| _id | d1a711510 |
| title |  |
| text | We utilized a comprehensive approach to evaluate and document the impact of the guidance on our current accounting policies and practices in order to identify material differences, if any, that would result from applying the new requirements to our revenue contracts. We did not identify any material differences resulting from applying the new requirements to our revenue contracts. In addition, we did not identify any significant changes to our business processes, systems, and controls to support recognition

systems, and controls to support recognition and disclosure requirements under the new guidance. We adopted the provisions of Topic 606 in fiscal 2019 utilizing the modified retrospective method. We recorded a $0.5 million cumulative effect adjustment, net of tax, to the opening balance of fiscal 2019 retained earnings, a decrease to receivables of $7.6 million, an increase to inventories of $2.8 million, an increase to prepaid expenses and other current assets of $6.9 million, an increase to other accrued

of $6.9 million, an increase to other accrued liabilities of $1.4 million, and an increase to other noncurrent liabilities of $0.2 million. The adjustments primarily related to the timing of recognition of certain customer charges, trade promotional expenditures, and volume discounts.

The effect of the changes made to our Consolidated Balance Sheet as of May 26, 2019 for the adoption of Topic 606 was as follows:
Notes to Consolidated Financial Statements - (Continued) Fiscal Years Ended May 26, 2019, May 27, 2018, and May 28, 2017 (columnar dollars in millions except per share amounts)

 |
| table | Current assets                                    | As Reported | Adjustments | Balances without Adoption of Topic 606
------------------------------------------------- | ----------- | ----------- | --------------------------------------
Receivables, less allowance for doubtful accounts | $831.7      | $8.7        | $840.4
Inventories .                                     | 1,571.7     | (3.1)       | 1,568.6
Prepaid expenses and other current assets         | 93.8        | (16.6)      | 77.2
Current liabilities                               |             |             |
Other accrued liabilities                         | 691.6       | (1.1)       | 690.5
Other noncurrent liabilities .                    | 1,951.8     | (2.5)       | 1,949.3 |


| _id | d1b34f5a2 |
| title |  |
| text | The deferred income tax balance sheet accounts arise from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes.
Components of the deferred tax assets and liabilities at December 31 were as follows:
[1] Upon adoption of ASC 842, deferred taxes associated with previously recognized deferred rent liabilities were reclassified into deferred taxes for ROU asset and lease liability.

As of December 31, 2019, the Company had approximately $19.0 of tax-effected U.S. federal net operating loss carryforwards. Some of these net operating loss carryforwards have an indefinite carryforward period, and those that do not will begin to expire in 2021 if not utilized. The majority of the U.S. federal net operating loss carryforwards are subject to limitation under the Internal Revenue Code of 1986, as amended (“IRC”) Section 382; however, the Company expects to utilize such losses in their

Company expects to utilize such losses in their entirety prior to expiration. The U.S. federal net operating loss carryforwards decreased from 2018 to 2019 primarily due to current year tilization. The Company has approximately $33.7 of tax-effected state net operating loss carryforwards (without regard to federal benefit of state). Some of these net operating loss carryforwards have an indefinite carryforward period, and those that do not will begin to expire in 2020 if not utilized. The state net

to expire in 2020 if not utilized. The state net operating loss carryforwards are primarily related to Florida and New Jersey, but the Company has smaller net operating losses in various other states. The Company has approximately $65.6 of tax-effected foreign net operating loss carryforwards. Some of these net operating loss carryforwards have an indefinite carryforward period, and those that do not will begin to expire in 2020 if not utilized. The foreign net operating loss carryforwards increased from

net operating loss carryforwards increased from 2018 to 2019 primarily due to the recognition of a discrete tax benefit of $41.0 in connection with a foreign restructuring plan allowing the future realization of net operating losses. Additionally, the Company has $5.0 of U.S. federal and state research and develop- ment tax credit carryforwards (without regard to federal benefit of state). Some of these research and development credit carry- forwards have an indefinite carryforward period, and those that

an indefinite carryforward period, and those that do not will begin to expire in 2020 if not utilized.

As of December 31, 2019, the Company determined that a total valuation allowance of $36.3 was necessary to reduce U.S. fed- eral and state deferred tax assets by $15.4 and foreign deferred tax assets by $20.9, where it was more likely than not that all of such deferred tax assets will not be realized. As of December 31, 2019, the Company believes it is more likely than not that the remaining net deferred tax assets will be realized based on the Company’s estimates of future taxable income and any

estimates of future taxable income and any applicable tax-planning strategies within various tax jurisdictions.

 |
| table | | 2019        | 2018
----------------------------------------------------- | ----------- | -----------
Deferred tax assets:                                  |             |
Reserves and accrued expenses                         | $    175.2  | $    156.5
Inventories                                           | 4.3         | 4.5
Net operating loss carryforwards                      | 111.2       | 67.9
R&D credits                                           | 4.1         | 6.1
Valuation allowance                                   | (36.3)      | (26.4)
Outside basis difference on investments held for sale | —           | 2.7
Lease liability1                                      | 64.0        | —
Total deferred tax assets                             | $    322.5  | $    211.3
Deferred tax liabilities:                             |             |
Reserves and accrued expenses                         | $      15.5 | $      14.3
Amortizable intangible assets                         | 1,229.9     | 1,043.0
Plant and equipment                                   | 10.8        | 6.6
Accrued tax on unremitted foreign earnings            | 17.1        | 16.3
Outside basis difference on investments held for sale | —           | 10.0
ROU asset1                                            | 61.7        | —
Total deferred tax liabilities                        | $ 1,335.0   | $ 1,090.2 |


| _id | d1b399d28 |
| title |  |
| text | Consolidated Financial Results
Operating Expenses
The following table sets forth operating expenses by segment for the periods presented (in millions):

The increase in Operating Expenses was primarily driven by higher net personnel costs, technology-related costs and acquisition-related costs in our Software Solutions segment. The increase in our Data and Analytics segment primarily related to higher net personnel costs and higher data costs related to revenue growth. The decrease in Corporate and Other was primarily driven by lower incentive bonus expense.

 |
| table | | Year ended December 31, |        | Variance |
------------------- | ----------------------- | ------ | -------- | ----
                    | 2019                    | 2018   | $        | %
Software Solutions  | $412.7                  | $394.8 | $17.9    | 5%
Data and Analytics  | 123.4                   | 115.0  | 8.4      | 7%
Corporate and Other | 109.9                   | 115.6  | (5.7)    | (5)%
Total               | $646.0                  | $625.4 | $20.6    | 3% |


| _id | d1b307338 |
| title |  |
| text | Equity Method We own 20.51%of GTE Mobilnet of Texas RSA #17 Limited Partnership (“RSA #17”), 16.67% of Pennsylvania RSA 6(I) Limited Partnership (“RSA 6(I)”) and 23.67% of Pennsylvania RSA 6(II) Limited Partnership (“RSA 6(II)”). RSA #17 provides cellular service to a limited rural area in Texas.

RSA 6(I) and RSA 6(II) provide cellular service in and around our Pennsylvania service territory. Because we have significant influence over the operating and financial policies of these three entities, we account for the investments using the equity method. In connection with the adoption of ASC 606 by our equity method partnerships, the value of our combined partnership interests increased $1.8 million, which is reflected in the cumulative effect adjustment to retained earnings during the year ended

to retained earnings during the year ended December 31, 2018.

In 2019, 2018 and 2017, we received cash distributions from these partnerships totaling $19.0 million, $21.8 million and $17.2 million, respectively. The carrying value of the investments exceeds the underlying equity in net assets of the partnerships by $32.8 million as of December 31, 2019 and 2018.
The combined results of operations and financial position of our three equity investments in the cellular limited partnerships are summarized below:

 |
| table | (In thousands)          | 2019      | 2018      | 2017
----------------------- | --------- | --------- | ---------
Total revenues          | $ 349,640 | $ 346,251 | $ 350,611
Income from operations  | 100,182   | 100,571   | 104,973
Net income before taxes | 99,146    | 99,408    | 103,497
Net income              | 99,146    | 99,408    | 103,497
Current assets          | $ 80,655  | $ 75,040  | $ 78,782
Non-current assets      | 156,672   | 103,996   | 95,959
Current liabilities     | 33,292    | 24,719    | 22,472
Non-current liabilities | 92,477    | 51,840    | 51,463
Partnership equity      | 111,558   | 102,478   | 100,806 |


| _id | d1b36d020 |
| title |  |
| text | At December 31, 2019, the Company’s net operating losses and credit carryforwards are:
(1) Excludes federal and state net operating losses of $60.2 million and $0.8 million, respectively, from prior acquisitions that the Company expects will expire unutilized
(2) Excludes federal and state tax credits of $0.1 million and $8.3 million, respectively, that the Company expects will expire unutilized

Carryforward losses and credits expire between 2020 and 2038, except for the 2019 federal net operating loss of $43.9 million and $1 million of state credits, which both have unlimited carryforward periods.

