| _id | d1b382eac |
| title |  |
| text | Deferred Tax Assets and Valuation Allowance

Deferred tax assets reflect the tax effects of net operating losses (“NOLs”), tax credit carryovers, and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The most significant item of our deferred tax assets is derived from our Federal NOLs. We have approximately $167.8 million gross Federal NOLs at December 31, 2019 (of which approximately $160.2 million was generated prior to January 1, 2018).

million was generated prior to January 1, 2018). Because we believe the ability for us to use these NOLs generated prior to January 1, 2018 to offset any future taxable income is severely limited as prescribed under Internal Revenue Code (“IRC”) Section 382, we had estimated and recorded an amount for the likely limitation to our deferred tax asset in the fourth quarter of 2017, thereby reducing the aggregate estimated benefit of the Federal NOLs available to us of approximately $1.0 million at December

to us of approximately $1.0 million at December 31, 2017. We believe the gross Federal NOL benefit we generated prior to January 1, 2018 to offset taxable income is less than $150 thousand annually. As prescribed under Internal Revenue Code, any unused Federal NOL benefit from the annual limitation can be accumulated and carried forward to the subsequent year and will expire if not used in accordance with the NOL carried forward term of 20 years or 2037, if generated before 2018 and Federal NOLs generated

generated before 2018 and Federal NOLs generated after 2017 can be carried forward indefinitely. Future common stock transactions, such as the exercise of common stock purchase warrants or the conversion of debt into common stock, may cause another qualifying event under IRC 382 which may further limit our utilization of our NOLs.

The components of our deferred tax assets are as follows (in thousands):

The realization of deferred income tax assets is dependent upon future earnings, if any, and the timing and amount of which may be uncertain. A valuation allowance is required against deferred income tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred income tax assets may not be realized. At both December 31, 2019 and 2018, all our remaining net deferred income tax assets were offset by a valuation allowance due to uncertainties with

a valuation allowance due to uncertainties with respect to future utilization of NOL carryforwards. If in the future it is determined that additional amounts of our deferred income tax assets would likely be realized, the valuation allowance would be reduced in the period in which such determination is made and an additional benefit from income taxes in such period would be recognized.

 |
| table | |         | December 31,
------------------------------------ | ------- | ------------
                                     | 2019    | 2018
Deferred tax assets:                 |         |
Estimated future value of NOLs       |         |
- Federal                            | $2,622  | $2,174
- State                              | 869     | 862
Research and development tax credits |         |
- Federal                            | 1,207   | 1,184
- State                              | 8       | -
Share-based compensation             | 72      | 71
Other, net                           | 177     | 151
Total deferred taxes                 | 4,955   | 4,442
Valuation allowance                  | (4,955) | (4,442)
Net deferred tax assets              | $-      | $- |


| _id | d1b393784 |
| title |  |
| text | Restricted Stock Units
The 2013 Plan provides for the issuance of RSUs to employees, directors, and consultants. RSUs issued under the 2013 Plan generally vest over four years. A summary of activity of RSUs under the 2013 Plan at December 31, 2019 and changes during the periods then ended is presented in the following table:

As of December 31, 2019 and 2018, there was a total of $198.3 million and $107.9 million of unrecognized share-based compensation expense, net of estimated forfeitures, related to RSUs, which will be recognized on a straight-line basis over the remaining weighted-average vesting periods of approximately 2.3 years and 2.4 years, respectively.

 |
| table | | Number of RSUs Outstanding (in thousands) | Weighted- Average Grant Date Fair Value Per Share | Aggregate Intrinsic Value (in thousands)
-------------------------------- | ----------------------------------------- | ------------------------------------------------- | ----------------------------------------
Outstanding at December 31, 2016 | 3,554                                     | $18.01                                            | $73,261
Granted                          | 3,005                                     | 30.20                                             |
Released                         | (1,680)                                   | 19.54                                             |
Canceled/Forfeited               | (598)                                     | 20.91                                             |
Outstanding at December 31, 2017 | 4,281                                     | $25.51                                            | $207,197
Granted                          | 1,746                                     | 67.64                                             |
Released                         | (1,971)                                   | 30.50                                             |
Canceled/Forfeited               | (495)                                     | 34.99                                             |
Outstanding at December 31, 2018 | 3,561                                     | $42.09                                            | $293,523
Granted                          | 2,069                                     | 122.35                                            |
Released                         | (1,906)                                   | 50.99                                             |
Canceled/Forfeited               | (475)                                     | 60.38                                             |
Outstanding at December 31, 2019 | 3,249                                     | $85.39                                            | $548,145 |


| _id | d1a728c1a |
| title |  |
| text | (b) Revenue for Groups of Similar Products and Services
We design, manufacture, and sell IP-based networking and other products related to the communications and IT industry and provide services associated with these products and their use.
The following table presents revenue for groups of similar products and services (in millions):
(1) Includes SPVSS business revenue of $168 million and $903 million for fiscal 2019 and 2018, respectively.

 |
| table | Years Ended                 | July 27, 2019 | July 28, 2018 | July 29, 2017
--------------------------- | ------------- | ------------- | -------------
Revenue:                    |               |               |
Infrastructure Platforms  . | $30,191       | $28,322       | $27,817
Applications .              | 5,803         | 5,036         | 4,568
Security                    | 2,730         | 2,352         | 2,152
Other Products .            | 281           | 999           | 1,168
Total Product  .            | 39,005        | 36,709        | 35,705
Services                    | 12,899        | 12,621        | 12,300
Total (1)                   | $51,904       | $49,330       | $48,005 |


| _id | d1b3c043c |
| title |  |
| text | The components of the deferred income tax assets are as follows:

At December 31, 2019, the Company had federal, state and foreign tax net operating loss carryforwards of approximately $269.3 million, $86.4 million and $11.7 million, respectively. The federal, state and foreign tax loss carryforwards will begin to expire in2 020, 2020 and 2026 respectively, unless previously utilized. At December 31, 2019, the Company had federal, state and foreign tax credit carryforwards of approximately $41.8 million, $86.3 million and $5.7 million, respectively. The federal and

and $5.7 million, respectively. The federal and foreign tax credit carryforwards will begin to expire in 2023 and 2024 respectively, unless previously utilized. The state tax credit carryforwards do not expire. The Company also has foreign incentive deductions of approximately $24.5 million that do not expire.

In addition, the Company has $0.3 million of federal alternative minimum tax credit carryforwards that will be refundable in future years, due to the Tax Cuts and Jobs Act described below.

The Company utilizes the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the temporary differences reverse. The Company records a valuation allowance to reduce its deferred taxes to the amount it believes is more likely than not to be realized. In making such determination, the Company

In making such determination, the Company considers all available positive and negative evidence quarterly, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Forming a conclusion that a valuation allowance is not required is difficult when there is negative evidence such as cumulative losses in recent years. Based upon the Company's review of all positive and negative evidence, the Company released $51.2

and negative evidence, the Company released $51.2 million in valuation allowance against certain of its deferred tax assets in 2017. In 2018, the Company released an additional $11.3 million of its valuation allowance as a result of completing its analysis of the effects of the Tax Act. The Company continues to maintain a valuation allowance on its state deferred taxes, certain of its federal deferred tax assets, and certain foreign deferred tax assets in jurisdictions where the Company has cumulative

in jurisdictions where the Company has cumulative losses or otherwise is not expected to utilize certain tax attributes. The Company does not incur expense or benefit in certain tax-free jurisdictions in which it operates.

The income tax benefit for the year ended December 31, 2019 primarily related to the mix of pre-tax income among jurisdictions, discrete tax benefits related to stockbased compensation, and release of certain reserves for uncertain tax positions under ASC 740-10.

The income tax benefit for the year ended December 31, 2018 primarily related to a partial release of the Company's valuation allowance and the mix of pre-tax income among jurisdictions, excess tax benefits related to stock-based compensation, and release of uncertain tax positions under ASC 740-10.

 |
| table | | 2019           | 2018
-------------------------------- | -------------- | --------
                                 | (in thousands) |
Deferred tax assets:             |                |
Net operating loss carryforwards | $65,477        | $64,887
Research and development credits | 80,404         | 75,032
Accrued expenses and other       | 7,768          | 7,965
Lease obligation                 | 2,047          | —
Accrued compensation             | 1,441          | 2,504
Stock-based compensation         | 3,460          | 2,550
                                 | 160,597        | 152,938
Less valuation allowance         | (77,957)       | (79,196)
                                 | 82,640         | 73,742
Deferred tax liabilities:        |                |
Fixed assets                     | (246)          | (1,391)
Leased right-of-use assets       | (1,483)        | —
Intangible assets                | (13,627)       | (20,833)
Net deferred tax assets          | $67,284        | 51,518 |


| _id | d1b33829e |
| title |  |
| text | Long-term state receivables include receivables related to funding and receivables related to tax refund. Funding are mainly public grants to be received from governmental agencies in Italy and France as part of longterm research and development, industrialization and capital investment projects. Long-term receivables related to tax refund correspond to tax benefits claimed by the Company in certain of its local tax jurisdictions, for which collection is expected beyond one year.

