                                     | —      | 3      | 465
Current year                                    | 161    | 254    | 285
Decreases for tax positions related to:         |        |        |
Prior years                                     | (71)   | —      | (14)
Expiration of applicable statute of limitations | (471)  | (755)  | (596)
Balance at end of period                        | $1,487 | $1,868 | $2,366 |


| _id | d1b36014a |
| title |  |
| text | Issuer Purchases of Equity Securities

(i) Includes 3,416 shares that have been withheld by the Company to satisfy its tax withholding and remittance obligations in connection with the vesting of restricted stock awards. In addition, the Company exercised a pro-rata portion of the 2022 convertible note hedges (described in Note 12, Indebtedness, of the Notes to the Consolidated Financial Statements) to offset the shares of the Company’s Class A common stock issued to settle the conversion of certain 2022 Notes. The note hedges were net share

2022 Notes. The note hedges were net share settled and the Company received 3,643,165 shares of the Company’s Class A common stock from the counterparties in October of 2018.

(ii) Excludes the shares received through the exercise of the note hedges.
(iii) The Company exercised a pro-rata portion of the 2022 convertible note hedges to offset the shares of the Company’s Class A common stock issued to settle the conversion of certain 2022 Notes. The note hedges were net share settled and the Company received 1,096,773 shares of the Company’s Class A common stock from the counterparties in November of 2018.

 |
| table | Period                    | Total number of Shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs
------------------------- | -------------------------------- | ---------------------------- | -------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------
October 1 to October 31   | 3,646,581 (i)                    | 97.28 (ii)                   | —                                                                                | —
November 1 to November 30 | 1,096,773 (iii)                  | — (ii)                       | —                                                                                | —
December 1 to December 31 | —                                | —                            | —                                                                                | —
Total                     | 4,743,354                        | 97.28 (ii)                   | —                                                                                | — |


| _id | d1b34e97c |
| title |  |
| text | 18. Business Segments
We primarily derive our revenues from sales of our proprietary software (either as a direct license sale or under a subscription delivery model), which also serves as the basis for our recurring service contracts for software support and maintenance and certain transaction-related services. In addition, we provide various other client services, including installation, and managed services such as outsourcing, private cloud hosting and revenue cycle management.

During the first quarter of 2019, we realigned our reporting structure as a result of the divestiture of our investment in Netsmart on December 31, 2018, the evolution of the healthcare IT industry and our increased focus on the payer and life sciences market. As a result, we changed the presentation of our reportable segments to Provider and Veradigm. The new Provider segment is comprised of our core integrated clinical software applications, financial management and patient engagement solutions targeted

and patient engagement solutions targeted at clients across the entire continuum of care. The new Veradigm segment primarily focuses on the payer and life sciences market. These changes to our reportable segments had no impact on operating segments. The segment disclosures below for the years ended December 31, 2018 and 2017 have been revised to our current presentation.

We sold all of our investment in Netsmart on December 31, 2018. Prior to the sale, Netsmart comprised a separate reportable segment, which due to its significance to our historical consolidated financial statements and results of operations, is reported as a discontinued operation as a result of the sale. In addition, the results of operations related to two of the product offerings acquired with the EIS Business (Horizon Clinicals and Series2000) are also presented throughout these financial statements as

throughout these financial statements as discontinued operations and are included within the Provider reportable segment, except for acquisition-related deferred revenue adjustments, which are included in “Unallocated Amounts”. Refer to Note 17, “Discontinued Operations.”

As a result of the above changes, as of December 31, 2019, we had eight operating segments, which are aggregated into two reportable segments. The Provider reportable segment includes the Hospitals and Health Systems, Ambulatory, CarePort, FollowMyHealth®, EPSiTM, EIS-Classics and 2bPrecise strategic business units, each of which represents a separate operating segment. This reportable segment derives its revenue from the sale of integrated clinical software applications, financial management and patient

applications, financial management and patient engagement solutions, which primarily include EHR-related software, connectivity and coordinated care solutions, financial and practice management software, related installation, support and maintenance, outsourcing, private cloud hosting, revenue cycle management, training and electronic claims administration services. The Veradigm reportable segment is comprised of the Veradigm business unit, which represents a separate operating segment. This reportable

a separate operating segment. This reportable segment provides data-driven clinical insights with actionable tools for clinical workflow, research, analytics and media. Its solutions, targeted at key healthcare stakeholders, help improve the quality, efficiency and value of healthcare delivery.

Our Chief Operating Decision Maker (“CODM”) uses segment revenues, gross profit and income from operations as measures of performance and to make decisions about the allocation of resources. In determining these performance measures, we do not include in revenue the amortization of acquisition- related deferred revenue adjustments, which reflect the fair value adjustments to deferred revenue acquired in a business combination. We also exclude the amortization of intangible assets, stock-based compensation

of intangible assets, stock-based compensation expense, non-recurring expenses and transaction-related costs, and non-cash asset impairment charges from the operating segment data provided to our CODM. Non-recurring expenses relate to certain severance, product consolidation, legal, consulting and other charges incurred in connection with activities that are considered one-time. Accordingly, these amounts are not included in our reportable segment results and are included in an “Unallocated Amounts”

and are included in an “Unallocated Amounts” category within our segment disclosure. The “Unallocated Amounts” category also includes (i) corporate general and administrative expenses (including marketing expenses) and certain research and development expenses related to common solutions and resources that benefit all of our business units (refer to discussion above), all of which are centrally managed and (ii) revenue and the associated cost from the resale of certain ancillary products, primarily

resale of certain ancillary products, primarily hardware. We do not track our assets by segment.

 |
| table | |            | Year Ended December 31, |
----------------------------------- | ---------- | ----------------------- | ----------
(In thousands)                      | 2019       | 2018                    | 2017
Revenue:                            |            |                         |
Provider                            | $1,597,115 | $1,616,022              | $1,441,212
Veradigm                            | 161,216    | 140,326                 | 69,879
Unallocated Amounts                 | 13,346     | (6,386)                 | (13,383)
Total revenue                       | $1,771,677 | $1,749,962              | $1,497,708
Gross profit:                       |            |                         |
Provider                            | $672,206   | $710,063                | $674,112
Veradigm                            | 104,896    | 100,708                 | 43,817
Unallocated Amounts                 | (63,522)   | (86,228)                | (85,130)
Total gross profit                  | $713,580   | $724,543                | $632,799
Income (loss) from operations:      |            |                         |
Provider                            | $ 396,724  | $402,544                | $426,099
Veradigm                            | 43,996     | 43,641                  | 23,816
Unallocated Amounts                 | (465,176)  | (539,237)               | (437,431)
Total income (loss) from operations | $(24,456)  | $(93,052)               | $12,484 |


| _id | d1b3abcb2 |
| title |  |
| text | Cash Flows
The following table provides a summary of cash flows from operating, investing and financing activities (in millions):
Operating Activities

The $57.2 million decrease in cash provided by operating activities in 2019 compared to 2018 is primarily related to the timing and amount of cash receipts for Trade receivables, net, higher payments primarily related to income taxes and incentive bonus, and the timing of payments for Trade accounts payable and other accrued liabilities. The $84.4 million increase in cash provided by operating activities in 2018 compared to 2017 was primarily related to increased earnings excluding the prior year effect of

earnings excluding the prior year effect of the Tax Reform Act and the timing and amount of cash receipts for Trade receivables, net.

