| _id | d1b3a74e6 |
| title |  |
| text | 3.3 Trade receivables and contract assets
Recognition and measurement
All trade and other receivables recognised as current assets are due for settlement within no more than 30 days for marketing fees and within one year for trail commission. Trade receivables are measured on the basis of amortised cost.
It is the Group’s policy that all key partners who wish to trade on credit terms are subject to credit verification procedures.
Allowance for credit losses

Allowance for credit losses
iSelect applies the simplified approach and records lifetime expected losses on all trade receivables and contract assets. As a consequence, we do not track changes in credit risk, but recognise a loss allowance based on lifetime expected credit loss at each reporting date.

iSelect calculates its provision utilising historical credit loss experience, adjusted for other relevant factors, i.e. aging of receivables, credit rating of the debtor, etc. Debts that are known to be uncollectable are written off when identified. If an impairment allowance has been recognised for a debt that becomes uncollectable, the debt is written off against the provision. If an amount is subsequently recovered, it is credited against profit or loss.

As at 30 June 2019, expected credit losses are not considered material.
Contract assets

Contract assets are initially recognised for revenue earned from comparison, purchase support and referral services, as receipt of consideration is conditional on successful completion of a purchase between the customers and the product providers. Upon completion of sale and acceptance by the customer and the provider, invoices are issued to the provider for the amount receivable. These amounts invoiced are reclassified from contract assets to trade receivables. The trade receivable balance represents the

The trade receivable balance represents the Group’s unconditional right to receive the cash.

Key estimates – allowance for credit losses
We apply management judgement to estimate the expected credit losses for trade receivables and contract assets. Expected credit losses are assessed on an ongoing basis. Financial difficulties of the debtor, probability of default, delinquency in payments and credit ratings are utilised in this assessment.

 |
| table | | CONSOLIDATED CONSOLIDATED |
---------------------------------------------------------------------------------------- | ------------------------- | ----------
                                                                                | 2019 $’000                | 2018 $’000
Trade receivables                                                                        | 6,165                     | 4,952
Allowance for credit losses                                                              | -                         | (15)
Contract assets                                                                          | 16,824                    | 23,773
                                                                                | 22,989                    | 28,710
The ageing analysis of trade rec The ageing analysis of trade receivables is as follows: |                           |
Current                                                                                | 4,967                     | 4,408
Past due 1 – 30 days                                                                     | 1,024                     | 291
Past due 31 – 90 days                                                                    | 130                       | 108
Past due 90+ days                                                                        | 44                        | 130
                                                                                | 6,165                     | 4,937 |


| _id | d1b353dd2 |
| title |  |
| text | Global Services
Adjusteda revenue £4,735m
£4,735m
Adjusteda operating profit
£135m

Global Services operates in a global market that continues to experience high levels of change driven by both rapid technology innovation and a dynamic competitive landscape. Customers’ demands continue to evolve towards more flexible, on-demand models and new cloud-based and software-defined networking solutions. We continue to execute our Digital Global Services transformation programme to focus our business, standardise our operations, transform our underlying infrastructure, and provide innovative

underlying infrastructure, and provide innovative solutions to address the changing demands of our customers. We are focused on around 800 multinational companies and financial institutions served by three global industry verticals.

Adjusteda revenue for the year was down 6%, in line with our strategy to de-emphasise low margin business and including the impact of divestments. This includes a £35m negative impact from foreign exchange movements, primarily reflecting lower IP Exchange volumes and equipment sales.

Adjusteda operating costs for the year were down 8% mainly reflecting the decline in IP Exchange volumes and equipment sales and lower labour costs from our ongoing restructuring programme. Adjusteda EBITDA for the year was up £71m reflecting the reduction in operating costs and certain one-offs, more than offsetting the impact of lower revenue.
Depreciation and amortisation was down 13% for the year due to closure of certain projects in the prior year.

Capital expenditure was down 12% for the year reflecting ongoing rationalisation and our strategy to become a more asset light business. Normalised free cash flowb for the year improved by 151% to £296m, reflecting higher EBITDA, lower capital expenditure and improved working capital.
Total order intake was £3.3bn, down 15% year on year continuing to reflect a shift in customer behaviour, including shorter contract lengths and greater prevalence of usage-based terms.

a Adjusted measures exclude specific items, as explained in the Additional Information on page 185. b Free cash flow after net interest paid, before pension deficit payments (including the cash tax benefit of pension deficit payments) and specific items. c Openreach comparatives have been re-presented to reflect the transfer of Northern Ireland Networks from Enterprise to Openreach.

 |
| table | | 2019 (IFRS 15) | 2018 (IAS 18) | Change |
--------------------------- | -------------- | ------------- | ------ | -----
Year to 31 March            | £m             | £m            | £m     | %
Adjusted a revenue          | 4,735          | 5,013         | (278)  | (6)
Adjusted a operating costs  | 4,230          | 4,579         | (349)  | (8)
Adjusted a EBITDA           | 505            | 434           | 71     | 16
Depreciation & amortisation | 370            | 424           | (54)   | (13)
Adjusted a operating profit | 135            | 10            | 125    | 1,250
Capital expenditure         | 245            | 278           | (33)   | (12)
Normalised free cash flow b | 296            | 118           | 178    | 151 |


| _id | d1b33c330 |
| title |  |
| text | Financial information of associates and joint ventures:
There is no individually significant associate or joint venture for the Company. For individually immaterial associates and joint ventures, the following tables summarize the amount recognized by the Company at its share of those associates and joint ventures separately.

When an associate or a joint venture is a foreign operation, and the functional currency of the foreign entity is different from the Company, an exchange difference arising from translation of the foreign entity will be recognized in other comprehensive income (loss).

Such exchange differences recognized in other comprehensive income (loss) in the financial statements for the years ended December 31, 2017, 2018 and 2019 were NT$45 million, NT$(16) million and NT$(9) million, respectively, which were not included in the following table.
The aggregate amount of the Company’s share of all its individually immaterial associates that are accounted for using the equity method was as follows:

 |
| table | |                   | For the years ended December 31, |
-------------------------------------------- | ----------------- | -------------------------------- | ------------------
                                             | 2017              | 2018                             | 2019
                                             | $NT(In Thousands) | $NT (In Thousands)               | $NT (In Thousands)
Profit (loss) from continuing operations     | $77,589           | $(616,665)                       | $115,329
Post-tax profit from discontinued operations | 80,248            | —                                | —
Other comprehensive income (loss)            | 526,773           | (82,871)                         | 873,308
Total comprehensive income (loss)            | $684,610          | $(699,536)                       | $988,637 |


| _id | d1b2f9a8a |
| title |  |
| text | Balance Sheet and Cash Flows
Cash and Cash Equivalents and Investments The following table summarizes our cash and cash equivalents and investments (in millions):

The net decrease in cash and cash equivalents and investments from fiscal 2018 to fiscal 2019 was primarily driven by cash returned to shareholders in the form of repurchases of common stock of $20.7 billion under the stock repurchase program and cash dividends of $6.0 billion, net cash paid for acquisitions and divestitures of $2.2 billion, a net decrease in debt of $1.1 billion, and capital expenditures of $0.9 billion. These uses of cash were partially offset by cash provided by operating activities of

by cash provided by operating activities of $15.8 billion and the timing of settlements of investments and other of $2.0 billion.

In addition to cash requirements in the normal course of business, on July 9, 2019 we announced our intent to acquire Acacia Communications, Inc. (“Acacia”) for a purchase consideration of approximately $2.6 billion in cash. Additionally, $0.7 billion of the U.S. transition tax on accumulated earnings for foreign subsidiaries, $6.0 billion of long-term debt and $4.2 billion of commercial paper notes outstanding at July 27, 2019, are payable within the next 12 months from the balance sheet date. See further

months from the balance sheet date. See further discussion of liquidity and future payments under “Contractual Obligations” and “Liquidity and Capital Resource Requirements” below.

We maintain an investment portfolio of various holdings, types, and maturities. We classify our investments as short-term investments based on their nature and their availability for use in current operations. We believe the overall credit quality of our portfolio is strong, with our cash equivalents and our available-for-sale debt investment portfolio consisting primarily of high quality investment-grade securities. We believe that our strong cash and cash equivalents and investments position allows us to

equivalents and investments position allows us to use our cash resources for strategic investments to gain access to new technologies, for acquisitions, for customer financing activities, for working capital needs, and for the repurchase of shares of common stock and payment of dividends as discussed below.

 |
| table | | July 27, 2019 | July 28, 2018 | Increase (Decrease)
----------------------------------- | ------------- | ------------- | -------------------
Cash and cash equivalents .         | $11,750       | $8,934        | $2,816
Available-for-sale debt investments | 21,660        | 37,009        | (15,349)
Marketable equity securities        | 3             | 605           | (602)
Total                               | $33,413       | $46,548       | $(13,135) |


| _id | d1b348dce |
| title |  |
| text | (1)  The bonus paid in 2019, 2018 and 2017 was approved by the compensation Committee and Supervisory Board with respect to the 2018, 2017 and 2016 financial year, respectively, based on the evaluation and assessment of the actual fulfillment of a number of pre-defined objectives for such year.

(2)  Including stock awards, employer social contributions, company car allowance, pension contributions, complementary pension contributions, miscellaneous allowances as well as one-off contractually obligated deferred compensation paid to Mr. Bozotti in 2019.