The Company’s India subsidiary is primarily located in Special Economic Zones (“SEZs”) and is entitled to a tax holiday in India. The tax holiday reduces or eliminates income tax in India. The tax holiday in the Hyderabad SEZ is scheduled to expire in 2024. The tax holiday in the Bangalore SEZ is scheduled to expire in 2022. For 2019, 2018 and 2017, the income tax holiday reduced the Company’s provision for income taxes by $1.9 million, $1.3 million, and $1 million, respectively.

 |
| table | (in thousands)                               | Federal  | State
-------------------------------------------- | -------- | ------
Net operating losses (1)                     | $120,722 | $3,337
Net operating losses due to acquisitions (1) | $76,827  | $778
Credit carryforwards (2)                     | $8,202   | $1,958
Credit carryforwards due to acquisitions     | $640     | $227 |


| _id | d1b30cb26 |
| title |  |
| text | Uncertain Tax Positions
As of December 31, 2019, 2018 and 2017, we had gross unrecognized tax benefits of $4.4 million, $4.2 million
and $3.8 million, respectively. Accrued interest expense related to unrecognized tax benefits is recognized as part of
our income tax provision in our consolidated statements of operations and is immaterial for the years ended
December 31, 2019 and 2018. Our policy for classifying interest and penalties associated with unrecognized income

tax benefits is to include such items in income tax expense.
The activity related to the unrecognized tax benefits is as follows (in thousands):

These amounts are related to certain deferred tax assets with a corresponding valuation allowance. As ofDecember 31, 2019, the total amount of unrecognized tax benefits, if recognized, that would affect the effective taxrate is $1.0 million. We do not anticipate a material change to our unrecognized tax benefits over the next twelvemonths. Unrecognized tax benefits may change during the next twelve months for items that arise in the ordinarycourse of business.

We are subject to taxation in the United States, various states, and several foreign jurisdictions. Because we havenet operating loss and credit carryforwards, there are open statutes of limitations in which federal, state and foreigntaxing authorities may examine our tax returns for all years from 2005 through the current period. We are notcurrently under examination by any taxing authorities.

 |
| table | | Years Ended December 31, |        |
---------------------------------------------------------------- | ------------------------ | ------ | ------
                                                                 | 2019                     | 2018   | 2017
Gross unrecognized tax benefits —beginning balance               | $4,191                   | $3,782 | $3,360
Increases (decrease) related to tax positions from prior years   | (280)                    | (266)  | (151)
Increases related to tax positions taken during current year     | 530                      | 675    | 573
Decreases related to tax positions taken during the current year | —                        | —      | —
Gross unrecognized tax benefits —ending balance                  | $4,441                   | $4,191 | $3,782 |


| _id | d1b34159c |
| title |  |
| text | On a worldwide basis, the Company's defined benefit pension plans were 88% funded as of January 31, 2019.

As of January 31, 2019, the aggregate accumulated benefit obligation was $85.1 million for the defined benefit pension plans compared to $139.5 million as of January 31, 2018. Included in the aggregate data in the following tables are the amounts applicable to the Company's defined benefit pension plans, with accumulated benefit obligations in excess of plan assets, as well as plans with projected benefit obligations in excess of plan assets. Amounts related to such plans at the end of each period were as

to such plans at the end of each period were as follows: because their exercise prices are higher than the average market value of Autodesk’s stock during the fiscal year.

 |
| table | | Fiscal Year Ended January 31, |
-------------------------------------------------------------------- | ----------------------------- | ------
                                                                     | 2019                          | 2018
Plans with accumulated benefit obligations in excess of plan assets: |                               |
Accumulated benefit obligations                                      | $75.6                         | $130.7
Plan assets                                                          | 70.0                          | 112.1
Plans with projected benefit obligations in excess of plan assets:   |                               |
Projected benefit obligations                                        | $91.6                         | $158.1
Plan assets                                                          | 80.8                          | 121.1 |


| _id | d1b396510 |
| title |  |
| text | 16. INCOME TAXES
The provision for (benefit from) income taxes on income from continuing operations before income taxes consists of the following (in thousands):

 |
| table | | 2019    | 2018     | 2017
-------------------------- | ------- | -------- | --------
Currently payable:         |         |          |
Federal                    | $1,995  | $1,163   | $5,617
State                      | 557     | 114      | 1,022
Foreign                    | 13,448  | 107,487  | 116,022
                           | 16,000  | 108,764  | 122,661
Deferred and other:        |         |          |
Federal                    | (407)   | 26,334   | 1,413
State                      | 516     | (489)    | (153)
Foreign                    | (9,886) | (20,414) | (30,510)
                           | (9,777) | 5,431    | (29,250)
Provision for income taxes | $6,223  | $114,195 | $93,411 |


| _id | d1b3118b0 |
| title |  |
| text | Option Exercises and Stock Vested
The table below sets forth information concerning the number of shares acquired on exercise of option awards and vesting of stock awards in 2019 and the value realized upon vesting by such officers.
(1) Amounts realized from the vesting of stock awards are calculated by multiplying the number of shares that vested by the fair market value of a share of our common stock on the vesting date.

 |
| table | | Option Awards                             |                                | Stock Awards                             |
--------------- | ----------------------------------------- | ------------------------------ | ---------------------------------------- | -----------------------------
Name            | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($)
Jon Kirchner    | —                                         | —                              | 153,090                                  | 3,428,285
Robert Andersen | —                                         | —                              | 24,500                                   | 578,806
Paul Davis      | —                                         | —                              | 20,500                                   | 482,680
Murali Dharan   | —                                         | —                              | 15,000                                   | 330,120
Geir Skaaden    | —                                         | —                              | 21,100                                   | 500,804 |


| _id | d1b3164f0 |
| title |  |
| text | A. Operating Results
YEAR ENDED DECEMBER 31, 2019 COMPARED TO YEAR ENDED DECEMBER 31, 2018

Management believes that net voyage revenue, a non-GAAP financial measure, provides additional meaningful information because it enables us to compare the profitability of our vessels which are employed under bareboat charters, spot related time charters and spot charters. Net voyage revenues divided by the number of days on the charter provides the Time Charter Equivalent (TCE) Rate. Net voyage revenues and TCE rates are widely used by investors and analysts in the tanker shipping industry for comparing

in the tanker shipping industry for comparing the financial performance of companies and for preparing industry averages. We believe that our method of calculating net voyage revenue is consistent with industry standards. The table below reconciles our net voyage revenues to voyage revenues.

 |
| table | |           | Years Ended December 31,     |
------------------------------------- | --------- | ---------------------------- | ---------
All figures in USD ‘000               | 2019      | 2018                         | Variance
Voyage Revenue                        | 317,220   | 289,016                      | 9.8%
Voyage Expenses                       | (141,770) | (165,012)                    | (14.1%)
Vessel Operating Expenses             | (66,033)  | (80,411)                     | (17.9%)
Impairment Loss on Vessels            | -         | (2,168)                      | N/A
Impairment Loss on Goodwill           | -         | -                            | N/A
Loss from Disposal of Vessels         | -         | (6,619)                      | N/A
General and Administrative Expenses   | (13,481)  | (12,727)                     | 5.9%
Depreciation Expenses                 | (63,965)  | (60,695)                     | 5.4%
Net Operating (Loss) Income           | 31,971    | (38,616)                     | (182.8%)
Interest Income                       | 298       | 334                          | (10.8%)
Interest Expenses                     | (38,390)  | (34,549)                     | 11.1%
Other Financial Expenses              | (4,231)   | (14,808)                     | (71.4%)
Equity Loss from Associate            | -         | (7,667)                      | N/A
Net (Loss) Income                     | (10,352)  | (95,306)                     | (89.1%) |


| _id | d1b3b9b78 |
| title |  |
| text | A reconciliation of the gross unrecognized tax benefit is as follows (in thousands):
The unrecognized tax benefits, if recognized, would not impact the Company's effective tax rate as the recognition of these tax benefits would be offset by changes in the Company's valuation allowance. The Company does not believe there will be any material changes in its unrecognized tax benefits over the next twelve months.

As of December 31, 2019 and 2018, the Company had no accrued interest or penalties related to uncertain tax positions. Due to the Company’s historical loss position, all tax years from inception through December 31, 2019 remain open due to unutilized net operating losses.

The Company files income tax returns in the United States and various states and foreign jurisdictions and is subject to examination by various taxing authorities including major jurisdiction like the United States. As such, all its net operating loss and research credit carryforwards that may be used in future years are subject to adjustment, if and when utilized.

Utilization of the net operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before their utilization.

 |
| table | | Year Ended December 31, |        |
------------------------------------------------------ | ----------------------- | ------ | ------
                                                       | 2019                    | 2018   | 2017
Unrecognized tax benefit - beginning balance           | $8,217                  | $7,527 | $6,447
Increases for tax positions taken in prior years  —    | —                       | —      | 16
Decreases for tax positions taken in prior years  —    | __                      | (242)  | —
Increases for tax positions taken in current year  623 | 623                     | 932    | 1,064
Unrecognized tax benefit - ending balance              | $8,840                  | $8,217 | $7,527 |


| _id | d1b399e36 |
| title |  |
| text | DEPRECIATION AND AMORTIZATION
1 See “Accounting Policies” for more information.
1 See “Accounting Policies” for more information. Total depreciation and amortization increased this year primarily as a result of depreciation of right-of-use assets due to our adoption of IFRS 16 on January 1, 2019 and higher capital expenditures over the past several years. See “Capital Expenditures” for more information.

 |
| table | (In millions of dollars)                                                 | Years ended December 31 |       |
------------------------------------------------------------------------ | ----------------------- | ----- | ----
                                                                         | 2019                    | 2018  | %Chg
Depreciation                                                             | 2,297                   | 2,174 | 6
Amortization                                                             | 16                      | 37    | (57)
Depreciation and amortization before depreciation of right-of-use assets | 2,313                   | 2,211 | 5
Depreciation of right-of-use assets 1                                    | 175                     | -     | n/m
Total depreciation and amortization                                      | 2,488                   | 2,211 | 13 |


| _id | d1b391c4a |
| title |  |
| text | Selling, General and Administrative

Selling, general and administrative expense decreased $13.0 million to $88.8 million for the year ended December 31, 2019, as compared to $101.8 million for the year ended December 31, 2018. The decrease was primarily due to a decrease in intangible asset amortization of $8.9 million as certain assets reached the end of their useful lives, as well as decreases in payroll-related expense of $1.7 million due to lower headcount, professional fees of $1.3 million, outside services of $0.5 million, and

million, outside services of $0.5 million, and travel-related expenses of $0.3 million.

