Note 8: Balance Sheet Information
Certain significant amounts included in the Company's Consolidated Balance Sheets consist of the following (in millions):
Assets classified as held-for-sale, consisting primarily of properties, are required to be recorded at the lower of carrying value or fair value less any costs to sell. The carrying value of these assets as of December 31, 2019 was $1.4 million, and is reported as other current assets on the Company’s Consolidated Balance Sheet.
Depreciation expense for property, plant and equipment, including amortization of finance leases, totaled $409.7 million, $359.3 million and $325.2 million for 2019, 2018 and 2017, respectively.
Included within sales related reserves are ship and credit reserves for distributors amounting to $178.7 million and $230.8 million as of December 31, 2019 and 2018, respectively.

                                     | As of             |
------------------------------------ | ----------------- | -----------------
                                     | December 31, 2019 | December 31, 2018
Inventories:                         |                   |
Raw materials                        | $138.4            | $137.3
Work in process                      | 772.9             | 760.7
Finished goods                       | 321.1             | 327.2
                                     | $1,232.4          | $1,225.2
Property, plant and equipment, net:  |                   |
Land                                 | $125.2            | $125.5
Buildings                            | 860.6             | 820.4
Machinery and equipment              | 4,275.2           | 3,980.2
Property, plant and equipment, gross | 5,261.0           | 4,926.1
Less: Accumulated depreciation       | (2,669.4)         | (2,376.5)
                                     | $2,591.6          | $2,549.6
Accrued expenses:                    |                   |
Accrued payroll and related benefits | $153.4            | $240.8
Sales related reserves               | 247.3             | 294.8
Income taxes payable                 | 22.5              | 38.2
Other                                | 115.6             | 85.3
                                     | $538.8            | $659.1


The following direct customers accounted for 10% or more of our net revenues in one or more of the following periods:
Nokia was our largest customer in fiscal 2019, 2018 and 2017. Nokia purchases products directly from us and through contract manufacturers and distributors. Based on information provided to us by its contract manufacturers and our distributors, purchases by Nokia represented approximately 45%, 36% and 41% of our net revenues in fiscal 2019, 2018 and 2017, respectively. To our knowledge, none of our other OEM customers accounted for more than 10% of our net revenues in any of these periods.

                                                          |       | Fiscal Year Ended |
--------------------------------------------------------- | ----- | ----------------- | -----
                                                          |       | March 31,         |
                                                          | 2019  | 2018              | 2017
Contract manufacturers and consignment warehouses:        |       |                   |
Flextronics Technology                                    | 21.8% | 14.0%             | 10.4%
Sanmina                                                   | 17.7  | 16.0              | 20.4
Distributors:                                             |       |                   |
Avnet Logistics                                           | 31.3  | 35.3              | 25.5
Nexcomm                                                   | 14.8  | 16.1              | 19.7


(1) No dividend is proposed by the Board of Directors related to the financial year 2019.
(2) Includes net sales to other segments.
The figures are derived from our consolidated financial
statements prepared in accordance with IFRS. Year-on-year
change is in parenthesis.
All Nokia Technologies IPR and Licensing net sales are allocated to Finland.

Financial highlights                       |        |        |
------------------------------------------ | ------ | ------ | -------
For the year ended December 31,            | 2019   | 2018   | 2017
Continuing operations                      | EURm   | EURm   | EURm
Net sales                                  | 23,315 | 22,563 | 23,147
Gross profit                               | 8,326  | 8,446  | 9,139
Gross margin                               | 35.7%  | 37.4%  | 39.5%
Operating profit/(loss)                    | 485    | (59)   | 16
Operating margin                           | 2.1%   | (0.3)% | 0.1%
Profit/(loss) for the year                 | 18     | (549)  | (1,437)
                                           | EUR    | EUR    | EUR
Earnings per share, diluted                | 0.00   | (0.10) | (0.26)
Dividend per share(1)                      | 0.00   | 0.10   | 0.19
                                           | 2019   | 2018   | 2017
As of December 31                          | EURm   | EURm   | EURm
Net cash and current financial investments | 1,730  | 3,053  | 4,517


Issuer purchases of equity securities
Common stock repurchased in the three months ended December 31, 2019:
(1) Shares withheld to cover the option exercise price and tax withholding obligations under the net settlement provisions of our stock compensation awards have been included in these amounts.
(2) See "Stock repurchase program" in Item 7 of this Annual Report for additional information.

(in thousands, except per share amounts) | Total Number of Shares Purchased (1) (2) | Average Price Paid per Share (1) (2) | Total Number of Shares Purchased as Part of Publicly Announced Share Repurchase Program (2) | Approximate Dollar Value of Shares That May Yet Be Purchased at Period End Under Publicly Announced Share Repurchased Programs (2)
---------------------------------------- | ---------------------------------------- | ------------------------------------ | ------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------
October 1, 2019 - October 31, 2019       | 24                                       | $71.89                               | 12                                                                                | $45,484
November 1, 2019 - November 30, 2019     | 108                                      | $75.63                               | -                                                                                | $45,484
December 1, 2019 - December 31, 2019     | 144                                      | $76.64                               | -                                                                                | $45,484
Total                                    | 276                                      | $75.83                               |                                                                                |


NOTE 19 – DERIVATIVE FINANCIAL INSTRUMENTS
Please refer to note 21 “Financial Instruments” for further information on fair value hierarchies.

USDm                                                                            | 2019  | 2018
------------------------------------------------------------------------------- | ----- | ----
Fair value of derivatives:                                                      |       |
Derivative financial instruments regarding freight and bunkers:                 |       |
Forward freight agreements                                                      | -0.3  | 0.5
Bunker swaps                                                                    | -     | -1.2
Derivative financial instruments regarding interest and currency exchange rate: |       |
Forward exchange contracts                                                      | -0.4  | -1.8
Interest rate swaps                                                             | -11.1 | 2.8
Fair value of derivatives as of 31 December                                     | -11.8 | 0.3


(1) Using the euro per US dollar exchange rate on December 31, 2019 of €1 = $1.1213.
(2) Since May 23, 2019 Mr. Manzi has not been a member of the Supervisory Board.
(3) Global indirect employees are all employees other than those directly manufacturing our products.
We do not have any service agreements with members of our Supervisory Board. We did not extend any loans or overdrafts to any of our Supervisory Board members. Furthermore, we have not guaranteed any debts or concluded any leases with any of our Supervisory Board members or their families.

                                                                      | 2019        | 2018      | 2017
--------------------------------------------------------------------- | ----------- | --------- | ---------
Directors' remuneration                                               |             |           |
Average remuneration of Supervisory Board Members(1)                  | $105,066(2) | $ 115,618 | $ 123,281
Company's performance                                                 |             |           |
Net revenues (amounts in millions)                                    | $ 9,556     | $ 9,664   | $ 8,347
Operating income (amounts in millions)                                | $ 1,203     | $ 1,400   | $ 1,005
Average remuneration of all global indirect employees (FTE basis) (3) |             |           |
Employees                                                             | $ 97,300    | $ 100,600 | $ 93,500


The following table provides information for fiscal year 2019 compensation for all of our current and former non-employee directors:
1) Non-employee directors receive an annual retainer fee of $50,000 plus an additional annual fee of $15,000 (Compensation Committee and Nominating and Governance Committee) or $20,000 (Audit Committee) for membership on each committee. The chair of each committee receives an additional annual fee of $15,000 (Nominating and Governance Committee) or $25,000 (Audit Committee and Compensation Committee). The Lead Independent Director/Independent Chairman receives an annual fee of $100,000 (reduced to $75,000 for 2020).
(2) Includes payments for fractional share(s) from stock awards granted to each non-employee director.
(3) Amounts shown in this column reflect the aggregate full grant date fair value calculated in accordance with Financial Accounting Standards Board (‘‘FASB’’) Accounting Standards Codification (‘‘ASC’’) Topic 718 for awards granted during FY19.
(4) Each non-employee director, other than Ms. Barsamian and Messrs. Feld, Fuller, Hill and Miller, was granted 12,320 RSUs on May 17, 2018, with a per-share fair value of $22.32 and an aggregate grant date fair value of $274,982.40. Each such director’s fees were paid in cash as reported in the ‘‘Fees Earned or Paid in Cash’’ column in the table above. No non-employee director had any outstanding stock awards as of March 29, 2019.
(5) Ms. Barsamian and Mr. Hill were appointed to our Board on January 7, 2019 and received a pro-rated portion of non-employee director fees from the date of such director’s appointment on January 7, 2019 through the end of FY19. Ms. Barsamian and Mr. Hill were each granted 2,717 RSUs on February 5, 2019, with a per-share fair value of $22.80 and an aggregate grant date fair value of $61,947.60. The balance of each such director’s fees was paid in cash as reported in the ‘‘Fees Earned or Paid in Cash’’ column in the table above.
(6) In lieu of cash, Ms. Barsamian elected to receive 100% of the pro-rated portion of her annual retainer fee of $50,000 in the form of our common stock. Accordingly, pursuant to the terms of the 2000 Director Equity Incentive Plan, Ms. Barsamian was granted 494 shares at a per share fair value of $22.80 and an aggregate grant date fair value of $11,263. The balance of Ms. Barsamian’s fee was paid in cash as reported in the ‘‘Fees Earned or Paid in Cash’’ column in the table above.
(7) Messrs. Feld and Fuller were appointed to our Board on September 16, 2018 and each received pro-rated portions of such director’s non-employee director fees from the date of his appointment on September 16, 2018 through the end of FY19. Messrs. Feld and Fuller were granted 6,764 RSUs on December 7, 2018, with a per-share fair value of $21.78 and an aggregate grant date fair value of $147,320. The balance of each such director’s fees was paid in cash as reported in the ‘‘Fees Earned or Paid in Cash’’ column in the table above.
(8) In lieu of cash, Mr. Feld elected to receive 100% of the pro-rated portion of his annual retainer fee of $50,000 in the form of our common stock. Accordingly, pursuant to the terms of the 2000 Director Equity Incentive Plan, Mr. Feld was granted 1,229 shares at a per share fair value of $21.78 and an aggregate grant date fair value of $26,767. The balance of Mr. Feld’s fee was paid in cash as reported in the ‘‘Fees Earned or Paid in Cash’’ column in the table above.
(9) In lieu of cash, Messrs. Hao and Humphrey each received 100% of his respective annual retainer fee of $50,000 in the form of our common stock. Accordingly, pursuant to the terms of the 2000 Director Equity Incentive Plan, each was granted 2,240 shares at a per share fair value of $22.32 and an aggregate grant date fair value of $49,997. The balance of each such director’s fee was paid in cash as reported in the ‘‘Fees Earned or Paid in Cash’’ column in the table above.
(10) Ms. Laybourne and Mr. Miller served on the Board through December 3, 2018, the date of the Company’s 2019 Annual Meeting of Stockholders.
(11) Mr. Miller’s non-employee director fees were prorated through December 3, 2018, the date of the Company’s 2019 Annual Meeting of Stockholders. Mr. Miller was granted 5,584 RSUs on May 17, 2018, with a per-share fair value of $22.32 and an aggregate grant date fair value of $124,635. The balance in director’s fees was paid in cash as reported in the ‘‘Fees Earned or Paid in Cash’’ column in the table above.

