hellotayssir/FinQA_TAT-QA_financial_finetuning_dataset huggingface dataset:
Cost of Revenues and Gross Margin
Subscription cost of revenues and gross margin. Cost of subscriptions revenues increased by $50.9 million, or 46%, during fiscal year 2019 as compared to fiscal year 2018. Primary drivers of the increase were increases in third-party costs to support our solution offerings of $21.5 million, infrastructure support costs of $19.8 million including amortization expense from acquired intangible assets, and headcount and personnel and contractor related costs of $9.6 million including share-based compensation expense. These factors resulted in a decrease in gross margin.
The increase in headcount and other expense categories described herein was driven primarily by investments in our infrastructure and capacity to improve the availability of our subscription offerings, while also supporting the growth in new customers and increased usage of our subscriptions by our existing customer base. We expect subscription gross margin to be within a relatively similar range in the future.
Other cost of revenues and gross margin. Cost of other revenues increased by $23.0 million, or 48%, during fiscal year 2019 as compared to fiscal year 2018. This was primarily due to the increase in services personnel costs of $11.1 million including share-based compensation expense, cost of product sales of $10.6 million, and overhead costs of $1.3 million. Other revenues gross margin fluctuates based on timing of completion of professional services projects and discounting on phones.
Table:
 | Year ended December 31, |  |  |  | Year ended December 31, |  |  | 
(in thousands, except percentages) | 2019 | 2018 | $ Change | % Change | 2018 | 2017 | $ Change | % Change
Cost of revenues |  |  |  |  |  |  |  | 
Subscriptions | $160,320 | $109,454 | $50,866 | 46% | $109,454 | $89,193 | $20,261 | 23%
Other | 70,723 | 47,675 | 23,048 | 48% | 47,675 | 32,078 | 15,597 | 49%
Total cost of revenues | $231,043 | $157,129 | $73,914 | 47% | $157,129 | $121,271 | $35,858 | 30%
Percentage of revenues |  |  |  |  |  |  |  | 
Subscriptions | 18% | 16% |  |  | 16% | 18% |  | 
Other | 8% | 7% |  |  | 7% | 6% |  | 
Gross margins |  |  |  |  |  |  |  | 
Subscriptions | 80% | 82% |  |  | 82% | 81% |  | 
Other | 17% | 22% |  |  | 22% | 16% |  | 
Total gross margin % | 74% | 77% |  |  | 77% | 76% |  | 


Question: What is the average cost of subscription between 2017 to 2019?
Answer: 119655.67
Calculation: (89,193 + 109,454 + 160,320)/3
ITEM 6. SELECTED FINANCIAL DATA
The following selected financial data has been derived from our consolidated financial statements (in thousands, except per share data). This data should be read together with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, and the consolidated financial statements and related notes included elsewhere in this annual report. The financial information below is not necessarily indicative of the results of future operations. Future results could differ materially from historical results due to many factors, including those discussed in Item 1A, Risk Factors.
(1) The consolidated balance sheet and statement of operations for the year ended December 31, 2019, includes the acquisition of Speedpay as discussed in Note 3, Acquisition, to our Notes to Consolidated Financial Statements in Part IV, Item 15 of this Form 10-K.
(2) The consolidated balance sheet and statement of operations for the year ended December 31, 2019, reflects the application of Accounting Standards Update (“ASU”) 2016-02, Leases (codified as “ASC 842”) as discussed in Note 14, Leases, to our Notes to Consolidated Financial Statements.
(3) The consolidated balance sheet and statement of operations for the year ended December 31, 2018, reflects the adoption of ASU 2014-09, Revenue from Contracts with Customers (codified as “ASC 606”), as discussed in Note 2, Revenue, to our Notes to Consolidated Financial Statements, including a cumulative adjustment of $244.0 million to retained earnings.
(4) The consolidated statement of operations for the year ended December 31, 2017, reflects the Baldwin Hackett & Meeks, Inc. (“BHMI”) judgment. We recorded $46.7 million in general and administrative expense and $1.4 million in interest expense, as discussed in Note 15, Commitments and Contingencies, to our Notes to Consolidated Financial Statements.
(5) The consolidated balance sheet and statement of operations for the year ended December 31, 2016, reflects the sale of Community Financial Services assets and liabilities.
Table:
 |  |  | Years Ended December 31, |  | 
 | 2019 (1)(2) | 2018 (3) | 2017 (4) | 2016 (5) | 2015
Income Statement Data: |  |  |  |  | 
Total revenues | $ 1,258,294 | $ 1,009,780 | $ 1,024,191 | $ 1,005,701 | $ 1,045,977
Net income | 67,062 | 68,921 | 5,135 | 129,535 | 85,436
Earnings per share: |  |  |  |  | 
Basic | $ 0.58 | $ 0.59 | $ 0.04 | $ 1.10 | $ 0.73
Diluted | $ 0.57 | $ 0.59 | $ 0.04 | $ 1.09 | $ 0.72
Weighted average common shares outstanding: |  |  |  |  | 
Basic | 116,175 | 116,057 | 118,059 | 117,533 | 117,465
Diluted | 118,571 | 117,632 | 119,444 | 118,847 | 118,919