We expect selling, general and administrative expenses to remain relatively flat in the near-term; however, our expenses may increase in the future as we expand our sales and marketing organization to enable market expansion.

 |
| table | | Year Ended December 31, |                        | % Change
----------------------------------- | ----------------------- | ---------------------- | --------
                                    | 2019                    | 2018                   | 2019
                                    |                         | (dollars in thousands) |
Selling, general and administrative | $88,762                 | $101,789               | (13)%
% of net revenue                    | 28%                     | 26%                    | |


| _id | d1b303b70 |
| title |  |
| text | GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
Note 6. Property, Equipment and Software
Property, equipment and software were as follows as of the dates indicated.

 |
| table | | December 31, |
----------------------------------------------- | ------------ | -------
                                                | 2019         | 2018
Furniture                                       | $2,907       | $2,813
Leasehold improvements                          | 4,902        | 4,171
Computer hardware                               | 2,494        | 2,923
Software                                        | 20,126       | 8,344
Total property, equipment and software, at cost | 30,429       | 18,251
Less: accumulated depreciation                  | (5,701)      | (5,462)
Less: accumulated amortization                  | (6,419)      | (2,557)
Total property, equipment and software, net     | $18,309      | $10,232 |


| _id | d1b2f4e5e |
| title |  |
| text | Activity under our stock option plans is summarized as follows:
(a) Weighted-average exercise price
(b) Weighted-average contractual life remaining
The total aggregate intrinsic value of options exercised is $2,149, $1,724, and $1,944 for fiscal years ended March 31, 2017, 2018, and 2019, respectively.

 |
| table | | Number of Shares | Average Price (a) | Average Life (years) (b) | Aggregate Intrinsic Value
----------------------------- | ---------------- | ----------------- | ------------------------ | -------------------------
Outstanding at March 31, 2018 | 1,894            | $12.90            | -                        | -
Options granted               | -                | -                 | -                        | -
Options exercised             | (326)            | 13.11             | -                        | $1,944
Options cancelled/forfeited   | (122)            | 13.22             | -                        | 295
Outstanding at March 31, 2019 | 1,446            | $12.82            | 3.29                     | $6,528
Exercisable at March 31, 2019 | 1,347            | $12.70            | 3.08                     | $6,253 |


| _id | d1b39f174 |
| title |  |
| text | 2.1 Segment information
Segment information is based on the information that management uses to make decisions about operating matters and allows users to review operations through the eyes of management. We present our reportable segments and measure our segment results on continuing operations basis, i.e. the same basis as our internal management reporting structure.
We have four reportable segments which offer a service that includes comparison, purchase support and lead referrals across:

• Health (private health insurance),
• Life and General Insurance,
• Energy and Telecommunications, and
• Other, predominately offering financial service products including home loans in Australia and Asia.
In the current year, unallocated corporate costs include costs associated with the business restructure and other one-off transactions.
1 Non-current assets other than financial instruments and deferred tax assets.

 |
| table | | AUSTRALIA | ASIA   | TOTAL
------------------- | --------- | ------ | -------
                    | $’000     | $’000  | $’000
30 June 2019        |           |        |
Revenue             | 149,295   | 4,864  | 154,159
Non-current assets1 | 44,061    | 15,899 | 59,960
30 June 2018        |           |        |
Revenue             | 174,776   | 2,155  | 176,931
Non-current assets1 | 49,235    | 15,245 | 64,480 |


| _id | d1b3be13c |
| title |  |
| text | Certain information regarding our initial distribution rights to films initially released in the three fiscal years 2019, 2018 and 2017 is set forth below:

We distribute content in over 50 countries through our own offices located in key strategic locations across the globe. In response to Indian cinemas’ continued growth in popularity across the world, especially in non-English speaking markets, including Germany, Poland, Russia, Southeast Asia and Arabic speaking countries, we offer dubbed and/or subtitled content in over 25 different languages.

In addition to our internal distribution resources, our global distribution network includes relationships with distribution partners, sub-distributors, producers, directors and prominent figures within the Indian film industry and distribution arena.

 |
| table | |      | Year ended March 31, |
-------------------------------------- | ---- | -------------------- | ----
                                       | 2019 | 2018                 | 2017
Global (India and International)       |      |                      |
Hindi films                            | 7    | 10                   | 8
Regional films (excluding Tamil films) | 49   | 3                    | 12
Tamil films                            | 3    | 1                    | 3
International Only                     |      |                      |
Hindi films                            | 7    | 1                    | 3
Regional films (excluding Tamil films) | —    | —                    | —
Tamil films                            | —    | —                    | 12
India Only                             |      |                      |
Hindi films                            | 1    | 3                    | 1
Regional films (excluding Tamil films) | 5    | 6                    | 5
Tamil films                            | —    | 0                    | 1
Total                                  | 72   | 24                   | 45 |


| _id | d1b352572 |
| title |  |
| text | Sales and marketing expenses consist primarily of personnel expenses and costs associated with advertising, marketing events and trade shows.

Sales and marketing expenses decreased by $11.1 million during the year ended June 30, 2019 as compared to the prior fiscal year. This was primarily due to (i) a decrease in commissions expense of $6.6 million, of which approximately $8.9 million is the net result of the Company capitalizing more commission expense under Topic 606, whereas previously, under Topic 605, such costs would have been expensed as incurred, (ii) a decrease in marketing expenses of $5.7 million and (iii) a decrease in travel and

$5.7 million and (iii) a decrease in travel and communication expenses of $1.1 million. These were partially offset by (i) an increase in bad debt expense of $3.5 million as certain low dollar receivables were provided for entirely as they became aged greater than one year. Overall, our sales and marketing expenses, as a percentage of total revenues, decreased to approximately 18% from approximately 19% in the prior fiscal year.

Our sales and marketing labour resources increased by 103 employees, from 1,948 employees at June 30, 2018 to 2,051 employees at June 30, 2019.

 |
| table | increase (decrease)                          | Change between Fiscal increase (decrease) |
-------------------------------------------- | ----------------------------------------- | -------------
(In thousands)                               | 2019 and 2018                             | 2018 and 2017
Payroll and payroll-related benefits         | $(48)                                     | $48,717
Commissions                                  | (6,588)                                   | 16,993
Contract labour and consulting               | (871)                                     | 609
Share-based compensation                     | (752)                                     | (454)
Travel and communication                     | (1,113)                                   | 271
Marketing expenses                           | (5,742)                                   | 3,880
Facilities                                   | 808                                       | 8,373
Bad debt expense                             | 3,519                                     | 4,013
Other miscellaneous                          | (319)                                     | 2,285
Total change in sales and marketing expenses | $(11,106)                                 | $84,687 |


| _id | d1b2e766e |
| title |  |
| text | 17. Income Taxes
Income before income taxes for the Company’s domestic and foreign operations was as follows:

 |
| table | |        | Years Ended June 30, |
-------------------------- | ------ | -------------------- | -----
($ in millions)            | 2019   | 2018                 | 2017
Domestic                   | $204.2 | $140.3               | $56.0
Foreign                    | 11.8   | 19.9                 | 14.2
Income before income taxes | $216.0 | $160.2               | $70.2 |


| _id | d1b32ce30 |
| title |  |
| text | 7. Employee numbers and costs
The average monthly number of employees (including Executive Directors but excluding third-party contractors) employed by the Group was as follows:

 |
| table | | 2019   | 2018
---------------------- | ------ | ------
                       | Number | Number
Customer operations    | 370    | 380
Product and technology | 317    | 312
Corporate              | 115    | 130
Total                  | 802    | 822 |


| _id | d1a713428 |
| title |  |
| text | 5. Balance Sheet Components
Deferred Revenue

Deferred revenue relates to performance obligations for which payments have been received by the customer prior to revenue recognition. Deferred revenue primarily consists of deferred software, or amounts allocated to mobile dashboard and on-line apps and unspecified upgrade rights. Deferred revenue also includes deferred subscription-based services. The deferred software and deferred subscription-based service performance obligations are anticipated to be recognized over the useful life or service periods

over the useful life or service periods of one to eighteen months.