In accordance with the resolutions adopted at our AGM held on May 30, 2012, the bonus of our former President and Chief Executive Officer, Mr. Bozotti, in 2018 and 2017 included a portion of a bonus payable in stock awards and corresponding to 86,782 and 59,435 vested shares, respectively, based on fulfillment of a number of pre-defined objectives.

In addition, our sole member of our Managing Board, President and Chief Executive Officer, Mr. Chery, was granted, in accordance with the compensation policy adopted by our General Meeting of Shareholders and subsequent shareholder authorizations, up to 100,000 unvested Stock Awards. The vesting of such stock awards is conditional upon the sole member of our Managing Board, President and Chief Executive Officer’s, continued service with us.

(3) In 2019, the total compensation of the sole member of our Managing Board, President and Chief Executive Officer was 46% fixed to 54% variable, compared to 12% fixed to 88% variable in 2018 and 44% fixed to 56% variable in 2017.

 |
| table | | 2019       | 2018        | 2017
-------------------------------- | ---------- | ----------- | ----------
Salary                           | $896,297   | $927,820    | $903,186
Bonus(1)                         | $1,280,173 | $3,214,578  | $1,044,514
Charges and Non-cash Benefits(2) | $5,618,382 | $6,971,946  | $1,828,814
Total(3)                         | $7,794,852 | $11,114,344 | $3,776,514 |


| _id | d1b39ec7e |
| title |  |
| text | OPERATING AND FINANCIAL RESULTS
(1) For the three-month period ended August 31, 2019, the average foreign exchange rate used for translation was 1.3222 USD/CDN.
(2) Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued
operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections.

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

 |
| table | Three months ended August 31,                 | 2019 (1) | 2018 (2) | Change | Change in constant currency | Foreign exchange impact
--------------------------------------------- | -------- | -------- | ------ | --------------------------- | -----------------------
(in thousands of dollars, except percentages) | $        | $        | %      | %                           | $
Revenue                                       | 583,673  | 566,184  | 3.1    | 2.7                         | 2,427
Operating expenses                            | 302,833  | 297,977  | 1.6    | 1.1                         | 1,441
Management fees – Cogeco Inc.                 | 5,230    | 4,796    | 9.0    | 9.0                         | -
Adjusted EBITDA                               | 275,610  | 263,411  | 4.6    | 4.3                         | 986
Adjusted EBITDA margin                        | 47.2%    | 46.5%    |        |                             | |


| _id | d1a72083a |
| title |  |
| text | 29. Share-based payments continued
Share Incentive Plan

In 2015, the Group established a Share Incentive Plan (‘SIP’). All eligible employees were awarded free shares (or nil-cost options in the case of employees in Ireland) valued at £3,600 each based on the share price at the time of the Company’s admission to the Stock Exchange in March 2015, subject to a three-year service period (‘Vesting Period’). The SIP shareholders are entitled to dividends over the Vesting Period. There are no performance conditions applicable to the vesting of SIP shares. The fair

applicable to the vesting of SIP shares. The fair value of the SIP awards at the grant date was measured to be £2.72 using the Black-Scholes model. The resulting share-based payments charge is being spread evenly over the Vesting Period.

 |
| table | | Group |      | Company |
------------------------------------------------ | ----- | ---- | ------- | ----
                                                 | 2019  | 2018 | 2019    | 2018
                                                 | £m    | £m   | £m      | £m
Share Incentive Plan (‘SIP’)                     | –     | 0.8  | –       | –
Sharesave scheme (‘SAYE’)                        | 0.3   | 0.3  | –       | –
Performance Share Plan (‘PSP’)                   | 2.1   | 1.8  | 1.3     | 0.7
Deferred Annual Bonus and Single Incentive Plan  | 2.3   | 0.4  | 0.4     | 0.2
Total share-based payment charge                 | 4.7   | 3.3  | 1.7     | 0.9
NI and apprenticeship levy on applicable schemes | 1.2   | 0.4  | 0.6     | 0.1
Total charge                                     | 5.9   | 3.7  | 2.3     | 1.0 |


| _id | d1b38c9f2 |
| title |  |
| text | The following table presents the principal components of the difference between the effective tax rate to the U.S. federal statutory income tax rate for the years ended March 31:
During fiscal 2018, we recorded a provisional tax benefit of approximately $3.3 million as a result of the enactment of the Tax Cuts and Jobs Act ("Tax Act") on December 22, 2017.

We completed the accounting for the Tax Act during Q3 fiscal 2019 and recorded an adjustment on December 31, 2018 of $0.2 million to increase our deferred tax liability associated with certain indefinite lived intangibles. We have elected to account for global intangible low-taxed income (GILTI) inclusions in the period in which they are incurred.

Our tax provision includes a provision for income taxes in certain foreign jurisdictions where subsidiaries are profitable, but only a minimal benefit is reflected related to U.S. and certain foreign tax losses due to the uncertainty of the ultimate realization of future benefits from these losses.

The 2019 tax provision results primarily from foreign tax expense, the reversal of reserves for uncertain tax positions and the completion of our accounting for the Tax Act. The 2019 tax provision differs from the statutory rate primarily due to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, state taxes and other U.S. permanent book to tax differences.

The 2018 tax provision primarily results from a reduction in the deferred rate and the ability to offset indefinite lived deferred tax liabilities with certain deferred tax assets due to passage of the Tax Act. The 2018 effective rate differs from the statutory rate primarily due to the impact of the Tax Act, recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, certain foreign and state tax effects including a benefit of $0.4 million related

including a benefit of $0.4 million related to a settlement with the California Franchise Tax Board and other U.S. permanent book to tax differences.

The 2017 tax provision primarily results from state taxes, taxes withheld in foreign jurisdictions and foreign tax expense. The 2017 tax provision differs from the statutory rate primarily due to the recognition of net operating losses as deferred tax assets, which were offset by increases in the valuation allowance, state taxes and other U.S. permanent book to tax differences.

 |
| table | (In thousands)                                      | 2019     | 2018     | 2017
--------------------------------------------------- | -------- | -------- | --------
Income tax benefit at the US Federal statutory rate | $(2,718) | $(3,654) | $(4,019)
Benefit for state taxes                             | (304)    | (642)    | (142)
Impact of foreign operations                        | (310)    | 38       | 158
Indefinite life assets                              | 130      | 335      | 102
Officer life insurance                              | 3        | (5)      | (6)
Change in valuation allowance                       | 3,302    | 3,328    | 4,007
Change in liability for unrecognized tax benefits   | (400)    | 40       | 9
Impact of Tax Act, net                              | 226      | (3,287)  | —
Meals and entertainment                             | 60       | 81       | 163
Equity                                              | 2        | 476      | —
Global intangible low-taxed income                  | 94       | —        | —
Other                                               | 136      | 39       | (36)
Total income tax expense (benefit)                  | $221     | $(3,251) | $236 |


| _id | d1b3a9b60 |
| title |  |
| text | The net contract acquisition expense deferred within the Consolidated Statement of Profit or Loss was $0.9M of the total $259.9M of Sales and Marketing costs (2018: $8.4M / $239.9M).
At 31 March 2019, trade receivables at a nominal value of $1.2M (2018: $0.9M) were impaired and fully provided for. Movements in the provision for impairment of receivables were as follows: 31

 |
| table | | 31 March 2019 | 31 March 2018
-------------------------------------- | ------------- | -------------
                                       | $M            | $M
At 1 April                             | 0.9           | 0.4
Charge for the year                    | 0.6           | 0.6
Amounts written off                    | (0.2)         | (0.1)
Effects of movements in exchange rates | (0.1)         | –
At 31 March                            | 1.2           | 0.9 |


| _id | d1b393bb2 |
| title |  |
| text | Network advertising revenue is generated primarily from the sale of television airtime for programs or advertisements. Network advertising revenue is recognized when the program or advertisement is broadcast. Revenues are reported net of agency commissions, which are calculated as a stated percentage applied to gross billings. The Network advertising contracts are generally short-term in nature.

Network distribution revenue consists of payments received from cable, satellite and other multiple video program distribution systems for their retransmission of our network content. Network distribution revenue is recognized as earned over the life of the retransmission consent contract and varies from month to month.

Variable fees are usage/sales based, calculated on the average number of subscribers, and recognized as revenue when the usage occurs. Transaction prices are based on the contract terms, with no material judgments or estimates.

Broadcast station revenue is generated primarily from the sale of television airtime in return for a fixed fee or a portion of the related ad sales recognized by the third party. In a typical broadcast station revenue agreement, the licensee of a station makes available, for a fee, airtime on its station to a party which supplies content to be broadcast during that airtime and collects revenue from advertising aired during such content.

Broadcast station revenue is recognized over the life of the contract, when the program is broadcast. The fees that we charge can be fixed or variable and the contracts that the Company enters into are generally short-term in nature. Variable fees are usage/salesbased and recognized as revenue when the subsequent usage occurs. Transaction prices are based on the contract terms, with no material judgments or estimates.