In 2019 and 2018, the Company entered into a factoring transaction to accelerate the realization in cash of some non-current assets. As at December 31, 2019, $131 million of the non-current assets were sold without recourse, compared to $122 million as at December 31, 2018, with a financial cost of less than $1 million for both periods.
Other non-current assets consisted of the following:

 |
| table | | December 31, 2019 | December 31, 2018
------------------------------------- | ----------------- | -----------------
Equity securities                     | 23                | 19
Long-term state receivables           | 358               | 391
Deposits and other non-current assets | 56                | 42
Total                                 | 437               | 452 |


| _id | d1b3aa632 |
| title |  |
| text | Accumulated other comprehensive income (loss)
Components and activities of AOCI, net of tax, were as follows:

During fiscal 2018, a net foreign currency translation loss of $8 million related to foreign entities sold in the divestiture of our WSS and PKI solutions was reclassified to Gain on divestiture, and a net gain of $3 million related to liquidated foreign entities was reclassified to Other income (expense), net. A realized gain of $7 million on securities sold in connection with the divestiture of our WSS and PKI solutions was reclassified to Gain on divestiture. The tax effect of $3 million was

on divestiture. The tax effect of $3 million was reclassified to Income tax expense (benefit).

 |
| table | (In millions)                                              | Foreign Currency Translation Adjustments | Unrealized Gain (Loss) On Available- For-Sale Securities | Equity Method Investee | Total AOCI
---------------------------------------------------------- | ---------------------------------------- | -------------------------------------------------------- | ---------------------- | ----------
Balance as of March 31, 2017                               | $7                                       | $5                                                       | $—                     | $12
Other comprehensive loss before reclassifications          | (4)                                      | (5)                                                      | —                      | (9)
Reclassification to net income (loss)                      | 5                                        | (4)                                                      | —                      | 1
Balance as of March 30, 2018                               | 8                                        | (4)                                                      | —                      | 4
Other comprehensive income (loss) before reclassifications | (13)                                     | 3                                                        | (1)                    | (11)
Balance as of March 29, 2019                               | $(5)                                     | $(1)                                                     | $(1)                   | $(7) |


| _id | d1a71d310 |
| title |  |
| text | (8) LONG-TERM DEBT

On September 23, 2016, Roper entered into a five-year $2.5 billion unsecured credit facility, as amended December 2, 2016, (the “2016 Facility”) with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders, which replaced its previous $1.85 billion unsecured credit facility dated as of July 27, 2012, as amended as of October 28, 2015 (the “2012 Facility”). The 2016 Facility comprises a five year $2.5 billion revolving credit facility, which includes availability of up to $150.0 for

which includes availability of up to $150.0 for letters of credit. Roper may also, subject to compliance with specified conditions, request term loans or additional revolving credit commitments in an aggregate amount not to exceed $500.0. At December 31, 2019, there were $0.0 of outstanding borrowings under the 2016 Facility.

The 2016 Facility contains affirmative and negative covenants which, among other things, limit Roper’s ability to incur new debt, enter into certain mergers and acquisitions, sell assets and grant liens, make restricted payments (including the payment of dividends on our common stock) and capital expenditures, or change its line of business. Roper is also subject to financial covenants which require the Company to limit its consolidated total leverage ratio and to maintain a consolidated interest coverage

and to maintain a consolidated interest coverage ratio. The most restrictive covenant is the consolidated total leverage ratio which is limited to 3.50 to 1.

The 2016 Facility provides that the consolidated total leverage ratio may be increased, no more than twice during the term of the 2016 Facility, to 4.00 to 1 for a consecutive four quarter fiscal period per increase (or, for any portion of such four quarter fiscal period in which the maximum would be 4.25 to 1). In conjunction with the Deltek acquisition in December of 2016, we increased the maximum consolidated total leverage ratio covenant to 4.25 to 1 through June 30, 2017 and 4.00 to 1 through December

June 30, 2017 and 4.00 to 1 through December 31, 2017.

The Company was in compliance with its debt covenants throughout the years ended December 31, 2019 and 2018.

On August 26, 2019, the Company completed a public offering of $500.0 aggregate principal amount of 2.35% senior unsecured notes due September 15, 2024 and $700.0 aggregate principal amount of 2.95% senior unsecured notes due September 15, 2029 (the “2019 Offering”). The notes bear interest at a fixed rate and are payable semi-annually in arrears on March 15 and September 15 of each year, beginning March 15, 2020. The net proceeds were used to fund a portion of the purchase of iPipeline Holdings, Inc.

On August 28, 2018, the Company completed a public offering of $700.0 aggregate principal amount of 3.65% senior unsecured notes due September 15, 2023 and $800.0 aggregate principal amount of 4.20% senior unsecured notes due September 15, 2028 (the “2018 Offering”). The notes bear interest at a fixed rate and are payable semi-annually in arrears on March 15 and September 15 of each year, beginning March 15, 2019.

On December 19, 2016, the Company completed a public offering of $500.0 aggregate principal amount of 2.80% senior unsecured notes due December 15, 2021 and $700.0 aggregate principal amount of 3.80% senior unsecured notes due December 15, 2026. The notes bear interest at a fixed rate and are payable semi-annually in arrears on June 15 and December 15 of each year, beginning June 15, 2017.

On December 7, 2015, the Company completed a public offering of $600.0 aggregate principal amount of 3.00% senior unsecured notes due December 15, 2020 and $300.0 aggregate principal amount of 3.85% senior unsecured notes due December 15, 2025. The notes bear interest at a fixed rate and are payable semi-annually in arrears on June 15 and December 15 of each year, beginning June 15, 2016.

On November 21, 2012, the Company completed a public offering of $500.0 aggregate principal amount of 3.125% senior unsecured notes due November 15, 2022. The notes bear interest at a fixed rate and are payable semi-annually in arrears on May 15 and November 15 of each year, beginning May 15, 2013.

In September 2009, the Company completed a public offering of $500.0 aggregate principal amount of 6.25% senior unsecured notes due September 1, 2019 (the “2019 Notes”). During 2018 a portion of the net proceeds of the 2018 Offering were used to redeem all of the $500.0 of outstanding 2019 Notes. The Company incurred a debt extinguishment charge in connection with the redemption of the 2019 Notes of $15.9, which represents the make-whole premium and unamortized deferred financing costs.

Roper may redeem some or all of these notes at any time or from time to time, at 100% of their principal amount, plus a makewhole premium based on a spread to U.S. Treasury securities.

The Company’s senior notes are unsecured senior obligations of the Company and rank equally in right of payment with all of Roper’s existing and future unsecured and unsubordinated indebtedness. The notes are effectively subordinated to any of its existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness. The notes are not guaranteed by any of Roper’s subsidiaries and are effectively subordinated to all existing and future indebtedness and other

to all existing and future indebtedness and other liabilities of Roper’s subsidiaries.

Total debt at December 31 consisted of the following:

 |
| table | | 2019        | 2018
------------------------------------ | ----------- | ---------
2016 Facility                        | $         — | $   865.0
$600   3.000% senior notes due 2020  | 600.0       | 600.0
$500   2.800% senior notes due 2021  | 500.0       | 500.0
$500   3.125% senior notes due 2022  | 500.0       | 500.0
$700   3.650% senior notes due 2023  | 700.0       | 700.0
$500   2.350% senior notes due 2024  | 500.0       | —
$300   3.850% senior notes due 2025  | 300.0       | 300.0
$700   3.800% senior notes due 2026  | 700.0       | 700.0
$800   4.200% senior notes due 2028  | 800.0       | 800.0
$700   2.950% senior notes due 2029  | 700.0       | —
Other                                | 7.7         | 3.0
Less unamortized debt issuance costs | (32.4)      | (26.3)
Total debt                           | 5,275.3     | 4,941.7
Less current portion                 | 602.2       | 1.5
Long-term debt                       | $ 4,673.1   | $ 4,940.2 |


| _id | d1b3c3a38 |
| title |  |
| text | 8. Earnings Per Share

Certain share-based payment awards entitling holders to receive non-forfeitable dividends before vesting are considered participating securities and thus included in the calculation of basic earnings per share, to the extent they are dilutive. These awards are included in the calculation of basic earnings per share under the two-class method. The two-class method allocates earnings for the period between common shareholders and other security holders. The participating awards receiving dividends are

The participating awards receiving dividends are allocated the same amount of income as if they were outstanding shares.

The following table presents earnings per share (in thousands).

 |
| table | |                  | For the years ended  |
---------------------------------------------------------------------- | ---------------- | -------------------- | ----------------
                                                                       | October 31, 2019 | October 31, 2018     | October 31, 2017
Net income                                                             | $53,294          | $61,431              | $279,745
Distributed and undistributed (earnings) to unvested restricted        | (778)            | (878)                | (4,285)
Distributed and undistributed earnings to common shareholders -- Basic | 52,516           | 60,553               | 275,460
Weighted average shares outstanding — Basic                            | 21,829           | 22,429               | 22,393
Weighted average shares outstanding — Diluted                          | 21,829           | 22,429               | 22,393
Earnings per common share — Basic                                      | $2.41            | $2.70                | $12.30
Earnings per common share — Diluted                                    | $2.41            | $2.70                | $12.30 |


| _id | d1b2fcdd4 |
| title |  |
| text | Financing receivables primarily consist of client loan and installment payment receivables (loans), investment in sales-type and direct financing leases, and commercial financing receivables. Client loan and installment payment receivables (loans) are provided primarily to clients to finance the purchase of hardware, software and services.

