S. INCOME TAXES
The components of income (loss) before income taxes and the provision (benefit) for income taxes as shown in the consolidated statements of operations were as follows:
Income tax expense for 2019, 2018 and 2017 totaled $58.3 million, $16.0 million and $266.7 million, respectively. The effective tax rate for 2019, 2018 and 2017 was 11.1%, 3.4% and 50.9%, respectively.
On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”), making significant changes to the Internal Revenue Code. The Tax Reform Act has significant direct and indirect implications for accounting for income taxes under ASC 740, “Accounting for Income Taxes” some of which could not be calculated with precision until further clarification and guidance was made available from tax authorities, regulatory bodies or the FASB. In light of this uncertainty, on December 22, 2017 the SEC issued Staff Accounting Bulletin (“SAB”) No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” to address uncertainty in the application of U.S. GAAP when the registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. In accordance with SAB 118, Teradyne recorded $186.0 million of additional income tax expense in the fourth quarter of 2017 which represented Teradyne’s best estimate of the impact of the Tax Reform Act in accordance with Teradyne’s understanding of the Tax Reform Act and available guidance as of that date. The $186.0 million was primarily composed of expense of $161.0 million related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings, $33.6 million of expense related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, and a benefit of $10.3 million associated with the impact of correlative adjustments on uncertain tax positions. In accordance with the requirements of SAB 118, in the fourth quarter of 2018, Teradyne completed its analysis of the effect of the Tax Reform Act based on the application of the most recently available guidance as of December 31, 2018 and recorded $49.5 million of net income tax benefit. The net benefit consisted of $51.7 million of benefit resulting from a reduction in the estimate of the one-time transition tax on the mandatory deemed repatriation of foreign earnings and an expense of $2.2 million associated with the impact of correlative adjustments on uncertain tax positions.

                                     | 2019     | 2018           | 2017
------------------------------------ | -------- | -------------- | --------
                                     |          | (in thousands) |
Income before income taxes           |          |                |
U.S                                  | $192,442 | $189,691       | $76,699
Non-U.S                              | 333,330  | 278,110        | 447,713
                                     | $525,772 | $467,801       | $524,412
Provision (benefit) for income taxes |          |                |
Current:                             |          |                |
U.S. Federal                         | $19,297  | $(59,122)      | $162,679
Non-U.S                              | 52,810   | 45,083         | 64,313
State                                | (4,347)  | 1,721          | 2,623
                                     | 67,760   | (12,318)       | 229,615
Deferred:                            |          |                |
U.S. Federal                         | (4,522)  | 29,252         | 43,687
Non-U.S                              | (8,007)  | (1,243)        | (6,476)
State                                | 3,073    | 331            | (106)
                                     | (9,456)  | 28,340         | 37,105
Total provision for income taxes     | $58,304  | $16,022        | $266,720


RECENT DEVELOPMENTS AND RESULTS OF OPERATIONS
The results of operations that follow have first been divided into (a) our controlling interests in our publicly-traded subsidiaries Teekay LNG and Teekay Tankers and (b) Teekay Parent.
Within these groups, we have further subdivided the results into their respective lines of business. The following table (a) presents revenues and income (loss) from vessel operations for each of Teekay LNG and Teekay Tankers, and for Teekay Parent, and (b) reconciles these amounts to our consolidated financial statements.
(1) During 2019, Teekay Tankers' ship-to-ship transfer business provided operational and maintenance services to Teekay LNG Bahrain Operations L.L.C., an entity wholly-owned by Teekay LNG, for the LNG receiving and regasification terminal in Bahrain. Also during 2019, the Magellan Spirit LNG carrier was chartered by Teekay LNG to Teekay Parent for a short period of time. During 2018, Teekay Parent chartered in two LNG carriers from Teekay LNG until March and April 2018.

                                | Revenues  |           | Income (loss) from vessel operations |
------------------------------- | --------- | --------- | ------------------------------------ | -------
(in thousands of U.S. dollars)  | 2019      | 2018      | 2019                                 | 2018
Teekay LNG                      | 601,256   | 510,762   | 299,253                              | 148,599
Teekay Tankers                  | 943,917   | 776,493   | 123,883                              | 7,204
Teekay Parent                   | 413,806   | 451,659   | (219,094)                            | 8,516
Elimination of intercompany (1) | (13,588)  | (10,426)  | —                                    | —
Teekay Corporation Consolidated | 1,945,391 | 1,728,488 | 204,042                              | 164,319


Note 4. Expenses
Accounting policy for expenses
Operating lease costs
Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a straight-line basis over the term of the lease.
Finance costs
All finance costs are expensed in the period in which they are incurred.
Research and development costs
Expenditure on research activities, undertaken with the prospect of obtaining new technical knowledge and understanding, is recognised in the statement of profit or loss and other comprehensive income as an expense when it is incurred.
Expenditure on development activities is charged as incurred, or deferred where these costs are directly associated with either integration of acquired technology or the development of new technology and it is determined that the technology has reached technological feasibility. Costs are deferred to future periods to the extent that they are expected beyond any reasonable doubt to be recoverable. The costs capitalised comprises directly attributable costs, including costs of materials, services and direct labour. Deferred costs are amortised from the date of commercial release on a straight-line basis over the period of the expected benefit, which varies from 2 to 10 years.

Consolidated                                                       |        |
------------------------------------------------------------------ | ------ | ------
                                                                   | 2019   | 2018
                                                                   | US$000 | US$000
Profit before income tax includes the following specific expenses: |        |
Included in professional advice expense                            |        |
Costs associated with acquisitions                                 | 244    | 572
Finance costs                                                      |        |
Interest and finance charges paid/payable                          | 1      | 2
Unwinding of the discount on provisions                            | 199    | 60
Finance costs expensed                                             | 200    | 62
Operating leases included in income statement                      |        |
Office rent                                                        | 4,339  | 3,538
Equipment                                                          | 12     | 16
Motor vehicle                                                      | 51     | 96
Total expense relating to operating leases                         | 4,402  | 3,650
Post-employment benefits                                           |        |
Post-employment benefits: defined contribution                     | 2,169  | 1,870
Research and development costs expensed                            |        |
Research and development costs incurred                            | 18,478 | 17,793


21. Supplemental Data
The following are additional required disclosures and other material items:

                                                             |        | Years Ended June 30, |
------------------------------------------------------------ | ------ | -------------------- | -------
($ in millions)                                              | 2019   | 2018                 | 2017
Cost Data:                                                   |        |                      |
Repairs and maintenance costs                                | $120.4 | $108.0               | $99.1
Cash Flow Data:                                              |        |                      |
Noncash investing and financing activities:                  |        |                      |
Noncash purchases of property, plant, equipment and software | $16.1  | $16.5                | $13.7
Cash paid (received) during the year for:                    |        |                      |
Interest payments, net                                       | $27.6  | $29.5                | $27.7
Income tax payments (refunds), net                           | $27.5  | $33.7                | $(33.3)


15 Financial risk management (continued)
(b) Credit risk
Credit risk arises from cash and cash equivalents, and trade and other receivables.
(ii) Trade and other receivables
Customer credit risk is managed subject to the Group’s established policy, procedures and control relating to customer credit risk management. Credit evaluations are performed on all customers. Outstanding customer receivables are monitored regularly.
The Group aims to minimise concentration of credit risk by undertaking transactions with a large number of customers. In addition, receivable balances are monitored on an ongoing basis with the intention that the Group’s exposure to bad debts is minimised.
Revenues from data centre services of $61.2 million were derived from two customers (2018: $44.4 million from one customer) whose revenue comprised more than 37% (2018: 29%) of total data centre services revenue.
The maximum exposure to credit risk at the end of the reporting period is the carrying value of each class of the financial assets mentioned above and each class of receivable disclosed in Note 5. The Group does not require collateral in respect of financial assets.
The Group applies the simplified approach to providing for expected credit losses prescribed by AASB 9, which permits the use of the lifetime expected loss provision for all trade receivables. The loss allowance provision as at 30 June 2019 is determined as follows; the expected credit losses below also incorporate forward looking information.

30 June 2019             | Current | 0 to 30 days past due | 31 to 60 days past due | More than 60 days past due | Total
------------------------ | ------- | --------------------- | ---------------------- | -------------------------- | ------
                         | $'000   | $'000                 | $'000                  | $'000                      | $'000
Expected loss rate       | 1%      | 5%                    | 7.5%                   | 20%                        | -
Gross carrying amount    | 23,762  | 2,068                 | 787                    | 1,703                      | 28,320
Loss allowance provision | 238     | 103                   | 59                     | 341                        | 741
Net receivables          | 23,524  | 1,965                 | 728                    | 1,362                      | 27,579


Section 6: Our investments
This section outlines our group structure and includes information about our controlled and associated entities. It provides details of changes to these investments and their effect on our financial position and performance during the financial year. It also includes the results of our associated entities.
6.1 Parent entity disclosures
The accounting policies of the parent entity, iSelect Limited, which have been applied in determining the financial information shown below, are the same as those applied in the consolidated financial statements except for accounting for investments in subsidiaries which are measured at cost.
There are no contractual or contingent liabilities of the parent as at reporting date (2018: $nil). iSelect Limited has issued bank guarantees and letters of credit to third parties for various operational purposes. It is not expected these guarantees will be called on.

