hellotayssir/FinQA_TAT-QA_financial_finetuning_dataset huggingface dataset:
Note 6. Property and Equipment, Net
Furniture and fixtures, computer software and equipment, leasehold improvements and real property are recorded at cost and presented net of depreciation. We record land at historical cost. During the application development phase, we record capitalized development costs in our construction in progress account and then reclass the asset to internal-use software when the project is ready for its intended use, which is usually when the code goes into production. Furniture, fixtures and office equipment and computer software and hardware are depreciated on a straight-line basis over lives ranging from three to five years. Internal-use software is amortized on a straight-line basis over a three-year period. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease terms or the asset lives. Real property is amortized on a straightline basis over lives ranging from 15 to 39 years.
The components of property and equipment, net are as follows (in thousands):
Depreciation expense related to property and equipment for the years ended December 31, 2019, 2018 and 2017 was $5.9 million, $5.7 million and $5.4 million, respectively. Amortization expense related to internal-use software of $1.9 million, $0.8 million and $0.4 million was included in those expenses for the years ended December 31, 2019, 2018 and 2017, respectively. We had no disposals and write-offs of property and equipment that impacted the consolidated statements of operations during the year ended December 31, 2019. Within the Alarm.com segment, we disposed of and wrote off $1.4 million and $0.8 million of capitalized costs to research and development expenses within the consolidated statements of operations primarily related to the design of internal-use software that no longer met the requirements for capitalization during the years ended December 31, 2018 and 2017, respectively. In December 2019, we purchased land and a commercial building located in Liberty Lake, Washington for $5.1 million. Once renovations are complete, this building will be used by OpenEye for sales and training, research and development, warehousing and administrative purposes.
Table:
 | December 31, | 
 | 2019 | 2018
Furniture, fixtures and office equipment | $5,604 | $4,102
Computer software and hardware | 17,767 | 16,228
Internal-use software | 8,949 | 5,072
Construction in progress | 4,232 | 3,790
Leasehold improvements | 23,223 | 18,338
Real property | 4,917 | 707
Land | 1,398 | 508
Total property and equipment | 66,090 | 48,745
Accumulated depreciation | (27,542) | (20,988)


Question: What was the percentage change in the total property and equipment between 2018 and 2019?
Answer: 35.58
Calculation: (66,090-48,745)/48,745
(1) Of the total deferred costs, $1,896 million was current and $2,472 million was noncurrent at December 31, 2019 and $2,300 million was current and $2,676 million was noncurrent at December 31, 2018.
The amount of total deferred costs amortized during the year ended December 31, 2019 was $3,836 million and there were no material impairment losses incurred. Refer to note A, “Significant Accounting Policies,” for additional information on deferred costs to fulfill a contract and capitalized costs of obtaining a contract.
Table:
($ in millions) |  | 
At December 31: | 2019 | 2018
Capitalized costs to obtain a contract | $  609 | $  717
Deferred costs to fulfill a contract |  | 
Deferred setup costs | 1,939 | 2,085
Other deferred fulfillment costs | 1,820 | 2,173
Total deferred costs (1) | $4,368 | $4,975