                           | Fiscal 2019 Director Compensation      |                        |
-------------------------- | -------------------------------------- | ---------------------- | ---------
Name                       | Fees earned or paid in cash ($) (1)(2) | Stock Awards ($)(3)(4) | Total ($)
Susan P. Barsamian(5)      | 3,383                                  | 73,210(6)              | 76,593
Frank E. Dangeard          | 85,018                                 | 274,982                | 360,000
Peter A. Feld(7)           | 16,071                                 | 174,108(8)             | 190,179
Dale L. Fuller(7)          | 34,821                                 | 147,321                | 182,142
Kenneth Y. Hao             | 21                                     | 324,979(9)             | 325,000
Richard S. Hill(5)         | 15,772                                 | 61,948                 | 77,720
David W. Humphrey          | 21                                     | 324,979(9)             | 325,000
Geraldine B. Laybourne(10) | 80,018                                 | 274,982                | 355,000
David L. Mahoney           | 105,024                                | 274,976                | 380,000
Robert S. Miller(10)(11)   | 120,639                                | 124,635                | 245,274
Anita M. Sands             | 70,018                                 | 274,982                | 345,000
Daniel H. Schulman         | 195,018                                | 274,982                | 470,000
V. Paul Unruh              | 95,018                                 | 274,982                | 370,000
Suzanne M. Vautrinot       | 70,018                                 | 274,982                | 345,000


Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Market information
Our common stock is currently available for trading in the over-the-counter market and is quoted on the OTCQB under the symbol “PTIX.” There has been very limited market for our common stock and trading volume has been negligible. There is no guarantee that an active trading market will develop in our common stock
Trades in our common stock may be subject to Rule 15g-9 of the Exchange Act, which imposes requirements on broker/dealers who sell securities subject to the rule
to persons other than established customers and accredited investors. For transactions covered by the rule, broker/dealers must make a special suitability determination for
purchasers of the securities and receive the purchaser’s written agreement to the transaction before the sale.
The SEC also has rules that regulate broker/dealer practices in connection with transactions in “penny stocks.” Penny stocks generally are equity securities with a
price of less than $5.00 (other than securities listed on certain national exchanges, provided that the current price and volume information with respect to transactions in that
security is provided by the applicable exchange or system). The penny stock rules require a broker/dealer, before effecting a transaction in a penny stock not otherwise exempt
from the rules, to deliver a standardized risk disclosure document prepared by the SEC that provides information about penny stocks and the nature and level of risks in the
penny stock market. The broker/dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker/dealer and its
salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations,
and the broker/dealer and salesperson compensation information, must be given to the customer orally or in writing before effecting the transaction, and must be given to the customer in writing before or with the customer’s confirmation. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for shares of our common stock. As a result of these rules, investors may find it difficult to sell their shares.
Our common stock was quoted on the OTC Pink under the symbol “ATRN” prior to July 27, 2016 and then under the symbol “PTIX” between July 27, 2016 and
October 16, 2016. Commencing on October 17, 2016, our common stock is quoted in the OTCQB under the symbol “PTIX”. The following table sets forth, for the periods
indicated and as reported on the OTC Markets, the high and low bid prices for our common stock. Such quotations reflect inter-dealer prices, without retail mark-up, markdown
or commission and may not necessarily represent actual transactions.
(1) The high and low bid prices for this quarter were reported by the OTCQB marketplace. There was negligible trading volume during this period.

                   | High  | Low
------------------ | ----- | -----
2018(1)            |       |
First Quarter (1)  | $2.20 | $1.76
Second Quarter (1) | $1.76 | $1.76
Third Quarter (1)  | $2.50 | $1.25
Fourth Quarter (1) | $2.00 | $1.99
2019(1)            |       |
First Quarter (1)  | $2.30 | $2.00
Second Quarter (1) | $2.00 | $1.50
Third Quarter (1)  | $1.50 | $1.40
Fourth Quarter (1) | $3.80 | $1.40


Disaggregation of Total Net Sales: We disaggregate our sales from contracts with customers by end customer, contract type, deliverable type and revenue recognition method for each of our segments, as we believe these factors affect the nature, amount, timing, and uncertainty of our revenue and cash flows.
Sales by Geographic Region (in millions):

                     |          | Years Ended September 30, |
-------------------- | -------- | ------------------------- | --------
                     | 2019     | 2018                      | 2017
United States        | $  956.6 | $  627.8                  | $  522.8
United Kingdom       | 218.2    | 240.7                     | 219.4
Australia            | 163.5    | 166.7                     | 175.6
Far East/Middle East | 74.0     | 86.4                      | 112.7
Other                | 84.2     | 81.3                      | 77.2
Total sales          | $1,496.5 | $1,202.9                  | $1,107.7


(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. For further details, please consult the "Accounting policies" section. (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.
REVENUE Fiscal 2019 fourth-quarter revenue increased by 7.0% (6.0% in constant currency). In local currency, revenue amounted to US$199.5 million compared to US$188.1 million for the same period of fiscal 2018. The increase resulted mainly from: • rate increases; • activation of bulk properties in Florida during the fourth quarter of fiscal 2019; • continued growth in Internet service customers; and • the FiberLight acquisition completed in the first quarter of fiscal 2019; partly offset by • a decrease in video service customers.
OPERATING EXPENSES Fiscal 2019 fourth-quarter operating expenses increased by 8.6% (7.6% in constant currency) mainly as a result of: • programming rate increases; • the FiberLight acquisition completed in the first quarter of fiscal 2019; • higher compensation expenses due to higher headcount to support growth; and • higher marketing initiatives to drive primary service units growth.
ADJUSTED EBITDA Fiscal 2019 fourth-quarter adjusted EBITDA increased by 5.1% (4.1% in constant currency). In local currency, adjusted EBITDA amounted to US$87.4 million compared to US$83.9 million for the same period of fiscal 2018. The increase was mainly due to organic growth combined with the impact of the FiberLight acquisition.
ACQUISITIONS OF PROPERTY, PLANT AND EQUIPMENT Fiscal 2019 fourth-quarter acquisitions of property, plant and equipment decreased by 9.5% (10.5% in constant currency) mainly due to: • lower purchases of customer premise equipment due to the timing of certain initiatives; and • lower capital expenditures due to the timing of certain initiatives; partly offset by • additional capital expenditures related to the expansion in Florida.

Three months ended August 31,                 | 2019(1) | 2018(2) | Change | Change in constant currency(3) | Foreign exchange impact(3)
--------------------------------------------- | ------- | ------- | ------ | ------------------------------ | --------------------------
(in thousands of dollars, except percentages) | $       | $       | %      | %                              | $
Revenue                                       | 263,738 | 246,443 | 7.0    | 6.0                            | 2,427
Operating expenses                            | 148,215 | 136,506 | 8.6    | 7.6                            | 1,370
Adjusted EBITDA                               | 115,523 | 109,937 | 5.1    | 4.1                            | 1,057
Adjusted EBITDA margin                        | 43.8%   | 44.6%   |        |                                |
Acquisitions of property, plant and equipment | 65,967  | 72,914  | (9.5)  | (10.5)                         | 704
Capital intensity                             | 25.0%   | 29.6%   |        |                                |


Allowance for Doubtful Accounts
The Company bases its allowance for doubtful accounts on its historical collection experience and a review in each period of the status of the then outstanding accounts receivable.
A reconciliation of the beginning and ending amount of allowance for doubtful accounts is as follows (in thousands):
The Company recognized bad debt expense of $0.5 million, $0.8 million, and $1.4 million for the years ended December 31, 2019, 2018, and 2017, respectively.