Payment terms on these financing arrangements are generally for terms up to seven years. Client loans and installment payment financing contracts are priced independently at competitive market rates. Investment in sales-type and direct financing leases relates principally to the company’s Systems products and are for terms ranging generally from two to six years.

Commercial financing receivables relate primarily to inventory and accounts receivable financing for dealers and remarketers of IBM and OEM products. Payment terms for inventory and accounts receivable financing generally range from 30 to 90 days.

 |
| table | ($ in millions)                  |                                                      |                                  |                                                          |
-------------------------------- | ---------------------------------------------------- | -------------------------------- | -------------------------------------------------------- | -------
At December 31, 2019:            | Investment in Sales-Type and Direct Financing Leases | Commercial Financing Receivables | Client Loan and Installment Payment Receivables/ (Loans) | Total
Financing receivables, gross     | $6,077                                               | $3,836                           | $13,592                                                  | $23,504
Unearned income                  | (509)                                                | (4)                              | (570)                                                    | (1,083)
Recorded investment              | $5,567                                               | $3,831                           | $13,022                                                  | $22,421
Allowance for credit losses      | (72)                                                 | (11)                             | (138)                                                    | (221)
Unguaranteed residual value      | 652                                                  | —                                | —                                                        | 652
Guaranteed residual value        | 53                                                   | —                                | —                                                        | 53
Total financing receivables, net | $6,199                                               | $3,820                           | $12,884                                                  | $22,904
Current portion                  | $2,334                                               | $3,820                           | $ 8,037                                                  | $14,192
Noncurrent portion               | $3,865                                               | $      —                         | $ 4,847                                                  | $ 8,712 |


| _id | d1b3aa0e2 |
| title |  |
| text | 9. Net interest income/interest expenses
The interest result can be broken down as follows:
Interest income and interest expenses from financial instruments are assigned to the measurement categories according to IFRS 9 on the basis of the underlying transactions.

The interest expenses included here (of the measurement categories in accordance with IFRS 9) primarily include interest expenses for issued bonds (including the Commercial Paper Programme) of €41 million (2017/18: €55 million) and for liabilities to banks of €19 million (2017/18: €12 million).
The decline in interest expenses was primarily the result of more favourable refinancing terms.

 |
| table | € million                                                                                | 2017/2018 | 2018/2019
------------------------------------------------------------------------------------------------------------ | --------- | ---------
Interest income                                                                                | 27        | 29
thereof finance leases                                                                                | (0)       | (0)
thereof from post-employment benefits plans                                                                  | (5)       | (7)
thereof from financial instruments of the measurement categories according to IFRS 9 (previous year: IAS39): | (16)      | (12)
Interest expenses                                                                                | −163      | −148
thereof finance leases                                                                                | (−51)     | (−49)
thereof from post-employment benefits plans                                                                  | (−16)     | (−15)
thereof from financial instruments of the measurement categories according to IFRS9 (previous year: IAS39)   | (−79)     | (−69)
Interest result                                                                                | −136      | −119 |


| _id | d1b2f454e |
| title |  |
| text | NOTE 13 - TAXES ON INCOME (Cont.)
D. Loss from continuing operations, before taxes on income, consists of the following:
E. Due to the Company’s cumulative losses, the effect of ASC 740 as codified from ASC 740-10 is not material.

 |
| table | | Year ended December 31 |
------------- | ---------------------- | --------
              | 2019                   | 2 0 1 8
              | U.S. $ in thousands    |
United States | (4,378)                | (3,617)
Israel        | (18,875)               | (10,331)
              | (23,253)               | (13,948) |


| _id | d1b3a5b00 |
| title |  |
| text | UK OPERATING COSTS
UK operating costs decreased 1.2%. Store closures more than offset the cost of new space and channel shift. Cost savings across the business outweighed inflation related increases.

Store staffing costs reduced, as savings from store management restructuring, closures and other efficiencies more than offset pay inflation. Other store costs reduced driven by lower depreciation, due to our closure programme and as a number of assets have reached the end of their useful life, which more than offset rent and rates inflation in the year.

The growth in distribution and warehousing costs was largely driven by inflation and the costs of channel shift, as well as costs associated with the closure of an equipment warehouse, with some offset achieved from improved efficiencies at Castle Donington.
The increase in marketing costs reflected investments in our Food brand and the planned increase in costs in the second half of the year due to the timing of campaigns.

Central costs reduced as lower incentive costs year-on-year, the benefits of technology transformation programmes and other cost efficiencies more than offset system investment write offs and expenditure on the Fuse programme.

 |
| table | | 52 weeks ended |             |
-------------------------- | -------------- | ----------- | ------
                           | 30 Mar 2019    | 31 Mar 2018 | Change
                           | £m             | £m          | %
Store staffing             | 1,044.7        | 1,070.6     | -2.4
Other store costs          | 950.4          | 992.1       | -4.2
Distribution & warehousing | 564.6          | 538.0       | 4.9
Marketing                  | 155.1          | 151.6       | 2.3
Central costs              | 694.8          | 698.0       | -0.5
Total                      | 3,409.6        | 3,450.3     | -1.2 |


| _id | d1a7309a6 |
| title |  |
| text | Revenues. Revenues increased by 21% to RMB377.3 billion for the year ended 31 December 2019 on a year-on-year basis. The following table sets forth our revenues by line of business for the years ended 31 December 2019 and 2018:

Revenues from our VAS business increased by 13% year-on-year to RMB200 billion. Online games revenues grew by 10% to RMB114.7 billion. The increase was primarily due to revenue contributions from domestic smart phone games including Honour of Kings and Peacekeeper Elite, as well as increased contributions from our overseas titles such as PUBG Mobile and Supercell titles, partly offset by the revenue decline from PC client games such as DnF. Social networks revenues increased by 17% to RMB85,281 million.

revenues increased by 17% to RMB85,281 million. The increase mainly reflected revenue growth from digital content services such as live broadcast services and video streaming subscriptions.

Revenues from FinTech and Business Services increased by 39% year-on-year to RMB101.4 billion. The increase was primarily driven by greater revenues from commercial payment due to increased daily active consumers and number of transactions per user. Greater revenues from cloud services also contributed to the annual growth.

Revenues from Online Advertising business increased by 18% year-on-year to RMB68,377 million. Social and others advertising revenues grew by 33% to RMB52,897 million. The increase mainly reflected higher advertising revenues derived from Weixin (primarily Weixin Moments and Mini Programs) as a result of its increased inventories and impressions, as well as contributions from our mobile advertising network due to increased traffic and video inventories. Media advertising revenues decreased by 15% to

Media advertising revenues decreased by 15% to RMB15,480 million. The decrease was primarily due to lower advertising revenues from our media platforms including Tencent Video and Tencent News resulting from unpredictability in broadcast schedules and the challenging macro-environment, as well as the absence of the FIFA World Cup in year 2019.

 |
| table | | Year ended 31 December              |            |            |
----------------------------- | ----------------------------------- | ---------- | ---------- | ----------
                              | 2019                                |            | 2018       |
                              |                                     | % of total |            | % of total
                              | Amount                              | revenues   | Amount     | revenues
                              |                                     |            | (Restated) | (Restated)
                              | (RMB in millions, unless specified) |            |            |
VAS                           | 199,991                             | 53%        | 176,646    | 56%
FinTech and Business Services | 101,355                             | 27%        | 73,138     | 23%
Online Advertising            | 68,377                              | 18%        | 58,079     | 19%
Others                        | 7,566                               | 2%         | 4,831      | 2%
Total revenues                | 377,289                             | 100%       | 312,694    | 100% |


| _id | d1b373ba0 |
| title |  |
| text | Cost of Revenues
Cost of Subscription Solutions

Cost of subscription solutions increased $27.2 million, or 26.9%, for the year ended December 31, 2019 compared to the same period in 2018. The increase was primarily due to higher third-party infrastructure and hosting costs. The increase was also due to an increase in costs necessary to support a greater number of merchants using our platform, resulting in an increase in: credit card fees for processing merchant billings, employee-related costs, amortization of technology related to enhancing our

of technology related to enhancing our platform, payments to third-party partners for the registration of domain names, and payments to third-party theme developers. As a percentage of revenues, costs of subscription solutions decreased from 9.4% in 2018 to 8.1% in 2019 due to a decrease in third-party infrastructure and hosting costs and employee-related costs as a percentage of revenue in 2019.

