| _id | d1b371742 |
| title |  |
| text | (1) Exclude adjustments related to the migration to the new customer management system implemented during the third quarter of fiscal 2018.

During the third quarter of fiscal 2018, the Canadian broadband services segment implemented a new customer management system, replacing 22 legacy systems. While the customer management system was still in the stabilization phase, contact center congestion resulted in lower services activations during most of the fourth quarter of fiscal 2018. Contact center and marketing operations had returned to normal at the end of the first quarter of 2019.
Variations of each services are also explained as follows:

INTERNET Fiscal 2019 fourth-quarter Internet service customers net additions stood at 2,540 compared to net losses of 2,965 for the same period of the prior year mainly due to: • the ongoing interest in high speed offerings; • the sustained interest in bundle offers; and • the increased demand from Internet resellers; partly offset by • competitive offers in the industry.

VIDEO Fiscal 2019 fourth-quarter video service customers net losses stood at 8,164 compared to 15,953 for the same period of the prior year as a result of: • highly competitive offers in the industry; and • a changing video consumption environment; partly offset by • customers' ongoing interest in digital advanced video services; and • customers' interest in video services bundled with fast Internet offerings.

TELEPHONY Fiscal 2019 fourth-quarter telephony service customers net additions amounted to 2,778 compared to net losses 16,900 for the same period of the prior year mainly due to: • more telephony bundles due to additional promotional activity in the second half of fiscal 2019; and • growth in the business sector; partly offset by • increasing wireless penetration in North America and various unlimited offers launched by wireless operators causing some customers to cancel their landline telephony services

to cancel their landline telephony services for wireless telephony services only.

 |
| table | |                 | Net additions (losses)        | Net additions (losses)
--------------------------- | --------------- | ----------------------------- | -----------------------------
                            |                 | Three months ended August 31, | Three months ended August 31,
                            | August 31, 2019 | 2019                          | 2018(1)
Primary service units       | 1,810,366       | (2,846)                       | (35,818)
Internet service customers  | 788,243         | 2,540                         | (2,965)
Video service customers     | 649,583         | (8,164)                       | (15,953)
Telephony service customers | 372,540         | 2,778                         | (16,900) |


| _id | d1b345ac0 |
| title |  |
| text | 28 Parent entity financial information
The individual financial statements for the parent entity show the following aggregate amounts:

NEXTDC Limited acquired Asia Pacific Data Centre (“APDC”) on 18 October 2018 (refer to note 26). Following acquisition, the entities comprising APDC were subsequently wound up, and the underlying properties were transferred to a new entity established by NEXTDC - NEXTDC Holdings Trust No. 1 (refer to note 27). This resulted in the above loss in the parent entity on derecognition of its investment in APDC, while a corresponding gain was recorded in NEXTDC Holdings Trust No. 1 on transfer of the properties.

(a) Reserves
Due to the requirements of accounting standards, the loan provided by NEXTDC Limited (parent entity) to NEXTDC Share Plan Pty Ltd requires the loan in respect of the loan funded share plan to be recorded as an issue of treasury shares and a corresponding debit to equity (treasury share reserve).
(b) Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
As at 30 June 2019, NEXTDC Limited did not have any guarantees in relation to the debts of subsidiaries.

(c) Contingent liabilities of NEXTDC Limited (parent entity)
The parent entity did not have any contingent liabilities as at 30 June 2019 or 30 June 2018. For information about guarantees given by the parent entity, please see above.
(d) Contractual commitments by NEXTDC for the acquisition of property, plant and equipment
Contractual commitments detailed in Note 17 relate to NEXTDC Limited as parent entity.
(e) Determining the parent entity financial information

The financial information for the parent entity has been prepared on the same basis as the consolidated financial statements, except as set out below.
(i) Tax consolidation legislation
NEXTDC Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation.

The head entity, NEXTDC Limited, and the controlled entities in the tax consolidated Group account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated Group continues to be a stand-alone taxpayer in its own right.

In addition to its own current and deferred tax amounts, NEXTDC Limited also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated Group.

The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate NEXTDC Limited for any current tax payable assumed and are compensated by NEXTDC Limited for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to NEXTDC Limited under the tax consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entities’ financial

in the wholly-owned entities’ financial statements.

The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to assist with its obligations to pay tax instalments.

Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current amounts receivable from or payable to other entities in the Group.
Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are recognised as a contribution to (or distribution from) wholly-owned tax consolidated entities.
(ii) Investments in subsidiaries, associates and joint venture entities

Investments in subsidiaries are accounted for at cost in the financial statements of NEXTDC Limited.

 |
| table | | 30 June 2019 | 30 June 2018
---------------------------------------------- | ------------ | ------------
                                               | $'000        | $'000
Current assets                                 | 447,698      | 464,222
Non-current assets                             | 1,121,500    | 771,702
TOTAL ASSETS                                   | 1,569,198    | 1,235,924
Current liabilities                            | 63,382       | 36,484
Non-current liabilities                        | 886,979      | 305,463
TOTAL LIABILITIES                              | 950,361      | 341,947
NET ASSETS                                     | 618,837      | 893,977
Shareholders' equity                           |              |
Contributed equity                             | 905,117      | 904,247
Reserves                                       | 6,285        | 6,005
Retained earnings                              | (292,565)    | (16,275)
TOTAL EQUITY                                   | 618,837      | 893,977
Profit/(loss) for the year after tax           | (266,311)    | 6,639
Total comprehensive income/(loss) for the year | (261,657)    | 6,639 |


| _id | d1b3963b2 |
| title |  |
| text | A summary of options outstanding and vested as of December 31, 2019 is as follows:
The total intrinsic value of options exercised during 2019, 2018, and 2017 was $318.5 million, $17.4 million, and $6.6 million, respectively.

The weighted average grant date fair value of options granted during the years ended December 31, 2019, 2018, and 2017, was $19.80, $9.07, and $6.44 per share, respectively. During the year ended December 31, 2019, 2,141,078 options vested. There were 2,939,947 options unvested as of December 31, 2019.
As of December 31, 2019, $30.3 million of total unrecognized compensation cost related to stock options was expected to be recognized over a weighted average period of approximately 2.5 years.

 |
| table | | Options Outstanding |                                  | Options Vested and Exercisable |
--------------- | ------------------- | -------------------------------- | ------------------------------ | --------------------------------
Exercise Prices | Number Outstanding  | Weighted Average Life (in Years) | Number Vested and Exercisable  | Weighted Average Life (in Years)
$1.50 to $1.90  | 32,913              | 1.4                              | 32,913                         | 1.4
2.86 to 6.40    | 209,126             | 3.3                              | 209,126                        | 3.3
8.04 to 11.72   | 498,869             | 4.2                              | 498,869                        | 4.2
12.20 to 15.06  | 2,227,421           | 6.7                              | 1,587,924                      | 6.5
16.06 to 24.00  | 1,772,062           | 8.1                              | 560,632                        | 8.1
31.99 to 42.21  | 847,010             | 9.0                              | 42,839                         | 8.7
55.10 to 79.25  | 297,341             | 9.5                              | 12,492                         | 9.3
                | 5,884,742           |                                  | 2,944,795                      | |


| _id | d1b2f72a8 |
| title |  |
| text | 19. Inventories
Note
1. Finished goods in 2018 includes $1.8 million relating to deferred costs which has been reclassified from trade and other receivables; see note 2 for further details.
An expense of $1.6 million (2018 $0.1 million) has been charged to the income statement in the year for inventory write-downs. There were no reversals of prior period inventory write-downs (2018 nil).
No inventories are carried at fair value less costs to sell (2018 nil).

 |
| table | | 2019      | 2018
---------------- | --------- | ---------
                 | $ million | $ million
Raw materials    | 4.8       | 6.6
Work in progress | 1.2       | 1.2
Finished goods¹  | 14.6      | 19.7
                 | 20.6      | 27.5 |


| _id | d1b2ec5ba |
| title |  |
| text | Earnings per Share—Basic earnings per share were calculated using net earnings and the weighted-average number of shares of common stock outstanding during the respective year. Diluted earnings per share were calculated using net earnings and the weighted-average number of shares of common stock and potential common stock associated with stock options outstanding during the respective year. The effects of potential common stock were determined using the treasury stock method:

As of and for the years ended December 31, 2019, 2018 and 2017, there were 0.627, 0.724 and 0.478 outstanding stock options, respectively, that were not included in the determination of diluted earnings per share because doing so would have been antidilutive.

 |
| table | Years ended December 31,                    |       |       |
------------------------------------------- | ----- | ----- | -----
                                            | 2019  | 2018  | 2017
Basic weighted-average shares outstanding   | 103.9 | 103.2 | 102.2
Effect of potential common stock:           |       |       |
Common stock awards                         | 1.2   | 1.2   | 1.3
Diluted weighted-average shares outstanding | 105.1 | 104.4 | 103.5 |


| _id | d1b35c7a2 |
| title |  |
| text | Other Income (Loss), Net The components of other income (loss), net, are summarized as follows (in millions):
The total change in net gains (losses) on available-for-sale debt investments was primarily attributable to lower realized losses as a result of market conditions, and the timing of sales of these investments.
The total change in net gains (losses) on marketable equity investments was attributable to market value fluctuations and the timing of recognition of gains and losses.

