hellotayssir/FinQA_TAT-QA_financial_finetuning_dataset huggingface dataset:
Item 14. Principal Accountant Fees and Services
Fees For Professional Audit Services
The following is a summary of fees billed by the Company’s independent registered public accountants, PricewaterhouseCoopers LLP, for the years ended December 31, 2019 and 2018:
(1) Represents the aggregate fees billed for the audit of the Company’s financial statements, review of the financial statements included in the Company’s quarterly reports and services in connection with the statutory and regulatory filings or engagements for those years.
(2)  Represents the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements and are not reported under “audit fees.”
(3)  Represents the aggregate fees billed for tax compliance, advice and planning.
(4)  Represents the aggregate fees billed for all products and services provided that are not included under “audit fees,” “audit-related fees” or “tax fees.”
Table:
 | Fiscal Year | Fiscal Year
 | 2019 | 2018
Audit Fees(1) | $1,925,000 | $1,956,000
Audit-Related Fees(2) | — | 14,000
Tax Fees(3) | — | —
All Other Fees(4) | 222,000 | 157,000
Total Fees | $2,147,000 | $2,127,000


Question: What is the ratio of total fees in 2019 to total fees in 2018?
Answer: 1.01
Calculation: 2,147,000/2,127,000
NOTE 21 — QUARTERLY INFORMATION (UNAUDITED)
(a) Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 – Income Taxes for further information.
(b) Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019.
(c) Reflects the net charge (benefit) related to the enactment of the TCJA of $13.8 billion for the second quarter, $(104) million for the fourth quarter, and $13.7 billion for fiscal year 2018.
(d) Reflects the net charge (benefit) related to the enactment of the TCJA, which decreased (increased) diluted EPS $1.78 for the second quarter, $(0.01) for the fourth quarter, and $1.75 for fiscal year 2018.
Table:
(In millions, except per share amounts) |  |  |  |  | 
Quarter Ended | September 30 | December 31 | March 31 | June 30 | Total
Fiscal Year 2019 |  |  |  |  | 
Revenue | $  29,084 | $  32,471 | $  30,571 | $  33,717 | $  125,843
Gross margin | 19,179 | 20,048 | 20,401 | 23,305 | 82,933
Operating income | 9,955 | 10,258 | 10,341 | 12,405 | 42,959
Net income (a) | 8,824 | 8,420 | 8,809 | 13,187 | 39,240
Basic earnings per share | 1.15 | 1.09 | 1.15 | 1.72 | 5.11
Diluted earnings per share (b) | 1.14 | 1.08 | 1.14 | 1.71 | 5.06
Fiscal Year 2018 |  |  |  |  | 
Revenue | $  24,538 | $ 28,918 | $ 26,819 | $ 30,085 | $ 110,360
Gross margin | 16,260 | 17,854 | 17,550 | 20,343 | 72,007
Operating income | 7,708 | 8,679 | 8,292 | 10,379 | 35,058
Net income (loss) (c) | 6,576 | (6,302) | 7,424 | 8,873 | 16,571
Basic earnings (loss) per share | 0.85 | (0.82) | 0.96 | 1.15 | 2.15
Diluted earnings (loss) per share (d) | 0.84 | (0.82) | 0.95 | 1.14 | 2.13


