NOTE 26 – EARNINGS PER SHARE AND DIVIDEND PER SHARE
When calculating diluted earnings per share for 2018 and 2017, RSUs have been omitted as they are out-of-the-money and thus anti-dilutive, but the RSUs may potentially dilute earnings per share in the future. Please refer to note 3 for information on the RSU share options.

                                                                                | 2019  | 2018  | 2017
------------------------------------------------------------------------------------ | ----- | ----- | ----
EARNINGS PER SHARE                                                                   |       |       |
Net profit/(loss) for the year (USDm)                                                | 166.0 | -34.8 | 2.4
Million shares                                                                       |       |       |
Weighted average number of shares                                                    | 74.3  | 73.4  | 62.3
Weighted average number of treasury shares                                           | -0.3  | -0.3  | -0.3
Weighted average number of shares outstanding                                        | 74.0  | 73.1  | 62.0
Dilutive effect of outstanding share options                                         | 0.0   | -     | -
Weighted average number of shares outstanding incl. dilutive effect of share options | 74.0  | 73.1  | 62.0
Basic earnings/(loss) per share (USD)                                                | 2.24  | -0.48 | 0.04
Diluted earnings/(loss) per share (USD)                                              | 2.24  | -0.48 | 0.04


Operating Expenses
The following table highlights our operating expenses and operating loss as a percentage of net revenues:

                                                                  |               | Year Ended   |
----------------------------------------------------------------- | ------------- | ------------ | -------------
                                                                  | June 30,
2019 | June 30,2018 | June 30,
2017
Research and development                                          | 21.1%         | 18.7%        | 15.4%
Sales and marketing                                               | 28.7%         | 27.2%        | 26.8%
General and administrative                                        | 5.6%          | 5.2%         | 6.2%
Acquisition and integration costs, net of bargain purchase gain   | 0.3%          | 5.5%         | 2.2%
Restructuring charges, net of reversals                           | 0.5%          | 0.8%         | 1.5%
Amortization of intangibles                                       | 0.6%          | 0.9%         | 1.4%
Total operating expenses                                          | 56.8%         | 58.3%        | 53.5%
Operating (loss) income                                           | (1.5)%        | (3.9)%       | 1.0%


7 Employee benefits
Pension plans
The Company is accounting for pension costs in accordance with International Accounting Standard 19.
The disclosures shown here are in respect of the Company’s defined benefit obligations. Other plans operated by the Company were defined contribution plans.
The total expense relating to the Company’s defined contribution pension plans in the current year was £0.7m (2018: £0.6m).
At 31st December 2019 the post-retirement mortality assumptions in respect of the Company Defined Benefit Scheme follows 85%/96% (male/female) of SAPS S2, CMI 2017 projections with a long term trend of 1.25% p.a. At 31st December 2018 the postretirement mortality assumptions in respect of the Company Defined Benefit Scheme follows 85% of SAPS S2 Light base table for males and 96% of SAPS S2 base table for females with CMI Core Projection Model 2016 improvements commencing in 2007, subject to a 1.25% p.a. long-term trend. These assumptions are regularly reviewed in light of scheme-specific experience and more widely available statistics.
The financial assumptions used at 31st December were:
The assumptions used by the actuary are the best estimates chosen from a range of possible actuarial assumptions, which due to the timescale covered, may not necessarily be borne out in practice.

                             | Weighted-average assumptions used to define the benefit obligations |
---------------------------- | ------------------------------------------------------------------- | ----
                             | 2019                                                                | 2018
                             | %                                                                   | %
Rate of increase in salaries | 2.4                                                                 | 2.7
Rate of increase in pensions | 2.8                                                                 | 2.9
Rate of price inflation      | 2.9                                                                 | 3.2
Discount rate                | 2.1                                                                 | 2.7


Contract balances
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
Accrued income relates to the Group’s rights to consideration for services provided but not invoiced at the reporting date. Accrued income is transferred to receivables when invoiced.
Deferred income relates to advanced consideration received for which revenue is recognised as or when services are provided. Included within deferred income is £11.2m (2018: £nil) relating to consideration received from Auto Trader Auto Stock Limited (which forms part of the Group’s joint venture) for the provision of data services (note 16). Revenue relating to this service is recognised on a straight-line basis over a period of 20 years.

                                                               | 2019   | 2018
-------------------------------------------------------------- | ------ | -----
                                                               | £m     | £m
Receivables, which are included in trade and other receivables | 27.0   | 28.8
Accrued income                                                 | 28.0   | 26.7
Deferred income                                                | (13.2) | (1.8)


Options outstanding that are exercisable and that have vested and are expected to vest as of January 31, 2020 were as follows (outstanding options in thousands, aggregate intrinsic value in in millions):
(1) The aggregate intrinsic values represent the total pre-tax intrinsic values based on VMware's closing stock price of $148.06 as of January 31, 2020, which would have been received by the option holders had all in-the-money options been exercised as of that date.
The total fair value of VMware stock options that vested during the years ended January 31, 2020, February 1, 2019 and February 2, 2018 was $64 million, $35 million and $32 million, respectively. Total fair value of Pivotal stock options that vested during the years ended January 31, 2020, February 1, 2019 and February 2, 2018 was $27 million, $41 million and $23 million, respectively.
The VMware stock options exercised during the years ended January 31, 2020, February 1, 2019 and February 2, 2018 had a pre-tax intrinsic value of $103 million, $56 million, and $62 million, respectively. The Pivotal options exercised during the years ended January 31, 2020 and February 1, 2019 had a pre-tax intrinsic value of $278 million and $97 million, respectively, and was not material during the year ended February 2, 2018. The pre-tax intrinsic value of Pivotal options exercised during the year ended January 31, 2020 includes vested options that were settled in cash as part of the Pivotal acquisition.

                            |                     | VMware Stock Options |                                                         |
--------------------------- | ------------------- | -------------------- | ------------------------------------------------------- | ----------------------------
                            | Outstanding Options | Exercise Price       | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value(1)
Exercisable                 | 945                 | $47.24               | 3.81                                                    | $95
Vested and expected to vest | 2,589               | 56.13                | 6.41                                                    | 238


EBITDA: TORM defines EBITDA as earnings before financial income and expenses, depreciation, impairment, amortization and taxes. The computation of EBITDA refers to financial income and expenses which the Company deems to be equivalent to “interest” for purposes of presenting EBITDA. Financial expenses consist of interest on borrowings, losses on foreign exchange transactions and bank charges. Financial income consists of interest income and gains on foreign exchange transactions.
EBITDA is used as a supplemental financial measure by Management and external users of financial statements, such as lenders, to assess TORM's operating performance as well as compliance with the financial covenants and restrictions contained in the Company's financing agreements. TORM believes that EBITDA assists Management and investors by increasing comparability of the Company's performance from period to period. This increased comparability is achieved by excluding the potentially disparate effects of interest, depreciation, impairment, amortization and taxes. These are items that could be affected by various changing financing methods and capital structure and which may significantly affect profit/(loss) between periods. Including EBITDA as a measure benefits investors in selecting between investment alternatives.
EBITDA excludes some, but not all, items that affect profit/(loss), and these measures may vary among other companies and not be directly comparable. The following table reconciles EBITDA to net profit/ (loss), the most directly comparable IFRS financial measure, for the periods presented:

USDm                                            | 2019   | 2018  | 2017
----------------------------------------------- | ------ | ----- | -----
Reconciliation to net profit/(loss)             |        |       |
Net profit/(loss) for the year                  | 166.0  | -34.8 | 2.4
Tax                                             | 0.8    | 1.6   | 0.8
Financial expenses                              | 41.9   | 39.3  | 40.6
Financial income                                | -2.8   | -3.3  | -4.3
Depreciation                                    | 110.1  | 114.5 | 114.5
Impairment (reversal)/losses on tangible assets | -114.0 | 3.2   | 3.6
EBITDA                                          | 202.0  | 120.5 | 157.6


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)
Credit risk
Credit risk is the risk that a counterparty will fail to discharge its obligations and cause a financial loss and arises from cash and cash equivalents, short-term investments, favorable derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including trade and other receivables, dividends receivable and other amounts due from related parties. The Group is exposed to credit risk in the event of non-performance by any of its counterparties. To limit this risk, the Group currently deals primarily with financial institutions and customers with high credit ratings.
For the year ended December 31, 2019, 70.0% of the Group’s revenue was earned from Shell (December 31, 2018 and December 31, 2017, 74.2% and 92.6%, respectively) and accounts receivable were not collateralized; however, management believes that the credit risk is partially offset by the creditworthiness of the Group’s counterparties. BG Group was acquired by Shell on February 15, 2016. This acquisition does not impact the contractual obligations under the existing charter party agreements. The Group did not experience significant credit losses on its accounts receivable portfolio during the three years ended December 31, 2019. The carrying amount of financial assets recorded in the consolidated financial statements represents the Group’s maximum exposure to credit risk. Management monitors exposure to credit risk, and they believe that there is no substantial credit risk arising from the Group’s counterparties.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.