The change in net gains (losses) on non-marketable equity and other investments was primarily due to lower realized gains, partially offset by higher unrealized gains.
The change in other gains (losses), net was primarily driven by higher donation expense in the prior year.

 |
| table | |               | Years Ended   |               | 2019 vs. 2018
------------------------------------------- | ------------- | ------------- | ------------- | -------------------
                                            | July 27, 2019 | July 28, 2018 | July 29, 2017 | Variance in Dollars
Gains (losses) on investments, net:         |               |               |               |
Available-for-sale debt investments         | $(13)         | $(242)        | $(42)         | $229
Marketable equity investments               | (3)           | 529           | (45)          | (532)
Non-marketable equity and other investments | 6             | 11            | (46)          | (5)
Net gains (losses) on investments           | (10)          | 298           | (133)         | (308)
Other gains (losses), net                   | (87)          | (133)         | (30)          | 46
Other income (loss), net                    | $(97)         | $165          | $(163)        | $(262) |


| _id | d1b3becc2 |
| title |  |
| text | In 2019 we recognized other income, net of expenses, of $103 million, increasing compared to $53 million in 2018, mainly benefitting from the grants associated with the programs part of the European Commission IPCEI in Italy and in France, partially offset by a higher level of start-up costs associated with the production ramp up of the 200 mm fab recently acquired from Micron Technology Inc. in Singapore.

In 2018 we recognized other income, net of expenses, of $53 million, slightly decreasing compared to $55 million in 2017, mainly due to lower level of R&D grants.

 |
| table | | Year Ended December 31, | Year Ended December 31, | Year Ended December 31,
------------------------------------------------- | ----------------------- | ----------------------- | -----------------------
                                                  | 2019                    | 2018                    | 2017
                                                  | (In millions)           | (In millions)           | (In millions)
Research and development funding                  | $132                    | $52                     | $65
Phase-out and start-up costs                      | (38)                    | (1)                     | (8)
Exchange gain (loss), net                         | —                       | 4                       | 4
Patent costs                                      | (1)                     | (8)                     | (9)
Gain on sale of businesses and non-current assets | 7                       | 8                       | 4
Other, net                                        | 3                       | (2)                     | (1)
Other income and expenses, net                    | $103                    | $53                     | $55
As percentage of net revenues                     | 1.1%                    | 0.5%                    | 0.7% |


| _id | d1b31dff2 |
| title |  |
| text | ITEM 6. SELECTED FINANCIAL DATA

The data for fiscal 2019, 2018 and 2017 and as of August 31, 2019 and 2018 are derived from the audited Consolidated Financial Statements and related Notes that are included elsewhere in this report. The data for fiscal 2016 and 2015 and as of August 31, 2017, 2016 and 2015 are derived from the audited Consolidated Financial Statements and related Notes that are not included in this report. The selected financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial

Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial Statements and related Notes included elsewhere in this report.

(1) Effective September 1, 2018, we adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and eliminated our net revenues presentation and FASB ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Prior period amounts have been revised to conform with the current period presentation.

(2) Includes the impact of a $258 million charge associated with tax law changes recorded during fiscal 2018. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations for Fiscal 2018 Compared to Fiscal 2017—Provision for Income Taxes.”

(3) Includes the impact of a $312 million, post-tax, pension settlement charge recorded during fiscal 2017. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations for Fiscal 2018 Compared to Fiscal 2017—Pension Settlement Charge.”
(4) Includes the impact of a $745 million, post-tax, gain on sale of businesses recorded during fiscal 2016.
(5) Includes the impact of a $39 million, post-tax, pension settlement charge recorded during fiscal 2015.

 |
| table | |         | Fiscal                        |              |              |
---------------------------------------- | ------- | ----------------------------- | ------------ | ------------ | ------------
                                         | 2019    | 2018 (1) (2)                  | 2017 (1) (3) | 2016 (1) (4) | 2015 (1) (5)
                                         |         | (in millions of U.S. dollars) |              |              |
Income Statement Data                    |         |                               |              |              |
Revenues                                 | $43,215 | $40,993                       | $36,177      | $34,254      | $32,406
Operating income                         | 6,305   | 5,899                         | 5,191        | 4,846        | 4,526
Net income                               | 4,846   | 4,215                         | 3,635        | 4,350        | 3,274
Net income attributable to Accenture plc | 4,779   | 4,060                         | 3,445        | 4,112        | 3,054
Earnings Per Class A Ordinary Share      |         |                               |              |              |
Basic                                    | $7.49   | $6.46                         | $5.56        | $6.58        | $4.87
Diluted                                  | 7.36    | 6.34                          | 5.44         | 6.45         | 4.76
Dividends per ordinary share             | 2.92    | 2.66                          | 2.42         | 2.20         | 2.04 |


| _id | d1a740464 |
| title |  |
| text | Prepayments
Prepayments consist of the following and are included in prepayments and other current assets on the balance sheet:

 |
| table | | 2019           | 2018
---------------------------------------------- | -------------- | --------
                                               | (in thousands) |
Contract manufacturer and supplier prepayments | $143,392       | $131,642
Prepaid taxes                                  | 8,046          | 9,646
Prepaid maintenance and other services         | 8,503          | 8,487
Other prepayments                              | 16,753         | 12,744
Total prepayments                              | $176,694       | $162,519 |


| _id | d1b3a4ea8 |
| title |  |
| text | In 2019 we recorded $5 million of impairment, restructuring charges and other related closure costs, mainly consisting of impairment of equipment and licenses dedicated exclusively to certain development projects that were cancelled, while no alternative future use was identified internally.

In 2018 we recorded $21 million of impairment, restructuring charges and other related closure costs, consisting of: (i) $19 million related to the set-top box restructuring plan and (ii) $2 million of impairment of acquired technologies, for which it was determined that they had no future alternative use.

In 2017 we recorded $45 million of impairment, restructuring charges and other related closure costs, primarily consisting of: (i) $34 million of net restructuring charges related to the set-top box restructuring plan; (ii) $13 million of restructuring charges related to the restructuring plan in Bouskoura, Morocco;

(iii) $3 million charge relating to the update of the existing unused lease provision and (iv) $5 million income for the reversal of provisions related to previously announced restructuring plans, mainly the Embedded Processing Solutions business restructuring plan, for which accrued provisions were not fully used at completion of the plan.

 |
| table | |      | Year Ended December 31, |
----------------------------------------------------------------- | ---- | ----------------------- | -----
                                                                  | 2019 | 2018                    | 2017
                                                                  |      | (In millions)           |
Impairment, restructuring charges and other related closure costs | $(5) | $(21)                   | $(45) |


| _id | d1b330d1e |
| title |  |
| text | ITEM 6. SELECTED FINANCIAL DATA
The following selected consolidated financial data is not necessarily indicative of results of future operations, and should be read in conjunction with Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations,” and the consolidated financial statements and related notes thereto included in Item 8 of this Form 10-K to fully understand factors that may affect the comparability of the information presented below.

The financial data for the fiscal years ended January 31, 2019 and 2018 are derived from, and are qualified by reference to, the audited consolidated financial statements that are included in this Form 10-K. The Consolidated Statements of Operations and the Consolidated Statements of Cash Flows data for the fiscal year ended January 31, 2017 are derived from, and are qualified by reference to, the audited consolidated financial statements that are included in this Form 10-K. The Consolidated Balance Sheet

in this Form 10-K. The Consolidated Balance Sheet data for the fiscal year ended January 31, 2017 and the remaining financial data for the fiscal years ended January 31, 2016 and 2015 are derived from audited, consolidated financial statements which are not included in this Form 10-K.

(1) Reflects the impact of the adoption of new accounting standards in fiscal year 2019 related to revenue recognition. See Part II, Item 8, Note 1, Business and Summary of Significant Accounting Policies, Accounting Standards Adopted, of our consolidated financial statements for additional information.