Question: Which quarter ended in fiscal year 2019 saw the highest revenue?
Answer: June 30
Calculation: 33,717 > 32,471 > 30,571 > 29,084
Debt
Our funding requirements are continually monitored and we execute our strategies to manage the overall asset and liability profile. Additionally, we maintain sufficient flexibility to access global funding sources as needed.
Total debt of $62,899 million increased $17,087 million from December 31, 2018, driven by issuances of $32,415 million; partially offset by debt maturities of $12,673 million and a decrease in commercial paper of $2,691 million.
Non-Global Financing debt of $38,173 million increased $23,587 million from prior year-end levels primarily driven by issuances to fund the Red Hat acquisition.
Global Financing debt of $24,727 million decreased $6,500 million from December 31, 2018, primarily due to the wind down of OEM IT commercial financing operations.
Global Financing provides financing predominantly for IBM’s external client assets, as well as for assets under contract by other IBM units. These assets, primarily for GTS, generate long-term, stable revenue streams similar to the Global Financing asset portfolio. Based on their attributes, these GTS assets are leveraged with the balance of the Global Financing asset base.
The debt used to fund Global Financing assets is composed of intercompany loans and external debt. Total debt changes generally correspond with the level of client and commercial financing receivables, the level of cash and cash equivalents, the change in intercompany and external payables and the change in intercompany investment from IBM. The terms of the intercompany loans are set by the company to substantially match the term, currency and interest rate variability underlying the financing receivable and are based on arm’s-length pricing. The Global Financing debt-to-equity ratio remained at 9 to 1 at December 31, 2019.
As previously stated, we measure Global Financing as a stand-alone entity, and accordingly, interest expense relating to debt supporting Global Financing’s external client and internal business is included in the “Global Financing Results of Operations” and in note D, “Segments.” In the Consolidated Income Statement, the external debt-related interest expense supporting Global Financing’s internal financing to IBM is reclassified from cost of financing to interest expense.
Table:
($ in millions) |  | 
At December 31: | 2019 | 2018
Total company debt | $62,899 | $45,812
Total Global Financing segment debt | $24,727 | $31,227
Debt to support external clients | 21,487 | 27,536
Debt to support internal clients | 3,239 | 3,690
Non-Global Financing debt | 38,173 | 14,585


Question: What was the increase in the Non-Global Financing debt from 2018?
Answer: $23,587 million
Return on invested capital (ROIC)
ROIC measures the after tax return on the total capital invested in the business. It is calculated as adjusted operating profit after tax divided by average invested capital.
An analysis of the components is as follows:
Table:
 | 2019 | 2018
 | £m | £m
Total equity | 826.3 | 766.9
Net debt | 334.1 | 235.8
Total invested capital | 1,160.4 | 1,002.7
Average invested capital | 1,081.6 | 992.9
Average invested capital (excluding IFRS 16) | 1,061.2 | 992.9
Operating profit as reported under IFRS | 245.0 | 299.1
Adjustments (see adjusted operating profit) | 37.7 | (34.2)
Adjusted operating profit | 282.7 | 264.9
Taxation | (80.6) | (73.1)
Adjusted operating profit after tax | 202.1 | 191.8
Adjusted operating profit after tax (excluding IFRS 16) | 201.2 | 191.8
Return in invested capital | 18.7% | 19.3%
Return in invested capital (excluding IFRS 16) | 19.0% | 19.3%


Question: What are the components factored in when calculating the total invested capital?
Answer: Total equity, Net debt
Contractual Obligations
The following table summarizes the payments due by fiscal year for our outstanding contractual obligations as of June 30, 2019:
(a) Refer to Note 11 – Debt of the Notes to Financial Statements.
(b) Refer to Note 7 – Property and Equipment of the Notes to Financial Statements.
(c) Refer to Note 15 – Leases of the Notes to Financial Statements.
(d) Refer to Note 12 – Income Taxes of the Notes to Financial Statements.
(e) Amounts represent purchase commitments, including open purchase orders and take-or-pay contracts that are not presented as construction commitments above.
(f) We have excluded long-term tax contingencies, other tax liabilities, and deferred income taxes of $14.2 billion from the amounts presented as the timing of these obligations is uncertain. We have also excluded unearned revenue and non-cash items.
Table:
(In millions) | 2020 | 2021-2022 | 2023-2024 | Thereafter | Total
Long-term debt: (a) |  |  |  |  | 
Principal payments | $ 5,518 | $ 11,744 | $ 8,000 | $ 47,519 | $ 72,781
Interest payments | 2,299 | 4,309 | 3,818 | 29,383 | 39,809
Construction commitments (b) | 3,443 | 515 | 0 | 0 | 3,958
Operating leases, including imputed interest (c) | 1,790 | 3,144 | 2,413 | 3,645 | 10,992
Finance leases, including imputed interest (c) | 797 | 2,008 | 2,165 | 9,872 | 14,842
Transition tax (d) | 1,180 | 2,900 | 4,168 | 8,155 | 16,403
Purchase commitments (e) | 17,478 | 1,185 | 159 | 339 | 19,161
Other long-term liabilities (f) | 0 | 72 | 29 | 324 | 425
Total | $  32,505 | $  25,877 | $  20,752 | $  99,237 | $  178,371