                             | 2019    | 2018    | 2017
---------------------------- | ------- | ------- | -------
Beginning balance, January 1 | $2,429  | $7,478  | $3,532
Additions and adjustments    | 1,074   | 1,691   | 7,680
Write-offs                   | (2,128) | (6,740) | (3,734)
Ending balance, December 31  | $1,375  | $2,429  | $7,478


The reconciliation of the United Kingdom statutory tax rate to the Company’s effective tax rate included in the accompanying consolidated statements of operations is as follows:
Although the Company’s parent entity is organized under Jersey law, our affairs are, and are intended to be, managed and controlled ongoing in the United Kingdom. Therefore, the Company is resident in the United Kingdom for tax purposes. The Company’s parent entity is domiciled in the United Kingdom and its earnings are subject to 19%, 19% and 20% statutory tax rate for the years ended March 31, 2019, 2018 and 2017, respectively.
The Company’s effective tax rate differs from the statutory rate each year primarily due to windfall tax benefits on equity award exercises, the valuation allowance maintained against the Company’s net deferred tax assets, the jurisdictional earnings mix, tax credits, withholding taxes, and other permanent differences primarily related to non-deductible expenses.

                                  |         | Year ended March 31,  |
--------------------------------- | ------- | --------------------- | -------
                                  | 2019    | 2018                  | 2017
Tax at statutory rate             | 19.0%   | 19.0%                 | 20.0%
U.S. state taxes, net of federal  | 31.1    | 14.1                  | (1.0)
Foreign rate differential         | 26.3    | 36.8                  | (39.3)
Meals and entertainment           | (11.4)  | (3.1)                 | (7.4)
Branch income / loss              | (0.6)   | 0.4                   | 0.9
Share-based compensation          | 172.3   | 105.3                 | (4.0)
Foreign exchange                  | —       | —                     | (24.8)
Non-deductible interest expense   | —       | —                     | (3.3)
Tax credits                       | 7.7     | 8.1                   | 15.6
Unremitted earnings               | (3.8)   | (1.2)                 | —
Change in valuation allowance     | (249.9) | (110.7)               | 124.7
Deferred tax true-ups             | (3.5)   | 8.4                   | (12.4)
Tax reserves                      | (4.9)   | (21.5)                | (117.7)
Provision to return               | (0.1)   | 0.4                   | (0.7)
Withholding taxes                 | (2.6)   | (3.5)                 | —
Other foreign taxes               | —       | —                     | (6.7)
Non-deductible expenses           | (5.2)   | (2.4)                 | (10.6)
Deferred tax rate change          | (6.3)   | (77.8)                | (1.3)
Acquisition related costs         | (7.6)   | —                     | —
Other                             | (0.5)   | (0.2)                 | —
Effective Tax Rate                | (40.0)% | (27.9)%               | (68.0)%


Note 9 - Software Development Costs
Capitalized software development costs as of December 31, 2019 and 2018 consisted of the following (in thousands):
The weighted average remaining amortization period for the Company’s software development costs is 1.61 years.
Amortization expense for capitalized software development costs was $1.025 million and $1.2 million for each of the years ended December 31, 2019 and 2018.

                                       | As of December 31, |
-------------------------------------- | ------------------ | -------
                                       | 2019               | 2018
Capitalized software development costs | $6,029             | $5,102
Accumulated amortization               | (4,485)            | (3,412)
Software development costs, net        | 1,544              | $1,690


The GBS profit margin increased 0.9 points to 27.7 percent and pre-tax income of $1,666 million increased 2.2 percent year to year. The pre-tax margin of 9.9 percent increased slightly year to year. The year-to-year improvements in margins and pre-tax income were driven by the continued mix shift to higher-value offerings, the yield from delivery productivity improvements and a currency benefit from leveraging the global delivery resource model. We continued to invest in our services offerings and skills necessary to assist our clients on their cloud journey.
* Recast to reflect segment changes.

($ in millions)                 |        |        |
------------------------------- | ------ | ------ | ---------------------------------
For the year ended December 31: | 2019   | 2018*  | Yr.-to-Yr. Percent/ Margin Change
Global Business Services        |        |        |
External gross profit           | $4,606 | $4,448 | 3.5%
External gross profit margin    | 27.7%  | 26.8%  | 0.9 pts.
Pre-tax income                  | $1,666 | $1,629 | 2.2%
Pre-tax margin                  | 9.9%   | 9.6%   | 0.2 pts.


Performance Share Units
The following table illustrates the number and WASP on date of award, and movements in, performance share units (“PSUs”) granted under the 2015 LTIP:
PSUs vest on one vesting date following a three year vesting period which will comprise three financial years. The awards are divided into three equal parts which will each be subject to a separate annual performance condition linked to the financial performance of the Group.

                                     | Year-ended 31 March 2019 |         | Year-ended 31 March 2018 |
------------------------------------ | ------------------------ | ------- | ------------------------ | -------
                                     | Number                   | WASP    | Number                   | WASP
Performance share units              | 000’s                    | £ pence | 000’s                    | £ pence
Outstanding at the start of the year | 7,546                    | 269.65  | 6,024                    | 219.41
Awarded                              | 1,721                    | 506.74  | 1,719                    | 440.50
Forfeited                            | (2,234)                  | 414.51  | (197)                    | 223.96
Released                             | (2,949)                  | 262.64  | –                        | –
Outstanding at the end of the year   | 4,084                    | 295.41  | 7,546                    | 269.65


Consolidated Revenues
Consolidated revenues increased $1.0 billion, or 0.8%, during 2019 compared to 2018, primarily due to an increase in revenues at our Consumer segment, partially offset by decreases in revenues at our Business segment and Corporate and other.
Revenues for our segments are discussed separately below under the heading “Segment Results of Operations.”
Corporate and other revenues decreased $124 million, or 1.2%, during 2019 compared to 2018, primarily due to a decrease of $232 million in revenues within Verizon Media.

                         |          |          | (dollars in millions) Increase/(Decrease) |
------------------------ | -------- | -------- | ----------------------------------------- | -----
Years Ended December 31, | 2019     | 2018     | 2019 vs. 2018                             |
Consumer                 | $ 91,056 | $ 89,762 | $ 1,294                                   | 1.4%
Business                 | 31,443   | 31,534   | (91)                                      | (0.3)
Corporate and other      | 9,812    | 9,936    | (124)                                     | (1.2)
Eliminations             | (443)    | (369)    | (74)                                      | 20.1
Consolidated Revenues    | $131,868 | $130,863 | $ 1,005                                   | 0.8


Discussion of Cash Flows
During 2019, the $4.8 million of net cash provided by operating activities consisted of our net income of $5.3 million, and included non-cash charges for depreciation and amortization of $2.5 million, and stock-based compensation of $1.5 million, offset by a tax benefit from a partial release of the valuation allowances of $3.3 million and a net cash outflow of $1.8 million from changes in working capital. The changes in working capital were principally driven by an increase in accounts receivable of $2.2 million, an increase in inventory of $0.7 million, an increase in contract assets of $0.4 million, and an increase in other assets of $0.2 million, all partially offset by decreases in accounts payable and accrued expenses of $0.6 million and contract liabilities of $1.2 million,
In 2018, the $3.3 million of net cash used in operating activities consisted of our net income of $11.0 million and included a gain recognized on the sale of our optoelectronic segment that was sold in July 2018 of $8.6 million in addition to non-cash charges for depreciation and amortization of $1.2 million and stock-based compensation of $0.6 million, offset by a net cash outflow of $7.6 million from changes in working capital. The changes in working capital were principally driven by an increase in inventory of $1.0 million, and increase in accounts receivable of $6.2 million, and increase in contract assets of $0.8 million, and an increase in accounts payable and accrued liabilities of $0.5 million, all partially offset by a $1.8 million decrease in other assets.
Cash used in investing activities in 2019 consisted primarily of the $19.0 million payment for our acquisition of GP, $0.5 million of fixed asset additions and $0.3 million of capitalized intellectual property costs.
Cash provided by investing activities in 2018 consisted primarily of the proceeds from the sale of our optoelectronic segment of $15.8 million, partially offset by the $5.0 million payment for our acquisition of MOI, $0.4 million of fixed asset additions and $0.4 million of capitalized intellectual property rights.
Cash used in financing activities for the year ended December 31, 2019 was $2.4 million, compared to $1.2 million in 2018. During 2019, we repaid $0.6 million on our term loans with SVB and used $2.2 million to repurchase our common stock under our stock repurchase program. These payments were partially offset by $0.4 million received from exercises of stock options and warrants. During 2018, we repaid $1.8 million on our outstanding term loan with SVB and used $0.5 million to repurchase our common stock under our stock repurchase program. These payments were partially offset by $1.1 million received from exercises of stock options and warrants.