 |
| table | |                                      |          | Fiscal Year Ended January 31, |          |
----------------------------------- | ------------------------------------ | -------- | ----------------------------- | -------- | --------
                                    | 2019 (1)                             | 2018     | 2017                          | 2016     | 2015
                                    | (In millions, except per share data) |          |                               |          |
For the fiscal year:                |                                      |          |                               |          |
Net revenue                         | $2,569.8                             | $2,056.6 | $2,031.0                      | $2,504.1 | $2,512.2
(Loss) income from operations       | (25.0)                               | (509.1)  | (499.6)                       | 1.3      | 120.7
Net (loss) income                   | (80.8)                               | (566.9)  | (582.1)                       | (330.5)  | 81.8
Cash flow from operations           | $377.1                               | $0.9     | $169.7                        | $414.0   | $708.6
Common stock data:                  |                                      |          |                               |          |
Basic net (loss) income per share   | $(0.37)                              | $(2.58)  | $(2.61)                       | $(1.46)  | $0.36
Diluted net (loss) income per share | $(0.37)                              | $(2.58)  | $(2.61)                       | $(1.46)  | $0.35
At year end:                        |                                      |          |                               |          |
Total assets                        | $4,729.2                             | $4,113.6 | $4,798.1                      | $5,515.3 | $4,909.7
Long-term liabilities               | 2,638.9                              | 2,246.4  | 1,879.1                       | 2,304.7  | 1,290.4
Stockholders’ (deficit) equity      | $(210.9)                             | $(256.0) | $733.6                        | $1,619.6 | $2,219.2 |


| _id | d1b359084 |
| title |  |
| text | 15. Product Warranties

The Company generally provides its customers with a one-year warranty regarding the manufactured quality and functionality of its products. For some limited products, the warranty period has been extended. The Company establishes warranty reserves based on its product history, current information on repair costs and annual sales levels. As of April 30, 2019, and 2018, respectively, changes in the carrying amount of accrued product warranty costs, reported in accrued expenses on the consolidated balance

in accrued expenses on the consolidated balance sheet, were as follows (in thousands):

 |
| table | | 2019  | 2018
---------------------------- | ----- | ----
Balance at beginning of year | $520  | $557
Warranty costs incurred      | (398) | (40)
Product warranty accrual     | 407   | 3
Balance at end of year       | $529  | $520 |


| _id | d1a72250e |
| title |  |
| text | Contractual Obligations
Obligations under long-term debt; non-cancelable operating leases; purchase obligations relating to feed grains, other feed ingredients and packaging supplies; construction contracts and claims payable relating to the Company’s workers’ compensation insurance policy at October 31, 2019, were as follows:

 |
| table | |         |                  | Payments Due By Period (in thousands)  |            |
---------------------------------------------------- | ------- | ---------------- | -------------------------------------- | ---------- | -------
Contractual Obligations                              | Total   | Less than 1 Year | 1-3 Years                              | 3-5  Years | 5 Years
Operating leases                                     | 47,774  | $15,363          | $22,919                                | $ 9,382    | $110
Long-term debt                                       | 55,000  | —                | —                                      | 55,000     | —
Purchase obligations:                                |         |                  |                                        |            |
Feed grains, feed ingredients and packaging supplies | 199,097 | 199,097          | —                                      |            |
Construction contracts and other                     | 8,996   | 8,996            | —                                      | —          | —
Claims payable                                       | 20,587  | 9,687            | 10,900                                 | —          | —
Total                                                | 331,454 | $233,143         | $33,819                                | $ 64,382   | $110 |


| _id | d1b3a6456 |
| title |  |
| text | The Group’s associates are considered to be related parties.
As at 30 March 2019 the following are also considered to be related parties under the Listing Rules due to their shareholdings exceeding 10% of the Group’s total issued share capital:

− Nissin Foods Holdings Co., Ltd. (“Nissin”) is considered to be a related party to the Group by virtue of its 19.47% (2017/18: 19.57%) equity shareholding in Premier Foods plc and of its power to appoint a member to the Board of directors.− Oasis Management Company Ltd (“Oasis”) is considered to be a related party to the Group by virtue of its 11.99% (2017/18: 9.01%) equity shareholding in Premier Foods plc and of its power to appoint a member to the Board of directors.

− Paulson Investment Company LLC, (“Paulson”) is considered to be a related party to the Group by virtue of its 11.98% (2017/18: 7.39%) equity shareholding in Premier Foods plc and of its power to appoint a member to the Board of directors.
As at 30 March 2019 the Group had outstanding balances with Hovis. Total trade receivables was £0.9m (2017/18: £0.5m) and total trade payables was £0.6m (2017/18: £2.5m).

 |
| table | | 52 weeks ended | 52 weeks ended
------------------ | -------------- | --------------
                   | 30 Mar 2019    | 31 Mar 2018
                   | £m             | £m
Sale of goods:     |                |
– Hovis            | 0.3            | 0.3
Sale of services:  |                |
– Hovis            | 0.7            | 0.7
– Nissin           | 0.2            | 0.1
Total sales        | 1.2            | 1.1
Purchase of goods: |                |
– Hovis            | 6.3            | 11.9
– Nissin           | 10.3           | 7.1
Total purchases    | 16.6           | 19.0 |


| _id | d1a713f36 |
| title |  |
| text | Loss per share

Basic loss per share are computed based on the weighted average number of common shares outstanding during the period. Diluted earnings/loss per share reflect the dilutive impact of outstanding stock options and restricted stock awards. Included in the weighted average shares outstanding is the share consideration in connection with the Restaurant Magic Acquisition (See Note 2 - Acquisitions) in the amount of 908,192 for the period after the close of the transaction. The shares were issued in January 2020,

The shares were issued in January 2020, however, no contingencies existed as of the date of the acquisition.

The following is a reconciliation of the weighted average shares outstanding for the basic and diluted loss per share computations (in thousands, except share and per share data):

At December 31, 2019 and 2018 there were 383,000 and 750,000 incremental shares, respectively, from the assumed exercise of stock options that were excluded from the computation of diluted earnings per share because of the anti-dilutive effect on earnings per share. There were 308,000 restricted stock awards excluded from the computation of diluted earnings per share for the fiscal year ended 2019 and 113,000 for the fiscal year ended 2018.

 |
| table | | 2019      | 2018
------------------------------------------------------------ | --------- | ---------
Net Loss                                                     | $(15,571) | $(24,122)
Basic:                                                       |           |
Weighted average shares outstanding at beginning of year     | 16,041    | 15,949
Weighted average shares issued during the year, net          | 182       | 92
Weighted average common shares, basic                        | 16,223    | 16,041
Loss from per common share, basic                            | $(0.96)   | $(1.50)
Diluted:                                                     |           |
Weighted average common shares, basic                        | 16,223    | 16,041
Dilutive impact of stock options and restricted stock awards | —         | —
Weighted average common shares, diluted                      | 16,223    | 16,041
Loss per common share, diluted                               | $ (0.96)  | $ (1.50) |


| _id | d1b381584 |
| title |  |
| text | 6-INTANGIBLE ASSETS
The following table provides the details of the carrying value of intangible assets recorded from the acquisition of SensiML during the year ended December 29, 2019 (in thousands):

 |
| table | December 29, 2019                             |                       |                          |
--------------------------------------------- | --------------------- | ------------------------ | -------------------
                                              | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount
Developed technology                          | $959                  | $(96)                    | $863
Customer relationships                        | 81                    | (40)                     | 41
Trade names and trade marks                   | 116                   | (12)                     | 104
Total acquired identifiable intangible assets | $1,156                | $(148)                   | $1,008 |


| _id | d1b3a3c88 |
| title |  |
| text | Note 4. Special Charges and Other, Net
The following table summarizes activity included in the "special charges and other, net" caption on the Company's consolidated statements of income (in millions):

The Company continuously evaluates its existing operations in an attempt to identify and realize cost savings opportunities and operational efficiencies. This same approach is applied to businesses that are acquired by the Company and often the operating models of acquired companies are not as efficient as the Company's operating model which enables the Company to realize significant savings and efficiencies. As a result, following an acquisition, the Company will from time to time incur restructuring

will from time to time incur restructuring expenses; however, the Company is often not able to estimate the timing or amount of such costs in advance of the period in which they occur. The primary reason for this is that the Company regularly reviews and evaluates each position, contract and expense against the Company's strategic objectives, long-term operating targets and other operational priorities. Decisions related to restructuring activities are made on a "rolling basis" during the course of the

on a "rolling basis" during the course of the integration of an acquisition whereby department managers, executives and other leaders work together to evaluate each of these expenses and make recommendations. As a result of this approach, at the time of an acquisition, the Company is not able to estimate the future amount of expected employee separation or exit costs that it will incur in connection with its restructuring activities.

The Company's restructuring expenses during the fiscal year ended March 31, 2019 were related to the Company's most recent business acquisitions, and resulted from workforce, property and other operating expense rationalizations as well as combining product roadmaps and manufacturing operations. These expenses were for employee separation costs and intangible asset impairment charges. The impairment charges in the fiscal year ended March 31, 2019 were primarily recognized as a result of writing off

primarily recognized as a result of writing off intangible assets purchased from Microsemi prior to the close of the acquisition and other intangible assets that were impaired as a result of changes in the combined product roadmaps after the acquisition that affected the use and life of the assets. Additional costs will be incurred in the future as additional synergies or operational efficiencies are identified in connection with the Microsemi transaction and other previous acquisitions. The Company is not

other previous acquisitions. The Company is not able to estimate the amount of such future expenses at this time.

During fiscal 2018, the Company incurred expenses including non-restructuring contract exit costs of $19.5 million for fees associated with transitioning from the public utility provider in Oregon to a lower cost direct access provider. The fee is paid monthly and will depend on the amount of actual energy consumed by the Company's wafer fabrication facility in Oregon over the next five years. In connection with the transition to a direct access provider, the Company signed a ten-year supply agreement to

the Company signed a ten-year supply agreement to purchase monthly amounts of energy that are less than the current average usage and priced on a per mega watt hour published index rate in effect at those future dates. Also during fiscal 2018, the Company incurred $1.2 million of employee separation costs in connection with the acquisition of Atmel.

The Company's restructuring expenses during fiscal 2017 were related to the Company's acquisitions of Atmel and Micrel, and resulted from workforce, property and other operating expense rationalizations as well as combining product roadmaps and manufacturing operations. These expenses were for employee separation costs, contract exit costs, other operating expenses and intangible asset impairment losses. The impairment charges in fiscal 2017 were recognized as a result of changes in the combined product

as a result of changes in the combined product roadmaps after the acquisition of Atmel that affected the use and life of these assets. At March 31, 2017, these activities were substantially complete.