                                                                | As of December 31, |
--------------------------------------------------------------- | ------------------ | -------
                                                                | 2018               | 2019
Cash and cash equivalents                                       | 342,594            | 263,747
Short-term investments                                          | 25,000             | 4,500
Trade and other receivables                                     | 20,244             | 24,900
Dividends receivable and other amounts due from related parties | 33,395             | 573
Derivative financial instruments                                | 15,188             | 4,001


A reconciliation of the combined Canadian federal and provincial income tax rate with our effective income tax rate is as follows:
In Fiscal 2019, 2018 and 2017, respectively, substantially all the tax rate differential for international jurisdictions was driven by earnings in the United States.
The effective tax rate decreased to a provision of 35.2% for the year ended June 30, 2019, compared to 37.2% for the year ended June 30, 2018. The increase in tax expense of $11.1 million was primarily due to the increase in net income taxed at foreign rates of $10.7 million, an increase of $26.4 million in reserves for unrecognized tax benefits, an increase of $16.1 million arising on the introduction of BEAT in Fiscal 2019, and an increase of $16.3 million relating to the tax impact of internal reorganizations of subsidiaries, partially offset by a the reversal of accruals for undistributed United States earnings of $14.8 million, the Fiscal 2018 impact of United States tax reform of $19.0 million which did not recur in Fiscal 2019, an increase in tax credits for research and development of $9.7 million, an increase of $6.8 million in the release of valuation allowance, a decrease of $5.8 million in the impact of withholding taxes in Fiscal 2019. The remainder of the difference was due to normal course movements and non-material items.
In July 2016, we implemented a reorganization of our subsidiaries worldwide with the view to continuing to enhance operational and administrative efficiencies through further consolidated ownership, management, and development of our intellectual property (IP) in Canada, continuing to reduce the number of entities in our group and working towards our objective of having a single operating legal entity in each jurisdiction. A significant tax benefit of $876.1 million, associated primarily with the recognition of a net deferred tax asset arising from the entry of the IP into Canada, was recognized in the first quarter of Fiscal 2017. For more information relating to this, please refer to our Annual Report on Form 10-K for the year ended June 30, 2017.
As of June 30, 2019, we have approximately $242.3 million of domestic non-capital loss carryforwards. In addition, we have $387.6 million of foreign non-capital loss carryforwards of which $53.8 million have no expiry date. The remainder of the domestic and foreign losses expires between 2020 and 2039. In addition, investment tax credits of $58.6 million will expire between 2020 and 2039.

                                                   |          | Year Ended June 30, |
-------------------------------------------------- | -------- | ------------------- | ----------
                                                   | 2019     | 2018                | 2017
Expected statutory rate                            | 26.5%    | 26.5%               | 26.5%
Expected provision for income taxes                | $116,752 | $102,323            | $66,131
Effect of foreign tax rate differences             | (1,344)  | 2,352               | 8,647
Change in valuation allowance                      | (5,045)  | 1,779               | 520
Amortization of deferred charges                   | —        | 4,242               | 6,298
Effect of permanent differences                    | (577)    | 4,332               | 3,673
Effect of changes in unrecognized tax benefits     | 31,992   | 5,543               | 14,427
Effect of withholding taxes                        | 2,097    | 7,927               | 3,845
Difference in tax filings from provision           | (250)    | 1,321               | (7,836)
Effect of U.S. tax reform                          | —        | 19,037              | —
Effect of tax credits for research and development | (13,550) | (3,875)             | (2,643)
Effect of accrual for undistributed earnings       | (13,112) | (1,154)             | 5,613
Effect of Base Erosion and Anti-Abuse Tax (BEAT)   | 16,030   | —                   | —
Other Items                                        | 5,473    | (1)                 | 1,075
Impact of internal reorganization of subsidiaries  | 16,471   | —                   | (876,114)
                                                   | 154,937  | $143,826            | $(776,364)


IFRS balance sheet items
Our total investment in joint ventures was £524.1 million at 31 December 2019 (which includes investments in joint ventures of £326.6 million and loans to joint ventures £197.5 million), a decrease of £299.8 million from 31 December 2018. The key driver in the year related to the share of loss of joint ventures of £158.9 million, which primarily included underlying earnings of £27.9 million and a property revaluation deficit of £182.9 million, a £200.7 million transfer of intu Puerto Venecia and intu Asturias to held for sale, partially offset by the residual interest in intu Derby of £93.9 million being classified as a joint venture.
We are exposed to foreign exchange movements on our overseas investments. At 31 December 2019 the exposure was 24 per cent of net assets attributable to shareholders, the increase from the 31 December 2018 exposure of 15 per cent being due to the property revaluation deficit in the UK. Adjusted for the disposals in intu Puerto Venecia and intu Asturias, this exposure would be reduced to 15 per cent.
1 A reconciliation from the IFRS consolidated balance sheet to the amounts presented above is provided in the presentation of information on page 159. A further reconciliation of EPRA NAV to IFRS net assets attributable to owners of intu properties plc is provided within EPRA measures on page 169.
2 Other assets and liabilities includes property, plant and equipment, other non-current assets, trade and other receivables, trade and other payables, current tax liabilities, deferred tax liabilities and other payables.
3 Relates primarily to our partner’s 40 per cent stake in intu Metrocentre. The amount is considered to be recoverable in view of the £195.4 million owed to the non-controlling interest (which is included in the Group’s borrowings in note 23).
4 Other adjustments relate to fair value of derivative financial instruments, fair value of convertible bonds, deferred tax on investment and development property, share of joint ventures’ adjusted items and non-controlling interest recoverable balance not recognised in EPRA NAV.
The key drivers in the decrease in IFRS net assets attributable to owners of intu properties plc of £1,907.5 million as well as the decrease in EPRA NAV of £1,969.8 million and EPRA NAV per share of 146 pence in the year are discussed below.
A Investment and development property
Investment and development property has decreased by £2,534.1 million:
—deficit on revaluation of £1,979.7 million (see E above within the income statement section)
—disposals in the year, including the part disposal of intu Derby in July 2019, transfer of intu Puerto Venecia and intu Asturias to assets held for sale (see B below) and sundry asset disposals
—capital expenditure of £129.2 million on projects enhancing the value and appeal of our centres, including £44.5 million on the Primark anchored intu Trafford Centre’s Barton Square extension, £14.5 million on the redevelopment of intu Broadmarsh and £11.2 million on the now completed leisure extension at intu Lakeside
B Joint ventures and other assets classified as held for sale
intu Puerto Venecia and intu Asturias were classified as joint ventures held for sale at 31 December 2019 and recognised at their expected net proceeds.
intu Puerto Venecia
In December 2019 the Group announced the disposal of its joint venture interest in intu Puerto Venecia to Generali Shopping Centre Fund S.C.S. SICAV-SIF and Union Investment Real Estate GMBH for €475.3 million (intu share €237.7 million), an 11 per cent discount to the June 2019 valuation. This is expected to complete in early April and deliver net proceeds to intu of around £95.4 million after repaying asset-level debt, working capital adjustments, fees and taxation.

£m                                                            | Notes | 2019      | 2018      | Change
------------------------------------------------------------- | ----- | --------- | --------- | ---------
Investment and development property                           | A     | 6,721.6   | 9,255.7   | (2,534.1)
Joint ventures and other assets classified as held for sale   | B     | 163.7     | –         | 163.7
Investment in associates                                      | C     | 53.7      | 65.6      | (11.9)
Net external debt                                             | D     | (4,498.4) | (4,867.2) | 368.8
Derivative financial instruments                              | E     | (286.9)   | (284.0)   | (2.9)
Other assets and liabilities2                                 |       | (307.7)   | (342.0)   | 34.3
Net assets                                                    |       | 1,846.0   | 3,828.1   | (1,982.1)
Non-controlling interest3                                     |       | 58.2      | (16.4)    | 74.6
IFRS net assets attributable to owners of intu properties plc |       | 1,904.2   | 3,811.7   | (1,907.5)
Other adjustments4                                            |       | 73.1      | 135.4     | (62.3)
EPRA NAV                                                      |       | 1,977.3   | 3,947.1   | (1,969.8)
EPRA NAV per share (pence)                                    | F     | 147p      | 293p      | (146)p


Restricted Stock Units (RSUs): RSUs represent the right to receive one share of NortonLifeLock common stock for each vested RSU upon the settlement date, subject to continued employment through each vesting date.
(1) Mr. Clark did not receive an RSU award for FY19.
(2) In FY19, Messrs. Taylor and Noviello, as FY18 NEOs, were granted a mix of PRUs and RSUs at 70% and 30%, respectively. All other executives, other than Mr. Clark, received a mix of PRUs and RSUs at 50% and 50%, respectively.