                                              | CONSOLIDATE |
--------------------------------------------- | ----------- | ----------
                                              | 2019 $’000  | 2018 $’000
Financial Position                            |             |
Assets                                        |             |
Current Assets                                | 4,297       | 7,869
Non-Current Assets                            | 165,165     | 174,810
Total Assets                                  | 169,462     | 182,679
Liabilities                                   |             |
Current Liabilities                           | 92,352      | 93,067
Total Liabilities                             | 92,352      | 93,067
Net Assets                                    | 77,110      | 89,612
Equity                                        |             |
Contributed Equity                            | 111,290     | 111,066
Reserves                                      | 3,960       | 3,198
Accumulated Losses                            | (38,140)    | (24,652)
Total Equity                                  | 77,110      | 89,612
Financial Performance                         |             |
Loss of the parent entity                     | (4,812)     | (163)
Total comprehensive loss of the parent entity | (4,812)     | (163)


7. Property, Plant and Equipment and Leases
Property, plant and equipment at April 30, 2019 and 2018, consisted of the following (in thousands):
Depreciation and amortization expense for the years ended April 30, 2019 and 2018 was $2,802,000 and $2,484,000, respectively.
Maintenance and repairs charged to operations for the years ended April 30, 2019 and 2018 was approximately $309,000 and $466,000, respectively.
The Company leases its Long Island, New York headquarters building. On July 25, 2018, the Company signed an amendment to the lease which extends the current lease terms ten years and eight months through September 30, 2029. Pursuant to the amendment to the lease agreement, the annual rent will increase from $1,046,810 in 2019 to $1,276,056 in 2029. Under the terms of the lease, the Company is required to pay its proportionate share of real estate taxes, insurance and other charges.
In addition, the Company’s subsidiaries in New Jersey and California lease their office and manufacturing facilities. On February 1, 2018, FEI-Elcom entered into a new lease agreement in New Jersey for office and manufacturing space encompassing approximately 9,000 square feet. The monthly rent is $9,673 through the end of the lease which expires in January 31, 2021. FEI-Zyfer has signed a second amendment to its lease in California, which extends the lease an additional 88 months, beginning October 1, 2017 and expiring January 31, 2025. The average annual rent over the period of the amendment is approximately $312,000. FEI-Zyfer leases office and manufacturing space encompassing 27,850 square feet.
Rent expense under operating leases for the years ended April 30, 2019 and 2018 was approximately $1.2 million and $1.7 million, respectively. The Company records rent expense on its New York building and FEI-Zyfer facility on the straight-line method over the lives of the respective leases. As a result, as of April 30, 2019 and 2018, the Company’s Consolidated Balance Sheet included deferred rent payable of approximately $236,000 and $110,000, respectively, which will be recognized over the respective rental periods.

                                    | 2019      | 2018
----------------------------------- | --------- | --------
Buildings and building improvements | $2,692    | $2,790
Machinery, equipment and furniture  | 57,157    | 57,503
                                    | 59,849    | 60,293
Less, accumulated depreciation      | (46,811 ) | (46,166)
                                    | $13,038   | $ 14,127


Valuation of Goodwill
Goodwill balances by reporting unit are as follows:
Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill is not amortized but is subject to an impairment test at a reporting unit level on an annual basis and when circumstances indicate that an impairment is more-likely-than-not. Such circumstances that might indicate an impairment is more-likely-than-not include a significant adverse change in the business climate for one of our reporting units or a decision to dispose of a reporting unit or a significant portion of a reporting unit. The test for goodwill impairment is a two-step process. The first step of the test is performed by comparing the fair value of each reporting unit to its carrying amount, including recorded goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step is performed to measure the amount of the impairment, if any, by comparing the implied fair value of goodwill to its carrying amount. Any resulting impairment would be recorded in the current period.
Determining the fair value of a reporting unit for purposes of the goodwill impairment test or for changes in our operating structure is judgmental in nature and involves the use of estimates and assumptions. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and also the magnitude of any such charge. Estimates of fair value are primarily determined using discounted cash flows and market multiples from publicly traded comparable companies. These approaches use significant estimates and assumptions including projected future cash flows, discount rate reflecting the inherent risk in future cash flows, perpetual growth rate and determination of appropriate market comparables.
We evaluate our reporting units when changes in our operating structure occur, and if necessary, reassign goodwill using a relative fair value allocation approach. As described in Note 18 to our Consolidated Financial Statements in Item 8 of this Form 10-K, beginning on October 1, 2017, we concluded that CMS became a separate operating segment. In conjunction with the changes to reporting units, we reassigned goodwill between CGD and CMS based on their relative fair values as of October 1, 2017. We estimated the fair value of CGD and CMS at October 1, 2017 based upon market multiples from publicly traded comparable companies in addition to discounted cash flows models for CMS and for a combination of CGD and CMS based on discrete financial forecasts developed by management for planning purposes. Cash flows beyond the discrete forecasts were estimated based on projected growth rates and financial ratios, influenced by an analysis of historical ratios and by calculating a terminal value at the end of the discrete financial forecasts. For the October 1, 2017 valuations, future cash flows were discounted to present value using a discount rate of 13% for our CMS reporting unit and 11% for the combination of our CGD and CMS reporting units.
For the first step of our fiscal 2019 annual impairment test, we estimated the fair value of CTS based upon market multiples from publicly traded comparable companies and for CGD and CMS, we estimated the fair value based upon a combination of market multiples from publicly traded comparable companies and discounted cash flow models. The discounted cash flows were based on discrete three-year financial forecasts developed by management for planning purposes. Cash flows beyond the discrete forecasts were estimated based on projected growth rates and financial ratios, influenced by an analysis of historical ratios and by calculating a terminal value at the end of the three-year forecasts. The future cash flows were discounted to present value using a discount rate of 15% for CGD and 12.5% for CMS. The results of our 2019 annual impairment test indicated that the estimated fair value for our CTS and CGD reporting units exceeded their carrying amounts by over 100%, while the estimated fair value of our CMS reporting unit exceeded its carrying amount by over 60%.
Unforeseen negative changes in future business or other market conditions for any of our reporting units including margin compression or loss of business, could cause recorded goodwill to be impaired in the future. Also, changes in estimates and assumptions we make in conducting our goodwill assessment could affect the estimated fair value of our reporting units and could result in a goodwill impairment charge in a future period.

September 30,                | 2019     | 2018          | 2017
---------------------------- | -------- | ------------- | --------
                             |          | (in millions) |
Cubic Transportation Systems | $  254.6 | $  49.8       | $  50.9
Cubic Mission Solutions      | 181.4    | 138.1         | —
Cubic Global Defense         | 142.1    | 145.7         | 270.7
Total goodwill               | $  578.1 | $  333.6      | $  321.6


Other Income (Expense), Net
Other expense, net decreased by $31 thousand in 2019 compared to 2018 as a result of the recognition of a $1.4 million loss on extinguishment related to the partial repurchase of our 2022 Notes and a $1.1 million increase in interest expense related to our convertible senior notes, offset by an increase of $2.7 million of interest income earned on our investment as a result of proceeds invested from our convertible note and common stock offerings.

                   | Year Ended December 31, |                        | Change |
------------------ | ----------------------- | ---------------------- | ------ | ------
                   | 2019                    | 2018                   | $      | %
                   |                         | (dollars in thousands) |        |
Other expense, net | $ 4,597                 | $ 4,628                | $ (31) | (0.7)%
% of revenue       | 2%                      | 3%                     |        |


F. INVENTORIES
Inventories, net consisted of the following at December 31, 2019 and 2018:
Inventory reserves for the years ended December 31, 2019 and 2018 were $103.6 million and $100.8 million, respectively.

                | 2019           | 2018
--------------- | -------------- | --------
                | (in thousands) |
Raw material    | $118,595       | $89,365
Work-in-process | 32,695         | 31,014
Finished goods  | 45,401         | 33,162
                | $196,691       | $153,541


NOTE 14. INCOME (LOSS) PER SHARE (EPS)
Basic EPS is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. Our outstanding convertible preferred stocks are considered participating securities as the holders may participate in undistributed earnings with holders of common shares and are not obligated to share in our net losses.
Diluted EPS is computed by dividing the net income attributable to RiceBran Technologies common shareholders by the weighted average number of common shares outstanding during the period increased by the number of additional common shares that would have been outstanding if the impact of assumed exercises and conversions is dilutive. The dilutive effects of outstanding options, warrants, nonvested shares and restricted stock units that vest solely on the basis of a service condition are calculated using the treasury stock method. The dilutive effects of the outstanding preferred stock are calculated using the if-converted method.
Below are reconciliations of the numerators and denominators in the EPS computations, and information on potentially dilutive securities.
The impacts of potentially dilutive securities outstanding at December 31, 2019 and 2018, were not included in the calculation of diluted EPS in 2019 and 2018 because to do so would be anti-dilutive. Those securities listed in the table above which were anti-dilutive in 2019 and 2018, which remain outstanding, could potentially dilute EPS in the future.