All of the Company's restructuring activities occurred in its semiconductor products segment. The Company incurred $115.2 million in costs since the start of fiscal 2016 in connection with employee separation activities, of which $65.3 million, $1.2 million and $39.1 million was incurred during the fiscal years ended March 31, 2019, 2018 and 2017, respectively. The Company could incur future expenses as additional synergies or operational efficiencies are identified. The Company is not able to estimate

identified. The Company is not able to estimate future expenses, if any, to be incurred in employee separation costs. The Company has incurred $40.8 million in costs in connection with contract exit activities since the start of fiscal 2016 which includes $4.7 million of income incurred for the year ended March 31, 2019 and $0.7 million and $44.1 million of costs incurred for the years ended March 31, 2018 and 2017, respectively. The amounts recognized during the fiscal year ended March 31, 2019 were

during the fiscal year ended March 31, 2019 were primarily related to vacated lease liabilities. While the Company expects to incur further acquisition-related contract exit expenses, it is not able to estimate the amount at this time.

In the three months ended June 30, 2017, the Company completed the sale of an asset it acquired as part of its acquisition of Micrel for proceeds of $10.0 million and the gain of $4.4 million is included in the gain on sale of assets in the above table.

 |
| table | |        | For The Years Ended March 31, |
----------------------------------------------- | ------ | ----------------------------- | -----
                                                | 2019   | 2018                          | 2017
Restructuring                                   |        |                               |
Employee separation costs                       | $65.3  | $1.2                          | $39.1
Gain on sale of assets                          | —      | (4.4)                         | —
Impairment charges                              | 3.6    | —                             | 12.6
Contract exit costs                             | (4.7)  | 0.7                           | 44.1
Other                                           | (0.3)  | —                             | 2.8
Legal contingencies                             | (30.2) | —                             | —
Non-restructuring contract exit costs and other | —      | 20.0                          | —
Total                                           | $33.7  | $17.5                         | $98.6 |


| _id | d1b32b788 |
| title |  |
| text | VMware Stock Repurchases

VMware purchases stock from time to time in open market transactions, subject to market conditions. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including VMware’s stock price, cash requirements for operations and business combinations, corporate, legal and regulatory requirements and other market and economic conditions. VMware is not obligated to purchase any shares under its stock repurchase programs. Purchases can be discontinued at any

programs. Purchases can be discontinued at any time VMware believes additional purchases are not warranted. From time to time, VMware also purchases stock in private transactions, such as those with Dell. All shares repurchased under VMware’s stock repurchase programs are retired.

The following table summarizes stock repurchase activity, including shares purchased from Dell, during the periods presented (aggregate purchase price in millions, shares in thousands):
(1) The aggregate purchase price of repurchased shares is classified as a reduction to additional paid-in capital until the balance is reduced to zero and the excess is recorded as a reduction to retained earnings.

 |
| table | |                  | For the Year Ended |
-------------------------------- | ---------------- | ------------------ | ----------------
                                 | January 31, 2020 | February 1, 2019   | February 2, 2018
Aggregate purchase price (1)     | $1,334           | $42                | $1,449
Class A common stock repurchased | 7,664            | 286                | 13,977
Weighted-average price per share | $174.02          | $148.07            | $103.66 |


| _id | d1b35e70a |
| title |  |
| text | Operating Expenses
Research and Development Expenses
Research and development expenses increased $47 million, or 30%, in 2019 compared to 2018. The overall increase was primarily due to increased employee compensation-related costs of $34 million, driven by headcount growth, and increased allocated shared costs of $8 million.

Research and development expenses increased $45 million, or 39%, in 2018 compared to 2017. The overall increase was primarily due to increased employee compensation-related costs of $36 million, driven by headcount growth, and increased allocated shared costs of $6 million.

 |
| table | |           | Year Ended December 31, |                                    |                       |
------------------------ | --------- | ----------------------- | ---------------------------------- | --------------------- | ---------------------
                         | 2019      | 2018                    | 2017                               | 2018 to 2019 % change | 2017 to 2018 % change
                         |           |                         | (In thousands, except percentages) |                       |
Research and Development | $ 207,548 | $ 160,260               | $ 115,291                          | 30%                   | 39% |


| _id | d1a7296ba |
| title |  |
| text | NOTE 5. INVESTMENTS AND LOANS TO SUBSIDIARIES
Interest relates mainly to a subsidiary and is based on the Bank of America’s prime rate with a rise of two percent points. The repayment schedule of the loan is as follows: 24 annual installments of US$2 million, starting December 31, 2018, followed by a final installment of US$5.3 million on December 31, 2043.

 |
| table | | December 31, |
------------------------------------------------- | ------------ | ------
                                                  | 2018         | 2019
Loans due from subsidiaries - non-current portion | 46,698       | 45,377
Loans due from subsidiaries - current portion     | 2,064        | 2,123
Total                                             | 48,762       | 47,500 |


| _id | d1b3a009c |
| title |  |
| text | ADJUSTED EBITDA
(1) For the three-month period ended August 31, 2019, the average foreign exchange rate used for translation was 1.3222 USD/CDN.
(2) Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections.

(3) Fiscal 2019 actuals are translated at the average foreign exchange rate of the comparable period of fiscal 2018 which was 1.3100 USD/CDN.

Fiscal 2019 fourth-quarter adjusted EBITDA increased by 4.6% (4.3% in constant currency) as a result of: • an increase in the American broadband services segment mainly as a result of strong organic growth combined with the impact of the FiberLight acquisition; and • an increase in the Canadian broadband services segment resulting mainly from a decline in operating expenses.

 |
| table | Three months ended August 31,                 | 2019 (1) | 2018 (2) | Change | Change in constant currency (3) | Foreign exchange impact (3)
--------------------------------------------- | -------- | -------- | ------ | ------------------------------- | ---------------------------
(in thousands of dollars, except percentages) | $        | $        | %      | %                               | $
Canadian broadband services                   | 172,120  | 166,181  | 3.6    | 3.6                             | (73)
American broadband services                   | 115,523  | 109,937  | 5.1    | 4.1                             | 1,057
Inter-segment eliminations and other          | (12,033) | (12,707) | (5.3)  | (5.3)                           | 2
                                              | 275,610  | 263,411  | 4.6    | 4.3                             | 986 |


| _id | d1b3c0586 |
| title |  |
| text | 3. Debtors
Accounting policies

Accounting policies
Amounts owed to subsidiaries are classified and recorded at amortised cost (2018: classified as loans and receivables) and reduced by allowances for expected credit losses. Estimate future credit losses are first recorded on initial recognition of a receivable and are based on estimated probability of default. Individual balances are written off when management deems them not to be collectible. Derivative financial instruments are measured at fair value through profit and loss.

Note: 1 Amounts owed by subsidiaries are unsecured, have no fixed date of repayment and are repayable on demand with sufficient liquidity in the group to flow funds if required. Therefore expected credit losses are considered to be immateria

 |
| table | | 2019    | 2018
--------------------------------------------- | ------- | -------
                                              | €m      | €m
Amounts falling due within one year:          |         |
Amounts owed by subsidiaries1                 | 242,976 | 220,871
Taxation recoverable                          | 233     | –
Other debtors                                 | 32      | 199
Derivative financial instruments              | 183     | 163
                                              | 243,424 | 221,233
Amounts falling due after more than one year: |         |
Derivative financial instruments              | 3,439   | 2,449
Deferred tax                                  | –       | 31
                                              | 3,439   | 2,480 |


| _id | d1b308828 |
| title |  |
| text | The movement of contract liabilities is mainly caused by the timing difference of the satisfaction of a performance of obligation and the consideration received from customers.
The Company recognized NT$3,815 million and NT$616 million, respectively, in revenues from the contract liabilities balance at the beginning of the period as performance obligations were satisfied for the years ended December 31, 2018 and 2019.

 |
| table | | As of January 1,2018 | As of December 31,2018 | As of December 31,2019
--------------------------- | -------------------- | ---------------------- | ----------------------
                            | NT$(In Thousands)    | NT$(In Thousands)      | NT$(In Thousands)
Sales of goods and services | $3,951,414           | $932,371               | $1,470,195
Current                     | $3,951,414           | $932,371               | $988,115
Noncurrent                  | —                    | —                      | 482,080
Total                       | $3,951,414           | $932,371               | $1,470,195 |


| _id | d1b34e18e |
| title |  |
| text | Basic earnings per share is computed on the basis of the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted-average number of shares of common stock outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.