NEO                     | FY19 RSU Award Amount (#)(2) | Grant Date Value ($)
----------------------- | ---------------------------- | --------------------
Gregory S. Clark(1)     | 0                            | 0
Nicholas R. Noviello    | 95,416                       | 2,106,785
Amy L. Cappellanti-Wolf | 78,620                       | 1,683,254
Samir Kapuria           | 238,243                      | 5,100,783
Scott C. Taylor         | 61,339                       | 1,354,365


Adoption of ASC 606
On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, applying the modified retrospective method to all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period.
The impact of adopting the standard primarily related to a change in the timing of revenue recognition for voyage charter contracts. In the past, the Company recognized revenue from voyage charters ratably over the estimated length of each voyage, calculated on a discharge-to-discharge basis.
Under the new standard, the Company recognizes revenue from voyage charters ratably over the estimated length of each voyage, calculated on a load-to-discharge basis. In addition, the adoption of ASC 606 resulted in a corresponding change in the timing of recognition of voyage expenses for voyage charter contracts.
The cumulative effect of the changes made to the Company's consolidated January 1, 2018 balance sheet for the adoption of ASC 606 was as follows:
For the year ended December 31, 2018, revenues increased by $1,418, net income increased by $1,101 and basic and diluted net income per share increased by $0.01 as a result of applying ASC 606.

                      | Balance at December 31, 2017 | Adjustments Due to ASC 606 | Balance at January 1, 2018
--------------------- | ---------------------------- | -------------------------- | --------------------------
Assets                |                              |                            |
Voyage receivables    | $24,209                      | $1,336                     | $25,545
Liabilities           |                              |                            |
Deferred income taxes | 83,671                       | (108)                      | 83,563
Equity                |                              |                            |
Accumulated deficit   | (265,758)                    | (1,228)                    | (266,986)


The determination of which country a particular sale is allocated to is based on the destination of the product shipment. No other individual country accounted for more than 10% of net revenue during these periods. Although a large percentage of the Company’s products is shipped to Asia, and in particular, China, the Company believes that a significant number of the systems designed by customers and incorporating the Company’s semiconductor products are subsequently sold outside Asia to Europe, Middle East, and Africa, or EMEA markets and North American markets.
Long-lived assets, which consists of property and equipment, net, leased right-of-use assets, intangible assets, net, and goodwill, by geographic area are as follows (in thousands):
(1) Amounts do not include leased right-of-use assets in the prior period due to the adoption of ASC 842 under the modified retrospective method with a cumulative effect adjustment to accumulated deficit as of January 1, 2019.

              | As of December 31, |            |          |
------------- | ------------------ | ---------- | -------- | ----------
              | 2019               |            | 2018(1)  |
              | Amount             | % of total | Amount   | % of total
United States | $385,302           | 85%        | $426,321 | 85%
Singapore     | 63,556             | 14%        | 71,945   | 14%
Rest of world | 5,034              | 1%         | 3,368    | 1%
Total         | $453,892           | 100%       | $501,634 | 100%


NOTE 10 – FREIGHT RECEIVABLES
As of 31 December 2019, freight receivables included receivables at a value of USD 0.0m (2018: USD 0.0m 2017: USD 0.0m) that are individually determined to be impaired to a value of USD 0.0m (2018: USD 0.0m, 2017: USD 0.0m).
Management makes allowance for expected credit loss based on the simplified approach to provide for expected credit losses, which permits the use of the lifetime expected loss provision for all trade receivables. Expected credit loss for receivables overdue more than 180 days is 25%-100%, depending on category. Expected credit loss for receivables overdue more than one year is 100%.

USDm                                               | 2019 | 2018 | 2017
-------------------------------------------------- | ---- | ---- | ----
Analysis as of 31 December of freight receivables: |      |      |
Gross freight receivables:                         |      |      |
Not yet due                                        | 39.8 | 44.0 | 25.5
Due < 30 days                                      | 22.5 | 18.8 | 26.0
Due between 30 and 180 days                        | 25.3 | 20.5 | 18.4
Due > 180 days                                     | 6.0  | 4.4  | 2.7
Total gross                                        | 93.6 | 87.7 | 72.6
Allowance for expected credit loss                 | 3.7  | 1.7  | 1.3
Total net                                          | 89.9 | 86.0 | 71.3


Note 9 Earnings per share
The following table shows the components used in the calculation of basic and diluted earnings per common share for earnings attributable to common shareholders.
(1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 61,170 in 2019 and 12,252,594 in 2018.

FOR THE YEAR ENDED DECEMBER 31                                               | 2019  | 2018
---------------------------------------------------------------------------- | ----- | -----
Net earnings attributable to common shareholders – basic                     | 3,040 | 2,785
Dividends declared per common share (in dollars)                             | 3.17  | 3.02
Weighted average number of common shares outstanding (in millions)           |       |
Weighted average number of common shares outstanding – basic                 | 900.8 | 898.6
Assumed exercise of stock options (1)                                        | 0.6   | 0.3
Weighted average number of common shares outstanding – diluted (in millions) | 901.4 | 898.9


Note 5: Income Taxes
On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including: a federal corporate rate reduction from 35% to 21%; limitations on the deductibility of interest expense and executive compensation; creation of the base erosion anti-abuse tax (“BEAT”), a new minimum tax; and the transition of U.S. international taxation from a worldwide tax system to a modified territorial tax system. The change to a modified territorial tax system resulted in a one-time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. (the “Transition Tax”), with future distributions not subject to U.S. federal income tax when repatriated. A majority of the provisions in the Tax Act are effective January 1, 2018.
In response to the Tax Act, the SEC staff issued guidance on accounting for the tax effects of the Tax Act. The guidance provides a one-year measurement period for companies to complete the accounting. The Company reflected the income tax effects of those aspects of the Tax Act for which the accounting is complete. To the extent a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, a company should record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act.
In connection with the Company's initial analysis of the impact of the Tax Act, the Company has recorded a provisional estimate of discrete net tax expense of $508,000 for the period ended December 31, 2017. This discrete expense consists of provisional estimates of zero expense for the Transition Tax, $173,000 net benefit for the decrease in the Company's deferred tax liability on unremitted foreign earnings, and $681,000 net expense for remeasurement of the Company's deferred tax assets and liabilities for the corporate rate reduction.
During the year ended December 31, 2018, we completed our accounting for the income tax effects of the Tax Act. We did not recognize any additional discrete net tax expense in addition to the provisional amounts recorded at December 31, 2017 for the enactment-date effects of the Tax Act, for a total of $508,000 of discrete net tax expense.
As of December 31, 2019, the Company is permanently reinvested in certain Non-U.S. subsidiaries and does not have a deferred tax liability related to its undistributed foreign earnings. The estimated amount of the unrecognized deferred tax liability attributed to future withholding taxes on dividend distributions of undistributed earnings for certain non-U.S. subsidiaries, which the Company intends to reinvest the related earnings indefinitely in its operations outside the U.S., is approximately $484,000 at December 31, 2019
The components of income before income tax expense are as follows (in thousands):

Year Ended December 31, |         |
----------------------- | ------- | ------
                        | 2019    | 2018
U.S.                    | $11,553 | $8,677
Foreign                 | (2,604) | (391)
                        | $8,949  | $8,286


During the year ended 31 December 2019, the Company repurchased 3,486,700 shares on the Stock Exchange for an aggregate consideration of approximately HKD1.16 billion before expenses. The repurchased shares were subsequently cancelled. The repurchase was effected by the Board for the enhancement of shareholder value in the long term. Details of the shares repurchased are as follows:
Save as disclosed above and in Note 32 to the consolidated financial statements, neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company’s shares during the year ended 31 December 2019.

                          | Purchase consideration per share |            |            |
------------------------- | -------------------------------- | ---------- | ---------- | -------------
                          |                                  |            |            | Aggregate
                          | No. of shares                    | Highest    | Lowest     | consideration
Month of purchase in 2019 | purchased                        | price paid | price paid | paid
                          |                                  | HKD        | HKD        | HKD
August                    | 362,200                          | 327.00     | 312.40     | 116,330,916
September                 | 2,294,500                        | 351.00     | 323.60     | 776,104,729
October                   | 830,000                          | 327.80     | 317.40     | 268,272,462
Total:                    | 3,486,700                        |            |            | 1,160,708,107


ADVANCED ENERGY INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (in thousands, except per share amounts)
The following table presents our unaudited pro forma results for the acquisitions of Artesyn and LumaSense:
The unaudited pro forma results for all periods presented include adjustments made to account for certain costs and transactions that would have been incurred had the acquisitions been completed at the beginning of the year prior to the year of acquisition. These include adjustments to amortization charges for acquired intangible assets, interest and financing expenses, transaction costs, amortization of purchased gross profit and the alignment of various accounting policies. These adjustments are net of any applicable tax impact and were included to arrive at the pro forma results above.
Artesyn’s operating results have been included in the Advanced Energy’s operating results for the periods subsequent to the completion of the acquisition on September 10, 2019. During the year ended December 31, 2019, Artesyn contributed total sales of $220.3 million and net income of $7.1 million, including interest and other expense associated with the financing of the transaction.