Investing Activities
The $406.9 million increase in cash used in investing activities in 2019 compared to 2018 is primarily related to our D&B Investment and our acquisition of Compass Analytics. The $59.4 million increase in cash used in investing activities in 2018 compared to 2017 was primarily related to the HeavyWater and Ernst acquisitions and higher capital expenditures in 2018.
Financing Activities

Financing Activities
The $455.1 million increase in cash provided by financing activities in 2019 compared to 2018 is primarily related to an incremental borrowing to fund our D&B Investment as well as fewer share repurchases. The $96.8 million decrease in cash used in financing activities in 2018 compared to 2017 was primarily related to tax distributions to BKFS LLC members and the senior notes redemption fee in 2017.

 |
| table | | Year ended December 31, |         |          | Variance     |
----------------------------------------------------- | ----------------------- | ------- | -------- | ------------ | ------------
                                                      | 2019                    | 2018    | 2017     | 2019 v. 2018 | 2018 v. 2017
Cash flows provided by operating activities           | $378.3                  | $435.5  | $351.1   | $(57.2)      | $84.4
Cash flows used in investing activities               | (551.0)                 | (144.1) | (84.7)   | (406.9)      | (59.4)
Cash flows provided by (used in) financing activities | 167.8                   | (287.3) | (384.1)  | 455.1        | 96.8
Net (decrease) increase in cash and cash equivalents  | $(4.9)                  | $4.1    | $(117.7) | $(9.0)       | $121.8 |


| _id | d1b304246 |
| title |  |
| text | Billings
Group reported billings decreased by $8.3 million or 1.1 per cent to $760.3 million in the year-ended 31 March 2019. This represented a 0.1 per cent decrease on a constant currency (“CC”) basis.
Billings by region

Americas Billings attributable to the Americas decreased by $2.2 million to $267.8 million in the period, representing a 0.8 per cent reduction on a reported basis and 0.7 per cent on a constant currency basis; this decrease largely driven by a decline in Enduser products due to the stronger performance in the prior-year compare as a consequence of the impact of the WannaCry ransomware outbreak and the launch of Intercept X, the Group’s next-gen endpoint product, partially offset by an improved performance

partially offset by an improved performance in UTM sales.

EMEA Billings attributable to EMEA increased by $0.2 million to $395.3 million in the period, representing 0.1 per cent growth on a reported basis and 0.9 per cent growth on a constant currency basis. An increase in sales of Server products being partially offset by a reduction in endpoint and email products.

APJ Billings attributable to APJ decreased by $6.3 million to $97.2 million in the period, representing 6.1 per cent on a reported basis and 2.8 per cent on a constant currency basis. As in the Americas, growth was negatively impacted by the stronger performance in the prior-year compare compounded by a legacy Network product transition in the first-half of the year partially offset by an improvement in sales of Server products.

 |
| table | | FY19          | FY18          | Growth %   | Growth %
-------------------- | ------------- | ------------- | ---------- | --------
                     | $m (Reported) | $m (Reported) | (Reported) | (CC)
Billings by Region:  |               |               |            |
- Americas           | 267.8         | 270.0         | (0.8)      | (0.7)
- EMEA               | 395.3         | 395.1         | 0.1        | 0.9
- APJ                | 97.2          | 103.5         | (6.1)      | (2.8)
                     | 760.3         | 768.6         | (1.1)      | (0.1)
Billings by Product: |               |               |            |
– Network            | 345.9         | 353.4         | (2.1)      | (1.1)
– Enduser            | 377.1         | 383.2         | (1.6)      | (0.7)
– Other              | 37.3          | 32.0          | 16.6       | 17.1
                     | 760.3         | 768.6         | (1.1)      | (0.1)
Billings by Type:    |               |               |            |
– Subscription       | 644.6         | 644.2         | 0.1        | 1.0
– Hardware           | 105.7         | 113.7         | (7.0)      | (6.1)
– Other              | 10.0          | 10.7          | (6.5)      | (4.6)
                     | 760.3         | 768.6         | (1.1)      | (0.1) |


| _id | d1b2eaec2 |
| title |  |
| text | Reconciliations of total segment net revenues and total segment operating income to consolidated net revenues and consolidated income before income tax expense are presented in the table below (amounts in millions):
(1) Includes other income and expenses from operating segments managed outside the reportable segments, including our Distribution business. Also includes unallocated corporate income and expenses.

(2) Since certain of our games are hosted online or include significant online functionality that represents a separate performance obligation, we defer the transaction price allocable to the online functionality from the sale of these games and then recognize the attributable revenues over the relevant estimated service periods, which are generally less than a year. The related cost of revenues is deferred and recognized as an expense as the related revenues are recognized. This table reflects the net

are recognized. This table reflects the net effect from the deferrals of revenues and recognition of deferred revenues, along with the related cost of revenues, on certain of our online enabled products.

(3) Intersegment revenues reflect licensing and service fees charged between segments.
(4) Reflects restructuring initiatives, which include severance and other restructuring-related costs.
(5) Reflects the impact of other unusual or unique tax‑related items and activities.

 |
| table | | For the Years Ended December 31, |
------------------------------------------------------------------------------------------------ | -------------------------------- | ------
                                                                                | 2019                             | 2018
Reconciliation to consolidated net revenues:                                                     |                                  |
Segment net revenues                                                                             | $5,969                           | $6,835
Revenues from non-reportable segments (1)                                                        | 462                              | 480
Net effect from recognition (deferral) of deferred net revenues (2)                              | 101                              | 238
Elimination of intersegment revenues (3)                                                         | (43)                             | (53)
Consolidated net revenues                                                                        | $6,489                           | $7,500
Reconciliation to consolidated income before income tax expense:                                 |                                  |
Segment operating income                                                                         | $2,054                           | $2,446
Operating income (loss) from non-reportable segments (1)                                         | 24                               | 31
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2) | 52                               | 100
Share-based compensation expense                                                                 | (166)                            | (209)
Amortization of intangible assets                                                                | (203)                            | (370)
Restructuring and related costs (4)                                                              | (137)                            | (10)
Discrete tax-related items (5)                                                                   | (17)                             | —
Consolidated operating income                                                                    | 1,607                            | 1,988
Interest and other expense (income), net                                                         | (26)                             | 71
Loss on extinguishment of debt                                                                   | —                                | 40
Consolidated income before income tax expense                                                    | $1,633                           | $1,877 |


| _id | d1b309a8e |
| title |  |
| text | 34. Share-based payment continued
3.8 million share incentives were granted during 2019 (2018 2.7 million). The fair value of share incentives has been estimated as at the date of grant using the Black-Scholes binomial model. The following table gives the assumptions made in arriving at the share-based payment charge and the fair value:

The expected volatility was determined by calculating the historical volatility of the Company’s share price over the previous two years which management considers to be the period which is likely to be most representative of future volatility. The risk free rate is calculated by reference to UK government bonds.

 |
| table | | 2019      | 2018
--------------------------------------- | --------- | -----
Weighted average share price (pence)    | 163.1     | 112.9
Weighted average exercise price (pence) | 0.0       | 0.0
Weighted average fair value (pence)     | 141.1     | 95.1
Expected volatility (%)                 | 31.6–32.8 | 30.6
Option life (years):                    |           |
– Performance Shares                    | 3.0       | 3.0
– Options and SARs                      | 10.0      | 10.0
Risk free rate (%)                      | 0.48-0.72 | 0.88
Dividend yield (%)                      | 2.5–3.0   | 3.0 |


| _id | d1b2fae26 |
| title |  |
| text | GWL Corporate Free Cash Flow(1)

Following the reorganization of Choice Properties to GWL, management evaluates the cash generating capabilities of GWL Corporate(2) based on the various cash flow streams it receives from its operating subsidiaries. As a result, the GWL Corporate free cash flow(1) is based on the dividends received from Loblaw, distributions received from Choice Properties and net cash flow contributions received from Weston Foods less corporate expenses, interest and income taxes paid. Lease payments are excluded from the

taxes paid. Lease payments are excluded from the calculation of GWL Corporate free cash flow(1) to normalize for the impact of the implementation of IFRS 16.

(i) Included in Other and Intersegment, GWL Corporate includes all other company level activities that are not allocated to the reportable operating segments, such as net interest expense, corporate activities and administrative costs. Also included are preferred share dividends paid.

 |
| table | For the quarters and years ended December 31          | Quarters ended |      | Yeas ended |
----------------------------------------------------- | -------------- | ---- | ---------- | -----
($ millions)                                          | 2019           | 2018 | 2019       | 2018
Weston Foods adjusted EBITDA(1)                       | 56             | 59   | 223        | 233
Weston Foods capital expenditures                     | (70)           | (91) | (194)      | (212)
Distributions from Choice Properties                  | 82             | 43   | 325        | 43
Dividends from Loblaw                                 | –              | –    | 233        | 212
Weston Foods income taxes paid                        | –              | (2)  | (7)        | (32)
Other                                                 | 64             | 21   | (41)       | (23)
GWL Corporate cash flow from operating businesses (1) | 132            | 30   | 539        | 221
GWL Corporate and financing costs (i)                 | (24)           | (33) | (109)      | (108)
Income taxes paid                                     | (4)            | (2)  | (19)       | (14)
GWL Corporate free cash flow (1)                      | 104            | (5)  | 411        | 99 |


| _id | d1a7122a8 |
| title |  |
| text | NOTE 26 – EARNINGS PER SHARE AND DIVIDEND PER SHARE
When calculating diluted earnings per share for 2018 and 2017, RSUs have been omitted as they are out-of-the-money and thus anti-dilutive, but the RSUs may potentially dilute earnings per share in the future. Please refer to note 3 for information on the RSU share options.

 |
| table | | 2019  | 2018  | 2017
------------------------------------------------------------------------------------ | ----- | ----- | ----
EARNINGS PER SHARE                                                                   |       |       |
Net profit/(loss) for the year (USDm)                                                | 166.0 | -34.8 | 2.4
Million shares                                                                       |       |       |
Weighted average number of shares                                                    | 74.3  | 73.4  | 62.3
Weighted average number of treasury shares                                           | -0.3  | -0.3  | -0.3
Weighted average number of shares outstanding                                        | 74.0  | 73.1  | 62.0
Dilutive effect of outstanding share options                                         | 0.0   | -     | -
Weighted average number of shares outstanding incl. dilutive effect of share options | 74.0  | 73.1  | 62.0
Basic earnings/(loss) per share (USD)                                                | 2.24  | -0.48 | 0.04
Diluted earnings/(loss) per share (USD)                                              | 2.24  | -0.48 | 0.04 |


| _id | d1b309d04 |
| title |  |
| text | Operating Expenses
The following table highlights our operating expenses and operating loss as a percentage of net revenues:

 |
| table | |               | Year Ended   |
----------------------------------------------------------------- | ------------- | ------------ | -------------
                                                                  | June 30,
2019 | June 30,2018 | June 30,
2017
Research and development                                          | 21.1%         | 18.7%        | 15.4%
Sales and marketing                                               | 28.7%         | 27.2%        | 26.8%
General and administrative                                        | 5.6%          | 5.2%         | 6.2%
Acquisition and integration costs, net of bargain purchase gain   | 0.3%          | 5.5%         | 2.2%
Restructuring charges, net of reversals                           | 0.5%          | 0.8%         | 1.5%
Amortization of intangibles                                       | 0.6%          | 0.9%         | 1.4%
Total operating expenses                                          | 56.8%         | 58.3%        | 53.5%
Operating (loss) income                                           | (1.5)%        | (3.9)%       | 1.0% |


| _id | d1b3187c8 |
| title |  |
| text | 7 Employee benefits
Pension plans
The Company is accounting for pension costs in accordance with International Accounting Standard 19.
The disclosures shown here are in respect of the Company’s defined benefit obligations. Other plans operated by the Company were defined contribution plans.
The total expense relating to the Company’s defined contribution pension plans in the current year was £0.7m (2018: £0.6m).

At 31st December 2019 the post-retirement mortality assumptions in respect of the Company Defined Benefit Scheme follows 85%/96% (male/female) of SAPS S2, CMI 2017 projections with a long term trend of 1.25% p.a. At 31st December 2018 the postretirement mortality assumptions in respect of the Company Defined Benefit Scheme follows 85% of SAPS S2 Light base table for males and 96% of SAPS S2 base table for females with CMI Core Projection Model 2016 improvements commencing in 2007, subject to a 1.25% p.a.

commencing in 2007, subject to a 1.25% p.a. long-term trend. These assumptions are regularly reviewed in light of scheme-specific experience and more widely available statistics.