Changes in the total short-term and long-term deferred revenue balance were as follows (in thousands):

 |
| table | |          | December 31, |
------------------------------- | -------- | ------------ | --------
                                | 2019     | 2018         | 2017
Beginning balances              | $36,836  | $42,432      | $49,904
Deferral of revenue             | 45,040   | 40,003       | 46,193
Recognition of deferred revenue | (41,034) | (45,599)     | (53,665)
Ending balances                 | $40,842  | $36,836      | $42,432 |


| _id | d1b3a62ee |
| title |  |
| text | NAVIOS MARITIME HOLDINGS INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in thousands of U.S. dollars — except share data)
NOTE 8: INTANGIBLE ASSETS/LIABILITIES OTHER THAN GOODWILL
Net Book Value of Intangible Assets other than Goodwill as at December 31, 2018

(**) During the year ended December 31, 2018, acquisition costs of $1,150 of favorable lease terms were capitalized as part of the cost of one vessel due to the exercise of the purchase option (See also Note 2(n)). As of December 31, 2018, intangible assets associated with the favorable lease terms included an amount of $31,342 associated with the favorable lease terms of certain charter out contracts of Navios Containers which were recognized as of November 30, 2018 (see Note 3). During the year ended

30, 2018 (see Note 3). During the year ended December 31, 2017, acquisition costs of $10,398 and accumulated amortization of $7,001 of favorable lease terms were considered impaired and were written off resulting in a loss of $3,397 included in the statement of comprehensive (loss)/income within the caption of “Impairment loss/ loss on sale of vessels, net”.

 |
| table | | Acquisition Cost | Accumulated Amortization | Transfer/ Write off | Net Book Value December 31, 2018
------------------------------ | ---------------- | ------------------------ | ------------------- | --------------------------------
Trade name                     | $100,420         | $(47,966)                | $—                  | $52,454
Port terminal operating rights | 53,152           | (11,838)                 | —                   | 41,314
Customer relationships         | 35,490           | (19,520)                 | —                   | 15,970
Favorable lease terms(**)      | 32,492           | (2,143)                  | (1,150)             | 29,199
Total Intangible assets        | $221,554         | $(81,467)                | $(1,150)            | $138,937 |


| _id | d1b3611a8 |
| title |  |
| text | Dividends and Share Repurchases
Following is a summary of the dividends and share repurchases for the fiscal years ended August 31, 2019, 2018, 2017 and 2016 (in thousands):
(1) The difference between dividends declared and dividends paid is due to dividend equivalents for unvested restricted stock units that are paid at the time the awards vest.
(2) Excludes commissions.

(2) Excludes commissions.
We currently expect to continue to declare and pay regular quarterly dividends of an amount similar to our past declarations. However, the declaration and payment of future dividends are discretionary and will be subject to determination by our Board each quarter following its review of our financial performance.

In June 2018, the Board authorized the repurchase of up to $350.0 million of our common stock. As of August 31, 2019, the total amount authorized by the Board of Directors had been repurchased.
In September 2019, the Board authorized the repurchase of up to $600.0 million of our common stock as part of a two-year capital allocation framework. From September 24, 2019 through October 14, 2019, we repurchased 874,475 shares, utilizing a total of $30.8 million of the $600.0 million authorized by the Board.

 |
| table | | Dividends Paid(1) | Share Repurchases(2) | Total
---------------- | ----------------- | -------------------- | ----------
Fiscal year 2016 | $62,436           | $148,185             | $210,621
Fiscal year 2017 | $59,959           | $306,397             | $366,356
Fiscal year 2018 | $57,833           | $450,000             | $507,833
Fiscal year 2019 | $52,004           | $350,000             | $402,004
Total            | $232,232          | $1,254,582           | $1,486,814 |


| _id | d1b39a926 |
| title |  |
| text | Stock-Based Compensation
The Company recognizes stock-based compensation expense in the consolidated statements of operations, based on the department to which the related employee reports, as follows: The Company recognizes stock-based compensation expense in the consolidated statements of operations, based on the department to which the related employee reports, as follows:

The total unrecognized compensation cost related to performance-based restricted stock units as of December 31, 2019 was $3.6 million, and the weighted average period over which these equity awards are expected to vest is 1.6 years. The total unrecognized compensation cost related to unvested stock options as of December 31, 2019 was $2.0 million, and the weighted average period over which these equity awards are expected to vest is 2.30 years.

 |
| table | |         | Years Ended December 31, |
----------------------------------- | ------- | ------------------------ | -------
                                    | 2019    | 2018                     | 2017
                                    |         | (in thousands)           |
Cost of net revenue                 | $577    | $489                     | $332
Research and development            | 16,545  | 17,953                   | 16,190
Selling, general and administrative | 14,938  | 13,279                   | 11,016
Restructuring expense               | —       | —                        | 5,130
                                    | $32,060 | $31,721                  | $32,668 |


| _id | d1b3ab168 |
| title |  |
| text | A reconciliation of the beginning and ending amounts of unrecognized tax benefits (without related interest expense) is as follows (in thousands):

Our effective income tax rates were 9.5%, (84.0)% and 9.3% for the years ended December 31, 2019, 2018 and 2017, respectively. Our effective tax rates were below the statutory rate primarily due to the tax windfall benefits from employee stockbased payment transactions, foreign derived intangible income deductions and research and development tax credits claimed, partially offset by the impact of non-deductible meal and entertainment expenses and state taxes.

We recognize a valuation allowance if, based on the weight of available evidence, both positive and negative, it is more likely than not that some portion, or all, of net deferred tax assets will not be realized. Due to the uncertainty of realization of  and development tax credits totaling $0.3 million, we established a valuation allowance of $0.3 million during the second quarter of 2019, which remained at $0.3 million as of December 31, 2019. As of December 31, 2018, based on our historical and expected

31, 2018, based on our historical and expected future taxable earnings, we believed it was more likely than not that we would realize all of the benefit of the existing deferred tax assets. Accordingly, we did not record a valuation allowance as of December 31, 2018.

We apply guidance for uncertainty in income taxes that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, this guidance permits us to recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is more likely than not to be realized upon settlement. We recorded unrecognized tax benefits of $0.6 million, $0.8 million and $1.0 million for research and

$0.8 million and $1.0 million for research and development tax credits claimed during the years ended December 31, 2019, 2018 and 2017, respectively.

As of December 31, 2019 and 2018, we accrued $0.2 million and $0.1 million of total interest related to unrecognized tax benefits, respectively. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense.

We are not aware of any events that make it reasonably possible that there would be a significant change in our unrecognized tax benefits over the next twelve months. Our cumulative liability for uncertain tax positions was $3.1 million and $2.8 million as of December 31, 2019 and 2018, respectively, and if recognized, would reduce our income tax expense and the effective tax rate.

We file income tax returns in the United States and Canada. We are no longer subject to U.S. income tax examinations for years prior to 2016, with the exception that operating loss carryforwards generated prior to 2016 may be subject to tax audit adjustment. We are generally no longer subject to state and local income tax examinations by tax authorities for years prior to 2016.

As of December 31, 2019, we had federal net operating loss carryforwards of $4.9 million, which are scheduled to begin to expire in 2030. As of December 31, 2019, we had state net operating loss carryforwards of $1.7 million, which are scheduled to begin to expire in 2027. As of December 31, 2019, we had federal research and development tax credit carryforwards of $5.2 million, which are scheduled to begin to expire in 2038. As of December 31, 2019, we had state research and development tax credit

we had state research and development tax credit carryforwards of $4.3 million, which are scheduled to begin to expire in 2021. The federal net operating loss carryforward arose in connection with the 2013 acquisition of EnergyHub. Utilization of net operating loss carryforwards may be subject to annual limitations due to ownership change limitations as provided by the Internal Revenue Code of 1986, as amended.

 |
| table | |        | Year Ended December 31, |
----------------------------------------------------------- | ------ | ----------------------- | ------
                                                            | 2019   | 2018                    | 2017
Beginning balance                                           | $2,801 | $1,973                  | $681
Additions based on tax positions of the current year        | 718    | 857                     | 718
Additions based on tax positions of prior year              | 18     | 147                     | 373
Decreases based on tax positions of prior year              | (253)  | —                       | —
Additions resulting from acquisitions                       | —      | —                       | 277
Decreases due to lapse of applicable statute of limitations | (219)  | (176)                   | (76)
Ending balance                                              | $3,065 | $2,801                  | $1,973 |


| _id | d1b37629c |
| title |  |
| text | Note 3 – Net Income per Share
Reconciliation of net income per common share:

 |
| table | |                    | Fiscal Year Ended  |
----------------------------------------------------------- | ------------------ | ------------------ | -----------------
                                                            | December 27, 2019  | December 28, 2018  | December 29, 2017
Numerator:                                                  |                    |                    |
Net income                                                  | $24,193            | $20,402            | $14,366
Add effect of dilutive securities                           |                    |                    |
Interest on convertible notes, net of tax                   | 207                | 362                | 536
Adjusted net income                                         | $24,400            | $20,764            | $14,902
Denominator:                                                |                    |                    |
Weighted average basic common shares outstanding            | 29,532,342         | 28,703,265         | 26,118,482
Dilutive effect of stock options and unvested common shares | 211,050            | 270,520            | 68,670
Dilutive effect of convertible notes                        | 329,946            | 705,134            | 1,237,374
Weighted average diluted common shares outstanding          | 30,073,338         | 29,678,919         | 27,424,526 |


| _id | d1b2e373a |
| title |  |
| text | NOTE 14 – EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method. The following table sets forth the computation of basic and diluted earnings (loss) per share (in

basic and diluted earnings (loss) per share (in thousands, except per share amounts):

All outstanding stock options and restricted stock-based awards in the amount of 1.0 million and 1.2 million, respectively, were excluded from the computation of diluted earnings per share for the fiscal year ended February 28, 2017 because the effect of inclusion would be antidilutive. Shares subject to anti-dilutive stock options and restricted stock-based awards of 1.9 million and 0.2 million for the fiscal years ended February 28, 2019 and 2018, respectively, were excluded from the calculations of

were excluded from the calculations of diluted earnings per share for the years then ended.