Question: What is the current and noncurrent total deferred costs for 2019?
Answer: $1,896 million was current and $2,472 million was noncurrent at December 31, 2019
Key Balance Sheet Information
Total assets increased $1,234.7 million as at December 31, 2019 compared to December 31, 2018, principally due to a $485.5 million increase in cash, cash equivalents and marketable securities mainly as a result of the public offering in September 2019, which resulted in net proceeds of $688.0 million. Business acquisitions during the year, largely due to the acquisition of 6RS, further impacted total assets through an increase in goodwill of $273.8 million, a $141.2 million increase in intangible assets and a resulting decrease in cash due to the consideration paid. The remainder of the increase is due to: the adoption of the new lease accounting standard, further discussed in the "Critical Accounting Policies and Estimates" section below, which resulted in the addition of right-of-use assets totaling $134.8 million as at December 31, 2019; a $58.3 million increase in merchant cash advances and loans receivable; a $49.8 million increase in property and equipment, largely related to leaseholds for our offices; a $49.2 million increase in trade and other receivables largely due to an increase in indirect taxes receivable, unbilled revenue related to subscription fees for Plus merchants, transaction fees and shipping charges; and a $19.4 million increase in deferred tax assets. Total liabilities increased by $309.7 million, principally as a result of the adoption of the new leasing standard, which resulted in $126.8 million of additional lease liabilities related to obtaining right-of-use assets. Accounts payable and accrued liabilities increased by $84.2 million, which was due to an increase in indirect taxes payable, payroll liabilities, and payment processing and interchange fees, partly offset by a decrease in foreign exchange forward contract liabilities. The increase was also due to income taxes payable of $69.4 million driven largely by the one-time capital gain recognized in the period. Deferred tax liabilities increased by $7.6 million, due to the acquisition of 6RS. The growth in sales of our subscription solutions offering, along with the acquisition of 6RS, resulted in an increase of deferred revenue of $21.6 million.
Table:
 | December 31, 2019 | December 31, 2018
 | (in thousands) | 
Cash, cash equivalents and marketable securities | $2,455,194 | $1,969,670
Total assets | 3,489,479 | 2,254,785
Total liabilities | 473,745 | 164,017
Total non-current liabilities | 157,363 | 25,329


Question: How much was the total non-current liabilities as at December 2019?
Answer: 157,363
18. Geographic Information
Revenue by geography is based on the customer's billing address, and was as follows:
No individual international country represented more than 10% of total revenue in any period presented.
Table:
 | Year Ended December 31, |  | 
 | 2019 | 2018 | 2017
U.S. | $1,979.6 | $1,723.9 | 1,504.5
International | 1,008.5 | 936.2 | 727.4
 | $2,988.1 | $2,660.1 | $2,231.9


Question: What is the average U.S. revenue for 2018 and 2019?
Answer: 1851.75
Calculation: (1,979.6+1,723.9)/2
We recorded a liability for unrecognized tax positions. The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the years ended March 31:
As of March 31, 2019, we had a liability of $0.6 million related to uncertain tax positions, the recognition of which would affect our effective income tax rate.
Although the timing and outcome of tax settlements are uncertain, it is reasonably possible that during the next 12 months an immaterial reduction in unrecognized tax benefits may occur as a result of the expiration of various statutes of limitations. We are routinely audited and the outcome of tax examinations could also result in a reduction in unrecognized tax benefits. Other changes could occur in the amount of gross unrecognized tax benefits during the next 12 months which cannot be estimated at this time.
We recognize interest accrued on any unrecognized tax benefits as a component of income tax expense. Penalties are recognized as a component of general and administrative expenses. We recognized interest and penalty expense of less than $0.1 million for the years ended March 31, 2019, 2018 and 2017. As of March 31, 2019 and 2018, we had approximately $0.5 million and $0.8 million of interest and penalties accrued.
In the U.S. we file consolidated federal and state income tax returns where statutes of limitations generally range from three to five years. Although we have resolved examinations with the IRS through tax year ended March 31, 2010, U.S. federal tax years are open from 2006 forward due to attribute carryforwards.
The statute of limitations is open from fiscal year 2012 forward in certain state jurisdictions. We also file income tax returns in international jurisdictions where statutes of limitations generally range from three to seven years. Years beginning after 2008 are open for examination by certain foreign taxing authorities.
Table:
(In thousands) | 2019 | 2018 | 2017
Balance at April 1 | $687 | $988 | $1,617
Reductions: |  |  | 
Relating to positions taken during prior year | — | (300) | (604)
Relating to lapse in statute | (107) | (1) | (25)
Balance at March 31 | $580 | $687 | $988