Year Ended December 31                                                                                |            |
------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------- | ----------
                                                                                | 2019       | 2018
NUMERATOR: Basic and diluted - loss from continuing operations (in thousands)                                                                                | $ (13,735) | $ (8,101)
DENOMINATOR: Basic and diluted - weighted average number of common shares outstanding (in thousands)                                                                     | 32,359,316 | 22,099,149
Number of shares of common stock which could be purchased with weighted average outstanding securities not included in diluted EPS because effect would be antidilutive: |            |
Stock options                                                                                | 1,024,811  | 911,264
Warrants                                                                                | 8,443,547  | 16,383,944
Convertible preferred stock                                                                                | 224,848    | 581,680
Restricted stock units                                                                                | 1,235,287  | 623,603
Weighted average number of nonvested shares of common stock not included in diluted EPS because effect would be antidilutive                                             | 659,581    | 1,169,986


Stock-based compensation
The Company recognized $2.3 million, $2.1 million and $1.9 million of stock-based compensation expense for the years ended March 31, 2019, 2018 and 2017, respectively, as follows:
Stock-based compensation expense in the years ended March 31, 2019, 2018 and 2017 included $211,000, $207,000 and $150,000, respectively, related to the Company’s Employee Stock Purchase Plan.

                                    |        | Year Ended March 31,  |
----------------------------------- | ------ | --------------------- | ------
                                    | 2019   | 2018                  | 2017
                                    |        | (In thousands)        |
Cost of revenues                    | $234   | $259                  | $282
Research and development            | 1,310  | 1,141                 | 980
Selling, general and administrative | 722    | 670                   | 615
Total                               | $2,266 | $2,070                | $1,877


Principal Activities
The principal activities during the financial year within the Group were health, life and car insurance policy sales, mortgage brokerage, energy, broadband and financial referral services. There have been no significant changes in the nature of these activities during the year.
Review of results and operations1
Summary of financial results
1 Throughout this report, certain non-IFRS information, such as EBITDA, EBIT, Net Profit after Tax (NPAT), Earnings Per Share (EPS), Conversion Ratio, Leads and Revenue Per Sale (RPS) are used. Earnings before interest and income tax expense (EBIT) reflects profit for the year prior to including the effect of net finance costs and income taxes. Earnings before interest, income tax expense, depreciation and amortisation and loss on associate (EBITDA) reflects profits for the year prior to including the effect of net finance costs, income taxes, depreciation and amortisation and loss on associate. The individual components of EBITDA and EBIT are included as line items in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. Non-IFRS information is not audited. Reference to underlying results excludes the financial impacts of iMoney performance, impairment losses and write-offs from discontinued assets and operations, and material one-off transactions resulting from operations which are no longer core to the business.
2 Refer to the Reported versus Underlying Results reconciliation on page 112. The reconciliation forms part of the Review of Results and Operations
3 Restated due to retrospective adoption of new Accounting Standards.

                                                     | 2019  $’000 | 2018 $’000 RESTATED3 | CHANGE
---------------------------------------------------- | ----------- | -------------------- | ------
Continuing Operations                                |             |                      |
Operating revenue                                    | 154,159     | 176,931              | (13%)
Gross profit                                         | 52,963      | 45,139               | 17%
EBITDA                                               | 7,202       | 10,878               | (34%)
EBIT                                                 | (1,040)     | 1,405                | (174%)
NPAT                                                 | (2,003)     | 1,089                | (284%)
Reported Results (including discontinued operations) |             |                      |
Operating revenue                                    | 154,585     | 178,139              | (13%)
Gross profit                                         | 53,225      | 45,944               | 16
EBITDA                                               | 6,062       | (5,700)              | 206
EBIT                                                 | (2,252)     | (15,278)             | 85
NPAT                                                 | (4,360)     | (15,640)             | 72
EPS (cents)                                          | (1.7)       | (7.0)                | 76
Underlying Results                                   |             |                      |
Underlying EBITDA2                                   | 22,866      | 15,739               | 45
Underlying EBIT2                                     | 15,151      | 8,537                | 77
Underlying NPAT2                                     | 11,062      | 6,732                | 64
Underlying EPS2                                      | 5.1         | 3.1                  | 65


GasLog Ltd. and its Subsidiaries
Notes to the consolidated financial statements (Continued)
For the years ended December 31, 2017, 2018 and 2019
(All amounts expressed in thousands of U.S. Dollars, except share and per share data)
14. Other Payables and Accruals
An analysis of other payables and accruals is as follows:
The unearned revenue represents charter hires received in advance in December 2019 relating to the hire period of January 2020 for 22 vessels (December 2018: 17 vessels).

                  | As of December 31, |
----------------- | ------------------ | -------
                  | 2018               | 2019
Unearned revenue  | 38,680             | 48,183
Accrued off-hire  | 7,376              | 6,968
Accrued purchases | 18,578             | 9,759
Accrued interest  | 38,107             | 36,746
Other accruals    | 24,709             | 34,586
Total             | 127,450            | 136,242


Note 3. Revenue from Contracts with Customers
Contract Assets
Our contract assets consist of capitalized commission costs and upfront payments made to customers. The current portion of capitalized commission costs and upfront payments made to customers are included in other current assets within our consolidated balance sheets. The non-current portion of capitalized commission costs and upfront payments made to customers are reflected in other assets within our consolidated balance sheets. Our amortization of contract assets during the years ended December 31, 2019 and 2018 were $2.4 million and $2.0 million, respectively. There were no amortized commission costs during the year ended December 31, 2017.
We review the capitalized costs for impairment at least annually. Impairment exists if the carrying amount of the asset recognized from contract costs exceeds the remaining amount of consideration we expect to receive in exchange for providing the goods and services to which such asset relates, less the costs that relate directly to providing those good and services and that have not been recognized as an expense. We did not record an impairment loss on our contract assets during the years ended December 31, 2019, 2018 and 2017.
The changes in our contract assets are as follows (in thousands):

                                                                          | Year Ended December 31, |
------------------------------------------------------------------------- | ----------------------- | -------
                                                                          | 2019                    | 2018
Beginning of period balance                                               | $2,881                  | $—
Commission costs and upfront payments to a customer capitalized in period | 4,141                   | 4,864
Amortization of contract assets                                           | (2,444)                 | (1,983)
End of period balance                                                     | $4,578                  | $2,881


2. CONCENTRATIONS OF CREDIT RISK
The Company’s principal financial instrument subject to potential concentration of credit risk is accounts receivable, which is unsecured. The Company provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of accounts receivable. The Company has adopted credit policies and standards intended to accommodate industry growth and inherent risk and it believes that credit risks are moderated by the financial stability of its major customers, conservative payment terms and the Company’s strict credit policies.
Revenue from significant customers, those representing 10% or more of revenue for the respective periods, are summarized as follows:
The Company provided its products to Apple through sales to multiple contract manufacturers.
These customers primarily purchase RF and Wi-Fi solutions for cellular base stations and a variety of mobile devices, including smartphones, wearables, laptops, tablets and cellular-based applications for the IoT.
Accounts receivable related to these customers (which includes multiple contract manufacturers) accounted for 49%, 26%, and 40% of the Company’s total net accounts receivable balance as of March 30, 2019, March 31, 2018 and April 1, 2017, respectively.
On May 16, 2019, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce placed Huawei and 68 of its non-U.S. affiliates on the “entity list” under Export Administration Regulations (EAR), which had the effect of prohibiting all future sales by the Company of any product to Huawei or its affiliates, absent obtaining a license from BIS. While BIS has broad authority to issue licenses, the rulemaking imposes a presumption that licenses will be denied.
Although Huawei is not prohibited from paying (and the Company is not restricted from collecting) accounts receivable for products sold to Huawei prior to the BIS action, the credit risks associated with these accounts may have increased as a result of this development. As of the date of this report, the Company is unable to predict the scope or duration of the new EAR restrictions on Huawei or the impact to the Company’s business or future results of operations.