                                                            |             |            | Year Ended December 31, |
----------------------------------------------------------- | ----------- | ---------- | ----------------------- | ----------
                                                            | 2019        |            | 2018                    |
                                                            | As Reported | Pro Forma  | As Reported             | Pro Forma
Total sales                                                 | $788,948    | $1,202,790 | $718,892                | $1,350,037
Net income attributable to Advanced Energy Industries, Inc. | $64,941     | $83,104    | $147,025                | $158,422
Earnings per share:                                         |             |            |                         |
Basic earnings per share                                    | $1.70       | $2.17      | $3.76                   | $4.05
Diluted earnings per share                                  | $ 1.69      | $ 2.16     | $ 3.74                  | $ 4.03


Research and Development
Research and development expenses increased $24.2 million, or 31%, in 2019 as compared to 2018. The increase was principally due to the 2018 Reallocation of headcount from sales and marketing to research and development, as well as investments to maintain and improve the functionality of our products. As a result, we incurred increased employee-related costs of $16.3 million and increased overhead costs of $3.4 million.
Research and development expenses increased $15.0 million, or 24%, in 2018 as compared to 2017. The increase was principally due to the 2018 Reallocation of headcount from sales and marketing to research and development, as well as investments to maintain and improve the functionality of our products. As a result, we incurred increased employee-related costs of $12.1 million.

                         |          | Year Ended December 31, |
------------------------ | -------- | ----------------------- | -------
                         | 2019     | 2018                    | 2017
                         |          | (dollars in thousands)  |
Research and development | $101,151 | $76,981                 | $61,975
Percent of revenue       | 17.5%    | 14.3%                   | 12.9%


Property, Plant and Equipment.
Property, plant and equipment is stated at cost. Maintenance and repair costs are expensed as incurred. Depreciation is calculated using the straight-line method using estimated useful lives of 5 to 40 years for buildings and building improvements and 3 to 15 years for machinery and equipment. A summary of property, plant and equipment is shown below:
Depreciation expense was $27.2 million, $22.5 million and $22.0 million in fiscal 2019, fiscal 2018 and fiscal 2017, respectively. As of April 27, 2019 and April 28, 2018, capital expenditures recorded in accounts payable totaled $6.4 million and $9.0 million, respectively.

(Dollars in Millions)                      | April 27, 2019 | April 28, 2018
------------------------------------------ | -------------- | --------------
Land                                       | $3.7           | $0.8
Buildings and Building Improvements        | 81.2           | 69.2
Machinery and Equipment                    | 390.7          | 364.7
Total Property, Plant and Equipment, Gross | 475.6          | 434.7
Less: Accumulated Depreciation             | 283.7          | 272.5
Property, Plant and Equipment, Net         | $191.9         | $162.2


ITEM 6. SELECTED FINANCIAL DATA
The selected consolidated statements of operations data for the years ended December 31, 2019, 2018 and 2017 and the selected consolidated balance sheet data as of December 31, 2019 and 2018 are derived from our audited consolidated financial statements included elsewhere in this Annual Report. The selected consolidated statements of operations data for the years ended December 31, 2016 and 2015 and the selected consolidated balance sheet data as of December 31, 2017, 2016 and 2015 are derived from our audited consolidated financial statements not included in this Annual Report. Our historical results are not necessarily indicative of the results to be expected in the future. The selected financial data should be read together with Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and in conjunction with our consolidated financial statements, related notes, and other financial information included elsewhere in this Annual Report. The following tables set forth our selected consolidated financial and other data for the years ended and as of December 31, 2019, 2018, 2017, 2016 and 2015 (in thousands, except share and per share data).
Information about prior period acquisitions that may affect the comparability of the selected financial information presented below is included in Item 1. Business. Information about the $28.0 million expense recorded in general and administrative expense in 2018, which relates to the agreement reached to settle the legal matter alleging violations of the Telephone Consumer Protection Act, or TCPA, and may affect the comparability of the selected financial information presented below, is disclosed in Item 3. “Legal Proceedings.” Information about the $1.7 million of interest recorded within interest income and the $6.9 million of gain recorded within other income, net, in 2019, which relates to promissory note proceeds received from one of our hardware suppliers and proceeds from an acquired promissory note, and may affect the comparability of the selected financial information presented below, is disclosed in Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations."
Certain previously reported amounts in the consolidated statements of operations for the years ended December 31, 2018, 2017, 2016 and 2015 have been reclassified to conform to our current presentation to reflect interest income as a separate line item, which was previously included in other income, net.

                                       |         |         | Year Ended December 31, |        |
-------------------------------------- | ------- | ------- | ----------------------- | ------ | ------
                                       | 2019    | 2018    | 2017                    | 2016   | 2015
Stock-based compensation expense data: |         |         |                         |        |
Sales and marketing                    | $2,075  | $1,196  | $561                    | $536   | $372
General and administrative             | 6,474   | 4,901   | 2,638                   | 1,430  | 2,486
Research and development               | 12,054  | 7,332   | 4,214                   | 2,035  | 1,266
Total stock-based compensation expense | $20,603 | $13,429 | $7,413                  | $4,001 | $4,124


Share Repurchase Program
In both fiscal 2019 and 2018, our board of directors authorized increases of $1.5 billion in our share repurchase program. Common shares repurchased under the share repurchase program were as follows:
At fiscal year end 2019, we had $1.5 billion of availability remaining under our share repurchase authorization.

                                    |         | Fiscal        |
----------------------------------- | ------- | ------------- | -----
                                    | 2019    | 2018          | 2017
                                    |         | (in millions) |
Number of common shares repurchased | 12      | 10            | 8
Repurchase value                    | $ 1,014 | $ 966         | $ 621


13. Intangible assets continued
Goodwill has been allocated to three CGUs, which align with the reportable operating segments, as follows:

                            | 2019      | 2018
--------------------------- | --------- | ---------
                            | $ million | $ million
Networks & Security         | 73.4      | 72.0
Lifecycle Service Assurance | 37.6      | 37.6
Connected Devices           | 46.1      | 46.1
                            | 157.1     | 155.7


18. Trade and other receivables
Following the application of IFRS 16, trade and other receivables have been restated (note 2).
Trade receivables are amounts due from customers for services performed in the ordinary course of business. They are generally due for settlement within 30 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional and has been invoiced at the reporting date. 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.
Accrued income relates to the Group’s rights to consideration for services provided but not invoiced at the reporting date. Accrued income is transferred to receivables when invoiced. Other receivables include £0.1m due from Auto Trader Auto Stock Limited, a related party (note 34).
Exposure credit risk and expected credit losses relating to trade and other receivables are disclosed in note 31.

                                                    | 2019  | (Restated) 2018
--------------------------------------------------- | ----- | ---------------
                                                    | £m    | £m
Trade receivables                                   | 27.0  | 28.8
Less: provision for impairment of trade receivables | (2.1) | (3.4)
Net trade receivables                               | 24.9  | 25.4
Accrued income                                      | 28.0  | 26.7
Prepayments                                         | 2.9   | 2.7
Other receivables                                   | 0.3   | 0.1
Total                                               | 56.1  | 54.9


The following table presents total stock-based compensation cost included in income from continuing operations.
Total unrecognized compensation cost related to non-vested awards at December 31, 2019 was $1.2 billion and is expected to be recognized over a weighted-average period of approximately 2.5 years.
Capitalized stock-based compensation cost was not material at December 31, 2019, 2018 and 2017.

($ in millions)                       |       |       |
------------------------------------- | ----- | ----- | -----
For the year ended December 31:       | 2019  | 2018  | 2017
Cost                                  | $100  | $82   | $91
Selling, general and administrative   | 453   | 361   | 384
Research, development and engineering | 126   | 67    | 59
Pre-tax stock-based compensation cost | 679   | 510   | 534
Income tax benefits                   | (155) | (116) | (131)
Net stock-based compensation cost     | $524  | $393  | $403


Goodwill activity for each period was as follows:
During the third quarter of 2018, we made an organizational change to combine our AI investments in edge computing with IOTG; accordingly, approximately $480 million of goodwill was reallocated from “all other” to the IOTG operating segment.
During the fourth quarters of 2019 and 2018, we completed our annual impairment assessments and we concluded that goodwill was not impaired in either of these years. The accumulated impairment loss as of December 28, 2019 was $719 million: $365 million associated with CCG, $275 million associated with DCG, and $79 million associated with IOTG.

