| _id | d1b389748 |
| title |  |
| text | The unrecognized tax benefit at December 31, 2019 and 2018, was $29.0 million and $28.4 million, respectively, of which $22.4 million and $22.6 million, respectively, are included in other noncurrent liabilities in the consolidated balance sheets. Of the total unrecognized tax benefit amounts at December 31, 2019 and 2018, $28.2 million and $27.5 million, respectively, represent the net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate in the respective

the effective income tax rate in the respective years.

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands):

The Company files income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions, and many foreign jurisdictions. The United States, Germany, India, Ireland, Luxembourg, Mexico, the United Kingdom, and Uruguay are the main taxing jurisdictions in which the Company operates. The years open for audit vary depending on the tax jurisdiction. In the United States, the Company’s tax returns for years following 2015 are open for audit. In the foreign jurisdictions, the tax returns open

the foreign jurisdictions, the tax returns open for audit generally vary by jurisdiction between 2003 and 2018.

The Company’s Indian income tax returns covering fiscal years 2003, 2005, 2010 through 2013, and 2016 are under audit by the Indian tax authority. Other foreign subsidiaries could face challenges from various foreign tax authorities. It is not certain that the local authorities will accept the Company’s tax positions. The Company believes its tax positions comply with applicable tax law and intends to vigorously defend its positions. However, differing positions on certain issues could be upheld by tax

on certain issues could be upheld by tax authorities, which could adversely affect the Company’s financial condition and results of operations.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $11.7 million due to the settlement of various audits and the expiration of statutes of limitations. The Company accrues interest related to uncertain tax positions in interest expense or interest income and recognizes penalties related to uncertain tax positions in other income or other expense. As of December 31, 2019 and 2018, $1.2 million is accrued

31, 2019 and 2018, $1.2 million is accrued for the payment of interest and penalties related to income tax liabilities. The aggregate amount of interest and penalties expense (benefit) recorded in the statements of operations for the years ended December 31, 2019, 2018, and 2017, is $0.2 million, $0.0 million, and $(0.8) million, respectively.

 |
| table | | 2019     | 2018    | 2017
------------------------------------------------------------------- | -------- | ------- | --------
Balance of unrecognized tax benefits at beginning of year           | $28,406  | $27,237 | $24,278
Increases for tax positions of prior years                          | 2,784    | 315     | 2,478
Decreases for tax positions of prior years                          | (96 )    | (61)    | (114 )
Increases for tax positions established for the current period      | 2,542    | 1,185   | 1,677
Decreases for settlements with taxing authorities                   | (220 )   | —       | (154 )
Reductions resulting from lapse of applicable statute of limitation | (4,462 ) | (115)   | (1,155 )
Adjustment resulting from foreign currency translation              | 46       | (155)   | 227
Balance of unrecognized tax benefits at end of year                 | $29,000  | $28,406 | $27,237 |


| _id | d1b38a56c |
| title |  |
| text | Note 3 – Inventories, net
Inventories consisted of the following:

 |
| table | |         | December 31,
---------------------- | ------- | ------------
                       | 2019    | 2018
Ingredients            | $ 1,942 | $ 1,580
Packaging              | 2,230   | 2,072
Finished goods         | 2,220   | 2,165
Total inventories, net | $ 6,392 | $ 5,817 |


| _id | d1b358206 |
| title |  |
| text | Results of Operations
Year Ended December 31, 2019 Compared to the Year Ended December 31, 2018
Our management reviews and analyzes several key financial measures in order to manage our business and assess the quality of and variability of our service revenue, operating results and cash flows. The following summary tables present a comparison of our results of operations with respect to certain key financial measures. The comparisons illustrated in the tables are discussed in greater detail below.

 |
| table | |         | Year Ended December 31, |
---------------------------------- | ------- | ----------------------- | --------------
                                   | 2019    | 2018                    | Percent Change
Other Operating Data               |         |                         |
Average Revenue Per Unit (ARPU)    |         |                         |
ARPU—on-net                        | $ 461   | $ 480                   | (3.8)%
ARPU—off-net                       | $ 1,097 | $ 1,155                 | (5.0)%
Average price per megabit          | $ 0.62  | $ 0.82                  | (23.9)%
Customer Connections—end of period |         |                         |
On-net                             | 74,554  | 68,770                  | 8.4%
Off-net                            | 11,660  | 10,974                  | 6.3% |


| _id | d1b3c7cfa |
| title |  |
| text | Share-Based Compensation
The following table shows a summary of share-based compensation expense included in the Consolidated Statements of Operations during the periods presented (in thousands):
Amounts presented above include share-based compensation expense of $0.8 million for fiscal year 2017, which is recorded as discontinued operations related to employees of our Compute business.

As of September 27, 2019, the total unrecognized compensation costs related to outstanding stock options, restricted stock awards and units including awards with time-based, performance-based, and market-based vesting was $47.0 million, which we expect to recognize over a weighted-average period of 2.9 years.

 |
| table | |         | Fiscal Years |
----------------------------------- | ------- | ------------ | -------
                                    | 2019    | 2018         | 2017
Cost of revenue                     | $2,936  | $3,869       | $3,189
Research and development            | 8,551   | 13,448       | 10,565
Selling, general and administrative | 12,305  | 14,620       | 22,581
Total                               | $23,792 | $31,937      | $36,335 |


| _id | d1b302f4a |
| title |  |
| text | SELECTED FINANCIAL DATA

The following data should be read in conjunction with the consolidated financial statements and accompanying notes included elsewhere in the Annual Report on Form 10-K. Fiscal 2018 and 2017 have been recast to reflect the Company’s retrospective adoption of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, and related amendments, collectively referred to as Accounting Standards Codification (“ASC”) 606. Fiscal 2016 and 2015 were not recast. Net income for fiscal 2018 and

were not recast. Net income for fiscal 2018 and 2019 has been impacted by the reduced U.S. corporate tax rate enacted by the Tax Cuts and Jobs Act (“TCJA”) of 2017, and fiscal 2018 net income contains the related adjustment for the re-measurement of deferred taxes. Acquisitions have affected revenue and net income in fiscal 2019 as well as the historical periods presented.

(1) Revenue includes license sales, support and service revenues, and hardware sales, less returns and allowances.

 |
| table | |            |            | (In Thousands, Except Per Share Data) |             |
---------------------------- | ---------- | ---------- | ------------------------------------- | ----------- | -----------
                             |            |            | YEAR ENDED JUNE 30,                   |             |
Income Statement Data        | 2019       | 2018       | 2017                                  | 2016        | 2015
                             |            |            |                                       | *Unadjusted | *Unadjusted
Revenue (1)                  | $1,552,691 | $1,470,797 | $1,388,290                            | $1,354,646  | $1,256,190
Net Income                   | $271,885   | $365,034   | $229,561                              | $248,867    | $211,221
Basic earnings per share     | $3.52      | $4.73      | $2.95                                 | $3.13       | $2.60
Diluted earnings per share   | $3.52      | $4.70      | $2.93                                 | $3.12       | $2.59
Dividends declared per share | $1.54      | $1.36      | $1.18                                 | $1.06       | $0.94
Balance Sheet Data           |            |            |                                       |             |
Total deferred revenue       | $394,306   | $369,915   | $368,151                              | $521,054    | $531,987
Total assets                 | $2,184,829 | $2,033,058 | $1,868,199                            | $1,815,512  | $1,836,835
Long-term debt               | $—         | $—         | $50,000                               | $—          | $50,102
Stockholders’ equity         | $1,429,013 | $1,322,844 | $1,099,693                            | $996,210    | $991,534 |


| _id | d1b39c2ee |
| title |  |
| text | 49. Notes on related parties
In financial year 2018/19, METRO maintained the following business relations to related companies:
Transactions with associated companies and other related parties

The services received totalling €93 million (2017/18: €96 million) that METRO companies received from associates and other related parties in financial year 2018/19 consisted mainly of real estate leases in the amount of €79 million (2017/18: €80 million), thereof €76 million from associates; (2017/18: €78 million) and the rendering of services in the amount of €15 million (2017/18: €16 million), thereof €7 million from joint ventures; (2017/18: €8 million). Other future financial commitments in the amount

Other future financial commitments in the amount of €667 million (2017/18: €719 million) consist of tenancy agreements with the following associated companies: OPCI FWP France, OPCI FWS France, Habib METRO Pakistan and the Mayfair group. In financial year 2018/19, METRO companies provided services to companies belonging to the group of associates and related parties in the amount of €8 million (2017/18: €8 million). A dividend of €38 million has been paid out to a shareholder with significant influence.

out to a shareholder with significant influence. Business relations with related parties are based on contractual agreements providing for arm’s length prices. As in financial year 2017/18, there were no business relations with related natural persons and companies of management in key positions in financial year 2018/19.