                                         |      | Fiscal Year |
---------------------------------------- | ---- | ----------- | ----
                                         | 2019 | 2018        | 2017
Apple Inc. (“Apple”)                     | 32%  | 36%         | 34%
Huawei Technologies Co., Ltd. (“Huawei”) | 13%  | 8%          | 11%


Other Income (Expense)
Interest Income
Interest income represents interest earned on our cash, cash equivalents, and investments.
Interest income increased by $16.9 million in fiscal year 2019. The increase in our interest income is associated with the increase in invested funds, primarily as a result of proceeds of approximately $600 million related to the common stock and convertible note offering in March 2018 and, to a lesser extent, higher yields on those invested funds.
Interest Expense
Interest expense includes both stated interest and the amortization of debt discount and issuance costs associated with the $400.0 million aggregate principal amount of our Convertible Senior Notes that were issued in March 2018. Accordingly, interest expense in fiscal year 2019 is higher than fiscal year 2018 as the notes were only outstanding for part of fiscal year 2018.
Interest expense increased $10.9 million in fiscal year 2019, compared to the same period a year ago. Interest expense for fiscal year 2019 consists of noncash interest expense of $12.2 million related to the amortization of debt discount and issuance costs and stated interest of $5.0 million.
Other Income (Expense), Net
Other income (expense), net consists primarily of foreign exchange gains and losses resulting from fluctuations in foreign exchange rates on monetary asset and monetary liability balances that are denominated in currencies other than the functional currency of the entity in which they are recorded. We currently have entities with a functional currency of the Argentine Peso, Australian Dollar, Brazilian Real, British Pound, Canadian Dollar, Euro, Japanese Yen, Malaysian Ringgit, and Polish Zloty.
We realized a net currency exchange loss of $1.9 million in fiscal year 2019 as compared to a net currency exchange gain of $0.5 million in fiscal year 2018 as a result of exchange rate movements on foreign currency denominated accounts against the US Dollar.

                            | Fiscal years ended July 31, |                                    |          |
--------------------------- | --------------------------- | ---------------------------------- | -------- | -----
                            | 2019                        | 2018                               | Change   |
                            | Amount                      | Amount                             | ($)      | (%)
                            |                             | (In thousands, except percentages) |          |
Interest income             | $30,182                     | $13,281                            | 16,901   | 127
Interest expense            | $(17,334)                   | $(6,442)                           | (10,892) | 169
Other income (expense), net | $(1,867)                    | $509                               | (2,376)  | (467)


Operating assets and liabilities
5 Trade and other receivables
(a) Trade receivables
(i) Classification as trade receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 30 - 60 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.
(ii) Fair values of trade and other receivables
Due to the short-term nature of the trade and other receivables, their carrying amount is considered to be the same as their fair value.
(iii) Impairment and risk exposure
Information about the Group's impairment policies, calculation of loss allowance and exposure to credit risk, foreign currency risk and interest rate risk can be found in note 15.
(b) Interest receivable
Interest receivable relates to interest accrued on term deposits. Credit risk of this is assessed in the same manner as cash and cash equivalents which is detailed in note 15.

                                |      | 30 June 2019 | 30 June 2018
------------------------------- | ---- | ------------ | ------------
                                | Note | $'000        | $'000
Trade receivables               | 5(a) | 28,320       | 36,522
Loss allowance (see note 15(b)) |      | (741)        | (1,254)
                                |      | 27,579       | 35,268
Interest receivable             | 5(b) | 54           | 27
GST receivable                  |      | 6,222        | 162
Other receivables               |      | 1            | 1,629
Total                           |      | 33,856       | 37,086


NOTE 10 – COMMON STOCK PURCHASE WARRANTS
Our warrant activity during the years ended December 31, 2019 and 2018 is shown below (in thousands except price data):
In connection with the issuance of the $10.0 million secured promissory notes in December 2013, we issued common stock purchase warrants (“warrants”) exercisable for 60 thousand shares of our common stock having an exercise price of $2.52 per share (after giving effect to our one-for-five reverse stock split) with an expiration date in December 2020. These warrants contain a cashless exercise feature (See Note 7).
As part of our July 2017 private placement transaction with Mr. Schutte, we issued warrants to purchase 1,782,531 shares of our common stock. The warrants are immediately exercisable at a price of $0.528 per share and expire five years after issuance (See Note 8). We have assigned a relative fair value of $495 thousand to the warrants out of the total $4.0 million proceeds from the private placement transaction and have accounted for these warrants as equity.
On June 28, 2019 as part of the changes made to the loan agreements we had with Mr. Schutte, each having an original due date of January 2, 2020, we issued to him a warrant to purchase 10.0 million shares of our common stock exercisable at a price of $0.01 per share and expire five years after issuance. We obtained a valuation of fair value on the warrant and $1.145 million was allocated to the warrant and accounted for as equity. (see Note 7 and Note 8). The warrant was assigned and transferred by Mr. Schutte to AD Pharma on June 28, 2019.

                     |        |          | December 31, |
-------------------- | ------ | -------- | ------------ | --------
                     |        | 2019     |              | 2018
                     |        | WAvg     |              | WAvg
                     |        | Exercise |              | Exercise
                     | Number | Price    | Number       | Price
Outstanding, Jan. 1  | 1,842  | $0.59    | 1,842        | $0.59
Issued               | 10,000 | 0.01     | -            | -
Exercised            | -      | -        | -            | -
Expired              | -      | -        | -            | -
Modification         | -      | -        | -            | -
Outstanding, Dec. 31 | 11,842 | 0.10     | 1,842        | $0.59


ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
The final fair values of the assets acquired and liabilities assumed from our acquisitions in 2018 are as follows:

                                        | Trek    | Electrostatic Product Line | LumaSense | Total
--------------------------------------- | ------- | -------------------------- | --------- | --------
Accounts and other receivable, net      | $ 2,818 | $  77                      | $  7,167  | $ 10,062
Inventories                             | 3,941   | 292                        | 9,372     | 13,605
Property and equipment                  | 594     | 50                         | 1,353     | 1,997
Goodwill                                | —       | 1,220                      | 36,258    | 37,478
Intangible assets                       | 788     | 1,400                      | 43,240    | 45,428
Deferred income tax assets              | 606     | —                          | 6,331     | 6,937
Other assets                            | 854     | —                          | 6,004     | 6,858
Total assets acquired                   | 9,601   | 3,039                      | 109,725   | 122,365
Accounts payable                        | 747     | 39                         | 5,734     | 6,520
Deferred income tax liabilities         | —       | —                          | 11,699    | 11,699
Other liabilities                       | 2,782   | —                          | 7,608     | 10,390
Total liabilities assumed               | 3,529   | 39                         | 25,041    | 28,609
Total fair value of net assets acquired | $ 6,072 | $  3,000                   | $  84,684 | $ 93,756


1998 Employee Qualified Stock Purchase Plan (“ESPP”)
Under Autodesk’s ESPP, which was approved by stockholders in 1998, eligible employees may purchase shares of Autodesk’s common stock at their discretion using up to 15% of their eligible compensation, subject to certain limitations, at 85% of the lower of Autodesk's closing price (fair market value) on the offering date or the exercise date. The offering period for ESPP awards consists of four, six-month exercise periods within a 24-month offering period.
At January 31, 2019, a total of 8.1 million shares were available for future issuance. Under the ESPP, the Company issues shares on the first trading day following March 31 and September 30 of each fiscal year. The ESPP does not have an expiration date.
A summary of the ESPP activity for the fiscal years ended January 31, 2019, 2018 and 2017 is as follows:
Autodesk recorded $27.2 million, $25.7 million, and $25.9 million of compensation expense associated with the ESPP in fiscal 2019, 2018, and 2017, respectively.

                                                                        |        | Fiscal year ended January 31, |
----------------------------------------------------------------------- | ------ | ----------------------------- | ------
                                                                        | 2019   | 2018                          | 2017
Issued shares                                                           | 1.0    | 2.0                           | 2.3
Average price of issued shares                                          | $90.25 | $39.03                        | $36.99
Weighted average grant date fair value of awards granted under the ESPP | $42.75 | $32.41                        | $19.20


Deferred income taxes reflect the net tax effects of temporary differences between the amounts of assets and liabilities for accounting purposes and the amounts used for income tax purposes. The components of the net deferred tax assets (liabilities) are as follows (amounts in millions):
As of December 31, 2019, we had gross tax credit carryforwards of $191 million for state purposes. The tax credit carryforwards are included in Deferred tax assets net of unrealized tax benefits that would apply upon the realization of uncertain tax positions. In addition, we had foreign NOL carryforwards of $32 million at December 31, 2019, attributed mainly to losses in France which can be carried forward indefinitely.
We evaluate deferred tax assets each period for recoverability. We record a valuation allowance for assets that do not meet the threshold of “more likely than not” to be realized in the future. To make that determination, we evaluate the likelihood of realization based on the weight of all positive and negative evidence available. As a result of the Closing Agreement, we received in 2018, we determined at that time that our remaining California research and development credit carryforwards (“CA R&D Credit”) no longer met the threshold of more likely than not to be realized in the future. As such, consistent with our position at December 31, 2018, we have established a full valuation allowance against our CA R&D Credit. For the year ended December 31, 2019, the valuation allowance related to our CA R&D Credit is $71 million. We will reassess this determination quarterly and record a tax benefit if and when future evidence allows for a partial or full release of this valuation allowance.
As of December 31, 2017, we no longer consider the available cash balances related to undistributed earnings held outside of the U.S. by our foreign subsidiaries to be indefinitely reinvested.

