| _id | d1b30fa1a |
| title |  |
| text | 28. Contingent liabilities and legal proceedings
Contingent liabilities are potential future cash outflows, where the likelihood of payment is considered more than remote, but is not considered probable or cannot be measured reliably.
Notes: 1 Performance bonds require the Group to make payments to third parties in the event that the Group does not perform what is expected of it under the terms of any related contracts or commercial arrangements

2 Other guarantees principally comprise Vodafone Group Plc’s guarantee of the Group’s 50% share of an AUD1.7 billion loan facility and a US$3.5 billion loan facility of its joint venture, Vodafone Hutchison Australia Pty Limited. The Group’s share of these loan balances is included in the net investment in joint venture (see note 12 “Investments in associates and joint arrangements”).

 |
| table | | 2019  | 2018
-------------------------------------------- | ----- | -----
                                             | €m    | €m
Performance bonds1                           | 337   | 993
Other guarantees and contingent liabilities2 | 2,943 | 4,036 |


| _id | d1b30d274 |
| title |  |
| text | In the Communications Solutions segment, operating income decreased $79 million in fiscal 2019 as compared to fiscal 2018. The Communications Solutions segment’s operating income included the following:
Excluding these items, operating income decreased in fiscal 2019 due primarily to lower volume.

 |
| table | |       | Fiscal
------------------------------------ | ----- | -------------
                                     | 2019  | 2018
                                     |       | (in millions)
Restructuring and other charges, net | $  48 | $  13
Other items                          | 1     | —
Total                                | $  49 | $  13 |


| _id | d1b37b0da |
| title |  |
| text | Pro Forma Results
The following table summarizes, on a pro forma basis, the combined results of operations of the Company and TOKIN as though the acquisition and the Sale of EMD had occurred as of April 1, 2016. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the acquisition occurred as of April 1, 2016, or of future consolidated operating results (amounts in thousands, except per share data):

(1) The net income for the fiscal year ended March 31, 2018 excludes the following: 34% of the gain on sale of the EMD business of $75.2 million, the gain related to the fair value of KEMET’s previous 34% interest in TOKIN of $68.7 million, and the bargain gain on the acquisition of TOKIN of $62.2 million.

(2) The net income for the fiscal year ended March 31, 2017 includes the following: 34% of the gain on sale of the EMD business of $123.4 million (which includes the release of a valuation allowance that was recorded in the fourth quarter of fiscal year 2017 and the use of the deferred tax asset which was recorded in the first quarter of fiscal year 2018), the gain related to the fair value of KEMET’s previous 34% interest in TOKIN of $66.7 million, and the bargain gain on the acquisition of TOKIN of $60.3

bargain gain on the acquisition of TOKIN of $60.3 million.

(3) Fiscal years ended March 31, 2018 and 2017 adjusted due to the adoption of ASC 606.

 |
| table | | Fiscal Years Ended March 31, |
------------------------------------------------------------------------------------ | ---------------------------- | ----------
                                                                                | 2018 (1)                     | 2017 (2)
Pro forma revenues (3)                                                               | $1,217,655                   | $1,060,777
Pro forma net income from continuing operations available to common stockholders (3) | 51,975                       | 226,086
Pro forma earnings per common share - basic (3)                                      | 0.98                         | 4.86
Pro forma earnings per common share - diluted (3)                                    | 0.89                         | 4.08
Pro forma common shares - basic                                                      | 52,798                       | 46,552
Pro forma common shares - diluted                                                    | 58,640                       | 55,389 |


| _id | d1b3640ce |
| title |  |
| text | 3. Inventories
Inventories consist of the following (in thousands):

 |
| table | | August 31,2019 | August 31,2018
----------------------------------------- | -------------- | --------------
Raw materials                             | $2,310,081     | $2,070,569
Work in process                           | 468,217        | 788,742
Finished goods                            | 314,258        | 659,335
Reserve for excess and obsolete inventory | (69,553)       | (60,940)
Inventories, net                          | $3,023,003     | $3,457,706 |


| _id | d1b3c492e |
| title |  |
| text | Supplementary Financial Data (Unaudited)
(in millions, except per-share amounts)
(1) In the fourth quarter of fiscal 2019, we recorded an $872 million charge which was the reversal of the previously recorded benefit associated with the U.S. taxation of deemed foreign dividends recorded in fiscal 2018 as a result of a retroactive final U.S. Treasury regulation issued during the quarter.

 |
| table | Quarters Ended                              | July 27, 2019 (1) | April 27, 2019 | January 26, 2019 | October 27, 2018
------------------------------------------- | ----------------- | -------------- | ---------------- | ----------------
Revenue .                                   | $13,428           | $12,958        | $12,446          | $13,072
Gross margin                                | $8,574            | $8,173         | $7,773           | $8,146
Operating income                            | $3,690            | $3,513         | $3,211           | $3,805
Net income                                  | $2,206            | $3,044         | $2,822           | $3,549
Net income per share - basic                | $0.52             | $0.70          | $0.63            | $0.78
Net income per share - diluted              | $0.51             | $0.69          | $0.63            | $0.77
Cash dividends declared per common share .  | $0.35             | $0.35          | $0.33            | $0.33
Cash and cash equivalents and investments . | $33,413           | $34,643        | $40,383          | $42,593 |


| _id | d1b3a38e6 |
| title |  |
| text | 29. Contract balances
The following table provides information about receivables and contract liabilities from contracts with customers. The Group does not have any contract assets.
There was no revenue recognised in 2019, 2018 or 2017 from performance obligations satisfied in previous periods.
The timing of revenue recognition, invoicing and cash collections results in trade receivables, deferred income and advance customer payments received on account on the balance sheet.

The Group receives payments from customers based on a billing schedule, as established in the contract. Trade receivables are recognised when the right to consideration becomes unconditional. Contract liabilities are recognised as revenue as (or when) the Group performs under the contract.

The Group also recognises incremental costs incurred to obtain a contract as an asset if it expects to recover those costs. Such costs are presented in the balance sheet as assets recognised from costs to obtain a contract and disclosed in note 21.

 |
| table | |       | 2019      | 2018      | 2017
------------------------------------------------------------------------------------------------------------- | ----- | --------- | --------- | ---------
                                                                                | Notes | $ million | $ million | $ million
Trade receivables                                                                                | 20    | 128.7     | 123.4     | 113.8
Contract liabilities                                                                                |       |           |           |
Payments received on account                                                                                | 23    | 2.3       | 1.0       | 3.8
Deferred income                                                                                | 25    | 66.8      | 69.6      | 72.7
                                                                                |       | 69.1      | 70.6      | 76.5
Revenue recognised in the period from amounts included in contract liabilities at the beginning of the period |       | 56.2      | 65.5      | 62.1 |


| _id | d1b3a6d3e |
| title |  |
| text | NOTE 2 — EARNINGS PER SHARE
Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.
The components of basic and diluted EPS were as follows:

Anti-dilutive stock-based awards excluded from the calculations of diluted EPS were immaterial during the periods presented.

 |
| table | (In millions, except earnings per share)                |           |           |
------------------------------------------------------- | --------- | --------- | ---------
Year Ended June 30,                                     | 2019      | 2018      | 2017
Net income available for common shareholders (A)        | $  39,240 | $  16,571 | $  25,489
Weighted average outstanding shares of common stock (B) | 7,673     | 7,700     | 7,746
Dilutive effect of stock-based awards                   | 80        | 94        | 86
Common stock and common stock equivalents (C)           | 7,753     | 7,794     | 7,832
Earnings Per Share                                      |           |           |
Basic (A/B)                                             | $ 5.11    | $ 2.15    | $ 3.29
Diluted (A/C)                                           | $ 5.06    | $ 2.13    | $ 3.25 |


| _id | d1b3c7ed0 |
| title |  |
| text | (5) GOODWILL AND OTHER INTANGIBLE ASSETS
The carrying value of goodwill by segment was as follows:
Reclassifications and other during the year ended December 31, 2019 were due primarily to tax adjustments for acquisitions in 2019 and 2018. See Note 2 for information regarding acquisitions.