Related persons (compensation for management in key positions)

The management in key positions consists of members of the Management Board and the Supervisory Board of METRO AG. Thus, the expenses for members of the Management Board of METRO AG amounted to €6.9 million (2017/18: €5.2 million) for short-term benefits and €3.7 million (2017/18: €7.0 million) for post-employment benefits. Thereof an amount of €3.0 million relates to termination benefits paid in financial year 2018/19. The expenses for existing compensation programmes with long-term incentive effect in

programmes with long-term incentive effect in financial year 2018/19, calculated in accordance with IFRS 2, amounted to €2.6 million (2017/18: €0.7 million). The short-term compensation for the members of the Supervisory Board of METRO AG amounted to €2.2 million (2017/18: €2.2 million). The total compensation for members of the Management Board in key positions in financial year 2018/19 amounted to €15.4 million (2017/18: €15.1 million).

 |
| table | € million                                           | 2017/2018 | 2018/2019
--------------------------------------------------- | --------- | ---------
Services provided                                   | 8         | 8
Associates                                          | 5         | 5
Joint ventures                                      | 3         | 3
Miscellaneous related parties                       | 0         | 0
Services received                                   | 96        | 93
Associates                                          | 78        | 76
Joint ventures                                      | 8         | 7
Miscellaneous related parties                       | 10        | 10
Receivables from services provided, as of 30/9      | 0         | 0
Associates                                          | 0         | 0
Joint ventures                                      | 0         | 0
Miscellaneous related parties                       | 0         | 0
Liabilities from goods/services received as of 30/9 | 1         | 1
Associates                                          | 0         | 0
Joint ventures                                      | 0         | 0
Miscellaneous related parties                       | 1         | 1 |


| _id | d1a7249da |
| title |  |
| text | Stock-Based Compensation Expense
All share-based awards are measured based on the grant date fair value of the awards and recognized in the Consolidated Statements of Operations and Comprehensive Loss over the period during which the employee is required to perform services in exchange for the award (generally the vesting period of the award).

The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model, which requires assumptions, including the fair value of the Company's underlying common stock, expected term, expected volatility, risk-free interest rate and dividend yield of the Company's common stock. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, share-based compensation expense could be

used, share-based compensation expense could be materially different in the future.

These assumptions are estimated as follows:
• Fair Value of Common Stock. The Company uses the five-day volume weighted average price for its common stock as reported on the New York Stock Exchange.
• #Expected Term. The Company determines the expected term based on the average period the stock options are expected to remain outstanding. The Company bases the expected term assumptions on its historical behavior combined with estimates of the post-vesting holding period.

• Expected Volatility. The Company determines the price volatility factor based on the Company's historical volatility over the expected life of the stock options.
• Risk-Free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes valuation model on the yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term of the stock options for each stock option group.

• Expected Dividend. The Company has not paid and does not anticipate paying any cash dividends in the foreseeable future and, therefore, uses an expected dividend yield of zero in the option pricing model.
The grant weighted average assumptions used to estimate the fair value of stock options granted to employees were as follows:

 |
| table | | Years ended       |
----------------------- | ----------------- | -----------------
                        | December 31, 2019 | December 31, 2018
Expected volatility     | 50.7%             | 54.2%
Risk-free interest rate | 2.25%             | 2.72%
Dividend yield          | Nil               | Nil
Average expected life   | 4.77              | 5.31 |


| _id | d1b31e448 |
| title |  |
| text | Selected financial data
Unaudited information
The selected financial data shown below include the results of Vodafone India as discontinued operations in all years following the agreement to combine it with Idea Cellular.
Notes: 1 See note 8 to the consolidated financial statements, “Earnings per share”. Earnings and dividends per ADS is calculated by multiplying earnings per ordinary share by ten, the number of ordinary shares per ADS.

2 On 19 February 2014, we announced a “6 for 11” share consolidation effective 24 February 2014. This had the effect of reducing the number of shares in issue from 52,821,751,216 ordinary shares (including 4,351,833,492 ordinary shares held in Treasury) as at the close of business on 18 February 2014 to 28,811,864,298 new ordinary shares in issue immediately after the share consolidation on 24 February 2014.

3 The final dividend for the year ended 31 March 2019 was proposed by the Directors on 14 May 2019 and is payable on 2 August 2019 to holders of record as of 7 June 2019. The total dividends have been translated into US dollars at 31 March 2019 for purposes of the above disclosure but the dividends are payable in US dollars under the terms of the ADS depositary agreement.

 |
| table | At/for the year ended 31 March                              | 2019     | 2018    | 2017     | 2016     | 2015
----------------------------------------------------------- | -------- | ------- | -------- | -------- | -------
Consolidated income statement data (€m)                     |          |         |          |          |
Revenue                                                     | 43,666   | 46,571  | 47,631   | 49,810   | 48,385
Operating (loss)/profit                                     | (951)    | 4,299   | 3,725    | 1,320    | 2,073
(Loss)/profit before taxation                               | (2,613)  | 3,878   | 2,792    | (190)    | 1,734
(Loss)/profit for financial year from continuing operations | (4,109)  | 4,757   | (1,972)  | (5,127)  | 7,805
(Loss)/profit for the financial year                        | (7,644)  | 2,788   | (6,079)  | (5,122)  | 7,477
Consolidated statement of financial position data (€m)      |          |         |          |          |
Total assets                                                | 142,862  | 145,611 | 154,684  | 169,107  | 169,579
Total equity                                                | 63,445   | 68,607  | 73,719   | 85,136   | 93,708
Total equity shareholders’ funds                            | 62,218   | 67,640  | 72,200   | 83,325   | 91,510
Earnings per share1,2                                       |          |         |          |          |
Weighted average number of shares (millions)                |          |         |          |          |
– Basic                                                     | 27,607   | 27,770  | 27,971   | 26,692   | 26,489
– Diluted                                                   | 27,607   | 27,857  | 27,971   | 26,692   | 26,629
Basic (loss)/earnings per ordinary share                    | (29.05)c | 8.78c   | (22.51)c | (20.25)c | 27.48c
Diluted (loss)/earnings per ordinary share                  | (29.05)c | 8.76c   | (22.51)c | (20.25)c | 27.33c
Basic (loss)/earnings per share from continuing operations  | (16.25)c | 15.87c  | (7.83)c  | (20.27)c | 28.72c
Cash dividends1,3                                           |          |         |          |          |
Amount per ordinary share (eurocents)                       | 9.00c    | 15.07c  | 14.77c   | –        | –
Amount per ADS (eurocents)                                  | 9.00c    | 15.07c  | 147.7c   | –        | –
Amount per ordinary share (pence)                           | –        | –       | –        | 11.45p   | 11.22p
Amount per ADS (pence)                                      | –        | –       | –        | 114.5p   | 111.2p
Amount per ordinary share (US cents)                        | 10.10c   | 17.93c  | 18.52c   | 16.49c   | 16.65c
Amount per ADS (US cents)                                   | 10.10c   | 179.3c  | 182.5c   | 164.9c   | 166.5c |


| _id | d1b34134e |
| title |  |
| text | 11. Quarterly financial information (unaudited): (Continued)
(1) Included in net income for the three months ended September 30, 2019 and December 31, 2019 are an unrealized gain and (loss) on foreign exchange on the Company’s 2024 Notes of $6.1 million and ($4.0) million, respectively.

 |
| table | |                | Three months ended                                 |                    |
--------------------------------------------------------------- | -------------- | -------------------------------------------------- | ------------------ | -----------------
                                                                | March 31, 2018 | June 30, 2018                                      | September 30, 2018 | December 31, 2018
                                                                |                | (in thousands, except share and per share amounts) |                    |
Service revenue                                                 | $128,706       | $129,296                                           | $130,139           | $132,049
Network operations, including equity-based compensation expense | 54,875         | 54,379                                             | 54,615             | 55,660
Gains on equipment transactions                                 | 117            | 357                                                | 416                | 92
Operating income                                                | 20,637         | 21,354                                             | 22,255             | 22,311
Net income                                                      | 6,784          | 6,552                                              | 8,231              | 7,100
Net income per common share—basic and diluted                   | 0.15           | 0.15                                               | 0.18               | 0.16
Weighted-average number of common shares—basic                  | 44,923,973     | 45,016,767                                         | 45,105,830         | 45,284,481
Weighted-average number of common shares—diluted                | 45,294,697     | 45,536,473                                         | 45,699,635         | 45,803,418 |


| _id | d1b374e60 |
| title |  |
| text | The total compensation of the Executive Board members for each of the years 2019, 2018, and 2017 was as follows:
Executive Board Compensation
1) Portion of total executive compensation allocated to the respective year

 |
| table | € thousands                  | 2019   | 2018   | 2017
---------------------------- | ------ | ------ | ------
Short-term employee benefits | 17,378 | 18,652 | 16,634
Share-based payment1)        | 32,393 | 23,646 | 25,723
Subtotal1)                   | 49,771 | 42,298 | 42,357
Post-employment benefits     | 2,825  | 1,106  | 1,312
Thereof defined-benefit      | 2,056  | 250    | 423
Thereof defined-contribution | 769    | 856    | 889
Total1)                      | 52,596 | 43,404 | 43,669 |


| _id | d1b3b5712 |
| title |  |
| text | BALANCE SHEET DATA
(In thousands)
(1) Working capital consists of current assets less current liabilities. Amounts prior to 2016 have been recast to conform to the current period’s presentation as a result of our adoption of Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes. See Note 1 of Notes to Consolidated Financial Statements, included in Part II, Item 8 of this report for additional information.