Question: What was the interest and penalties accrued in 2019?
Answer: approximately $0.5 million
Free cash flow
We define free cash flow as net cash provided by (used in) operating activities less purchase of property and equipment. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can possibly be used for investing in our business and strengthening the balance sheet, but it is not intended to represent the residual cash flow available for discretionary expenditures. Free cash flow is not prepared in accordance with U.S. GAAP, and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with U.S. GAAP.
The following table presents a reconciliation of net cash provided by (used in) operating activities to free cash flow:
(1) Our adoption of ASU 2016-09 on January 1, 2017 resulted in excess tax benefits for share-based payments recorded as a reduction of income tax expense and reflected within operating cash flows, rather than recorded within equity and reflected within financing cash flows. We elected to adopt this new standard retrospectively, which impacted the presentation for all periods prior to the adoption date.
Table:
 |  |  | Year Ended December 31, |  | 
 | 2019 | 2018 | 2017 | 2016 | 2015
 |  |  | (in thousands) |  | 
Net cash provided by (used in) operating activities (1) | $(156,832) | $113,207 | $64,241 | $138,720 | $141,257
Purchase of property and equipment | (36,531) | (52,880) | (89,160) | (78,640) | (30,566)
Free cash flow | $(193,363) | $60,327 | $(24,919) | $60,080 | $110,691
Net cash provided by (used in) investing activities | $25,761 | $17,496 | $(28,718) | $(392,666) | $(170,027)
Net cash provided by (used in) financing activities (1) | $(8,406) | $1,287 | $4,635 | $19,794 | $368,953


Question: How does the company define free cash flows?
Answer: Net cash provided by (used in) operating activities less purchase of property and equipment
Share Repurchase
On December 18, 2019, the Board of Directors authorized to remove the expiration date to the Company’s common stock share repurchase program and increase the authorized amount by $25.1 million increasing the authorization to repurchase shares up to a total of $50.0 million. As of December 31, 2019, a total of $50.0 million remained available for future share repurchases. We repurchased 1.7 million shares for $95.1 million and 0.4 million shares for $30.0 million in fiscal 2018 and 2017, respectively. There were no shares repurchased in fiscal 2019. CASH FLOWS
A summary of our cash provided by and used in operating, investing, and financing activities is as follows (in thousands):
Table:
 | Years Ended December 31, | 
 | 2019 | 2018
Net cash provided by (used in) operating activities from continuing operations | $47,899 | $151,427
Net cash provided by (used in) operating activities from discontinued operations | 493 | (156)
Net cash provided by (used in) operating activities | 48,392 | 151,271
Net cash provided by (used in) investing activities from continuing operations | (393,847) | (113,592)
Net cash provided by (used in) financing activities from continuing operations | 338,840 | (97,134)
EFFECT OF CURRENCY TRANSLATION ON CASH | (1,496) | (1,030)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (8,111) | (60,485)
CASH AND CASH EQUIVALENTS, beginning of period | 354,552 | 415,037
CASH AND CASH EQUIVALENTS, end of period | 346,441 | 354,552
Less cash and cash equivalents from discontinued operations | — | 5,251
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period | $346,441 | $349,301


Question: What was the Net cash provided by (used in) operating activities from continuing operations in 2019?
Answer: $47,899
Fiscal 2019 Restructuring Plan
During Fiscal 2019, we began to implement restructuring activities to streamline our operations (Fiscal 2019 Restructuring Plan), including in connection with our recent acquisitions of Catalyst and Liaison, to take further steps to improve our operational efficiency. The Fiscal 2019 Restructuring Plan charges relate to workforce reductions and facility consolidations. These charges require management to make certain judgments and estimates regarding the amount and timing of restructuring charges or recoveries. Our estimated liability could change subsequent to its recognition, requiring adjustments to the expense and the liability recorded. On a quarterly basis, we conduct an evaluation of the related liabilities and expenses and revise our assumptions and estimates as appropriate.
As of June 30, 2019, we expect total costs to be incurred in conjunction with the Fiscal 2019 Restructuring Plan to be approximately $30.0 million, of which $28.3 million has already been recorded within "Special charges (recoveries)" to date. We do not expect to incur any further significant charges relating to this plan.
A reconciliation of the beginning and ending liability for the year ended June 30, 2019 is shown below.
Table:
Fiscal 2019 Restructuring Plan | Workplace reduction | Facility costs | Total
Balance payable as at June 30, 2018 | $— | $— | $—
Accruals and adjustments | 12,460 | 15,858 | 28,318
Cash payments | (10,420) | (4,739) | (15,159)
Non-cash adjustments | — | (3,393) | (3,393)
Foreign exchange | (221) | (2,438) | (2,659)
Balance payable as at June 30, 2019 | $1,819 | $5,288 | $7,107