 |
| table | | Application Software | Network Software & Systems | Measurement & Analytical Solutions | Process Technologies | Total
---------------------------------------- | -------------------- | -------------------------- | ---------------------------------- | -------------------- | ------------
Balances at December 31, 2017            | $ 4,565.4            | $ 2,591.3                  | $ 1,345.4                          | $ 318.2              | $    8,820.3
Goodwill acquired                        | 684.4                | 33.1                       | —                                  | —                    | 717.5
Goodwill related to assets held for sale | —                    | —                          | (156.2)                            | —                    | (156.2)
Currency translation adjustments         | (17.0)               | (2.3)                      | (14.5)                             | (5.9)                | (39.7)
Reclassifications and other              | 3.3                  | 1.6                        | —                                  | —                    | 4.9
Balances at December 31, 2018            | $ 5,236.1            | $ 2,623.7                  | $ 1,174.7                          | $312.3               | $  9,346.8
Goodwill acquired                        | 143.4                | 1,303.6                    | —                                  | —                    | 1,447.0
Currency translation adjustments         | 8.3                  | 8.8                        | 3.3                                | 2.2                  | 22.6
Reclassifications and other              | 1.6                  | (2.6)                      | —                                  | —                    | (1.0)
Balances at December 31, 2019            | $ 5,389.4            | $ 3,933.5                  | $ 1,178.0                          | $ 314.5              | $ 10,815.4 |


| _id | d1b3bc7f6 |
| title |  |
| text | Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings or it becomes probable the forecasted transactions will not occur. The following is a summary of the gains (losses) related to cash flow hedges recognized during the years ended June 30, 2019, 2018 and 2017:

 |
| table | |       | Amount of Gain (Loss) Recognized in AOCI on Derivatives |
---------------------------------------------- | ----- | ------------------------------------------------------- | -----
                                               |       | Years Ended June 30,                                    |
($ in millions)                                | 2019  | 2018                                                    | 2017
Derivatives in Cash Flow Hedging Relationship: |       |                                                         |
Commodity contracts                            | $45.4 | $41.4                                                   | $9.4
Foreign exchange contracts                     | (0.9) | (0.4)                                                   | (0.1)
Total                                          | $44.5 | $41.0                                                   | $9.3 |


| _id | d1b372476 |
| title |  |
| text | Adjusted EBITDA is defined as Earnings before Interest Expense, Taxes, Depreciation and Amortization, adjusted to exclude the impact of Special Items. Management uses Adjusted EBITDA as one of many measures to assess the performance of the business. Additionally, Adjusted EBITDA is the performance metric used by the Company's chief operating decision maker to evaluate performance of our reportable segments. Adjusted EBITDA is also a metric used to determine performance in the Company's Annual Incentive

performance in the Company's Annual Incentive Plan. We do not believe there are estimates underlying the calculation of Adjusted EBITDA, other than those inherent in our U.S. GAAP results of operations, which would render the use and presentation of Adjusted EBITDA misleading. While the nature and amount of individual Special Items vary from period to period, we believe our calculation of Adjusted EBITDA is applied consistently to all periods and, in conjunction with other U.S. GAAP and non- U.S. GAAP

with other U.S. GAAP and non- U.S. GAAP measures, provides a useful and consistent comparison of our Company's performance to other periods. In our evaluation of Adjusted EBITDA, management assumes that gain/losses related to Special Items may not be reflective of our core operating results.

(1) Includes depreciation and amortization adjustments of $(0.8) million and $(2.4) million for the years ended December 31, 2019 and 2018, respectively.
(2) Other Special Items for the years ended December 31, 2019 and 2018, primarily included fees related to professional services, mainly legal fees, directly associated with Special Items or events that are considered one-time or infrequent in nature.

The Company may also assess performance using Adjusted EBITDA Margin. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by net trade sales. We believe that Adjusted EBITDA Margin is one useful measure to assess the profitability of sales made to third parties and the efficiency of our core operations.
The following table shows a reconciliation of U.S. GAAP Net Earnings from continuing operations to non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations:

 |
| table | |         | Year Ended December 31, |
---------------------------------------------------------------------- | ------- | ----------------------- | -------
(In millions)                                                          | 2019    | 2018                    | 2017
Net earnings from continuing operations                                | $ 293.7 | $ 150.3                 | $ 62.8
Interest expense, net                                                  | 184.1   | 177.9                   | 184.2
Income tax provision                                                   | 76.6    | 307.5                   | 330.5
Depreciation and amortization, net of adjustments(1)                   | 184.5   | 159.0                   | 158.3
Special Items:                                                         |         |                         |
Restructuring charges                                                  | 41.9    | 47.8                    | 12.1
Other restructuring associated costs                                   | 60.3    | 15.8                    | 14.3
Foreign currency exchange loss due to highly inflationary economies    | 4.6     | 2.5                     | —
Loss on debt redemption and refinancing activities                     | 16.1    | 1.9                     | —
Charges related to acquisition and divestiture activity                | 14.9    | 34.2                    | 84.1
Charges related to the Novipax settlement agreement                    | 59.0    | —                       | —
Gain from class-action litigation settlement                           | —       | (14.9)                  | —
Curtailment related to retained Diversey retirement plans              | —       | —                       | (13.5)
Other Special Items(2)                                                 | 29.1    | 7.5                     | 0.5
Pre-tax impact of Special Items                                        | 225.9   | 94.8                    | 97.5
Non-U.S. GAAP Total Company Adjusted EBITDA from continuing operations | $ 964.8 | $ 889.5                 | $ 833.3 |


| _id | d1b361590 |
| title |  |
| text | Management makes allowance for expected credit loss based on the simplified approach to provide for expected credit losses, which permits the use of the lifetime expected loss provision for all trade receivables. Expected credit loss for receivables overdue more than 180 days is 25%-100%, depending on category. Expected credit loss for receivables overdue more than one year is 100%.
Movements in provisions for impairment of freight receivables during the year are as follows:

Allowance for expected credit loss of freight receivables have been recognized in the income statement under "Port expenses, bunkers and commissions".
Allowance for expected credit loss of freight receivables is calculated using an ageing factor as well as a specific customer knowledge and is based on a provision matrix on days past due.

 |
| table | USDm                                | 2019 | 2018 | 2017
----------------------------------- | ---- | ---- | ----
Allowance for expected credit loss  |      |      |
Balance as of 1 January             | 1.7  | 1.3  | 2.6
Adjustment to prior years           | 1.5  | -    | -
Provisions for the year             | 2.4  | 1.7  | 0.6
Provisions reversed during the year | -1.9 | -1.0 | -1.9
Provisions utilized during the year | -    | -0.3 | -
Balance as of 31 December           | 3.7  | 1.7  | 1.3 |


| _id | d1b34a6a6 |
| title |  |
| text | Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the difference between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of

more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

At December 31, 2019, the Company had net operating loss carry-forwards of approximately $21.6 million that may be offset against future taxable income indefinitely. No tax benefit has been reported in the 2019 financial statements, since the potential tax benefit is offset by a valuation allowance of the same amount.
Net deferred tax assets consist of the following components as of December 31, 2019 and 2018:

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry-forwards for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry-forwards may be limited as to use in future years.

 |
| table | | 2019    | 2018
---------------------------------- | ------- | -------
Deferred tax assets (liabilities): |         |
NOL carryover                      | $5,910  | $3,370
R&D carryover                      | 173     | 173
Other                              | 236     | 239
Depreciation                       | 42      | 61
                                   | 6,361   | 3,843
Less valuation allowance           | (6,361) | (3,843)
Net deferred tax asset             | $-      | $- |


| _id | d1b2e5f26 |
| title |  |
| text | Other Current Assets
The following table presents details of other current assets in our consolidated balance sheets:

 |
| table | | As of December 31,    |
--------------------------------- | --------------------- | ----
                                  | 2019                  | 2018
                                  | (Dollars in millions) |
Prepaid expenses                  | $274                  | 307
Income tax receivable             | 35                    | 82
Materials, supplies and inventory | 105                   | 120
Contract assets                   | 42                    | 52
Contract acquisition costs        | 178                   | 167
Contract fulfillment costs        | 115                   | 82
Other                             | 59                    | 108
Total other current assets        | $808                  | 918 |


| _id | d1a71aebc |
| title |  |
| text | 13. CONTRIBUTED EQUITY
Capital raise On 4 September 2018, the Group undertook a fully underwritten $175.4m equity raising. This resulted in the issue of 105,677,937 new stapled securities (2018: $59.5m equity raising resulting in the issue of 39,712,882 stapled securities).

On 25 June 2019, the Group announced a fully underwritten $170m equity raising. On 28 June 2019, the Group received proceeds for this raising. This has been recognised as a contract for future issue of equity under AASB 132 and has been recognised as contributed equity within the statement of financial position. This resulted in the issue of 99,415,205 new stapled securities on 1 July 2019. These securities are not reflected in the securities on issue above as they were issued subsequent to the year end.

On 25 June 2019, the Group also announced a non-underwritten security purchase plan. This completed on 30 July 2019, raising $13.5m and resulted in the issue of 7,917,735 new stapled securities.

Distribution reinvestment plan During the year, 9,143,772 (2018: 6,480,246) stapled securities were issued to securityholders participating in the Group’s Distribution Reinvestment Plan for consideration of $16.2m (2018: $9.6m). The stapled securities were issued at the volume weighted average market price of the Group's stapled securities over a period of ten trading days, less a 2% discount.

 |
| table | | 2019        | 2018
------------------------------------- | ----------- | -----------
                                      | $'000       | $'000
Issued and paid up capital            | 83,692      | 66,128
Contract for future issue of equity   | 16,451      | -
Total contributed equity              | 100,143     | 66,128
Number of stapled securities on Issue | 2019        | 2018
Opening balance at 1 July             | 559,107,042 | 512,913,914
Institutional and retail placement    | 105,677,937 | 39,712,882
Distribution reinvestment plan        | 9,143,772   | 6,480,246
Closing balance at 30 June            | 673,928,751 | 559,107,042 |


| _id | d1b3238b2 |
| title |  |
| text | ACQUISITIONS OF PROPERTY, PLANT AND EQUIPMENT
The acquisitions of property, plant and equipment as well as the capital intensity per operating segment are as follows:
(1) Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy. For further details, please consult the "Accounting policies" section. (2) Fiscal 2019 actuals are translated at the average foreign exchange rate of the comparable period of fiscal 2018 which was 1.3100 USD/CDN.