                                                     | Years ended December 31, |
---------------------------------------------------- | ------------------------ | ------------
                                                     | 2019                     | 2018
Net cash provided by/(used in) operating activities  | $4,798,201               | $(3,308,826)
Net cash (used in)/provided by investing activities  | (19,814,991)             | 10,037,123
Net cash used in financing activities                | (2,437,560)              | (1,249,564)
Net (decrease)/increase in cash and cash equivalents | $(17,454,350)            | $5,478,733


NOTE 5 — VESSELS, OTHER PROPERTY AND DEFERRED DRYDOCK
Vessels and other property consist of the following:
On September 30, 2019, the Company took delivery of two 50,000 DWT class product and chemical tankers at Hyundai Mipo Dockyard Co., Ltd. The tankers, named the Overseas Gulf Coast and Overseas Sun Coast, are operating in the international market under the Marshall Islands flag, with both vessels having entered into one-year time charters.
In September 2019, the Company sold one of its ATBs for $1,234, net of broker commissions. As a result of the sale, the Company recognized an immaterial gain, which is included in loss/(gain) on disposal of vessels and other property, including impairments, net on the consolidated statements of operations.
In May and June 2019, the Company sold two of its ATBs for $1,101 and $1,069, respectively, net of broker commissions. As a result of the sales, the Company recognized an immaterial loss, which is included in loss/(gain) on disposal of vessels and other property, including impairments, net on the consolidated statements of operations.
In July 2018 and January 2019, the Company signed binding contracts with Greenbrier Marine (formerly Gunderson Marine LLC) for the construction of two approximately 204,000 BBL, oil and chemical tank barges. The anticipated delivery of the barges to the Company is during the first and second half of 2020, respectively. The Company's remaining commitments under the contracts are $45,849 in 2020.
On December 6, 2018, the Company sold one ATB and one barge for $2,367, net of broker commissions. As a result of the sale, the Company recognized a gain of $877, which is included in loss/(gain) on disposal of vessels and other property, including impairments, net on the consolidated statements of operations.
In June 2018, one of the Company's ATBs was berthed to the dock when a third-party ship transiting the channel hit the Company's ATB causing structural damage to the Company's ATB and damage to the dock. The cost of repairs has been covered by existing insurance policies. The Company has filed a lawsuit against the third-party ship seeking recovery of its costs of repairs as well as its lost earnings from the ATB being off-hire for 46 repair days.
At December 31, 2019, the Company’s owned vessel fleet with a weighted average age of 8.2 years, consisted of six Handysize Product Carriers, two lightering ATBs and two clean ATBs. These vessels are pledged as collateral under the term loan agreements and have an aggregate carrying value of $634,379.

                                                    | Years Ended December 31, |
--------------------------------------------------- | ------------------------ | ---------
                                                    | 2019                     | 2018
Vessels, at cost                                    | $919,212                 | $845,868
Accumulated depreciation                            | (274,900)                | (248,939)
Vessels, net                                        | 644,312                  | 596,929
Construction in progress                            | 65,697                   | —
Finance lease right-of-use asset, at cost (Note 15) | 28,993                   | —
Accumulated amortization (Note 15)                  | (2,053)                  | —
Finance lease right-of use asset, net (Note 15)     | 26,940                   | —
Other property, at cost                             | 5,552                    | 5,895
Accumulated depreciation and amortization           | (5,289)                  | (5,165)
Other property, net                                 | 263                      | 730
Total vessels and other property                    | $ 737,212                | $ 597,659


Operating Expense
Sales and Marketing
Sales and marketing expenses increased $122.8 million, or 35.1%, for the year ended December 31, 2019 compared to the same period in 2018, due to an increase of $70.4 million in expenditures on marketing programs to support the growth of our business, such as advertisements on search engines and social media, brand campaigns, event sponsorships and payments to partners. Employee-related costs increased $48.7 million ($14.1 million of which related to stock-based compensation and related payroll taxes) to support the growth of the business including in Shopify Plus and International operations. Computer hardware and software costs increased by $3.7 million, largely due to the growth in sales and marketing headcount
Sales and marketing expenses increased $124.4 million, or 55.1%, for the year ended December 31, 2018 compared to the same period in 2017, primarily due to an increase of $80.7 million in employee-related costs. In addition to employee-related costs, marketing costs increased by $39.7 million and computer hardware and software costs increased by $4.0 million.

                             | Years ended December 31,           |           |           | 2019 vs 2018 | 2018 vs 2017
---------------------------- | ---------------------------------- | --------- | --------- | ------------ | ------------
                             | 2019                               | 2018      | 2017      | % Change     | % Change
                             | (in thousands, except percentages) |           |           |              |
Sales and marketing          | $ 472,841                          | $ 350,069 | $ 225,694 | 35.1 %       | 55.1 %
Percentage of total revenues | 30.0 %                             | 32.6 %    | 33.5 %    |              |


Note 24. Stock-Based Compensation
The Company’s stock-based compensation plans include the 2019 Equity Incentive Plan for employees and certain non-employees, including non-employee directors, and the Deferred Compensation Plan for certain eligible employees. The Company issues common stock and uses treasury stock to satisfy stock option exercises or vesting of stock awards.
The following table summarizes the stock-based compensation expense (primarily in the Americas) and income tax benefits related to the stock-based compensation, both plan and non-plan related (in thousands):
(1) Included in "General and administrative" costs in the accompanying Consolidated Statements of Operations.
(2) Included in "Income taxes" in the accompanying Consolidated Statements of Operations.
There were no capitalized stock-based compensation costs as of December 31, 2019, 2018 and 2017.

                                       |          | Years Ended December 31, |
-------------------------------------- | -------- | ------------------------ | --------
                                       | 2019     | 2018                     | 2017
Stock-based compensation (expense) (1) | $(7,396) | $(7,543)                 | $(7,621)
Income tax benefit (2)                 | 1,775    | 1,810                    | 2,858


The Company recognizes the employees and directors’ compensation in the profit or loss during the periods when earned for the years ended December 31, 2017, 2018 and 2019. The Board of Directors estimates the amount by taking into consideration the Articles of Incorporation, government regulations and industry averages.
If the Board of Directors resolves to distribute employee compensation
through stock, the number of stock distributed is calculated based on total employee compensation divided by the closing price of the day before the Board of Directors meeting. If the Board of Directors subsequently modifies the estimates significantly, the Company will recognize the change as an adjustment in the profit or loss in the subsequent period.
The distributions of employees and directors’ compensation for 2017 and 2018 were reported to the stockholders’ meeting on June 12, 2018 and June 12, 2019, respectively, while the distributions of employees and directors’ compensation for 2019 were approved through the Board of Directors meeting on February 26, 2020. The details of distribution are as follows:
The aforementioned employees and directors’ compensation for 2017 and 2018 reported during the stockholders’ meeting were consistent with the resolutions of the Board of Directors meeting held on March 7, 2018 and March 6, 2019, respectively.
Information relevant to the aforementioned employees and directors’ compensation can be obtained from the “Market Observation Post System” on the website of the TWSE.

                               | 2017              | 2018              | 2019
------------------------------ | ----------------- | ----------------- | -----------------
                               | NT$(In Thousands) | NT$(In Thousands) | NT$(In Thousands)
Employees’ compensation – Cash | $1,032,324        | $1,400,835        | $1,132,952
Directors’ compensation        | 11,452            | 7,624             | 10,259


GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
Cash and Cash Equivalents
Cash includes non-interest and interest-bearing demand deposit accounts with various financial institutions. Cash equivalents include money market mutual fund accounts, which are invested in government securities. We consider all highly liquid investments that mature three months or less from the date of purchase to be cash equivalents. The carrying amounts of our cash equivalents approximate their fair values due to their short maturities and highly liquid nature. Refer to Note 3 for additional information.
At times, our cash balances may exceed federally insured amounts and potentially subject the Company to a concentration of credit risk. The Company believes that no significant concentration of credit risk exists with respect to these balances based on its assessment of the creditworthiness and financial viability of these financial institutions. Further, our cash equivalents may expose us to credit risk; however, we believe this risk is limited, as the investments are backed by the full faith and credit of the United States government.
Restricted Cash
Restricted cash primarily consists of interest-bearing escrow accounts that are required under the terms of the contracts with our Bank Partners. Restricted cash is typically comprised of three components: (i) amounts we have escrowed with Bank Partners as limited protection to the Bank Partners in the event of excess Bank Partner portfolio credit losses; (ii) additional amounts we maintain for certain Bank Partners based on a contractual percentage of the total interest billed on outstanding deferred interest loans that are within the promotional period less previous finance charge reversal ("FCR") settlements on such outstanding loans; and (iii) certain custodial intransit loan funding and consumer borrower payments that we are restricted from using for our operations. These custodial balances are not considered in our evaluation of restricted cash usage. As it relates to our restricted cash escrowed with Bank Partners, we record a liability for the amount of restricted cash we expect to be payable to our Bank Partners, which is accounted for as a financial guarantee. Refer to Note 14 for additional information.
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total included within the Consolidated Statements of Cash Flows as of the dates indicated.