(2) Total debt outstanding consisted of taxable revenue bonds due to the State of Alabama Industrial Development Authority. The bonds matured on January 1, 2020 and were repaid in full on January 2, 2020. See Note 12 of Notes to Consolidated Financial Statements, included in Part II, Item 8 of this report for additional information.

 |
| table | As of December 31,   | 2019     | 2018     | 2017     | 2016     | 2015
-------------------- | -------- | -------- | -------- | -------- | --------
Working capital (1)  | $207,599 | $237,416 | $306,296 | $226,367 | $219,219
Total assets         | $545,118 | $628,027 | $669,094 | $667,235 | $632,904
Total debt (2)       | $24,600  | $25,600  | $26,700  | $27,800  | $28,900
Stockholders’ equity | $380,426 | $446,279 | $497,911 | $479,517 | $480,160 |


| _id | d1b3278c2 |
| title |  |
| text | Administrative expenses
The Group has adopted IFRS 16 ‘Leases’ in the period, which impacts Other costs and Depreciation & amortisation within Operating profit. Property and vehicle rental charges are no longer included in other costs, and depreciation now includes depreciation on leased assets. Prior period comparatives have been restated to reflect these changes as the fully retrospective approach has been used.

Operating costs continue to be well controlled, with administrative expenses increasing by 3% to £112.3m (2018 restated: £108.8m).

People costs, which comprise all staff costs including third-party contractor costs, increased by 3% in the year to £56.4m (2018: £54.8m). The increase in people costs was driven primarily by underlying salary costs which increased due to strong competition for digital talent, however this has been partially offset by a reduction in average full-time equivalent employees (‘FTEs’) (including contractors) to 804 (2018: 824). The number of FTEs was particularly impacted in the fourth quarter by the transfer

impacted in the fourth quarter by the transfer of 15 staff to Dealer Auction, our joint venture with Cox Automotive UK. Share-based payments, including applicable national insurance costs of £5.9m (2018: £3.7m), have been included within people costs. The year-on-year increase in the share-based payment charge was due to leavers under the Performance Share Plan in 2018 for which a credit was recognised in the prior year, and a change in the way senior management are remunerated. The Group now settles a

are remunerated. The Group now settles a greater proportion of the senior management incentive scheme in shares which increases the share-based payment charge with an offset realised within cash bonuses.

Marketing spend increased in line with revenue by 8% to £17.6m (2018: £16.3m), as we look to maintain and enhance our audience position and educate consumers on new products such as new car offerings and search by monthly payment.
Other costs, which include data services, property related costs and other overheads, remain well controlled and increased by 2% on a like-for-like basis to £29.4m (2018 restated: £28.7m).

Depreciation & amortisation remained broadly flat at £8.9m (2018 restated: £9.0m). Within this was depreciation of £2.0m in relation to lease assets (2018 restated: £1.9m).
1    2018 has been restated for the impact of IFRS 16.

 |
| table | | 2019  | 2018  |
----------------------------- | ----- | ----- | ------
Costs                         | £m    | £m    | Change
People costs                  | 56.4  | 54.8  | 3%
Marketing                     | 17.6  | 16.3  | 8%
Other costs                   | 29.4  | 28.7  | 2%
Depreciation and amortisation | 8.9   | 9.0   | (1%)
Total administrative expenses | 112.3 | 108.8 | 3% |


| _id | d1b377840 |
| title |  |
| text | Property and equipment, net (in millions):

In September 2017, we entered into an agreement to sell certain land and buildings located in Sunnyvale, California, with a book value of $118 million, for a total of $306 million, through two separate and independent closings. Upon the completion of the first closing in fiscal 2018, we consummated the sale of properties with a net book value of $66 million for cash proceeds of $210 million, resulting in a gain, net of direct selling costs, of $142 million. The remaining properties, consisting of land with

The remaining properties, consisting of land with a net book value of $52 million, were classified as assets held-for-sale, and included as other current assets in our consolidated balance sheets as of April 26, 2019 and April 27, 2018. We will consummate the sale of these properties, and receive cash proceeds of $96 million, upon the completion of the second closing, which is expected to occur within the next 12 months. That closing is subject to due diligence, certain termination rights and customary

certain termination rights and customary closing conditions, including local governmental approval of the subdivision of a land parcel.

 |
| table | | April 26, 2019 | April 27, 2018
----------------------------------------------------- | -------------- | --------------
Land                                                  | $ 106          | $ 106
Buildings and improvements                            | 605            | 594
Leasehold improvements                                | 86             | 88
Computer, production, engineering and other equipment | 817            | 733
Computer software                                     | 357            | 357
Furniture and fixtures                                | 105            | 99
Construction-in-progress                              | 10             | 27
                                                      | 2,086          | 2,004
Accumulated depreciation and amortization             | (1,327 )       | (1,248 )
Property and equipment, net                           | $ 759          | $ 756 |


| _id | d1b35243c |
| title |  |
| text | S. INCOME TAXES
The components of income (loss) before income taxes and the provision (benefit) for income taxes as shown in the consolidated statements of operations were as follows:
Income tax expense for 2019, 2018 and 2017 totaled $58.3 million, $16.0 million and $266.7 million, respectively. The effective tax rate for 2019, 2018 and 2017 was 11.1%, 3.4% and 50.9%, respectively.

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”), making significant changes to the Internal Revenue Code. The Tax Reform Act has significant direct and indirect implications for accounting for income taxes under ASC 740, “Accounting for Income Taxes” some of which could not be calculated with precision until further clarification and guidance was made available from tax authorities, regulatory bodies or the FASB. In light of this uncertainty, on December 22,

In light of this uncertainty, on December 22, 2017 the SEC issued Staff Accounting Bulletin (“SAB”) No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” to address uncertainty in the application of U.S. GAAP when the registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. In accordance with SAB 118, Teradyne recorded $186.0 million

with SAB 118, Teradyne recorded $186.0 million of additional income tax expense in the fourth quarter of 2017 which represented Teradyne’s best estimate of the impact of the Tax Reform Act in accordance with Teradyne’s understanding of the Tax Reform Act and available guidance as of that date. The $186.0 million was primarily composed of expense of $161.0 million related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings, $33.6 million of expense related to the

earnings, $33.6 million of expense related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, and a benefit of $10.3 million associated with the impact of correlative adjustments on uncertain tax positions. In accordance with the requirements of SAB 118, in the fourth quarter of 2018, Teradyne completed its analysis of the effect of the Tax Reform Act based on the application of the most recently available guidance as

of the most recently available guidance as of December 31, 2018 and recorded $49.5 million of net income tax benefit. The net benefit consisted of $51.7 million of benefit resulting from a reduction in the estimate of the one-time transition tax on the mandatory deemed repatriation of foreign earnings and an expense of $2.2 million associated with the impact of correlative adjustments on uncertain tax positions.

 |
| table | | 2019     | 2018           | 2017
------------------------------------ | -------- | -------------- | --------
                                     |          | (in thousands) |
Income before income taxes           |          |                |
U.S                                  | $192,442 | $189,691       | $76,699
Non-U.S                              | 333,330  | 278,110        | 447,713
                                     | $525,772 | $467,801       | $524,412
Provision (benefit) for income taxes |          |                |
Current:                             |          |                |
U.S. Federal                         | $19,297  | $(59,122)      | $162,679
Non-U.S                              | 52,810   | 45,083         | 64,313
State                                | (4,347)  | 1,721          | 2,623
                                     | 67,760   | (12,318)       | 229,615
Deferred:                            |          |                |
U.S. Federal                         | (4,522)  | 29,252         | 43,687
Non-U.S                              | (8,007)  | (1,243)        | (6,476)
State                                | 3,073    | 331            | (106)
                                     | (9,456)  | 28,340         | 37,105
Total provision for income taxes     | $58,304  | $16,022        | $266,720 |


| _id | d1b3b9f92 |
| title |  |
| text | RECENT DEVELOPMENTS AND RESULTS OF OPERATIONS
The results of operations that follow have first been divided into (a) our controlling interests in our publicly-traded subsidiaries Teekay LNG and Teekay Tankers and (b) Teekay Parent.

Within these groups, we have further subdivided the results into their respective lines of business. The following table (a) presents revenues and income (loss) from vessel operations for each of Teekay LNG and Teekay Tankers, and for Teekay Parent, and (b) reconciles these amounts to our consolidated financial statements.

(1) During 2019, Teekay Tankers' ship-to-ship transfer business provided operational and maintenance services to Teekay LNG Bahrain Operations L.L.C., an entity wholly-owned by Teekay LNG, for the LNG receiving and regasification terminal in Bahrain. Also during 2019, the Magellan Spirit LNG carrier was chartered by Teekay LNG to Teekay Parent for a short period of time. During 2018, Teekay Parent chartered in two LNG carriers from Teekay LNG until March and April 2018.

 |
| table | | Revenues  |           | Income (loss) from vessel operations |
------------------------------- | --------- | --------- | ------------------------------------ | -------
(in thousands of U.S. dollars)  | 2019      | 2018      | 2019                                 | 2018
Teekay LNG                      | 601,256   | 510,762   | 299,253                              | 148,599
Teekay Tankers                  | 943,917   | 776,493   | 123,883                              | 7,204
Teekay Parent                   | 413,806   | 451,659   | (219,094)                            | 8,516
Elimination of intercompany (1) | (13,588)  | (10,426)  | —                                    | —
Teekay Corporation Consolidated | 1,945,391 | 1,728,488 | 204,042                              | 164,319 |


| _id | d1b3be34e |
| title |  |
| text | Note 4. Expenses
Accounting policy for expenses
Operating lease costs
Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a straight-line basis over the term of the lease.
Finance costs
All finance costs are expensed in the period in which they are incurred.
Research and development costs

Research and development costs
Expenditure on research activities, undertaken with the prospect of obtaining new technical knowledge and understanding, is recognised in the statement of profit or loss and other comprehensive income as an expense when it is incurred.