Fiscal 2019 fourth-quarter acquisitions of property, plant and equipment decreased by 10.6% (11.2% in constant currency) mainly due to lower capital expenditures in the Canadian and American broadband services segments. Fiscal 2019 fourth-quarter capital intensity reached 24.9% compared to 28.7% for the same period of the prior year mainly as a result of lower capital capital expenditures combined with higher revenue.

 |
| table | Three months ended August 31,                 | 2019    | 2018    | Change | Change in constant currency(2)
--------------------------------------------- | ------- | ------- | ------ | ------------------------------
(in thousands of dollars, except percentages) | $       | $       | %      | %
Canadian broadband services                   | 79,132  | 89,405  | (11.5) | (11.7)
Capital intensity                             | 24.7%   | 28.0%   |        |
American broadband services                   | 65,967  | 72,914  | (9.5)  | (10.5)
Capital intensity                             | 25.0%   | 29.6%   |        |
Consolidated                                  | 145,099 | 162,319 | (10.6) | (11.2)
Capital intensity                             | 24.9%   | 28.7%   |        | |


| _id | d1b2ffdae |
| title |  |
| text | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition.
The amount recorded for developed technology represents the estimated fair value of Trello’s project management and organization technology. The amount recorded for customer relationships represents the fair values of the underlying relationship with Trello customers.

 |
| table | | Fair Value            | Useful Life
----------------------------------------------- | --------------------- | -----------
                                                | (U.S. $ in thousands) | (years)
Developed technology                            | $50,600               | 3
Customer relationships                          | 56,900                | 2
Trade names                                     | 19,900                | 3
Total intangible assets subject to amortization | $127,400              | |


| _id | d1b39d180 |
| title |  |
| text | During the three months ended June 30, 2018, the Company adopted ASU 2016-18-Statement of Cash Flows: Restricted Cash. This standard requires that the statement of cash flows explain the change during the period in total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and

when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard has been applied using a retrospective transition method to each period presented. The adoption of this standard did not have a material impact on the Company's financial statements.

The following table summarizes the opening balance sheet adjustments related to the adoption of the New Revenue Standard, ASU 2016-01-Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, and ASU 2016-16-Intra-Entity Transfers of Assets Other Than Inventory (in millions):

 |
| table | | Balance as of  |          | Adjustments from |             | Balance as of
-------------------------------------------- | -------------- | -------- | ---------------- | ----------- | -------------
                                             | March 31, 2018 | ASC 606  | ASU 2016-01      | ASU 2016-16 | April 1, 2018
ASSETS                                       |                |          |                  |             |
Accounts receivable, net                     | $563.7         | $340.1   | $—               | $—          | $903.8
Inventories                                  | $476.2         | $(5.1)   | $—               | $—          | $471.1
Other current assets                         | $119.8         | $17.2    | $—               | $—          | $137.0
Long-term deferred tax assets                | $100.2         | $(23.1)  | $—               | $1,579.4    | $1,656.5
Other assets                                 | $71.8          | $—       | $—               | $(24.1)     | $47.7
LIABILITIES                                  |                |          |                  |             |
Accrued liabilities                          | $229.6         | $404.2   | $—               | $—          | $633.8
Deferred income on shipments to distributors | $333.8         | $(333.8) | $—               | $—          | $—
Long-term deferred tax liability             | $205.8         | $16.8    | $—               | $(1.1)      | $221.5
Other long-term liabilities                  | $240.9         | $—       | $—               | $(1.7)      | $239.2
STOCKHOLDERS' EQUITY                         |                |          |                  |             |
Accumulated other comprehensive loss         | $(17.6)        | $—       | $(1.7)           | $—          | $(19.3)
Retained earnings                            | $1,397.3       | $241.9   | $1.7             | $1,558.1    | $3,199.0 |


| _id | d1b3c6f44 |
| title |  |
| text | GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
The following table presents activities associated with our loan receivable sales and servicing activities during the periods indicated.

 |
| table | |         | Year Ended December 31, |
-------------------------------------------------- | ------- | ----------------------- | -------
                                                   | 2019    | 2018                    | 2017
Gain (loss) on sold loan receivables held for sale | $—      | $—                      | $(500)
Cash Flows                                         |         |                         |
Sales of loans                                     | $91,946 | $139,026                | $72,071
Servicing fees                                     | 3,901   | 2,321                   | 2,821 |


| _id | d1b3b12e8 |
| title |  |
| text | Cash flow measures and capital additions
In presenting and discussing our reported results, free cash flow (pre-spectrum), free cash flow, capital additions and operating free cash flow are calculated and presented even though these measures are not recognised within IFRS. We believe that it is both useful and necessary to communicate free cash flow to investors and other interested parties, for the following reasons:

Free cash flow (pre-spectrum) and free cash flow allows us and external parties to evaluate our liquidity and the cash generated by our operations. Free cash flow (pre-spectrum) and capital additions do not include payments for licences and spectrum included within intangible assets, items determined independently of the ongoing business, such as the level of dividends, and items which are deemed discretionary, such as cash flows relating to acquisitions and disposals or financing activities. In addition,

disposals or financing activities. In addition, it does not necessarily reflect the amounts which we have an obligation to incur. However, it does reflect the cash available for such discretionary activities, to strengthen the consolidated statement of financial position or to provide returns to shareholders in the form of dividends or share purchases;

– Free cash flow facilitates comparability of results with other companies, although our measure of free cash flow may not be directly comparable to similarly titled measures used by other companies;
– These measures are used by management for planning, reporting and incentive purposes; and
These measures are useful in connection with discussion with the investment analyst community and debt rating agencies.

A reconciliation of cash generated by operations, the closest equivalent GAAP measure, to operating free cash flow and free cash flow, is provided below.

 |
| table | | 2019    | 2018    | 2017
-------------------------------------------------------------- | ------- | ------- | -------
                                                               | €m      | €m      | €m
Cash generated by operations (refer to note 18)                | 14,182  | 13,860  | 13,781
Capital additions                                              | (7,227) | (7,321) | (7,675)
Working capital movement in respect of capital additions       | (89)    | 171     | (822)
Disposal of property, plant and equipment                      | 45      | 41      | 43
Restructuring payments                                         | 195     | 250     | 266
Other                                                          | (35)    | –       | 34
Operating free cash flow                                       | 7,071   | 7,001   | 5,627
Taxation                                                       | (1,040) | (1,010) | (761)
Dividends received from associates and investments             | 498     | 489     | 433
Dividends paid to non-controlling shareholders in subsidiaries | (584)   | (310)   | (413)
Interest received and paid                                     | (502)   | (753)   | (830)
Free cash flow (pre-spectrum)                                  | 5,443   | 5,417   | 4,056
Licence and spectrum payments                                  | (837)   | (1,123) | (474)
Restructuring payments                                         | (195)   | (250)   | (266)
Free cash flow                                                 | 4,411   | 4,044   | 3,316 |


| _id | d1b38346a |
| title |  |
| text | Net finance cost was £47.2m for the year; a decrease of £1.2m on 2017/18. Net regular interest in the year was £40.5m, a decrease of £3.9m compared to the prior year. Consistent with recent years, the largest component of finance costs in the year was interest due to holders of the Group’s senior secured notes, which was £31.7m.

The interest on the senior secured notes was £0.5m lower compared to the prior year following the re-financing of the June 2021 £325m fixed rate notes at a coupon of 6.5% to the October 2023 £300m fixed rate notes to the slightly lower coupon of 6.25%. Bank debt interest of £5.1m was £2.1m lower in the year due to lower levels of average debt and a lower margin on the revolving credit facility following the refinancing completed in May 2018. Amortisation of debt issuance costs was £3.7m, £1.3m lower than

debt issuance costs was £3.7m, £1.3m lower than the prior year due to lower transaction costs associated with the issue of the £300m 6.25% Fixed rate notes compared with the retired £325m 6.5% Fixed rate notes.

Write-off of financing costs and early redemption fees of £11.3m include a £5.7m fee related to the write-off of transaction costs associated with the senior secured fixed rate notes due March 2021, which were repaid during the year, and a £5.6m redemption fee associated with the early call of the March 2021 bond.

In the prior year, a £0.4m discount unwind credit relating to long-term property provisions held by the Group due to an increase in gilt yields was reflected in reported Net finance cost. In 2018/19, a discount unwind charge of £3.0m was included in the Net finance cost of £47.2m. Other interest income of £7.6m in the year relates to monies received from the Group’s associate Hovis Holdings Limited ('Hovis') and reflects the reversal of a previous impairment.

 |
| table | £m                                                          | 2018/19 | 2017/18 | Change
----------------------------------------------------------- | ------- | ------- | ------
Senior secured notes interest                               | 31.7    | 32.2    | 0.5
Bank debt interest                                          | 5.1     | 7.2     | 2.1
                                                            | 36.8    | 39.4    | 2.6
Amortisation of debt issuance costs                         | 3.7     | 5.0     | 1.3
Net regular interest5                                       | 40.5    | 44.4    | 3.9
Fair value movements on interest rate financial instruments | –       | (0.4)   | (0.4)
Write-off of financing costs and early redemption fees      | 11.3    | 4.0     | (7.3)
Discount unwind                                             | 3.0     | (0.4)   | (3.4)
Other finance income                                        | (7.6)   | –       | 7.6
Other interest cost                                         | –       | 0.8     | 0.8
Net finance cost                                            | 47.2    | 48.4    | 1.2 |


| _id | d1b359e3a |
| title |  |
| text | 10. Debt
A summary of debt is shown below:
Revolving Credit Facility/Term Loan

On September 12, 2018, the Company entered into five-year Amended and Restated Credit Agreement (“Credit Agreement”) with Bank of America, N.A., as Administrative Agent, and Wells Fargo Bank, N.A. The Credit Agreement amends and restates the credit agreement, dated November 18, 2016, among the Company, Bank of America, N.A. and Wells Fargo Bank, N.A. The Credit Agreement consists of a senior unsecured revolving credit facility (“Revolving Credit Facility”) of $200.0 million and a senior unsecured term loan

$200.0 million and a senior unsecured term loan (“Term Loan”) of $250.0 million. In addition, the Company has an option to increase the size of the Revolving Credit Facility and Term Loan by up to an additional $200.0 million. The Credit Agreement is guaranteed by the Company’s wholly-owned U.S. subsidiaries. For the Term Loan, the Company is required to make quarterly principal payments of 1.25% of the original Term Loan ($3.1 million) through maturity, with the remaining balance due on September 12,

with the remaining balance due on September 12, 2023.