Cost of subscription solutions increased $39.7 million, or 64.8%, for the year ended December 31, 2018 compared to the same period in 2017. The increase was primarily due to higher third-party infrastructure and hosting costs as well as higher employee-related costs.
Cost of Merchant Solutions

Cost of merchant solutions increased $208.4 million, or 55.4%, for the year ended December 31, 2019 compared to the same period in 2018. The increase was primarily due to the increase in GMV facilitated through Shopify Payments, which resulted in higher payment processing and interchange fees. The increase was also due to higher amortization, largely related to the technology resulting from the 6RS acquisition, higher product costs associated with expanding our product offerings and higher credit card fees

our product offerings and higher credit card fees for processing merchant billings. Cost of merchant solutions as a percentage of revenues increased from 35.0% in 2018 to 37.0% in 2019, mainly as a result of Shopify Payments representing a larger percentage of total revenue.

Cost of merchant solutions increased $144.2 million, or 62.2%, for the year ended December 31, 2018 compared to the same period in 2017. The increase was primarily due to the increase in GMV facilitated through Shopify Payments, which resulted in payment processing fees, including interchange fees, increasing for the year ended December 31, 2018 as compared to the same period in 2017.

 |
| table | | Years ended December 31            |           |           | 2019 vs 2018 | 2018 vs 2017
------------------------------ | ---------------------------------- | --------- | --------- | ------------ | ------------
                               | 2019                               | 2018      | 2017      | %            | %
                               | (in thousands, except percentages) |           |           |              |
Cost of revenues:              |                                    |           |           |              |
Cost of subscription solutions | $ 128,155                          | $ 100,990 | $ 61,267  | 26.9 %       | 64.8 %
Cost of merchant solutions     | 584,375                            | 375,972   | 231,784   | 55.4 %       | 62.2 %
Total cost of revenues         | $ 712,530                          | $ 476,962 | $ 293,051 | 49.4 %       | 62.8 %
Percentage of revenues:        |                                    |           |           |              |
Cost of subscription solutions | 8.1 %                              | 9.4 %     | 9.1 %     |              |
Cost of merchant solutions     | 37.0 %                             | 35.0 %    | 34.4 %    |              |
                               | 45.1 %                             | 44.4 %    | 43.5 %    |              | |


| _id | d1b3c0c84 |
| title |  |
| text | Deferred Tax Assets and Liabilities
Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax asset were as follows:

 |
| table | |         | Fiscal Year End
----------------------------------------------- | ------- | ---------------
                                                | 2019    | 2018
                                                |         | (in millions)
Deferred tax assets:                            |         |
Accrued liabilities and reserves                | $  245  | $  255
Tax loss and credit carryforwards               | 6,041   | 3,237
Inventories                                     | 43      | 58
Intangible assets                               | 964     | —
Pension and postretirement benefits             | 248     | 179
Deferred revenue                                | 4       | 5
Interest                                        | 134     | 30
Unrecognized income tax benefits                | 7       | 8
Basis difference in subsidiaries                | —       | 946
Other                                           | 8       | 13
Gross deferred tax assets                       | 7,694   | 4,731
Valuation allowance                             | (4,970) | (2,191)
Deferred tax assets, net of valuation allowance | 2,724   | 2,540
                                                |         |
Deferred tax liabilities:                       |         |
Intangible assets                               | —       | (552)
Property, plant, and equipment                  | (57)    | (13)
Other                                           | (47)    | (38)
Total deferred tax liabilities                  | (104)   | (603)
Net deferred tax assets                         | $ 2,620 | $  1,937 |


| _id | d1b31cf44 |
| title |  |
| text | Due To/From Related Parties, Net
Amounts due to and from related parties, net as of the periods presented consisted of the following (table in millions):
(1) Includes an immaterial amount related to the Company’s current operating lease liabilities due to related parties as of January 31, 2020.

The Company also recognized an immaterial amount related to non-current operating lease liabilities due to related parties. This amount has been included in operating lease liabilities on the consolidated balance sheet as of January 31, 2020.

 |
| table | | January 31, 2020 | February 1, 2019
-------------------------------------- | ---------------- | ----------------
Due from related parties, current      | $1,618           | $1,248
Due to related parties, current(1)     | 161              | 158
Due from related parties, net, current | $1,457           | $1,090 |


| _id | d1b39ca32 |
| title |  |
| text | Contract assets and deferred revenue
(1) Included in other current assets. (2) Included in other long-term assets. (3) Included in other long-term liabilities.

Contract assets are client committed amounts for which revenue recognized exceeds the amount billed to the client and the right to payment is subject to conditions other than the passage of time, such as the completion of a related performance obligation. Deferred revenue consists of billings and payments received in advance of revenue recognition. Contract assets and deferred revenue are netted at the contract level for each reporting period.

The change in deferred revenue in the year ended December 31, 2019 was primarily due to new billings in advance of revenue recognition, partially offset by revenue recognized during the period that was included in deferred revenue at December 31, 2018.

 |
| table | (in thousands)                 | December 31, 2019 | December 31, 2018
------------------------------ | ----------------- | -----------------
Contract assets (1)            | $5,558            | $3,711
Long-term contract assets (2)  | 5,420             | 2,543
                               | $10,978           | $6,254
Deferred revenue               | $190,080          | $185,145
Long-term deferred revenue (3) | 5,407             | 5,344
                               | $195,487          | $190,489 |


| _id | d1b32848e |
| title |  |
| text | 9. DEFERRED REVENUES
Deferred revenues consisted of the following:

Deferred cloud services and license support revenues and deferred hardware revenues substantially represent customer payments made in advance for cloud or support contracts that are typically billed in advance with corresponding revenues generally being recognized ratably over the contractual periods. Deferred services revenues include prepayments for our services business and revenues for these services are generally recognized as the services are performed. Deferred cloud license and on-premise license

Deferred cloud license and on-premise license revenues typically resulted from customer payments that related to undelivered products and services or specified enhancements.

In connection with our acquisitions, we have estimated the fair values of the cloud services and license support performance obligations assumed from our acquired companies. We generally have estimated the fair values of these obligations assumed using a cost build-up approach. The cost build-up approach determines fair value by estimating the costs related to fulfilling the obligations plus a normal profit margin. The sum of the costs and operating profit approximates, in theory, the amount that we would

approximates, in theory, the amount that we would be required to pay a third party to assume these acquired obligations. These aforementioned fair value adjustments recorded for obligations assumed from our acquisitions reduced the cloud services and license support deferred revenues balances that we recorded as liabilities from these acquisitions and also reduced the resulting revenues that we recognized or will recognize over the terms of the acquired obligations during the post-combination periods.

 |
| table | |        | May 31,
----------------------------------------------------------------- | ------ | -------
(in millions)                                                     | 2019   | 2018
Cloud services and license support                                | $7,340 | $7,265
Hardware                                                          | 635    | 645
Services                                                          | 360    | 404
Cloud license and on-premise license                              | 39     | 27
Deferred revenues, current                                        | 8,374  | 8,341
Deferred revenues, non-current (in other non-current liabilities) | 669    | 625
Total deferred revenues                                           | $9,043 | $8,966 |


| _id | d1b3aa86c |
| title |  |
| text | The activity for unrecognized gross tax benefits is as follows (in millions):
Included in the December 31, 2019 balance of $130.0 million is $97.2 million related to unrecognized tax benefits that, if recognized, would impact the annual effective tax rate. Also included in the balance of unrecognized tax benefits as of December 31, 2019 is $32.8 million of benefit that, if recognized, would result in adjustments to other tax accounts, primarily deferred taxes.

Although the Company cannot predict the timing of resolution with taxing authorities, if any, the Company believes it is reasonably possible that its unrecognized tax benefits will be reduced by $1.5 million in the next 12 months due to settlement with tax authorities or expiration of the applicable statute of limitations. The Company did not recognize any additional tax benefit or expense for interest and penalties during the year ended December 31, 2019.

The Company recognized approximately $0.8 million of tax benefit and $1.5 million of tax expense for interest and penalties during the years ended December 31, 2018 and 2017, respectively. The Company had approximately $5.1 million, $5.1 million, and $5.9 million of accrued interest and penalties at December 31, 2019, 2018, and 2017, respectively. The Company recognizes interest and penalties accrued in relation to unrecognized tax benefits in tax expense.

Tax years prior to 2016 are generally not subject to examination by the IRS except for items involving tax attributes that have been carried forward to tax years whose statute of limitations remains open. The Company is not currently under IRS examination. For state returns, the Company is generally not subject to income tax examinations for years prior to 2015.

The Company is also subject to routine examinations by various foreign tax jurisdictions in which it operates. With respect to jurisdictions outside the United States, the Company's subsidiaries are generally no longer subject to income tax audits for years prior to 2009. The Company is currently under audit in the following jurisdictions including, but not limited to, Canada, China, the Czech Republic, the Philippines, Singapore and the United Kingdom.

 |
| table | | 2019   | 2018   | 2017
------------------------------------------------------ | ------ | ------ | ------
Balance at beginning of year                           | $112.2 | $114.8 | $136.7
Acquired balances                                      | 15.5   | —      | —
Additions for tax benefits related to the current year | 9.4    | 7.4    | 23.6
Additions for tax benefits of prior years              | 8.0    | 2.8    | 4.7
Reductions for tax benefits of prior years             | (0.2)  | (1.9)  | (1.6)
Lapse of statute                                       | (8.2)  | (10.9) | (16.3)
Settlements                                            | (6.7)  | —      | (4.9)
Change in rate due to U.S. Tax Reform                  | —      | —      | (27.4)
Balance at end of year                                 | $130.0 | $112.2 | $114.8 |


| _id | d1b3921e0 |
| title |  |
| text | Profitability Measures
Net Income:

Our net income in the fiscal year ended February 28, 2019 was $18.4 million as compared to net income of $16.6 million in the same period last year. The increase is due to a $11.7 million increase in operating income, $3.0 million increase in investment income and $12.0 million decrease in income tax provision. The increase in operating income was primarily attributable to $21.0 million decrease in general and administrative expense due to reduced legal provision and related costs as further discussed in

and related costs as further discussed in Note 19 and partially offset by $8.0 million of restructuring expense.