Question: What was the percentage change in net income between 2018 and 2019?
Answer: -2.7
Calculation: (67,062-68,921)/68,921
Note 20 Trade payables and other liabilities
(1) Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other expense in the income statements.
Table:
FOR THE YEAR ENDED DECEMBER 31 | NOTE | 2019 | 2018
Trade payables and accruals |  | 2,604 | 2,535
Compensation payable |  | 589 | 589
Maple Leaf Sports and Entertainment Ltd. (MLSE) financial liability (1) | 26 | 135 | 135
Taxes payable |  | 101 | 129
Derivative liabilities | 26 | 49 | 27
Severance and other costs payable |  | 35 | 63
Provisions | 23 | 33 | 66
CRTC tangible benefits obligation | 26 | 28 | 38
CRTC deferral account obligation | 26 | 13 | 16
Other current liabilities |  | 367 | 343
Total trade payables and other liabilities |  | 3,954 | 3,941


Question: What is the change in the amount of provisions in 2019?
Answer: -33
Calculation: 33-66
Figure 29. 2016/2018 LTIP Award Grants
(1) All of the Market-based PRSUs and one-third of the stock options and service-based RSUs granted to Mr. Anstice under the 2016/2018 LTIP that were scheduled to vest in February 2019 were canceled upon his termination of employment with the Company as of December 5, 2018.
(2) The number of Market-based PRSUs awarded is reflected at target. The final number of shares that may have been earned is 0% to 150% of target.
In February 2019, the committee determined the payouts for the calendar year 2016/2018 LTIP Awards of Market-based PRSUs. The number of shares represented by the Marketbased PRSUs earned over the performance period was based on our stock price performance compared to the market price performance of the SOX index.
Based on the above formula and Market-based PRSU Vesting Summary set forth in Figures 26 and 27, the Company’s stock price performance over the three-year performance period was equal to 89.93% and performance of the SOX index (based on market price) over the same three-year performance period was equal to 84.47%. Lam’s stock price outperformed the SOX index by 5.46%, which resulted in a performance payout of 110.93% to target number of Marketbased PRSUs granted to each NEO. Based on such results, the committee made the following payouts to each NEO for the 2016/2018 LTIP Award of Market-based PRSUs.
Table:
Named Executive Officer (1)(2) (1)(2) (1)(2) | Target Award Opportunity ($) | Market-based PRSUs award (#) | Stock Options Award (#) | Service-based RSUs Award (#)
Timothy M.Archer | 4,000,000 | 28,935 | 34,722 | 17,361
Douglas R.Bettinger | 2,750,000 | 19,892 | 23,871 | 11,935
Richard A.Gottscho | 3,250,000 | 23,509 | 28,209 | 14,105
Patrick J. Lord | 1,100,000 | 7,957 | — | 7,957
Vahid Vahedi | 1,100,000 | 7,957 | — | 7,957
Seshasayee(Sesha) Varadarajan | 1,100,000 | 7,957 | — | 7,957