,                                                | As of December 31, |
------------------------------------------------ | ------------------ | -----
                                                 | 2019               | 2018
Deferred tax assets:                             |                    |
Allowance for sales returns and price protection | $19                | $25
Accrued expenses                                 | 28                 | 26
Deferred revenue                                 | 119                | 136
Tax attributes carryforwards                     | 93                 | 81
Share-based compensation                         | 54                 | 69
Intangibles                                      | 1,289              | 43
U.S. deferred taxes on foreign earnings          | —                  | 318
Capitalized software development expenses        | 67                 | —
Other                                            | 109                | 28
Deferred tax assets                              | 1,778              | 726
Valuation allowance                              | (181)              | (61)
Deferred tax assets, net of valuation allowance  | 1,597              | 665
Deferred tax liabilities:                        |                    |
Intangibles                                      | (142)              | (140)
Capitalized software development expenses        | —                  | (57)
U.S. deferred taxes on foreign earnings          | (594)              | —
Other                                            | (73)               | (26)
Deferred tax liabilities                         | (809)              | (223)
Net deferred tax assets                          | $788               | $442


Greenhouse gas emissions
Spirent is committed to acting to combat climate change and reporting its progress. Our total Scope 1 and 2 emissions dropped by 6.14 per cent from 2018, and our emissions per $ million of revenue were down by 10.9 per cent. We have reduced our total emissions by 29 per cent since our 2014 baseline.
The Group responded to the Carbon Disclosure Project in 2019, completing the Climate Change and Supply Chain questionnaires. In 2019 we achieved a Climate Change rating of B (management) (2018 C) and a Supplier Engagement rating of B (management) (2018 B). The average for our sector is C in both categories.

                                                                     | 2019           | 2018
-------------------------------------------------------------------- | -------------- | --------------
                                                                     | Tonnes of CO2e | Tonnes of CO2e
Emissions from:                                                      |                |
Combustion of fuel and operation of facilities (Scope 1)             | 144.7          | 137.2
Electricity, heat, steam and cooling purchased for own use (Scope 2) | 4,641.0        | 4,950.4
Total emissions                                                      | 4,785.7        | 5,087.6
Emissions intensity metrics:                                         |                |
Normalised per FTE employee                                          | 3.46           | 3.57
Normalised per square metre of gross internal area of our facilities | 0.114          | 0.125
Normalised per $ million of revenues                                 | 9.50           | 10.67


Cash, Cash Equivalents and Restricted Cash
As of December 31, 2019, the Company had $259.1 million of cash and cash equivalents. Cash and cash equivalents include liquid investments, primarily money market funds, with maturities of less than 90 days at the time of purchase. Management determines the appropriate classification of its investments at the time of purchase and at each balance sheet date.
As of December 31, 2019 and December 31, 2018, the Company had restricted cash of $0.3 million, representing the amount pledged as collateral to the issuer of a standby letter of credit (the “LC”). The LC, which expires in August 2021, has been provided as a guaranty to the lessor of our corporate offices.
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the consolidated statement of cash flows (in thousands):

                                                                                | December 31, |
------------------------------------------------------------------------------- | ------------ | --------
                                                                                | 2019         | 2018
Cash and cash equivalents                                                       | $259,067     | $256,947
Restricted cash included in other assets                                        | 304          | 304
Cash, cash equivalents and restricted cash shown in the statement of cash flows | $259,371     | $257,251


KEMET CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
A summary of the expenses aggregated on the Consolidated Statements of Operations line item “Restructuring charges” in the fiscal years ended March 31, 2019, 2018 and 2017, is as follows (amounts in thousands):
Fiscal Year Ended March 31, 2019
The Company incurred $8.8 million in restructuring charges in the fiscal year ended March 31, 2019, including $2.8 million in personnel reduction costs and $6.0 million in relocation and exit costs. The personnel reduction costs of $2.8 million were primarily due to $0.9 million in costs related to headcount reductions in the TOKIN legacy group across various internal and operational functions, $0.3 million in severance charges related to personnel reductions in the Film and Electrolytic reportable segment resulting from a reorganization of the segment's management structure, and $1.6 million in costs related to reorganization in the Solid Capacitors reportable segment due to a permanent structural change driven by a decline of MnO2 products. The relocation and exit costs of $6.0 million were primarily due to $3.4 million in costs related to the Company's relocation of its tantalum powder equipment from Carson City, Nevada to its plant in Matamoros, Mexico and $2.3 million in costs related to the relocation of axial electrolytic production equipment from Granna, Sweden to its plant in Evora, Portugal.
Fiscal Year Ended March 31, 2018
The Company incurred $14.8 million in restructuring charges in the fiscal year ended March 31, 2018, including $12.6 million related to personnel reduction costs and $2.3 million of relocation and exit costs. The personnel reduction costs of $12.6 million were due to $5.2 million related to a voluntary reduction in force in the Film and Electrolytic reportable segment's Italian operations; $4.4 million related to a headcount reduction in the TOKIN legacy group across various internal and operational functions; $2.7 million in severance charges across various overhead functions in the Simpsonville, South Carolina office as these functions were relocated to the Company's new corporate headquarters in Fort Lauderdale, Florida; and $0.2 million in headcount reductions related to a European sales reorganization. The relocation and exit costs of $2.3 million included $0.9 million in lease termination penalties related to the relocation of global marketing, finance and accounting, and information technology functions to the Company's Fort Lauderdale office, $0.8 million in expenses related to the relocation of the K-Salt operations to the existing Matamoros, Mexico plant, $0.4 million in exit costs related to the shut-down of operations for KFM, and $0.1 million related to the transfer of certain Tantalum production from Simpsonville, South Carolina to Victoria, Mexico.
Fiscal Year Ended March 31, 2017
The Company incurred $5.4 million in restructuring charges in the fiscal year ended March 31, 2017, including $2.2 million related to personnel reduction costs and $3.2 million of relocation and exit costs. The personnel reduction costs of $2.2 million corresponded with the following: $0.3 million related to the consolidation of certain Solid Capacitor manufacturing in Matamoros, Mexico; $0.4 million for headcount reductions related to the shut-down of operations for KFM; $0.3 million related to headcount reductions in Europe (primarily Italy and Landsberg, Germany) corresponding with the relocation of certain production lines and laboratories to lower cost regions; $0.3 million for overhead reductions in Sweden; $0.3 million in U.S. headcount reductions related to the relocation of global marketing functions to the Company’s Fort Lauderdale, Florida office; $0.3 million in headcount reductions related to the transfer of certain Tantalum production from Simpsonville, South Carolina to Victoria, Mexico; $0.2 million in overhead reductions for the relocation of research and development operations from Weymouth, England to Evora, Portugal; and $0.1 million in manufacturing headcount reductions related to the relocation of the K-Salt operations to the existing Matamoros, Mexico plant. The relocation and exit costs of $3.2 million included $1.9 million in expenses related to contract termination costs related to the shut-down of operations for KFM; $0.6 million in expenses related to the relocation of the K-Salt operations to the existing Matamoros, Mexico plant; $0.6 million for transfers of Film and Electrolytic production lines and R&D functions to lower cost regions; and $0.1 million related to the transfer of certain Tantalum production from Simpsonville, South Carolina to Victoria, Mexico.