We have the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the Notes. It is our intent to settle the principal amount of the convertible senior notes with cash, and therefore, we use the treasury stock method for calculating any potential dilutive effect of the conversion option on diluted net income (loss) per share. From the time of the issuance of the Notes, the average market price of our common stock has been less than the

price of our common stock has been less than the initial conversion price of the Notes, and consequently no shares have been included in diluted earnings per share for the conversion value of the Notes.

 |
| table | |         | Year Ended February 28, |
-------------------------------------------------------------- | ------- | ----------------------- | --------
                                                               | 2019    | 2018                    | 2017
Net income (loss)                                              | $18,398 | $16,617                 | $(7,904)
Basic weighted average number of common shares outstanding     | 34,589  | 35,250                  | 35,917
Effect of stock options and restricted stock units computed on |         |                         |
treasury stock method                                          | 705     | 889                     | -
Diluted weighted average number of common shares outstanding   | 35,294  | 36,139                  | 35,917
Earnings (loss) per share:                                     |         |                         |
Basic                                                          | $0.53   | $0.47                   | $(0.22)
Diluted                                                        | $0.52   | $0.46                   | $(0.22) |


| _id | d1b337f7e |
| title |  |
| text | NOTE 9. GOODWILL AND INTANGIBLES
A summary of goodwill activity follows (in thousands).

 |
| table | Year Ended December 31        |               |
----------------------------- | ------------- | -------------
                              | 2019          | 2018
Goodwill, beginning of period | $       3,178 | $           -
Golden Ridge acquisition      | -             | 3,178
MGI acquistion                | 737           | -
Goodwill, end of period       | $3,915        | $3,178 |


| _id | d1b3a0eb6 |
| title |  |
| text | 9. Pensions continued
Defined benefit plans continued
iii) Amount, timing and uncertainty of future cash flows continued
The liability has the following duration and maturity:

 |
| table | | 2019  | 2018
------------------------------------------------------------------------ | ----- | -----
Weighted average duration of the defined benefit obligation (years)      | 14    | 15
Maturity analysis of benefit payments (non-discounted amounts) $ million |       |
Maturity ≤ 1 year                                                        | 10.8  | 10.4
Maturity > 1 ≤ 5 years                                                   | 45.6  | 43.2
Maturity > 5 ≤ 10 years                                                  | 61.7  | 119.0
Maturity > 10 ≤ 20 years                                                 | 114.3 | 103.0
Maturity > 20 ≤ 30 years                                                 | 81.7  | 68.0
Maturity > 30 years                                                      | 63.0  | 42.9 |


| _id | d1b3136e2 |
| title |  |
| text | FRT Term Loan
On October 25, 2019, we entered into a $23.4 million three-year credit facility loan agreement (the "FRT Term Loan") with HSBC Trinkaus & Burkhardt AG, Germany, to fund the acquisition of FRT GmbH, which we acquired on October 9, 2019. See Note 4 for further details of the acquisition.

The FRT Term Loan bears interest at a rate equal to the Euro Interbank Offered Rate ("EURIBOR") plus 1.75 % per annum and will be repaid in quarterly installments of approximately $1.9 million plus interest beginning January 25, 2020.
The obligations under the FRT Term Loan are fully and unconditionally guaranteed by FormFactor, Inc.

The Credit Facility contains negative covenants customary for financing of this type, including covenants that place limitations on the incurrence of additional indebtedness, the creation of liens, the payment of dividends; dispositions; fundamental changes, including mergers and acquisitions; loans and investments; sale leasebacks; negative pledges; transactions with affiliates; changes in fiscal year; sanctions and anti-bribery laws and regulations, and modifications to charter documents in a manner

modifications to charter documents in a manner materially adverse to the Lenders.

The FRT Term Loan also contains affirmative covenants and representations and warranties customary for financing of this type.
Future principal and interest payments on our term loans as of December 28, 2019, based on the interest rate in effect at that date were as follows (in thousands):
(1) Represents our minimum interest payment commitments at 1.35% per annum for the FRT Term Loan and 3.71% per annum for the CMI Term Loan.

 |
| table | |         | Payments Due In Fiscal Year |        |
--------------------------------- | ------- | --------------------------- | ------ | -------
                                  | 2020    | 2021                        | 2022   | Total
Term loans - principal payments   | $42,838 | $7,838                      | $7,838 | $58,514
Term loans - interest payments(1) | 777     | 155                         | 47     | 979
Total                             | $43,615 | $7,993                      | $7,885 | $59,493 |


| _id | d1b37f0ae |
| title |  |
| text | Revenues, Cost of Revenues and Gross Margin by Product Type
1) License: Our license revenue can be broadly categorized as perpetual licenses, term licenses and subscription licenses, all of which are deployed on the customer’s premises (on-premise). Our license revenues are impacted by the strength of general economic and industry conditions, the competitive strength of our software products, and our acquisitions. Cost of license revenues consists primarily of royalties payable to third parties.

License revenues decreased by $9.4 million or 2.2% during the year ended June 30, 2019 as compared to the prior fiscal year; up 0.4% after factoring the impact of $11.2 million of foreign exchange rate changes. Geographically, the overall change was attributable to an increase in Americas of $8.2 million, offset by a decrease in Asia Pacific of $10.6 million and a decrease in EMEA of $7.0 million.

During Fiscal 2019, we closed 153 license deals greater than $0.5 million, of which 49 deals were greater than $1.0 million, contributing approximately $144.1 million of license revenues. This was compared to 140 deals greater than $0.5 million during Fiscal 2018, of which 58 deals were greater than $1.0 million, contributing $152.2 million of license revenues.

Cost of license revenues increased by $0.7 million during the year ended June 30, 2019 as compared to the prior fiscal year. The gross margin percentage on license revenues remained at approximately 97%.

For illustrative purposes only, had we accounted for revenues under proforma Topic 605, license revenues would have been $390.4 million for the year ended June 30, 2019, which would have been lower by approximately $47.1 million or 10.8% as compared to the prior fiscal year; and would have been lower by 8.4% after factoring the impact of $10.4 million of foreign exchange rate changes. Geographically, the overall change would have been attributable to a decrease in Americas of $17.7 million, a decrease in

in Americas of $17.7 million, a decrease in EMEA of $15.7 million and a decrease in Asia Pacific of $13.7 million.

The $37.7 million difference between license revenues recognized under Topic 606 and those proforma Topic 605 license revenues described above is the result of timing differences, where under Topic 605, revenues would have been deferred and recognized over time, but under Topic 606 these revenues are recognized up front. For more details, see note 3 "Revenues" to our Consolidated Financial Statements.

 |
| table | |          |                             | Year Ended June 30, |                            |
--------------------------------- | -------- | --------------------------- | ------------------- | -------------------------- | --------
(In thousands)                    | 2019     | Change increase (decrease)) | 2018                | Change increase (decrease) | 2017
License Revenues:                 |          |                             |                     |                            |
Americas                          | $215,871 | $8,216                      | $207,655            | $29,257                    | $178,398
EMEA                              | 163,622  | (7,009)                     | 170,631             | 23,788                     | 146,843
Asia Pacific                      | 48,599   | (10,627)                    | 59,226              | 15,323                     | 43,903
Total License Revenues            | 428,092  | (9,420)                     | 437,512             | 68,368                     | 369,144
Cost of License Revenues          | 14,347   | 654                         | 13,693              | 61                         | 13,632
GAAP-based License Gross Profit   | $413,745 | $(10,074)                   | $423,819            | $68,307                    | $355,512
GAAP-based License Gross Margin % | 96.6%    |                             | 96.9%               |                            | 96.3%
% License Revenues by Geography:  |          |                             |                     |                            |
Americas                          | 50.4%    |                             | 47.5%               |                            | 48.3%
EMEA                              | 38.2%    |                             | 39.0%               |                            | 39.8%
Asia Pacific                      | 11.4%    |                             | 13.5%               |                            | 11.9% |


| _id | d1b32f90a |
| title |  |
| text | Other Key Financial Measures
The following is a summary of our other key financial measures for fiscal 2019 compared with fiscal 2018 (in millions):
(1) Deferred revenue decreased primarily due to the adoption of ASC 606 in the beginning of our first quarter of fiscal 2019. See Note 2 to the Consolidated Financial Statements for the impact of this adoption.

 |
| table | | Fiscal 2019 | Fiscal 2018
---------------------------------------------------- | ----------- | -----------
Cash and cash equivalents and investments            | $33,413     | $46,548
Cash provided by operating activities                | $15,831     | $13,666
Deferred revenue (1)                                 | $18,467     | $19,685
Repurchases of common stock—stock repurchase program | $20,577     | $17,661
Dividends                                            | $5,979      | $5,968
Inventories                                          | $1,383      | $1,846 |


| _id | d1b35a416 |
| title |  |
| text | Non-GAAP Financial Measures
Management believes that certain non-GAAP financial measures may be useful to investors in certain instances to provide additional meaningful comparisons between current

results and results in prior operating periods. Adjusted earnings before interest, taxes, depreciation, amortization and stock-based compensation (“Adjusted EBITDA”) is a

metric used by management and frequently used by the financial community. Adjusted EBITDA from operations provides insight into an organization’s operating trends and

facilitates comparisons between peer companies, since interest, taxes, depreciation, amortization and stock-based compensation can differ greatly between organizations as a

result of differing capital structures and tax strategies. Adjusted EBITDA from operations is one of the measures used for determining our debt covenant compliance. Adjusted

EBITDA from operations excludes certain items that are unusual in nature or not comparable from period to period. While management believes that non-GAAP measurements

are useful supplemental information, such adjusted results are not intended to replace our GAAP financial results. Adjusted EBITDA from operations is not, and should not be

considered, an alternative to net income (loss), operating income (loss), or any other measure for determining operating performance or liquidity, as determined under

accounting principles generally accepted in the United States (GAAP). In assessing the overall health of its business for the years ended December 31, 2019 and 2018, the

Company excluded items in the following general categories described below:

Stock-based compensation: The Company believes that because of the variety of equity awards used by companies, varying methodologies for determining stock-based compensation and the assumptions and estimates involved in those determinations, the exclusion of non-cash stock-based compensation enhances the ability of management and investors to understand the impact of non-cash stock-based compensation on our operating results. Further, the Company believes that excluding stockbased compensation expense

that excluding stockbased compensation expense allows for a more transparent comparison of its financial results to the previous year.

RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA FOR THE YEARS ENDED DECEMBER 31,
Liquidity and Capital Resources
For the year ended December 31, 2019, the Company reported a net loss of $1,934,133 and had cash used in operating activities of $1,875,846, and ended the year with an

accumulated deficit of $125,105,539 and total current assets in excess of current liabilities of $4,187,449. At December 31, 2019, the Company had $3,300,600 of cash and

approximately $424,000 of availability on its credit facility. The credit facility is a $2,000,000 line of credit, which is subject to a borrowing base calculation based on the

Company’s eligible accounts receivable and eligible inventory each- multiplied by an applicable advance rate, with an overall limitation tied to the Company’s eligible accounts

receivable. As of December 31, 2019, we had borrowing capacity of $1,102,917 and an outstanding balance of $624,347, resulting in the approximate availability of $424,000

on the credit facility. During the twelve-month period between January 1, 2019 and December 31, 2019, the Company’s cash balance decreased from $4,678,891 to $3,300,600,

or approximately $115,000 per month. In comparison, during the twelve-month period between January 1, 2018 and December 31, 2018, the Company’s cash balance decreased

from $8,385,595 to $4,678,891, or approximately $309,000 per month. This improvement is the result of improved revenues and cost management efforts.

 |
| table | | 2019         | 2018
------------------------------ | ------------ | ------------
Net loss                       | $(1,934,133) | $(3,016,750)
Interest (income) expense, net | 53,139       | (13,622)
Income tax provision (benefit) | (100,363)    | 9,623
Depreciation and amortization  | 66,082       | 67,107
EBITDA                         | (1,915,275)  | (2,953,642)
Adjustments:                   |              |
Stock-based compensation       | 7,261        | 6,404
Adjusted EBITDA                | $(1,908,014) | $(2,947,238) |


| _id | d1b3b2576 |
| title |  |
| text | The following table presents unaudited supplemental pro forma results for fiscal 2019 and 2018 as if both the Grakon acquisition had occurred as of the beginning of fiscal 2018 and the Pacific Insight acquisition had occurred as of the beginning of fiscal 2017. The unaudited pro forma information is presented for information purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at such times.

The unaudited pro forma results presented below primarily include amortization charges for acquired intangible assets, depreciation adjustments for property, plant and equipment that has been revalued, interest expense adjustments due to an increased debt level, adjustments for certain acquisition-related charges and related tax effects.

 |
| table | | Fiscal Year Ended |
--------------------- | ----------------- | --------------
(Dollars in Millions) | April 27, 2019    | April 28, 2018
Revenues              | $1,073.3          | $1,095.0
Net Income            | $106.4            | $70.5 |


| _id | d1b36357a |
| title |  |
| text | ITEM 6. SELECTED FINANCIAL DATA
The selected financial data presented below has been derived from our audited consolidated financial statements. This data should be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8. Financial Statements and Supplementary Data” of this Annual Report.

(1) We elected to early adopt Accounting Standards Update (“ASU”) 2016-09 “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) in 2016, which requires us, among other things, to prospectively record excess tax benefits as a reduction of the provision for income taxes in the consolidated statement of operations, whereas they were previously recognized in equity.

(2) We retrospectively adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” in 2018. As a result, we have adjusted balances for 2017 and 2016. We have not adjusted 2015 for ASU 2014-09.

 |
| table | (in thousands, except per share amounts)            | 2019       | 2018      | 2017    | 2016    | 2015
--------------------------------------------------- | ---------- | --------- | ------- | ------- | -------
Consolidated Statements of Operations Data (1) (2): |            |           |         |         |
Revenue:                                            |            |           |         |         |
Perpetual license                                   | $80,015    | 109,863   | 132,883 | 145,053 | 166,305
Term license                                        | 199,433    | 178,256   | 206,411 | 152,231 | 109,283
Maintenance                                         | 280,580    | 263,875   | 242,320 | 218,635 | 202,802
Cloud                                               | 133,746    | 82,627    | 51,097  | 40,647  | 30,626
Consulting                                          | 217,609    | 256,960   | 255,756 | 205,663 | 173,679
Total revenue                                       | $911,383   | 891,581   | 888,467 | 762,229 | 682,695
(Loss) income from operations                       | $(134,878) | $(17,032) | $93,177 | $50,644 | $64,661
Net (loss) income                                   | $(90,433)  | $10,617   | $98,548 | $45,015 | $36,322
(Loss) earnings per share                           |            |           |         |         |
Basic                                               | $(1.14)    | $0.14     | $1.27   | $0.59   | $0.47
Diluted                                             | $(1.14)    | $0.13     | $1.19   | $0.56   | $0.46
Cash dividends declared per common share            | $0.12      | $0.12     | $0.12   | $0.12   | $0.12 |


| _id | d1b38e400 |
| title |  |
| text | Net revenue: Net revenue from our Broadcasting segment for the year ended December 31, 2019 decreased $3.6 million to $41.8 million from $45.4 million for the year ended December 31, 2018. During the second half of 2018, the Broadcasting segment undertook targeted cost cutting measures, primarily at HC2 Network Inc. ("Network") where Broadcasting exited certain local business operations and made strategic changes to the programming mix.

The decrease in net revenue was primarily due to lower local advertising sales as a result of such restructuring. This was partially offset by higher broadcast stations revenue associated with stations acquired during and subsequent to the comparable period.

Cost of revenue: Cost of revenue from our Broadcasting segment for the year ended December 31, 2019 decreased $5.0 million to $23.5 million from $28.5 million for the year ended December 31, 2018. The overall decrease was primarily driven by a reduction in audience measurement costs as a result of the exit of certain local markets which were unprofitable at Network and a decrease in programming costs due to changes in the programming mix referenced above, partially offset by higher cost of revenues

partially offset by higher cost of revenues associated with the growth of the Broadcast stations subsequent to the prior year.

Selling, general and administrative: Selling, general and administrative expenses from our Broadcasting segment for the year ended December 31, 2019 decreased $10.9 million to $26.4 million from $37.3 million for the year ended December 31, 2018. The decrease was primarily due to a reduction in compensation costs, mainly driven by the cost cutting measures discussed above and lower legal expenses related to elevated acquisition-related expenses incurred in the prior period.

Depreciation and amortization: Depreciation and amortization from our Broadcasting segment for the year ended December 31, 2019 increased $3.0 million to $6.3 million from $3.3 million for the year ended December 31, 2018. The increase was driven by additional amortization of fixed assets and definite lived intangible assets which were acquired as part of transactions subsequent to the comparable period.

Other operating (income) expense: Other operating (income) expense from our Broadcasting segment for the year ended December 31, 2019 increased $3.3 million to income of $3.0 million from expense of $0.3 million for the year ended December 31, 2018. The increase was driven by reimbursements from the Federal Communications Commission (the “FCC”), partially offset by the impairment of FCC licenses during 2019 resulting from strategic discussions to abandon certain licenses.

The FCC requires certain television stations to change channels and/or modify their transmission facilities. The U.S. Congress passed legislation which provides the FCC with a fund to reimburse all reasonable costs incurred by stations operating under full power and Class A licenses and a portion of the costs incurred by stations operating under a low power license that are reassigned to new channels.

 |
| table | |          | Years Ended December 31, |
----------------------------------- | -------- | ------------------------ | ---------------------
                                    | 2019     | 2018                     | Increase / (Decrease)
Net revenue                         | $ 41.8   | $ 45.4                   | $ (3.6)
Cost of revenue                     | 23.5     | 28.5                     | (5.0)
Selling, general and administrative | 26.4     | 37.3                     | (10.9)
Depreciation and amortization       | 6.3      | 3.3                      | 3.0
Other operating (income) expense    | (3.0)    | 0.3                      | (3.3)
Loss from operations                | $ (11.4) | $ (24.0)                 | $ 12.6 |


| _id | d1a734e2a |
| title |  |
| text | Expected Future Rate
Over the medium-term the tax rate is likely to stabilise as the integration of acquisitions in higher rate jurisdictions are completed. However, the tax rate may fluctuate if business changes are implemented in response to legislation arising from the OECD’s Base Erosion & Profit Shifting Project. Legislative change in key territories is being monitored and acted upon.

The Group does not anticipate any significant impact on the future tax charge, liabilities or assets, as a result of the triggering of Article 50(2) of the Treaty on European Union, but cannot rule out the possibility that, for example, a failure to reach satisfactory arrangements for the UK’s future relationship with the European Union, could have an impact on such matters.

The European Commission has concluded its investigation into the UK’s controlled foreign company (“CFC”) rules. The CFC rules levy a charge on foreign entities controlled by the UK that are subject to a lower rate of tax, however there is currently an exemption available for 75% of this charge if the activities being undertaken by the CFC relate to financing. The EC concluded that this exemption is in breach of EU State Aid rules. However, whilst we are awaiting further detail from HMRC, the position has

further detail from HMRC, the position has not changed from a tax accounting perspective. The risk is possible, but not probable. UK ministers have yet to decide on whether to pursue an appeal. No provision for this potential liability of $3.6M has been provided in these Consolidated Financial Statements as it is not clear what, if any, the ultimate financial result will be.