Outstanding borrowings under the Credit Agreement bear interest at variable rates based on the type of borrowing and the Company’s debt to EBITDA financial ratio, as defined. The interest rate on outstanding borrowings under the Credit Agreement was 3.98% at April 27, 2019. The Credit Agreement contains customary representations and warranties, financial covenants, restrictive covenants and events of default. As of April 27, 2019, the Company was in compliance with all the covenants in the Credit

compliance with all the covenants in the Credit Agreement. The fair value of borrowings under the Credit Agreement approximates book value because the interest rate is variable.

Subsidiary Credit Facility

The Company’s subsidiary, Pacific Insight, is a party to a credit agreement with the Bank of Montreal which provides a credit facility in the maximum principal amount of C$10.0 million, with an option to increase the principal amount by up to an additional C$5.0 million. Availability under the facility is based on a percentage of eligible accounts receivable and finished goods inventory balances. Interest is calculated at a base rate plus margin, as defined. In addition, Pacific Insight was a party to a

In addition, Pacific Insight was a party to a credit agreement with Roynat which was terminated during the second quarter of fiscal 2019. Total repayments under the credit agreement with Roynat were $3.8 million in fiscal 2019, including a prepayment fee of $0.1 million.

Other Debt
The Company’s subsidiary, Procoplast, has debt that consists of eighteen notes with maturities ranging from 2019 to 2031. The weighted-average interest rate was approximately 1.5% at April 27, 2019 and $3.2 million of the debt was classified as short-term. The fair value of other debt was $16.3 million at April 27, 2019 and was based on Level 2 inputs on a nonrecurring basis.
Unamortized Debt Issuance Costs

Unamortized Debt Issuance Costs
The Company paid debt issuance costs of $3.1 million on September 12, 2018 in connection with the Credit Agreement. The debt issuance costs are being amortized over the five-year term of the Credit Agreement.

 |
| table | (Dollars in Millions)           | April 27, 2019 | April 28, 2018
------------------------------- | -------------- | --------------
Revolving Credit Facility       | $35.0          | $30.0
Term Loan                       | 243.7          | —
Subsidiary Credit Facility      | —              | 3.6
Other Debt                      | 16.8           | 24.2
Unamortized Debt Issuance Costs | (2.9)          | —
Total Debt                      | 292.6          | 57.8
Less: Current Maturities        | (15.7)         | (4.4)
Total Long-term Debt            | $276.9         | $53.4 |


| _id | d1b2ed74e |
| title |  |
| text | During the fourth and third quarters of 2019 and the fourth quarter of 2018, we recorded an income tax expense of $62 million, $28 million and $28 million, respectively, reflecting (i) in the third quarter of 2019 the estimated annual effective tax rate in each of our jurisdictions, applied to the consolidated results before taxes in the third quarter of 2019 and (ii) in both fourth quarters the actual tax charges and benefits in each jurisdiction as well as the true-up of tax provisions based upon the most

the true-up of tax provisions based upon the most updated visibility on open tax matters in several jurisdictions. and (ii) in both fourth quarters the actual tax charges and benefits in each jurisdiction as well as the true-up of tax provisions based upon the most updated visibility on open tax matters in several jurisdictions. and (ii) in both fourth quarters the actual tax charges and benefits in each jurisdiction as well as the true-up of tax provisions based upon the most updated visibility on open

based upon the most updated visibility on open tax matters in several jurisdictions.

Income tax expense

 |
| table | |                   | Three Months Ended       |
------------------ | ----------------- | ------------------------ | -----------------
                   | December 31, 2019 | September 29, 2019       | December 31, 2018
                   |                   | (Unaudited, in millions) |
Income tax expense | $(62)             | $(28)                    | $(28) |


| _id | d1b3425f0 |
| title |  |
| text | AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in millions, unless otherwise disclosed)
The Company expects the unrecognized tax benefits to change over the next 12 months if certain tax matters ultimately settle with the applicable taxing jurisdiction during this timeframe, or if the applicable statute of limitations lapses. The impact of the amount of such changes to previously recorded uncertain tax positions could range from zero to $53.0 million.

A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows:
During the years ended December 31, 2019, 2018 and 2017, the statute of limitations on certain unrecognized tax benefits lapsed and certain positions were effectively settled, which resulted in a decrease of $2.5 million, $9.3 million and $0.4 million, respectively, in the liability for uncertain tax benefits.

The Company recorded penalties and tax-related interest expense to the tax provision of $10.3 million, $8.0 million and $5.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. In addition, due to the expiration of the statute of limitations in certain jurisdictions and certain positions that were effectively settled, the Company reduced its liability for penalties and income tax-related interest expense related to uncertain tax positions during the years ended December 31, 2019,

during the years ended December 31, 2019, 2018 and 2017 by $2.7 million, $16.2 million and $0.6 million, respectively.

As of December 31, 2019 and 2018, the total amount of accrued income tax-related interest and penalties included in the consolidated balance sheets were $26.6 million and $19.1 million, respectively.

The Company has filed for prior taxable years, and for its taxable year ended December 31, 2019 will file, numerous consolidated and separate income tax returns, including U.S. federal and state tax returns and foreign tax returns. The Company is subject to examination in the U.S. and various state and foreign jurisdictions for certain tax years. As a result of the Company’s ability to carryforward federal, state and foreign NOLs, the applicable tax years generally remain open to examination several years

remain open to examination several years after the applicable loss carryforwards have been used or have expired. The Company regularly assesses the likelihood of additional assessments in each of the tax jurisdictions resulting from these examinations. The Company believes that adequate provisions have been made for income taxes for all periods through December 31, 2019.

 |
| table | |        | Year Ended December 31, |
------------------------------------------------------------ | ------ | ----------------------- | ------
                                                             | 2019   | 2018                    | 2017
Balance at January 1                                         | $107.7 | $116.7                  | $107.6
Additions based on tax positions related to the current year | 33.3   | 8.1                     | 7.6
Additions and reductions for tax positions of prior years    | 37.5   | 0.3                     | —
Foreign currency                                             | (1.6)  | (8.1)                   | 1.9
Reduction as a result of the lapse of statute of limitations | (1.3)  | (2.6)                   | (0.4)
Reduction as a result of effective settlements               | —      | (6.7)                   | —
Balance at December 31                                       | $175.6 | $107.7                  | $116.7 |


| _id | d1b2e9ab8 |
| title |  |
| text | NOTE 14. PROVISION FOR WARRANTY
The changes in the amount of provision for warranty are as follows:

Costs of warranty include the cost of labor and materials to repair a product during the warranty period. The main term of the warranty period is one year. The Company accrues for the estimated cost of the warranty on its products shipped in the provision for warranty, upon recognition of the sale of the product. The costs are estimated based on actual historical expenses incurred and on estimated future expenses related to current sales, and are updated periodically. Actual warranty costs are charged

periodically. Actual warranty costs are charged against the provision for warranty.

 |
| table | | December 31, |
----------------------------------- | ------------ | --------
                                    | 2018         | 2019
Balance January 1                   | 6,562        | 7,955
Charged to cost of sales            | 18,408       | 26,301
Deductions                          | (8,985)      | (12,232)
Releases of expired warranty        | (8,214)      | (5,684)
Foreign currency translation effect | 184          | 84
Balance December 31                 | 7,955        | 16,424 |


| _id | d1a723f4e |
| title |  |
| text | 5. CASH FLOW ANALYSIS
(1) Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections.
(2) For further details on the Corporation's cash flow attributable to discontinued operations, please consult the "Discontinued operations" section.

Fiscal 2019 cash flow from operating activities increased by 39.9% compared to the prior year mainly from: • higher adjusted EBITDA; • the decreases in income taxes paid and in financial expense paid; and • the decrease in integration, restructuring and acquisitions costs.
Fiscal 2019 investing activities decreased by 78.5% compared to the prior year mainly due to the MetroCast acquisition of $1.76 billion in the second quarter of fiscal 2018.

 |
| table | Years ended August 31,                                                                         | 2019      | 2018 (1)    | Change
---------------------------------------------------------------------------------------------- | --------- | ----------- | ------
(in thousands of dollars, except percentages)                                                  | $         | $           | %
Cash flow from operating activities                                                            | 868,711   | 620,748     | 39.9
Cash flow from investing activities                                                            | (471,078) | (2,191,666) | (78.5)
Cash flow from financing activities                                                            | (659,222) | 1,426,136   | —
Effect of exchange rate changes on cash and cash equivalents denominated in a foreign currency | (439)     | 1,989       | —
Net change in cash and cash equivalents from continuing operations                             | (262,028) | (142,793)   | 83.5
Net change in cash and cash equivalent from discontinued operations(2)                         | 733,807   | 16,333      | —
Cash and cash equivalents, beginning of the year                                               | 84,725    | 211,185     | (59.9)
Cash and cash equivalents, end of the year                                                     | 556,504   | 84,725      | — |


| _id | d1b32baee |
| title |  |
| text | Net revenue: Net revenue from our Energy segment for the year ended December 31, 2019 increased $18.3 million to $39.0 million from $20.7 million for the year ended December 31, 2018. The increase was primarily driven by the AFTC related to the 2018 and 2019 CNG sales that was recognized in the fourth quarter of 2019, inclusive of prior period AFTC at the acquired ampCNG stations which was also recognized in 2019. The increase was also driven by higher volume-related revenues from the recent acquisition of

revenues from the recent acquisition of the ampCNG stations and growth in CNG sales volumes.