                          |        | Fiscal Years Ended March 31, |
------------------------- | ------ | ---------------------------- | ------
                          | 2019   | 2018                         | 2017
Personnel reduction costs | $2,823 | $12,587                      | $2,214
Relocation and exit costs | 5,956  | 2,256                        | 3,190
Restructuring charges     | $8,779 | $14,843                      | $5,404


Operating expenses
nm—not meaningful
Research and development expenses
Research and development expenses increased $19.6 million in the year ended March 31, 2019 compared to the year ended March 31, 2018, which was primarily attributable to increases in personnel-related costs of $11.8 million, share-based compensation expense of $3.6 million and information technology and facility costs of $1.6 million.
Research and development expenses for the year ended March 31, 2019 as compared to the year ended March 31, 2018 were positively impacted by approximately $0.5 million primarily as a result of the strengthening of the U.S. dollar relative to the British pound.
Personnel-related cost increased primarily as a result of salaries and benefits associated with increased headcount throughout the year, share-based compensation expense increased primarily as a result of share option grants since the prior year and information technology and facility costs increased primarily as a result of increased headcount.
Sales and marketing expenses
Sales and marketing expenses increased $17.9 million in the year ended March 31, 2019 compared to the year ended March 31, 2018, which was primarily attributable to increases in information technology and facilities costs of $5.3 million, personnel-related costs of $4.0 million, share-based compensation expense of $3.4 million, professional services of $2.7 million, travel and other costs of $1.2 million and marketing costs of $1.1 million.
Sales and marketing expenses for the year ended March 31, 2019 as compared to the year ended March 31, 2018 were positively impacted by approximately $1.5 million primarily as a result of the strengthening of the U.S. dollar relative to the Australian dollar, South African rand and British pound. Information technology and facilities costs and travel and other costs increased primarily as a result of increased headcount.
Personnel-related costs increased primarily as a result of salaries and benefits associated with increased headcount and commissions, partially offset by the impact of adopting ASC 606, which resulted in capitalizing $13.8 million of commissions that would have been expensed under the prior accounting rules. Share-based compensation expense increased primarily as a result of share option grants since the prior year. Professional services costs increased primarily due to increased consulting fees.
General and administrative expenses
General and administrative expenses increased $16.8 million in the year ended March 31, 2019 compared to the year ended March 31, 2018, which was primarily attributable to increases in personnel-related costs of $6.3 million, share-based compensation expense of $5.8 million, information technology and facilities costs of $1.9 million, professional services costs of $1.2 million and litigation-related expenses of $1.0 million. Personnel-related costs increased primarily as a result of salaries and benefits associated with increased headcount.
Share-based compensation expense increased primarily as a result of share option grants since the prior year and to a lesser extent the impact of share option modifications. Information technology and facility costs increased primarily as a result of increased headcount. Professional services costs increased primarily due to acquisition-related expenses.
Restructuring and Impairment of long-lived assets
In the second quarter of fiscal 2019, we recorded a revision to restructuring expense of $0.2 million related to the exit of our Watertown, Massachusetts corporate office space. In the fourth quarter of fiscal 2018, upon the exit of our Watertown, Massachusetts corporate office space, we recorded a restructuring charge of $0.8 million for the remaining non-cancelable rent and estimated operating expenses for the vacated premises, net of sublease rentals and we recorded a non-cash impairment charge of $1.7 million primarily related to leasehold improvements.

                                    | Year ended March 31, |          | Period-to-period change |
----------------------------------- | -------------------- | -------- | ----------------------- | --------
                                    | 2019                 | 2018     | Amount                  | % Change
                                    |                      |          | (dollars in thousands)  |
Operating expenses:                 |                      |          |                         |
Research and development            | $57,939              | $38,373  | $19,566                 | 51%
Sales and marketing                 | 139,194              | 121,246  | 17,948                  | 15%
General and administrative          | 53,759               | 36,989   | 16,770                  | 45%
Impairment of long-lived assets     | —                    | 1,712    | (1,712)                 | nm
Restructuring                       | (170)                | 832      | (1,002)                 | nm
Total operating expenses            | $250,722             | $199,152 | $51,570                 | 26%


Cash flows
The following table summarizes our cash flow activities in fiscal 2019 compared to fiscal 2018.
Our cash flow activities in fiscal 2018 compared to fiscal 2017 were discussed under Liquidity, Capital Resources and Cash Requirement in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended March 30, 2018.

                                                 | Fiscal Year |
------------------------------------------------ | ----------- | --------
(In millions)                                    | 2019        | 2018
Net cash provided by (used in):                  |             |
Operating activities                             | $1,495      | $957
Investing activities                             | $(241)      | $(21)
Financing activities                             | $(1,209)    | $(3,475)
Increase (decrease) in cash and cash equivalents | $17         | $(2,473)


Item 6. Selected Financial Data
The following table sets forth selected consolidated financial data for each of the fiscal years ended June 30, 2019, 2018, 2017, 2016 and 2015 derived from the Company’s audited financial statements (in thousands, except per share amounts). The consolidated financial data as of and for the years ended June 30, 2015 are derived from the audited financial statements which have not been adjusted for the adoption of Accounting Standards update 2014- 09, Revenue from Contracts with Customers (Topic 606). These tables should be reviewed in conjunction with the Consolidated Financial Statements in Item 8 and related Notes, as well as Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Historical results may not be indicative of future results.
(1) Operating income (loss) include the following operating expenses (in thousands):
(2)  The significant increase in net revenues during the year ended June 30, 2018 was primarily due to the acquisitions of the Campus Fabric and Data Center Businesses.

                                                                |           | Year Ended June 30, |          |           |
--------------------------------------------------------------- | --------- | ------------------- | -------- | --------- | ---------
                                                                | 2019      | 2018                | 2017     | 2016      | 2015
Consolidated Statements of Operations Data:                     |           |                     |          |           |
Net revenues                                                    | $995,789  | $983,142 (2)        | $607,084 | $519,834  | $552,940
Operating income (loss) (1)                                     | $(14,726) | $(38,210)           | $6,040   | $(30,029) | $(62,994)
Net loss                                                        | $(25,853) | $(46,792)           | $(1,744) | $(36,363) | $(71,643)
Net loss per share – basic                                      | $(0.22)   | $(0.41)             | $(0.02)  | $(0.35)   | $(0.72)
Net loss per share – diluted                                    | $(0.22)   | $(0.41)             | $(0.02)  | $(0.35)   | $(0.72)
Shares used in per share calculation – basic                    | 117,954   | 114,221             | 108,273  | 103,074   | 99,000
Shares used in per share calculation – diluted                  | 117,954   | 114,221             | 108,273  | 103,074   | 99,000


The following table summarizes the Qdoba results for each period (in thousands, except per share data):
Selling, general and administrative expenses presented in the table above include corporate costs directly in support of Qdoba operations. All other corporate costs were classified in results of continuing operations. Our credit facility required us to make a mandatory prepayment (“Qdoba Prepayment”) on our term loan upon the closing of the Qdoba Sale, which was $260.0 million. Interest expense associated with our credit facility was allocated to discontinued operations based on our estimate of the mandatory prepayment that was made upon closing of the Qdoba Sale.
Lease guarantees — While all operating leases held in the name of Qdoba were part of the Qdoba Sale, some of the leases remain guaranteed by the Company pursuant to one or more written guarantees (the “Guarantees”). In the event Qdoba fails to meet its payment and performance obligations under such guaranteed leases, we may be required to make rent and other payments to the landlord under the requirements of the Guarantees. Should we, as guarantor of the lease obligations, be required to make any lease payments due for the remaining term of the subject lease(s) subsequent to March 21, 2018, the maximum amount we may be required to pay is approximately$32.1 million as ofSeptember 29, 2019. The lease terms extend for a maximum of approximately16 more years as of September 29, 2019, and we would remain a guarantor of the leases in the event the leases are extended for any established renewal periods. In the event that we are obligated to make payments under the Guarantees, we believe the exposure is limited due to contractual protections and recourse available in the lease agreements, as well as the Qdoba Purchase Agreement, including a requirement of the landlord to mitigate damages by re-letting the properties in default, and indemnity from the Buyer. Qdoba continues to meet its obligations under these leases and there have not been any events that would indicate that Qdoba will not continue to meet the obligations of the leases. As such, we have not recorded a liability for the Guarantees as of September 29, 2019 as the likelihood of Qdoba defaulting on the assigned agreements was deemed to be less than probable.

                                                                           | 2019   | 2018      | 2017
-------------------------------------------------------------------------- | ------ | --------- | ---------
Company restaurant sales                                                   | $—     | $192,620  | $436,558
Franchise revenues                                                         | —      | 9,337     | 20,065
Company restaurant costs (excluding depreciation and amortization)         | —      | (166,122) | (357,370)
Franchise costs (excluding depreciation and amortization)                  | —      | (2,338)   | (4,993)
Selling, general and administrative expenses                               | 174    | (19,286)  | (36,706)
Depreciation and amortization                                              | —      | (5,012)   | (21,500)
Impairment and other charges, net                                          | (262)  | (2,305)   | (15,061)
Interest expense, net                                                      | —      | (4,787)   | (9,025)
Operating (loss) earnings from discontinued operations before income taxes | (88)   | 2,107     | 11,968
(Loss) gain on Qdoba Sale                                                  | (85)   | 30,717    | —
(Loss) earnings from discontinued operations before income taxes           | (173)  | 32,824    | 11,968
Income tax benefit (expense)                                               | 2,863  | (15,726)  | (4,518)
Earnings from discontinued operations, net of income taxes                 | $2,690 | $17,098   | $7,450
Net earnings per share from discontinued operations:                       |        |           |
Basic                                                                      | $0.10  | $0.60     | $0.24
Diluted                                                                    | $0.10  | $0.59     | $0.24


Billings
Billings represent the value of products and services invoiced to customers after receiving a purchase order from the customer and delivering products and services to them, or for which there is no right to a refund. Billings do not equate to statutory revenue.