Question: What was the number of shares represented by the Marketbased PRSUs earned over the performance period based on?
Answer: our stock price performance compared to the market price performance of the SOX index
Item 2. Properties
Our corporate headquarters are located in Culver City, California, where we occupy facilities totaling approximately 8,000 square feet on a monthto-month basis pursuant to a Shared Services Agreement with NantWorks. We use these facilities for administration, sales and marketing, research and development, engineering, client support, and professional services. In addition, we have 5 U.S. locations across four states and one international location. Our key facilities include the following:
United States
Boston, Massachusetts
Panama City, Florida
Philadelphia, Pennsylvania
Phoenix, Arizona
International
◦ Belfast, Northern Ireland
Note that on February 3, 2020, the Company completed the sale of its Connected Care business which includes the Panama City, Florida property.
We believe that our facilities are adequate to meet our needs in the near term, and that, if needed, suitable additional space will be available to accommodate any expansion of our operations.
The following table outlines our facilities location, square footage, and use:
Table:
City | State | Country | Sq ft | Type | Business Nature/Use
Boston | MA | USA | 31,752 | Lease | Administrative, sales, client support, R&D, engineering, professional services
Panama City | FL | USA | 51,288 | Lease | Administrative, sales, client support, R&D, engineering, professional services
Belfast | NI | UK | 15,500 | Lease | R&D, engineering, administrative
Phoenix | AZ | USA | 4,865 | Lease | Data Centre
Philadelphia | PA | USA | 14,183 | Lease | Administrative, sales, client support, R&D, engineering, professional services
 |  |  | 117,588 |  | 


Question: What are the respective square feet of the facilities located in Boston and Phoenix?
Answer: 31,752, 4,865
In the first quarter of 2019, the Company determined that certain revenue in the IT Services and Hardware segment associated with nonrecurring projects is better aligned with Infrastructure Solutions, rather than Consulting, where it was previously reported.  As a result, the Company reclassed revenue of $26.6 million and $12.3 million from Consulting to Infrastructure Solutions for the twelve months ended December 31, 2018 and 2017, respectively.  This reclassification of revenue had no impact on the Consolidated Statements of Operations
The following table presents revenues disaggregated by contract type
Table:
Year ended December 31, |  |  | 
(dollars in millions) | 2019 | 2018 | 2017
Entertainment and Communications |  |  | 
Products and services transferred at a point in time | $31.7 | $25.3 | $20.6
Products and services transferred over time | 942.4 | 805.8 | 664.3
Intersegment revenue | 21.6 | 22.3 | 21.2
Total Entertainment and Communications | 995.7 | 853.4 | 706.1
IT Services and Hardware |  |  | 
Products and services transferred at a point in time | 138.7 | 142.9 | 80.8
Products and services transferred over time | 423.9 | 404.2 | 300.0
Intersegment revenue | 4.8 | 3.8 | 4.3
Total IT Services and Hardware | 567.4 | 550.9 | 385.1
Total Revenue |  |  | 
Total products and services transferred at a point in time | 170.4 | 168.2 | 101.4
Total products and services transferred over time | 1,366.3 | 1210.0 | 964.3
Total revenue | $1,536.7 | $1,378.2 | $1,065.7


Question: What proportion of the 2019 total revenue is earned from total IT services and hardware?
Answer: 36.92
Calculation: 567.4/1,536.7
6. Income Taxes
Income tax expense (benefit) for fiscal 2019, 2018 and 2017 were as follows (in thousands):
Table:
 | 2019 | 2018 | 2017
Current: |  |  | 
Federal  | $15,160 | $63,814 | $78
State  | — | 234 | 33
Foreign  | 11,943 | 10,134 | 10,016
 | 27,103 | 74,182 | 10,127
Deferred: |  |  | 
Federal  | (3,498) | (2,958) | 77
State  | 827 | (447) | 38
Foreign  | (7,093) | 23,793 | (481)
 | (9,764) | 20,388 | (366)
 | $17,339 | $94,570 | $9,761