* Includes a charge of $2.0 billion or $2.23 of basic and diluted earnings per share in 2018 associated with U.S. tax reform.
Actual shares outstanding at December 31, 2019 and 2018 were 887.1 million and 892.5 million, respectively. The year-to- year decrease was primarily the result of the common stock repurchase program. The average number of common shares
outstanding assuming dilution was 23.5 million shares lower in 2019 versus 2018

 |
| table | For the year ended December 31:                               | 2019   | 2018   | Yr.-to-Yr. Percent Change
------------------------------------------------------------- | ------ | ------ | -------------------------
Earnings per share of common stock from continuing operations |        |        |
Assuming dilution                                             | $10.57 | $9.51* | 11.1%
Basic                                                         | $10.63 | $9.56* | 11.2%
Diluted operating (non-GAAP)                                  | $12.81 | $13.81 | (7.2)%
Weighted-average shares outstanding (in millions)             |        |        |
Assuming dilution                                             | 892.8  | 916.3  | (2.6)%
Basic                                                         | 887.2  | 912.0  | (2.7)% |


| _id | d1b36ba22 |
| title |  |
| text | Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Our common stock trades on The Nasdaq Stock Market under the symbol ZIXI. The table below shows the high and low sales prices by quarter for fiscal 2019 and 2018.
At March 4, 2020, there were 55,641,885 shares of common stock outstanding held by 399 shareholders of record. On that date, the last reported sales price of the common stock was $8.27.

We have not paid any cash dividends on our common stock and do not anticipate doing so in the foreseeable future.
For information regarding options and stock-based compensation awards outstanding and available for future grants, see “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.”

 |
| table | | 2019    |        | 2018   |
------------- | ------- | ------ | ------ | ------
Quarter Ended | High    | Low    | High   | Low
March 31      | $ 9.07  | $ 5.34 | $ 4.75 | $ 3.82
June 30       | $ 11.15 | $ 6.66 | $ 5.62 | $ 4.25
September 30  | $ 10.51 | $ 6.91 | $ 5.93 | $ 4.91
December 31   | $ 7.75  | $ 6.25 | $ 7.09 | $ 4.66 |


| _id | d1b38878a |
| title |  |
| text | Debt Activity

The table below presents the effects of issuances, prepayments, and conversions of debt in 2019. When we receive a notice of conversion for any of our convertible notes and elect to settle in cash any amount of the conversion obligation in excess of the principal amount, the cash settlement obligations become derivative debt liabilities subject to mark-to-market accounting treatment based on the volume-weighted-average price of our common stock over a period of 20 consecutive trading days. Accordingly, at

of 20 consecutive trading days. Accordingly, at the date of our election to settle a conversion in cash, we reclassify the fair value of the equity component of the converted notes from additional capital to derivative debt liability within current debt in our consolidated balance sheet.

In 2018, we repurchased or redeemed $6.96 billion of principal amount of notes (carrying value of $6.93 billion) for an aggregate of $9.42 billion in cash and 4 million shares of our treasury stock. As of August 30, 2018, an aggregate of $35 million principal amount of our 2033F Notes (with a carrying value of $165 million) had converted but not settled. These notes settled in 2019 for $153 million in cash and the effect of the settlement is included in the table above. In connection with these

in the table above. In connection with these transactions, we recognized aggregate non-operating losses of $385 million in 2018.

In 2017, we repurchased or redeemed $1.55 billion of principal amount of notes (carrying value of $1.54 billion) for an aggregate of $1.63 billion in cash. In connection with these transactions, we recognized aggregate non-operating losses of $94 million in 2017.
(1)  Issued February 6, 2019.
(2)  Issued July 12, 2019.

(2)  Issued July 12, 2019.
(3)  As of August 29, 2019, an aggregate of $44 million principal amount of our 2033F Notes (with a carrying value of $179 million) had converted but not settled. These notes settled in the first quarter of 2020 for $192 million in cash.

 |
| table | | Increase (Decrease) in Principal | Increase (Decrease) in Carrying Value | Increase (Decrease) in Cash | Decrease in Equity | Gain (Loss)
----------------------- | -------------------------------- | ------------------------------------- | --------------------------- | ------------------ | -----------
Issuances               |                                  |                                       |                             |                    |
2024 Notes(1)           | $600                             | $597                                  | $597                        | $—                 | $—
2026 Notes(1)           | 500                              | 497                                   | 497                         | —                  | —
2027 Notes(2)           | 900                              | 895                                   | 895                         | —                  | —
2029 Notes(1)           | 700                              | 695                                   | 695                         | —                  | —
2030 Notes(2)           | 850                              | 845                                   | 845                         | —                  | —
Prepayments             |                                  |                                       |                             |                    |
2022 Term Loan B        | (728)                            | (721)                                 | (728)                       | —                  | (7)
Settled conversions     |                                  |                                       |                             |                    |
2032D Notes             | (10)                             | (9)                                   | (35)                        | (28)               | 2
2033F Notes             | (45)                             | (175)                                 | (192)                       | (28)               | 11
2043G Notes             | (1,019)                          | (691)                                 | (1,426)                     | (326)              | (400)
Conversions not settled |                                  |                                       |                             |                    |
2033F Notes(3)          | —                                | 135                                   | —                           | (133)              | (2)
                        | $1,748                           | $2,068                                | $1,148                      | $(515)             | $(396) |


| _id | d1b34c2e4 |
| title |  |
| text | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
Contract Assets and Liabilities
Contract assets and liabilities included in our Consolidated Balance Sheets are as follows:
During the twelve months ended December 31, 2019, we recognized revenues of $256 that was included in contract liabilities at the beginning of the period.

 |
| table | | As of December 31, |
------------------------------------------------------------------------------------------- | ------------------ | --------
                                                                                | 2019               | 2018
Contract Assets                                                                             |                    |
Prepaid rebates included in Other current assets                                            | $64                | $65
Prepaid rebates included in Other assets                                                    | 1,853              | 999
Total Contract Assets                                                                       | $1,917             | $1,064
Contract Liabilities                                                                        |                    |
Customer discounts and price concessions included in Accrued expenses and other liabilities | $(2,070)           | $(1,656)
Customer rights of return included in Accrued expenses and other liabilities                | (807)              | (325)
Total Contract Liabilities                                                                  | $(2,877)           | $(1,981) |


| _id | d1b37aa18 |
| title |  |
| text | Items Not Resulting in a Deferred Tax Asset
Of the unused tax losses, €187 million (2018: €213 million; 2017: €263 million) relate to U.S. state tax loss carryforwards.
We have not recognized a deferred tax liability on approximately €17.41 billion (2018: €14.04 billion) for undistributed profits of our subsidiaries, because we are in a position to control the timing of the reversal of the temporary difference and it is probable that such differences will not reverse in the foreseeable future.

 |
| table | € millions                                              | 2019  | 2018  | 2017
------------------------------------------------------- | ----- | ----- | ----
Unused tax losses                                       |       |       |
Not expiring                                            | 688   | 575   | 375
Expiring in the following year                          | 63    | 7     | 9
Expiring after the following year                       | 373   | 476   | 535
Total unused tax losses                                 | 1,124 | 1,058 | 919
Deductible temporary differences                        | 538   | 509   | 524
Unused research and development and foreign tax credits |       |       |
Not expiring                                            | 28    | 54    | 38
Expiring in the following year                          | 0     | 0     | 2
Expiring after the following year                       | 17    | 18    | 34
Total unused tax credits                                | 45    | 72    | 74 |


| _id | d1b36d8ae |
| title |  |
| text | The Company currently has one equity compensation plan, the 2007 Stock Compensation Plan, from which it grants equity awards that are used as an incentive for directors, officers, and other employees. The 2007 Stock Compensation Plan has 851,134 shares available for issue as of September 30, 2019. As of September 30, 2019, $2,371,309 of total unrecognized compensation expense related to non-vested awards is expected to be recognized over a period of approximately 4.9 years. The Company recorded related

4.9 years. The Company recorded related compensation expense for the years ended September 30, 2019, 2018, and 2017 of $1,729,025, $2,003,207, and $2,319,975, respectively. For the year ended September 30, 2019, $1,638,829 of this expense was included in selling, general and administrative expense and $90,196 was included in cost of sales. For the year ended September 30, 2018, $1,835,086 of this expense was included in selling, general and administrative expense and $168,121 was included in cost of sales.

and $168,121 was included in cost of sales. For the year ended September 30, 2017, $2,103,621 of this expense was included in selling, general and administrative expense and $216,354 was included in cost of sales.

Stock Options: The Company uses the Black-Scholes option pricing model to determine the weighted average fair value of options granted. During the fiscal year ended September 30, 2019, the Company granted employees non-qualified stock options to purchase an aggregate of 172,000 shares of common stock with a weighted average contractual term of 4 years, a three year vesting term, and a weighted average exercise price of $12.17. During the fiscal year ended September 30, 2018, the Company granted employees

September 30, 2018, the Company granted employees non-qualified stock options to purchase an aggregate of 108,000 shares of common stock with a weighted average contractual term of 4.7 years, a three year vesting term, and a weighted average exercise price of $13.37. There were no stock options granted during the year ended September 30, 2017. The fair value was estimated at the grant date using the assumptions listed below:

The expected stock price volatility is based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected life represents the period of time that options are expected to be outstanding after their grant date. The risk-free interest rate reflects the interest rate at grant date on zero-coupon U.S. governmental bonds having a remaining life similar to the expected option term.