Question: What do the purchase commitments represent?
Answer: Amounts represent purchase commitments, including open purchase orders and take-or-pay contracts that are not presented as construction commitments above.
As of June 30, 2018, the Group’s investments consisted of the following:
As of June 30, 2018, the Group had $323.1 million of investments which were classified as short-term investments on the Group’s consolidated statements of financial position. Additionally, the Group had certificates of deposit and time deposits totaling $3.6 million which were classified as long-term and were included in other non- current assets on the Group’s consolidated statements of financial position.
Table:
 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value
 |  | (U.S. $ in thousands) |  | 
Debt Investments |  |  |  | 
U.S. treasury securities | $52,809 | $— | $(109) | $52,700
Agency securities | 22,097 | — | (82) | 22,015
Certificates of deposit and time deposits | 58,824 | — | — | 58,824
Commercial paper | 35,372 | — | — | 35,372
Corporate debt securities | 158,538 | 14 | (669) | 157,883
Total investments | $327,640 | $14 | $(860) | $326,794


Question: Based on fair value, what is the difference in value between U.S. treasury securities and agency securities?
Answer: 30685
Calculation: 52,700-22,015
The following table sets forth activity during the years ended December 31, 2019 and 2018 related to finite-lived intangible assets:
The Company regularly reviews the carrying amounts of its long-lived assets subject to depreciation and amortization, as well as the related useful lives, to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives. An impairment loss is recognized when the sum of the expected future undiscounted net cash flows is less than the carrying amount of the asset.
Should impairment exist, the impairment loss is measured based on the excess of the carrying amount of the asset over the asset’s fair value. During the years ended December 31, 2019 and 2017, no impairment losses related to finite-lived intangible assets were recognized. Impairment loss related to finite-lived intangible assets for the year ended December 31, 2018 was $2.2 million and related to acquired developed technology.
Table:
 | Years Ended December 31, | 
 | 2019 | 2018
 | (in thousands) | 
Beginning balance | $240,500 | $310,645
Other additions | 86 | —
Transfers to developed technology from IPR&D | 4,400 | —
Amortization | (57,015) | (67,947)
Impairment losses | — | (2,198)
Ending balance | $187,971 | 240,500


Question: What were the other additions in 2019 and 2018 respectively?
Answer: 86, 0
The following table summarizes activity for the interest rate swap:
There were no transfers between Level 1, Level 2 or Level 3 fair value hierarchy categories of financial instruments in the years ended December 31, 2019 and 2018.
Financial Instruments Not Recorded at Fair Value on a Recurring Basis
Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities include: cash and cash equivalents, restricted cash, net receivables, certain other assets, accounts payable, accrued price protection liability, accrued expenses, accrued compensation costs, and other current liabilities. The Company’s long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes (Note8 ).
Table:
 | Fair Value at December 31, | 
 | 2019 | 2018
 | (in thousands) | 
Interest rate swap |  | 
Beginning balance | $1,623 | $734
Unrealized gain (loss) recognized in other comprehensive income (loss) | (1,660) | 889
Ending balance | $(37) | 1,623


Question: What was the change in the ending balance from 2018 to 2019?
Answer: -1660
Calculation: -37 - 1,623
Opening Equity Balance Sheet Adjustments from Accounting Standards Adopted in 2018
On January 1, 2018, we adopted Topic 606, ASU 2018-02, Income Statement-Reporting Comprehensive Income and other ASUs. We adopted Topic 606 using the modified retrospective method. We early adopted ASU 2018-02, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from Tax Cuts and Jobs Act (TCJA).
The cumulative after-tax effect of the changes made to our consolidated balance sheet for the adoption of Topic 606, ASU 2018-02 and other ASUs was as follows:
Table:
 |  | Adjustments due to | Adjustments due to | Adjustments due to | 
(dollars in millions) | At December 31, 2017 | Topic 606 | ASU 2018-02 | Other ASUs | At January 1, 2018
Retained earnings | 35,635 | 2,890 | (652) | (6) | 37,867
Accumulated other comprehensive income | 2,659 | — | 652 | (22) | 3,289
Noncontrolling interests | 1,591 | 44 | — | — | 1,635