Cost of revenue: Cost of revenue from our Energy segment for the year ended December 31, 2019 increased $5.9 million to $17.1 million from $11.2 million for the year ended December 31, 2018. The increase was due to overall growth in volumes of gasoline gallons delivered and higher commodity and utility costs driven by the acquisition of ampCNG stations.

Selling, general and administrative: Selling, general and administrative expenses from our Energy segment for the year ended December 31, 2019 increased $0.9 million to $4.9 million from $4.0 million for the year ended December 31, 2018. The increase was driven by an increase in salaries and benefits largely due to the of the acquisition of ampCNG stations, which were acquired late in the second quarter of 2019, partially offset by a one-time expense in the prior year related to the abandonment of a

in the prior year related to the abandonment of a station development project.

Depreciation and amortization from our Energy segment for the year ended December 31, 2019 increased $1.4 million to $6.9 million from $5.5 million for the year ended December 31, 2018. The increase was due to additional depreciation and amortization from the recent acquisition of ampCNG stations.
Other operating expense from our Energy segment was a loss of $0.5 million for the year ended December 31, 2018, driven by impairment of certain stations during the fourth quarter of 2018.

 |
| table | |       | Years Ended December 31, |
----------------------------------- | ----- | ------------------------ | ---------------------
                                    | 2019  | 2018                     | Increase / (Decrease)
Net revenue                         | $39.0 | $20.7                    | $18.3
Cost of revenue                     | 17.1  | 11.2                     | 5.9
Selling, general and administrative | 4.9   | 4.0                      | 0.9
Depreciation and amortization       | 6.9   | 5.5                      | 1.4
Other operating expense             | —     | 0.5                      | (0.5)
Income (loss) from operations       | 10.1  | $(0.5)                   | $10.6 |


| _id | d1b35b99c |
| title |  |
| text | The Company’s estimated future benefit payments as of December 31, 2019 are as follows:

The Company has certain defined contribution plans, which accrue benefits for employees on a pro-rata basis during their employment period based on their individual salaries. The Company’s accrued benefits related to defined contribution pension plans of $20 million as of December 31, 2019 and $18 million as of December 31, 2018. The annual cost of these plans amounted to approximately $86 million in 2019, $84 million in 2018 and $77 million in 2017.

 |
| table | Years             | Pension Benefits | Other Long Term Benefits
----------------- | ---------------- | ------------------------
2020              | 32               | 7
2021              | 29               | 7
2022              | 32               | 5
2023              | 41               | 6
2024              | 51               | 9
From 2025 to 2029 | 272              | 35 |


| _id | d1b37721e |
| title |  |
| text | Interest and Other Income (Expense)
Interest and other income (expense), net changed by $3.3 million from a net expense of $13.8 million in the year ended December 31, 2018 to a net expense of $10.4 million for the year ended December 31, 2019. The change in interest and other income (expense), net was primarily due to a decrease in interest expense pertaining to a lower average balance of debt outstanding under our term loan facility during the year.

 |
| table | | Year Ended December 31, |                        | % Change
---------------------------------------- | ----------------------- | ---------------------- | --------
                                         | 2019                    | 2018                   | 2019
                                         |                         | (dollars in thousands) |
Interest and other income (expense), net | $(10,427)               | $(13,755)              | (24)%
% of net revenue                         | (3)%                    | (4)%                   | |


| _id | d1b32bcd8 |
| title |  |
| text | Teradyne determined the stock options’ expected life based upon historical exercise data for executive officers, the age of the executive officers and the terms of the stock option grant. Volatility was determined using historical volatility for a period equal to the expected life. The risk-free interest rate was determined using the U.S. Treasury yield curve in effect at the time of grant. Dividend yield was based upon an estimated annual dividend amount of $0.36 per share divided by Teradyne’s stock price

$0.36 per share divided by Teradyne’s stock price on the grant date of $37.95 for the 2019 grants, $47.70 for the 2018 grants and $28.56 for the 2017 grants.

Stock compensation plan activity for the years 2019, 2018, and 2017, is as follows:

 |
| table | | 2019    | 2018           | 2017
------------------------------------------ | ------- | -------------- | -------
                                           |         | (in thousands) |
Restricted Stock Units:                    |         |                |
Non-vested at January 1                    | 2,454   | 3,174          | 3,778
Awarded                                    | 1,139   | 790            | 939
Vested                                     | (1,237) | (1,382)        | (1,434)
Forfeited                                  | (87)    | (128)          | (109)
Non-vested at December31                   | 2,269   | 2,454          | 3,174
Stock Options:                             |         |                |
Outstanding at January 1                   | 506     | 531            | 926
Granted                                    | 102     | 69             | 111
Exercised                                  | (280)   | (94)           | (501)
Forfeited                                  | (7)     | —              | —
Expired                                    | (2)     | —              | (5)
Outstanding at December 31                 | 319     | 506            | 531
Vested and expected to vest at December 31 | 319     | 506            | 531
Exercisable at December 31                 | 85      | 256            | 233 |


| _id | d1b306604 |
| title |  |
| text | Stock options
The following tables summarize our stock option activities and related information:
(1) The aggregate intrinsic value represents the excess of the closing price of our common stock of $6.87 as of December 31, 2019 over theexercise price of the outstanding in-the-money options.

 |
| table | | Number of Shares (thousands) | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (years) | Aggregate Intrinsic Value(1) (thousands)
---------------------------------------------- | ---------------------------- | ------------------------------- | --------------------------------------------------- | ----------------------------------------
Outstanding as of December 31, 2018            | 4,674                        | $5.19                           |                                                     |
Granted                                        | —                            | $ —                             |                                                     |
Exercised                                      | (842)                        | $2.84                           |                                                     |
Canceled                                       | (130)                        | $9.41                           |                                                     |
Outstanding as of December 31, 2019            | 3,702                        | $5.57                           | 3.52                                                | $6,395
Vested and exercisable as of December 31, 2019 | 3,427                        | $5.49                           | 3.56                                                | $6,210 |


| _id | d1b364d08 |
| title |  |
| text | The fair value of options granted in the respective fiscal years are estimated on the date of grant using the Black-Scholes optionpricing model, acceptable under ASC 718, with the following weighted average assumptions:

Expected volatilities are based on the Company’s historical common stock volatility, derived from historical stock price data for periods commensurate with the options’ expected life. The expected life of options granted represents the period of time options are expected to be outstanding, based primarily on historical employee option exercise behavior. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero coupon bonds issued with a term equal to the expected

bonds issued with a term equal to the expected life at the date of grant of the options. The expected dividend yield is zero, as the Company has historically paid no dividends and does not anticipate dividends to be paid in the future.

 |
| table | | Years Ended December 31, |
----------------------- | ------------------------ | -----
                        | 2018                     | 2017
Expected life (years)   | 5.6                      | 5.6
Risk-free interest rate | 2.7%                     | 1.9%
Expected volatility     | 26.4%                    | 29.4%
Expected dividend yield | —                        | — |


| _id | d1a735c44 |
| title |  |
| text | Issuer Purchases of Equity Securities
(a) During the fourth quarter of 2015, Lifeway publicly announced a share repurchase program. On November 1, 2017, the our Board of Directors amended the 2015 stock repurchase program (the “2017 amendment”), by adding to (i.e., exclusive of the shares previously authorized under the 2015 stock program repurchase) the authorization the lesser of $5,185 or 625 shares. The program has no expiration date.

 |
| table | Period                | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of a publicly announced program (a) | Approximate Dollar Value of Shares that may yet be Purchased under the Plans or Programs ($ in thousands)
--------------------- | -------------------------------- | ---------------------------- | ---------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------
1/1/2018 to 1/31/2018 | 106,441                          | $ 8.22                       | 106,441                                                                      | $ 5,007
2/1/2018 to 2/28/2018 | 24,486                           | $ 7.21                       | 24,486                                                                       | $ 4,830
4/1/2018 to 4/30/2018 | 15,433                           | $ 6.09                       | 15,433                                                                       | $ 4,736
6/1/2018 to 6/30/2018 | 4,143                            | $ 5.46                       | 4,143                                                                        | $ 4,714
8/1/2018 to 8/31/2018 | 1,332                            | $ 3.96                       | 1,332                                                                        | $ 4,709
9/1/2018 to 9/30/18   | 40,364                           | $ 3.35                       | 40,364                                                                       | $ 4,573
11/1/2018 to 11/30/18 | 17,228                           | $ 2.99                       | 17,228                                                                       | $ 4,522
12/1/2018 to 12/31/18 | 8,305                            | $ 2.25                       | 8,305                                                                        | $ 4,503
Fiscal Year 2018      | 217,732                          | $ 6.33                       | 217,732                                                                      | $ 4,503
1/1/2019 to 1/31/2019 | 46,743                           | $ 2.54                       | 46,743                                                                       | $ 4,384
2/1/2019 to 2/28/2019 | 9,100                            | $ 2.75                       | 9,100                                                                        | $ 4,358
3/1/2019 to 3/31/2019 | 26,932                           | $ 2.24                       | 26,932                                                                       | $ 4,298
4/1/2019 to 4/30/2019 | 4,300                            | $ 2.24                       | 4,300                                                                        | $ 4,288
5/1/2019 to 5/31/2019 | 57,817                           | $ 2.49                       | 57,817                                                                       | $ 4,145
6/1/2019 to 6/30/2019 | 11,146                           | $ 2.32                       | 11,146                                                                       | $ 4,119
8/1/2019 to 8/31/2019 | 37,567                           | $ 2.69                       | 37,567                                                                       | $ 4,018
9/1/2019 to 9/30/2019 | 17,531                           | $ 2.98                       | 17,531                                                                       | $ 3,965
Fiscal Year 2019      | 211,136                          | $ 2.55                       | 211,136                                                                      | $ 3,965 |


| _id | d1b36e088 |
| title |  |
| text | Other Expense, Net
Other expense, net decreased by $4.3 million in 2018 compared to 2017 as a result of an increase in interest expense of $5.7 million related to interest expense due under our convertible senior notes. This increase was offset by an increase of $1.4 million of interest income earned on our short-term investments.