Options are generally granted at fair market values determined on the date of grant and vesting normally occurs over a three to five-year period. However, options granted to directors have a one year vesting period and a six year contractual term. The maximum contractual term is normally six years. Shares issued upon exercise of a stock option are issued from the Company’s authorized but unissued shares. There were 36,000 options vested during the year ended September 30, 2019 and no options vested during

September 30, 2019 and no options vested during the year ended September 30 2018. For the year ended September 30, 2019, there were 6,750 stock options that were exercised using a cashless method of exercise. For the year ended September 30, 2018, there were 2,250 stock options that were exercised using a cashless method of exercise. The intrinsic value of options exercised during the years ended September 30, 2019 and September 30, 2018 was $81,728 and $75,767, respectively.

 |
| table | | Year ended September 30, 2019 | Year ended September 30, 2018
----------------------------------------- | ----------------------------- | -----------------------------
Dividend yield                            | 0%                            | 0%
Weighted average expected volatility      | 37.77%                        | 43.68%
Weighted average risk-free interest rate  | 2.92%                         | 2.70%
Weighted average expected life (in years) | 3.0                           | 3.7
Vesting period (in years)                 | 3.0                           | 3.0 |


| _id | d1b330ab2 |
| title |  |
| text | Stock Option Award Amendment
The Board of Directors has in 2019 amended and restated the 2011 Equity Incentive Plan to reserve an additional 1,000,000 stock options for issuance. The stock options have been allocated amongst management and employees of the Company.
As of December 31, 2019, the Company has granted 755,000 and 234,000 options with vesting over a period of two and three years, respectively, and an exercise price of $4.70 per share.

The Company has used the Black-Scholes option pricing model to measure the grant date fair value of the options with the following assumptions applied to the model;
The expected volatility was based on historical volatility observed from historical company-specific data during the two years prior to the grant date.

The compensation expense related to the stock option awards was $0.1 million for the year ended December 31, 2019 and the remaining unrecognized cost related to non-vested stock options was $0.5 million with a remaining average remaining vesting period of 2.1 years.

 |
| table | | Options with two year vesting | Options with three year vesting
-------------------------------------- | ----------------------------- | -------------------------------
Volatility                             | 57.5%                         | 52.5%
Dividend yield                         | 10.0 %                        | 10.0%
Risk-free interest rate                | 1.64%                         | 1.65%
Weighted-average grant date fair value | $0.59                         | $0.58 |


| _id | d1b3a31ca |
| title |  |
| text | Contractual Obligations and Commercial Commitments
We lease office space and equipment under operating leases that run through October 2028. Additionally, we have entered into a Credit Agreement that matures in April 2024 and have issued Senior Notes that mature in August 2026.
Contractual obligations as of December 31, 2019, are as follows (in thousands):
(1) Based on the Term Loans debt outstanding and interest rate in effect at December 31, 2019, of 4.05%.

(2) Based on Revolving Credit Facility debt outstanding and interest rate in effect at December 31, 2019, of 3.99%.
(3) Based on 2026 Notes issued of $400.0 million with an annual interest rate of 5.750%.

(4) During the year ended December 31, 2019, we financed certain multi-year license agreements for internal-use software for $10.4 million with annual payments through April 1, 2022. As of December 31, 2019, $13.8 million is outstanding under these and other agreements previously entered into, of which $6.0 million and $7.8 million is included in other current liabilities and other noncurrent liabilities, respectively, in our Consolidated Balance Sheet in Part IV, Item 15 of this Form 10-K as of December

Part IV, Item 15 of this Form 10-K as of December 31, 2019.

We are unable to reasonably estimate the ultimate amount or timing of settlement of our reserves for income taxes under ASC 740, Income Taxes. The liability for unrecognized tax benefits at December 31, 2019, is $29.0 million.

 |
| table | |            |                  | Payments Due by Period |           |
-------------------------------------- | ---------- | ---------------- | ---------------------- | --------- | -----------------
                                       | Total      | Less than 1 year | 1-3 years              | 3-5 years | More than 5 years
Operating lease obligations            | $ 70,284   | $ 17,180         | $ 23,116               | $ 12,738  | $ 17,250
Term loans                             | 756,060    | 38,950           | 89,381                 | 627,729   | —
Term loans interest (1)                | 117,168    | 30,025           | 55,232                 | 31,911    | —
Revolving credit facility              | 239,000    | —                | —                      | 239,000   | —
Revolving credit facility interest (2) | 40,528     | 9,536            | 19,072                 | 11,920    | —
Senior notes                           | 400,000    | —                | —                      | —         | 400,000
Senior notes interest (3)              | 149,500    | 23,000           | 46,000                 | 46,000    | 34,500
Financed internal-use software (4)     | 13,822     | 5,974            | 7,848                  | —         | —
Total                                  | $1,786,362 | $124,665         | $240,649               | $969,298  | $451,750 |


| _id | d1b36087a |
| title |  |
| text | NAVIOS MARITIME HOLDINGS INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in thousands of U.S. dollars — except share data)
NOTE 18: INTEREST EXPENSE AND FINANCE COST
Interest expense and finance cost consisted of the following:

 |
| table | | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017
------------------------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------
Interest expense                                       | $125,496                             | $129,941                             | $115,099
Amortization and write-off of deferred financing costs | 7,746                                | 7,866                                | 6,391
Other                                                  | 237                                  | 109                                  | 121
Interest expense and finance cost                      | $133,479                             | $137,916                             | $121,611 |


| _id | d1b30c32e |
| title |  |
| text | ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)

The Company’s effective tax rate differs from the U.S. federal statutory rate of 35% for the year ended December 31, 2017, primarily due to the benefit related to the wind down of our solar inverter business and earnings in foreign jurisdictions, which are subject to lower tax rates, offset by the impact of U.S. tax reform. The principal causes of the difference between the federal statutory rate and the effective income tax rate for each the years below are as follows:

 |
| table | |          | Years Ended December 31, |
------------------------------------------------------- | -------- | ------------------------ | --------
                                                        | 2019     | 2018                     | 2017
Income taxes per federal statutory rate                 | $14,111  | $36,199                  | $69,348
State income taxes, net of federal deduction            | 10       | 2,372                    | 1,794
Transition tax - U.S. Tax Reform                        | —        | 1,174                    | 61,690
Corporate tax rate changes - U.S. Tax Reform            | —        | (652)                    | 11,177
Tax benefit associated with inverter business wind down | —        | —                        | (33,837)
Stock based compensation                                | (97)     | (974)                    | (5,263)
GILTI Tax                                               | 8,796    | 13,064                   | —
Tax effect of foreign operations                        | (13,086) | (19,162)                 | (47,482)
Uncertain tax position                                  | (4,487)  | (3,088)                  | 4,948
Unremitted earnings                                     | 1,624    | 2,564                    | —
Tax credits                                             | (6,280)  | (9,844)                  | (658)
Change in valuation allowance                           | 7,222    | (1,306)                  | 841
Withholding taxes                                       | 6,500    | 1,371                    | —
Other permanent items, net                              | (3,614)  | 3,509                    | (468)
Total provision for income taxes                        | $10,699  | $25,227                  | $62,090 |


| _id | d1a71f2f0 |
| title |  |
| text | A discussion of operating income by reportable segment is presented below (in millions):
AMER. Operating income increased $19.2 million in fiscal 2019 as compared to fiscal 2018, primarily as a result of the increase in net sales and a positive shift in customer mix, partially offset by increased fixed costs to support new program ramps.

APAC. Operating income decreased $5.7 million in fiscal 2019 as compared to fiscal 2018, primarily as a result of a negative shift in customer mix and increased fixed costs to support new program ramps, partially offset by the increase in net sales.
EMEA. Operating income increased $3.0 million in fiscal 2019 as compared to fiscal 2018 primarily as a result of the increase in net sales and a positive shift in customer mix, partially offset by increased fixed costs to support new program ramps.

Other expense. Other expense for fiscal 2019 increased $5.4 million as compared to fiscal 2018. The increase in other expense for fiscal 2019 was primarily due to a $2.7 million decrease in interest income as a result of lower cash balances and a $1.5 million increase in factoring fees related to the Company's accounts receivable sale programs.

 |
| table | | 2019    | 2018
-------------------------- | ------- | -------
Operating income (loss):   |         |
AMER                       | $57.8   | $38.6
APAC                       | 208.2   | 213.9
EMEA                       | 4.5     | 1.5
Corporate and other costs  | (128.4) | (135.7)
Total operating income     | $142.1  | $118.3 |


| _id | d1b34adcc |
| title |  |
| text | General and Administrative Expenses: General and administrative expenses primarily consist of personnel related expenditures for IT, finance, legal and human resources support functions; and professional services fees.
(1) Excluding stock-based compensation
Excluding the effects of currency rate fluctuations, total general and administrative expenses increased in fiscal 2019 compared to fiscal 2018 primarily due to increased professional services fees

 |
| table | Year Ended May 31,             |        |        |                |
------------------------------ | ------ | ------ | -------------- | ------
                               |        |        | Percent Change |
(Dollars in millions)          | 2019   | Actual | Constant       | 2018
General and administrative (1) | $1,093 | -1%    | 2%             | $1,102
Stock-based compensation       | 172    | -5%    | -5%            | 180
Total expenses                 | $1,265 | -1%    | 1%             | $1,282
% of Total Revenues            | 3%     |        |                | 3% |


| _id | d1b38c1b4 |
| title |  |
| text | The following table summarizes the activity related to the Company's gross unrecognized tax benefits from April 1, 2016 to March 31, 2019 (amounts in millions):

As of March 31, 2019 and March 31, 2018, the Company had accrued interest and penalties related to tax contingencies of $88.1 million and $80.8 million, respectively. Interest and penalties charged to operations for the years ended March 31, 2018 and 2017 related to the Company's uncertain tax positions were $5.4 million and $5.8 million, respectively. Previously accrued interest and penalties that were released during the year ended March 31, 2019 were $37.5 million.