                                                                                |          | December 31, |
-------------------------------------------------------------------------------------- | -------- | ------------ | --------
                                                                                | 2019     | 2018         | 2017
Cash and cash equivalents                                                              | $195,760 | $303,390     | $224,614
Restricted cash                                                                        | 250,081  | 155,109      | 129,224
Cash and cash equivalents and restricted cash in Consolidated Statements of Cash Flows | $445,841 | $458,499     | $353,838


16. Net Loss Per Share
Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period, less shares subject to repurchase, and excludes any dilutive effects of options, warrants and unvested restricted stock. Dilutive earnings per share is calculated by dividing net income by the weighted average number of common shares used in the basic earnings per share calculation plus the dilutive effect of shares subject to options, warrants and unvested restricted stock.
The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):
Potentially dilutive common shares from employee incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under the ESPP. Weighted stock options outstanding with an exercise price higher than the Company's average stock price for the periods presented are excluded from the calculation of diluted net loss per share since the effect of including them would have been anti-dilutive due to the net loss position of the Company during the periods presented.

                                                                          |               | Year Ended    |
------------------------------------------------------------------------- | ------------- | ------------- | -------------
                                                                          | June 30,
2019 | June 30,
2018 | June 30,
2017
Net loss                                                                  | $(25,853)     | $(46,792)     | $(1,744)
Weighted-average shares used in per share calculation - basic and diluted | 117,954       | 114,221       | 108,273
Net loss per share - basic and diluted                                    | $(0.22)       | $(0.40)       | $(0.02)


A summary of the option activity as of May 26, 2019 and changes during the fiscal year then ended is presented below:
We recognize compensation expense using the straight-line method over the requisite service period, accounting for forfeitures as they occur. During fiscal 2017, we granted 1.1 million stock options with a weighted average grant date fair value of $6.12 per share. The total intrinsic value of stock options exercised was $7.9 million, $15.8 million, and $29.8 million for fiscal 2019, 2018, and 2017, respectively. The closing market price of our common stock on the last trading day of fiscal 2019 was $28.83 per share.
Compensation expense for stock option awards totaled $2.2 million, $4.2 million, and $6.2 million for fiscal 2019, 2018, and 2017, respectively, including discontinued operations of $0.2 million for fiscal 2017. Included in the compensation expense for stock option awards for fiscal 2019, 2018, and 2017 was $0.2 million, $0.4 million, and $0.9 million, respectively, related to stock options granted by a subsidiary in the subsidiary's shares to the subsidiary's employees. The tax benefit related to the stock option expense for fiscal 2019, 2018, and 2017 was $0.5 million, $1.4 million, and $2.4 million, respectively.
At May 26, 2019, we had $0.2 million of total unrecognized compensation expense related to stock options that will be recognized over a weighted average period of 0.1 years.
Cash received from stock option exercises for fiscal 2019, 2018, and 2017 was $12.4 million, $25.1 million, and $84.4 million, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $2.3 million, $5.3 million, and $19.5 million for fiscal 2019, 2018, and 2017, respectively.

Options                     | Number of Options (in Millions) | Weighted Average Exercise Price | Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in Millions)
--------------------------- | ------------------------------- | ------------------------------- | ------------------------------------------ | ---------------------------------------
Outstanding at May 27, 2018 | 5.1                             | $28.11                          |                                            |
Exercised                   | (0.6)                           | $20.75                          |                                            | $7.9
Expired                     | (0.1)                           | $29.84                          |                                            |
Outstanding at May 26, 2019 | 4.4                             | $29.00                          | 5.47                                       | $9.9
Exercisable at May 26, 2019 | 4.1                             | $28.38                          | 5.32                                       | $9.9


Unallocated Amounts
In determining revenue, gross profit and income from operations for our segments, we do not include in revenue the amortization of acquisition related deferred revenue adjustments, which reflect the fair value adjustments to deferred revenues acquired in a business acquisition. We also exclude the amortization of intangible assets, stock-based compensation expense, expenses not reflective of our core business and transaction-related costs and non-cash asset impairment charges from the operating segment data provided to our Chief Operating Decision Maker.
Expenses not reflective of our core business relate to certain severance, product consolidation, legal, consulting and other charges. Accordingly, these amounts are not included in our reportable segment results and are included in the “Unallocated Amounts” category.
The “Unallocated Amounts” category also includes (i) corporate general and administrative expenses (including marketing expenses) and certain research and development expenses related to common solutions and resources that benefit all of our business units, all of which are centrally managed, and (ii) revenue and the associated cost from the resale of certain ancillary products, primarily hardware.
Year Ended December 31, 2019 Compared with the Year Ended December 31, 2018
Revenue from the resale of ancillary products, primarily consisting of hardware, is customer- and project-driven and, as a result, can fluctuate from period to period. The increase in revenue for the year ended December 31, 2019 compared to the prior year was primarily due to only $2 million in amortization of acquisition-related deferred revenue adjustments being recorded during 2019, compared to $24.3 million during 2018.
Gross unallocated expenses, which represent the unallocated loss from operations excluding the impact of revenue, totaled $478 million for the year ended December 31, 2019 compared to $533 million for the year ended December 31, 2018. The decrease was primarily the result of (i) lower asset impairment and goodwill charges of $35 million, (ii) lower net transaction-related severance and legal expenses of $16 million and (iii) lower acquisition related amortization of $1 million. These were partially offset with $3 million in additional stock-based compensation expense.
Year Ended December 31, 2018 Compared with the Year Ended December 31, 2017
Revenue from the resale of ancillary products, primarily consisting of hardware, is customer and project driven and, as a result, can fluctuate from period to period. Revenue for the year ended December 31, 2018 compared with the prior year improved primarily due to lower recognition of amortization of acquisition-related deferred revenue adjustments, which reflect the fair value adjustments to deferred revenues acquired in the EIS Business, Practice Fusion, Health Grid and NantHealth provider/patient engagement acquisitions.
Such adjustments totaled $24 million for the year ended December 31, 2018 compared with $29 million for the year ended December 31, 2017.
Gross unallocated expenses, which represent the unallocated loss from operations excluding the impact of revenue, totaled $533 million for the year ended December 31, 2018 compared with $424 million for the prior year. The increase in the year ended December 31, 2018 compared with prior year was primarily driven by higher transaction-related, severance and legal expenses, primarily related to the acquisitions of the EIS Business, Practice Fusion and Health Grid,
which included higher (i) asset impairment charges of $58 million, (ii) goodwill impairment charges of $14 million, (iii) transaction-related, severance and legal expenses of $30 million, and (iv) amortization of intangible and acquisition-related asset of $9 million. The increase in amortization expense was primarily due to additional amortization expense associated with intangible assets acquired as part of business acquisitions completed since the third quarter of 2017.

                     |            |            | Year Ended December 31, |                         |
-------------------- | ---------- | ---------- | ----------------------- | ----------------------- | -----------------------
(In thousands)       | 2019       | 2018       | 2017                    | 2019 % Change from 2018 | 2018 % Change from 2017
Revenue              | $13,346    | $(6,386)   | $(13,383)               | NM                      | (52.3%)
Gross profit         | $(63,522)  | $(86,228)  | $(85,130)               | (26.3%)                 | 1.3%
Gross margin %       | NM         | NM         | NM                      |                         |
Loss from operations | $(465,176) | $(539,237) | $(437,431)              | (13.7%)                 | 23.3%
Operating margin %   | NM         | NM         | NM                      |                         |


AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in millions, unless otherwise disclosed)
Cash and Cash Equivalents—Cash and cash equivalents include cash on hand, demand deposits and short-term investments with original maturities of three months or less. The Company maintains its deposits at high-quality financial institutions and monitors the credit ratings of those institutions.
Restricted Cash—Restricted cash includes cash pledged as collateral to secure obligations and all cash whose use is otherwise limited by contractual provisions.
The reconciliation of cash and cash equivalents and restricted cash reported within the applicable balance sheet that sum to the total of the same such amounts shown in the statements of cash flows is as follows:

                                                 |          | Year Ended December 31, |
------------------------------------------------ | -------- | ----------------------- | ------
                                                 | 2019     | 2018                    | 2017
Cash and cash equivalents                        | $1,501.2 | $1,208.7                | $802.1
Restricted cash                                  | 76.8     | 96.2                    | 152.8
Total cash, cash equivalents and restricted cash | $1,578.0 | $1,304.9                | $954.9


Notes to Consolidated Financial Statements - (Continued) Fiscal Years Ended May 26, 2019, May 27, 2018, and May 28, 2017 (columnar dollars in millions except per share amounts) Private Brands Operations
On February 1, 2016, pursuant to the Stock Purchase Agreement, dated as of November 1, 2015, we completed the disposition of our Private Brands operations to TreeHouse Foods, Inc. ("TreeHouse").
The summary comparative financial results of the Private Brands business, included within discontinued operations, were as follows:
We entered into a transition services agreement with TreeHouse and recognized $2.2 million and $16.9 million of income for the performance of services during fiscal 2018 and 2017, respectively, classified within SG&A expenses.