Expenditure on development activities is charged as incurred, or deferred where these costs are directly associated with either integration of acquired technology or the development of new technology and it is determined that the technology has reached technological feasibility. Costs are deferred to future periods to the extent that they are expected beyond any reasonable doubt to be recoverable. The costs capitalised comprises directly attributable costs, including costs of materials, services and direct

including costs of materials, services and direct labour. Deferred costs are amortised from the date of commercial release on a straight-line basis over the period of the expected benefit, which varies from 2 to 10 years.

 |
| table | Consolidated                                                       |        |
------------------------------------------------------------------ | ------ | ------
                                                                   | 2019   | 2018
                                                                   | US$000 | US$000
Profit before income tax includes the following specific expenses: |        |
Included in professional advice expense                            |        |
Costs associated with acquisitions                                 | 244    | 572
Finance costs                                                      |        |
Interest and finance charges paid/payable                          | 1      | 2
Unwinding of the discount on provisions                            | 199    | 60
Finance costs expensed                                             | 200    | 62
Operating leases included in income statement                      |        |
Office rent                                                        | 4,339  | 3,538
Equipment                                                          | 12     | 16
Motor vehicle                                                      | 51     | 96
Total expense relating to operating leases                         | 4,402  | 3,650
Post-employment benefits                                           |        |
Post-employment benefits: defined contribution                     | 2,169  | 1,870
Research and development costs expensed                            |        |
Research and development costs incurred                            | 18,478 | 17,793 |


| _id | d1b3a0da8 |
| title |  |
| text | 21. Supplemental Data
The following are additional required disclosures and other material items:

 |
| table | |        | Years Ended June 30, |
------------------------------------------------------------ | ------ | -------------------- | -------
($ in millions)                                              | 2019   | 2018                 | 2017
Cost Data:                                                   |        |                      |
Repairs and maintenance costs                                | $120.4 | $108.0               | $99.1
Cash Flow Data:                                              |        |                      |
Noncash investing and financing activities:                  |        |                      |
Noncash purchases of property, plant, equipment and software | $16.1  | $16.5                | $13.7
Cash paid (received) during the year for:                    |        |                      |
Interest payments, net                                       | $27.6  | $29.5                | $27.7
Income tax payments (refunds), net                           | $27.5  | $33.7                | $(33.3) |


| _id | d1b3c1404 |
| title |  |
| text | 15 Financial risk management (continued)
(b) Credit risk
Credit risk arises from cash and cash equivalents, and trade and other receivables.
(ii) Trade and other receivables
Customer credit risk is managed subject to the Group’s established policy, procedures and control relating to customer credit risk management. Credit evaluations are performed on all customers. Outstanding customer receivables are monitored regularly.

The Group aims to minimise concentration of credit risk by undertaking transactions with a large number of customers. In addition, receivable balances are monitored on an ongoing basis with the intention that the Group’s exposure to bad debts is minimised.
Revenues from data centre services of $61.2 million were derived from two customers (2018: $44.4 million from one customer) whose revenue comprised more than 37% (2018: 29%) of total data centre services revenue.

The maximum exposure to credit risk at the end of the reporting period is the carrying value of each class of the financial assets mentioned above and each class of receivable disclosed in Note 5. The Group does not require collateral in respect of financial assets.

The Group applies the simplified approach to providing for expected credit losses prescribed by AASB 9, which permits the use of the lifetime expected loss provision for all trade receivables. The loss allowance provision as at 30 June 2019 is determined as follows; the expected credit losses below also incorporate forward looking information.

 |
| table | 30 June 2019             | Current | 0 to 30 days past due | 31 to 60 days past due | More than 60 days past due | Total
------------------------ | ------- | --------------------- | ---------------------- | -------------------------- | ------
                         | $'000   | $'000                 | $'000                  | $'000                      | $'000
Expected loss rate       | 1%      | 5%                    | 7.5%                   | 20%                        | -
Gross carrying amount    | 23,762  | 2,068                 | 787                    | 1,703                      | 28,320
Loss allowance provision | 238     | 103                   | 59                     | 341                        | 741
Net receivables          | 23,524  | 1,965                 | 728                    | 1,362                      | 27,579 |


| _id | d1b35e1e2 |
| title |  |
| text | Section 6: Our investments
This section outlines our group structure and includes information about our controlled and associated entities. It provides details of changes to these investments and their effect on our financial position and performance during the financial year. It also includes the results of our associated entities.
6.1 Parent entity disclosures

6.1 Parent entity disclosures
The accounting policies of the parent entity, iSelect Limited, which have been applied in determining the financial information shown below, are the same as those applied in the consolidated financial statements except for accounting for investments in subsidiaries which are measured at cost.

There are no contractual or contingent liabilities of the parent as at reporting date (2018: $nil). iSelect Limited has issued bank guarantees and letters of credit to third parties for various operational purposes. It is not expected these guarantees will be called on.

 |
| table | | CONSOLIDATE |
--------------------------------------------- | ----------- | ----------
                                              | 2019 $’000  | 2018 $’000
Financial Position                            |             |
Assets                                        |             |
Current Assets                                | 4,297       | 7,869
Non-Current Assets                            | 165,165     | 174,810
Total Assets                                  | 169,462     | 182,679
Liabilities                                   |             |
Current Liabilities                           | 92,352      | 93,067
Total Liabilities                             | 92,352      | 93,067
Net Assets                                    | 77,110      | 89,612
Equity                                        |             |
Contributed Equity                            | 111,290     | 111,066
Reserves                                      | 3,960       | 3,198
Accumulated Losses                            | (38,140)    | (24,652)
Total Equity                                  | 77,110      | 89,612
Financial Performance                         |             |
Loss of the parent entity                     | (4,812)     | (163)
Total comprehensive loss of the parent entity | (4,812)     | (163) |


| _id | d1b2e7a06 |
| title |  |
| text | 7. Property, Plant and Equipment and Leases
Property, plant and equipment at April 30, 2019 and 2018, consisted of the following (in thousands):
Depreciation and amortization expense for the years ended April 30, 2019 and 2018 was $2,802,000 and $2,484,000, respectively.
Maintenance and repairs charged to operations for the years ended April 30, 2019 and 2018 was approximately $309,000 and $466,000, respectively.

The Company leases its Long Island, New York headquarters building. On July 25, 2018, the Company signed an amendment to the lease which extends the current lease terms ten years and eight months through September 30, 2029. Pursuant to the amendment to the lease agreement, the annual rent will increase from $1,046,810 in 2019 to $1,276,056 in 2029. Under the terms of the lease, the Company is required to pay its proportionate share of real estate taxes, insurance and other charges.

In addition, the Company’s subsidiaries in New Jersey and California lease their office and manufacturing facilities. On February 1, 2018, FEI-Elcom entered into a new lease agreement in New Jersey for office and manufacturing space encompassing approximately 9,000 square feet. The monthly rent is $9,673 through the end of the lease which expires in January 31, 2021. FEI-Zyfer has signed a second amendment to its lease in California, which extends the lease an additional 88 months, beginning October 1,

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. FEI-Zyfer leases office and manufacturing space encompassing 27,850 square feet.

Rent expense under operating leases for the years ended April 30, 2019 and 2018 was approximately $1.2 million and $1.7 million, respectively. The Company records rent expense on its New York building and FEI-Zyfer facility on the straight-line method over the lives of the respective leases. As a result, as of April 30, 2019 and 2018, the Company’s Consolidated Balance Sheet included deferred rent payable of approximately $236,000 and $110,000, respectively, which will be recognized over the respective

which will be recognized over the respective rental periods.

 |
| table | | 2019      | 2018
----------------------------------- | --------- | --------
Buildings and building improvements | $2,692    | $2,790
Machinery, equipment and furniture  | 57,157    | 57,503
                                    | 59,849    | 60,293
Less, accumulated depreciation      | (46,811 ) | (46,166)
                                    | $13,038   | $ 14,127 |


| _id | d1b3734e8 |
| title |  |
| text | Valuation of Goodwill
Goodwill balances by reporting unit are as follows:

Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill is not amortized but is subject to an impairment test at a reporting unit level on an annual basis and when circumstances indicate that an impairment is more-likely-than-not. Such circumstances that might indicate an impairment is more-likely-than-not include a significant adverse change in the business climate for one of our reporting units or a decision to dispose of a

our reporting units or a decision to dispose of a reporting unit or a significant portion of a reporting unit. The test for goodwill impairment is a two-step process. The first step of the test is performed by comparing the fair value of each reporting unit to its carrying amount, including recorded goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step is performed to measure the amount of the impairment, if any, by comparing the implied fair value of goodwill to its

the implied fair value of goodwill to its carrying amount. Any resulting impairment would be recorded in the current period.