The financial assumptions used at 31st December were:
The assumptions used by the actuary are the best estimates chosen from a range of possible actuarial assumptions, which due to the timescale covered, may not necessarily be borne out in practice.

 |
| table | | Weighted-average assumptions used to define the benefit obligations |
---------------------------- | ------------------------------------------------------------------- | ----
                             | 2019                                                                | 2018
                             | %                                                                   | %
Rate of increase in salaries | 2.4                                                                 | 2.7
Rate of increase in pensions | 2.8                                                                 | 2.9
Rate of price inflation      | 2.9                                                                 | 3.2
Discount rate                | 2.1                                                                 | 2.7 |


| _id | d1b32401e |
| title |  |
| text | Contract balances
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
Accrued income relates to the Group’s rights to consideration for services provided but not invoiced at the reporting date. Accrued income is transferred to receivables when invoiced.

Deferred income relates to advanced consideration received for which revenue is recognised as or when services are provided. Included within deferred income is £11.2m (2018: £nil) relating to consideration received from Auto Trader Auto Stock Limited (which forms part of the Group’s joint venture) for the provision of data services (note 16). Revenue relating to this service is recognised on a straight-line basis over a period of 20 years.

 |
| table | | 2019   | 2018
-------------------------------------------------------------- | ------ | -----
                                                               | £m     | £m
Receivables, which are included in trade and other receivables | 27.0   | 28.8
Accrued income                                                 | 28.0   | 26.7
Deferred income                                                | (13.2) | (1.8) |


| _id | d1b3799ec |
| title |  |
| text | Options outstanding that are exercisable and that have vested and are expected to vest as of January 31, 2020 were as follows (outstanding options in thousands, aggregate intrinsic value in in millions):
(1) The aggregate intrinsic values represent the total pre-tax intrinsic values based on VMware's closing stock price of $148.06 as of January 31, 2020, which would have been received by the option holders had all in-the-money options been exercised as of that date.

The total fair value of VMware stock options that vested during the years ended January 31, 2020, February 1, 2019 and February 2, 2018 was $64 million, $35 million and $32 million, respectively. Total fair value of Pivotal stock options that vested during the years ended January 31, 2020, February 1, 2019 and February 2, 2018 was $27 million, $41 million and $23 million, respectively.

The VMware stock options exercised during the years ended January 31, 2020, February 1, 2019 and February 2, 2018 had a pre-tax intrinsic value of $103 million, $56 million, and $62 million, respectively. The Pivotal options exercised during the years ended January 31, 2020 and February 1, 2019 had a pre-tax intrinsic value of $278 million and $97 million, respectively, and was not material during the year ended February 2, 2018. The pre-tax intrinsic value of Pivotal options exercised during the year

of Pivotal options exercised during the year ended January 31, 2020 includes vested options that were settled in cash as part of the Pivotal acquisition.

 |
| table | |                     | VMware Stock Options |                                                         |
--------------------------- | ------------------- | -------------------- | ------------------------------------------------------- | ----------------------------
                            | Outstanding Options | Exercise Price       | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value(1)
Exercisable                 | 945                 | $47.24               | 3.81                                                    | $95
Vested and expected to vest | 2,589               | 56.13                | 6.41                                                    | 238 |


| _id | d1b31607c |
| title |  |
| text | EBITDA: TORM defines EBITDA as earnings before financial income and expenses, depreciation, impairment, amortization and taxes. The computation of EBITDA refers to financial income and expenses which the Company deems to be equivalent to “interest” for purposes of presenting EBITDA. Financial expenses consist of interest on borrowings, losses on foreign exchange transactions and bank charges. Financial income consists of interest income and gains on foreign exchange transactions.

EBITDA is used as a supplemental financial measure by Management and external users of financial statements, such as lenders, to assess TORM's operating performance as well as compliance with the financial covenants and restrictions contained in the Company's financing agreements. TORM believes that EBITDA assists Management and investors by increasing comparability of the Company's performance from period to period. This increased comparability is achieved by excluding the potentially disparate effects of

by excluding the potentially disparate effects of interest, depreciation, impairment, amortization and taxes. These are items that could be affected by various changing financing methods and capital structure and which may significantly affect profit/(loss) between periods. Including EBITDA as a measure benefits investors in selecting between investment alternatives.

EBITDA excludes some, but not all, items that affect profit/(loss), and these measures may vary among other companies and not be directly comparable. The following table reconciles EBITDA to net profit/ (loss), the most directly comparable IFRS financial measure, for the periods presented:

 |
| table | USDm                                            | 2019   | 2018  | 2017
----------------------------------------------- | ------ | ----- | -----
Reconciliation to net profit/(loss)             |        |       |
Net profit/(loss) for the year                  | 166.0  | -34.8 | 2.4
Tax                                             | 0.8    | 1.6   | 0.8
Financial expenses                              | 41.9   | 39.3  | 40.6
Financial income                                | -2.8   | -3.3  | -4.3
Depreciation                                    | 110.1  | 114.5 | 114.5
Impairment (reversal)/losses on tangible assets | -114.0 | 3.2   | 3.6
EBITDA                                          | 202.0  | 120.5 | 157.6 |


| _id | d1b356550 |
| title |  |
| text | GasLog Ltd. and its Subsidiaries
Notes to the consolidated financial statements (Continued)
For the years ended December 31, 2017, 2018 and 2019
(All amounts expressed in thousands of U.S. Dollars, except share and per share data)
Credit risk

Credit risk is the risk that a counterparty will fail to discharge its obligations and cause a financial loss and arises from cash and cash equivalents, short-term investments, favorable derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including trade and other receivables, dividends receivable and other amounts due from related parties. The Group is exposed to credit risk in the event of non-performance by any of its

in the event of non-performance by any of its counterparties. To limit this risk, the Group currently deals primarily with financial institutions and customers with high credit ratings.

For the year ended December 31, 2019, 70.0% of the Group’s revenue was earned from Shell (December 31, 2018 and December 31, 2017, 74.2% and 92.6%, respectively) and accounts receivable were not collateralized; however, management believes that the credit risk is partially offset by the creditworthiness of the Group’s counterparties. BG Group was acquired by Shell on February 15, 2016. This acquisition does not impact the contractual obligations under the existing charter party agreements. The Group did

existing charter party agreements. The Group did not experience significant credit losses on its accounts receivable portfolio during the three years ended December 31, 2019. The carrying amount of financial assets recorded in the consolidated financial statements represents the Group’s maximum exposure to credit risk. Management monitors exposure to credit risk, and they believe that there is no substantial credit risk arising from the Group’s counterparties.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.

 |
| table | | As of December 31, |
--------------------------------------------------------------- | ------------------ | -------
                                                                | 2018               | 2019
Cash and cash equivalents                                       | 342,594            | 263,747
Short-term investments                                          | 25,000             | 4,500
Trade and other receivables                                     | 20,244             | 24,900
Dividends receivable and other amounts due from related parties | 33,395             | 573
Derivative financial instruments                                | 15,188             | 4,001 |


| _id | d1b3a02e0 |
| title |  |
| text | A reconciliation of the combined Canadian federal and provincial income tax rate with our effective income tax rate is as follows:
In Fiscal 2019, 2018 and 2017, respectively, substantially all the tax rate differential for international jurisdictions was driven by earnings in the United States.