Question: What was the change in the total current income tax expense between 2017 and 2018?
Answer: 64055
Calculation: 74,182-10,127
Operating Segments
The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker (“CODM”), which is the Company’s chief executive officer, in deciding how to allocate resources and assess performance. The Company’s CODM evaluates the Company’s financial information for the purpose of allocating resources and assessing the performance of these resources on a consolidated basis. The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker (“CODM”), which is the Company’s chief executive officer, in deciding how to allocate resources and assess performance. The Company’s CODM evaluates the Company’s financial information for the purpose of allocating resources and assessing the performance of these resources on a consolidated basis.
Revenue by geographic country, based on ship-to destinations, which in certain instances may be the location of a contract manufacturer rather than the Company’s end customer, was as follows (in thousands):
Table:
 |  | Year Ended December 31, | 
 | 2019 | 2018 | 2017
United States | $70,702 | $56,839 | $60,723
China | 159,637 | 98,906 | 148,431
Germany | 57,657 | 58,711 | 57,051
Thailand | 82,413 | 68,217 | 48,016
Other | 94,254 | 57,218 | 70,945
Total revenue | $464,663 | 339,891 | 385,166


Question: Who evaluates the Company's financial information for the purpose of resource allocation and performance assessment?
Answer: The Company’s CODM, chief operating decision maker (“CODM”)
The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the award vesting term of four years. Forfeitures are accounted for as they occur.
Total stock-based compensation cost capitalized in inventory was less than $0.8 million in the years ended December 31, 2019, 2018 and 2017.
As of December 31, 2019, $7.8 million of unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.1 years and $41.3 million of unrecognized compensation cost related to unvested RSUs is expected to be recognized over a weighted-average period of 2.2 years. If there are any modifications or cancellations of the underlying unvested awards, the Company may be required to accelerate, increase or cancel all or a portion of the remaining unearned stock-based compensation expense.
The  following  table  sets  forth  the  stock-based  compensation  expense  resulting  from  stock  options,  RSUs,  and  the  ESPP  included  in  the  Company’s consolidated statements of operations:
Table:
 |  | Year Ended December 31, | 
 | 2019 | 2018 | 2017
 |  | (In thousands) | 
Cost of revenue | $2,843 | $2,435 | $1,406
Research and development | 6,532 | 4,283 | 2,968
Sales and marketing | 9,069 | 8,267 | 5,481
General and administrative | 10,693 | 11,476 | 9,114
Total | $29,137 | $26,461 | $18,969


Question: What was the change in sales and marketing expenses from 2017 to 2018?
Answer: 2786
Calculation: 8,267 -  5,481
The components of our income tax provision for the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands):
As a result of a loss in a foreign location, we have a net operating loss carry-forward (“NOL”) of approximately $0.3 million
available to offset future income. All $0.3 million of the NOL expires in 2025. We have established a valuation allowance for this
NOL because the ability to utilize it is not more likely than not.
We have tax credit carry-forwards of approximately $5.1 million available to offset future state tax. These tax credit carry-forwards
expire in 2020 to 2029. These credits represent a deferred tax asset of $4.0 million after consideration of the federal benefit of state tax
deductions. A valuation allowance of $1.8 million has been established for these credits because the ability to use them is not more
likely than not.
At December 31, 2019 we had approximately $58.2 million of undistributed earnings and profits. The undistributed earnings and
profits are considered previously taxed income and would not be subject to U.S. income taxes upon repatriation of those earnings, in
the form of dividends. The undistributed earnings and profits are considered to be permanently reinvested, accordingly no provision
for local withholdings taxes have been provided, however, upon repatriation of those earnings, in the form of dividends, we could be
subject to additional local withholding taxes.
Table:
 |  | Year Ended December 31,    | 
 | 2019 | 2018 | 2017
Current:                          |  |  | 
Federal    | $ 18,682 | $ 22,606 | $ 53,998
State      | 5,711 | 6,182 | 6,595
Foreign      | 7,323 | 7,018 | 6,185
 | 31,716 | 35,806 | 66,778
Deferred:                          |  |  | 
Federal      | (863 )     | (3,127 )     | 1,590
State      | (326 )     | (674 )     | 35
Foreign      | (212 )     | (464 )     | (51 ) 
 | (1,401 )     | (4,265 )     | 1,574
Total   | $ 30,315 | $ 31,541 | $ 68,352