Deferred tax assets and liabilities are attributable to the following:
As at 31 March 2019 the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred tax liabilities have been recognised was $Nil (2018: $Nil). No liability has been recognised because the Group is in a position to control the reversal of temporary differences and it is probable that such differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability settled, based on tax rates that have been enacted or substantively enacted at the reporting date.

 |
| table | | 31 March 2019 | 31 March 2018 Restated See note 2
---------------------------------------------------------- | ------------- | ---------------------------------
                                                           | $M            | $M
Deferred income tax assets in relation to:                 |               |
Deferred revenue                                           | 40.9          | 40.0
Tax value of carry forward losses of UK subsidiaries       | 37.0          | 24.2
Tax value of carry forward losses of overseas subsidiaries | 6.2           | 6.4
Advanced capital allowances                                | 7.5           | 7.7
Share-based payments                                       | 11.6          | 27.7
Other temporary differences                                | 11.8          | 14.7
Total                                                      | 115.0         | 120.7
Deferred income tax liabilities in relation to:            |               |
Intangible assets                                          | 6.1           | 5.9
Deferred selling cost                                      | 8.5           | 8.5
Other temporary differences                                | -             | 0.1
Total                                                      | 14.6          | 14.5 |


| _id | d1b3acd6a |
| title |  |
| text | Item 6. Selected Financial Data
The following selected data is derived from our Consolidated Financial Statements. This data should be read in conjunction with the Consolidated Financial Statements and notes thereto incorporated into Item 8, “Financial Statements and Supplementary Data” and with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
(2) Working capital is defined as current assets minus current liabilities.

 |
| table | |             |             | August 31,     |             |
----------------------------------------------------------- | ----------- | ----------- | -------------- | ----------- | ----------
                                                            | 2019        | 2018        | 2017           | 2016        | 2015
                                                            |             |             | (in thousands) |             |
Consolidated Balance Sheets Data:                           |             |             |                |             |
Working capital(2)                                          | $(187,020)  | $319,050    | $(243,910)     | $280,325    | $191,168
Total assets                                                | $12,970,475 | $12,045,641 | $11,095,995    | $10,322,677 | $9,591,600
Current installments of notes payable and long-term debt    | $375,181    | $25,197     | $444,255       | $44,689     | $321,964
Notes payable and long-term debt, less current installments | $2,121,284  | $2,493,502  | $1,606,017     | $2,046,655  | $1,308,663
Total Jabil Inc. stockholders’ equity                       | $1,887,443  | $1,950,257  | $2,353,514     | $2,438,171  | $2,314,856
Common stock shares outstanding                             | 153,520     | 164,588     | 177,728        | 186,998     | 192,068 |


| _id | d1b3533b4 |
| title |  |
| text | Results of Operations

We operate a cybersecurity business, focused on licensing and enforcement, providing advisory services, developing mobile security applications, and investing in emerging cybersecurity technologies and intellectual property. The following table summarizes our results of operations for the periods presented and as a percentage of our total revenue for those periods based on our consolidated statement of operations data. The year to year comparison of results of operations is not necessarily indicative of

of operations is not necessarily indicative of results of operations for future periods.

 |
| table | |         |              | For the Years Ended December 31,  |              |        |
--------------------------------------- | ------- | ------------ | --------------------------------- | ------------ | ------ | ------------
                                        | 2019    |              | 2018                              |              | 2017   |
                                        | Amount  | % of Revenue | Amount                            | % of Revenue | Amount | % of Revenue
                                        |         |              | (In millions, except percentages) |              |        |
Revenues                                | $13.2   | 100%         | $82.3                             | 100%         | $50.5  | 100%
Cost of revenues                        | 1.9     | 14%          | 15.3                              | 19%          | 6.0    | 12%
Gross profit                            | 11.3    | 86%          | 67.0                              | 81%          | 44.5   | 88%
Operating expenses:                     |         |              |                                   |              |        |
Selling, general and administrative (1) | 31.7    | 240%         | 32.2                              | 39%          | 28.6   | 57%
Research and development                | 2.0     | 15%          | 2.1                               | 2%           | 1.5    | 3%
Total operating expenses                | 33.7    | 225%         | 34.3                              | 41%          | 30.1   | 60%
Other income (expense)                  | (0.3)   | (2)%         | (4.0)                             | (5)%         | 2.2    | 4%
Income (loss) before income taxes       | (22.7)  | (172%)       | 28.7                              | 35%          | 16.6   | 33%
Income tax provision (benefit)          | (6.2)   | (47%)        | 8.0                               | 10%          | (6.2)  | (12)%
Net income (loss)                       | $(16.5) | (125)%       | $20.7                             | 25%          | $22.8  | 45%
(1) Includes stock based compensation   | $1.0    | 8%           | $1.6                              | 2%           | $0.8   | 2% |


| _id | d1b3ba096 |
| title |  |
| text | 4. Restructuring Activity
From time to time, the Company approves and implements restructuring plans as a result of internal resource alignment, and cost saving measures. Such restructuring plans include terminating employees, vacating certain leased facilities, and cancellation of contracts.
The following table presents the activity related to the plans, which is included in restructuring charges in the consolidated statements of operations:

Included in employee separation expenses for the year ended December 31, 2017 is stock-based compensation from the acceleration of certain stock-based awards the Company assumed from Exar due to existing change in control provisions triggered upon termination or diminution of authority of former Exar executives of $5.1 million.
Lease related and other charges primarily related to exiting certain redundant facilities.

 |
| table | |        | Years Ended December 31, |
---------------------------- | ------ | ------------------------ | ------
                             | 2019   | 2018                     | 2017
                             |        | (in thousands)           |
Employee separation expenses | $1,150 | $2,094                   | $8,353
Lease related expenses       | 1,301  | 1,608                    | 1,025
Other                        | 185    | 136                      | 146
                             | $2,636 | $3,838                   | $9,524 |


| _id | d1a741756 |
| title |  |
| text | * Represents beneficial ownership of less than 1% of our outstanding shares of common stock.
(1) Consists of (a) 16,982 shares of our common stock and (b) 36,837 shares of our common stock issuable upon exercise of stock options exercisable within 60 days of February 15, 2020.

(2) Consists of (a) 37,011 shares of our common stock held directly by the Hutchison Family Trust, of which Mr. Hutchison is a co-trustee, (b) 7,028 shares of our common stock held by Glasgow Investments, LLC and (c) 44,166 shares of our common stock issuable to Mr. Hutchison upon exercise of stock options exercisable within 60 days of February 15, 2020. Mr. Hutchison is a managing member of Glasgow Investments, LLC and possesses the power to direct the voting and disposition of the shares held by Glasgow

and disposition of the shares held by Glasgow Investments, LLC and as such may be deemed to beneficially own the shares of our common stock held by Glasgow Investments, LLC.

(3) Consists of 16,016 shares of our common stock issuable upon exercise of stock options exercisable within 60 days of February 15, 2020.

(4) Consists of (a) 235,643 shares of our common stock held directly by the Lien Revocable Trust dated 7/8/2003, of which Mr. Lien is a co-trustee, (b) 3,658 shares of our common stock held individually by Mr. Lien, (c) 62,919 shares of our common stock issuable to Mr. Lien upon exercise of stock options exercisable within 60 days of February 15, 2020, (d) 12,182 shares of our common stock held by the Chris Lien 2013 Annuity Trust, and (e) 12,182 shares of our common stock held by the Rebecca Lien 2013

of our common stock held by the Rebecca Lien 2013 Annuity Trust.

(5) Consists of 36,888 shares of our common stock issuable upon exercise of stock options exercisable within 60 days of February 15, 2020.
(6) Consists of (a) 76,346 shares of our common stock, (b) 29,435 shares of our common stock issuable upon exercise of stock options exercisable within 60 days of February 15, 2020, and (c) 11,250 restricted stock units subject to vesting within 60 days of February 15, 2020.

(7) Mr. Kinnish resigned as our Chief Financial Officer as of December 5, 2019. Consists of (a) 9,079 shares of our common stock, and (b) 53,068 shares of our common stock issuable upon exercise of stock options exercisable within 60 days of February 15, 2020.

(8) Includes (a) 410,111 shares of common stock, (b) 279,329 shares issuable upon exercise of stock options exercisable within 60 days of February 15, 2020, and (c) 11,250 shares of our common stock subject to vesting of restricted stock unit awards within 60 days of February 15, 2020.

(9) Based on information contained in a Schedule 13G/A filed with the SEC by Benchmark Capital on February 12, 2020. Consists of (a) 456,916 shares of our common stock held by Benchmark Capital Partners VI, L.P. (“BCP VI”) and (b) 28,576 shares of our common stock held by Benchmark Founders’ Fund VI, L.P. (“BFF VI”), (c) 18,754 shares held by Benchmark Founders’ Fund VI-B L.P. (“BFF VI-B”) and (d) 49,256 shares of our common stock held in nominee form for the benefit of persons associated with Benchmark

the benefit of persons associated with Benchmark Capital Management Co. VI, L.L.C. (“BCMC VI”). BCMC VI is the general partner of BCP VI, BFF VI and BFF VI-B and may be deemed to have sole voting and investment power over the shares held by BCP VI, BFF VI and BFF VI-B. Certain individual members of BCMC VI, including Bruce W. Dunlevie, a member of our Board until February 2017, may be deemed to have shared voting and investment power over the shares held by BCP VI, BFF VI and BFF VI-B. The address for each

BCP VI, BFF VI and BFF VI-B. The address for each Benchmark reporting entity is 2965 Woodside Road, Woodside, California 94062. 2017, may be deemed to have shared voting and investment power over the shares held by BCP VI, BFF VI and BFF VI-B. The address for each Benchmark reporting entity is 2965 Woodside Road, Woodside, California 94062.