The effective tax rate decreased to a provision of 35.2% for the year ended June 30, 2019, compared to 37.2% for the year ended June 30, 2018. The increase in tax expense of $11.1 million was primarily due to the increase in net income taxed at foreign rates of $10.7 million, an increase of $26.4 million in reserves for unrecognized tax benefits, an increase of $16.1 million arising on the introduction of BEAT in Fiscal 2019, and an increase of $16.3 million relating to the tax impact of internal

million relating to the tax impact of internal reorganizations of subsidiaries, partially offset by a the reversal of accruals for undistributed United States earnings of $14.8 million, the Fiscal 2018 impact of United States tax reform of $19.0 million which did not recur in Fiscal 2019, an increase in tax credits for research and development of $9.7 million, an increase of $6.8 million in the release of valuation allowance, a decrease of $5.8 million in the impact of withholding taxes in Fiscal 2019. The

impact of withholding taxes in Fiscal 2019. The remainder of the difference was due to normal course movements and non-material items.

In July 2016, we implemented a reorganization of our subsidiaries worldwide with the view to continuing to enhance operational and administrative efficiencies through further consolidated ownership, management, and development of our intellectual property (IP) in Canada, continuing to reduce the number of entities in our group and working towards our objective of having a single operating legal entity in each jurisdiction. A significant tax benefit of $876.1 million, associated primarily with the

of $876.1 million, associated primarily with the recognition of a net deferred tax asset arising from the entry of the IP into Canada, was recognized in the first quarter of Fiscal 2017. For more information relating to this, please refer to our Annual Report on Form 10-K for the year ended June 30, 2017.

As of June 30, 2019, we have approximately $242.3 million of domestic non-capital loss carryforwards. In addition, we have $387.6 million of foreign non-capital loss carryforwards of which $53.8 million have no expiry date. The remainder of the domestic and foreign losses expires between 2020 and 2039. In addition, investment tax credits of $58.6 million will expire between 2020 and 2039.

 |
| table | |          | Year Ended June 30, |
-------------------------------------------------- | -------- | ------------------- | ----------
                                                   | 2019     | 2018                | 2017
Expected statutory rate                            | 26.5%    | 26.5%               | 26.5%
Expected provision for income taxes                | $116,752 | $102,323            | $66,131
Effect of foreign tax rate differences             | (1,344)  | 2,352               | 8,647
Change in valuation allowance                      | (5,045)  | 1,779               | 520
Amortization of deferred charges                   | —        | 4,242               | 6,298
Effect of permanent differences                    | (577)    | 4,332               | 3,673
Effect of changes in unrecognized tax benefits     | 31,992   | 5,543               | 14,427
Effect of withholding taxes                        | 2,097    | 7,927               | 3,845
Difference in tax filings from provision           | (250)    | 1,321               | (7,836)
Effect of U.S. tax reform                          | —        | 19,037              | —
Effect of tax credits for research and development | (13,550) | (3,875)             | (2,643)
Effect of accrual for undistributed earnings       | (13,112) | (1,154)             | 5,613
Effect of Base Erosion and Anti-Abuse Tax (BEAT)   | 16,030   | —                   | —
Other Items                                        | 5,473    | (1)                 | 1,075
Impact of internal reorganization of subsidiaries  | 16,471   | —                   | (876,114)
                                                   | 154,937  | $143,826            | $(776,364) |


| _id | d1b38049a |
| title |  |
| text | IFRS balance sheet items

Our total investment in joint ventures was £524.1 million at 31 December 2019 (which includes investments in joint ventures of £326.6 million and loans to joint ventures £197.5 million), a decrease of £299.8 million from 31 December 2018. The key driver in the year related to the share of loss of joint ventures of £158.9 million, which primarily included underlying earnings of £27.9 million and a property revaluation deficit of £182.9 million, a £200.7 million transfer of intu Puerto Venecia and intu

million transfer of intu Puerto Venecia and intu Asturias to held for sale, partially offset by the residual interest in intu Derby of £93.9 million being classified as a joint venture.

We are exposed to foreign exchange movements on our overseas investments. At 31 December 2019 the exposure was 24 per cent of net assets attributable to shareholders, the increase from the 31 December 2018 exposure of 15 per cent being due to the property revaluation deficit in the UK. Adjusted for the disposals in intu Puerto Venecia and intu Asturias, this exposure would be reduced to 15 per cent.

1 A reconciliation from the IFRS consolidated balance sheet to the amounts presented above is provided in the presentation of information on page 159. A further reconciliation of EPRA NAV to IFRS net assets attributable to owners of intu properties plc is provided within EPRA measures on page 169.

2 Other assets and liabilities includes property, plant and equipment, other non-current assets, trade and other receivables, trade and other payables, current tax liabilities, deferred tax liabilities and other payables.
3 Relates primarily to our partner’s 40 per cent stake in intu Metrocentre. The amount is considered to be recoverable in view of the £195.4 million owed to the non-controlling interest (which is included in the Group’s borrowings in note 23).

4 Other adjustments relate to fair value of derivative financial instruments, fair value of convertible bonds, deferred tax on investment and development property, share of joint ventures’ adjusted items and non-controlling interest recoverable balance not recognised in EPRA NAV.