 |
| table | | Year Ended December 31, |                        | Change  |
------------------ | ----------------------- | ---------------------- | ------- | -------
                   | 2018                    | 2017                   | $       | %
                   |                         | (dollars in thousands) |         |
Other expense, net | $ 4,628                 | $ 302                  | $ 4,326 | 1432.5%
% of revenue       | 3%                      | 0%                     |         | |


| _id | d1b37ca84 |
| title |  |
| text | Backlog

As reflected in the table above, total backlog decreased $663.5 million from September 30, 2018 to September 30, 2019. The decrease in backlog is primarily due to progression of work in 2019 on four large contracts awarded to CTS in fiscal 2018. In addition, we recorded a net decrease to backlog of $104.5 million on October 1, 2018 for the impact of the adoption of ASC 606. Changes in exchange rates between the prevailing currency in our foreign operations and the U.S. dollar as of September 30, 2019

and the U.S. dollar as of September 30, 2019 decreased backlog by $79.7 million compared to September 30, 2018.

 |
| table | | September 30,    | September 30,
---------------------------- | ---------------- | -----------------
                             | 2019             | 2018
                             |                  | (in millions)
Total backlog                |                  |
Cubic Transportation Systems | $  2,953.3       | $  3,544.9
Cubic Mission Solutions      | 103.7            | 77.0
Cubic Global Defense         | 344.0            | 442.6
Total                        | $  3,401.0       | $  4,064.5 |


| _id | d1a724e76 |
| title |  |
| text | Cash Flow
Cash flow provided by operating activities. Cash flows provided by operating activities were $7.2 million in fiscal 2019. The provision of cash was due primarily to our operating loss of $13.2 million adjusted for $22.4 million in non-cash expense including depreciation, amortization, and share based compensation and an increase of approximately $2 million in net operating assets and liabilities.

Cash flows provided by operating activities were $6.9 million in fiscal 2018. The provision of cash was due primarily to our operating loss of $12.1 million adjusted for $19.2 million in non-cash expense including depreciation, amortization, and share based compensation.
Cash flows provided by operating activities were $3.4 million in fiscal 2017. The provision of cash included $6.4 million in increased collections on accounts receivable.

Cash flow used in investing activities. Cash flows used in investing activities in fiscal 2019 were $5.5 million. This is primarily attributed to $2.2 million in development of proprietary software and $3.3 million for purchase of property and equipment, including internal use software.

Cash flows used in investing activities in fiscal 2018 were $15.1 million. This is primarily attributed to $8.9 million in development of proprietary software and $6.1 million for purchase of property and equipment, including internal use software.

Cash flows used in investing activities in fiscal 2017 were $13.9 million. This is primarily attributed to $11.9 million in development of proprietary software and $4.2 million for purchase of property and equipment, including internal use software offset by $2.2 million in proceeds from corporate owned life insurance policies.

Cash flow used in financing activities. Respectively, in fiscal 2019, 2018, and 2017, the $0.8 million, $1.3 million, and $0.8 million cash flows used in financing activities were primarily comprised of the repurchase of shares to satisfy employee tax withholding and to cover the exercise price of the options, and payments on capital lease obligations.

 |
| table | |         | Year ended March 31, |
------------------------------------------- | ------- | -------------------- | ---------
(In thousands)                              | 2019    | 2018                 | 2017
Net cash provided by (used in):             |         |                      |
Operating activities                        | $7,241  | $6,874               | $3,433
Investing activities                        | (5,534) | (15,085)             | (13,865)
Financing activities                        | (767)   | (1,295)              | (847)
Effect of exchange rate changes on cash     | (112)   | 194                  | (74)
Cash flows provided by (used in) operations | $828    | $(9,312)             | $(11,353) |


| _id | d1b34890a |
| title |  |
| text | Applying the German group tax rate to the reported pre-tax result would result in an income tax expense of €216 million (2017/18: €176 million). The deviation of €81 million (2017/18: €40 million) from the reported tax expense of €298 million (2017/18: €216 million) can be reconciled as follows:
1 Adjustment of previous year according to explanation in notes.
The item ‘effects of differing national tax rates’ includes a deferred tax revenue of €6 million (2017/18: €23 million) from tax rate changes.

Tax expenses and income relating to other periods of the previous year include a repayment of approximately €20 million because of a retrospective change in foreign law in 2018.
Tax holidays for the current year include effects from real estate transactions in the amount of €30 million (2017/18: €2 million).

 |
| table | € million                                             | 2017/2018 | 2018/2019
----------------------------------------------------- | --------- | ---------
EBT (earnings before taxes)                           | 576       | 709
Expected income tax expenses (30.53%)                 | 176       | 216
Effects of differing national tax rates               | −58       | −62
Tax expenses and income relating to other periods     | −21       | −6
Non-deductible business expenses for tax purposes     | 41        | 51
Effects of not recognised or impaired deferred taxes  | 79        | 114
Additions and reductions for local taxes              | 11        | 13
Tax holidays                                          | −14       | −39
Other deviations                                      | 3         | 5
Income tax expenses according to the income statement | 216       | 298
Group tax rate                                        | 37.6%     | 42.0% |


| _id | d1b36c60c |
| title |  |
| text | Our net sales by market sector for the indicated fiscal years were as follows (in millions):
Healthcare/Life Sciences. Net sales for fiscal 2019 in the Healthcare/Life Sciences sector increased $180.1 million, or 17.3%, as compared to fiscal 2018. The increase was driven by overall net increased customer end-market demand, a $32.7 million increase in production ramps of new products for existing customers and a $26.9 million increase in production ramps for new customers.

Industrial/Commercial. Net sales for fiscal 2019 in the Industrial/Commercial sector increased $63.5 million, or 6.9%, as compared to fiscal 2018. The increase was driven by a $64.8 million increase in production ramps of new products for existing customers and a $33.2 million increase in production ramps for new customers. The increase was partially offset by a $7.3 million decrease due to end-of-life products, a $4.2 million decrease due to a disengagement with a customer and overall net decreased

with a customer and overall net decreased customer end-market demand.

Aerospace/Defense. Net sales for fiscal 2019 in the Aerospace/Defense sector increased $143.5 million, or 32.2%, as compared to fiscal 2018. The increase was driven by a $120.2 million increase in production ramps of new products for existing customers, a $9.9 million increase in production ramps for new customers and overall net increased customer end-market demand.

Communications. Net sales for fiscal 2019 in the Communications sector decreased $96.2 million, or 20.4%, as compared to fiscal 2018. The decrease was driven by a $37.3 million reduction due to disengagements with customers, a $15.3 million decrease due to end-of-life products and overall net decreased customer endmarket demand. The decrease was partially offset by an $18.1 million increase in production ramps of new products for existing customers and a $4.5 million increase in production ramps for new

$4.5 million increase in production ramps for new customers.

 |
| table | Market Sector             | 2019     | 2018
------------------------- | -------- | --------
Healthcare/Life Sciences  | $1,220.0 | $1,039.9
Industrial/Commercial     | 981.2    | 917.7
Aerospace/Defense         | 588.6    | 445.1
Communications            | 374.6    | 470.8
Total net sales           | 3,164.4  | 2,873.5 |


| _id | d1b35a29a |
| title |  |
| text | Supplemental balance sheet information related to operating and finance leases as of the period presented was as follows (table in millions):
(1) ROU assets for operating leases are included in other assets and ROU assets for finance leases are included in property and equipment, net on the consolidated balance sheets

(2) Current lease liabilities are included primarily in accrued expenses and other on the consolidated balance sheets. An immaterial amount is presented in due from related parties, net on the consolidated balance sheets.
(3) Operating lease liabilities are presented as operating lease liabilities on the consolidated balance sheets. Finance lease liabilities are included in other liabilities on the consolidated balance sheets.

 |
| table | | January 31, 2020 |
---------------------------------- | ---------------- | --------------
                                   | Operating Leases | Finance Leases
ROU assets, non-current (1)        | $886             | $58
Lease liabilities, current (2)     | $109             | $4
Lease liabilities, non-current (3) | 746              | 55
Total lease liabilities            | $855             | $59 |


| _id | d1b352d74 |
| title |  |
| text | A.3.8 Financial Services
Financial Services supports its customers’ investments with leasing solutions and equipment, project and structured financing in the form of debt and equity investments. Based on its comprehensive financing know-how and specialist technology expertise in
the areas of Siemens businesses, Financial Services provides financial
solutions for Siemens customers as well as other companies.