(In Millions)                | Dec 29, 2018 | Acquisitions | Transfers | Other | Dec 28, 2019
---------------------------- | ------------ | ------------ | --------- | ----- | ------------
Data Center Group            | $5,424       | $1,758       | $—        | $—    | $7,155
Internet of Things Group     | 1,579        | —            | —         | —     | 1,579
Mobileye                     | 10,290       | —            | —         | —     | 10,290
Programmable Solutions Group | 2,579        | 67           | —         | 8     | 2,681
Client Computing Group       | 4,403        | —            | —         | (70)  | 4,333
All other                    | 238          | —            | —         | —     | 238
Total                        | $24,513      | $1,825       | $—        | $(62) | $26,276
(In Millions)                | Dec 30, 2017 | Acquisitions | Transfers | Other | Dec 29, 2018
Data Center Group            | $5,421       | $3           | $—        | $—    | $5,424
Internet of Things Group     | 1,126        | 16           | 480       | (43)  | 1,579
Mobileye                     | 10,278       | 7            | —         | 5     | 10,290
Programmable Solutions Group | 2,490        | 89           | —         | —     | 2,579
Client Computing Group       | 4,356        | 47           | —         | —     | 4,403
All other                    | 718          | —            | (480)     | —     | 238
Total                        | $24,389      | $162         | $—        | $(38) | $24,513


18. Geographic Information
Revenue by geography is based on the customer's billing address, and was as follows:
No individual international country represented more than 10% of total revenue in any period presented.

              | Year Ended December 31, |          |
------------- | ----------------------- | -------- | --------
              | 2019                    | 2018     | 2017
U.S.          | $1,979.6                | $1,723.9 | 1,504.5
International | 1,008.5                 | 936.2    | 727.4
              | $2,988.1                | $2,660.1 | $2,231.9


Goodwill and Other Intangibles
In accordance with ASC 350, Intangibles – Goodwill and Other, the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level using the discounted cash flow valuation model and allocates goodwill to these reporting units using a relative fair value approach. During this assessment, management relies on a number of factors, including operating results, business plans, and anticipated future cash flows. The Company has identified its reportable segments, ACI On Premise and ACI On Demand, as the reporting units.
The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates, and cash flow projections are the most sensitive and susceptible to change, as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as company-specific risk factors. Operational management, considering industry and company-specific historical and projected data, develops growth rates and cash flow projections for each  flow estimates beyond the last projected period, assuming a constant WACC and low, long-term growth rates. If the recoverability test indicates potential impairment, the Company calculates an implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in a manner similar to how goodwill is calculated in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to the reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded to write down the carrying value. The calculated fair value substantially exceeded the current carrying value for all reporting units for all periods.
Changes in the carrying amount of goodwill attributable to each reporting unit during the year ended December 31, 2019, were as follows (in thousands):
(1) Goodwill from acquisitions relates to the goodwill recorded for the acquisition of E Commerce Group Products, Inc. ("ECG"), along with ECG's subsidiary, Speedpay, Inc. (collectively referred to as "Speedpay") and Walletron, Inc. ("Walletron"), as discussed in Note 3, Acquisition. The purchase price allocations for Speedpay and Walletron are preliminary as of December 31, 2019, and are subject to future changes during the maximum one-year measurement period.
Other intangible assets, which include customer relationships and trademarks and trade names, are amortized using the straight-line method over periods ranging from three years to 20 years. The Company reviews its other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

                                            | ACI On Demand | ACI On Premise | Total
------------------------------------------- | ------------- | -------------- | ----------
Gross Balance, prior to December 31, 2018   | $ 183,783     | $ 773,340      | $ 957,123
Total impairment prior to December 31, 2018 | —             | (47,432)       | (47,432 )
Balance, December 31, 2018                  | 183,783       | 725,908        | 909,691
Goodwill from acquisitions (1)              | 370,834       | —              | 370,834
Balance, December 31, 2019                  | $554,617      | $725,908       | $1,280,525


Dell purchases our products and services directly from us, as well as through our channel partners. Information about our revenue and receipts, and unearned revenue from such arrangements, for the periods presented consisted of the following (table in millions):
Sales through Dell as a distributor, which is included in reseller revenue, continues to grow rapidly.
Customer deposits resulting from transactions with Dell were $194 million and $85 million as of January 31, 2020 and February 1, 2019, respectively.

                                          |                  | Revenue and Receipts     |                  | Unearned Revenue |
----------------------------------------- | ---------------- | ------------------------ | ---------------- | ---------------- | ----------------
                                          |                  | For the Year Ended As of |                  | As of            |
                                          | January 31, 2020 | February 1, 2019         | February 2, 2018 | January 31, 2020 | February 1, 2019
Reseller revenue                          | $3,288           | $2,355                   | $1,464           | $3,787           | $2,554
Internal-use revenue                      | 82               | 41                       | 46               | 57               | 29
Collaborative technology project receipts | 10               | 4                        | —                | n/a              | n/a


Note 15. Stock-Based Compensation
Stock-based compensation expense is included in the following line items in the consolidated statements of operations (in thousands):

                                       |         | Year Ended December 31, |
-------------------------------------- | ------- | ----------------------- | ------
Stock-based compensation expense data: | 2019    | 2018                    | 2017
Sales and marketing                    | $2,075  | $1,196                  | $561
General and administrative             | 6,474   | 4,901                   | 2,638
Research and development               | 12,054  | 7,332                   | 4,214
Total stock-based compensation expense | $20,603 | $13,429                 | $7,413


Balance sheet
Under IAS 12 Income Taxes, provision is made for the deferred tax assets and liabilities associated with the revaluation of assets and liabilities at the corporate tax rate expected to apply to the Group at the time the temporary differences are expected to reverse. For those UK assets and liabilities benefiting from REIT exemption the relevant tax rate will be 0 per cent (2018: 0 per cent), and for other UK assets and liabilities the relevant rate will be 19 per cent if the temporary difference is expected to be realised before 1 April 2020 and 17 per cent if it is expected to be realised on or after 1 April 2020 (2018: 19 per cent before 1 April 2020, 17 per cent thereafter). For Spanish assets and liabilities the relevant tax rate will be 25 per cent (2018: 25 per cent).
Movements in the provision for deferred tax:
The net deferred tax provision of £0.9 million predominantly arises in respect of the revaluation of development property at intu Costa del Sol, partially offset by associated tax losses.

£m                                       | Investment and development property | Other temporary differences | Total
---------------------------------------- | ----------------------------------- | --------------------------- | ------
Provided deferred tax provision/(asset): |                                     |                             |
At 1 January 2018                        | 24.6                                | (0.9)                       | 23.7
Recognised in the income statement       | (5.5)                               | (0.3)                       | (5.8)
Foreign exchange movements               | 0.1                                 | –                           | 0.1
At 31 December 2018                      | 19.2                                | (1.2)                       | 18.0
Recognised in the income statement       | (16.4)                              | (0.2)                       | (16.6)
Foreign exchange movements               | (0.5)                               | –                           | (0.5)
At 31 December 2019                      | 2.3                                 | (1.4)                       | 0.9


Note 14 Debt and Credit Facilities
Our total debt outstanding consisted of the amounts set forth on the following table:
(1) Short-term borrowings of $98.9 million at December 31, 2019 were comprised of $89.0 million under our revolving credit facility and $9.9 million of short-term borrowings from various lines of credit. Short-term borrowings of $232.8 million at December 31, 2018 were comprised of $140.0 million under our revolving credit facility, $83.9 million under our European securitization program and $8.9 million of short-term borrowings from various lines of credit.
(2) The Current portion of long-term debt includes finance lease liabilities of $10.4 million as of December 31, 2019. The Other debt balance includes $28.7 million for long-term liabilities associated with our finance leases as of December 31, 2019. See Note 4, "Leases," of the Notes to Condensed Consolidated Financial Statements for additional information on finance and operating lease liabilities.
(3) Amounts are net of unamortized discounts and issuance costs of $24.6 million and $24.3 million as of December 31, 2019 and 2018, respectively.
(4) As of December 31, 2019, our weighted average interest rate on our short-term borrowings outstanding was 5.0% and on our long-term debt outstanding was 4.8%. As of December 31, 2018, our weighted average interest rate on our short-term borrowings outstanding was 2.8% and on our long-term debt outstanding was 5.4%.

                                              | December 31, |
--------------------------------------------- | ------------ | ---------
(In millions)                                 | 2019         | 2018
Short-term borrowings (1)                     | $ 98.9       | $ 232.8
Current portion of long-term debt(2)          | 16.7         | 4.9
Total current debt                            | 115.6        | 237.7
Term Loan A due July 2022                     | 474.6        | —
Term Loan A due July 2023                     | 218.2        | 222.2
6.50% Senior Notes due December 2020          | —            | 424.0
4.875% Senior Notes due December 2022         | 421.9        | 421.1
5.25% Senior Notes due April 2023             | 422.0        | 421.2
4.50% Senior Notes due September 2023         | 445.6        | 454.9
5.125% Senior Notes due December 2024         | 421.9        | 421.3
5.50% Senior Notes due September 2025         | 397.4        | 397.1
4.00% Senior Notes due December 2027          | 420.4        | —
6.875% Senior Notes due July 2033             | 445.7        | 445.5
Other(2)                                      | 30.9         | 29.2
Total long-term debt, less current portion(3) | 3,698.6      | 3,236.5
Total debt(4)                                 | $ 3,814.2    | $ 3,474.2


A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
As of April 26, 2019, we had $296 million of gross unrecognized tax benefits, of which $252 million has been recorded in other long-term liabilities. Unrecognized tax benefits of $246 million, including penalties, interest and indirect benefits, would affect our provision for income taxes if recognized. As a result of U.S. tax reform, we recorded provisional gross unrecognized tax benefits of $114 million during fiscal 2018.
We recognized a benefit for adjustments to accrued interest and penalties related to unrecognized tax benefits in the income tax provision of approximately $4 million in fiscal 2019 and expense of $5 million in each of fiscal 2018 and 2017. Accrued interest and penalties of $18 million and $22 million were recorded in the consolidated balance sheets as of April 26, 2019 and April 27, 2018, respectively.