The key drivers in the decrease in IFRS net assets attributable to owners of intu properties plc of £1,907.5 million as well as the decrease in EPRA NAV of £1,969.8 million and EPRA NAV per share of 146 pence in the year are discussed below.
A Investment and development property
Investment and development property has decreased by £2,534.1 million:
—deficit on revaluation of £1,979.7 million (see E above within the income statement section)

—disposals in the year, including the part disposal of intu Derby in July 2019, transfer of intu Puerto Venecia and intu Asturias to assets held for sale (see B below) and sundry asset disposals

—capital expenditure of £129.2 million on projects enhancing the value and appeal of our centres, including £44.5 million on the Primark anchored intu Trafford Centre’s Barton Square extension, £14.5 million on the redevelopment of intu Broadmarsh and £11.2 million on the now completed leisure extension at intu Lakeside
B Joint ventures and other assets classified as held for sale

intu Puerto Venecia and intu Asturias were classified as joint ventures held for sale at 31 December 2019 and recognised at their expected net proceeds.
intu Puerto Venecia

intu Puerto Venecia
In December 2019 the Group announced the disposal of its joint venture interest in intu Puerto Venecia to Generali Shopping Centre Fund S.C.S. SICAV-SIF and Union Investment Real Estate GMBH for €475.3 million (intu share €237.7 million), an 11 per cent discount to the June 2019 valuation. This is expected to complete in early April and deliver net proceeds to intu of around £95.4 million after repaying asset-level debt, working capital adjustments, fees and taxation.

 |
| table | £m                                                            | Notes | 2019      | 2018      | Change
------------------------------------------------------------- | ----- | --------- | --------- | ---------
Investment and development property                           | A     | 6,721.6   | 9,255.7   | (2,534.1)
Joint ventures and other assets classified as held for sale   | B     | 163.7     | –         | 163.7
Investment in associates                                      | C     | 53.7      | 65.6      | (11.9)
Net external debt                                             | D     | (4,498.4) | (4,867.2) | 368.8
Derivative financial instruments                              | E     | (286.9)   | (284.0)   | (2.9)
Other assets and liabilities2                                 |       | (307.7)   | (342.0)   | 34.3
Net assets                                                    |       | 1,846.0   | 3,828.1   | (1,982.1)
Non-controlling interest3                                     |       | 58.2      | (16.4)    | 74.6
IFRS net assets attributable to owners of intu properties plc |       | 1,904.2   | 3,811.7   | (1,907.5)
Other adjustments4                                            |       | 73.1      | 135.4     | (62.3)
EPRA NAV                                                      |       | 1,977.3   | 3,947.1   | (1,969.8)
EPRA NAV per share (pence)                                    | F     | 147p      | 293p      | (146)p |


| _id | d1b363192 |
| title |  |
| text | Restricted Stock Units (RSUs): RSUs represent the right to receive one share of NortonLifeLock common stock for each vested RSU upon the settlement date, subject to continued employment through each vesting date.
(1) Mr. Clark did not receive an RSU award for FY19.
(2) In FY19, Messrs. Taylor and Noviello, as FY18 NEOs, were granted a mix of PRUs and RSUs at 70% and 30%, respectively. All other executives, other than Mr. Clark, received a mix of PRUs and RSUs at 50% and 50%, respectively.

 |
| table | NEO                     | FY19 RSU Award Amount (#)(2) | Grant Date Value ($)
----------------------- | ---------------------------- | --------------------
Gregory S. Clark(1)     | 0                            | 0
Nicholas R. Noviello    | 95,416                       | 2,106,785
Amy L. Cappellanti-Wolf | 78,620                       | 1,683,254
Samir Kapuria           | 238,243                      | 5,100,783
Scott C. Taylor         | 61,339                       | 1,354,365 |


| _id | d1b373268 |
| title |  |
| text | Adoption of ASC 606
On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, applying the modified retrospective method to all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period.

The impact of adopting the standard primarily related to a change in the timing of revenue recognition for voyage charter contracts. In the past, the Company recognized revenue from voyage charters ratably over the estimated length of each voyage, calculated on a discharge-to-discharge basis.

Under the new standard, the Company recognizes revenue from voyage charters ratably over the estimated length of each voyage, calculated on a load-to-discharge basis. In addition, the adoption of ASC 606 resulted in a corresponding change in the timing of recognition of voyage expenses for voyage charter contracts.
The cumulative effect of the changes made to the Company's consolidated January 1, 2018 balance sheet for the adoption of ASC 606 was as follows:

For the year ended December 31, 2018, revenues increased by $1,418, net income increased by $1,101 and basic and diluted net income per share increased by $0.01 as a result of applying ASC 606.

 |
| table | | Balance at December 31, 2017 | Adjustments Due to ASC 606 | Balance at January 1, 2018
--------------------- | ---------------------------- | -------------------------- | --------------------------
Assets                |                              |                            |
Voyage receivables    | $24,209                      | $1,336                     | $25,545
Liabilities           |                              |                            |
Deferred income taxes | 83,671                       | (108)                      | 83,563
Equity                |                              |                            |
Accumulated deficit   | (265,758)                    | (1,228)                    | (266,986) |


| _id | d1b376800 |
| title |  |
| text | The determination of which country a particular sale is allocated to is based on the destination of the product shipment. No other individual country accounted for more than 10% of net revenue during these periods. Although a large percentage of the Company’s products is shipped to Asia, and in particular, China, the Company believes that a significant number of the systems designed by customers and incorporating the Company’s semiconductor products are subsequently sold outside Asia to Europe, Middle East,

sold outside Asia to Europe, Middle East, and Africa, or EMEA markets and North American markets.

Long-lived assets, which consists of property and equipment, net, leased right-of-use assets, intangible assets, net, and goodwill, by geographic area are as follows (in thousands):
(1) Amounts do not include leased right-of-use assets in the prior period due to the adoption of ASC 842 under the modified retrospective method with a cumulative effect adjustment to accumulated deficit as of January 1, 2019.

 |
| table | | As of December 31, |            |          |
------------- | ------------------ | ---------- | -------- | ----------
              | 2019               |            | 2018(1)  |
              | Amount             | % of total | Amount   | % of total
United States | $385,302           | 85%        | $426,321 | 85%
Singapore     | 63,556             | 14%        | 71,945   | 14%
Rest of world | 5,034              | 1%         | 3,368    | 1%
Total         | $453,892           | 100%       | $501,634 | 100% |


| _id | d1b3a26b2 |
| title |  |
| text | NOTE 10 – FREIGHT RECEIVABLES
As of 31 December 2019, freight receivables included receivables at a value of USD 0.0m (2018: USD 0.0m 2017: USD 0.0m) that are individually determined to be impaired to a value of USD 0.0m (2018: USD 0.0m, 2017: USD 0.0m).

Management makes allowance for expected credit loss based on the simplified approach to provide for expected credit losses, which permits the use of the lifetime expected loss provision for all trade receivables. Expected credit loss for receivables overdue more than 180 days is 25%-100%, depending on category. Expected credit loss for receivables overdue more than one year is 100%.

 |
| table | USDm                                               | 2019 | 2018 | 2017
-------------------------------------------------- | ---- | ---- | ----
Analysis as of 31 December of freight receivables: |      |      |
Gross freight receivables:                         |      |      |
Not yet due                                        | 39.8 | 44.0 | 25.5
Due < 30 days                                      | 22.5 | 18.8 | 26.0
Due between 30 and 180 days                        | 25.3 | 20.5 | 18.4
Due > 180 days                                     | 6.0  | 4.4  | 2.7
Total gross                                        | 93.6 | 87.7 | 72.6
Allowance for expected credit loss                 | 3.7  | 1.7  | 1.3
Total net                                          | 89.9 | 86.0 | 71.3 |


| _id | d1b3afaba |
| title |  |
| text | Note 9 Earnings per share
The following table shows the components used in the calculation of basic and diluted earnings per common share for earnings attributable to common shareholders.