Financial Services again delivered strong earnings before taxes. While the equity business recorded higher results, the result from the debt business declined, amongst others due to higher credit hits. Total assets increased along with a growth in debt business and in part due to positive currency translation effects.

Financial Services is geared to Siemens’ industrial businesses and its markets. As such Financial Services is influenced by the business development of the markets served by our industrial businesses, among other factors. Financial Services will continue to focus its business scope on areas of intense domain know-how.

 |
| table | |        | Fiscal year
--------------------------- | ------ | -----------
(in millions of €)          | 2019   | 2018
Earnings before taxes (EBT) | 632    | 633
ROE (after taxes)           | 19.1 % | 19.7 %
                            |        | Sep 30,
(in millions of €)          | 2019   | 2018
Total assets                | 29,901 | 27,628 |


| _id | d1b306974 |
| title |  |
| text | Capital stock 2019
Capital stock at December 31, 2019, consisted of the following:
The capital stock of the Parent Company is divided into two classes: Class A shares (quota value SEK 5.00) and Class B shares (quota value SEK 5.00). Both classes have the same rights of participation in the net assets and earnings.Class A shares, however, are entitled to one vote per share while Class B shares are entitled to one tenth of one vote per share.

At December 31, 2019, the total number of treasury shares was 19,853,247 (37,057,039 in 2018 and 50,265,499 in 2017) Class B shares.

 |
| table | Capital stock  |                  |
-------------- | ---------------- | ---------------------------
Parent Company | Number of shares | Capital stock (SEK million)
Class A shares | 261,755,983      | 1,309
Class B shares | 3,072,395,752    | 15,363
Total          | 3,334,151,735    | 16,672 |


| _id | d1b3aefe8 |
| title |  |
| text | Restricted Stock Awards
We present below a summary of changes in unvested units of restricted stock during 2019:

The Company recorded equity-based compensation expense related to restricted stock and RSUs (collectively “restricted stock awards”) of $31.8 million, $19.9 million, and $16.2 million in 2019, 2018 and 2017, respectively. The total fair value of restricted stock awards vested in 2019, 2018 and 2017, based on market value at the vesting dates was $18.2 million, $18.1 million, and $18.8 million, respectively. The weighted average grant-date fair value of RSUs granted during fiscal year 2019, 2018 and 2017

granted during fiscal year 2019, 2018 and 2017 was $49.48, $51.72 and $49.01, respectively. As of December 31, 2019, unrecognized compensation cost related to unvested RSU totaled $47.5 million and is expected to be recognized over a weighted average period of approximately 2.5 years. In January 2017, we elected to recognize forfeitures of equity-based payments as they occur.

awards”) of $31.8 million, $19.9 million, and $16.2 million in 2019, 2018 and 2017, respectively. The total fair value of restricted
stock awards vested in 2019, 2018 and 2017, based on market value at the vesting dates was $18.2 million, $18.1 million, and $18.8
million, respectively. The weighted average grant-date fair value of RSUs granted during fiscal year 2019, 2018 and 2017 was $49.48,

$51.72 and $49.01, respectively. As of December 31, 2019, unrecognized compensation cost related to unvested RSU totaled $47.5
million and is expected to be recognized over a weighted average period of approximately 2.5 years. In January 2017, we elected to
recognize forfeitures of equity-based payments as they occur.
Included in RSU grants for the year ended December 31, 2019 are 282,327 units that have performance-based vesting criteria. The

performance criteria are tied to our financial performance. As of December 31, 2019, the associated equity-based compensation
expense has been recognized for the portion of the award attributable to the 2019 performance criteria.

 |
| table | | Number of Units | Grant Date Fair Value
----------------------------------- | --------------- | ---------------------
Outstanding at January 1, 2019      | 997,173         | $52.22
Granted                             | 945,159         | 49.48
Vested                              | (386,060)       | 51.79
Forfeited                           | (59,579)        | 50.56
Outstanding at December 31, 2019    | 1,496,693       | $50.67 |


| _id | d1b3bc35a |
| title |  |
| text | 4. Other Current Assets
Other current assets consist of (in thousands):

 |
| table | | December 31, |
----------------------------------------------------------------------- | ------------ | ------
                                                                        | 2019         | 2018
Indemnification receivable from SSL for pre-closing taxes (see Note 13) | $598         | $2,410
Due from affiliates                                                     | 186          | 161
Prepaid expenses                                                        | 164          | 151
Other                                                                   | 374          | 510
                                                                        | $1,322       | $3,232 |


| _id | d1b2e24e8 |
| title |  |
| text | On a sequential basis, ADG revenues were up 3.3%, driven by an increase in volumes of approximately 8%, partially offset by a decrease in average selling prices of approximately 5%, mostly attributable to product mix.
AMS revenues increased 12.1% driven by Analog and Imaging products. AMS increase was due to an increase of approximately 5% in average selling prices, entirely due to product mix, and to higher volumes of approximately of 7%.

MDG revenues increased by 7.9%, mainly driven by Microcontrollers, due to both higher average selling prices of approximately 6%, entirely due to product mix, and higher volumes of approximately 2%.

On a year-over-year basis, fourth quarter net revenues increased by 4.0%. ADG revenues decreased 4.5% compared to the year-ago quarter on lower revenues in both Automotive and Power Discrete. The decrease was entirely due to lower average selling prices of approximately 4%, while volumes remained substantially flat. The decrease in average selling prices was a combination of less favorable product mix and lower selling prices.

AMS fourth quarter revenues grew 9.9% year-over-year, mainly driven by Analog and Imaging. The increase was entirely due to higher average selling prices of approximately 18%, entirely attributable to product mix,
partially offset by lower volumes of approximately 8%. MDG fourth quarter revenues increased by 7.6%, mainly driven by Microcontrollers. The increase was due to higher average selling prices of approximately 9%,
entirely due to improved product mix.

 |
| table | |                   | Three Months Ended |                          | % Variation |
-------------------------------------------- | ----------------- | ------------------ | ------------------------ | ----------- | --------------
                                             | December 31, 2019 | September 29, 2019 | December 31, 2018        | Sequential  | Year-Over-Year
                                             |                   |                    | (Unaudited, in millions) |             |
Automotive and Discrete Group (ADG)          | $924              | $894               | $967                     | 3.3%        | (4.5)%
Analog, MEMS and Sensors Group (AMS)         | 1,085             | 968                | 988                      | 12.1        | 9.9
Microcontrollers and Digital ICs Group (MDG) | 742               | 688                | 689                      | 7.9         | 7.6
Others                                       | 3                 | 3                  | 4                        | —           | —
Total consolidated net revenues              | $2,754            | $2,553             | $2,648                   | 7.9%        | 4.0% |


| _id | d1b31f906 |
| title |  |
| text | Construction: Net income from our Construction segment for the year ended December 31, 2019 decreased $3.0 million to $24.7 million from $27.7 million for the year ended December 31, 2018. Adjusted EBITDA from our Construction segment for the year ended December 31, 2019 increased $14.8 million to $75.7 million from $60.9 million for the year ended December 31, 2018. The increase in Adjusted EBITDA was driven by the acquisition of GrayWolf.

Marine Services: Net income (loss) from our Marine Services segment for the year ended December 31, 2019 decreased $2.9 million to a loss of $2.6 million from income of $0.3 million for the year ended December 31, 2018. Adjusted EBITDA from our Marine Services segment for the year ended December 31, 2019 decreased $2.0 million to $30.7 million from $32.7 million for the year ended December 31, 2018.

The decrease in Adjusted EBITDA was driven by a decline in income from equity method investees, due to HMN driven by lower revenues on large turnkey projects underway than in the comparable period, and losses at SBSS from a loss contingency related to ongoing legal disputes and lower vessel utilization.

Largely offsetting these losses was higher gross profit as a result of improved profitability from telecom maintenance zones and project work in the offshore power and offshore renewables end markets, as well as the benefit of improved vessel utilization. Additionally, the comparable period was impacted by higher than expected costs on a certain offshore power construction project that were not repeated in the current period.

Energy: Net income (loss) from our Energy segment for the year ended December 31, 2019 increased by $5.1 million to income of $4.2 million from a loss of $0.9 million for the year ended December 31, 2018. Adjusted EBITDA from our Energy segment for the year ended December 31, 2019 increased $11.5 million to $17.0 million from $5.5 million for the year ended December 31, 2018.

The increase in Adjusted EBITDA was primarily driven by the AFTC recognized in the fourth quarter of 2019 attributable to 2018 and 2019 and higher volume-related revenues from the recent acquisition of the ampCNG stations and growth in CNG sales volumes. The increase was also driven by Partially offsetting these increases were higher selling, general and administrative expenses as a result of the acquisition of the ampCNG stations.

Telecommunications: Net income (loss) from our Telecommunications segment for the year ended December 31, 2019 decreased by $6.0 million to a loss of $1.4 million from income of $4.6 million for the year ended December 31, 2018. Adjusted EBITDA from our Telecommunications segment for the year ended December 31, 2019 decreased $1.9 million to $3.4 million from $5.3 million for the year ended December 31, 2018.