Question: What is the change in Retained earnings from December 31, 2017 to January 1, 2018?
Answer: 2232
Calculation: 37,867-35,635
4. SEPARATELY DISCLOSED ITEMS
The Group has disclosed underlying EBITDA1 and underlying profit after tax, referring to the Group’s trading results adjusted for certain transactions during the year that are not representative of the Group’s regular business activities. The Group considers that these transactions are of such significance to understanding the ongoing results of the Group that the Group has elected to separately identify these transactions to determine an ongoing result to enable a 'like-for-like' comparison. These items are described as 'separately disclosed items' throughout this Financial Report.
Transaction costs related to the acquisition of Sigma Systems (2018: acquisition of Enoro)
Transaction costs of $2,063,000 were incurred in relation to the acquisition of the Sigma Systems group of entities (Sigma). These include costs associated with vendor due diligence, legal and other administrative matters, as well as related travel costs incurred to meet representatives of Sigma’s management. These costs are included with 'Travel Expenses' and 'Other Expenses' in the Group’s consolidated statement of comprehensive income.
Further details of the acquisition of Sigma are described in Note 24.
In the prior year, transaction costs of $677,000 were incurred in relation to the acquisition of Enoro Holdings AS (subsequently renamed to Hansen Technologies Holdings AS during FY19) and its controlled subsidiaries. These costs were included with 'Other Expenses' in the Group’s consolidated statement of comprehensive income in the prior year.
Onerous lease provision
The Group recognised a provision on future lease payments for one of our offices in the Americas, as the non-cancellable future payments in the lease contract are expected to exceed the benefits from keeping the office over the remainder of the lease term. The Group has separately identified these costs because it is not in the normal course of business activities. These costs are included with 'Property and Operating Rental Expenses' in the Group’s consolidated statement of comprehensive income.
Restructuring costs incurred in Sigma Systems
Included in Sigma’s results for June are $72,000 of restructuring costs related to certain redundancy payments post-acquisition. These costs are included with 'Employee Benefit Expenses' in the Group’s consolidated statement of comprehensive income.
Table:
 |  | 2019 | 2018
 | Note | $’000 | $’000
Decrease to profit before tax |  |  | 
Transaction costs related to the acquisition of Sigma Systems (2018: acquisition of Enoro) | 24 | (2,063) | (677)
Onerous lease provision | 14 | (659) | -
Restructuring costs incurred in Sigma Systems |  | (72) | -
Total separately disclosed items |  | (2,794) | (677)


Question: What was the difference in transaction costs between the acquisition of Enoro in 2018 and acquisition of Sigma Systems in 2019?
Answer: 1386
Calculation: 2,063 - 677
15. Trade and other payables
Trade and other payables mainly consist of amounts owed to suppliers that have been invoiced or are accrued and contract liabilities relating to consideration received from customers in advance. They also include taxes and social security amounts due in relation to the Group’s role as an employer. Derivative financial instruments with a negative market value are reported within this note.
Accounting policies
Trade payables are not interest-bearing and are stated at their nominal value.
Notes: 1 Previously described as deferred income in the year ended 31 March 2018
2 Items are measured at fair value and the valuation basis is level 2 classification, which comprises items where fair value is determined from inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly
3 Includes €823 million (2018: €nil) payable in relation to the irrevocable and non-discretionary share buyback programme announced in January 2019.
The carrying amounts of trade and other payables approximate their fair value.
Materially all of the €1,716 million recorded as current contract liabilities at 1 April 2018 was recognised as revenue during the year.
Other payables included within non-current liabilities include €288 million (2018: €271 million) in respect of the re-insurance of a third party annuity policy related to the Vodafone and CWW Sections of the Vodafone UK Group Pension Scheme.
The fair values of the derivative financial instruments are calculated by discounting the future cash flows to net present values using appropriate market interest rates and foreign currency rates prevailing at 31 March.
Table:
 | 2019 | 2018
 | €m | €m
Included within non-current liabilities: |  | 
Other payables | 327 | 314
Accruals | 113 | 159
Contract liabilities1 | 574 | 237
Derivative financial instruments2 | 1,924 | 2,133
 | 2,938 | 2,843
Included within current liabilities: |  | 
Trade payables | 6,541 | 6,185
Amounts owed to associates and joint ventures | 26 | 27
Other taxes and social security payable | 1,218 | 1,177
Other payables3 | 1,410 | 1,346
Accruals | 6,120 | 5,579
Contract liabilities1 | 1,818 | 1,678
Derivative financial instruments2 | 520 | 250
 | 17,653 | 16,242