Disaggregation of Revenues The following table disaggregates the Broadcasting segment's revenue by type (in millions):

 |
| table | | Years Ended December 31, |
------------------------------------------- | ------------------------ | ------
                                            | 2019                     | 2018
Network advertising                         | $22.7                    | $28.2
Broadcast station                           | 11.9                     | 10.8
Network distribution                        | 4.9                      | 4.8
Other                                       | 2.3                      | 1.6
Total revenue from contracts with customers | 41.8                     | 45.4
Other revenue                               | -                        | -
Total Broadcasting segment revenue          | $ 41.8                   | $ 45.4 |


| _id | d1b3757ac |
| title |  |
| text | NOTE 6. ACCOUNTS RECEIVABLE AND REVENUES
Amounts billed and due from our customers are classified as accounts receivables on our consolidated balance sheets and require
payment on a short-term basis. Invoices are generally issued at the point control transfers and substantially all of our invoices are due
within 30 days or less, however certain customers have terms of up to 120 days. For substantially all of our contracts, control of the

ordered product(s) transfers at our location. Periodically, we require payment prior to the point in time we recognize revenue. Amounts

received from customers prior to revenue recognition on a contract are contract liabilities, are classified as customer prepayments liability on our consolidated balance sheets and are typically applied to an invoice within 30 days of the prepayment. Revenues in 2019 include $0.1 million in unearned revenue as of December 31, 2018, and in 2018 include less than $0.1 million in unearned revenue as of
January 1, 2018.

January 1, 2018.
Our accounts receivable potentially subject us to significant concentrations of credit risk. Revenues and accounts receivable from significant customers (customers with revenue or accounts receivable in excess of 10% of consolidated totals) are stated below as a percent of consolidated totals.

 |
| table | |     |     | Customer |     |
------------------------------------------------- | --- | --- | -------- | --- | ---
                                                  | A   | B   | C        | D   | E
% of revenue, 2019                                | 11% | 9%  | 16%      | 3%  | 2%
% of revenue, 2018                                | 17% | 14% | 1%       | 4%  | -%
% of accounts receivable, as of December 31, 2019 | 10% | 8%  | 31%      | -%  | 10%
% of accounts receivable, as of December 31, 2018 | 13% | -%  | 16%      | 14% | -% |


| _id | d1b34b8d0 |
| title |  |
| text | Summarized financial information of Hilli LLC
The assets and liabilities of Hilli LLC(1) that most significantly impacted our consolidated balance sheet as of December 31, 2019 and 2018, are as follows:
(1) As Hilli LLC is the primary beneficiary of the Hilli Lessor VIE (see above) the Hilli LLC balances include the Hilli Lessor VIE.

 |
| table | (in thousands of $)     | 2019      | 2018
----------------------- | --------- | ---------
Balance sheet           |           |
Current assets          | 64,507    | 172,554
Non-current assets      | 1,300,065 | 1,392,710
Current liabilities     | (496,029) | (278,728)
Non-current liabilities | (418,578) | (842,786) |


| _id | d1a73899e |
| title |  |
| text | Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. We record a receivable related to revenue recognized for multi-year on-premises licenses as we have an unconditional right to invoice and receive payment in the future

to invoice and receive payment in the future related to those licenses.

As of June 30, 2019 and 2018, long-term accounts receivable, net of allowance for doubtful accounts, was $2.2 billion and $1.8 billion, respectively, and is included in other long-term assets in our consolidated balance sheets.
The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence.

Activity in the allowance for doubtful accounts was as follows:

 |
| table | (In millions)                |         |        |
---------------------------- | ------- | ------ | ------
Year Ended June 30,          | 2019    | 2018   | 2017
Balance, beginning of period | $   397 | $  361 | $  409
Charged to costs and other   | 153     | 134    | 58
Write-offs                   | (116)   | (98)   | (106)
Balance, end of period       | $ 434   | $  397 | $  361 |


| _id | d1b32e6c2 |
| title |  |
| text | Contract costs As discussed in the Significant Accounting Policies Note, 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. The Partnership recognizes a contract asset for incremental commission costs paid to Verizon Wireless personnel and agents in conjunction with obtaining customer contracts.

The costs are only deferred when it is determined the commissions are incremental costs that would not have been incurred absent the customer contract and are expected to be recovered. 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 contracts are amortized over the customers' estimated device upgrade cycle of two to three years, as such costs are typically incurred

three years, as such costs are typically incurred each time a customer upgrades their equipment.

The amortization periods for the costs incurred to obtain a customer contract is determined 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. Deferred contract costs are classified as current or non-current within prepaid expenses and other, and other assets – net, respectively. The balances of deferred contract costs as of December 31, 2019 and 2018, included

costs as of December 31, 2019 and 2018, included in the balance sheet were as follows:

For the years ended December 31, 2019 and 2018, the Partnership recognized expense of $3,126 and $2,161, respectively, associated with the amortization of deferred contract costs, primarily within selling, general and administrative expenses in the statements of income.

Deferred contract costs are assessed for impairment on an annual basis. An impairment charge is recognized to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration expected to be received 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 year ended December 31, 2019 and 2018.

 |
| table | | 2019    | 2018
-------------------------- | ------- | -------
Assets                     |         |
Prepaid expenses and other | $ 3,027 | $ 2,347
Other assets - net         | 1,824   | 1,831
Total                      | $ 4,851 | $ 4,178 |


| _id | d1b35acf4 |
| title |  |
| text | GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
Key details of the term loan are as follows:
(1) The principal balance of the term loan is scheduled to be repaid on a quarterly basis at an amortization rate of 0.25% per quarter through December 31, 2024, with the balance due at maturity. For each of the next five years, principal repayments on the term loan are expected to be $4,000.

(2) For the years ended December 31, 2019 and 2018, debt discount of $613 and $593, respectively, and debt issuance costs of $1,062
and $1,091, respectively, were amortized into interest expense in the Consolidated Statements of Operations. Giving effect to the
amortization of debt discount and debt issuance costs on the term loan, the effective interest rates were 5.95% and 5.99% during the
years ended December 31, 2019 and 2018, respectively.

 |
| table | | December 31, |
---------------------------------- | ------------ | --------
                                   | 2019         | 2018
Term loan, face value(1)           | $393,000     | $397,000
Unamortized debt discount (2)      | (3,115)      | (3,728)
Unamortized debt issuance costs(2) | (5,388)      | (6,450)
Term loan                          | $384,497     | $386,822 |


| _id | d1b2f3a5e |
| title |  |
| text | 4.11 Income Taxes
The following table reconciles the amount of reported income taxes in the income statements with income taxes calculated at a statutory income tax rate of 27.0% for both 2019 and 2018.
Income taxes in 2019 increased by $138 million, compared to 2018, mainly due to higher taxable income and a lower value of uncertain tax positions favourably resolved in 2019 compared to 2018, partly offset by a favourable change in the corporate income tax rate in Alberta in Q2 2019.

 |
| table | FOR THE YEAR ENDED DECEMBER 31                       | 2019    | 2018
---------------------------------------------------- | ------- | -------
Net earnings                                         | 3,253   | 2,973
Add back income taxes                                | 1,133   | 995
Earnings before income taxes                         | 4,386   | 3,968
Applicable statutory tax rate                        | 27.0%   | 27.0%
Income taxes computed at applicable statutory rates  | (1,184) | (1,071)
Non-taxable portion of gains (losses) on investments | 4       | (9)
Uncertain tax positions                              | 15      | 68
Effect of change in provincial corporate tax rate    | 27      | –
Change in estimate relating to prior periods         | 14      | 20
Non-taxable portion of equity losses                 | (20)    | (10)
Previously unrecognized tax benefits                 | 9       | –
Other                                                | 2       | 7
Total income taxes                                   | (1,133) | (995)
Average effective tax rate                           | 25.8%   | 25.1% |


| _id | d1b2e2632 |
| title |  |
| text | Inventories
The components of inventories consist of the following (in millions):
Inventories are valued at the lower of cost and net realizable value using the first-in, first-out method. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable.

 |
| table | | March 31, |
----------------- | --------- | ------
                  | 2019      | 2018
Raw materials     | $74.5     | $26.0
Work in process   | 413.0     | 311.8
Finished goods    | 224.2     | 138.4
Total inventories | $711.7    | $476.2 |


| _id | d1b32309c |
| title |  |
| text | Liquidity and Capital Resources

As of December 31, 2019, we had total current assets of approximately $27.1 million, compared with current liabilities of approximately $6.1 million, resulting in working capital of approximately $21.0 million and a current ratio of approximately 4.4 to 1. This compares with the working capital balance of approximately $11.5 million and the current ratio of 3.7 to 1 at December 31, 2018. This increase in working capital, as discussed in more detail below, is primarily the result of the capital we raised in

primarily the result of the capital we raised in 2019.

Following is a table with summary data from the consolidated statement of cash flows for the years ended December 31, 2019 and 2018, as presented.

Our operating activities used approximately $1.7 million in the year ended December 31, 2019, as compared with approximately $0.8 million provided by operating activities in the year ended December 31, 2018. The cash provided in 2018 was the result of our net income and non-cash expenses, partially offset by the increased working capital required to support higher revenues. The cash used in operations in 2019 was the result of increased levels of working capital required to support higher revenue levels,

required to support higher revenue levels, expenditures related to growth, and costs associated with our acquisition in 2019.

We used approximately $5.7 million in investing activities in the year ended December 31, 2018, as compared with approximately $10.6 million used in investing activities in the year ended December 31, 2019. The majority of the investing activities in 2018 related to our acquisition of CareSpeak communications in October 2018. The majority of investing in activities in 2019 related to our acquisitions of RMDY Health, Inc. in 2019, as well as a software purchase in 2019.

Financing activities provided $8.7 million in the year ended December 31, 2018, as compared with $22.2 million in the year ended December 31, 2019. The cash provided in 2018 was primarily the result of the equity raised in connection with our uplisting to Nasdaq, as well as from the proceeds of option exercises. The cash used in 2019 was the result of our underwritten offering in 2019, as well as from the proceeds of option exercises.