The total amount of gross unrecognized tax benefits was $763.4 million and $436.0 million as of March 31, 2019 and March 31, 2018, respectively, of which $664.4 million and $436.0 million is estimated to impact the Company's effective tax rate, if recognized. The Company estimates that it is reasonably possible unrecognized tax benefits as of March 31, 2019 could decrease by approximately $50.0 million in the next 12 months. Positions that may be resolved include various U.S. and non-U.S. matters.

 |
| table | |        | Year Ended March 31, |
--------------------------------------------------------- | ------ | -------------------- | ------
                                                          | 2019   | 2018                 | 2017
Beginning balance                                         | $436.0 | $398.5               | $220.7
Increases related to acquisitions                         | 329.7  | —                    | 193.3
Decreases related to settlements with tax authorities     | (8.3)  | (0.1)                | (11.7)
Decreases related to statute of limitation expirations    | (16.2) | (10.9)               | (7.6)
Increases related to current year tax positions           | 27.8   | 30.3                 | 26.3
Increases (decreases) related to prior year tax positions | (5.6)  | 18.2                 | (22.5)
Ending balance                                            | $763.4 | $436.0               | $398.5 |


| _id | d1b3ae390 |
| title |  |
| text | Restatement – changes to the presentation of financial income and expenses
Due to the significant variations in SEK exchange rates during the year, the Company has considered the change in reporting of foreign exchange effect to reflect how foreign exchange transaction risk is managed on a net basis in the Company. Previously foreign exchange effects were reported within both financial income and financial expenses depending on whether they relate to assets or liabilities.

In note F2, “Financial income and expenses,” the foreign exchange effect is now presented as a net amount, reported separately from other financial income and expenses items. The comparative years 2018 and 2017 have been
restated to reflect the new presentation of Financial income and expenses, net. The restatement does not impact the total net financial income and expenses reported in prior years.
The following table shows the impact of the restatement:

In line with this change the Company also elected to present all financial income and expenses, including the foreign exchange effect, on the income statement as a single line item Financial income and expenses, net. Previously,
financial income and financial expenses were presented as separate line items on the income statement. The income statement for all comparative years 2018 and 2017 have been restated to reflect the new presentation of Financial
income and expenses, net.

 |
| table | Financial income and expenses         |         |
------------------------------------- | ------- | -------
SEK million                           | 2018    | 2017
Reported in prior years               |         |
Reported in prior years               | –316    | –372
Financial expenses                    | –2,389  | –843
Total                                 | –2,705  | –1,215
SEK million                           | 2018    | 2017
Restated                              |         |
Financial income                      | 151     | –50
Financial expenses                    | –2,032  | –1,570
Net foreign exchange gains and losses | –824    | 405
Total                                 | -2,705  | –1,215 |


| _id | d1b2fb948 |
| title |  |
| text | Note: The Company adopted IFRS 16 on January 1, 2019. The Company elected not to restate prior periods in accordance with the transition provision in IFRS 16.
Financial risk management objectives and policies
The Company’s risk management objectives are to manage the market risk, credit risk and liquidity risk related to its operating activities. The Company identifies, measures and manages the aforementioned risks based on policy and risk preference.

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant financial activities, approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

 |
| table | Financial Assets                                                  | As of December 31, |
----------------------------------------------------------------- | ------------------ | --------------
                                                                  | 2018               | 2019
                                                                  | NT$                | NT$
                                                                  | (In Thousands)     | (In Thousands)
Financial assets at fair value through profit or loss             | $12,084,297        | $14,021,473
Financial assets at fair value through other comprehensive income | 11,585,477         | 14,723,232
Financial assets measured at amortized cost                       |                    |
Cash and cash equivalents (excludes cash on hand)                 | 83,655,648         | 95,486,403
Receivables                                                       | 24,583,451         | 26,459,392
Refundable deposits                                               | 2,757,399          | 2,600,733
Other financial assets                                            | 2,320,037          | 2,353,066
Total                                                             | $136,986,309       | $155,644,299
Financial Liabilities                                             | As of December 31, |
                                                                  | 2018               | 2019
                                                                  | NT$                | NT$
                                                                  | (In Thousands)     | (In Thousands)
Financial liabilities measured at amortized cost                  |                    |
Short-term loans                                                  | $13,103,808        | $12,015,206
Payables                                                          | 23,559,548         | 27,433,065
Guarantee deposits (current portion included)                     | 665,793            | 296,694
Bonds payable (current portion included)                          | 41,378,182         | 38,781,416
Long-term loans (current portion included)                        | 30,826,215         | 33,902,074
Lease liabilities (Note)                                          | —                  | 6,031,025
Other financial liabilities                                       | 20,523,099         | 20,093,441
Total                                                             | $130,056,645       | $138,552,921 |


| _id | d1b3c52c0 |
| title |  |
| text | Components of the net deferred income tax assets are as follows:

In fiscal years 2019 and 2018, the Company continued to maintain a full valuation allowance on deferred tax assets. The valuation allowance increased by $1.7 million in fiscal year 2019. The Company recorded an income tax expense from continuing operations of $39,000 in fiscal year 2019. In fiscal year 2018, the Company recorded an income tax benefit from continuing operations of $597,000. The fiscal year 2018 income tax benefit was due primarily from the release of the tax valuation allowance associated

release of the tax valuation allowance associated with previously generated alternative minimum tax (AMT) credits due to the December 22, 2017 Tax Cuts and Jobs Act Tax Reform (the “Tax Act”).

The Company has, on a tax-effected basis, approximately $0.8 million in tax credit carryforwards and $26.9 million of federal net operating loss carryforwards that are available to offset taxable income in the future. The tax credit carryforwards will begin to expire in fiscal year 2021. The federal net operating loss carryforwards begin to expire in fiscal year 2022. State tax credit carryforwards and net operating loss carryforwards, on a tax effected basis and net of federal tax benefits, are $0.1

basis and net of federal tax benefits, are $0.1 million and $8.1 million, respectively. The remaining state tax credit carryforwards and state net operating loss carry forwards begin to expire in fiscal year 2020. In fiscal year 2019, $1.2 million of state net operating loss carryforwards expired.

 |
| table | | March 31, |
----------------------------------- | --------- | --------
(in thousands)                      | 2019      | 2018
Deferred income tax assets:         |           |
Allowance for doubtful accounts     | $26       | $24
Foreign tax credit carryforward     | 810       | 812
Depreciation                        | 173       | 227
Deferred revenue                    | 425       | 675
Accrued compensation                | 412       | 358
Inventory reserves                  | 757       | 948
Accrued warranty                    | 33        | 77
Net operating loss carryforward     | 35,024    | 34,924
Accrued restructuring               | —         | 16
Intangibles and goodwill            | 272       | —
Other                               | 839       | 660
Gross deferred tax assets           | 38,771    | 38,721
Valuation allowance                 | (38,771)  | (37,103)
Net deferred income tax assets      | —         | 1,618
Deferred income tax liabilities:    |           |
Intangibles and goodwill            | —         | (1,618)
Net deferred income tax liabilities | $—        | $— |


| _id | d1a73b46e |
| title |  |
| text | 5.2 Employee share plans (continued)
Shares issued under the FY2019, FY2018 and FY2017 Performance Rights plans
For the purposes of Sections 200B and 200E of the Corporations Act, iSelect shareholders have approved the giving of any potential benefits under the Performance Rights Plan provided in connection with any future retirement of a participant who holds a ‘managerial or Executive office’ such that for the purposes of the provisions, those benefits will not be included in the statutory limit.

Change in control
Upon a ‘change of control’, the Board has discretion to determine that some or all of the participants’ Performance Rights vest immediately.
FY2018 Performance Rights Plan
The following table illustrates the number of, and movements in, shares issued during the year:

 |
| table | | 2019 NUMBER | 2018 NUMBER
------------------------------------------ | ----------- | -----------
Outstanding at the beginning of the period | 547,949     | -
Granted during the period                  | -           | 772,303
Forfeited during the period                | (140,687)   | (224,354)
Exercised during the period                | -           | -
Outstanding at the end of the period       | 407,262     | 547,949 |


| _id | d1b310cd0 |
| title |  |
| text | NOTE 4 - PREPAID EXPENSES AND OTHER CURRENT ASSETS & PATENTS AND INTANGIBLE ASSETS
Prepaid Expenses and Other Current Assets
The components of prepaid expenses and other current assets are as presented below:
During 2019, tax refunds from the Internal Revenue Service of $5.0 million were received for the prepayment made during 2018.

 |
| table | | As of December 31, |
----------------------------------------------- | ------------------ | ------
                                                | 2019               | 2018
                                                | (in thousands)     |
Prepaid income taxes                            | $—                 | $5,429
Other prepaid expenses and other current assets | 288                | 1,151
                                                | $288               | $6,580 |


| _id | d1b2f364e |
| title |  |
| text | The director compensation policies summarized above resulted in the following total compensation for our non-management directors in fiscal year 2019:
Director Compensation Table
(1) Oleg Khaykin, President and Chief Executive Officer, is not included in this table as he was an employee of the Company and as such received no compensation for his services as a director. His compensation is disclosed in the Summary Compensation Table.