Determining the fair value of a reporting unit for purposes of the goodwill impairment test or for changes in our operating structure is judgmental in nature and involves the use of estimates and assumptions. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and also the magnitude of any such charge. Estimates of fair value are primarily determined using discounted cash flows and market multiples from publicly traded comparable companies.

from publicly traded comparable companies. These approaches use significant estimates and assumptions including projected future cash flows, discount rate reflecting the inherent risk in future cash flows, perpetual growth rate and determination of appropriate market comparables.

We evaluate our reporting units when changes in our operating structure occur, and if necessary, reassign goodwill using a relative fair value allocation approach. As described in Note 18 to our Consolidated Financial Statements in Item 8 of this Form 10-K, beginning on October 1, 2017, we concluded that CMS became a separate operating segment. In conjunction with the changes to reporting units, we reassigned goodwill between CGD and CMS based on their relative fair values as of October 1, 2017. We

relative fair values as of October 1, 2017. We estimated the fair value of CGD and CMS at October 1, 2017 based upon market multiples from publicly traded comparable companies in addition to discounted cash flows models for CMS and for a combination of CGD and CMS based on discrete financial forecasts developed by management for planning purposes. Cash flows beyond the discrete forecasts were estimated based on projected growth rates and financial ratios, influenced by an analysis of historical ratios and

by an analysis of historical ratios and by calculating a terminal value at the end of the discrete financial forecasts. For the October 1, 2017 valuations, future cash flows were discounted to present value using a discount rate of 13% for our CMS reporting unit and 11% for the combination of our CGD and CMS reporting units.

For the first step of our fiscal 2019 annual impairment test, we estimated the fair value of CTS based upon market multiples from publicly traded comparable companies and for CGD and CMS, we estimated the fair value based upon a combination of market multiples from publicly traded comparable companies and discounted cash flow models. The discounted cash flows were based on discrete three-year financial forecasts developed by management for planning purposes. Cash flows beyond the discrete forecasts were

Cash flows beyond the discrete forecasts were estimated based on projected growth rates and financial ratios, influenced by an analysis of historical ratios and by calculating a terminal value at the end of the three-year forecasts. The future cash flows were discounted to present value using a discount rate of 15% for CGD and 12.5% for CMS. The results of our 2019 annual impairment test indicated that the estimated fair value for our CTS and CGD reporting units exceeded their carrying amounts by over

units exceeded their carrying amounts by over 100%, while the estimated fair value of our CMS reporting unit exceeded its carrying amount by over 60%.

Unforeseen negative changes in future business or other market conditions for any of our reporting units including margin compression or loss of business, could cause recorded goodwill to be impaired in the future. Also, changes in estimates and assumptions we make in conducting our goodwill assessment could affect the estimated fair value of our reporting units and could result in a goodwill impairment charge in a future period.

 |
| table | September 30,                | 2019     | 2018          | 2017
---------------------------- | -------- | ------------- | --------
                             |          | (in millions) |
Cubic Transportation Systems | $  254.6 | $  49.8       | $  50.9
Cubic Mission Solutions      | 181.4    | 138.1         | —
Cubic Global Defense         | 142.1    | 145.7         | 270.7
Total goodwill               | $  578.1 | $  333.6      | $  321.6 |


| _id | d1b36fb72 |
| title |  |
| text | Other Income (Expense), Net
Other expense, net decreased by $31 thousand in 2019 compared to 2018 as a result of the recognition of a $1.4 million loss on extinguishment related to the partial repurchase of our 2022 Notes and a $1.1 million increase in interest expense related to our convertible senior notes, offset by an increase of $2.7 million of interest income earned on our investment as a result of proceeds invested from our convertible note and common stock offerings.

 |
| table | | Year Ended December 31, |                        | Change |
------------------ | ----------------------- | ---------------------- | ------ | ------
                   | 2019                    | 2018                   | $      | %
                   |                         | (dollars in thousands) |        |
Other expense, net | $ 4,597                 | $ 4,628                | $ (31) | (0.7)%
% of revenue       | 2%                      | 3%                     |        | |


| _id | d1b3aa1a0 |
| title |  |
| text | F. INVENTORIES
Inventories, net consisted of the following at December 31, 2019 and 2018:
Inventory reserves for the years ended December 31, 2019 and 2018 were $103.6 million and $100.8 million, respectively.

 |
| table | | 2019           | 2018
--------------- | -------------- | --------
                | (in thousands) |
Raw material    | $118,595       | $89,365
Work-in-process | 32,695         | 31,014
Finished goods  | 45,401         | 33,162
                | $196,691       | $153,541 |


| _id | d1b376cb0 |
| title |  |
| text | NOTE 14. INCOME (LOSS) PER SHARE (EPS)
Basic EPS is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. Our outstanding convertible preferred stocks are considered participating securities as the holders may participate in undistributed earnings with holders of common shares and are not obligated to share in our net losses.

Diluted EPS is computed by dividing the net income attributable to RiceBran Technologies common shareholders by the weighted average number of common shares outstanding during the period increased by the number of additional common shares that would have been outstanding if the impact of assumed exercises and conversions is dilutive. The dilutive effects of outstanding options, warrants, nonvested shares and restricted stock units that vest solely on the basis of a service condition are calculated using

basis of a service condition are calculated using the treasury stock method. The dilutive effects of the outstanding preferred stock are calculated using the if-converted method.

Below are reconciliations of the numerators and denominators in the EPS computations, and information on potentially dilutive securities.
The impacts of potentially dilutive securities outstanding at December 31, 2019 and 2018, were not included in the calculation of diluted EPS in 2019 and 2018 because to do so would be anti-dilutive. Those securities listed in the table above which were anti-dilutive in 2019 and 2018, which remain outstanding, could potentially dilute EPS in the future.

 |
| table | Year Ended December 31                                                                                |            |
------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------- | ----------
                                                                                | 2019       | 2018
NUMERATOR: Basic and diluted - loss from continuing operations (in thousands)                                                                                | $ (13,735) | $ (8,101)
DENOMINATOR: Basic and diluted - weighted average number of common shares outstanding (in thousands)                                                                     | 32,359,316 | 22,099,149
Number of shares of common stock which could be purchased with weighted average outstanding securities not included in diluted EPS because effect would be antidilutive: |            |
Stock options                                                                                | 1,024,811  | 911,264
Warrants                                                                                | 8,443,547  | 16,383,944
Convertible preferred stock                                                                                | 224,848    | 581,680
Restricted stock units                                                                                | 1,235,287  | 623,603
Weighted average number of nonvested shares of common stock not included in diluted EPS because effect would be antidilutive                                             | 659,581    | 1,169,986 |


| _id | d1b3c2bce |
| title |  |
| text | Stock-based compensation
The Company recognized $2.3 million, $2.1 million and $1.9 million of stock-based compensation expense for the years ended March 31, 2019, 2018 and 2017, respectively, as follows:
Stock-based compensation expense in the years ended March 31, 2019, 2018 and 2017 included $211,000, $207,000 and $150,000, respectively, related to the Company’s Employee Stock Purchase Plan.

 |
| table | |        | Year Ended March 31,  |
----------------------------------- | ------ | --------------------- | ------
                                    | 2019   | 2018                  | 2017
                                    |        | (In thousands)        |
Cost of revenues                    | $234   | $259                  | $282
Research and development            | 1,310  | 1,141                 | 980
Selling, general and administrative | 722    | 670                   | 615
Total                               | $2,266 | $2,070                | $1,877 |


| _id | d1b3b46be |
| title |  |
| text | Principal Activities
The principal activities during the financial year within the Group were health, life and car insurance policy sales, mortgage brokerage, energy, broadband and financial referral services. There have been no significant changes in the nature of these activities during the year.
Review of results and operations1
Summary of financial results

1 Throughout this report, certain non-IFRS information, such as EBITDA, EBIT, Net Profit after Tax (NPAT), Earnings Per Share (EPS), Conversion Ratio, Leads and Revenue Per Sale (RPS) are used. Earnings before interest and income tax expense (EBIT) reflects profit for the year prior to including the effect of net finance costs and income taxes. Earnings before interest, income tax expense, depreciation and amortisation and loss on associate (EBITDA) reflects profits for the year prior to including the

profits for the year prior to including the effect of net finance costs, income taxes, depreciation and amortisation and loss on associate. The individual components of EBITDA and EBIT are included as line items in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. Non-IFRS information is not audited. Reference to underlying results excludes the financial impacts of iMoney performance, impairment losses and write-offs from discontinued assets and operations, and material one-off

assets and operations, and material one-off transactions resulting from operations which are no longer core to the business.