(1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 61,170 in 2019 and 12,252,594 in 2018.

 |
| table | FOR THE YEAR ENDED DECEMBER 31                                               | 2019  | 2018
---------------------------------------------------------------------------- | ----- | -----
Net earnings attributable to common shareholders – basic                     | 3,040 | 2,785
Dividends declared per common share (in dollars)                             | 3.17  | 3.02
Weighted average number of common shares outstanding (in millions)           |       |
Weighted average number of common shares outstanding – basic                 | 900.8 | 898.6
Assumed exercise of stock options (1)                                        | 0.6   | 0.3
Weighted average number of common shares outstanding – diluted (in millions) | 901.4 | 898.9 |


| _id | d1b34118c |
| title |  |
| text | Note 5: Income Taxes

On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including: a federal corporate rate reduction from 35% to 21%; limitations on the deductibility of interest expense and executive compensation; creation of the base erosion anti-abuse tax (“BEAT”), a new minimum tax; and the transition of U.S. international taxation from a worldwide tax system to a modified territorial tax system. The

system to a modified territorial tax system. The change to a modified territorial tax system resulted in a one-time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. (the “Transition Tax”), with future distributions not subject to U.S. federal income tax when repatriated. A majority of the provisions in the Tax Act are effective January 1, 2018.

In response to the Tax Act, the SEC staff issued guidance on accounting for the tax effects of the Tax Act. The guidance provides a one-year measurement period for companies to complete the accounting. The Company reflected the income tax effects of those aspects of the Tax Act for which the accounting is complete. To the extent a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, a company should record a provisional estimate

a company should record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act.

In connection with the Company's initial analysis of the impact of the Tax Act, the Company has recorded a provisional estimate of discrete net tax expense of $508,000 for the period ended December 31, 2017. This discrete expense consists of provisional estimates of zero expense for the Transition Tax, $173,000 net benefit for the decrease in the Company's deferred tax liability on unremitted foreign earnings, and $681,000 net expense for remeasurement of the Company's deferred tax assets and liabilities

the Company's deferred tax assets and liabilities for the corporate rate reduction.

During the year ended December 31, 2018, we completed our accounting for the income tax effects of the Tax Act. We did not recognize any additional discrete net tax expense in addition to the provisional amounts recorded at December 31, 2017 for the enactment-date effects of the Tax Act, for a total of $508,000 of discrete net tax expense.

As of December 31, 2019, the Company is permanently reinvested in certain Non-U.S. subsidiaries and does not have a deferred tax liability related to its undistributed foreign earnings. The estimated amount of the unrecognized deferred tax liability attributed to future withholding taxes on dividend distributions of undistributed earnings for certain non-U.S. subsidiaries, which the Company intends to reinvest the related earnings indefinitely in its operations outside the U.S., is approximately $484,000

outside the U.S., is approximately $484,000 at December 31, 2019

The components of income before income tax expense are as follows (in thousands):

 |
| table | Year Ended December 31, |         |
----------------------- | ------- | ------
                        | 2019    | 2018
U.S.                    | $11,553 | $8,677
Foreign                 | (2,604) | (391)
                        | $8,949  | $8,286 |


| _id | d1b38ded8 |
| title |  |
| text | During the year ended 31 December 2019, the Company repurchased 3,486,700 shares on the Stock Exchange for an aggregate consideration of approximately HKD1.16 billion before expenses. The repurchased shares were subsequently cancelled. The repurchase was effected by the Board for the enhancement of shareholder value in the long term. Details of the shares repurchased are as follows:

Save as disclosed above and in Note 32 to the consolidated financial statements, neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company’s shares during the year ended 31 December 2019.

 |
| table | | Purchase consideration per share |            |            |
------------------------- | -------------------------------- | ---------- | ---------- | -------------
                          |                                  |            |            | Aggregate
                          | No. of shares                    | Highest    | Lowest     | consideration
Month of purchase in 2019 | purchased                        | price paid | price paid | paid
                          |                                  | HKD        | HKD        | HKD
August                    | 362,200                          | 327.00     | 312.40     | 116,330,916
September                 | 2,294,500                        | 351.00     | 323.60     | 776,104,729
October                   | 830,000                          | 327.80     | 317.40     | 268,272,462
Total:                    | 3,486,700                        |            |            | 1,160,708,107 |


| _id | d1b2f109c |
| title |  |
| text | ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
The following table presents our unaudited pro forma results for the acquisitions of Artesyn and LumaSense:

The unaudited pro forma results for all periods presented include adjustments made to account for certain costs and transactions that would have been incurred had the acquisitions been completed at the beginning of the year prior to the year of acquisition. These include adjustments to amortization charges for acquired intangible assets, interest and financing expenses, transaction costs, amortization of purchased gross profit and the alignment of various accounting policies. These adjustments are net of

accounting policies. These adjustments are net of any applicable tax impact and were included to arrive at the pro forma results above.

Artesyn’s operating results have been included in the Advanced Energy’s operating results for the periods subsequent to the completion of the acquisition on September 10, 2019. During the year ended December 31, 2019, Artesyn contributed total sales of $220.3 million and net income of $7.1 million, including interest and other expense associated with the financing of the transaction.

 |
| table | |             |            | Year Ended December 31, |
----------------------------------------------------------- | ----------- | ---------- | ----------------------- | ----------
                                                            | 2019        |            | 2018                    |
                                                            | As Reported | Pro Forma  | As Reported             | Pro Forma
Total sales                                                 | $788,948    | $1,202,790 | $718,892                | $1,350,037
Net income attributable to Advanced Energy Industries, Inc. | $64,941     | $83,104    | $147,025                | $158,422
Earnings per share:                                         |             |            |                         |
Basic earnings per share                                    | $1.70       | $2.17      | $3.76                   | $4.05
Diluted earnings per share                                  | $ 1.69      | $ 2.16     | $ 3.74                  | $ 4.03 |


| _id | d1b39b222 |
| title |  |
| text | Research and Development
Research and development expenses increased $24.2 million, or 31%, in 2019 as compared to 2018. The increase was principally due to the 2018 Reallocation of headcount from sales and marketing to research and development, as well as investments to maintain and improve the functionality of our products. As a result, we incurred increased employee-related costs of $16.3 million and increased overhead costs of $3.4 million.