Question: How much is the 2018 other payables included within non-current liabilities?
Answer: 314
4. Property and Equipment
Property and equipment consist of the following (in thousands):
Depreciation and amortization expense was $0.9 million and $1.0 million for the years ended December 31, 2019 and 2018, respectively.
Table:
As of December 31, |  | 
 | 2019 | 2018
Computers, software, furniture and fixtures | $1,406 | $1,407
Equipment under capital lease  3,348 | 3,348 | 3,525
Less accumulated depreciation and amortization | (3,171) | (2,448)
Property and equipment, net | $1,583 | $2,484


Question: What is the net value of property and equipment as of December 31, 2019, and 2018, respectively? 
Answer: $1,583, $2,484
Note 20. Net Income Per Common Share From Continuing Operations
The following table sets forth the computation of basic and diluted net income per common share from continuing operations (in millions, except per share amounts):
The Company computed basic net income per common share from continuing operations based on the weighted average number of common shares outstanding during the period. The Company computed diluted net income per common share from continuing operations based on the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period.
Potentially dilutive common shares from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options and the assumed vesting of outstanding RSUs. Weighted average common shares exclude the effect of option shares which are not dilutive. There were no anti-dilutive option shares for the years ended March 31, 2019, 2018, and 2017.
Table:
 |  | Year Ended March 31, | 
 | 2019 | 2018 | 2017
Net income from continuing operations | $355.9 | $255.4 | $170.6
Basic weighted average common shares outstanding | 236.2 | 232.9 | 217.2
Dilutive effect of stock options and RSUs | 3.8 | 4.4 | 4.4
Dilutive effect of 2007 Junior Convertible Debt | — | 1.3 | 12.7
Dilutive effect of 2015 Senior Convertible Debt | 9.9 | 10.3 | 0.5
Dilutive effect of 2017 Senior Convertible Debt | — | — | —
Dilutive effect of 2017 Junior Convertible Debt | — | — | —
Diluted weighted average common shares outstanding | 249.9 | 248.9 | 234.8
Basic net income per common share from continuing operations | $1.51 | $1.10 | $0.79
Diluted net income per common share from continuing operations | $1.42 | $1.03 | $0.73


Question: What was the change in Net income from continuing operations between 2017 and 2018?
Answer: 84.8
Calculation: 255.4-170.6
As of December 31, 2019 and 2018, the fair value of the 2022 Notes, which was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the 2022 Notes in an over-the-counter market (Level 2), and carrying value of debt instruments (carrying value excludes the equity component of the Company’s convertible notes classified in equity) were as follows (in thousands):
In connection with the issuance of the 2022 Notes, the Company entered into capped call transactions with certain counterparties affiliated with the initial purchasers and others. The capped call transactions are expected to reduce potential dilution of earnings per share upon conversion of the 2022 Notes.
Under the capped call transactions, the Company purchased capped call options that in the aggregate relate to the total number of shares of the Company’s common stock underlying the 2022 Notes, with an initial strike price of approximately $33.71 per share, which corresponds to the initial conversion price of the 2022 Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the 2022 Notes, and have a cap price of approximately $47.20.
The cost of the purchased capped calls of $12.9 million was recorded to shareholders’ equity and will not be re-measured.
Based on the closing price of the Company’s common stock of $78.08 on December 31, 2019, the if-converted value of the 2022 Notes was more than their respective principal amounts.
Table:
 |  | As of December 31, |  | 
 | 2019 |  | 2018 | 
 | Fair Value | Carrying Value | Fair Value | Carrying Value
2022 Notes | $215,801 | $79,224 | $ 189,802 | $94,097


Question: What is the average fair value for the period December 31, 2019 to December 31, 2018?
Answer: 202801.5
Calculation: (215,801+189,802) / 2