DEVELOPMENT OF EMPLOYEE NUMBERS BY SEGMENTS
By headcount1 as of closing date of 30/9
1 Excluding METRO China.

                                    | 2018    | 2019
----------------------------------- | ------- | ------
METRO                               | 92,603  | 89,574
METRO Germany                       | 13,711  | 13,606
METRO Western Europe (excl.Germany) | 27,207  | 27,227
METRO Russia                        | 13,960  | 12,357
METRO Eastern Europe (excl.Russia)  | 29,060  | 28,375
METRO Asia                          | 8,665   | 8,009
Others                              | 7,008   | 7,152
METROAG                             | 909     | 880
Total                               | 100,520 | 97,606


29. Related party transactions
The Group has a number of related parties including joint arrangements and associates, pension schemes and Directors and Executive Committee members (see note 12 “Investments in associates and joint arrangements”, note 24 “Post employment benefits” and note 22 “Directors and key management compensation”).
Transactions with joint arrangements and associates
Related party transactions with the Group’s joint arrangements and associates primarily comprise fees for the use of products and services including network airtime and access charges, fees for the provision of network infrastructure and cash pooling arrangements.
No related party transactions have been entered into during the year which might reasonably affect any decisions made by the users of these consolidated financial statements except as disclosed below.
Note: 1 Amounts arise primarily through VodafoneZiggo, Vodafone Idea, Vodafone Hutchison Australia and Cornerstone Telecommunications Infrastructure Limited. Interest is paid in line with market rates.
Dividends received from associates and joint ventures are disclosed in the consolidated statement of cash flows.

                                                        | 2019 | 2018  | 2017
------------------------------------------------------- | ---- | ----- | -----
                                                        | €m   | €m    | €m
Sales of goods and services to associates               | 27   | 19    | 37
Purchase of goods and services from associates          | 3    | 1     | 90
Sales of goods and services to joint arrangements       | 242  | 194   | 19
Purchase of goods and services from joint arrangements  | 192  | 199   | 183
Net interest income receivable from joint arrangements1 | 96   | 120   | 87
Trade balances owed:                                    |      |       |
by associates                                           | 1    | 4     | –
to associates                                           | 3    | 2     | 1
by joint arrangements                                   | 193  | 107   | 158
to joint arrangements                                   | 25   | 28    | 15
Other balances owed by joint arrangements1              | 997  | 1,328 | 1,209
Other balances owed to joint arrangements1              | 169  | 150   | 127


Comparison of Years Ended December 31, 2019 to December 31, 2018
The following tables in this section set forth our selected consolidated statements of operations (in thousands), data for the percentage change and data as a percentage of revenue for the years ended December 31, 2019 and 2018. Certain previously reported amounts in the consolidated statements of operations for the year ended December 31, 2018 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.
Revenue
The $81.9 million increase in total revenue in 2019 as compared to 2018 was the result of a $46.3 million, or 16%, increase in our SaaS and license revenue and a $35.6 million, or 27%, increase in our hardware and other revenue. Our software license revenue included within SaaS and license revenue increased $2.1 million to $43.4 million in 2019 as compared to $41.3 million during 2018. The increase in our Alarm.com segment SaaS and license revenue in 2019 was primarily due to growth in our subscriber base, including the revenue impact from subscribers we added in 2018. To a lesser extent, SaaS and license revenue increased in the period due to an increase in license fees. The increase in hardware and other revenue in 2019 compared to 2018 was due to an increase in the volume of video cameras sold. Our Other segment contributed 15% of the increase in SaaS and license revenue in 2019 as compared to 2018. The increase in SaaS and license revenue for our Other segment in 2019 as compared to 2018 was due to an increase in sales of our energy management and demand response solutions and our property management and HVAC solutions. Hardware and other revenue in our Other segment decreased 13% in 2019 as compared to 2018, primarily due to the timing of sales related to our remote access management solution.