                                      | Year-ended 31 March 2019 | Year-ended 31 March 2018 Restated See note 2
------------------------------------- | ------------------------ | --------------------------------------------
                                      | $M                       | $M
Revenue                               | 710.6                    | 639.0
Net deferral of revenue (see note 23) | 49.7                     | 129.6
Billings                              | 760.3                    | 768.6
Currency revaluation                  | 25.9                     | 18.7
Constant currency billings            | 786.2                    | 787.3


5. Operating Expenses
Notes: (1) Includes equipment costs related to ICT services.
(2) Includes supplies and services, as well as rentals of properties and mobile base stations.

                                     | Group    |
------------------------------------ | -------- | --------
                                     | 2019     | 2018
                                     | S$ Mil   | S$ Mil
Cost of equipment sold (1)           | 3,106.1  | 2,696.7
Other cost of sales                  | 2,767.1  | 2,499.2
Staff costs                          | 2,597.3  | 2,760.1
Selling and administrative costs (2) | 2,472.6  | 2,536.6
Traffic expenses                     | 1,573.4  | 1,615.8
Repair and maintenance               | 388.0    | 367.9
                                     | 12,904.5 | 12,476.3


5. Remuneration continued
Remuneration at a glance 2019
How we performed
The above figures exclude the acquisition of Thermocoax.

Remuneration key performance indicator  | 2019 actual | 2019 threshold | 2019 target | 2019 maximum | Remuneration measure
--------------------------------------- | ----------- | -------------- | ----------- | ------------ | ----------------------
Group operating profit (£m)             | 277.3       | 256.7          | 270.3       | 283.8        | Annual Incentive Plan
Group cash generation (£m)              | 296.4       | 270.7          | 285.0       | 299.2        | Annual Incentive Plan
Group ROCE (%)                          | 54.5        | 50.1           | 52.7        | 55.3         | Annual Incentive Plan
2017-2019 EPS (%)                       | 57.5        | 27.6           | N/A         | 52.3         | Performance Share Plan
2017-2019 relative TSR (percentile TSR) | 94th        | 50th           | N/A         | 75th         | Performance Share Plan


Note 8 Income taxes
The following table shows the significant components of income taxes deducted from net earnings.

FOR THE YEAR ENDED DECEMBER 31                                                   | 2019    | 2018
-------------------------------------------------------------------------------- | ------- | -----
Current taxes                                                                    |         |
Current taxes                                                                    | (761)   | (775)
Uncertain tax positions                                                          | 6       | 8
Change in estimate relating to prior periods                                     | 22      | 12
Deferred taxes                                                                   |         |
Deferred taxes relating to the origination and reversal of temporary differences | (322)   | (352)
Change in estimate relating to prior periods                                     | (8)     | 8
Recognition and utilization of loss carryforwards                                | (106)   | 44
Effect of change in provincial corporate tax rate                                | 27      | –
Uncertain tax positions                                                          | 9       | 60
Total income taxes                                                               | (1,133) | (995)


Other intangible assets at fiscal year ends 2019 and 2018 consisted of the following:
Goodwill, trademarks and tradenames are considered to have indefinite useful lives and therefore no amortization has been taken on these assets. The Company’s retail reporting unit recorded intangible asset (trademarks and tradenames) impairment charges of approximately $2.9 million during fiscal 2019 and goodwill impairment charges of approximately $1.9 million during fiscal 2018 when it was determined that the carrying values of these assets exceeded their fair values. These impairment charges arose from a range of considerations including, but not limited to, heightened competition in the industry, retail sector market conditions, and earning shortfalls which impacted the Company’s projections of future cash flows to be generated. These impairment charges were recorded in the Company’s consolidated statement of operations as a component of operating income.
Goodwill recorded on the Company’s consolidated balance sheet represents amounts allocated to its wholesale reporting unit which totaled $4.4 million at both September 2019 and September 2018. The Company determined that the estimated fair value of its wholesale reporting unit exceeded its carrying value at both September 2019 and September 2018.

                                                                                | September 2019 | September 2018
------------------------------------------------------------------------------------------------------------------------------------------------- | -------------- | --------------
Trademarks and tradenames (Retail Segment)                                                                                | $500,000       | $3,373,269
ustomer relationships (Wholesale Segment) (less accumulated amortization of approximately $2.1 million at both September 2019 and September 2018) | —              | 41,667
                                                                                | $  500,000     | $3,414,936


Share Repurchase
In September 2015, our Board of Directors authorized a program to repurchase up to $150.0 million of our common stock over a thirty-month period. In November 2017, our Board of Directors approved an extension of the share repurchase program to December 2019 from its original maturity of March 2018. In May 2018, our Board of Directors approved a $50 million increase in its authorization to repurchase shares of our common stock under this same program.
On December 18, 2019, the Board of Directors authorized to remove the expiration date to the Company’s share repurchase program and increase the authorized amount by $25.1 million. As of December 31, 2019, the Company is authorized to repurchase shares of the Company’s common stock of up to a total of $50.0 million.
ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
In order to execute the repurchase of shares of our common stock, the Company periodically enters into stock repurchase agreements. During the years ended December 31, 2019, 2018 and 2017 the Company has repurchased the following shares of common stock:

                                         |      | Years Ended December 31, |
---------------------------------------- | ---- | ------------------------ | -------
(in thousands, except per share amounts) | 2019 | 2018                     | 2017
Amount paid to repurchase shares         | $  — | $95,125                  | $29,993
Number of shares repurchased             | —    | 1,696                    | 422
Average repurchase price per share       | $  — | $56.07                   | $71.07


OPERATING EXPENSES
(1) Fiscal 2019 average foreign exchange rate used for translation was 1.3255 USD/CDN.
(2) Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued
operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections.
(3) Fiscal 2019 actuals are translated at the average foreign exchange rate of fiscal 2018 which was 1.2773 USD/CDN.
Fiscal 2019 operating expenses increased by 7.3% (5.4% in constant currency) mainly from:
• growth in the American broadband services segment mainly due to the impact of the MetroCast acquisition which was included in operating expenses for only an eight-month period in the prior year combined with higher programming costs, additional headcount to support growth, higher marketing initiatives to drive primary service units growth and the FiberLight acquisition; and
• additional costs in Inter-segment eliminations and other resulting from the timing of corporate projects and initiatives; partly offset by
• lower operating expenses in the Canadian broadband services segment mainly attributable to lower programming costs resulting from a lower level of primary service units and lower compensation expenses resulting from an operational optimization program implemented in the first half of fiscal 2019, partly offset by higher marketing initiatives, additional headcount costs in the first quarter of fiscal 2019 to support the stabilization phase of the new customer management system as well as retroactive costs related to higher rates than expected established by the Copyright Board of Canada.
For further details on the Corporation’s operating expenses, please refer to the "Segmented operating and financial results" section.

Years 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                   | 606,286   | 618,886   | (2.0)  | (2.2)                           | 1,102
American broadband services                   | 571,208   | 478,172   | 19.5   | 15.2                            | 20,522
Inter-segment eliminations and other          | 26,486    | 24,567    | 7.8    | 7.8                             | 12
                                              | 1,203,980 | 1,121,625 | 7.3    | 5.4                             | 21,636


NOTE L – INCOME TAXES
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, the following that impact the Company: (1) reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent; (2) eliminating the corporate alternative minimum tax; (3) creating a new limitation on deductible interest expense; (4) limiting the deductibility of certain executive compensation; and (5) limiting certain other deductions.
The Company follows ASC 740-10 “Income Taxes” which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.
A reconciliation of tax expense computed at the statutory federal tax rate on loss from operations before income taxes to the actual income tax (benefit) /expense is as follows:

                                                      | 2019       | 2018
----------------------------------------------------- | ---------- | ----------
Tax benefit computed at the statutory rate            | $(427,244) | $(631,497)
State taxes                                           | 6,525      | 6,874
Book expenses not deductible for tax purposes         | 2,980      | 2,882
Rate Change                                           | 45,656     | –
Other                                                 | 2,517      | (27,286)
                                                      | (369,566)  | (649,027)
Change in valuation allowance for deferred tax assets | 269,203    | 658,650
Income tax (benefit) expense                          | $(100,363) | $9,623