The decrease in Adjusted EBITDA was primarily due to both a decline in revenue and the contracting of call termination margin as a result of the continued decline in the international long distance market, partially offset by a decrease in compensation expense due to headcount decreases and reductions in bad debt expense.

Life Sciences: Net income (loss) from our Life Sciences segment for the year ended December 31, 2019 decreased $65.4 million to a loss of $0.2 million from income of $65.2 million for the year ended December 31, 2018. Adjusted EBITDA loss from our Life Sciences segment for the year ended December 31, 2019 decreased $3.1 million to $11.8 million from $14.9 million for the year ended December 31, 2018.

The decrease in Adjusted EBITDA loss was primarily driven by comparably fewer expenses at the Pansend holding company, which incurred additional compensation expense in the prior period related to the performance of the segment. The decrease was also due to a reduction in costs associated BeneVir, which was sold in the second quarter of 2018.

Broadcasting: Net loss from our Broadcasting segment for the year ended December 31, 2019 decreased $16.0 million to $18.5 million from $34.5 million for the year ended December 31, 2018. Adjusted EBITDA loss from our Broadcasting segment for the year ended December 31, 2019 decreased $10.6 million to $6.3 million from $16.9 million for the year ended December 31, 2018.

The decrease in Adjusted EBITDA loss was primarily driven by the reduction in costs as the segment exited certain local markets which were unprofitable at Network, partially offset by higher overhead expenses associated with the growth of the Broadcast stations subsequent to the prior year.

Non-operating Corporate: Net loss from our Non-operating Corporate segment for the year ended December 31, 2019 increased $5.7 million to $87.6 million from $81.9 million for the year ended December 31, 2018. Adjusted EBITDA loss from our Non-operating Corporate segment for the year ended December 31, 2019 decreased $8.0 million to $17.9 million from $25.9 million for the year ended December 31, 2018.

The decrease in Adjusted EBITDA loss was primarily attributable to reductions in bonus expense and other general and administrative expenses as previously described.

 |
| table | (in millions):                    |        | Year ended December 31, |
--------------------------------- | ------ | ----------------------- | ---------------------
                                  | 2019   | 2018                    | Increase / (Decrease)
Construction                      | $ 75.7 | $ 60.9                  | $  14.8
Marine Services                   | 30.7   | 32.7                    | (2.0)
Energy                            | 17.0   | 5.5                     | 11.5
Telecommunications                | 3.4    | 5.3                     | (1.9)
Total Core Operating Subsidiaries | 126.8  | 104.4                   | 22.4
Life Sciences                     | (11.8) | (14.9)                  | 3.1
Broadcasting                      | (6.3)  | (16.9)                  | 10.6
Other and Eliminations            | —      | (2.2)                   | 2.2
Total Early Stage and Other       | (18.1) | (34.0)                  | 15.9
Non-Operating Corporate           | (17.9) | (25.9)                  | 8.0
Adjusted EBITDA                   | $ 90.8 | $ 44.5                  | $ 46.3 |


| _id | d1b34aebc |
| title |  |
| text | B. Liquidity and Capital Resources
Our operations and strategic objectives require continuing capital investment, and our resources include cash on hand and cash provided by operations, as well as access to capital from bank borrowings and access to capital markets. Management believes that cash generated by or available to us should be sufficient to fund our capital and liquidity needs for at least the next 12 months.

Our future financial and operating performance, ability to service or refinance debt and ability to comply with covenants and restrictions contained in our debt agreements will be subject to future economic conditions, the financial health of our customers and suppliers and to financial, business and other factors, many of which are beyond our control. Furthermore, management believes that working capital is sufficient for our present requirements.

(*) including trade receivables classified as current asset based on operating cycle of two years.
The decrease in working capital as at March 31, 2019 as compared to March 31, 2018 was primarily the result of an increase in short-term borrowings amounting to $208.9 million as at March 31, 2019 from $152 million as at March 31, 2018 due to overdraft against restricted deposits and loan installments due within 12 months.

For additional information, please see Note 2(a) and Note 32 to our audited Consolidated Financial Statements appearing elsewhere in this annual report.

 |
| table | |          | Year ended March 31, |
------------------- | -------- | -------------------- | --------
                    | 2019     | 2018                 | 2017
                    |          | (in thousands)       |
Current assets(*)   | $351,597 | $339,562             | $362,477
Current liabilities | 318,672  | 239,327              | 316,101
Working capital     | $32,925  | $100,235             | $46,376 |


| _id | d1b38fc38 |
| title |  |
| text | Foreign Currencies
As a multinational business, the Company's transactions are denominated in a variety of currencies. When appropriate, the Company uses forward foreign currency contracts to reduce its overall exposure to the effects of currency fluctuations on its results of operations and cash flows. The Company's policy prohibits trading in currencies for which there are no underlying exposures and entering into trades for any currency to intentionally increase the underlying exposure.

The Company primarily hedges existing assets and liabilities associated with transactions currently on its balance sheet, which are undesignated hedges for accounting purposes.
As of December 31, 2019 and 2018, the Company had net outstanding foreign exchange contracts with net notional amounts of $183.3 million and $157.3 million, respectively. Such contracts were obtained through financial institutions and were scheduled to mature within one to three months from the time of purchase.

Management believes that these financial instruments should not subject the Company to increased risks from foreign exchange movements because gains and losses on these contracts should offset losses and gains on the underlying assets, liabilities and transactions to which they are related.
The following schedule summarizes the Company's net foreign exchange positions in U.S. dollars (in millions):

Amounts receivable or payable under the contracts are included in other current assets or accrued expenses in the accompanying Consolidated Balance Sheets. For the years ended December 31, 2019, 2018 and 2017, realized and unrealized foreign currency transactions totaled a loss of $5.0 million, $8.0 million and $6.3 million, respectively. The realized and unrealized foreign currency transactions are included in other income and expenses in the Company's Consolidated Statements of Operations and

Consolidated Statements of Operations and Comprehensive Income.

 |
| table | |            | As of December 31, |            |
----------------------- | ---------- | ------------------ | ---------- | ----------------
                        | 2019       |                    | 2018       |
                        | Buy (Sell) | Notional Amount    | Buy (Sell) |  Notional Amount
Japanese Yen            | $49.8      | $49.8              | $29.9      | $29.9
Philippine Peso         | 36.4       | 36.4               | 30.1       | 30.1
Malaysian Ringgit       | 20.4       | 20.4               | —          | —
Chinese Yuan            | 20.2       | 20.2               | 20.4       | 20.4
Korean Won              | 18.1       | 18.1               | 20.8       | 20.8
Czech Koruna            | 11.9       | 11.9               | 9.2        | 9.2
Euro                    | —          | —                  | 13.1       | 13.1
Other currencies - Buy  | 21.9       | 21.9               | 26.3       | 26.3
Other currencies - Sell | (4.6)      | 4.6                | (7.5)      | 7.5
                        | $174.1     | $183.3             | $142.3     | $157.3 |


| _id | d1b35d51c |
| title |  |
| text | GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
Note 18. Quarterly Consolidated Results of Operations Data (Unaudited)

The following table sets forth our quarterly consolidated results of operations data for each of the eight quarters in the period ended December 31, 2019. GS Holdings is our predecessor for accounting purposes and, accordingly, amounts prior to the Reorganization Transactions and IPO represent the historical consolidated operations of GS Holdings and its subsidiaries. The amounts during the period from May 24, 2018 through December 31, 2018 represent those of consolidated GreenSky, Inc. and its

those of consolidated GreenSky, Inc. and its subsidiaries. Basic and diluted earnings per share of Class A common stock is applicable only for the period from May 24, 2018 through December 31, 2018, which is the period following the Reorganization Transactions and IPO. Prior to the Reorganization Transactions and IPO, GreenSky, Inc. did not engage in any business or other activities except in connection with its formation and initial capitalization. See Note 1 for further information on our organization

1 for further information on our organization and see Note 2 for further information on our earnings per share.

(1) Year-to-date results may not agree to the sum of individual quarterly results due to rounding.

 |
| table | |               |                | Year Ended December 31, 2018 |                |
------------------------------------------------------------ | ------------- | -------------- | ---------------------------- | -------------- | --------
                                                             | First
Quarter | Second
Quarter | Third Quarter                | Fourth
Quarter | Total
Total revenue                                                | $85,326       | $105,704       | $113,912                     | $109,731       | $414,673
Cost of revenue (exclusive of depreciation
and amortization) | 36,130        | 33,765         | 35,374                       | 55,170         | 160,439
Total costs and expenses                                     | 61,749        | 58,896         | 59,655                       | 81,583         | 261,883
Operating profit                                             | 23,577        | 46,808         | 54,257                       | 28,148         | 152,790
Total other income (expense), net                            | (4,973)       | (4,398)        | (5,170)                      | (4,735)        | (19,276)
Income before income tax expense (benefit)                   | 18,604        | 42,410         | 49,087                       | 23,413         | 133,514
Net income                                                   | 18,604        | 40,816         | 45,712                       | 22,848         | 127,980
Less: Net income attributable to
noncontrolling interests    | 18,604        | 35,266         | 33,711                       | 16,143         | 103,724
Net income attributable to GreenSky, Inc.                    | N/A           | 5,550          | 12,001                       | 6,705          | 24,256
Earnings per share of Class A common stock:                  |               |                |                              |                |
Basic                                                        | N/A           | $0.10          | $0.21                        | $0.12          | $0.43
Diluted(1)                                                   | N/A           | $0.09          | $0.20                        | $0.11          | $0.41 |