                           |          | Year Ended December 31, |
-------------------------- | -------- | ----------------------- | -------------
Revenue:                   |          |                         | % Change
                           | 2019     | 2018                    | 2019 vs. 2018
SaaS and license revenue   | $337,375 | $291,072                | 16%
Hardware and other revenue | 164,988  | 129,422                 | 27%
Total revenue              | $502,363 | $420,494                | 19%


Item 6. Selected Financial Data
We have derived the consolidated statement 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 from our audited consolidated financial statements that are included in this Form 10-K. The following selected consolidated statement 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 that are not included in this report
Our historical operating results are not necessarily indicative of future operating results, these selected consolidated financial data should be read in conjunction with the consolidated financial statements and accompanying notes in Part II, Item 8, and Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 included in this report
The amounts as of and for the years ended December 31, 2019 and 2018 have been prepared based on our adoption of Accounting Standards Codification (‘‘ASC’’) No. 606, Contracts with Customers. We elected to adopt this accounting standard on a modified retrospective basis which resulted in the impact of adoption being recorded as of January 1, 2018. The amounts in all other years, other than 2019 and 2018, in the tables below have been prepared on the previously outstanding guidance on revenue recognition. We have disclosed the ASC 606 adoption impact on our revenue recognition in Note 2 of the audited consolidated financial statements included in Part II, Item 8 of this report
The amounts as of and for the years ended December 31, 2019 and 2018 have been prepared based on our adoption of Accounting Standards Codification (‘‘ASC’’) No. 606, Contracts with Customers. We elected to adopt this accounting standard on a modified retrospective basis which resulted in the impact of adoption being recorded as of January 1, 2018. The amounts in all other years, other than 2019 and 2018, in the tables below have been prepared on the previously outstanding guidance on revenue recognition. We have disclosed the ASC 606 adoption impact on our revenue recognition in Note 2 of the audited consolidated financial statements included in Part II, Item 8 of this report

                                                |           | Years Ended December 31, |           |           |
----------------------------------------------- | --------- | ------------------------ | --------- | --------- | ---------
(in thousands, except per share amounts)        | 2019      | 2018                     | 2017      | 2016      | 2015
Consolidated Statement of Operations Data       |           |                          |           |           |
Revenue                                         | $212,628  | $232,223                 | $235,429  | $227,297  | $196,285
Cost of revenue                                 | $48,881   | $51,896                  | $53,318   | $54,413   | $48,402
Gross profit                                    | $163,747  | $180,327                 | $182,111  | $172,884  | $147,883
Loss from operations                            | $(17,094) | $(27,679)                | $(10,372) | $(20,570) | $(40,309)
Net loss                                        | $(17,819) | $(27,617)                | $(10,751) | $(22,391) | $(41,897)
Net loss per share: basic and diluted           | $(0.23)   | $(0.38)                  | $(0.15)   | $(0.34)   | $(0.67)
Weighted-average shares used in computing net   |           |                          |           |           |
loss per share: basic and diluted               | 76,080    | 72,882                   | 70,053    | 65,701    | 62,428
Consolidated Balance Sheet Data:                |           |                          |           |           |
Cash,cash equivalents and marketable securities | $129,922  | $128,375                 | $131,134  | $114,347  | $98,117
Working capital                                 | $123,358  | $117,572                 | $111,076  | $95,285   | $89,550
Total assets                                    | $274,053  | $235,876                 | $224,858  | $216,733  | $189,892
Deferred revenue(current and non-current)       | $101,164  | $97,966                  | $94,637   | $91,617   | $72,008
Total stockholders’ equity                      | $108,787  | $103,883                 | $98,386   | $82,752   | $78,205


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.

                              |          |          | As of December 31, |          |
----------------------------- | -------- | -------- | ------------------ | -------- | --------
                              | 2019     | 2018     | 2017               | 2016     | 2015
Balance sheet and other data: |          |          |                    |          |
Cash and cash equivalents     | $119,629 | $146,061 | $96,329            | $140,634 | $128,358
Working capital               | 167,879  | 152,793  | 119,433            | 150,485  | 131,971
Total assets                  | 557,799  | 440,985  | 371,641            | 261,245  | 226,095
Total long-term obligations   | 115,143  | 88,126   | 94,311             | 30,297   | 26,885
Total stockholders' equity    | 355,651  | 277,589  | 232,827            | 191,249  | 170,131