Adjusted EBITDA for Telematics Systems in the fiscal year ended February 28, 2019 decreased $8.1 million compared to the same period last year due to lower revenues as described above and the impact of high margin revenue earned on a strategic technology partnership arrangement in fiscal 2018. These factors were coupled with higher operating expenses in Telematics Systems as a result of increased headcount and outsourced professional service fees. Adjusted EBITDA for Software and Subscription Services

EBITDA for Software and Subscription Services increased $4.9 million compared to the same period last year due primarily to continued growth in revenues and gross profit from our Italia market and higher gross profit from our fleet management services.

See Note 20 for reconciliation of Adjusted EBITDA by reportable segments and a reconciliation to GAAP-basis net income (loss).

 |
| table | | Fiscal years ended |         |          |
-------------------------------- | ------------------ | ------- | -------- | --------
                                 | February 28,       |         |          |
(In thousands)                   | 2019               | 2018    | $ Change | % Change
                                 | Segment            |         |          |
Telematics Systems               | $40,821            | $48,943 | $(8,122) | (17.0%)
Software & Subscription Services | 13,093             | 8,233   | 4,860    | 59.0%
Corporate Expense                | (5,699)            | (4,794) | (905)    | 19.0%
Total Adjusted EBITDA            | $48,215            | $52,382 | $(4,167) | (8.0%) |


| _id | d1b331c50 |
| title |  |
| text | The impact of product mix within our TS segment on gross margins for the fiscal years ended September 30 was as follows:

The overall TS segment gross margin as a percentage of sales remained the same in fiscal year 2019 when compared to fiscal year 2018. The $0.6 million increase in our TS segment product gross margins resulted from an increase in product revenues in the U.S. division, partially offset by a decrease in the U.K division. The $1.1 million.increase in the TS segment service gross margins primarily resulted from increased service revenues in the U.S. division.

 |
| table | |         |     | 2018                         |     | Increase |
-------- | ------- | --- | ---------------------------- | --- | -------- | ---
         | GM$     | GM% | GM$                          | GM% | GM$      | GM%
         |         |     | (Dollar amount in thousands) |     |          |
Products | $7,462  | 13% | $6,886                       | 13% | $576     | -%
Services | 6,427   | 56% | 5,376                        | 55% | 1,051    | 1
Total    | $13,889 | 20% | $12,262                      | 20% | 1,627    | -% |


| _id | d1a7362fc |
| title |  |
| text | Movements in Class A ordinary share capital
Class A shares as of June 30, 2019 and June 30, 2018 does not include 911,367 and 827,871 shares of restricted stock outstanding, respectively, that are subject to forfeiture or repurchase.

 |
| table | | Number of Shares | Amount
-------------------------------------------------- | ---------------- | ---------------------
                                                   |                  | (U.S. $ in thousands)
Details                                            |                  |
Balance as of June 30, 2017                        | 91,979,704       | $9,198
Conversion of Class B ordinary shares              | 5,861,707        | 587
Exercise of share options                          | 1,902,084        | 190
Issuance for settlement of RSUs                    | 5,253,809        | 525
Vesting of share options that were early exercised | 374,496          | 37
Balance as of June 30, 2018                        | 105,371,800      | 10,537
Conversion of Class B ordinary shares              | 5,219,947        | 522
Exercise of share options                          | 1,496,875        | 150
Issuance for settlement of RSUs                    | 4,674,873        | 467
Vesting of share options that were early exercised | 510,071          | 51
Balance as of June 30, 2019                        | 117,273,566      | $11,727 |


| _id | d1a72c40a |
| title |  |
| text | 14. Fair Value Measures

The Company is required to categorize both financial and nonfinancial assets and liabilities based on the following fair value hierarchy. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated, knowledgeable, and willing parties able to engage in the transaction. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid

such parties, not the amount that would be paid to settle the liability with the creditor.

• Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 - Unobservable inputs for the asset or liability supported by little or no market activity and are significant to the fair value of the assets or liabilities.
The disclosure of fair value of certain financial assets and liabilities recorded at cost are as follows:

Cash and cash equivalents, accounts receivable, and accounts payable: The carrying amount approximates fair value due to the short maturity of these instruments.

Long-term debt: The carrying value of the Company’s long-term debt is at its stated value. We have not elected to carry our long-term debt at fair value. Fair values for debt are based on quoted market prices or published forward interest rate curves, which are level 2 inputs. Estimated fair values are management’s estimates, which is a level 3 input; however, when there is no readily available market data, the estimated fair values may not represent the amounts that could be realized in a current

the amounts that could be realized in a current transaction, and the fair values could change significantly. The fair value of the Company’s debt is sensitive to changes in the general level of U.S. interest rates. Under its current policies, the Company does not use interest rate derivative instruments to manage exposure to interest rate changes. A one percent (1%) decrease in interest rates would increase the net fair value of the Company’s debt by $23,000 at June 1, 2019. The fair value and carrying

at June 1, 2019. The fair value and carrying value of the Company’s long-term debt were as follows (in thousands):

 |
| table | | June 1, 2019   |            | June 2, 2018   |
---------------- | -------------- | ---------- | -------------- | ----------
                 | Carrying Value | Fair Value | Carrying Value | Fair Value
Note payable     | $1,283         | $1,309     | $4,750         | $4,732
Long-term leases | 1,054          | 940        | 1,340          | 1,171
                 | $2,337         | $2,249     | $6,090         | $5,903 |


| _id | d1b362fe4 |
| title |  |
| text | C) DIVIDENDS
For the year ended August 31, 2019, quarterly eligible dividends of $0.525 per share, for a total of $2.10 per share or $103.7 million, were paid to the holders of multiple and subordinate voting shares, compared to quarterly eligible dividends of $0.475 per share, for a total of $1.90 per share or $93.7 million for the year ended August 31, 2018.

At its October 30, 2019 meeting, the Board of Directors of Cogeco Communications declared a quarterly eligible dividend of $0.58 per share for multiple voting and subordinate voting shares, payable on November 27, 2019 to shareholders of record on November 13, 2019.

 |
| table | Years ended August 31,                 | 2019    | 2018
-------------------------------------- | ------- | ------
(In thousands of Canadian dollars)     | $       | $
Dividends on multiple voting shares    | 32,951  | 29,813
Dividends on subordinate voting shares | 70,757  | 63,886
                                       | 103,708 | 93,699 |


| _id | d1b38464e |
| title |  |
| text | Deferred Revenue
The opening balances of current and long-term deferred revenue were $30,694 and $1,352, respectively, as of January 1, 2018.
Expressed in US $000's except share and per share amounts

 |
| table | | Years ended       |
----------------- | ----------------- | -----------------
                  | December 31, 2019 | December 31, 2018
                  | $                 | $
Current portion   | 56,691            | 39,180
Long term portion | 5,969             | 1,881
                  | 62,660            | 41,061 |


| _id | d1b3a6e42 |
| title |  |
| text | (D.6) Non-Current Assets by Region
The table below shows non-current assets excluding financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts.
Non-Current Assets by Region
For a breakdown of our employee headcount by region, see Note (B.1) , and for a breakdown of revenue by region, see Note (A.1) .

 |
| table | € millions       | 2019   | 2018
---------------- | ------ | ------
Germany          | 4,486  | 4,184
Rest of EMEA     | 5,386  | 4,742
EMEA             | 9,872  | 8,926
United States    | 29,744 | 22,133
Rest of Americas | 411    | 258
Americas         | 30,154 | 22,391
APJ              | 1,276  | 922
SAP Group        | 41,302 | 32,239 |


| _id | d1b3a49c6 |
| title |  |
| text | The Group has non-current borrowing facilities denominated in Australian Dollars (“AUD”) and New Zealand Dollars (“NZD”). All facilities are interest only facilities with any drawn balances payable at maturity. Drawn amounts and facility limits are as follows:

The major terms of these agreements are as follows: • Maturity dates on the facilities range from 23 July 2020 to 23 December 2026 (2018: 23 July 2019 to 23 December 2026). • The interest rate applied is the bank bill rate plus a margin depending on the gearing ratio. • Security has been granted over the Group's freehold investment properties.

The Group has a bank overdraft facility with a limit of $3m that was undrawn at 30 June 2019 and 30 June 2018. During the year ended 30 June 2019, the Group converted an existing AUD facility of $25m into an NZD facility of $25.75m, refinanced part of the existing debt facilities, and increased its club banking facilities by AUD $100m and NZD $50m (year ended 30 June 2018 facilities increased by $150m AUD and $25m NZD).