(10)  Based on information contained in a Schedule 13G filed with the SEC by DAG Ventures IV-QP, L.P. and its affiliates on February 11, 2014 and adjusted here for the 1-for-7 reverse stock split effectuated on October 5, 2017. Consists of 444,674 shares of our common stock held by DAG Ventures IV-QP, L.P. (“DAVG IV-QP”), (b) 51,356 shares of our common stock held by DAG Ventures IV-A, LLC (“DAG IV-A”) and (c) 46,994 shares of our common stock held by DAG Ventures IV, L.P. (“DAG IV”). DAG Ventures

by DAG Ventures IV, L.P. (“DAG IV”). DAG Ventures Management IV, LLC (“DAG IV LLC”) serves as the general partner of DAG IV-QP and DAG IV. As such, DAG IV LLC possesses power to direct the voting and disposition of the shares of our common stock owned by DAG IV-QP and DAG IV and may be deemed to have indirect beneficial ownership of the shares of our common stock held by DAG IV-QP and DAG IV. DAG IV LLC does not own any of our securities directly. R. Thomas Goodrich, John J. Caddo, Greg Williams, Young J.

Goodrich, John J. Caddo, Greg Williams, Young J. Chung and Nick Pianism are managing directors of DAG IV LLC and DAG IV-A and possess power to direct the voting and disposition of the shares owned by DAG IV-QP, DAG IV and DAG IV-A and may be deemed to have indirect beneficial ownership of the shares held by DAG IV-QP, DAG IV and DAG IV-A. The address for DAG IV-QP, DAG IV, DAG IV- A and DAG IV LLC is 251 Lytton Avenue, Suite 200, Palo Alto, CA 94301.

(11)  Based on information contained in a Schedule 13G filed with the SEC by ESW Capital, LLC (“ESW”) on December 28, 2018. ESW owns 579,000 shares. Joseph A. Liemandt is the sole voting member of ESW and may be deemed to have indirect beneficial ownership of the shares held by ESW. The address for ESW and Mr. Liemandt is 401 Congress Avenue, Suite 2650, Austin, TX 78701.

 |
| table | Name of Beneficial Owner                             | Number of Shares Beneficially Owned | Percent Owned
---------------------------------------------------- | ----------------------------------- | -------------
Directors and Named Executive Officers               |                                     |
L. Gordon Crovitz(1)                                 | 53,819                              | *
Donald P. Hutchison(2)                               | 88,205                              | 1.3
Brian Kinion(3)                                      | 16,016                              | *
Christopher Lien(4)                                  | 326,584                             | 4.7
Daina Middleton(5)                                   | 36,888                              | *
Wister Walcott(6)                                    | 117,031                             | 1.7
Robert Bertz                                         | —                                   | *
Bradley Kinnish(7)                                   | 62,147                              | *
All officers and directors as a group (8 persons)(8) | 700,690                             | 9.9
5% or Greater Stockholders                           |                                     |
Benchmark Capital Partners VI, L.P(9)                | 553,502                             | 8.1
Entities affiliated with DAG Ventures(10)            | 543,024                             | 8.0
ESW Capital, LLC (11)                                | 579,000                             | 8.5 |


| _id | d1b35db98 |
| title |  |
| text | Adjusted EBITDA. Adjusted EBITDA represents our net loss before interest and investment income, net and interest expense, provision for income taxes, depreciation and amortization expense, loss on extinguishment of convertible notes and stock-based compensation expense. We do not consider these items to be indicative of our core operating performance. The items that are non-cash include depreciation and amortization expense and stock-based compensation expense.

Adjusted EBITDA is a measure used by management to understand and evaluate our core operating performance and trends and to generate future operating plans, make strategic decisions regarding the allocation of capital and invest in initiatives that are focused on cultivating new markets for our solutions. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates comparisons of our operating performance on a period-to-period basis.

Adjusted EBITDA is not a measure calculated in accordance with GAAP. We believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. Nevertheless, use of adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP.

Some of these limitations are: (1) although depreciation and amortization are non-cash charges, the capitalized software that is amortized will need to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (2) adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

(3) adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; (4) adjusted EBITDA does not reflect tax payments or receipts that may represent a reduction or increase in cash
available to us; and (5) other companies, including companies in our industry, may calculate adjusted EBITDA or similarly titled measures
differently, which reduces the usefulness of the metric as a comparative measure.

Because of these and other limitations, you should consider adjusted EBITDA alongside our other GAAP-based financial performance measures, net loss and our other GAAP financial results. The following table presents a reconciliation of adjusted EBITDA to net loss, the most directly comparable GAAP measure, for each of the periods indicated (in thousands):

 |
| table | |           | Year Ended December 31, |
--------------------------------------------- | --------- | ----------------------- | ---------
                                              | 2019      | 2018                    | 2017
Net loss                                      | $(52,250) | $(47,515)               | $(19,634)
Interest and investment (income) expense, net | 2,979     | 4,504                   | 216
Provision for income taxes                    | 425       | 796                     | 47
Depreciation and amortization                 | 19,671    | 13,693                  | 10,207
Loss on extinguishment of convertible notes   | 1,406     | —                       | —
Stock-based compensation                      | 33,489    | 25,825                  | 9,299
Adjusted EBITDA                               | $5,720    | $(2,697)                | $135 |


| _id | d1b344bb6 |
| title |  |
| text | Comparison of Fiscal Year Ended September 28, 2018 to Fiscal Year Ended September 29, 2017
We acquired AppliedMicro on January 26, 2017 and certain assets of Picometrix on August 9, 2017, and we divested the Compute business on October 27, 2017 and our LR4 business on May 10, 2018. For additional information related to acquisitions and divestitures refer to Note 4 - Acquisitions and Note 23 - Divested Business and Discontinued Operations, respectively, in this Annual Report.

Our annual Statements of Operations includes activity since the dates of acquisition for AppliedMicro and Picometrix and excludes activity for the Compute business and LR4 business after the date of the divestiture, representing less than twelve months of activity for AppliedMicro and Picometrix for the fiscal year ended September 29, 2017.

Revenue. In fiscal year 2018, our revenue decreased by $128.4 million, or 18.4%, to $570.4 million from $698.8 million for fiscal year 2017. Revenue from our primary markets, the percentage of change between the years and revenue by primary markets expressed as a percentage of total revenue were (in thousands, except percentages):

In fiscal year 2018, our Telecom market revenue decreased by $117.1 million, or 34.4%, compared to fiscal year 2017. The decrease was primarily due to lower sales of carrier-based optical semiconductor products to our Asia customer base, lower sales of products targeting fiber to the home applications and the May 2018 sale of our LR4 business.

In fiscal year 2018, our Data Center market revenue decreased by $10.4 million, or 6.0%, compared to fiscal year 2017. The decrease was primarily due to decreased revenue from sales of legacy optical products and lasers and cloud data center applications.

In fiscal year 2018, our I&D market revenues decreased by $0.9 million, or 0.5%, compared to fiscal year 2017. The decrease was primarily related to lower certain legacy defense products partially offset by higher revenue across other areas within the product portfolio.

 |
| table | |  Fiscal Years   |          |
-------------------- | --------------- | -------- | --------
                     | 2018            | 2017     | % Change
Telecom              | $222,940        | $340,022 | (34.4)%
Data Center          | 162,098         | 172,481  | (6.0)%
Industrial & Defense | 185,360         | 186,269  | (0.5)%
                     | 570,398         | 698,772  | (18.4)%
Telecom              | 39.1%           | 48.6%    |
Data Center          | 28.4%           | 24.7%    |
Industrial & Defense | 32.5%           | 26.7%    |
Total                | 100.0%          | 100.0%   | |


| _id | d1b34d0fe |
| title |  |
| text | 18.1 Fair Values
The fair values of the currency and interest rate swap contracts exclude accrued interest of S$16.3 million (31 March 2018: S$16.8 million). The accrued interest is separately disclosed in Note 16 and Note 27.
The fair values of the derivative financial instruments were as follows –

 |
| table | | Group       |             | Company     |
---------------------------------------------------- | ----------- | ----------- | ----------- | -----------
                                                     | Fair values |             | Fair values |
                                                     | Assets      | Liabilities | Assets      | Liabilities
2019                                                 | S$ Mil      | S$ Mil      | S$ Mil      | S$ Mil
Fair value and cash flow hedges                      |             |             |             |
Cross currency swaps                                 | 414.6       | 95.5        | 1.0         | 60.2
Interest rate swaps                                  | 11.1        | 59.8        | -           | 8.9
Forward foreign exchange contracts                   | 12.9        | 1.5         | 3.3         | 1.0
Derivatives that do not qualify for hedge accounting |             |             |             |
Cross currency swaps                                 | -           | -           | 104.7       | 104.7
Interest rate swaps                                  | -           | 1.9         | 17.5        | 17.5
Forward foreign exchange contracts                   | 0.1         | -           | 0.1         | -
                                                     | 438.7       | 158.7       | 126.6       | 192.3
Disclosed as –                                       |             |             |             |
Current                                              | 155.1       | 9.2         | 0.7         | 0.5
Non-current                                          | 283.6       | 149.5       | 125.9       | 191.8
                                                     | 438.7       | 158.7       | 126.6       | 192.3 |


| _id | d1b33eaf4 |
| title |  |
| text | ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
The following table summarizes long-lived assets by geographic area as of December 31, 2019 and December 31, 2018:
Long-lived assets include property and equipment, operating lease right-of-use assets, goodwill and other intangible assets.

 |
| table | | December 31, |
------------- | ------------ | --------
              | 2019         | 2018
United States | $239,511     | $115,869
Asia          | 301,020      | 12,274
Europe        | 59,925       | 59,936
Total         | $600,456     | $188,079 |