Question: What are the recent acquisitions of Fiscal 2019?
Answer: Catalyst, Liaison
Other income and expenses, net consisted of the following:
The Company receives significant public funding from governmental agencies in several jurisdictions. Public funding for research and development is recognized ratably as the related costs are incurred once the agreement with the respective governmental agency has been signed and all applicable conditions have been met.
R&D funding received in the year ended December 31, 2017 from the Nano2017 program with the French government is subject to a financial return in the year 2024 and depends on the future cumulative sales of a certain product group from 2019 to 2024. As such, an accrual amounting to $47 million was recorded as of December 31, 2019 compared to $42 million as of December 31, 2018.
Phase-out costs are costs incurred during the closing stage of a Company’s manufacturing facility. They are treated in the same manner as start-up costs. Start-up costs represent costs incurred in the start-up and testing of the Company’s new manufacturing facilities, before reaching the earlier of a minimum level of production or six months after the fabrication line’s quality certification.
Exchange gains and losses, net represent the portion of exchange rate changes on transactions denominated in currencies other than an entity’s functional currency and the changes in fair value of trading derivative instruments which are not designated as hedge and which have a cash flow effect related to operating transactions, as described in Note 27.
Patent costs include legal and attorney fees and payment for claims, patent pre-litigation consultancy and legal fees. They are reported net of settlements, if any, which primarily include reimbursements of prior patent litigation costs.
In 2019, gain on sale of businesses and non-current assets was related to the sale of one of our non-strategic assets. In 2018, it was related to the sale of one of the Company’s non-strategic investments while in 2017, it
was related to the sale of assets.
Table:
 | Year ended December 31, 2019 | Year ended December 31, 2018 | Year ended December 31, 2017
Research and development funding | 132 | 52 | 65
Phase-out and start-up costs | (38) | (1) | (8)
Exchange gain (loss), net | — | 4 | 4
Patent costs | (1) | (8) | (9)
Gain on sale of businesses and non-current assets | 7 | 8 | 4
Other, net | 3 | (2) | (1)
Total | 103 | 53 | 55


Question: What is included in the patent costs?
Answer: Patent costs include legal and attorney fees and payment for claims, patent pre-litigation consultancy and legal fees.
Non-current provisions
Non-current provisions consisted of the following:
The non-current provision for employee benefits includes long service leave as described above.
The dilapidation provision relates to certain lease arrangements for office space entered into by the Group. These lease arrangements require the Group to restore each premises to its original condition upon lease termination. Accordingly, the Group records a provision for the present value of the estimated future costs to retire long-lived assets at the expiration of these leases.
Table:
 | As of June 30, | 
 | 2019 | 2018
 | (U.S. $ in thousands) | 
Employee benefits | $3,323 | $2,094
Dilapidation provision | 2,759 | 2,269
 | $6,082 | $4,363


Question: In fiscal year 2019, what is the percentage constitution of employee benefits among the total non-current provisions?
Answer: 54.64
Calculation: 3,323/6,082
Industry Overview
According to WSTS (an industry research firm), worldwide semiconductor industry sales were $412.1 billion in 2019, a decrease of approximately 12.1% from $468.8 billion in 2018. We participate in unit and revenue surveys and use data summarized by WSTS to evaluate overall semiconductor market trends and to track our progress against the market in the areas we provide semiconductor components. The following table sets forth total worldwide semiconductor industry revenue since 2015:
(1) Based on shipment information published by WSTS. We believe the data provided by WSTS is reliable, but we have not independently verified it. WSTS periodically revises its information. We assume no obligation to update such information.
As indicated above, worldwide semiconductor sales increased from $335.2 billion in 2015 to $412.1 billion in 2019. The decrease of 12.1% from 2018 to 2019 was the result of decreased demand for semiconductor products. Our revenue decreased by $360.4 million, or 6.1%, from 2018 to 2019.
Table:
Year Ended December 31, | Worldwide Semiconductor Industry Sales (1) | Percentage Change
 | (in billions) | 
2019 | $412.1 | (12.1)%
2018 | $468.8 | 13.7%
2017 | $412.2 | 21.6%
2016 | $338.9 | 1.1%
2015 | $335.2 | (0.2)%