2 Refer to the Reported versus Underlying Results reconciliation on page 112. The reconciliation forms part of the Review of Results and Operations
3 Restated due to retrospective adoption of new Accounting Standards.

 |
| table | | 2019  $’000 | 2018 $’000 RESTATED3 | CHANGE
---------------------------------------------------- | ----------- | -------------------- | ------
Continuing Operations                                |             |                      |
Operating revenue                                    | 154,159     | 176,931              | (13%)
Gross profit                                         | 52,963      | 45,139               | 17%
EBITDA                                               | 7,202       | 10,878               | (34%)
EBIT                                                 | (1,040)     | 1,405                | (174%)
NPAT                                                 | (2,003)     | 1,089                | (284%)
Reported Results (including discontinued operations) |             |                      |
Operating revenue                                    | 154,585     | 178,139              | (13%)
Gross profit                                         | 53,225      | 45,944               | 16
EBITDA                                               | 6,062       | (5,700)              | 206
EBIT                                                 | (2,252)     | (15,278)             | 85
NPAT                                                 | (4,360)     | (15,640)             | 72
EPS (cents)                                          | (1.7)       | (7.0)                | 76
Underlying Results                                   |             |                      |
Underlying EBITDA2                                   | 22,866      | 15,739               | 45
Underlying EBIT2                                     | 15,151      | 8,537                | 77
Underlying NPAT2                                     | 11,062      | 6,732                | 64
Underlying EPS2                                      | 5.1         | 3.1                  | 65 |


| _id | d1b3975be |
| 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)
14. Other Payables and Accruals
An analysis of other payables and accruals is as follows:
The unearned revenue represents charter hires received in advance in December 2019 relating to the hire period of January 2020 for 22 vessels (December 2018: 17 vessels).

 |
| table | | As of December 31, |
----------------- | ------------------ | -------
                  | 2018               | 2019
Unearned revenue  | 38,680             | 48,183
Accrued off-hire  | 7,376              | 6,968
Accrued purchases | 18,578             | 9,759
Accrued interest  | 38,107             | 36,746
Other accruals    | 24,709             | 34,586
Total             | 127,450            | 136,242 |


| _id | d1b343d6a |
| title |  |
| text | Note 3. Revenue from Contracts with Customers
Contract Assets

Our contract assets consist of capitalized commission costs and upfront payments made to customers. The current portion of capitalized commission costs and upfront payments made to customers are included in other current assets within our consolidated balance sheets. The non-current portion of capitalized commission costs and upfront payments made to customers are reflected in other assets within our consolidated balance sheets. Our amortization of contract assets during the years ended December 31, 2019

assets during the years ended December 31, 2019 and 2018 were $2.4 million and $2.0 million, respectively. There were no amortized commission costs during the year ended December 31, 2017.

We review the capitalized costs for impairment at least annually. Impairment exists if the carrying amount of the asset recognized from contract costs exceeds the remaining amount of consideration we expect to receive in exchange for providing the goods and services to which such asset relates, less the costs that relate directly to providing those good and services and that have not been recognized as an expense. We did not record an impairment loss on our contract assets during the years ended December

contract assets during the years ended December 31, 2019, 2018 and 2017.

The changes in our contract assets are as follows (in thousands):

 |
| table | | Year Ended December 31, |
------------------------------------------------------------------------- | ----------------------- | -------
                                                                          | 2019                    | 2018
Beginning of period balance                                               | $2,881                  | $—
Commission costs and upfront payments to a customer capitalized in period | 4,141                   | 4,864
Amortization of contract assets                                           | (2,444)                 | (1,983)
End of period balance                                                     | $4,578                  | $2,881 |


| _id | d1b3c1cba |
| title |  |
| text | 2. CONCENTRATIONS OF CREDIT RISK

The Company’s principal financial instrument subject to potential concentration of credit risk is accounts receivable, which is unsecured. The Company provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of accounts receivable. The Company has adopted credit policies and standards intended to accommodate industry growth and inherent risk and it believes that credit risks are moderated by the financial stability of its major customers, conservative

stability of its major customers, conservative payment terms and the Company’s strict credit policies.

Revenue from significant customers, those representing 10% or more of revenue for the respective periods, are summarized as follows:
The Company provided its products to Apple through sales to multiple contract manufacturers.
These customers primarily purchase RF and Wi-Fi solutions for cellular base stations and a variety of mobile devices, including smartphones, wearables, laptops, tablets and cellular-based applications for the IoT.

Accounts receivable related to these customers (which includes multiple contract manufacturers) accounted for 49%, 26%, and 40% of the Company’s total net accounts receivable balance as of March 30, 2019, March 31, 2018 and April 1, 2017, respectively.

On May 16, 2019, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce placed Huawei and 68 of its non-U.S. affiliates on the “entity list” under Export Administration Regulations (EAR), which had the effect of prohibiting all future sales by the Company of any product to Huawei or its affiliates, absent obtaining a license from BIS. While BIS has broad authority to issue licenses, the rulemaking imposes a presumption that licenses will be denied.

Although Huawei is not prohibited from paying (and the Company is not restricted from collecting) accounts receivable for products sold to Huawei prior to the BIS action, the credit risks associated with these accounts may have increased as a result of this development. As of the date of this report, the Company is unable to predict the scope or duration of the new EAR restrictions on Huawei or the impact to the Company’s business or future results of operations.

 |
| table | |      | Fiscal Year |
---------------------------------------- | ---- | ----------- | ----
                                         | 2019 | 2018        | 2017
Apple Inc. (“Apple”)                     | 32%  | 36%         | 34%
Huawei Technologies Co., Ltd. (“Huawei”) | 13%  | 8%          | 11% |


| _id | d1b3be84e |
| title |  |
| text | Other Income (Expense)
Interest Income
Interest income represents interest earned on our cash, cash equivalents, and investments.
Interest income increased by $16.9 million in fiscal year 2019. The increase in our interest income is associated with the increase in invested funds, primarily as a result of proceeds of approximately $600 million related to the common stock and convertible note offering in March 2018 and, to a lesser extent, higher yields on those invested funds.
Interest Expense

Interest Expense
Interest expense includes both stated interest and the amortization of debt discount and issuance costs associated with the $400.0 million aggregate principal amount of our Convertible Senior Notes that were issued in March 2018. Accordingly, interest expense in fiscal year 2019 is higher than fiscal year 2018 as the notes were only outstanding for part of fiscal year 2018.

Interest expense increased $10.9 million in fiscal year 2019, compared to the same period a year ago. Interest expense for fiscal year 2019 consists of noncash interest expense of $12.2 million related to the amortization of debt discount and issuance costs and stated interest of $5.0 million.
Other Income (Expense), Net

Other income (expense), net consists primarily of foreign exchange gains and losses resulting from fluctuations in foreign exchange rates on monetary asset and monetary liability balances that are denominated in currencies other than the functional currency of the entity in which they are recorded. We currently have entities with a functional currency of the Argentine Peso, Australian Dollar, Brazilian Real, British Pound, Canadian Dollar, Euro, Japanese Yen, Malaysian Ringgit, and Polish Zloty.

We realized a net currency exchange loss of $1.9 million in fiscal year 2019 as compared to a net currency exchange gain of $0.5 million in fiscal year 2018 as a result of exchange rate movements on foreign currency denominated accounts against the US Dollar.

 |
| table | | Fiscal years ended July 31, |                                    |          |
--------------------------- | --------------------------- | ---------------------------------- | -------- | -----
                            | 2019                        | 2018                               | Change   |
                            | Amount                      | Amount                             | ($)      | (%)
                            |                             | (In thousands, except percentages) |          |
Interest income             | $30,182                     | $13,281                            | 16,901   | 127
Interest expense            | $(17,334)                   | $(6,442)                           | (10,892) | 169
Other income (expense), net | $(1,867)                    | $509                               | (2,376)  | (467) |


| _id | d1b30d954 |
| title |  |
| text | Operating assets and liabilities
5 Trade and other receivables
(a) Trade receivables
(i) Classification as trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 30 - 60 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows

objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.

(ii) Fair values of trade and other receivables
Due to the short-term nature of the trade and other receivables, their carrying amount is considered to be the same as their fair value.
(iii) Impairment and risk exposure
Information about the Group's impairment policies, calculation of loss allowance and exposure to credit risk, foreign currency risk and interest rate risk can be found in note 15.
(b) Interest receivable

(b) Interest receivable
Interest receivable relates to interest accrued on term deposits. Credit risk of this is assessed in the same manner as cash and cash equivalents which is detailed in note 15.

 |
| table | |      | 30 June 2019 | 30 June 2018
------------------------------- | ---- | ------------ | ------------
                                | Note | $'000        | $'000
Trade receivables               | 5(a) | 28,320       | 36,522
Loss allowance (see note 15(b)) |      | (741)        | (1,254)
                                |      | 27,579       | 35,268
Interest receivable             | 5(b) | 54           | 27
GST receivable                  |      | 6,222        | 162
Other receivables               |      | 1            | 1,629
Total                           |      | 33,856       | 37,086 |


| _id | d1b2fd590 |
| title |  |
| text | NOTE 10 – COMMON STOCK PURCHASE WARRANTS
Our warrant activity during the years ended December 31, 2019 and 2018 is shown below (in thousands except price data):

In connection with the issuance of the $10.0 million secured promissory notes in December 2013, we issued common stock purchase warrants (“warrants”) exercisable for 60 thousand shares of our common stock having an exercise price of $2.52 per share (after giving effect to our one-for-five reverse stock split) with an expiration date in December 2020. These warrants contain a cashless exercise feature (See Note 7).