The Group have complied with the financial covenants of their borrowing facilities during the 2019 and 2018 reporting periods (see note 16). The fair value of borrowings approximates carrying value. Details of the exposure to risk arising from current and non-current borrowings are set out in note 15.

 |
| table | | 2019    | 2018
-------------------------------- | ------- | -------
                                 | $'000   | $'000
Bank finance facilities (AUD)    |         |
Drawn amount                     | 663,800 | 520,300
Facility limit                   | 680,000 | 605,000
Bank finance facilities (NZD)    |         |
Drawn amount                     | 192,250 | 87,500
Facility limit                   | 196,750 | 121,000
AUD equivalent of NZD facilities |         |
Drawn amount                     | 184,038 | 80,048
Facility limit                   | 188,346 | 110,696 |


| _id | d1a71febc |
| title |  |
| text | S. Selected Quarterly Financial Data (unaudited)
Quarterly financial data for fiscal 2020 and 2019 were as follows (tables in millions, except per share amounts):
(1) Adjusted to reflect the recast of prior period information due to the Pivotal acquisition, which was accounted for as a transaction between entities under common control (refer to Note B).

 |
| table | Fiscal 2020                                                                                | Q1 2020 (1) | Q2 2020 (1) | Q3 2020 (1) | Q4 2020
---------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------- | ----------- | ----------- | -------
Total revenue                                                                                | $2,450      | $2,632      | $2,656      | $3,073
Net income attributable to VMware, Inc.                                                                                | 380         | 5,303       | 407         | 321
common stockholders, basic for Classes A and B Net income per weighted-average share attributable to VMware, Inc. common stockholders, basic for Classes A and B | $0.91       | $12.72      | $0.98       | $0.77
Net income per weighted-average share attributable to VMware, Inc. common stockholders, diluted for Classes A and B                                              | $0.89       | $12.47      | $0.96       | $0.76 |


| _id | d1b39dacc |
| title |  |
| text | The breakout of product and service revenues was as follows:
Our product revenues increased $158.1 million, or 9%, in 2019 from 2018 primarily due to higher sales in Semiconductor Test of testers for 5G infrastructure and image sensors, higher sales in Storage Test of 3.5” hard disk drive testers, and higher demand in Industrial Automation, partially offset by a decrease in sales in Semiconductor Test automotive and analog test segments. Service revenues increased $36.1 million or 10%.

In 2019 and 2018, no single direct customer accounted for more than 10% of our consolidated revenues. In 2019 and 2018, our five largest direct customers in aggregate accounted for 27% and 27% of our consolidated revenues, respectively.

We estimate consolidated revenues driven by Huawei Technologies Co. Ltd. (“Huawei”), combining direct sales to that customer with sales to the customer’s OSATs, accounted for approximately 11% and 4% of our consolidated revenues in 2019 and 2018, respectively. We estimate consolidated revenues driven by another OEM customer, combining direct sales to that customer with sales to the customer’s OSATs, accounted for approximately 10% and 13% of our consolidated revenues in 2019 and 2018, respectively.

 |
| table | | 2019     | 2018          | 2018-2019 Dollar Change
----------------- | -------- | ------------- | -----------------------
                  |          | (in millions) |
Products revenues | $1,887.7 | $1,729.6      | $158.1
Services revenues | 407.3    | 371.2         | 36.1
                  | $2,295.0 | $2,100.8      | $194.2 |


| _id | d1b31457e |
| title |  |
| text | ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
The provision for income taxes from continuing operations is summarized as follows:

The Company’s effective tax rates differ from the U.S. federal statutory rate of 21% for the years ended December 31, 2019 and December 31, 2018, primarily due to the benefit of tax credits and earnings in foreign jurisdictions which are subject to lower tax rates, offset by additional GILTI tax in the US and withholding taxes.

 |
| table | |          | Years Ended December 31, |
-------------------------------- | -------- | ------------------------ | --------
                                 | 2019     | 2018                     | 2017
Current:                         |          |                          |
Federal                          | $(9,627) | $1,423                   | $26,550
State                            | 882      | 12                       | 601
Foreign                          | 18,429   | 13,772                   | 9,621
Total current provision          | $9,684   | $15,207                  | $36,772
Deferred:                        |          |                          |
Federal                          | $ 3,822  | $  4,021                 | $ 28,297
State                            | (178)    | 2,363                    | (1,000)
Foreign                          | (2,629)  | 3,636                    | (1,979)
Total deferred provision         | 1,015    | 10,020                   | 25,318
Total provision for income taxes | $10,699  | $25,227                  | $62,090 |


| _id | d1b30f8da |
| title |  |
| text | Other (Income) Expenses
nm - not meaningful
Interest income. Interest income decreased $64,000 during fiscal 2018 as compared to fiscal 2017.
Interest expense. Interest expense consists of costs associated with capital leases and loans on corporate-owned life insurance policies.
Other (income) expense, net. Other (income) expense, net consists mainly of the impact of foreign currency due to movement of European and Asian currencies against the US dollar.

 |
| table | | Year ended March 31, |        | (Unfavorable) favorable |
--------------------------------- | -------------------- | ------ | ----------------------- | -------
(Dollars in thousands)            | 2018                 | 2017   | $                       | %
Other (income) expenses           |                      |        |                         |
Interest (income)                 | $(98)                | $(162) | $(64)                   | (39.5)%
Interest expense                  | 10                   | 15     | 5                       | 33.3%
Other (income) expense, net       | (391)                | 224    | 615                     | nm
Total other (income) expense, net | $(479)               | $77    | $556                    | nm |


| _id | d1b356de8 |
| title |  |
| text | Note 15—Segments and Geographic Information
We operate in two reportable segments consisting of the Probe Cards Segment and the Systems Segment. Our chief operating decision maker ("CODM") is our Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. The following table summarizes the operating results by reportable segment (dollars in thousands):

Operating results provide useful information to our management for assessment of our performance and results of operations. Certain components of our operating results are utilized to determine executive compensation along with other measures.

Corporate and Other includes unallocated expenses relating to amortization of intangible assets, share-based compensation expense, acquisition-related costs, including charges related to inventory stepped up to fair value, and other costs, which are not used in evaluating the results of, or in allocating resources to, our reportable segments. Acquisition-related costs include transaction costs and any costs directly related to the acquisition and integration of acquired businesses.

 |
| table | |             |         | Fiscal 2019         |
------------ | ----------- | ------- | ------------------- | --------
             | Probe Cards | Systems | Corporate and Other | Total
Revenues     | $491,363    | $98,101 | $—                  | $589,464
Gross profit | $211,382    | $50,927 | $(24,813)           | $237,496
Gross margin | 43.0 %      | 51.9 %  | — %                 | 40.3 %
             |             |         | Fiscal 2018         |
             | Probe Cards | Systems | Corporate and Other | Total
Revenues     | $434,269    | $95,406 | $—                  | $529,675
Gross profit | $187,320    | $47,074 | $(24,055)           | $210,339
Gross margin | 43.1 %      | 49.3 %  | — %                 | 39.7 %
             |             |         | Fiscal 2017         |
             | Probe Cards | Systems | Corporate and Other | Total
Revenues     | $454,794    | $93,647 | $—                  | $548,441
Gross profit | $195,903    | $46,647 | $(26,953)           | $215,597
Gross margin | 43.1 %      | 49.8%   | — %                 | 39.3 % |


| _id | d1b3c3056 |
| title |  |
| text | The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities are as follows (in thousands):

The Company considered both positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, historic book profit/loss, prior taxable income/loss, and results of future operations, and determined that a valuation allowance was not required for a significant portion of its deferred tax assets. A valuation allowance of $31.4 million and $28.5 million remained as of July 31, 2019 and 2018, respectively.

The increase of $2.9 million in the valuation allowance in the current fiscal year relates primarily to net operating losses and income tax credits incurred in certain tax jurisdictions for which no tax benefit was recognized.

 |
| table | | As of July 31, |
------------------------------------ | -------------- | -------
                                     | 2019           | 2018
Accruals and reserves                | $7,870         | $12,129
Stock-based compensation             | 6,353          | 7,658
Deferred revenue                     | 2,316          | 4,023
Property and equipment               | —              | 1,268
Net operating loss carryforwards     | 55,881         | 56,668
Tax credits                          | 74,819         | 60,450
Total deferred tax assets            | 147,239        | 142,196
Less valuation allowance             | 31,421         | 28,541
Net deferred tax assets              | 115,818        | 113,655
Less deferred tax liabilities:       |                |
Intangible assets                    | 7,413          | 11,461
Convertible debt                     | 10,274         | 11,567
Property and equipment               | 1,435          | —
Unremitted foreign earnings          | 302            | 258
Capitalized commissions              | 6,086          | —
Total deferred tax liabilities       | 25,510         | 23,286
Deferred tax assets, net             | 90,308         | 90,369
Less foreign deferred revenue        | —              | 69
Less foreign capitalized commissions | 906            | —
Total net deferred tax assets        | 89,402         | 90,300 |


| _id | d1b30ff60 |
| title |  |
| text | Product warranty liabilities:
Equipment and software systems sales include a standard product warranty. The following tables summarize the activity related to product warranty liabilities and their balances as reported in our consolidated balance sheets (in millions):

 |
| table | | Year Ended     |
--------------------------------- | -------------- | --------------
                                  | April 26, 2019 | April 27, 2018
Balance at beginning of period    | $ 40           | $ 50
Expense accrued during the period | 22             | 16
Warranty costs incurred           | (22)           | (26)
Balance at end of period          | $ 40           | $ 40
Total warranty liabilities        | $ 40           | $  40 |


| _id | d1b383f1e |
| title |  |
| text | For a particular tax-paying component of the Company and within a particular tax jurisdiction, all current deferred tax liabilities and assets are offset and presented as a single amount, similarly to non-current deferred tax liabilities and assets. The Company does not offset deferred tax liabilities and assets attributable to different tax-paying components or to different tax jurisdictions.