                                                             |                | Year Ended     |
------------------------------------------------------------ | -------------- | -------------- | --------------
                                                             | April 26, 2019 | April 27, 2018 | April 28, 2017
Balance at beginning of period                               | $ 348          | $ 218          | $ 216
Additions based on tax positions related to the current year | 11             | 131            | 7
Additions for tax positions of prior years                   | 26             | —              | 7
Decreases for tax positions of prior years                   | (35 )          | (1 )           | —
Settlements                                                  | (54 )          | —              | (12 )
Balance at end of period                                     | $ 296          | $ 348          | $ 218


Stock Awards
We have granted RSUs to our employees, consultants and members of our Board of Directors, and PSUs to certain executives
In February 2016, we granted 547,000 PSUs with certain financial and operational targets. Actual performance,
as measured at the time and prior to the restatement of the 2016 financial statements, resulted in participants
achieving 80% of target. Given the PSUs did not contain explicit or implicit claw back rights, there was no change
to stock-based compensation expense for the impact of the previously disclosed restatement of the 2016 consolidated
financial statements. As of December 31, 2019, 253,203 shares had vested, 200,297 shares had been forfeited, and
the remaining 93,500 shares will vest (as to 80%) in annual tranches through February 2020 subject to continued
service vesting requirements
In October 2018, we granted 464,888 PSUs with certain financial targets. These PSUs will become eligible to
vest at 75% upon the achievement of the performance targets by December 31, 2020, and are subject to service
condition vesting requirements. The remaining 25% of these PSUs will become eligible to vest on the first
anniversary of the initial vesting date. None of these PSUs were vested as of December 31, 2019.
In April 2019, we granted 346,453 PSUs with certain financial targets. These PSUs will become eligible to vest at 75% on the second month following achievement of certain performance targets by December 31, 2021, with the remaining 25% of the PSUs to vest on the first anniversary of the initial vesting date, subject to continued service vesting requirements. None of these PSUs were vested as of December 31, 2019 In April 2019, we granted 346,453 PSUs with certain financial targets. These PSUs will become eligible to vest at 75% on the second month following achievement of certain performance targets by December 31, 2021, with the remaining 25% of the PSUs to vest on the first anniversary of the initial vesting date, subject to continued service vesting requirements. None of these PSUs were vested as of December 31, 2019
In December 2019, we granted 375,000 PSUs with certain market performance-based targets to be achieved
between December 2019 and December 2023. One-third of each tranche of these PSUs will become eligible to vest
on each of the three anniversaries of the date the performance-based target is achieved, subject to continued service
vesting requirements. The grant date fair values of each tranche of these PSUs were estimated to be $4.59, $4.06 and
$3.59 and determined using the Monte Carlo simulation model with the following assumptions: expected term of
4.0 years, expected volatility of 38.45%, risk-free interest rate of 1.7% and expected dividend yield of 0.0%. None
of these PSUs were vested as of December 31, 2019
The following table summarizes our stock award activities and related information:

                                  | Number of Shares (thousands) |       | Weighted-Average Remaining Vesting Term (years)
--------------------------------- | ---------------------------- | ----- | -----------------------------------------------
Nonvested as of December 31, 2018 | 5,974                        | $6.51 |
Granted                           | 3,288                        | $6.74 |
Released                          | (1,774)                      | $6.60 |
Canceled                          | (1,340)                      | $6.57 |
Nonvested as of December 31, 2019 | 6,148                        | $6.59 | 1.81


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)    6. Tangible Fixed Assets and Vessels Under Construction
The movements in tangible fixed assets and vessels under construction are reported in the following table:
Vessels with an aggregate carrying amount of $4,407,156 as of December 31, 2019 (December 31, 2018: $4,304,252) have been pledged as collateral under the terms of the Group’s loan agreements (Note 13).
As of December 31, 2019, a number of increasingly strong negative indicators such as the difference between ship broker estimates of the fair market values and the carrying values of the Group’s Steam vessels, the lack of liquidity in the market for term employment for Steam vessels and reduced expectations for the estimated rates at which such term employment could be secured, together with the continued addition of modern, larger and more fuel efficient LNG carriers to the global fleet, prompted the Group to perform an impairment assessment of its vessels in accordance with the

                                            | Vessels   | Office property and other tangible assets | Total tangible fixed assets | Vessels under construction
------------------------------------------- | --------- | ----------------------------------------- | --------------------------- | --------------------------
Cost                                        |           |                                           |                             |
As of January 1, 2018                       | 4,217,866 | 19,224                                    | 4,237,090                   | 166,655
Additions                                   | 49,036    | 4,678                                     | 53,714                      | 637,046
Transfer from vessels under construction    | 642,776   | —                                         | 642,776                     | (642,776)
Transfer under ‘‘Other non-current assets’’ | —         | —                                         | —                           | (1,650)
Fully amortized fixed assets                | (10,000)  | (192)                                     | (10,192)                    | —
As of December 31, 2018                     | 4,899,678 | 23,710                                    | 4,923,388                   | 159,275
Additions                                   | 26,233    | 1,454                                     | 27,687                      | 450,918
Return of capital expenditures              | (11,224)  | —                                         | (11,224)                    | —
Transfer from vessels under construction    | 406,870   | —                                         | 406,870                     | (406,870)
Fully amortized fixed assets                | (7,209)   | —                                         | (7,209)                     | —
As of December 31, 2019                     | 5,314,348 | 25,164                                    | 5,339,512                   | 203,323
Accumulated depreciation                    |           |                                           |                             |
As of January 1, 2018                       | 460,815   | 3,709                                     | 464,524                     | —
Depreciation                                | 144,611   | 863                                       | 145,474                     | —
Fully amortized fixed assets                | (10,000)  | (192)                                     | (10,192)                    | —
As of December 31, 2018                     | 595,426   | 4,380                                     | 599,806                     | —
Depreciation                                | 156,826   | 875                                       | 157,701                     | —
Impairment loss on vessels                  | 162,149   | —                                         | 162,149                     | —
Fully amortized fixed assets                | (7,209)   | —                                         | (7,209)                     | —
As of December 31, 2019                     | 907,192   | 5,255                                     | 912,447                     | —
Net book value                              |           |                                           |                             |
As of December 31, 2018                     | 4,304,252 | 19,330                                    | 4,323,582                   | 159,275
As of December 31, 2019                     | 4,407,156 | 19,909                                    | 4,427,065                   | 203,323


The primary components of the deferred tax assets and liabilities are as follows, for the periods indicated below:
We believe that sufficient uncertainty exists regarding the realization of certain deferred tax assets that a valuation allowance is required. We continue to evaluate our taxable position quarterly and consider factors by taxing jurisdiction, including but not limited to factors such as estimated taxable income, any historical experience of losses for tax purposes and the future growth of OpenText.

                                                        | June 30,   |
------------------------------------------------------- | ---------- | ----------
                                                        | 2019       | 2018
Deferred tax assets                                     |            |
Non-capital loss carryforwards                          | $161,119   | $129,436
Capital loss carryforwards                              | 155        | 417
Undeducted scientific research and development expenses | 137,253    | 123,114
Depreciation and amortization                           | 683,777    | 829,369
Restructuring costs and other reserves                  | 17,845     | 17,202
Deferred revenue                                        | 53,254     | 62,726
Other                                                   | 59,584     | 57,461
Total deferred tax asset                                | $1,112,987 | $1,219,725
Valuation Allowance                                     | $(77,328)  | $(80,924)
Deferred tax liabilities                                |            |
Scientific research and development tax credits         | $(14,482)  | $(13,342)
Other                                                   | (72,599)   | (82,668)
Deferred tax liabilities                                | $(87,081)  | $(96,010)
Net deferred tax asset                                  | $948,578   | $1,042,791
Comprised of:                                           |            |
Long-term assets                                        | 1,004,450  | 1,122,729
Long-term liabilities                                   | (55,872)   | (79,938)
                                                        | $948,578   | $1,042,791