With our cash on hand, we have sufficient cash to operate our business for more than the next 12 months and we do not anticipate the need to raise additional equity for operating purposes.

 |
| table | | 2019         | 2018
--------------------------------------------------- | ------------ | -----------
Net cash provided by (used in) operating activities | $(1,660,796) | $792,555
Net cash used in investing activities               | (10,582,086) | (5,686,833)
Net cash provided by financing activities           | 22,181,528   | 8,685,739
Net increase in cash and cash equivalents           | $9,938,646   | $3,791,461 |


| _id | d1b324adc |
| title |  |
| text | Our Net Financial Position as of December 31, 2019 was a net cash position of $672 million, decreasing compared to the net cash position of $686 million at December 31, 2018.

At December 31, 2019, our financial debt was $2,072 million, composed of (i) $173 million of current portion of long-term debt and (ii) $1,899 million of long-term debt. The breakdown of our total financial debt included: (i) $1,354 million in the senior unsecured convertible bonds issued in 2017, (ii) $706 million in European Investment Bank loans (the “EIB Loans”), and (iii) $12 million in loans from other funding programs and other long-term loans.

The EIB Loans are comprised of three long-term amortizing credit facilities as part of our R&D funding programs. The first, signed in 2010, is a €350 million multi-currency loan to support our industrial and R&D programs. It was drawn mainly in U.S. dollars for an amount of $321 million and only partially in Euros for an amount of €100 million, of which $55 million remained outstanding as of December 31, 2019.

The second, signed in 2013, is a €350 million multi-currency loan which also supports our R&D programs. It was drawn in U.S. dollars for an amount of $471 million, of which $118 million is outstanding as of December 31, 2019. The third, signed in August 2017 for a total aggregate amount of €500 million in relation to R&D and capital expenditure investments in the European Union. It was fully drawn in Euros corresponding to $533 million outstanding as of December 31, 2019.

 |
| table | |         | Year Ended December 31, |
------------------------------------------ | ------- | ----------------------- | -------
                                           | 2019    | 2018                    | 2017
                                           |         | (In millions)           |
Cash and cash equivalents                  | $2,597  | $2,266                  | $1,759
Restricted cash                            | 10      | —                       | —
Short-term deposits                        | 4       | —                       | —
Marketable securities                      | 133     | 330                     | 431
Total financial resources                  | 2,744   | 2,596                   | 2,190
Short-term debt, including bank overdrafts | (173)   | (146)                   | (118)
Long-term debt                             | (1,899) | (1,764)                 | (1,583)
Total financial debt                       | (2,072) | (1,910)                 | (1,701)
Net Financial Position                     | $672    | $686                    | $489 |


| _id | d1b37c246 |
| title |  |
| text | Note 12. Liabilities
The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands):

 |
| table | | December 31, 2019 | December 31, 2018
---------------------------------------------------- | ----------------- | -----------------
Deferred rent                                        | $ —               | $11,656
Contingent consideration liability from acquisitions | 2,595             | —
Holdback liability from acquisitions                 | 1,650             | —
Other liabilities                                    | 3,244             | 1,650
Other liabilities                                    | $7,489            | $13,306 |


| _id | d1b36eb0a |
| title |  |
| text | Balance sheet
(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details
Goodwill and intangible assets increased to €31.0 billion (2018: €29.5 billion) mainly as a result of acquisitions which contributed €1.2 billion and favourable currency impact of €0.5 billion driven by strengthening of the US Dollar and Pound Sterling.

In current assets, cash and cash equivalents increased by €1.0 billion. The increase is primarily due to strong cash delivery in several countries which will be used to repay short term debt in due course.
Current and non-current financial liabilities increased by €1.5 billion as a result of commercial paper issue and bank borrowings.
The net pension plan deficit was lower than prior year by €0.7 billion as
gains from investment performance exceeded the increase in liabilities.

 |
| table | | € million | € million
------------------------------ | --------- | -------------
                               | 2019      | 2018
                               |           | (Restated)(a)
Goodwill and intangible assets | 31,029    | 29,493
Other non-current assets       | 17,347    | 16,140
Current assets                 | 16,430    | 15,478
Total assets                   | 64,806    | 61,111
Current liabilities            | 20,978    | 20,150
Non-current liabilities        | 29,942    | 28,844
Total liabilities              | 50,920    | 48,994
Shareholders’ equity           | 13,192    | 11,397
Non-controlling interest       | 694       | 720
Total equity                   | 13,886    | 12,117
Total liabilities and equity   | 64,806    | 61,111 |


| _id | d1b3021b2 |
| title |  |
| text | 3.1 OPERATING RESULTS
(1) Fiscal 2019 average foreign exchange rate used for translation was 1.3255 USD/CDN.
(2) Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued
operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections.
(3) Fiscal 2019 actuals are translated at the average foreign exchange rate of fiscal 2018 which was 1.2773 USD/CDN.

 |
| table | Years ended August 31,                        | 2019 (1)  | 2018 (2)  | Change | Change in constant currency (3) | Foreign exchange impact (3)
--------------------------------------------- | --------- | --------- | ------ | ------------------------------- | ---------------------------
(in thousands of dollars, except percentages) | $         | $         | %      | %                               | $
Revenue                                       | 2,331,820 | 2,147,404 | 8.6    | 6.8                             | 37,433
Operating Expenses                            | 1,203,980 | 1,121,625 | 7.3    | 5.4                             | 21,636
Management fees – Cogeco Inc.                 | 19,900    | 18,961    | 5.0    | 5.0                             | -
Adjusted EBITDA                               | 1,107,940 | 1,006,818 | 10.0   | 8.5                             | 15,797
Adjusted EBITDA margin                        | 47.5%     | 46.9%     |        |                                 | |


| _id | d1b37e578 |
| title |  |
| text | 1.10 Percentage change in remuneration of the Group Chief Executive
The following table provides a summary of the 2019 increase in base salary, benefits and bonus for the Group Chief Executive compared to the average increase for the general UK employee population across the Group in the same period.
* 2018 percentage restated to include all UK bonuses for the general UK employee population across the Group.

 |
| table | |                              | 2019 change | 2018 change
-------- | ---------------------------- | ----------- | -----------
Salary   | Group Chief Executive        | 7.7%        | 2.7%
         | General employee population  | 2.9%        | 2.7%
Benefits | Group Chief Executive        | 5.2%        | 3.2%
         | General employee population  | 2.9%        | 2.7%
Bonus    | Group Chief Executive        | 15.5%       | -4.9%
         | General employee population* | 22.2%       | 1.6% |


| _id | d1b31bcc0 |
| title |  |
| text | 12. Geographic Information
The following table depicts the disaggregation of revenue by geographic region based on the ship to location of our customers and is consistent with how we evaluate our financial performance (in thousands)

 |
| table | |          | Years Ended December 31, |
----------------------------- | -------- | ------------------------ | --------
                              | 2019     | 2018                     | 2017
Americas                      | $89,944  | $112,506                 | $122,893
Japan                         | 59,454   | 55,205                   | 51,488
Asia Pacific, excluding Japan | 35,689   | 36,897                   | 33,189
EMEA                          | 27,541   | 27,615                   | 27,859
Total                         | $212,628 | $232,223                 | $235,429 |


| _id | d1b358e2c |
| title |  |
| text | Restricted Stock Units

Certain key employees have been granted time-based, performance-based and market-based restricted stock units. The time-based restricted stock units granted generally vest on a graded vesting schedule over three years. The performance-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 150%, depending on the specified performance condition and the level of achievement obtained. The performance-based restricted stock units have a vesting condition

restricted stock units have a vesting condition that is based upon the Company’s cumulative adjusted core earnings per share during the performance period. The market-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200%, depending on the specified performance condition and the level of achievement obtained. The market-based restricted stock units have a vesting condition that is tied to the Company’s total shareholder return based on the

Company’s total shareholder return based on the Company’s stock performance in relation to the companies in the Standard and Poor’s (S&P) Super Composite Technology Hardware and Equipment Index excluding the Company.

On October 6, 2017, the Company’s Compensation Committee approved the modification of vesting criteria for certain performance-based restricted stock units granted in fiscal year 2015. As a result of the modification, 0.8 million awards vested during the first quarter of fiscal year 2018, which resulted in approximately $24.9 million of stock-based compensation expense recognized.
The following table summarizes restricted stock units activity from August 31, 2018 through August 31, 2019:

(1) For those shares granted that are based on the achievement of certain performance criteria, the amount represents the maximum number of shares that can vest. During the fiscal year ended August 31, 2019, the Company awarded approximately 1.6 million time-based restricted stock units, 0.4 million performance based restricted stock units and 0.4 million market-based restricted stock units based on target performance criteria.

 |
| table | | Shares      | Weighted- Average Grant-Date Fair Value
--------------------------------- | ----------- | ---------------------------------------
Outstanding as of August 31, 2018 | 8,352,307   | $24.34
Changes during the period         |             |
Shares granted(1)                 | 3,144,205   | $25.25
Shares vested                     | (1,983,411) | $25.07
Shares forfeited                  | (2,347,628) | $24.78
Outstanding as of August 31, 2019 | 7,165,473   | $26.27 |


| _id | d1b301ca8 |
| title |  |
| text | F. Tabular Disclosure of Contractual Obligations
The following table sets forth our contractual obligations and commitments with definitive payment terms on a consolidated basis which will require significant cash outlays in the future as of December 31, 2019.
(1) Assuming the domestic bonds are paid off upon maturity.

(2) Represents our obligations to make lease payments mainly to use machineries, equipment, office and land on which our fabs are located, primarily in the Hsinchu Science Park and the Tainan Science Park in Taiwan, Pasir Ris Wafer Fab Park in Singapore.