The employee pension plan mandated by the Labor Standards Act of the R.O.C. is a defined benefit plan. The pension benefits are disbursed based on the units of service years and average monthly salary prior to retirement according to the Labor Standards Act. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year and the total units will not exceed 45 units.
The Company contributes an amount equivalent to 2% of the employees’ total salaries and wages on a monthly basis to the pension fund deposited with the Bank of Taiwan under the name of a pension fund supervisory committee. The pension fund is managed by the government’s designated authorities and therefore is not included in the Company’s consolidated financial statements. For the years ended December 31, 2017, 2018 and 2019, total pension expenses of NT$80 million, NT$69 million and NT$59 million, respectively, were recognized by the Company.
Movements in present value of defined benefit obligation during the year:

                                                                | For the years ended December 31, |
--------------------------------------------------------------- | -------------------------------- | ------------------
                                                                | 2018                             | 2019
                                                                | $NT (In Thousands)               | $NT (In Thousands)
Defined benefit obligation at beginning of year                 | $(5,671,058)                     | $(5,620,509)
Items recognized as profit or loss:                             |                                  |
Service cost                                                    | (24,477)                         | (21,043)
Interest cost                                                   | (61,247)                         | (51,146)
Subtotal                                                        | (85,724)                         | (72,189)
Remeasurements recognized in other comprehensive income (loss): |                                  |
Arising from changes in financial assumptions                   | (91,350)                         | (114,976)
Experience adjustments                                          | (5,907)                          | 180,095
Subtotal                                                        | (97,257)                         | 65,119
Benefits paid                                                   | 233,530                          | 216,510


Selling, General and Administrative
The increase in selling, general and administrative in fiscal 2019 compared to fiscal 2018 was primarily due to higher variable costs on increased sales volumes, primarily related to increases in headcount costs and employee incentive compensation, as well as additional costs from the FRT acquisition, offset partially by a decrease in the amortization of intangible assets.

                                    |                   | Fiscal Year Ended      |          |
----------------------------------- | ----------------- | ---------------------- | -------- | --------
                                    | December 28, 2019 | December 29, 2018      | $ Change | % Change
                                    |                   | (Dollars in thousands) |          |
Selling, general and administrative | $106,335          | $99,254                | $7,081   | 7.1 %
% of revenues                       | 18.0 %            | 18.7 %                 |          |
                                    |                   | Fiscal Year Ended      |          |
                                    | December 29, 2018 | December 30, 2017      | $ Change | % Change
                                    |                   | (Dollars in thousands) |          |
Selling, general and administrative | $99,254           | $95,489                | $3,765   | 3.9 %
% of revenues                       | 18.7 %            | 17.4 %                 |          |


* 2019 results were impacted by Red Hat purchase accounting and acquisition-related activity.
Total expense and other (income) increased 13.7 percent in the fourth quarter with an expense-to-revenue ratio of 32.6 percent compared to 28.7 percent in the fourth quarter of 2018. The year-to-year increase was a result of higher spending (15 points) driven by Red Hat (15 points) and higher acquisitionrelated charges and amortization of acquired intangible assets associated with the Red Hat transaction (4 points), partially offset by higher divestiture gains (3 points) and lower non-operating retirement-related costs (3 points).
Total operating (non-GAAP) expense and other income increased 14.7 percent year to year primarily driven by the higher spending, partially offset by the divestiture gains, as described above.

($ in millions)                                 |        |        |
----------------------------------------------- | ------ | ------ | ----------------------------------
For the fourth quarter:                         | 2019   | 2018   | Yr.-to-Yr. Percent/ Margin Change*
Total consolidated expense and other (income)   | $7,107 | $6,253 | 13.7%
Non-operating adjustments                       |        |        |
Amortization of acquired intangible assets      | (294)  | (106)  | 176.0
Acquisition-related charges                     | (27)   | (13)   | 104.7
Non-operating retirement related (costs)/income | (196)  | (387)  | (49.4)
Operating (non-GAAP) expense and other (income) | $6,591 | $5,746 | 14.7%
Total consolidated expense-to-revenue ratio     | 32.6%  | 28.7%  | 3.9pts
Operating (non-GAAP) expense-to-revenue ratio   | 30.3%  | 26.4%  | 3.9pts


Upon adoption, the Company recorded a cumulative effect adjustment of $139.4 million, net of tax adjustment of $21.0 million, which increased the June 25, 2018 opening retained earnings balance on the Condensed Consolidated Balance Sheet, primarily as a result of changes in the timing of recognition of system sales. Under ASC 606, the Company recognizes revenue from sales of systems when the Company determines that control has passed to the customer which is generally (1) for products that have been demonstrated to meet product specifications prior to shipment upon shipment or delivery; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized upon completion of installation and receipt of customer acceptance; (3) for transactions where legal title does not pass upon shipment or delivery and the Company does not have a right to payment, revenue is recognized when legal title passes to the customer and the Company has a right to payment, which is generally at customer acceptance.
The impact of adoption of ASC 606 on the Company’s Consolidated Statement of Operations and Consolidated Balance Sheet was as follows:
Except as disclosed above, the adoption of ASC 606 did not have a significant impact on the Company’s Consolidated Statement of Operations for the year ended June 30, 2019.
In January 2016, the FASB released ASU 2016-01, “Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Financial Liabilities.” The FASB issued a subsequent amendment to the initial guidance in February 2018 within ASU 2018-03. These amendments change the accounting for and financial statement presentation of equity investments, other than those accounted for under the equity method of accounting or those that result in consolidation of the investee. The amendments provide clarity on the measurement methodology to be used for the required disclosure of fair value of financial instruments measured at amortized cost on the balance sheet and clarifies that an entity should evaluate the need for a valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets, among other changes. The Company’s adoption of this standard in the first quarter of fiscal year 2019 did not have a material impact on its Consolidated Financial Statements.
In August 2016, the FASB released ASU 2016-15, “Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments.” The amendment provides and clarifies guidance on the classification of certain cash receipts and cash payments in the statement of cash flows to eliminate diversity in practice. The Company adopted the standard update in the first quarter of fiscal year 2019, using a retrospective transition method. The Company’s adoption of this standard did not have a material impact on its Consolidated Financial Statements.
In October 2016, the FASB released ASU 2016-16, “Income Tax – Intra-Entity Transfers of Assets Other than Inventory.” This standard update improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The Company adopted this standard in the first quarter of fiscal year 2019 using a modified-retrospective approach through a cumulative-effect adjustment directly to retained earnings. The Company’s adoption of this standard resulted in a $0.4 million decrease to retained earnings and a corresponding $0.4 million offset to other assets on its Consolidated Financial Statements.
In November 2016, the FASB released ASU 2016-18, “Statement of Cash Flows – Restricted Cash.” This standard update requires that restricted cash and restricted cash equivalents be included in cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company adopted this standard in the first quarter of fiscal year 2019, using a retrospective transition method to each period presented. The adoption of this standard did not have a material impact on its Consolidated Financial Statements.
In February 2018, the FASB released ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This standard update addresses a specific consequence of the Tax Cuts and Jobs Act (“U.S. Tax Reform”) and allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from U.S. tax reform. Consequently, the update eliminates the stranded tax effects that were created as a result of the historical U.S. federal corporate income tax rate to the newly enacted U.S. federal corporate income tax rate. The Company adopted this standard in the first quarter of fiscal year 2019 using a modified-retrospective approach through a cumulative-effect adjustment directly to retained earnings. The adoption of this standard resulted in a $2.2 million increase to retained earnings, with a corresponding $2.2 million decrease to other comprehensive income.
In August 2018, the Securities and Exchange Commission (“SEC”) adopted amendments to eliminate, integrate, update or modify certain of its disclosure requirements. The amendments are part of the SEC’s efforts to improve disclosure effectiveness and were focused on eliminating disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded. The Company adopted these amendments in the first quarter of fiscal Year 2019. The adoption of these amendments resulted in minor changes within its Consolidated Financial Statements.

                   |             | Year Ended                 |
------------------ | ----------- | -------------------------- | -------------------------------
                   |             | June 30, 2019              |
                   | As Reported | Without Adoption of ASC606 | Effect of Change Higher/(Lower)
                   |             | (in thousands)             |
Revenue            | $9,653,559  | $9,049,790                 | $603,769
Cost of goods sold | $5,295,100  | $5,016,679                 | $278,421


CTS CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Earnings (in thousands)
The accompanying notes are an integral part of the consolidated financial statements.

                                                        |         | Years Ended December 31, |
------------------------------------------------------- | ------- | ------------------------ | -------
                                                        | 2019    | 2018                     | 2017
Net earnings                                            | $36,146 | $46,532                  | $14,448
Other comprehensive earnings (loss):                    |         |                          |
Changes in fair market value of derivatives, net of tax | (509)   | 795                      | 110
Changes in unrealized pension cost, net of tax          | 6,439   | (1,830)                  | 13,687
Cumulative translation adjustment, net of tax           | 83      | (311)                    | 437
Other comprehensive earnings (loss)                     | $6,013  | $(1,346)                 | $14,234
Comprehensive earnings                                  | $42,159 | $45,186                  | $28,682