                                                                                | 2019 | 2018   | 2017
--------------------------------------------------------------------------------------------- | ---- | ------ | ------
Loss on sale of business                                                                      | $—   | $—     | $(1.6)
Income from discontinued operations before income taxes and equity method investment earnings | 0.9  | 0.4    | 3.9
Income before income taxes and equity method investment earnings .                            | 0.9  | 0.4    | 2.3
Income tax expense (benefit) .                                                                | —    | 0.5    | (0.3)
Income (loss) from discontinued operations, net of tax                                        | $0.9 | $(0.1) | $2.6


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
NOTE 4 — Inventories
Inventories consist of the following:

                         | As of December 31, |
------------------------ | ------------------ | -------
                         | 2019               | 2018
Finished goods           | $9,447             | $10,995
Work-in-process          | 14,954             | 12,129
Raw materials            | 23,363             | 25,746
Less: Inventory reserves | (5,527)            | (5,384)
Inventories, net         | $42,237            | $43,486


AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in millions, unless otherwise disclosed)
The domestic and foreign components of income from continuing operations before income taxes are as follows:

              |          | Year Ended December 31, |
------------- | -------- | ----------------------- | --------
              | 2019     | 2018                    | 2017
United States | $1,527.0 | $1,212.7                | $971.2
Foreign       | 389.4    | (58.1)                  | 284.9
Total         | $1,916.4 | $1,154.6                | $1,256.1


OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS
At June 30, 2019, the Company’s total off-balance sheet contractual obligations were $665,107. This balance consists of $71,633 of long-term operating leases for various facilities and equipment which expire from 2020 to 2030 and $593,474 of purchase commitments. In fiscal 2017, JHA entered a strategic services agreement with First Data® and PSCU® to provide full-service debit and credit card processing on a single platform to all existing core bank and credit union customers, as well as expand its card processing platform to financial institutions outside our core customer base. This agreement includes a purchase commitment of $555,754 over the remaining term of the contract. The remainder of the purchase commitments relate mainly to open purchase orders. The contractual obligations table below excludes $12,009 of liabilities for uncertain tax positions as we are unable to reasonably estimate the ultimate amount or timing of settlement.
The operating lease obligations included on this table will be recorded on the balance sheet beginning in fiscal 2020 due to the Company’s adoption of ASU No. 2016-02, issued by the FASB in February 2016 and effective for the Company on July 1, 2019.

Contractual obligations by period as of June 30, 2019 | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | TOTAL
----------------------------------------------------- | ---------------- | --------- | --------- | ----------------- | --------
Operating lease obligations                           | $15,559          | $25,399   | $19,004   | $11,671           | $71,633
Purchase obligations                                  | 62,637           | 86,875    | 107,188   | 336,774           | 593,474
Total                                                 | $78,196          | $112,274  | $126,192  | $348,445          | $665,107


The maximum exposure to credit risk for trade receivables at the reporting date by type of customer was:
The Group’s most significant customer accounts for £0.5m (2018: £0.6m) of net trade receivables as at 31 March 2019.

                        | 2019 | 2018
----------------------- | ---- | ----
                        | £m   | £m
Retailers               | 20.4 | 21.7
Manufacturer and Agency | 3.2  | 3.0
Other                   | 1.3  | 0.7
Total                   | 24.9 | 25.4


3.4 Trail commission asset
Recognition, measurement and classification
The Group has elected to account for trail commission revenue at the time of selling a product to which trail commission attaches, rather than on the basis of actual payments received from the relevant fund or providers involved. On initial recognition, trail commission revenue and assets are recognised at expected value. Subsequent to initial recognition and measurement, the carrying amount of the trail commission asset is adjusted to reflect actual and revised estimated cash flows. The resulting adjustment is recognised as revenue or against revenue in profit or loss.
Cash receipts that are expected to be received within 12 months of the reporting date are classified as current. All other expected cash receipts are classified as non-current.
Key estimates – trail commission revenue and asset
This method of revenue recognition and valuation of trail commission asset requires the Directors and management to make certain estimates and assumptions based on industry data and the historical experience of the Group.
Attrition rates in Health are particularly relevant to the overall trail commission asset considering the relative size of the Health trail commission asset. Attrition rates vary substantially by provider and also by the duration of time the policy has been in force, with rates generally higher in policies under two years old. The attrition rates used in the valuation of the Health portfolio at 30 June 2019 ranged from 7.5% and 26.5% (2018: 7.5% and 26.5%). The simple average duration band attrition increase was up to 0.2% during the period, with higher increases experienced for policies that have been in force for shorter periods of time.
In undertaking this responsibility, the Group engages Deloitte Actuaries and Consultants Limited, a firm of consulting actuaries, to assist in reviewing the accuracy of assumptions for health, mortgages and life trail revenue. These estimates and assumptions include, but are not limited to: termination or lapse rates, mortality rates, inflation, forecast fund premium increases and the estimated impact of known Australian Federal and State Government policies.
These variable considerations are constrained to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. In determining the extent of constraint necessary to ensure to a high probability that a significant reversal of revenue will not occur, the Group performs a detailed assessment of the accuracy of previously forecast assumptions against historical results.

                                                                       | CONSOLIDATED |
---------------------------------------------------------------------- | ------------ | ----------
                                                                       | 2019 $’000   | 2018 $’000
Current                                                                | 25,626       | 22,103
Non-current                                                            | 88,452       | 80,817
Total trail commission asset                                           | 114,078      | 102,920
Reconciliation of movement in trail commission asset:                  |              |
Opening balance                                                        | 102,920      | 93,564
Trail commission revenue – current period trail commission sales sales | 34,732       | 33,007
Cash receipts                                                          | (23,574)     | (23,651)
Closing balance                                                        | 114,078      | 102,920


17 Impairment of Goodwill and Intangibles
Before recognition of impairment losses, the carrying amount of goodwill had been allocated as follows:
Impairment of goodwill and intangible assets is tested annually, or more frequently where there is indication of impairment.
Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately in the Consolidated Statement of Profit or Loss.
Goodwill is considered impaired if the carrying value of the cash-generating unit to which it relates is greater than the higher of fair value less costs of disposal and the value in use.
For the year-ended 31 March 2019, the Directors have reviewed the value of goodwill based on internal value in use calculations. The key assumptions for these calculations are discount rates, growth rates and expected changes to billings and direct costs during the period.
The Group prepares cash flow forecasts derived from the Directors’ most recent financial forecasts for the following five years. The growth rates for the five-year period are based on Directors’ expectations of the medium-term operating performance of the cash-generating unit, planned growth in market share, industry forecasts, growth in the market and specific regional considerations and are in line with past experience. Discount rates have been estimated based on rates that reflect current market assessments of the Group’s weighted average cost of capital.

         | 31 March 2019 | 31 March 2018
-------- | ------------- | -------------
         | $M            | $M
Americas | 273.6         | 288.2
EMEA     | 413.0         | 434.2
APJ      | 98.7          | 103.6
         | 785.3         | 826.0


6. Financial Instruments
The composition of financial instruments is as follows:
The fair values of the Company’s financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants and is recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The levels are described below:
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available.
The Company classifies its financial instrument within Level 2 of the fair value hierarchy on the basis of models utilizing market observable inputs. The interest rate swap has been valued on the basis of valuations provided by third-party pricing services, as derived from standard valuation or pricing models. Market-based observable inputs for the interest rate swap include one month LIBOR-based yield curves over the term of the swap. The Company reviews third-party pricing provider models, key inputs and assumptions and understands the pricing processes at its third-party providers in determining the overall reasonableness of the fair value of its Level 2 financial instruments. The Company also considers the risk of nonperformance by assessing the swap counterparty's credit risk in the estimate of fair value of the interest rate swap. As of December 31, 2019 and 2018, the Company has not made any adjustments to the valuations obtained from its third party pricing providers.

                   | December 31, 2019 | December 31, 2018
------------------ | ----------------- | -----------------
(in thousands)     |                   |
Assets             |                   |
Interest rate swap | $—                | $1,623
Liabilities        |                   |
Interest rate swap | $37               | $—


The Company’s top ten clients accounted for 42.2%, 44.2% and 46.9% of its consolidated revenues during the years ended December 31, 2019, 2018 and 2017, respectively.
The following table represents a disaggregation of revenue from contracts with customers by delivery location (in thousands):

                |            | Years Ended December 31, |
--------------- | ---------- | ------------------------ | ----------
                | 2019       | 2018                     | 2017
Americas:       |            |                          |
United States   | $614,493   | $668,580                 | $644,870
The Philippines | 250,888    | 231,966                  | 241,211
Costa Rica      | 127,078    | 127,963                  | 132,542
Canada          | 99,037     | 102,353                  | 112,367
El Salvador     | 81,195     | 81,156                   | 75,800
Other           | 123,969    | 118,620                  | 118,853
Total Americas  | 1,296,660  | 1,330,638                | 1,325,643
EMEA:           |            |                          |
Germany         | 94,166     | 91,703                   | 81,634
Other           | 223,847    | 203,251                  | 178,649
Total EMEA      | 318,013    | 294,954                  | 260,283
Total Other     | 89         | 95                       | 82
                | $1,614,762 | $1,625,687               | $1,586,008


OPERATING EXPENSES
(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.
Fiscal 2019 fourth-quarter operating expenses increased by 1.6% (1.1% in constant currency) mainly from: • additional costs in the American broadband services segment mainly due to higher programming costs, additional headcount to support growth, higher marketing initiatives to drive primary service units growth and the FiberLight acquisition;

Three months ended August 31,                 | 2019 (1) | 2018 (2) | Change | Change in constant currency (3) | Foreign exchange impact (3)
--------------------------------------------- | -------- | -------- | ------ | ------------------------------- | ---------------------------
(in thousands of dollars, except percentages) | $        | $        | %      | %                               | $
Canadian broadband services                   | 147,815  | 153,560  | (3.7)  | (3.8)                           | 73
American broadband services                   | 148,215  | 136,506  | 8.6    | 7.6                             | 1,370
Inter-segment eliminations and other          | 6,803    | 7,911    | (14.0) | (14.0)                          | (2)
                                              | 302,833  | 297,977  | 1.6    | 1.1                             | 1,441


There was no material bad debt expense in 2019, 2018 and 2017. In 2019, 2018 and 2017, the Company’s largest customer, Apple represented 17.6%, 13.1% and 10.5% of consolidated net revenues, respectively, reported in the ADG, AMS and MDG segments.
In 2019, $75 million of trade accounts receivable were sold without recourse (nil in 2018).