As part of our July 2017 private placement transaction with Mr. Schutte, we issued warrants to purchase 1,782,531 shares of our common stock. The warrants are immediately exercisable at a price of $0.528 per share and expire five years after issuance (See Note 8). We have assigned a relative fair value of $495 thousand to the warrants out of the total $4.0 million proceeds from the private placement transaction and have accounted for these warrants as equity.

On June 28, 2019 as part of the changes made to the loan agreements we had with Mr. Schutte, each having an original due date of January 2, 2020, we issued to him a warrant to purchase 10.0 million shares of our common stock exercisable at a price of $0.01 per share and expire five years after issuance. We obtained a valuation of fair value on the warrant and $1.145 million was allocated to the warrant and accounted for as equity. (see Note 7 and Note 8). The warrant was assigned and transferred by Mr.

The warrant was assigned and transferred by Mr. Schutte to AD Pharma on June 28, 2019.

 |
| table | |        |          | December 31, |
-------------------- | ------ | -------- | ------------ | --------
                     |        | 2019     |              | 2018
                     |        | WAvg     |              | WAvg
                     |        | Exercise |              | Exercise
                     | Number | Price    | Number       | Price
Outstanding, Jan. 1  | 1,842  | $0.59    | 1,842        | $0.59
Issued               | 10,000 | 0.01     | -            | -
Exercised            | -      | -        | -            | -
Expired              | -      | -        | -            | -
Modification         | -      | -        | -            | -
Outstanding, Dec. 31 | 11,842 | 0.10     | 1,842        | $0.59 |


| _id | d1b397ece |
| title |  |
| text | ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
The final fair values of the assets acquired and liabilities assumed from our acquisitions in 2018 are as follows:

 |
| table | | Trek    | Electrostatic Product Line | LumaSense | Total
--------------------------------------- | ------- | -------------------------- | --------- | --------
Accounts and other receivable, net      | $ 2,818 | $  77                      | $  7,167  | $ 10,062
Inventories                             | 3,941   | 292                        | 9,372     | 13,605
Property and equipment                  | 594     | 50                         | 1,353     | 1,997
Goodwill                                | —       | 1,220                      | 36,258    | 37,478
Intangible assets                       | 788     | 1,400                      | 43,240    | 45,428
Deferred income tax assets              | 606     | —                          | 6,331     | 6,937
Other assets                            | 854     | —                          | 6,004     | 6,858
Total assets acquired                   | 9,601   | 3,039                      | 109,725   | 122,365
Accounts payable                        | 747     | 39                         | 5,734     | 6,520
Deferred income tax liabilities         | —       | —                          | 11,699    | 11,699
Other liabilities                       | 2,782   | —                          | 7,608     | 10,390
Total liabilities assumed               | 3,529   | 39                         | 25,041    | 28,609
Total fair value of net assets acquired | $ 6,072 | $  3,000                   | $  84,684 | $ 93,756 |


| _id | d1b333fe6 |
| title |  |
| text | 1998 Employee Qualified Stock Purchase Plan (“ESPP”)
Under Autodesk’s ESPP, which was approved by stockholders in 1998, eligible employees may purchase shares of Autodesk’s common stock at their discretion using up to 15% of their eligible compensation, subject to certain limitations, at 85% of the lower of Autodesk's closing price (fair market value) on the offering date or the exercise date. The offering period for ESPP awards consists of four, six-month exercise periods within a 24-month offering period.

At January 31, 2019, a total of 8.1 million shares were available for future issuance. Under the ESPP, the Company issues shares on the first trading day following March 31 and September 30 of each fiscal year. The ESPP does not have an expiration date.
A summary of the ESPP activity for the fiscal years ended January 31, 2019, 2018 and 2017 is as follows:

Autodesk recorded $27.2 million, $25.7 million, and $25.9 million of compensation expense associated with the ESPP in fiscal 2019, 2018, and 2017, respectively.

 |
| table | |        | Fiscal year ended January 31, |
----------------------------------------------------------------------- | ------ | ----------------------------- | ------
                                                                        | 2019   | 2018                          | 2017
Issued shares                                                           | 1.0    | 2.0                           | 2.3
Average price of issued shares                                          | $90.25 | $39.03                        | $36.99
Weighted average grant date fair value of awards granted under the ESPP | $42.75 | $32.41                        | $19.20 |


| _id | d1b362666 |
| title |  |
| text | Deferred income taxes reflect the net tax effects of temporary differences between the amounts of assets and liabilities for accounting purposes and the amounts used for income tax purposes. The components of the net deferred tax assets (liabilities) are as follows (amounts in millions):

As of December 31, 2019, we had gross tax credit carryforwards of $191 million for state purposes. The tax credit carryforwards are included in Deferred tax assets net of unrealized tax benefits that would apply upon the realization of uncertain tax positions. In addition, we had foreign NOL carryforwards of $32 million at December 31, 2019, attributed mainly to losses in France which can be carried forward indefinitely.

We evaluate deferred tax assets each period for recoverability. We record a valuation allowance for assets that do not meet the threshold of “more likely than not” to be realized in the future. To make that determination, we evaluate the likelihood of realization based on the weight of all positive and negative evidence available. As a result of the Closing Agreement, we received in 2018, we determined at that time that our remaining California research and development credit carryforwards (“CA R&D

and development credit carryforwards (“CA R&D Credit”) no longer met the threshold of more likely than not to be realized in the future. As such, consistent with our position at December 31, 2018, we have established a full valuation allowance against our CA R&D Credit. For the year ended December 31, 2019, the valuation allowance related to our CA R&D Credit is $71 million. We will reassess this determination quarterly and record a tax benefit if and when future evidence allows for a partial or full

when future evidence allows for a partial or full release of this valuation allowance.

As of December 31, 2017, we no longer consider the available cash balances related to undistributed earnings held outside of the U.S. by our foreign subsidiaries to be indefinitely reinvested.

 |
| table | ,                                                | As of December 31, |
------------------------------------------------ | ------------------ | -----
                                                 | 2019               | 2018
Deferred tax assets:                             |                    |
Allowance for sales returns and price protection | $19                | $25
Accrued expenses                                 | 28                 | 26
Deferred revenue                                 | 119                | 136
Tax attributes carryforwards                     | 93                 | 81
Share-based compensation                         | 54                 | 69
Intangibles                                      | 1,289              | 43
U.S. deferred taxes on foreign earnings          | —                  | 318
Capitalized software development expenses        | 67                 | —
Other                                            | 109                | 28
Deferred tax assets                              | 1,778              | 726
Valuation allowance                              | (181)              | (61)
Deferred tax assets, net of valuation allowance  | 1,597              | 665
Deferred tax liabilities:                        |                    |
Intangibles                                      | (142)              | (140)
Capitalized software development expenses        | —                  | (57)
U.S. deferred taxes on foreign earnings          | (594)              | —
Other                                            | (73)               | (26)
Deferred tax liabilities                         | (809)              | (223)
Net deferred tax assets                          | $788               | $442 |


| _id | d1b3bb6f8 |
| title |  |
| text | Greenhouse gas emissions
Spirent is committed to acting to combat climate change and reporting its progress. Our total Scope 1 and 2 emissions dropped by 6.14 per cent from 2018, and our emissions per $ million of revenue were down by 10.9 per cent. We have reduced our total emissions by 29 per cent since our 2014 baseline.

The Group responded to the Carbon Disclosure Project in 2019, completing the Climate Change and Supply Chain questionnaires. In 2019 we achieved a Climate Change rating of B (management) (2018 C) and a Supplier Engagement rating of B (management) (2018 B). The average for our sector is C in both categories.

 |
| table | | 2019           | 2018
-------------------------------------------------------------------- | -------------- | --------------
                                                                     | Tonnes of CO2e | Tonnes of CO2e
Emissions from:                                                      |                |
Combustion of fuel and operation of facilities (Scope 1)             | 144.7          | 137.2
Electricity, heat, steam and cooling purchased for own use (Scope 2) | 4,641.0        | 4,950.4
Total emissions                                                      | 4,785.7        | 5,087.6
Emissions intensity metrics:                                         |                |
Normalised per FTE employee                                          | 3.46           | 3.57
Normalised per square metre of gross internal area of our facilities | 0.114          | 0.125
Normalised per $ million of revenues                                 | 9.50           | 10.67 |


| _id | d1b360cc6 |
| title |  |
| text | Cash, Cash Equivalents and Restricted Cash
As of December 31, 2019, the Company had $259.1 million of cash and cash equivalents. Cash and cash equivalents include liquid investments, primarily money market funds, with maturities of less than 90 days at the time of purchase. Management determines the appropriate classification of its investments at the time of purchase and at each balance sheet date.