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
NOTE 12 — Debt
Long-term debt was comprised of the following:
On February 12, 2019, we entered into an amended and restated five-year Credit Agreement with a group of banks (the "Credit Agreement") to extend the term of the facility. The Credit Agreement provides for a revolving credit facility of $300,000, which may be increased by $150,000 at the request of the Company, subject to the administrative agent's approval. This new unsecured credit facility replaces the prior $300,000 unsecured credit facility, which would have expired August 10, 2020. Borrowings of $50,000 under the prior credit agreement were refinanced into the Credit Agreement. The prior agreement was terminated as of February 12, 2019.
The Revolving Credit Facility includes a swing line sublimit of $15,000 and a letter of credit sublimit of $10,000. Borrowings under the Revolving Credit Facility bear interest at the base rate defined in the Credit Agreement. We also pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility. The commitment fee ranges from 0.20% to 0.30% based on our total leverage ratio.
The Revolving Credit Facility requires, among other things, that we comply with a maximum total leverage ratio and a minimum fixed charge coverage ratio. Failure to comply with these covenants could reduce the borrowing availability under the Revolving Credit Facility. We were in compliance with all debt covenants at December 31, 2019. The Revolving Credit Facility requires that we deliver quarterly financial statements, annual financial statements, auditor certifications, and compliance certificates within a specified number of days after the end of a quarter and year. Additionally, the Revolving Credit Facility contains restrictions limiting our ability to: dispose of assets; incur certain additional debt; repay other debt or amend subordinated debt instruments; create liens on assets; make investments, loans or advances; make acquisitions or engage in mergers or consolidations; engage in certain transactions with our subsidiaries and affiliates; and make stock repurchases and dividend payments. Interest rates on the Revolving Credit Facility fluctuate based upon the LIBOR and the Company’s quarterly total leverage ratio.
We have debt issuance costs related to our long-term debt that are being amortized using the straight-line method over the life of the debt. Amortization expense for the twelve months ended December 31, 2019 was approximately $163 and $185 in 2018 and 2017. These costs are included in interest expense in our Consolidated Statement of Earnings.
We use interest rate swaps to convert the revolving credit facility's variable rate of interest into a fixed rate on a portion of the debt as described more fully in Note 13 "Derivatives." These swaps are treated as cash flow hedges and consequently, the changes in fair value were recorded in other comprehensive earnings.

                                    | As of December 31 |
----------------------------------- | ----------------- | --------
                                    | 2019              | 2018
Total credit facility               | $300,000          | $300,000
Balance outstanding                 | $99,700           | $50,000
Standby letters of credit           | $1,800            | $1,940
Amount available                    | $198,500          | $248,060
Weighted-average interest rate      | 3.25%             | 3.10%
Commitment fee percentage per annum | 0.23%             | 0.20%


Performance Share Awards
In accordance with stockholder-approved equity incentive plans, we grant performance shares to selected executives and other key employees with vesting contingent upon meeting various Company-wide performance goals. The performance goal for one-third of the target number of performance shares for the three-year performance period ending in fiscal 2019 (the "2019 performance period") is based on our fiscal 2017 EBITDA return on capital, subject to certain adjustments. The fiscal 2017 EBITDA return on capital target, when set, excluded the results of Lamb Weston. The performance goal for the final two-thirds of the target number of performance shares granted for the 2019 performance period is based on our diluted EPS compound annual growth rate ("CAGR"), subject to certain adjustments, measured over the two-year period ending in fiscal 2019. In addition, for certain participants, all performance shares for the 2019 performance period are subject to an overarching EPS goal that must be met in each fiscal year of the 2019 performance period before any payout on the performance shares can be made to such participants. The awards actually earned for the 2019 performance period will range from zero to two hundred percent of the targeted number of performance shares for that period.
The performance goal for each of the three-year performance period ending in fiscal 2020 (the "2020 performance period") and the three-year performance period ending in 2021 ("2021 performance period") is based on our diluted EPS CAGR, subject to certain adjustments, measured over the defined performance period. In addition, for certain participants, all performance shares for the 2020 performance period are subject to an overarching EPS goal that must be met in each fiscal year of the 2020 performance period before any payout on the performance shares can be made to such participants. For each of the 2020 performance period and the 2021 performance period, the awards actually earned will range from zero to two hundred percent of the targeted number of performance shares for such performance period.
Awards, if earned, will be paid in shares of our common stock. Subject to limited exceptions set forth in our performance share plan, any shares earned will be distributed after the end of the performance period, and only if the participant continues to be employed with the Company through the date of distribution. For awards where performance against the performance target has not been certified, the value of the performance shares is adjusted based upon the market price of our common stock and current forecasted performance against the performance targets at the end of each reporting period and amortized as compensation expense over the vesting period. Forfeitures are accounted for as they occur.
A summary of the activity for performance share awards as of May 26, 2019 and changes during the fiscal year then ended is presented below:
The compensation expense for our performance share awards totaled $8.2 million, $11.8 million, and $13.3 million for fiscal 2019, 2018, and 2017, respectively. The tax benefit related to the compensation expense for fiscal 2019, 2018, and 2017 was $2.1 million, $3.9 million, and $5.1 million, respectively.
The total intrinsic value of performance shares vested (including shares paid in lieu of dividends) during fiscal 2019, 2018, and 2017 was $15.7 million, $11.2 million, and $2.8 million, respectively.
Based on estimates at May 26, 2019, we had $13.2 million of total unrecognized compensation expense related to performance shares that will be recognized over a weighted average period of 1.7 years.

Performance Shares                                                    | Share Units (in Millions) | Weighted Average Grant-Date Fair Value
--------------------------------------------------------------------- | ------------------------- | --------------------------------------
Nonvested performance shares at May 27, 2018                          | 1.00                      | $33.40
Granted                                                               | 0.45                      | $35.96
Adjustments for performance results attained and dividend equivalents | 0.18                      | $31.03
Vested/Issued .                                                       | (0.43)                    | $31.03
Forfeited .                                                           | (0.05)                    | $34.54
Nonvested performance shares at May 26, 2019                          | 1.15                      | $34.89


7. ACCOUNTS RECEIVABLES ALLOWANCES
Summarized below is the activity in our accounts receivable allowances including compensation credits and doubtful accounts as follows (in thousands):
The balances at the end of fiscal years 2019, 2018 and 2017 are comprised primarily of compensation credits of $4.5 million, $6.3 million and $8.9 million, respectively.

                            |          | Fiscal Year |
--------------------------- | -------- | ----------- | --------
                            | 2019     | 2018        | 2017
Balance - beginning of year | $6,795   | $9,410      | $3,279
Provision, net              | 11,989   | 15,465      | 29,512
Charge-offs                 | (13,737) | (18,080)    | (23,381)
Balance - end of year       | $5,047   | 6,795       | 9,410


(10) Goodwill
Goodwill consists of the following (in millions):
The increase in Goodwill related to our Compass Analytics acquisition is deductible for tax purposes. For the 2018 increase in Goodwill, $19.7 million is deductible for tax purposes and $3.2 million is not deductible for tax purposes.

                                           | Software Solutions | Data and Analytics | Corporate and Other | Total
------------------------------------------ | ------------------ | ------------------ | ------------------- | --------
Balance, December 31, 2017                 | $2,134.7           | $172.1             | $—                  | $2,306.8
HeavyWater and Ernst acquisitions (Note 3) | 22.9               | —                  | —                   | 22.9
Balance, December 31, 2018                 | 2,157.6            | 172.1              | —                   | 2,329.7
Compass Analytics acquisition (Note 3)     | 31.7               | —                  | —                   | 31.7
Balance, December 31, 2019                 | $2,189.3           | $172.1             | $—                  | $2,361.4


The types of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows (in thousands):
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017.
In connection with the acquisition of Connect First on January 14, 2019, a net deferred tax liability of $3.2 million was established, the most significant component of which is related to the book/tax basis differences associated with the acquired technology and customer relationships. The net deferred tax liability from this acquisition created an additional source of income to realize deferred tax assets. As the Company continues to maintain a full valuation allowance against its deferred tax assets, this additional source of income resulted in the release of the Company’s previously recorded valuation allowance against deferred assets. Consistent with the applicable guidance the release of the valuation allowance of $3.2 million caused by the acquisition was recorded in the consolidated financial statements outside of acquisition accounting as a tax benefit to the Consolidated Statements of Operations.
As of December 31, 2019, the Company has federal net operating loss carryforwards of approximately $782.7 million, of which approximately $272.9 million expire between 2023 and 2037 and the remainder do not expire. As of December 31, 2019, the Company had state net operating loss carryforwards of approximately $675.6 million which will begin to expire in 2021. The Company also has research credit carryforwards for federal and California tax purposes of approximately $20.2 million and $15.7 million, respectively, available to reduce future income subject to income taxes. The federal research credit carryforwards will begin to expire in 2028 and the California research credits carry forward indefinitely
The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of net operating losses in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use net operating losses may be limited as prescribed under Internal Revenue Code Section 382 (“IRC Section 382”). Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Utilization of the federal and state net operating losses may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions
The Company’s management believes that, based on a number of factors, it is more likely than not, that all or some portion of the deferred tax assets will not be realized; and accordingly, for the year ended December 31, 2019, the Company has provided a valuation allowance against the Company’s U.S. net deferred tax assets. The net change in the valuation allowance for the years ended December 31, 2019 and 2018 was an increase of $86.0 million, $18.2 million, respectively