(3) Represents commitments for purchase of raw materials and construction contracts, intellectual properties and royalties payable under our technology license agreements. These commitments include the amounts which are not recorded on our balance sheet as of December 31, 2019.
(4) Represents the guarantee deposits and financial liability for the repurchase of other investors’ investment. The amounts of payments due under these agreements are determined based on fixed contract amounts.

 |
| table | |         |                  | Payments Due by Period       |           |
---------------------------------- | ------- | ---------------- | ---------------------------- | --------- | -------------
                                   | Total   | Less than 1 Year | 1-3 Years                    | 4-5 Years | After 5 Years
                                   |         |                  | (in NT$ millions)$ millions) |           |
Long-term debt(1)                  |         |                  |                              |           |
Unsecured bonds                    | 39,940  | 20,660           | 10,590                       | 8,690     | —
Loans                              | 51,058  | 18,316           | 19,632                       | 13,098    | 12
Lease obligations(2)               | 7,128   | 741              | 1,414                        | 1,181     | 3,792
Purchase obligations(3)            | 38,878  | 29,832           | 2,845                        | 1,810     | 4,391
Other long-term obligations(4)     | 21,411  | 101              | 12,765                       | 8,446     | 99
Total contractual cash obligations | 158,415 | 69,650           | 47,246                       | 33,225    | 8,294 |


| _id | d1b34a7be |
| title |  |
| text | 3. Investment in Unconsolidated Entities

The Company has several investments in unconsolidated entities that are accounted for using the equity method of accounting. Red River Valley Egg Farm, LLC ("Red River") operates a cage-free shell egg production complex near Bogota, Texas. Specialty Eggs, LLC ("Specialty Eggs") owns the Egg-Land's Best franchise for most of Georgia and South Carolina, as well as a portion of western North Carolina and eastern Alabama. Southwest Specialty Eggs, LLC ("Southwest Specialty Eggs") owns the Egg-Land's Best

Specialty Eggs") owns the Egg-Land's Best franchise for Arizona, southern California and Clark County, Nevada (including Las Vegas). As of June 1, 2019, the Company owns 50% of each of Red River, Specialty Eggs, and Southwest Specialty Eggs. Equity method investments are included in “Investments in unconsolidated entities” in the accompanying Consolidated Balance Sheets and totaled $60.7 million and $64.2 million at June 1, 2019 and at June 2, 2018, respectively.

Equity in income of unconsolidated entities of $4.8 million, $3.5 million, and $1.4 million from these entities has been included in the Consolidated Statements of Operations for fiscal 2019, 2018, and 2017, respectively.
The condensed consolidated financial information for the Company's unconsolidated joint ventures was as follows (in thousands):

The Company is a member of Eggland’s Best, Inc. (“EB”), which is a cooperative. At June 1, 2019 and June 2, 2018, “Other long-term assets” as shown on the Company’s Consolidated Balance Sheet includes the cost of the Company’s investment in EB plus any qualified written allocations. The Company cannot exert significant influence over EB’s operating and financial activities; therefore, the Company accounts for this investment using the cost method. The carrying value of this investment at June 1, 2019 and

value of this investment at June 1, 2019 and June 2, 2018 was $2.6 million and $2.6 million, respectively.

 |
| table | |              | For the fiscal year ended |
----------------- | ------------ | ------------------------- | ------------
                  | June 1, 2019 | June 2, 2018              | June 3, 2017
Net sales         | $112,396     | $107,705                  | $86,072
Net income        | 9,490        | 7,071                     | 2,804
Total assets      | 128,470      | 134,056                   | 131,871
Total liabilities | 7,600        | 5,859                     | 6,543
Total equity      | 120,870      | 128,197                   | 125,328 |


| _id | d1b2e6b6a |
| title |  |
| text | 11 Intangible assets
(a) Intangible assets
RIGHTS AND LICENCES
Certain licences that NEXTDC possesses have an indefinite useful life and are carried at cost less impairment losses and are subject to impairment review at least annually and whenever there is an indication that it may be impaired.

Other licences that NEXTDC acquires are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over the estimated useful life. The estimated useful life and amortisation method are reviewed at the end of each annual reporting period.
INTERNALLY GENERATED SOFTWARE

INTERNALLY GENERATED SOFTWARE
Internally developed software is capitalised at cost less accumulated amortisation. Amortisation is calculated using the straight-line basis over the asset’s useful economic life which is generally two to three years. Their useful lives and potential impairment are reviewed at the end of each financial year.
SOFTWARE UNDER DEVELOPMENT

SOFTWARE UNDER DEVELOPMENT
Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised to software and systems. Costs capitalised include external direct costs of materials and services and employee costs.

Assets in the course of construction include only those costs directly attributable to the development phase and are only recognised following completion of technical feasibility and where the Group has an intention and ability to use the asset.

 |
| table | | 30 June 2019 | 30 June 2018
----------------------------- | ------------ | ------------
                              | $'000        | $'000
Rights and licences           | 13           | 13
Internally generated software | 7,381        | 6,385
Software under development    | 16,284       | 6,509
Total intangible assets       | 23,678       | 12,907 |


| _id | d1b3300b2 |
| title |  |
| text | Share-based payments expense for the period was $62,028,117 (2018: $57,710,434).
The variables in the table below are used as inputs into the model to determine the fair value of performance rights.
(1) Grant date represents the offer acceptance date.
(2) The expected volatility is based on the historical implied volatility calculated based on the weighted average remaining life of the performance rights adjusted for any expected changes to future volatility due to publicly available information.

 |
| table | | 2019        | 2018
----------------------------------------- | ----------- | -----------
                                          | F19 LTI     | F18 LTI
Grant date (1)                            | 30 Nov 2018 | 31 Oct 2017
Performance period start date             | 1 Jul 2018  | 1 Jul 2017
Exercise date                             | 1 Jul 2021  | 1 Jul 2020
Expected volatility (2)                   | 15.0%       | 16.0%
Expected dividend yield                   | 4.0%        | 4.0%
Risk-free interest rate                   | 2.1%        | 1.9%
Weighted average fair value at grant date | $24.63      | $20.23 |


| _id | d1b3afdf8 |
| title |  |
| text | The following table sets forth our 60-month backlog estimate, by reportable segment, as of December 31, 2019; September 30, 2019; June 30, 2019; March 31, 2019; and December 31, 2018 (in millions). The 60-month backlog estimate includes approximately $1.5 billion as a result of the acquisition of Speedpay, which occurred on May 9, 2019. Dollar amounts reflect foreign currency exchange rates as of each period end. This is a non-GAAP financial measure being presented to provide comparability across accounting

to provide comparability across accounting periods. We believe this measure provides useful information to investors and others in understanding and evaluating our financial performance.

Estimates of future financial results require substantial judgment and are based on several assumptions, as described above. These assumptions may turn out to be inaccurate or wrong for reasons outside of management’s control. For example, our customers may attempt to renegotiate or terminate their contracts for many reasons, including mergers, changes in their financial condition, or general changes in economic conditions in the customer’s industry or geographic location. We may also experience delays in

location. We may also experience delays in the development or delivery of products or services specified in customer contracts, which may cause the actual renewal rates and amounts to differ from historical experiences. Changes in foreign currency exchange rates may also impact the amount of revenue recognized in future periods. Accordingly, there can be no assurance that amounts included in backlog estimates will generate the specified revenues or that the actual revenues will be generated within the

the actual revenues will be generated within the corresponding 60-month period. Additionally, because certain components of Committed Backlog and all of Renewal Backlog estimates are operating metrics, the estimates are not required to be subject to the same level of internal review or controls as contracted but not recognized Committed Backlog.

 |
| table | | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018
-------------- | ----------------- | ------------------ | ------------- | -------------- | -----------------
ACI On Premise | $1,977            | $1,925             | $1,880        | $1,861         | $1,875
ACI On Demand  | 3,855             | 3,756              | 3,813         | 2,290          | 2,299
Total          | $5,832            | $5,681             | $5,693        | $4,151         | $4,174
               | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018
Committed      | $2,168            | $2,003             | $2,105        | $1,734         | $1,832
Renewal        | 3,664             | 3,678              | 3,588         | 2,417          | 2,342
Total          | $5,832            | $5,681             | $5,693        | $4,151         | $4,174 |


| _id | d1b35277a |
| title |  |
| text | Proofpoint, Inc. Notes to Consolidated Financial Statements (Continued) (dollars and share amounts in thousands, except per share amounts)

Also, as part of the share purchase agreement, the unvested restricted shares of a certain employee of ObserveIT were exchanged into the right to receive $532 of deferred cash consideration. The deferred cash consideration is presented as restricted cash on the Company’s consolidated balance sheet. The deferred cash consideration of $485 was allocated to post-combination expense and was not included in the purchase price. The deferred cash consideration is subject to forfeiture if employment terminates

is subject to forfeiture if employment terminates prior to the lapse of the restrictions, and the fair value is expensed as compensation expense over the three-year vesting period.

The Discounted Cash Flow Method was used to value the acquired developed technology, in-process research and development asset, customer relationships and order backlog. The Relief from Royalty Method was used to value the acquired trade name. Management applied significant judgment in estimating the fair values of these intangible assets, which involved the use of significant assumptions with respect to forecasted revenue, forecasted operating results and discount rates.