                                | December 31, 2019 | December 31, 2018
------------------------------- | ----------------- | -----------------
Trade accounts receivable       | 1,396             | 1,292
Allowance for doubtful accounts | (16)              | (15)
Total                           | 1,380             | 1,277


Stock-based compensation expense is recognized in the Company’s consolidated statements of operations and includes compensation expense for the stock-based compensation awards granted or modified subsequent to January 1, 2006, based on the grant date fair value estimated in accordance with the provisions of the amended authoritative guidance. The impact on the Company’s results of operations of recording stock-based compensation expense for fiscal years 2019, 2018, and 2017 was as follows (in thousands):
No stock-based compensation was capitalized or included in inventories at the end of 2019, 2018 and 2017.

                                    |        | Fiscal Years |
----------------------------------- | ------ | ------------ | ------
                                    | 2019   | 2018         | 2017
Cost of revenue                     | $78    | $129         | $121
Research and development            | 2,242  | 760          | 614
Selling, general and administrative | 824    | 1,012        | 706
Total costs and expenses            | $3,144 | $1,901       | $1,441


ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (United States Dollars in thousands, except per share data and unless otherwise indicated)
Business Metrics
We review a number of operating and financial metrics to evaluate our business, measure our performance, identify trends, formulate plans and make strategic decisions, including the following.
Transaction Volume. We define transaction volume as the dollar value of loans facilitated on our platform
during a given period. Transaction volume is an indicator of revenue and overall platform profitability and has
grown substantially in the past several years.
Loan Servicing Portfolio. We define our loan servicing portfolio as the aggregate outstanding consumer loan balance (principal plus accrued interest and fees) serviced by our platform at the date of measurement. Our loan servicing portfolio is an indicator of our servicing activities. The average loan servicing portfolio for the years ended December 31, 2019, 2018 and 2017 was $8,213 million, $6,303 million and $4,501 million, respectively.
Active Merchants. We define active merchants as home improvement merchants and healthcare providers that have submitted at least one consumer application during the twelve months ended at the date of measurement. Because our transaction volume is a function of the size, engagement and growth of our merchant network, active merchants, in aggregate, are an indicator of future revenue and profitability, although they are not directly correlated. The comparative measures can also be impacted by disciplined corrective action taken by the Company to remove merchants from our program who do not meet our customer satisfaction standards.
Cumulative Consumer Accounts. We define cumulative consumer accounts as the aggregate number of consumer accounts approved on our platform since our inception, including accounts with both outstanding and zero balances. Although not directly correlated to revenue, cumulative consumer accounts is a measure of our brand awareness among consumers, as well as the value of the data we have been collecting from such consumers since our inception. We may use this data to support future growth by cross-marketing products and delivering potential additional customers to merchants that may not have been able to source those customers themselves.

                                        |        | Year Ended December 31, |
--------------------------------------- | ------ | ----------------------- | ------
                                        | 2019   | 2018                    | 2017
Transaction Volume                      |        |                         |
Dollars (in millions)                   | $5,954 | $5,030                  | $3,767
Percentage increase                     | 18%    | 34%                     |
Loan Servicing Portfolio                |        |                         |
Dollars (in millions, at end of period) | $9,150 | $7,341                  | $5,390
Percentage increase                     | 25%    | 36%                     |
Active Merchants                        |        |                         |
Number (at end of period)               | 17,216 | 14,907                  | 10,891
Percentage increase                     | 15%    | 37%                     |
Cumulative Consumer Accounts            |        |                         |
Number (in millions, at end of period)  | 3.03   | 2.24                    | 1.57
Percentage increase                     | 35%    | 43%                     |


1. THE BUSINESS
Maple Leaf Foods Inc. (“Maple Leaf Foods” or the "Company") is a producer of food products under leading brands including Maple
Leaf®, Maple Leaf Prime®, Schneiders®, Mina®, Greenfield Natural Meat Co.®, Swift®, Lightlife®, and Field Roast Grain Meat Co.™
The Company's portfolio includes prepared meats, ready-to-cook and ready-to-serve meals, valued-added fresh pork and poultry and
plant protein products. The address of the Company's registered office is 6985 Financial Dr. Mississauga, Ontario, L5N 0A1, Canada.
The Company employs approximately 13,000 people and does business primarily in Canada, the U.S. and Asia. The Company's shares trade on the Toronto Stock Exchange (MFI).
1. THE BUSINESS Maple Leaf Foods Inc. (“Maple Leaf Foods” or the "Company") is a producer of food products under leading brands including Maple Leaf®, Maple Leaf Prime®, Schneiders®, Mina®, Greenfield Natural Meat Co.®, Swift®, Lightlife®, and Field Roast Grain Meat Co.™ The Company's portfolio includes prepared meats, ready-to-cook and ready-to-serve meals, valued-added fresh pork and poultry and plant protein products. The address of the Company's registered office is 6985 Financial Dr. Mississauga, Ontario, L5N 0A1, Canada. The Company employs approximately 13,000 people and does business primarily in Canada, the U.S. and Asia. The Company's shares trade on the Toronto Stock Exchange (MFI).
Sales for 2019 were $3,941.5 million compared to $3,495.5 million last year, an increase of 12.8%. Excluding acquisitions, sales increased 5.2%, driven by favourable pricing, mix and volume in meat protein and accelerated growth in plant protein of 23.6%.
Net earnings for 2019 were $74.6 million ($0.60 per basic share) compared to $101.3 million ($0.81 per basic share) last year. Strong commercial performance and favourable resolution of income tax audits were more than offset by strategic investments in plant protein to drive top line growth and heightened volatility in hog prices. Net earnings were negatively impacted by $12.1 million due to non-cash fair value changes in biological assets and derivative contracts, which are excluded in the calculation of Adjusted Operating Earnings below.
Adjusted Operating Earnings for 2019 were $145.4 million compared to $215.6 million last year, and Adjusted Earnings per Share for
2019 were $0.68 compared to $1.22 last year due to similar factors as noted above.
For further discussion on key metrics and a discussion of results by operating segment, refer to the section titled Operating Review
starting on page 3 of this document.

                                       | Twelve months ended December 31, |          |
-------------------------------------- | -------------------------------- | -------- | --------
($ millions except earnings per share) | 2019                             | 2018     | % Change
Sales                                  | $3,941.5                         | $3,495.5 | 12.8 %
Net Earnings                           | $74.6                            | $101.3   | (26.4)%
Basic Earnings per Share               | $0.60                            | $0.81    | (25.9)%
Adjusted Operating Earnings(i)         | $145.4                           | $215.6   | (32.6)%
Adjusted Earnings per Share(i)         | $0.68                            | $1.22    | (44.3)%


Executive Officers of the Registrant
Our executive officers are appointed annually by our Board of Directors or, in some cases, appointed in accordance with our bylaws. Each officer holds office until
the next annual appointment of officers or until a successor has been duly appointed and qualified, or until the officer’s death or resignation, or until the officer has
otherwise been removed in accordance with our bylaws. The following table provides certain information regarding the current executive officers of the Company.
John Sarvis
Chief Executive Officer and President since April 2015. Chairman of the Board since 2016. Vice President of Ceramic Products from 2005 to 2015. Divisional Vice President
– Ceramics Division from 1998 to 2005. Prior to 1998, held various Marketing and Operational positions. Employed by the Company since 1973
Jeffrey Schmersal
Chief Operating Officer since April 2018. Senior Vice President since 2017. Divisional Vice President of Specialty Products from 2014 to 2017. Global Business Manager of
various product groups from 2006 to 2014. Prior to 2006, held various Quality and Supply Chain positions. Employed by the Company since 1994.
Michael Hufnagel
Chief Financial Officer since July 2018. Vice President of Corporate Finance since 2016. Director of Corporate Finance from 2015 to 2016. Director of Accounting and
Reporting from 2002 to 2015. Employed by the Company since 2002.
John Lawing
Senior Vice President and Chief Technology Officer since 2015. Vice President and Chief Technology Officer from April 2014 to 2015. President and Chief Operating
Officer from 2013 to March 2014. Vice President of Advanced Products from 2005 to April 2013. Divisional Vice President of Advanced Products from 2002 to 2005 and
Divisional Vice President of Leaded Products from 1997 to 2002. Prior to 1997, held positions in Engineering, Technical, Operational, and Plant management. Employed by
the Company since 1981.
S. Willing King
Senior Vice President of Tantalum Products since 2015. Vice President of Tantalum Products from 2013 to 2015. Deputy General Manager of Tantalum Products from 2012
to 2013. Vice President of Product Marketing from 2004 to 2012. Director of Product Marketing from 2000 to 2004. Prior to 2000, held positions in Technical Service, Sales,
and Marketing. Employed by the Company since 1984.