The net deferred tax assets are recorded in legal entities which have been historically profitable and are expected to be profitable in the next coming years.

 |
| table | | December 31, 2019 | December 31, 2018
------------------------------------------------------- | ----------------- | -----------------
Tax loss carryforwards and investment credits           | 612               | 603
Less unrecognized tax benefit                           | (21)              | (20)
Tax loss carry forwards net of unrecognized tax benefit | 591               | 583
Inventory valuation                                     | 28                | 28
Impairment and restructuring charges                    | 6                 | 14
Fixed asset depreciation in arrears                     | 39                | 35
Increased depreciation incentives                       | 213               | 211
Capitalized development costs                           | 118               | 108
Receivables for government funding                      | 14                | 11
Tax credits granted on past capital investments         | 1,151             | 1,155
Pension service costs                                   | 81                | 65
Stock awards                                            | 6                 | 7
Operating lease liabilities                             | 40                | —
Commercial accruals                                     | 15                | 12
Other temporary differences                             | 22                | 26
Total deferred tax assets                               | 2,324             | 2,255
Valuation allowances                                    | (1,534)           | (1,548)
Deferred tax assets, net                                | 790               | 707
Accelerated fixed asset depreciation                    | (20)              | (16)
Acquired intangible assets                              | (16)              | (13)
Advances of government funding                          | (31)              | (12)
Operating lease right-of-use assets                     | (40)              | —
Other temporary differences                             | (7)               | (7)
Deferred tax liabilities                                | (114)             | (48)
Net deferred income tax asset                           | 676               | 659 |


| _id | d1b33b3e0 |
| title |  |
| text | Sales and Marketing

Sales and marketing expenses in 2019 decreased by $7.6 million, or 32%, as compared to 2018. This decrease was primarily due to a reduction in the global sales support and marketing headcount, including reductions that were part of our restructuring activities during 2019 (refer to Note 4 of the accompanying consolidated financial statements), contributing to net decreases of $4.8 million in personnel-related costs, and $1.0 million in allocated facilities and information technology costs as compared to

and information technology costs as compared to 2018. Restructuring costs in 2019 decreased $0.4 million, as there were additional restructuring activities in 2018, including a headcount reduction of approximately 13% of our workforce and the closure of certain leased facilities. The remaining decrease during 2019 was primarily the result of lower marketing costs of $0.6 million, as we eliminated or shifted the timing of certain of our marketing activities.

 |
| table | | Years Ended December 31, |         | Change   |
------------------------ | ------------------------ | ------- | -------- | -----
                         | 2019                     | 2018    | $        | %
                         | (dollars in thousands)   |         |          |
Sales and marketing      | $15,836                  | $23,425 | $(7,589) | (32)%
Percent of revenues, net | 32%                      | 40%     |          | |


| _id | d1b2fc690 |
| title |  |
| text | 13. INCOME TAXES
The Company files income tax returns in the U.S. federal jurisdiction and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2015.

Deferred income taxes have been provided by temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. To the extent allowed by GAAP, the Company provides valuation allowances against the deferred tax assets for amounts when the realization is uncertain. Included in the balances at December 31, 2019 and 2018, are no tax positions for which the ultimate deductibility is highly certain, but for which there is

is highly certain, but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period.

The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the periods ended December 31, 2019 and 2018, the Company did not recognize interest and penalties.
The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the year ended December 31, 2019 and 2018 due to the following:

 |
| table | | 2019     | 2018
----------------------------------------- | -------- | --------
Net taxable (loss) at effective tax rates | $(2,508) | $(1,567)
Stock compensation expense                | 119      | 358
Amortization of debt discount             | 94       | 10
Impairment of goodwill                    | -        | 519
Other                                     | (223)    | (153)
Valuation allowance                       | 2,518    | 833
Income tax expense                        | $-       | $- |


| _id | d1b31a370 |
| title |  |
| text | Combined Incentive Plan Information
RSU share activity under the 2004 Plan is set forth below:

The total intrinsic value of RSUs which vested during the years ended March 31, 2019, 2018 and 2017 was $229.3 million, $146.0 million and $166.1 million, respectively. The aggregate intrinsic value of RSUs outstanding at March 31, 2019 was $522.0 million, calculated based on the closing price of the Company's common stock of $82.96 per share on March 29, 2019. At March 31, 2019, the weighted average remaining expense recognition period was 1.91 years.

 |
| table | | Number of Shares | Weighted Average Grant Date Fair Value
---------------------------------- | ---------------- | --------------------------------------
Nonvested shares at March 31, 2016 | 6,307,742        | $36.76
Granted                            | 1,635,655        | 51.46
Assumed upon acquisition           | 2,059,524        | 46.57
Forfeited                          | (722,212)        | 43.58
Vested                             | (2,861,253)      | 38.60
Nonvested shares at March 31, 2017 | 6,419,456        | 42.06
Granted                            | 1,267,536        | 77.26
Forfeited                          | (279,051)        | 49.65
Vested                             | (1,735,501)      | 38.00
Nonvested shares at March 31, 2018 | 5,672,440        | 50.79
Granted                            | 1,951,408        | 77.83
Assumed upon acquisition           | 1,805,680        | 91.70
Forfeited                          | (408,242)        | 73.36
Vested                             | (2,729,324)      | 61.51
Nonvested shares at March 31, 2019 | 6,291,962        | $64.81 |


| _id | d1b311c48 |
| title |  |
| text | Costs and Expenses
Cost of Revenues
The following tables detail the components of cost of revenues in dollars (amounts in millions) and as a percentage of associated net revenues:
Cost of Revenues—Product Sales:
The decrease in product costs for 2019, as compared to 2018, was due to the decrease in product sales, primarily associated with the Destiny franchise (reflecting our sale of the publishing rights for Destiny to Bungie in December 2018).

The decrease in software royalties, amortization, and intellectual property licenses related to product sales for 2019, as compared to 2018, was primarily due to a decrease of $133 million in software amortization and royalties from Activision, primarily due to the Destiny franchise. The decrease was partially offset by:

higher software amortization and royalties for Call of Duty: Black Ops 4, which was released in October 2018, as compared to Call of Duty: WWII, which was released in November 2017; software amortization and royalties from Sekiro: Shadows Die Twice, which was released in March 2019; and higher software amortization and royalties for Call of Duty: Modern Warfare, which was released in October 2019, as compared to Call of Duty: Black Ops 4.
Cost of Revenues—Subscription, Licensing, and Other Revenues:

The decrease in game operations and distribution costs for 2019, as compared to 2018, was primarily due to a decrease of $50 million in service provider fees such as digital storefront fees (e.g., fees retained by Apple and Google for our sales on their platforms), payment processor fees, and server bandwidth fees.
The decrease in software royalties, amortization, and intellectual property licenses related to subscription, licensing, and other revenues for 2019, as compared to 2018, was primarily due to:

a decrease of $122 million in amortization of internally-developed franchise intangible assets acquired as part of our acquisition of King; a decrease of $36 million in software amortization and royalties from Activision, driven by the Destiny franchise, partially offset by software royalties on Call of Duty: Mobile, which was released in October 2019; and  lower amortization of capitalized film costs due to the release of the third season of the animated TV series, Skylanders™ Academy, in September 2018,

series, Skylanders™ Academy, in September 2018, with no comparable release in 2019.

 |
| table | | Year Ended December 31, 2019 | % of associated net revenues | Year Ended December 31, 2018 | % of associated net revenues | Increase (Decrease)
---------------------------------------------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | -------------------
Cost of revenues—product sales:                                  |                              |                              |                              |                              |
Product costs                                                    | $656                         | 33%                          | $719                         | 32%                          | $(63)
Software royalties, amortization, intellectual property licenses | 240                          | 12                           | 371                          | 16                           | (131)
Cost of revenues—subscription, licensing, and other revenues:    |                              |                              |                              |                              |
Game operations and distribution costs                           | 965                          | 21                           | 1,028                        | 20                           | (63)
Software royalties, amortization, intellectual property licenses | 233                          | 5                            | 399                          | 8                            | (166)
Total cost of revenues                                           | $2,094                       | 32%                          | $2,517                       | 34%                          | $(423) |


| _id | d1b35fb64 |
| title |  |
| text | Other assets
Other assets consisted of the following at December 31, 2019 and 2018 (in thousands):
(1)    See Note 10. "Leases" to our consolidated financial statements for discussion of our lease arrangements.