The following table summarizes the fair values of tangible assets acquired, liabilities assumed, intangible assets and goodwill:
*Purchased in-process research and development will be accounted for as an indefinite-lived intangible asset until the underlying project is completed or abandoned.
Meta Networks, Ltd.

Meta Networks, Ltd.
On May 15, 2019 (the “Meta Networks Acquisition Date”), pursuant to the terms of the share purchase agreement, the Company acquired all shares of Meta Networks, Ltd. (“Meta Networks”), an innovator in zero trust network access.

By combining Meta Networks’ innovative zero trust network access technology with the Company’s people-centric security capabilities the Company expects to make it far simpler for enterprises to precisely control employee and contractor access to on-premises, cloud and consumer applications.

These factors, among others, contributed to a purchase price in excess of the estimated fair value of acquired net identifiable assets and, as a result, goodwill was recorded in connection with the acquisition. The results of operations and the fair values of the acquired assets and liabilities assumed have been included in the accompanying consolidated financial statements since the Meta Networks Acquisition Date.  These factors, among others, contributed to a purchase price in excess of the estimated

to a purchase price in excess of the estimated fair value of acquired net identifiable assets and, as a result, goodwill was recorded in connection with the acquisition. The results of operations and the fair values of the acquired assets and liabilities assumed have been included in the accompanying consolidated financial statements since the Meta Networks Acquisition Date.

At the Meta Networks Acquisition Date, the consideration transferred was $104,664, net of cash acquired of $104. Of the consideration transferred, $12,500 was held in escrow to secure indemnification obligations, which has not been released as of the issuance of these consolidated financial statements. The revenue from Meta Networks was not material in 2019, and due to the continued integration of the combined businesses, it was impractical to determine the earnings.

 |
| table | | Estimated  | Estimated
------------------------------------ | ---------- | -----------
                                     | Fair value | Useful Life
                                     |            | (in years)
Current assets                       | $10,603    | N/A
Fixed assets                         | 2,132      | N/A
Operating lease right-of-use asset   | 2,669      | N/A
Other assets                         | 652        | N/A
Customer relationships               | 15,800     | 5
Order backlog                        | 1,300      | 1
Core/developed technology            | 35,400     | 4
Trade name                           | 400        | 2
In-process research and development* | 20,600     | N/A
Operating lease liabilities          | (3,317)    | N/A
Deferred revenue                     | (6,700)    | N/A
Other liabilities                    | (5,414)    | N/A
Goodwill                             | 144,374    | Indefinite
                                     | $218,499   | |


| _id | d1b34d946 |
| title |  |
| text | Contractual Obligations
The following summarizes our contractual obligations at June 30, 2019, and the effect such obligations are expected to have on our liquidity and cash flow in future periods (in thousands):
The contractual obligations referenced above are more specifically defined as follows:
Debt obligations relate to amounts owed under our Credit Agreement.

Inventory unconditional purchase obligations represent the purchase of long lead-time component inventory that our contract manufacturers procure in accordance with our forecast. We expect to honor the inventory purchase commitments within the next 12 months.
Contractual commitments to suppliers for future services.
Deferred payments represent Data Center Business consideration obligation of $1.0 million per quarter.

Contingent consideration for the Capital Financing Business acquisition, at fair value. Actual payments could be different
Non-cancelable operating lease obligations represent base rents and operating expense obligations.
Other liabilities include our commitments towards debt related fees and specific arrangements other than inventory.

The amounts in the table above exclude immaterial income tax liabilities related to uncertain tax positions as we are unable to reasonably estimate the timing of the settlement.
We did not have any material commitments for capital expenditures as of June 30, 2019.

 |
| table | | Total    | Less than
1 Year | 1-3 years     | 3-5 years   | More than
5 years
------------------------------------------------ | -------- | ---------------- | ------------- | ----------- | -----------------
Contractual Obligations:                         |          |                  |               |             |
Debt obligations                                 | $180,500 | $9,500           | $28,500       | $142,500    | $—
Interest on debt obligations                     | 25,582   | 8,333            | 14,952        | 2,297       | —
Inventory unconditional purchase obligations     | 51,241   | 51,241           | —             | —           | —
Contractual commitments                          | 94,000   | 23,500           | 47,000        | 23,500      | —
Non-cancellable operating lease obligations      | 104,678  | 22,733           | 41,854        | 23,804      | 16,287
Deferred payments for an acquisition             | 15,000   | 4,000            | 8,000         | 3,000       | —
Contingent consideration for an acquisition      | 6,298    | 4,236            | 2,013         | 49          | —
Other liabilities                                | 379      | 124              | 249           | 6           | —
Total contractual cash obligations               | $477,678 | $123,667         | $142,568      | $195,156    | $16,287 |


| _id | d1b376116 |
| title |  |
| text | 14. Selected Quarterly Financial Data (Unaudited)
Selected quarterly financial data for 2019 and 2018 is as follows (in thousands, except per share amounts):

 |
| table | |           | Quarter Ended |               |
-------------------------- | --------- | ------------- | ------------- | ------------
                           | March 31, | June 30,      | September 30, | December 31,
                           | 2019      | 2019          | 2019          | 2019
Revenue                    | $50,290   | $49,189       | $52,833       | $60,316
Gross profit               | $38,040   | $37,918       | $40,913       | $46,876
Net income (loss)          | $(12,272) | $(5,771)      | $173          | $51
Net loss per share-basic   | $(0.16)   | $(0.08)       | $—            | $—
Net loss per share-diluted | $(0.16)   | $(0.08)       | $—            | $—
                           |           | Quarter       | Ended         |
                           | March 31, | June 30,      | September 30, | December 31,
                           | 2018      | 2018          | 2018          | 2018
Revenue                    | $49,183   | $60,713       | $60,502       | $61,825
Gross profit               | $37,299   | $47,526       | $47,488       | $48,014
Net loss                   | $(19,670) | $(4,532)      | $(1,807)      | $(1,608)
Net loss per share-basic   | $(0.27)   | $(0.06)       | $(0.02)       | $(0.02)
Net loss per share-diluted | $(0.27)   | $(0.06)       | $(0.02)       | $(0.02) |


| _id | d1b313dcc |
| title |  |
| text | Geographical information
Net revenues by geography are based on the billing addresses of our customers. The following table represents net revenues by geographic area for the periods presented:
Note: The Americas include U.S., Canada, and Latin America; EMEA includes Europe, Middle East, and Africa; APJ includes Asia Pacific and Japan

Revenues from customers inside the U.S. were $2.8 billion, $2.8 billion, and $2.1 billion during fiscal 2019, 2018, and 2017, respectively. No other individual country accounted for more than 10% of revenues.

 |
| table | |                | Year Ended     |
------------------ | -------------- | -------------- | --------------
(In millions)      | March 29, 2019 | March 30, 2018 | March 31, 2017
Americas           | $3,028         | $3,031         | $2,329
EMEA               | 1,002          | 1,048          | 955
APJ                | 701            | 755            | 735
Total net revenues | $4,731         | $4,834         | $4,019 |


| _id | d1b35d094 |
| title |  |
| text | Item 14. Principal Accountant Fees and Services
The aggregate fees for professional services rendered by our independent registered public accounting firm, KPMG LLP, for Fiscal 2019 and Fiscal 2018 were:

(1) Audit fees were primarily for professional services rendered for (a) the annual audits of our consolidated financial statements and the accompanying attestation report regarding our ICFR contained in our Annual Report on Form 10- K, (b) the review of quarterly financial information included in our Quarterly Reports on Form 10-Q, (c) audit services related to mergers and acquisitions and offering documents, and (d) annual statutory audits where applicable.

(2) Audit-related fees were primarily for assurance and related services, such as the review of non-periodic filings with the SEC.
(3) Tax fees were for services related to tax compliance, including the preparation of tax returns, tax planning and tax advice.
(4) All other fees consist of fees for services other than the services reported in audit fees, audit-related fees, and tax fees.

OpenText's Audit Committee has established a policy of reviewing, in advance, and either approving or not approving, all audit, audit-related, tax and other non-audit services that our independent registered public accounting firm provides to us. This policy requires that all services received from our independent registered public accounting firm be approved in advance by the Audit Committee or a delegate of the Audit Committee. The Audit Committee has delegated the pre-approval responsibility to the

delegated the pre-approval responsibility to the Chair of the Audit Committee. All services that KPMG LLP provided to us in Fiscal 2019 and Fiscal 2018 have been preapproved by the Audit Committee.

The Audit Committee has determined that the provision of the services as set out above is compatible with the maintaining of KPMG LLP's independence in the conduct of its auditing functions.

 |
| table | | Year ended June 30, |
---------------------- | ------------------- | ------
(In thousands)         | 2019                | 2018
Audit fees (1)         | $4,598              | $4,701
Audit-related fees (2) | —                   | —
Tax fees (3)           | 108                 | 116
All other fees (4)     | 40                  | 101
Total                  | $4,746              | $4,918 |


| _id | d1b34cb5e |
| title |  |
| text | In November 2017, GMSL acquired the trenching and cable laying services business from Fugro N.V. ("Fugro"). As part of the transaction, Fugro became a 23.6% holder of GMSL's parent, Global Marine Holdings, LLC ("GMH"). GMSL, in the normal course of business, incurred revenue and expenses with Fugro for various services.

For the years ended December 31, 2019 and 2018, GMSL recognized $11.3 million and $9.3 million respectively, of expenses for transactions with Fugro. For the year ended December 31, 2019 GMSL recognized $0.8 million of revenues. The parent company of GMSL, GMH, incurred management fees of $0.6 million for each of the years ended December 31, 2019 and 2018.