(2) The amounts shown in this column represent the grant date fair values of RSUs issued pursuant to the Company’s 2003 Equity Incentive Plan, computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 (“FASB ASC Topic 718”), excluding the effect of estimated forfeitures. There can be no assurance that these grant date fair values will ever be realized by the non-employee directors. For information regarding the number of unvested RSUs held by each

the number of unvested RSUs held by each non-employee director as of the end of fiscal year 2019, see the column “Unvested Restricted Stock Units Outstanding” in the table below

 |
| table | DIRECTOR COMPENSATION |                                 |                      |
--------------------- | ------------------------------- | -------------------- | ---------
Name (1)              | Fees Earned or Paid in Cash ($) | Stock Awards ($) (2) | Total ($)
Keith Barnes          | 102,500                         | 178,317              | 280,817
Richard E. Belluzzo   | 160,000                         | 178,317              | 338,317
Laura Black           | 67,500                          | 178,317              | 245,817
Tor Braham            | 67,500                          | 178,317              | 245,817
Timothy Campos        | 77,500                          | 178,317              | 255,817
Donald Colvin         | 97,500                          | 178,317              | 275,817
Masood A. Jabbar      | 90,000                          | 178,317              | 268,317 |


| _id | d1b3a5e20 |
| title |  |
| text | NOTE 15 — LEASES
We have operating and finance leases for datacenters, corporate offices, research and development facilities, retail stores, and certain equipment. Our leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year.
The components of lease expense were as follows:

 |
| table | (In millions)                       |          |          |
----------------------------------- | -------- | -------- | --------
Year Ended June 30,                 | 2019     | 2018     | 2017
Operating lease cost                | $  1,707 | $  1,585 | $  1,412
Finance lease cost:                 |          |          |
Amortization of right-of-use assets | $ 370    | $ 243    | $ 104
Interest on lease liabilities       | 247      | 175      | 68
Total finance lease cost            | $617     | $418     | $172 |


| _id | d1b2fdc34 |
| title |  |
| text | NOTE 9—PROPERTY, PLANT AND EQUIPMENT
Significant components of property, plant and equipment are as follows (in thousands):
In fiscal 2019, we entered into agreements related to the construction and leasing of two buildings on our existing corporate campus in San Diego, California. Under these agreements, a financial institution will own the buildings, and we will lease the property for a term of five years upon their completion.

In the third quarter of fiscal 2019 we sold the land and buildings comprising our separate CTS campus in San Diego. We have entered into a lease with the buyer of this campus and CTS employees will continue to occupy this separate campus until the new buildings on our corporate campus are ready for occupancy in fiscal 2021. In the third quarter of fiscal 2019 we also sold land and buildings in Orlando, Florida and we are entering a lease for new space in Orlando to accommodate our employees and operations

to accommodate our employees and operations in Orlando. In connection with the sale of these real estate campuses we received total net proceeds of $44.9 million and recognized net gains on the sales totaling $32.5 million.

As a part of our efforts to upgrade our current information systems, early in fiscal 2015 we purchased new enterprise resource planning (ERP) software and began the process of designing and configuring this software and other software applications to manage our operations.

Costs incurred in the development of internal-use software and software applications, including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software development, are capitalized as computer software costs. Costs incurred outside of the application development stage, or that are types of costs that do not meet the capitalization requirements, are expensed as incurred. Amounts capitalized are included in property, plant and equipment and

are included in property, plant and equipment and are amortized on a straight-line basis over the estimated useful life of the software, which ranges from three to seven years. No amortization expense is recorded until the software is ready for its intended use.

Through September 30, 2019 we have incurred costs of $138.9 million related to the purchase and development of our ERP system, including $3.1 million, $22.5 million, and $40.6 million of costs incurred during fiscal years 2019, 2018 and 2017, respectively. We have capitalized $1.6 million, $7.5 million, and $16.7 million of qualifying software development costs as internal-use software development in progress during fiscal years 2019, 2018, and 2017, respectively. We have recognized expense for $1.5

respectively. We have recognized expense for $1.5 million, $15.0 million, and $23.9 million of these costs in fiscal years 2019, 2018, and 2017, respectively, for costs that did not qualify for capitalization. Amounts that were expensed in connection with the development of these systems are classified within selling, general and administrative expenses in the Consolidated Statements of Operations.

Various components of our ERP system became ready for their intended use and were placed into service at various times from fiscal 2016 through fiscal 2019. As each component became ready for its intended use, the component’s costs were transferred into completed software and we began amortizing these costs over their seven-year estimated useful life using the straight-line method. We continue to capitalize costs associated with the development of other ERP components that are not yet ready for their

ERP components that are not yet ready for their intended use.

Our provisions for depreciation of plant and equipment and amortization of leasehold improvements and software amounted to $22.6 million, $19.5 million and $17.8 million in 2019, 2018 and 2017, respectively. Generally, we use straight-line methods for depreciable real property over estimated useful lives ranging from 15 to 39 years or for leasehold improvements, the term of the underlying lease if shorter than the estimated useful lives. We typically use accelerated methods (declining balance) for

use accelerated methods (declining balance) for machinery and equipment and software other than our ERP system over estimated useful lives ranging from 5 to 10 years.

 |
| table | |            | September 30,
-------------------------------------------------------------- | ---------- | -------------
                                                               | 2019       | 2018
Land and land improvements                                     | $  7,348   | $  13,132
Buildings and improvements                                     | 48,191     | 57,959
Machinery and other equipment                                  | 107,297    | 81,727
Software                                                       | 108,526    | 84,631
Leasehold improvements                                         | 17,064     | 11,991
Construction and internal-use software development in progress | 16,814     | 12,888
Accumulated depreciation and amortization                      | (160,271)  | (144,782)
                                                               | $  144,969 | $  117,546 |


| _id | d1b324ed8 |
| title |  |
| text | Lease liabilities regarding right-of-use assets are included on the balance sheet under “Borrowings”.
Extension and termination options are included in several leases in order to optimize operational flexibility in terms of managing contracts. The lease term determined by TORM is the noncancellable period of a lease, together with any extension/termination options if these are/are not reasonably certain to be exercised.

 |
| table | USDm                                                            | 2019 | 2018
--------------------------------------------------------------- | ---- | ----
Maturity analysis - contractual undiscounted cash flow          |      |
Less than one year                                              | 7.5  | 5.2
One to five years                                               | 27.6 | 25.6
More than five years                                            | 0.1  | -
Total undiscounted lease liabilities as of 31 December          | 35.2 | 30.8
Lease liabilities included under "Borrowings" as of 31 December | 30.6 | 25.3
Non-current                                                     | 10.2 | 3.2
Current                                                         | 20.4 | 22.1 |


| _id | d1b3598ae |
| title |  |
| text | Standard & Poor's Rating Services', a Standard & Poor's Financial Services LLC business ("S&P"), corporate credit rating is "BBB." Moody’s Investor Service, Inc.'s ("Moody's") applicable rating is "Baa2." Fitch Ratings', a wholly owned subsidiary of Fimlac, S.A. ("Fitch"), applicable rating is "BBB." The below table outlines the fees paid on the unused portion of the facility ("Facility Fee Rate") and letter of credit fees and borrowings ("Undrawn Letter of Credit Fee and Borrowing Spread") that corresponds

Fee and Borrowing Spread") that corresponds to the applicable rating levels from S&P, Moody's and Fitch.

In the event the rating levels are split, the applicable fees and spread will be based upon the rating level in effect for two of the rating agencies, or, if all three rating agencies have different rating levels, the applicable fees and spread will be based upon the rating level that is between the rating levels of the other two rating agencies.

 |
| table | Ratings Level (S&P/Moody's/Fitch) | Facility Fee Rate | All-in Borrowing Spread
--------------------------------- | ----------------- | -----------------------
A-/A3/A- or above                 | 0.090%            | 1.000%
BBB+/Baa1/BBB+                    | 0.100%            | 1.125%
BBB/Baa2/BBB (current level)      | 0.125%            | 1.250%
BBB-/Baa3/BBB-                    | 0.175%            | 1.375%
BB+/Ba1/BB+ or lower              | 0.225%            | 1.625% |


| _id | d1b3183d6 |
| title |  |
| text | NOTE 14 – MAJOR CUSTOMERS AND VENDORS (CONTINUED)
Our accounts receivable includes 3 customers that individually make up more than 10% of our accounts receivable at December 31, 2019 in the percentages of 17.8%, 15.4% and 13.3%.
The Company had four key partners through which 10% or greater of its revenue was generated in either 2019 or 2018 as set forth below. The amounts in the table below reflect the amount of revenue generated through those customers.

 |
| table | | 2019      |      | 2018      |
----------- | --------- | ---- | --------- | ----
            | $         | %    | $         | %
Partner A   | 1,315,706 | 5.3  | 6,841,386 | 32.3
Partner B   | 9,210,347 | 37.4 | 5,350,393 | 25.2
Partner C   | 4,051,217 | 16.5 | 2,584,103 | 12.2
Partner D   | 1,007,573 | 4.1  | 2,159,356 | 10.2 |