(1)    (2)    In April 2009, we entered into a credit facility agreement with a solar power project entity of one of our customers for an available amount of €17.5 million to provide financing for a PV solar power system. The credit facility bears interest at 8.0% per annum, payable quarterly, with the full amount due in December 2026. As of December 31, 2019 and 2018, the balance outstanding on the credit facility was €7.0 million ($7.8 million and $8.0 million, respectively).

(3)    In June 2015, 8point3 Energy Partners LP (the “Partnership”), a limited partnership formed by First Solar and SunPower Corporation (collectively the “Sponsors”), completed its initial public offering (the “IPO”). As part of the IPO, the Sponsors contributed interests in various projects to OpCo in exchange for voting and economic interests in the entity, and the Partnership acquired an economic interest in OpCo using proceeds from the IPO.

In June 2018, we completed the sale of our interests in the Partnership and its subsidiaries to CD Clean Energy and Infrastructure V JV, LLC, an equity fund managed by Capital Dynamics, Inc. and certain other co-investors and other parties, and received net proceeds of $240.0 million after the payment of fees, expenses, and other amounts. We accounted for our interests in OpCo, a subsidiary of the Partnership, under the equity method of accounting as we were able to exercise significant influence over the

able to exercise significant influence over the Partnership due to our representation on the board of directors of its general partner and certain of our associates serving as officers of its general partner. During the year ended December 31, 2018, we recognized equity in earnings, net of tax, of $39.7 million from our investment in OpCo, including a gain of $40.3 million, net of tax, for the sale of our interests in the Partnership and its subsidiaries. During the year ended December 31, 2018, we

During the year ended December 31, 2018, we received distributions from OpCo of $12.4 million.

In connection with the IPO, we also entered into an agreement with a subsidiary of the Partnership to lease back one of our originally contributed projects, Maryland Solar, until December 31, 2019. Under the terms of the agreement, we made fixed rent payments to the Partnership’s subsidiary and were entitled to all of the energy generated by the project. Due to certain continuing involvement with the project, we accounted for the leaseback agreement as a financing transaction until the sale of our

as a financing transaction until the sale of our interests in the Partnership and its subsidiaries in June 2018. Following the sale of such interests, the Maryland Solar project qualified for sale-leaseback accounting, and we recognized net revenue of $32.0 million from the sale of the project.

(4)    See Note 9. “Derivative Financial Instruments” to our consolidated financial statements for discussion of our derivative instruments.

 |
| table | | 2019     | 2018
------------------------------- | -------- | -------
Operating lease assets (1)      | $145,711 | $—
Indirect tax receivables .      | 9,446    | 22,487
Notes receivable (2)            | 8,194    | 8,017
Income taxes receivable .       | 4,106    | 4,444
Equity method investments (3) . | 2,812    | 3,186
Derivative instruments (4) .    | 139      | —
Deferred rent .                 | —        | 27,249
Other .                         | 79,446   | 33,495
Other assets                    | $249,854 | $98,878 |


| _id | d1b3c32cc |
| title |  |
| text | Contract Costs

As discussed in Note 1, Topic 606 requires the recognition of an asset for incremental costs to obtain a customer contract, which is then amortized to expense over the respective period of expected benefit. We recognize an asset for incremental commission costs paid to internal and external sales personnel and agents in conjunction with obtaining customer contracts. We only defer these costs when we have determined the commissions are incremental costs that would not have been incurred absent the customer

would not have been incurred absent the customer contract and are expected to be recoverable. Costs to obtain a contract are amortized and recorded ratably as commission expense over the period representing the transfer of goods or services to which the assets relate. Costs to obtain wireless contracts are amortized over both of our Consumer and Business customers’ estimated device upgrade cycles, as such costs are typically incurred each time a customer upgrades. Costs to obtain wireline contracts are

upgrades. Costs to obtain wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers. Incremental costs to obtain wireline contracts for our Business customers are insignificant. Costs to obtain contracts are recorded in Selling, general and administrative expense.

We also defer costs incurred to fulfill contracts that: (1) relate directly to the contract; (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract; and (3) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed as we satisfy our performance obligations and recorded to Cost of services. These costs principally relate to direct costs that enhance our wireline business resources, such as

enhance our wireline business resources, such as costs incurred to install circuits.

We determine the amortization periods for our costs incurred to obtain or fulfill a customer contract at a portfolio level due to the similarities within these customer contract portfolios.
Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred.

Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as deferred contract costs, and amortized over a 2 to 5-year period. Deferred contract costs are classified as current or non-current within Prepaid expenses and other and Other assets, respectively.
The balances of deferred contract costs included in our consolidated balance sheets were as follows:

For the years ended December 31, 2019 and 2018, we recognized expense of $2.7 billion and $2.0 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our consolidated statements of income.

We assess our deferred contract costs for impairment on a quarterly basis. We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses. There have been no impairment charges recognized for the years ended December 31, 2019 and 2018.

 |
| table | (dollars in millions)      | At December 31, 2019 | At December 31, 2018
-------------------------- | -------------------- | --------------------
Assets                     |                      |
Prepaid expenses and other | $2,578               | $ 2,083
Other assets               | 1,911                | 1,812
Total                      | $ 4,489              | $ 3,895 |


| _id | d1b372f34 |
| title |  |
| text | ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
NOTE 23. SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED)

The following tables present unaudited quarterly results for each of the eight quarters in the periods ended December 31, 2019 and 2018, in thousands. We believe that all necessary adjustments have been included in the amounts stated below to present fairly such quarterly information. Due to the volatility of the industries in which our customers operate, the operating results for any quarter are not necessarily indicative of results for any subsequent period.

 |
| table | |                   | Quarter Ended      |               |
------------------------------------------------------------------------- | ----------------- | ------------------ | ------------- | --------------
                                                                          | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019
Sales, net                                                                | $  338,268        | $  175,127         | $ 134,810     | $ 140,743
Gross Profit                                                              | $112,295          | $73,491            | $64,126       | $65,740
Restructuring Expense                                                     | $1,418            | $152               | $1,795        | $1,673
Operating income                                                          | $22,202           | $9,390             | $11,005       | $11,791
Income from continuing operations, net of income taxes                    | $  10,479         | $  7,256           | $ 23,373      | $ 15,387
Loss (income) from discontinued operations, net of income taxes           | $  (210)          | $  375             | $ 8,324       | $ (9)
Net Income                                                                | $  10,269         | $  7,631           | $ 31,697      | $ 15,378
Income from continuing operations attributable to noncontrolling interest | $  5              | $  10              | $ 11          | $ 8
Net income attributable to Advanced Energy Industries, Inc.               | $  10,264         | $  7,621           | $ 31,686      | $ 15,370
Earnings (Loss) Per Share:                                                |                   |                    |               |
Continuing Operations:                                                    |                   |                    |               |
Basic earnings per share                                                  | $  0.27           | $  0.19            | $ 0.61        | $ 0.40
Diluted earnings per share                                                | $  0.27           | $  0.19            | $ 0.61        | $ 0.40
Discontinued Operations:                                                  |                   |                    |               |
Basic loss per share                                                      | $  (0.01)         | $  0.01            | $ 0.22        | $ —
Diluted loss per share                                                    | $  (0.01)         | $  0.01            | $ 0.22        | $ —
Net Income:                                                               |                   |                    |               |
Basic earnings per share                                                  | $  0.27           | $  0.20            | $ 0.83        | $ 0.40
Diluted earnings per share                                                | $  0.27           | $  0.20            | $ 0.82        | $ 0.40 |


| _id | d1b332efc |
| title |  |
| text | Operating Income and Operating Margin
Operating income for fiscal 2019 increased $406 million, or 7%, over fiscal 2018.
Operating income and operating margin for each of the operating groups were as follows:
Amounts in table may not total due to rounding.

Amounts in table may not total due to rounding.
(1) Effective September 1, 2018, we adopted FASB ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Certain components of pension service costs were reclassified from Operating expenses to Non-operating expenses. Prior period amounts have been revised to conform with the current period presentation.

 |
| table | |                  | Fiscal           |                               |                  |
---------------------------------- | ---------------- | ---------------- | ----------------------------- | ---------------- | -------------------
                                   | 2019             |                  | 2018 (1)                      |                  |
                                   | Operating Income | Operating Margin | Operating Income              | Operating Margin | Increase (Decrease)
                                   |                  |                  | (in millions of U.S. dollars) |                  |
Communications, Media & Technology | $1,555           | 18%              | $1,380                        | 17%              | $175
Financial Services                 | 1,238            | 15               | 1,365                         | 16               | (128)
Health & Public Service            | 739              | 10               | 766                           | 11               | (27)
Products                           | 1,720            | 14               | 1,664                         | 15               | 56
Resources                          | 1,053            | 16               | 724                           | 12               | 330
TOTAL                              | $6,305           | 14.6%            | $5,899                        | 14.4%            | $406 |