GMSL also has transactions with several of their equity method investees. A summary of transactions with such equity method investees and balances outstanding are as follows (in millions):

 |
| table | | Years Ended December 31, |
--------------------- | ------------------------ | ------
                      | 2019                     | 2018
Net revenue           | $ 6.4                    | $ 21.8
Operating expenses    | $ 1.0                    | $ 4.8
Interest expense      | $ 1.0                    | $ 1.3
                      | December 31,             |
                      | 2019                     | 2018
Accounts receivable   | $ 1.2                    | $ 5.0
Long-term obligations | $ 22.5                   | $ 28.5
Accounts payable      | $ 0.1                    | $ 2.2
Dividends             | $ 4.5                    | $ 25.8 |


| _id | d1b3a9354 |
| title |  |
| text | CONSOLIDATED STATEMENTS OF OPERATIONS
The accompanying notes are an integral part of these consolidated financial statements.

 |
| table | | Fiscal Years Ended September |
------------------------------------------------------------------- | ---------------------------- | --------------
                                                                    | 2019                         | 2018
Sales (including excise taxes of $370.2 million and $368.4 million, | $1,392,388,157               | $1,322,306,658
Cost of sales                                                       | 1,308,364,726                | 1,245,375,460
Gross profit                                                        | 84,023,431                   | 76,931,198
Selling, general and administrative expenses                        | 72,182,883                   | 66,781,234
Depreciation and amortization                                       | 2,617,591                    | 2,318,146
Impairment charges                                                  | 2,873,269                    | 1,912,877
                                                                    | 77,673,743                   | 71,012,257
Operating income                                                    | 6,349,688                    | 5,918,941
Other expense (income):                                             |                              |
Interest expense                                                    | 1,598,864                    | 1,194,373
Other (income), net                                                 | (61,119)                     | (54,042)
                                                                    | 1,537,745                    | 1,140,331
Income from operations before income taxes                          | 4,811,943                    | 4,778,610
Income tax expense                                                  | 1,609,000                    | 1,164,000
Net income available to common shareholders                         | $ 3,202,943                  | $  3,614,610
Basic earnings per share available to common shareholders           | $ 5.36                       | $  5.47
Diluted earnings per share available to common shareholders         | $ 5.25                       | $  5.38
Basic weighted average shares outstanding                           | 597,961                      | 660,925
Diluted weighted average shares outstanding                         | 609,836                      | 672,449
Dividends declared and paid per common share                        | $ 1.00                       | $  1.00 |


| _id | d1b330422 |
| title |  |
| text | As described in Note 7, the acquisition of Norstel resulted in the recognition of technology in process for $86 million in the line “Technologies in progress”.
The line “Technologies in progress” in the table above also includes internally developed software under construction and software not ready for use.
The amortization expense in 2019, 2018 and 2017 was $69 million, $64 million and $58 million, respectively.

 |
| table | December 31, 2019                         | Gross Cost | Accumulated Amortization | Net Cost
----------------------------------------- | ---------- | ------------------------ | --------
Technologies & licenses                   | 699        | (578)                    | 121
Purchased & internally developed software | 486        | (427)                    | 59
Technologies in progress                  | 119        | —                        | 119
Other intangible assets                   | 70         | (70)                     | —
Total                                     | 1,374      | (1,075)                  | 299
December 31, 2018                         | Gross Cost | Accumulated Amortization | Net Cost
Technologies & licenses                   | 705        | (592)                    | 113
Purchased & internally developed software | 459        | (404)                    | 55
Technologies in progress                  | 44         | —                        | 44
Other intangible assets                   | 69         | (69)                     | —
Total                                     | 1,277      | (1,065)                  | 212 |


| _id | d1b3950ac |
| title |  |
| text | Note 9: Long-Term Debt
The Company's long-term debt consists of the following (annualized interest rates, dollars in millions):

(1) Interest is payable on June 1 and December 1 of each year at 1.00% annually. (2) Interest is payable on April 15 and October 15 of each year at 1.625% annually. (3) Consists of U.S. real estate mortgages, term loans, revolving lines of credit, notes payable and other facilities at certain international locations where interest is payable weekly, monthly or quarterly, with interest rates between 1.00% and 4.00% and maturity dates between 2019 and 2022.

(4) Debt discount of $20.4 million and $41.6 million for the 1.00% Notes, $71.8 million and $88.5 million for the 1.625% Notes and $10.5 million and $9.3 million for the Term Loan "B" Facility, in each case as of December 31, 2019 and December 31, 2018, respectively. (5) Debt issuance costs of $2.8 million and $5.8 million for the 1.00% Notes, $6.9 million and $8.5 million for the 1.625% Notes and $24.3 million and $19.2 million for the Term Loan "B" Facility, in each case as of December 31, 2019 and

in each case as of December 31, 2019 and December 31, 2018, respectively.

 |
| table | | As of             |
--------------------------------------------------------------------------------------------- | ----------------- | -----------------
                                                                                | December 31, 2019 | December 31, 2018
Amended Credit Agreement:                                                                     |                   |
Revolving Credit Facility due 2024, interest payable monthly at3 .30% and 3.77%, respectively | $800.0            | $400.0
Term Loan “B” Facility due 2026, interest payable monthly at3 .80% and 4.27%, respectively    | 1,630.9           | 1,134.5
1.00% Notes due 2020 (1)                                                                      | 690.0             | 690.0
1.625% Notes due 2023 (2)                                                                     | 575.0             | 575.0
Other long-term debt (3)                                                                      | 53.3              | 139.5
Gross long-term debt, including current maturities                                            | 3,749.2           | 2,939.0
Less: Debt discount (4)                                                                       | (102.7)           | (139.4)
Less: Debt issuance costs (5)                                                                 | (34.0)            | (33.5)
Net long-term debt, including current maturities                                              | 3,612.5           | 2,766.1
Less: Current maturities                                                                      | (736.0)           | (138.5)
 Net long-term debt                                                                           | $2,876.5          | $2,627.6 |


| _id | d1b3bb91e |
| title |  |
| text | The Company sponsors a defined benefit plan, the Woolworths Group Superannuation Plan (WGSP or the Plan), that provides superannuation benefits for employees upon retirement. The defined benefit plan is closed to new members. The assets of the WGSP are held in a sub-plan within AMP SignatureSuper that is legally separated from the Group. The WGSP invests entirely in pooled unit trust products where prices are quoted on a daily basis.

The WGSP consists of members with defined benefit entitlements and defined contribution benefits. The plan also pays allocated pensions to a small number of pensioners. The following disclosures relate only to the Group’s obligation in respect of defined benefit entitlements.

The Group contributes to the WGSP at rates as set out in the Trust Deed and Rules and the Participation Deed between the Group and AMP Superannuation Limited. Members contribute to the WGSP at rates dependent upon their membership category. The plan provides lump sum defined benefits that are defined by salary and period of membership.

An actuarial valuation was carried out at both reporting dates by Mr Nicholas Wilkinson, FIAA, Willis Towers Watson. The principal actuarial assumptions used for the purpose of the valuation are as follows:

 |
| table | | 2019 | 2018
-------------------------------- | ---- | ----
                                 | %    | %
Discount rate                    | 2.9  | 3.8
Expected rate of salary increase | 2.5  | 2.5
Rate of price inflation          | 2.0  | 2.0 |


| _id | d1b38d4ec |
| title |  |
| text | Warranty Obligations
We offer warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based upon historical experience and our estimate of the level of future costs. While we engage in product quality programs and processes, our warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure.

We continuously monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified field failures. As we sell new products to our customers, we must exercise considerable judgment in estimating the expected failure rates. This estimating process is based on historical experience of similar products, as well as various other assumptions that we believe to be reasonable under the circumstances.

We provide for the estimated cost of product warranties at the time revenue is recognized. Warranty costs are reflected in the Consolidated Statement of Income as a Cost of revenues. A reconciliation of the changes in our warranty liability is as follows (in thousands):

 |
| table | |                   | Fiscal Year Ended |
---------------------------- | ----------------- | ----------------- | -----------------
                             | December 28,
2019 | December 29, 2018 | December 30, 2017
Balance at beginning of year | $2,102            | $ 3,662           | $2,972
Accruals                     | 3,881             | 3,181             | 8,115
Settlements                  | (4,041)           | (4,741)           | (7,425)
Balance at end of year       | $1,942            | $2,102            | $3,662 |


| _id | d1b2ee798 |
| title |  |
| text | 22. Cash and cash equivalents
Cash at bank earns interest at floating interest rates. Of the total cash and cash equivalents balance, $79.3 million (2018 $63.9 million) is callable at notice of three months or less at the date of investment.
Short-term bank deposits are made for varying periods of between one day and three months depending on the cash requirements of the Group and earn interest at the short-term deposit rates appropriate for the term of the deposit and currency.