Question: How much was the worldwide semiconductor industry sales in 2018?
Answer: $468.8 billion
It rewards executives subject to performance against three equally weighted measures over a three year performance period:
Relative TSR is used as a measure in our LTI plan to align executive outcomes and long‐term shareholder value creation. The peer group is the ASX30 excluding metals and mining companies. Peer group ranking at the 75th percentile or higher 100% vesting is achieved and ranking at the median 50% vesting is achieved. Between the 75th  and median, pro-rata vesting is achieved from 50% to 100%. Peer group ranking below the median results in zero vesting.
Sales per square metre measures sales productivity improvements across the Food and Drinks businesses. Efficient use of our physical network for in‐store and online sales is core to our success.
ROFE is an important measures to drive behaviours consistent with the delivery of long‐term shareholder value. ROFE improvements can be delivered through earnings growth as well as the disciplined allocation of capital and management of assets, which is important for a business that is building capabilities for the future. Lease‐adjusted ROFE measures the balance between our earnings growth and the disciplined allocation and application of assets used to generate those earnings. We adjust for leases to recognise that a very significant portion of our sites are leased. This approach is also similar to the accounting standard definition of ROFE that will change to incorporate a lease-adjusted definition from F20.
The Sales/SQM and ROFE targets are published following the end of the performance period given the commercial sensitivity of this information.
Table:
 | rTSR | SALES/SQM | ROFE
Entry | 16.66% | 6.66% | 6.66%
Target | n/a | 20% | 20%
Stretch | 33.33% | 33.33% | 33.33%


Question: What is the total ROFE across all 3 levels?
Answer: 59.99
Calculation: 6.66% + 20% + 33.33%
Note 3 − Property and Equipment
Our major classes of property and equipment were as follows:
Depreciation expense for the years ended December 31, 2019 and 2018 was $7, and $18, respectively.
Table:
 | December 31 | December 31
 | 2019 | 2018
Office furniture | $79 | $79
Computer equipment | 81 | 67
Total | 160 | 146
Less accumulated depreciation | (144) | (137)
Total property and equipment, net | $16 | $9


Question: What is the total amount spent on computer equipment in 2018 and 2019?
Answer: 148
Calculation: 81 + 67
Ernst & Young LLP
Ernst & Young LLP fees incurred by us for fiscal 2018 and 2019 were as follows:
Audit Fees: Audit fees for fiscal 2018 and 2019 were for professional services rendered in connection with audits of our consolidated financial statements, statutory audits of our subsidiary companies, quarterly reviews, and assistance with documents that we filed with the SEC (including our Forms 10-Q and 8-K) for periods covering fiscal 2018 and 2019.
Audit-Related Fees: Audit-related fees for 2018 and 2019 were for professional services rendered in connection with consultations with management on various accounting matters, including audit of financial
statements of a carve-out entity and sell-side due diligence with respect to our previously announced Spin-Off.
Tax Fees: Tax fees for 2018 and 2019 were for tax compliance and consulting services.
All Other Fees: Other fees in 2018 and 2019 were for access to technical accounting services.
Table:
Services | 2018 ($) | 2019 ($)
Audit Fees | 5,859,755 | 5,024,093
Audit-Related Fees | 137,420 | 3,178,737
Tax Fees | 1,440,168 | 2,346,879
All Other Fees | 11,200 | 10,955
Total | 7,448,544 | 10,560,664


Question: What are the tax fees used for?
Answer: For tax compliance and consulting services.