As of December 31, 2019 and December 31, 2018, the Company had restricted cash of $0.3 million, representing the amount pledged as collateral to the issuer of a standby letter of credit (the “LC”). The LC, which expires in August 2021, has been provided as a guaranty to the lessor of our corporate offices.
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the consolidated statement of cash flows (in thousands):

 |
| table | | December 31, |
------------------------------------------------------------------------------- | ------------ | --------
                                                                                | 2019         | 2018
Cash and cash equivalents                                                       | $259,067     | $256,947
Restricted cash included in other assets                                        | 304          | 304
Cash, cash equivalents and restricted cash shown in the statement of cash flows | $259,371     | $257,251 |


| _id | d1b3a042a |
| title |  |
| text | KEMET CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
A summary of the expenses aggregated on the Consolidated Statements of Operations line item “Restructuring charges” in the fiscal years ended March 31, 2019, 2018 and 2017, is as follows (amounts in thousands):
Fiscal Year Ended March 31, 2019

The Company incurred $8.8 million in restructuring charges in the fiscal year ended March 31, 2019, including $2.8 million in personnel reduction costs and $6.0 million in relocation and exit costs. The personnel reduction costs of $2.8 million were primarily due to $0.9 million in costs related to headcount reductions in the TOKIN legacy group across various internal and operational functions, $0.3 million in severance charges related to personnel reductions in the Film and Electrolytic reportable segment

in the Film and Electrolytic reportable segment resulting from a reorganization of the segment's management structure, and $1.6 million in costs related to reorganization in the Solid Capacitors reportable segment due to a permanent structural change driven by a decline of MnO2 products. The relocation and exit costs of $6.0 million were primarily due to $3.4 million in costs related to the Company's relocation of its tantalum powder equipment from Carson City, Nevada to its plant in Matamoros, Mexico and

Nevada to its plant in Matamoros, Mexico and $2.3 million in costs related to the relocation of axial electrolytic production equipment from Granna, Sweden to its plant in Evora, Portugal.

Fiscal Year Ended March 31, 2018

The Company incurred $14.8 million in restructuring charges in the fiscal year ended March 31, 2018, including $12.6 million related to personnel reduction costs and $2.3 million of relocation and exit costs. The personnel reduction costs of $12.6 million were due to $5.2 million related to a voluntary reduction in force in the Film and Electrolytic reportable segment's Italian operations; $4.4 million related to a headcount reduction in the TOKIN legacy group across various internal and operational

group across various internal and operational functions; $2.7 million in severance charges across various overhead functions in the Simpsonville, South Carolina office as these functions were relocated to the Company's new corporate headquarters in Fort Lauderdale, Florida; and $0.2 million in headcount reductions related to a European sales reorganization. The relocation and exit costs of $2.3 million included $0.9 million in lease termination penalties related to the relocation of global marketing,

related to the relocation of global marketing, finance and accounting, and information technology functions to the Company's Fort Lauderdale office, $0.8 million in expenses related to the relocation of the K-Salt operations to the existing Matamoros, Mexico plant, $0.4 million in exit costs related to the shut-down of operations for KFM, and $0.1 million related to the transfer of certain Tantalum production from Simpsonville, South Carolina to Victoria, Mexico.

Fiscal Year Ended March 31, 2017

The Company incurred $5.4 million in restructuring charges in the fiscal year ended March 31, 2017, including $2.2 million related to personnel reduction costs and $3.2 million of relocation and exit costs. The personnel reduction costs of $2.2 million corresponded with the following: $0.3 million related to the consolidation of certain Solid Capacitor manufacturing in Matamoros, Mexico; $0.4 million for headcount reductions related to the shut-down of operations for KFM; $0.3 million related to headcount

for KFM; $0.3 million related to headcount reductions in Europe (primarily Italy and Landsberg, Germany) corresponding with the relocation of certain production lines and laboratories to lower cost regions; $0.3 million for overhead reductions in Sweden; $0.3 million in U.S. headcount reductions related to the relocation of global marketing functions to the Company’s Fort Lauderdale, Florida office; $0.3 million in headcount reductions related to the transfer of certain Tantalum production from

the transfer of certain Tantalum production from Simpsonville, South Carolina to Victoria, Mexico; $0.2 million in overhead reductions for the relocation of research and development operations from Weymouth, England to Evora, Portugal; and $0.1 million in manufacturing headcount reductions related to the relocation of the K-Salt operations to the existing Matamoros, Mexico plant. The relocation and exit costs of $3.2 million included $1.9 million in expenses related to contract termination costs related to

related to contract termination costs related to the shut-down of operations for KFM; $0.6 million in expenses related to the relocation of the K-Salt operations to the existing Matamoros, Mexico plant; $0.6 million for transfers of Film and Electrolytic production lines and R&D functions to lower cost regions; and $0.1 million related to the transfer of certain Tantalum production from Simpsonville, South Carolina to Victoria, Mexico.

 |
| table | |        | Fiscal Years Ended March 31, |
------------------------- | ------ | ---------------------------- | ------
                          | 2019   | 2018                         | 2017
Personnel reduction costs | $2,823 | $12,587                      | $2,214
Relocation and exit costs | 5,956  | 2,256                        | 3,190
Restructuring charges     | $8,779 | $14,843                      | $5,404 |


| _id | d1b337c7c |
| title |  |
| text | Operating expenses
nm—not meaningful
Research and development expenses
Research and development expenses increased $19.6 million in the year ended March 31, 2019 compared to the year ended March 31, 2018, which was primarily attributable to increases in personnel-related costs of $11.8 million, share-based compensation expense of $3.6 million and information technology and facility costs of $1.6 million.

Research and development expenses for the year ended March 31, 2019 as compared to the year ended March 31, 2018 were positively impacted by approximately $0.5 million primarily as a result of the strengthening of the U.S. dollar relative to the British pound.

Personnel-related cost increased primarily as a result of salaries and benefits associated with increased headcount throughout the year, share-based compensation expense increased primarily as a result of share option grants since the prior year and information technology and facility costs increased primarily as a result of increased headcount.
Sales and marketing expenses

Sales and marketing expenses
Sales and marketing expenses increased $17.9 million in the year ended March 31, 2019 compared to the year ended March 31, 2018, which was primarily attributable to increases in information technology and facilities costs of $5.3 million, personnel-related costs of $4.0 million, share-based compensation expense of $3.4 million, professional services of $2.7 million, travel and other costs of $1.2 million and marketing costs of $1.1 million.

Sales and marketing expenses for the year ended March 31, 2019 as compared to the year ended March 31, 2018 were positively impacted by approximately $1.5 million primarily as a result of the strengthening of the U.S. dollar relative to the Australian dollar, South African rand and British pound. Information technology and facilities costs and travel and other costs increased primarily as a result of increased headcount.

Personnel-related costs increased primarily as a result of salaries and benefits associated with increased headcount and commissions, partially offset by the impact of adopting ASC 606, which resulted in capitalizing $13.8 million of commissions that would have been expensed under the prior accounting rules. Share-based compensation expense increased primarily as a result of share option grants since the prior year. Professional services costs increased primarily due to increased consulting fees.

General and administrative expenses

General and administrative expenses increased $16.8 million in the year ended March 31, 2019 compared to the year ended March 31, 2018, which was primarily attributable to increases in personnel-related costs of $6.3 million, share-based compensation expense of $5.8 million, information technology and facilities costs of $1.9 million, professional services costs of $1.2 million and litigation-related expenses of $1.0 million. Personnel-related costs increased primarily as a result of salaries and benefits

primarily as a result of salaries and benefits associated with increased headcount.

Share-based compensation expense increased primarily as a result of share option grants since the prior year and to a lesser extent the impact of share option modifications. Information technology and facility costs increased primarily as a result of increased headcount. Professional services costs increased primarily due to acquisition-related expenses.
Restructuring and Impairment of long-lived assets

In the second quarter of fiscal 2019, we recorded a revision to restructuring expense of $0.2 million related to the exit of our Watertown, Massachusetts corporate office space. In the fourth quarter of fiscal 2018, upon the exit of our Watertown, Massachusetts corporate office space, we recorded a restructuring charge of $0.8 million for the remaining non-cancelable rent and estimated operating expenses for the vacated premises, net of sublease rentals and we recorded a non-cash impairment charge of $1.7

we recorded a non-cash impairment charge of $1.7 million primarily related to leasehold improvements.

 |
| table | | Year ended March 31, |          | Period-to-period change |
----------------------------------- | -------------------- | -------- | ----------------------- | --------
                                    | 2019                 | 2018     | Amount                  | % Change
                                    |                      |          | (dollars in thousands)  |
Operating expenses:                 |                      |          |                         |
Research and development            | $57,939              | $38,373  | $19,566                 | 51%
Sales and marketing                 | 139,194              | 121,246  | 17,948                  | 15%
General and administrative          | 53,759               | 36,989   | 16,770                  | 45%
Impairment of long-lived assets     | —                    | 1,712    | (1,712)                 | nm
Restructuring                       | (170)                | 832      | (1,002)                 | nm
Total operating expenses            | $250,722             | $199,152 | $51,570                 | 26% |


| _id | d1b399044 |
| title |  |
| text | Cash flows
The following table summarizes our cash flow activities in fiscal 2019 compared to fiscal 2018.
Our cash flow activities in fiscal 2018 compared to fiscal 2017 were discussed under Liquidity, Capital Resources and Cash Requirement in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended March 30, 2018.

 |
| table | | Fiscal Year |
------------------------------------------------ | ----------- | --------
(In millions)                                    | 2019        | 2018
Net cash provided by (used in):                  |             |
Operating activities                             | $1,495      | $957
Investing activities                             | $(241)      | $(21)
Financing activities                             | $(1,209)    | $(3,475)
Increase (decrease) in cash and cash equivalents | $17         | $(2,473) |