Research and development expenses increased $15.0 million, or 24%, in 2018 as compared to 2017. The increase was principally due to the 2018 Reallocation of headcount from sales and marketing to research and development, as well as investments to maintain and improve the functionality of our products. As a result, we incurred increased employee-related costs of $12.1 million.

 |
| table | |          | Year Ended December 31, |
------------------------ | -------- | ----------------------- | -------
                         | 2019     | 2018                    | 2017
                         |          | (dollars in thousands)  |
Research and development | $101,151 | $76,981                 | $61,975
Percent of revenue       | 17.5%    | 14.3%                   | 12.9% |


| _id | d1b3bd598 |
| title |  |
| text | Property, Plant and Equipment.
Property, plant and equipment is stated at cost. Maintenance and repair costs are expensed as incurred. Depreciation is calculated using the straight-line method using estimated useful lives of 5 to 40 years for buildings and building improvements and 3 to 15 years for machinery and equipment. A summary of property, plant and equipment is shown below:

Depreciation expense was $27.2 million, $22.5 million and $22.0 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. As of April 27, 2019 and April 28, 2018, capital expenditures recorded in accounts payable totaled $6.4 million and $9.0 million, respectively.

 |
| table | (Dollars in Millions)                      | April 27, 2019 | April 28, 2018
------------------------------------------ | -------------- | --------------
Land                                       | $3.7           | $0.8
Buildings and Building Improvements        | 81.2           | 69.2
Machinery and Equipment                    | 390.7          | 364.7
Total Property, Plant and Equipment, Gross | 475.6          | 434.7
Less: Accumulated Depreciation             | 283.7          | 272.5
Property, Plant and Equipment, Net         | $191.9         | $162.2 |


| _id | d1b33ec7a |
| title |  |
| text | ITEM 6. SELECTED FINANCIAL DATA

The selected consolidated statements of operations data for the years ended December 31, 2019, 2018 and 2017 and the selected consolidated balance sheet data as of December 31, 2019 and 2018 are derived from our audited consolidated financial statements included elsewhere in this Annual Report. The selected consolidated statements of operations data for the years ended December 31, 2016 and 2015 and the selected consolidated balance sheet data as of December 31, 2017, 2016 and 2015 are derived from our

31, 2017, 2016 and 2015 are derived from our audited consolidated financial statements not included in this Annual Report. Our historical results are not necessarily indicative of the results to be expected in the future. The selected financial data should be read together with Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and in conjunction with our consolidated financial statements, related notes, and other financial information included elsewhere in this

financial information included elsewhere in this Annual Report. The following tables set forth our selected consolidated financial and other data for the years ended and as of December 31, 2019, 2018, 2017, 2016 and 2015 (in thousands, except share and per share data).

Information about prior period acquisitions that may affect the comparability of the selected financial information presented below is included in Item 1. Business. Information about the $28.0 million expense recorded in general and administrative expense in 2018, which relates to the agreement reached to settle the legal matter alleging violations of the Telephone Consumer Protection Act, or TCPA, and may affect the comparability of the selected financial information presented below, is disclosed in Item

information presented below, is disclosed in Item 3. “Legal Proceedings.” Information about the $1.7 million of interest recorded within interest income and the $6.9 million of gain recorded within other income, net, in 2019, which relates to promissory note proceeds received from one of our hardware suppliers and proceeds from an acquired promissory note, and may affect the comparability of the selected financial information presented below, is disclosed in Item 7. "Management’s Discussion and Analysis of

Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations."

Certain previously reported amounts in the consolidated statements of operations for the years ended December 31, 2018, 2017, 2016 and 2015 have been reclassified to conform to our current presentation to reflect interest income as a separate line item, which was previously included in other income, net.

 |
| table | |         |         | Year Ended December 31, |        |
-------------------------------------- | ------- | ------- | ----------------------- | ------ | ------
                                       | 2019    | 2018    | 2017                    | 2016   | 2015
Stock-based compensation expense data: |         |         |                         |        |
Sales and marketing                    | $2,075  | $1,196  | $561                    | $536   | $372
General and administrative             | 6,474   | 4,901   | 2,638                   | 1,430  | 2,486
Research and development               | 12,054  | 7,332   | 4,214                   | 2,035  | 1,266
Total stock-based compensation expense | $20,603 | $13,429 | $7,413                  | $4,001 | $4,124 |


| _id | d1b30716c |
| title |  |
| text | Share Repurchase Program
In both fiscal 2019 and 2018, our board of directors authorized increases of $1.5 billion in our share repurchase program. Common shares repurchased under the share repurchase program were as follows:
At fiscal year end 2019, we had $1.5 billion of availability remaining under our share repurchase authorization.

 |
| table | |         | Fiscal        |
----------------------------------- | ------- | ------------- | -----
                                    | 2019    | 2018          | 2017
                                    |         | (in millions) |
Number of common shares repurchased | 12      | 10            | 8
Repurchase value                    | $ 1,014 | $ 966         | $ 621 |


| _id | d1b33e8e2 |
| title |  |
| text | 13. Intangible assets continued
Goodwill has been allocated to three CGUs, which align with the reportable operating segments, as follows:

 |
| table | | 2019      | 2018
--------------------------- | --------- | ---------
                            | $ million | $ million
Networks & Security         | 73.4      | 72.0
Lifecycle Service Assurance | 37.6      | 37.6
Connected Devices           | 46.1      | 46.1
                            | 157.1     | 155.7 |


| _id | d1b34bc0e |
| title |  |
| text | 18. Trade and other receivables
Following the application of IFRS 16, trade and other receivables have been restated (note 2).

Trade receivables are amounts due from customers for services performed in the ordinary course of business. They are generally due for settlement within 30 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional and has been invoiced at the reporting date. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the

them subsequently at amortised cost using the effective interest method.

Accrued income relates to the Group’s rights to consideration for services provided but not invoiced at the reporting date. Accrued income is transferred to receivables when invoiced. Other receivables include £0.1m due from Auto Trader Auto Stock Limited, a related party (note 34).
Exposure credit risk and expected credit losses relating to trade and other receivables are disclosed in note 31.

 |
| table | | 2019  | (Restated) 2018
--------------------------------------------------- | ----- | ---------------
                                                    | £m    | £m
Trade receivables                                   | 27.0  | 28.8
Less: provision for impairment of trade receivables | (2.1) | (3.4)
Net trade receivables                               | 24.9  | 25.4
Accrued income                                      | 28.0  | 26.7
Prepayments                                         | 2.9   | 2.7
Other receivables                                   | 0.3   | 0.1
Total                                               | 56.1  | 54.9 |