Name               | Age | Position
------------------ | --- | ---------------------------------------------------------------
John Sarvis        | 69  | Chief Executive Officer and President
Jeffrey Schmersal  | 50  | Chief Operating Officer
Michael Hufnagel   | 65  | Senior Vice President and Chief Financial Officer
John Lawing        | 68  | Senior Vice President and Chief Technology Officer
S. Willing King    | 56  | Senior Vice President of Tantalum Products
Eric Pratt         | 59  | Senior Vice President of Marketing
Evan Slavitt       | 61  | Senior Vice President, General Counsel, and Corporate Secretary
Steven Sturgeon    | 50  | Senior Vice President of Connector Products
Alexander Schenkel | 44  | Senior Vice President of Sales


Note 10—Goodwill
The following table presents changes in the carrying amount of goodwill by reportable segment:
Effective the beginning of fiscal 2019, the Company changed the composition of its Defense Solutions reportable segment, which resulted in the identification of new operating segments and reporting units within Defense Solutions. In addition, certain contracts were reassigned between the Civil and Defense Solutions reportable segments (see "Note 24—Business Segments"). Consequently, the carrying amount of goodwill was re-allocated among the reporting units for the purpose of testing goodwill for impairment.
In conjunction with the changes mentioned above, the Company evaluated goodwill for impairment using a quantitative step one analysis, both before and after the changes were made, and determined that goodwill was not impaired.
In fiscal 2019, the Company performed a qualitative analysis for all reporting units and determined that it was more likely than not that the fair values of the reporting units were in excess of the individual reporting units carrying values, and as a result, a quantitative step one analysis was not necessary.
In fiscal 2018, the Company performed a qualitative and quantitative analysis on its reporting units. Based on the qualitative analysis performed during the Company's annual impairment evaluation for fiscal 2018 for certain of its reporting units, it was determined that it was more likely than not that the fair values of the reporting units were in excess of the individual reporting unit carrying values, and as a result, a quantitative step one analysis was not necessary.
Additionally, based on the results of the quantitative step one analysis for certain other of its reporting units, it was determined that the fair value was in excess of the individual reporting units carrying values. In fiscal 2017, the Company performed a quantitative analysis for all reporting units. It was determined that the fair values of all reporting units exceeded their carrying values.
As a result, no goodwill impairments were identified as part of the annual goodwill impairment evaluation for the periods mentioned above. During the year ended January 3, 2020 and December 28, 2018, the Company recorded an immaterial correction of $3 million and $6 million, respectively, with respect to fair value of assets and liabilities acquired from the IS&GS Transactions.
(1) Carrying amount includes accumulated impairment losses of $369 million and $117 million within the Health and Civil segments, respectively.

                                                  | Defense Solutions | Civil         | Health | Total
------------------------------------------------- | ----------------- | ------------- | ------ | ------
                                                  |                   | (in millions) |        |
Goodwill at December 29, 2017(1)                  | $2,055            | $1,998        | $921   | $4,974
Foreign currency translation adjustments          | (40)              | (11)          | —      | (51)
Transfers to assets held for sale                 | —                 | (57)          | —      | (57)
Adjustment to goodwill                            | —                 | (6)           | —      | (6)
Goodwill at December 28, 2018(1)                  | 2,015             | 1,924         | 921    | 4,860
Goodwill re-allocation                            | 25                | (25)          | —      | —
Acquisition of IMX                                | —                 | —             | 50     | 50
Divestiture of health staff augmentation business | —                 | —             | (5)    | (5)
Foreign currency translation adjustments          | (4)               | 8             | —      | 4
Adjustment to goodwill                            | 3                 | —             | —      | 3
Goodwill at January 3, 2020(1)                    | $2,039            | $1,907        | $966   | $4,912


Adjusted Return on Invested Capital (Adjusted RoIC): TORM defines Adjusted RoIC as earnings before interest and tax (EBIT) less tax and impairment losses and reversals, divided by the average invested capital less average impairment for the period. Invested capital is defined below.
The Adjusted RoIC expresses the returns generated on capital invested in the Group adjusted for impacts related to the impairment of the fleet. The progression of RoIC is used by TORM to measure progress against our longer-term value creation goals outlined to investors. Adjusted RoIC is calculated as follows:
¹⁾ Average invested capital is calculated as the average of the opening and closing balance of invested capital.
²⁾ Average impairment is calculated as the average of the opening and closing balances of impairment charges on vessels and goodwill in the balance sheet.

USDm                                             | 2019    | 2018    | 2017
------------------------------------------------ | ------- | ------- | -------
EBIT less Tax                                    | 205.1   | 1.2     | 38.8
Impairment reversal                              | -120.0  | -       | -
EBIT less tax and impairment                     | 85.1    | 1.2     | 38.8
Average invested capital¹⁾                       | 1,627.7 | 1,437.7 | 1,396.9
Average impairment ²⁾                            | 98.2    | 185.0   | 185.0
Average invested capital less average impairment | 1,725.9 | 1,622.7 | 1,581.9
Adjusted RoIC                                    | 4.9%    | 0.1%    | 2.4%


ADOPTION OF IFRS 16
Upon adoption of IFRS 16 on January 1, 2019, we recognized right-of-use assets of $2,257 million within property, plant and equipment, and lease liabilities of $2,304 million within debt, with an increase to our deficit of $19 million. These amounts were recognized in addition to assets under finance leases of $1,947 million and the corresponding finance lease liabilities of $2,097 million at December 31, 2018 under IAS 17. As a result, on January 1, 2019, our total right-of-use assets and lease liabilities amounted to $4,204 million and $4,401 million, respectively. The table below shows the impacts of adopting IFRS 16 on our January 1, 2019 consolidated statement of financial position.
BCE’s operating lease commitments at December 31, 2018 were $1,612 million. The difference between operating lease commitments at December 31, 2018 and lease liabilities of $2,304 million upon adoption of IFRS 16 at January 1, 2019, is due mainly to an increase of $1,122 million related to renewal options reasonably certain to be exercised, an increase of $112 million mainly related to non-monetary transactions and a decrease of ($542) million as a result of discounting applied to future lease payments, which was determined using a weighted average incremental borrowing rate of 3.49% at January 1, 2019.

                                     | DECEMBER 31, 2018 AS REPORTED | IFRS 16 IMPACTS | JANUARY 1, 2019 UPON ADOPTION OF IFRS 16
------------------------------------ | ----------------------------- | --------------- | ----------------------------------------
Prepaid expenses                     | 244                           | (55)            | 189
Other current assets                 | 329                           | 9               | 338
Property, plant and equipment        | 24,844                        | 2,257           | 27,101
Other non-current assets             | 847                           | 17              | 864
Trade payables and other liabilities | 3,941                         | (10)            | 3,931
Debt due within one year             | 4,645                         | 293             | 4,938
Long-term debt                       | 19,760                        | 2,011           | 21,771
Deferred tax liabilities             | 3,163                         | (7)             | 3,156
Other non-current liabilities        | 997                           | (39)            | 958
Deficit                              | (4,937)                       | (19)            | (4,956)
Non-controlling interest             | 326                           | (1)             | 325


The below tables represents the key components of Teradyne’s convertible senior notes:
As of December 31, 2019, the unamortized discount was $65.3 million, which will be amortized over four years using the effective interest rate method. The carrying amount of the equity component was $100.8 million. As of December 31, 2019, the conversion price was approximately $31.62 per share and if converted the value of the notes was $992.0 million.

                                        | December 31, 2019 | December 31, 2018
--------------------------------------- | ----------------- | -----------------
                                        | (in thousands)    |
Debt principal                          | $460,000          | $460,000
Unamortized discount                    | 65,313            | 80,019
Net carrying amount of convertible debt | $394,687          | $379,981


Company balance sheet
At 31 March 2019
The financial statements were approved by the Board of Directors on 6 June 2019 and authorised for issue.

                                               |      | 2019    | 2018
---------------------------------------------- | ---- | ------- | -------
                                               | Note | £m      | £m
Fixed assets                                   |      |         |
Investments                                    | 3    | 1,216.0 | 1,212.9
                                               |      | 1,216.0 | 1,212.9
Current assets                                 |      |         |
Debtors                                        | 4    | 415.9   | 440.7
Cash and cash equivalents                      | 5    | –       | 0.2
                                               |      | 415.9   | 440.9
Creditors: amounts falling due within one year | 6    | (411.4) | (288.4)
Net current assets                             |      | 4.5     | 152.5
Net assets                                     |      | 1,220.5 | 1,365.4
Capital and reserves                           |      |         |
Called-up share capital                        | 9    | 9.3     | 9.5
Own shares held                                | 10   | (16.5)  | (16.9)
Capital redemption reserve                     |      | 0.7     | 0.5
Retained earnings                              |      | 1,227.0 | 1,372.3
Total equity                                   |      | 1,220.5 | 1,365.4