Question: What is the federal tax in 2019?
Answer: 18,682
Proofpoint, Inc. Notes to Consolidated Financial Statements (Continued) (dollars and share amounts in thousands, except per share amounts)
Per the terms of the share purchase agreement, unvested stock options and unvested restricted stock units held by Meta Networks employees were canceled and exchanged for the Company’s unvested stock options and unvested restricted stock units, respectively. The fair value of $184 of these unvested awards was attributed to pre-combination services and was included in consideration transferred. The fair value of $12,918 was allocated to post-combination services. The unvested awards are subject to the recipient’s continued service with the Company, and $12,918 will be recognized ratably as stock-based compensation expense over the required remaining service period.
Also, as part of the share purchase agreement, the unvested restricted shares of certain employees of Meta Networks were exchanged into the right to receive $7,827 of deferred cash consideration and 72 shares of the Company’s common stock that were deferred with the fair value of $8,599. The deferred cash consideration was presented as restricted cash on the Company’s consolidated balance sheet as of December 31, 2019. The deferred cash consideration of $7,596 and the deferred stock $8,338 (see Note 11 “Equity Award Plans”) were allocated to post-combination expense and were not included in the purchase price. The deferred cash consideration and deferred shares are subject to forfeiture if employment terminates prior to the lapse of the restrictions, and their fair value is expensed as compensation and stock-based compensation expense over the three-year vesting period.
The Cost to Recreate Method was used to value the acquired developed technology asset. Management applied judgment in estimating the fair value of this intangible asset, which involved the use of significant assumptions such as the cost and time to build the acquired technology, developer’s profit and rate of return.
The following table summarizes the fair values of tangible assets acquired, liabilities assumed, intangible assets and goodwill:
Table:
 | Fair value | Estimated Useful Life
 |  | (in years)
Current assets | $356 | N/A
Fixed assets | 68 | N/A
Core/developed technology | 21,000 | 3
Deferred tax liability, net | (1,854) | N/A
Other liabilities | (671) | N/A
Goodwill | 85,869 | Indefinite
 | $104,768 | 


Question: What is the total estimated fair value of all assets?
Answer: 21424
Calculation: $356 + 68 + 21,000
(9) Property, Plant and Equipment
Net property, plant and equipment is composed of the following:
(1) Fiber, conduit and other outside plant consists of fiber and metallic cable, conduit, poles and other supporting structures.
2) Central office and other network electronics consists of circuit and packet switches, routers, transmission electronics and electronics providing service to customers.
(3) Support assets consist of buildings, cable landing stations, data centers, computers and other administrative and support equipment.
(4) Construction in progress includes inventory held for construction and property of the aforementioned categories that has not been placed in service as it is still under construction.
We recorded depreciation expense of $3.1 billion, $3.3 billion and $2.7 billion for the years ended December 31, 2019, 2018 and 2017, respectively.
Table:
 | Depreciable Lives | As of December 31 | 
 |  | 2019 | 2018
 |  | (Dollars in millions) | 
Land | N/A | $867 | 871
Fiber, conduit and other outside plant(1) | 15-45 years | 24,666 | 23,936
Central office and other network electronics(2) | 3-10 years | 19,608 | 18,736
Support assets(3) | 3-30 years | 7,984 | 8,020
Construction in progress(4) | N/A | 2,300 | 1,704
Gross property, plant and equipment |  | 55,425 | 53,267
Accumulated depreciation |  | (29,346) | (26,859)
Net property, plant and equipment |  | $26,079 | 26,408


Question: What is the average net property, plant and equipment?
Answer: 26243.5
Calculation: (26,079+26,408)/2
8 Directors’ emoluments
Directors represent the key management personnel of the Group under the terms of IAS 24 (Related Party Disclosures). Total remuneration is shown below.
Further details of salaries and short-term benefits, post-retirement benefits, share plans and long-term share incentive plans are shown in the Annual Report on Remuneration 2019 on pages 102 to 132. The share-based payments charge comprises a charge in relation to the Performance Share Plan and the Employee Share Ownership Plan (as described in Note 23).
Table:
 | 2019 | 2018
 | £m | £m
Salaries and short-term benefits | 4.1 | 3.7
Post-retirement benefits | 0.5 | 0.4
Share-based payments | 1.7 | 1.3
Total Directors' remuneration | 6.3 | 5.4


Question: What do the share-based payments charge comprise?
Answer: a charge in relation to the Performance Share Plan and the Employee Share Ownership Plan (as described in Note 23).