                                             |           | Year ended December 31,
-------------------------------------------- | --------- | -----------------------
                                             | 2019      | 2018
Deferred tax assets                          |           |
Net operating loss and credit carry-forwards | $196,930  | $109,812
Research and development credits             | 24,452    | 16,380
Sales tax liability                          | 157       | 258
Share-based compensation                     | 5,937     | 5,435
Accrued liabilities                          | 6,612     | 5,135
Gross deferred tax assets                    | 234,088   | 137,020
Valuation allowance                          | (180,090) | (94,118)
Total deferred tax assets                    | 53,998    | 42,902
Deferred tax liabilities                     |           |
Convertible debt discount                    | (16,701)  | (21,035)
Deferred sales commissions                   | (28,601)  | (18,253)
Acquired intangibles                         | (3,857)   | (2,670)
Property and equipment                       | (6,731)   | (3,573)
Net deferred tax (liabilities) assets        | $(1,892)  | (2,629)


NOTE 9 – OTHER ASSETS
Other assets consist of the following (in thousands):
We have a non-qualified deferred compensation plan in which certain members of management and all nonemployee
directors are eligible to participate. Participants may defer a portion of their compensation until retirement
or another date specified by them in accordance with the plan. We are funding the plan obligations through cash
deposits to a Rabbi Trust that are invested in various equity, bond and money market mutual funds in generally the
same proportion as investment elections made by the participants. The deferred compensation plan liability is included
in Other Non-Current Liabilities in the accompanying consolidated balance sheets.
Our investment in international licensees at February 28, 2019 consists principally of a 12.5% equity interest in
a Mexican licensee of $1.7 million, which became a wholly-owned subsidiary as of March 19, 2019 (see Note 2), as
well as other smaller interests in Benelux and French licensees. Generally, the investments in international licensees
are accounted for using the cost method of accounting and carried at cost as we do not exercise significant influence
over these investees. We have received dividends from our investment in the Mexican licensee in the amount of $0.3
million, $0.3 million and $0.2 million for fiscal years ended February 28, 2019, 2018 and 2017, respectively.
In September 2015, we invested £1,400,000 or approximately $2.2 million for a 49% minority ownership
interest in Smart Driver Club Limited (“Smart Driver Club”), a technology and insurance startup company located in
the United Kingdom. This investment has been accounted for under the equity method since we have significant
influence over the investee. As of February 28, 2019, we had made loans aggregating £5,700,000 or approximately
$7.6 million to Smart Driver Club bearing interest at an annual interest rate of 8%, with all principal and all unpaid
interest due in 2021. Our equity in the net loss of Smart Driver Club amounted to $1.8 million, $1.4 million and $1.3
million in fiscal years ended February 28, 2019, 2018 and 2017, respectively. As of February 28, 2019, we determined
that this equity method investment was subject to other than temporary impairment. This decision was dictated by the
continuing operating losses and deteriorating liquidity position of Smart Driver Club. Accordingly, we recorded an
impairment charge of $5.0 million in the impairment loss and equity in net loss within our consolidated statement of
comprehensive income (loss). Smart Driver Club drew an additional £400,000 of debt on March 26, 2019 under a
fourth amendment to the original agreement dated March 14, 2019
Effective August 24, 2017, we acquired an ownership interest valued at $1.4 million in ThinxNet GmbH, a
company headquartered in Munich, Germany (“ThinxNet”). ThinxNet is an early stage company focused on
commercializing cloud-based mobile device and applications in the automotive sector throughout Europe. This
represents a cost basis investment as we cannot exercise significant influence over the investee. Contemporaneously,
we executed an unsecured convertible note receivable for $1.27 million with an interest rate of 6%, which has a fixed
term of 12 months, after which the loan can be converted into equity in ThinxNet or a loan due on demand at our
option. The equity investment and note receivable were consideration we received in exchange for our outstanding
accounts receivable from ThinxNet. No gain or loss was recorded on this exchange. The assets received in this
exchange are included in Other Assets in the consolidated balance sheet as of February 28, 2019 and 2018.
In August 2018, ThinxNet commenced a subsequent financing transaction to raise additional funds for working capital purposes. In connection with this transaction, we converted approximately $300,000 of outstanding accounts receivable due from ThinxNet into additional ownership interest in an in-kind exchange of assets. Based on the fair value of ThinxNet at the time of conversion, we revalued the initial ownership interest and recorded an impairment charge of $326,000, which is netted within Investment Income in our consolidated statement of comprehensive income (loss). Effective March 2019, we notified ThinxNet that we expect the outstanding loan to be repaid in June 2019.

                                                   |         | February 28,
-------------------------------------------------- | ------- | ------------
                                                   | 2019    | 2018
Deferred compensation plan assets                  | $6,413  | $5,641
Investment in international licensees              | 2,263   | 2,349
Equity investment in and loan to ThinxNet GmbH     | 2,650   | 2,674
Equity investment in and loan to Smart Driver Club | -       | 3,814
Deferred product cost                              | 10,094  | 3,523
Other                                              | 1,090   | 828
                                                   | $22,510 | $18,829


VMware and Pivotal Stock Options
The following table summarizes stock option activity for VMware and Pivotal since February 3, 2017 (shares in thousands):
(1) The weighted-average exercise price of options outstanding as of February 1, 2019 reflects the adjustments to the options as a result of the Special Dividend.
(2) Stock option granted under the VMware equity plan includes 0.6 million options issued for unvested options assumed as part of the Pivotal acquisition.
(3) Stock options forfeited under the Pivotal equity plan includes 6.2 million options converted to VMware options as part of the Pivotal acquisition, using a conversion ratio of 0.1.
(4) Stock options exercised under the Pivotal equity plan includes 22.4 million of vested options that were settled in cash as part of the Pivotal acquisition.
The above table includes stock options granted in conjunction with unvested stock options assumed in business combinations. As a result, the weighted-average exercise price per share may vary from the VMware stock price at time of grant
The stock options outstanding as of January 31, 2020 had an aggregate intrinsic value of $239 million based on VMware’s closing stock price as of January 31, 2020.

                                 |                  | VMware Stock Options                        |                  | Pivotal Stock Options
-------------------------------- | ---------------- | ------------------------------------------- | ---------------- | -------------------------------------------
                                 | Number of Shares | Weighted-Average Exercise Price (per share) | Number of Shares | Weighted-Average Exercise Price (per share)
Outstanding, February 3, 2017    | 1,991            | $69.38                                      | 39,361           | $6.72
Granted                          | 745              | 13.79                                       | 20,323           | 9.73
Forfeited                        | (36)             | 55.44                                       | (2,380)          | 8.13
Expired                          | (3)              | 93.87                                       | (1,290)          | 6.24
Exercised                        | (1,050)          | 53.50                                       | (1,626)          | 5.99
Outstanding, February 2, 2018    | 1,647            | 54.63                                       | 54,388           | 7.82
Granted                          | 574              | 16.07                                       | 2,832            | 14.03
Special Dividend adjustment      | 348              | n/a                                         | n/a              | n/a
Forfeited                        | (31)             | 24.44                                       | (2,028)          | 9.35
Expired                          | —                | —                                           | (273)            | 7.02
Exercised                        | (569)            | 46.73                                       | (9,018)          | 6.89
Outstanding, February 1, 2019(1) | 1,969            | 36.50                                       | 45,901           | 8.31
Granted(2)                       | 1,571            | 73.19                                       | —                | —
Forfeited(3)                     | (149)            | 52.83                                       | (10,822)         | 10.65
Expired                          | —                | —                                           | (128)            | 10.10
Exercised(4)                     | (776)            | 39.94                                       | (34,951)         | 7.59
Outstanding, January 31, 2020    | 2,615            | 56.58                                       | —                | —


ADJUSTED EBITDA
(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 adjusted EBITDA increased by 10.0% (8.5% in constant currency) as a result of: • an increase in the American broadband services segment mainly as a result of strong organic growth combined with the impact of the MetroCast and FiberLight acquisitions; and • an increase in the Canadian broadband services segment resulting mainly from a decline in operating expenses.
For further details on the Corporation’s adjusted EBITDA, 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                   | 688,681   | 681,020   | 1.1    | 1.3                             | (1,102)
American broadband services                   | 465,645   | 369,200   | 26.1   | 21.5                            | 16,911
Inter-segment eliminations and other          | (46,386)  | (43,402)  | 6.9    | 6.8                             | (12)
                                              | 1,107,940 | 1,006,818 | 10.0   | 8.5                             | 15,797


NOTE 13 – INCOME TAX
The domestic and foreign components of loss before income taxes from operations for the years ended December 31, 2019, 2018 and 2017 are as follows:

         |           | For the Years Ended December 31, |
-------- | --------- | -------------------------------- | -------
         | 2019      | 2018                             | 2017
         |           | (in thousands)                   |
Domestic | $(22,708) | $29,110                          | $17,120
Foreign  | —         | (320)                            | (469)
         | $(22,708) | $28,790                          | $16,651