At the end of 2019, the currency split of cash and cash equivalents was US Dollar 78 per cent (2018 83 per cent), Sterling 11 per cent (2018 8 per cent) and other currencies 11 per cent (2018 9 per cent).
For the purposes of the cash flow statement, cash and cash equivalents comprise the above amounts.

 |
| table | | 2019      | 2018
------------------------ | --------- | ---------
                         | $ million | $ million
Cash at bank             | 103.9     | 57.7
Short-term bank deposits | 79.3      | 63.9
                         | 183.2     | 121.6 |


| _id | d1b30124e |
| title |  |
| text | The following is a summary of investments, including those that meet the definition of a cash equivalent, as of December 31, 2018 (in thousands):

As of December 31, 2019, the Company’s investment in corporate bonds and US treasury securities had a weighted-average maturity date of approximately five months. Unrealized gains and losses on investments were not significant individually or in aggregate, and the Company does not believe the unrealized losses represent other-than-temporary impairments as of December 31, 2019.

 |
| table | | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value
------------------------------- | -------------- | ---------------- | ----------------- | ----------
Current assets:                 |                |                  |                   |
Cash                            | $54,275        | $—               | $—                | $54,275
Cash equivalents:               |                |                  |                   |
Money market funds              | 129,321        | —                | —                 | 129,321
Total cash equivalents          | 129,321        | —                | —                 | 129,321
Total cash and cash equivalents | 183,596        | —                | —                 | 183,596
Short-term investments:         |                |                  |                   |
Corporate bonds                 | 58,115         | —                | (82)              | 58,033
US treasury securities          | 138,826        | —                | (100)             | 138,726
Commercial paper                | 7,973          | —                | —                 | 7,973
Total short-term investments    | 204,914        | —                | (182)             | 204,732
Long-term investments:          |                |                  |                   |
Strategic investments           | 1,250          | —                | —                 | 1,250
Total long-term investments     | $1,250         | $—               | $—                | $1,250 |


| _id | d1b36daca |
| title |  |
| text | ITEM 2. PROPERTIES
The Company leases the following real property:
The Company executed a three-year lease beginning in October 2017 for approximately 83,000 square feet for our Aurora, Illinois headquarters facility.
During fiscal year 2019, the Company executed a two-year lease beginning in September 2018 for approximately 2,300 square feet for our Manchester, New Hampshire IBW office space.
The Company is currently evaluating a replacement lease for the ISM design center in Ohio.

On April 1, 2013, as a result of the Kentrox acquisition, the Company acquired a sixteen acre parcel of land in Dublin, Ohio. The Company sold four acres in April 2015 and is marketing the remaining twelve acres for sale.

 |
| table | Location       | Purpose                                                        | Square footage  | Termination calendar year | Segment
-------------- | -------------------------------------------------------------- | --------------- | ------------------------- | -------
Aurora, IL     | Corporate headquarters, office, distribution and manufacturing | 83,000          | 2020                      |
Dublin, OH     | Design center                                                  | 9,465           | 2019                      | ISM
Manchester, NH | IBW office                                                     | 2,287           | 2020                      | IBW |


| _id | d1b3ba1fe |
| title |  |
| text | Executive Overview of Results – Fiscal Years Ended June 1, 2019, June 2, 2018, and June 3, 2017
Our operating results are significantly affected by wholesale shell egg market prices and feed costs, which can fluctuate
widely and are outside of our control. The majority of our shell eggs are sold at independently quoted wholesale
market prices for shell eggs or formulas related to our costs of production which include the cost of corn and soybean

meal. The following table shows our net income (loss), gross profit, net average shell egg selling price, the average
Urner Barry wholesale large shell egg prices in the southeast region, and feed cost per dozen produced for each of our
three most recent fiscal years.
The shell egg industry has historically been subject to periods of high profitability followed by periods of significant
loss. The periods of high profitability have often reflected increased consumer demand relative to supply while the

periods of significant loss have often reflected excess supply for the then prevailing consumer demand. Historically,
demand for shell eggs increases in line with overall population growth. As reflected above, our operating results
fluctuate with changes in the spot egg market quote and feed costs. The net average shell egg selling price is the

blended price for all sizes and grades of shell eggs, including non-graded shell egg sales, breaking stock and undergrades. In fiscal 2017, our net average selling price and dozens sold decreased over the previous fiscal year
primarily due to the oversupply of eggs resulting from the repopulation of the national flock of laying hens to levels
exceeding the flock size prior to the avian influenza outbreak in 2015, along with a reduced demand for egg products. In

fiscal 2018, strong demand resulted in an increase in our average selling price and dozens sold, and feed costs decreased
over prior years. Fiscal 2019 saw an increasing U.S. flock size result in oversupply of eggs, particularly in the last half
of the fiscal year. This resulted in decreased gross profit and net income for fiscal 2019.
NET SALES
Net sales for the fiscal year ended June 1, 2019 were $1,361.2 million, a decrease of $141.7 million, or 9.4%, from

net sales of $1,502.9 million for fiscal 2018. The decrease was primarily due to lower selling prices for non-specialty
eggs in fiscal 2019 due to the oversupply of eggs, particularly in the last half of the fiscal year, contrasted with fiscal
2018 in which we experienced strong demand resulting in higher prices for non-specialty eggs.

In fiscal 2019, shell egg sales made up approximately 97% of our net sales. Total dozens sold in fiscal 2019 were 1,038.9 million, an increase of 1.2 million dozen, or 0.1%, compared to 1,037.7 million sold in fiscal 2018 resulting in an increase in net sales of $1.7 million for fiscal 2019 compared with the prior year.

Net average selling price of shell eggs decreased from $1.397 per dozen for fiscal 2018 to $1.265 per dozen for fiscal 2019, a decrease of $0.132 per dozen, or 9.4%, primarily reflecting an abundance of eggs in the market. The decrease in sales price in fiscal 2019 from fiscal 2018 resulted in a corresponding decrease in net sales of approximately $137.1 million. Our operating results are significantly affected by wholesale shell egg market prices, which are outside of our control. Small changes in

are outside of our control. Small changes in production or demand levels can have a large effect on shell egg prices.

Egg products accounted for approximately 3% of our net sales. These revenues were $41.5 million for the fiscal year
ended June 1, 2019 compared with $43.5 million for the fiscal 2018.

 |
| table | Fiscal Year ended                                                        | June 1, 2019 | June 2, 2018 | June 3, 2017
------------------------------------------------------------------------ | ------------ | ------------ | ------------
Net income (loss) attributable to Cal-Maine Foods, Inc. - (in thousands) | $54,229      | $125,932     | $(74,278)
Gross profit (in thousands)                                              | 222,859      | 361,046      | 45,550
Net average shell egg selling price (rounded)                            | 1.27         | 1.40         | 1.01
Average Urner Barry Spot Egg Market Quotations 1                         | 1.23         | 1.49         | 0.85
Feed cost per dozen produced                                             | 0.415        | 0.394        | 0.399 |


| _id | d1a7210fa |
| title |  |
| text | NOTE 4. OTHER ASSETS
Goodwill
The carrying amount of goodwill for the fiscal years ended June 30, 2019 and 2018, by reportable segments, is as follows:

Goodwill acquired during fiscal 2019 totaled $17,015, with $12,893 of that resulting from the purchase of BOLTS Technologies, Inc., $3,999 resulting from the purchase of Agiletics, Inc., and the remainder resulting from a measurement period adjustment on the Ensenta valuation. The goodwill arising from these acquisitions consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with those of BOLTS Technologies and Agiletics, together

of BOLTS Technologies and Agiletics, together with the value of their assembled workforces. No goodwill was assigned to the Company’s Corporate and Other reportable segment.

Goodwill acquired during fiscal 2018 totaled $97,597, with $91,098 of that resulting from the purchase of Ensenta Corporation, included in the Payments segment. The remaining $6,499 of goodwill acquired during fiscal 2018 resulted from the purchase of Vanguard Software Group, which was added to the Company’s Complementary segment. The goodwill arising from these acquisitions consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with

from combining the operations of the Company with those of Ensenta and Vanguard, together with the value of their assembled workforces. No goodwill was assigned to the Company’s Corporate and Other reportable segment.

The Goodwill reduction during fiscal 2018 was a result of the Company’s sale of jhaDirect product line in the first quarter. Goodwill allocated to the carrying amount of the net assets sold was calculated based on the relative fair values of the business disposed and the portion of the reporting unit that was retained.

 |
| table | | June 30, |
--------------------------------------------- | -------- | --------
Core                                          | 2019     | 2018
Beginning balance                             | $195,956 | $195,956
Goodwill, acquired during the year            | 4,000    | —
Goodwill, adjustments related to dispositions | —        | —
Ending balance                                | $199,956 | $195,956
Payments                                      |          |
Beginning balance                             | $325,204 | $234,106
Goodwill, acquired during the year            | 122      | 91,098
Goodwill, adjustments related to dispositions | —        | —
Ending balance                                | $325,326 | $325,204
Complementary                                 |          |
Beginning balance                             | $128,769 | $122,403
Goodwill, acquired during the year            | 12,893   | 6,499
Goodwill, adjustments related to dispositions | —        | (133)
Ending balance                                | $141,662 | $128,769 |


| _id | d1b352216 |
| title |  |
| text | AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in millions, unless otherwise disclosed)
As of December 31, 2019, the Company does not have material operating or financing leases that have not yet commenced.
Maturities of operating and finance lease liabilities as of December 31, 2019 were as follows:
(1) Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.

 |
| table | Fiscal Year                             | Operating Lease (1) | Finance Lease (1)
--------------------------------------- | ------------------- | -----------------
2020                                    | $904.3              | $8.0
2021                                    | 878.3               | 5.3
2022                                    | 845.5               | 4.3
2023                                    | 810.3               | 3.0
2024                                    | 766.4               | 2.1
Thereafter                              | 6,140.1             | 45.4
Total lease payments                    | 10,344.9            | 68.1
Less amounts representing interest      | (3,340.0)           | (37.4)
Total lease liability                   | 7,004.9             | 30.7
Less current portion of lease liability | 494.5               | 6.7
Non-current lease liability             | $6,510.4            | $24.0 |