We continue to experience challenging trends in both the high-end smartphone market and in the broadband market. However, with leading mobile and fixed networks, improving customer experience, three strong brands and further enhancements to BT Plus, with 5G coming imminently, we are well placed for the future.
Adjusteda revenue growth of 3% for the year was driven by the continued increase in handset costs for customers, growth in the SIMonly base across all brands and the impact of price increases, partially offset by solus voice price reductions.
Adjusteda EBITDA grew 7% for the year as the revenue growth was partially offset by increased trading costs.
Capital expenditure growth of 8% was driven by increased network spend as preparations were made for the EE 5G launch in 2019. Normalised free cash flowb was £1,323m, down 5% on last year as the increase in EBITDA was offset by the settlement at the start of the year of the Phones4U dispute relating to the retail trading agreement, and increased capital expenditure.
Mobile churnc was stable at 1.2% for the year, whilst fixed churnc was up from 1.3% to 1.4% reflecting the impact of price increases in the year.
a Adjusted measures exclude specific items, as explained in the Additional Information on page 185. b Free cash flow after net interest paid, before pension deficit payments (including the cash tax benefit of pension deficit payments) and specific items.

Consumer                    |                |                                    |        |
--------------------------- | -------------- | ---------------------------------- | ------ | --
Adjusteda revenue £10,695m  |                | Adjusteda operating profit £1,510m |        |
                            | 2019 (IFRS 15) | 2018 (IAS 18)                      | Change |
Year to 31 March            | £m             | £m                                 | £m     | %
Adjusteda revenue           | 10,695         | 10,360                             | 335    | 3
Adjusteda operating costs   | 8,161          | 7,984                              | 177    | 2
Adjusteda EBITDA            | 2,534          | 2,376                              | 158    | 7
Depreciation & amortisation | 1,024          | 992                                | 32     | 3
Adjusted a operating profit | 1,510          | 1,384                              | 126    | 9
Capital expenditure         | 994            | 919                                | 75     | 8
Normalised free cash flowb  | 1,323          | 1,389                              | (66)   | (5


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
NOTE 10 — Contingencies
Certain processes in the manufacture of our current and past products create by-products classified as hazardous waste. We have been notified by the U.S. Environmental Protection Agency, state environmental agencies, and in some cases, groups of potentially responsible parties, that we may be potentially liable for environmental contamination at several sites currently and formerly owned or operated by us. Two of those sites, Asheville, North Carolina and Mountain View, California, are designated National Priorities List sites under the U.S. Environmental Protection Agency’s Superfund program. We accrue a liability for probable remediation activities, claims and proceedings against us with respect to environmental matters if the amount can be reasonably estimated, and provide disclosures including the nature of a loss whenever it is probable or reasonably possible that a potentially material loss may have occurred but cannot be estimated. We record contingent loss accruals on an undiscounted basis.
A roll-forward of remediation reserves included in accrued expenses and other liabilities in the Consolidated Balance Sheets is comprised of the following:
(1) Other activity includes currency translation adjustments not recorded through remediation expense
Unrelated to the environmental claims described above, certain other legal claims are pending against us with respect to matters arising out of the ordinary conduct of our business.
We provide product warranties when we sell our products and accrue for estimated liabilities at the time of sale. Warranty estimates are forecasts based on the best available information and historical claims experience. We accrue for specific warranty claims if we believe that the facts of a specific claim make it probable that a liability in excess of our historical experience has been incurred, and provide disclosures for specific claims whenever it is reasonably possible that a material loss may be incurred which cannot be estimated. We have an outstanding warranty claim for which we have not yet determined the root cause of a product performance issue. Testing is ongoing. We are not able to quantify the potential impact on our operations, if any, because we have not yet determined the root cause.
We cannot provide assurance that the ultimate disposition of environmental, legal, and product warranty claims will not materially exceed the amount of our accrued losses and adversely impact our consolidated financial position, results of operations, or cash flows. Our accrued liabilities and disclosures will be adjusted accordingly if additional information becomes available in the future.

                               |         | Years Ended December 31, |
------------------------------ | ------- | ------------------------ | -------
                               | 2019    | 2018                     | 2017
Balance at beginning of period | $11,274 | $17,067                  | $18,176
Remediation expense            | 2,602   | 1,182                    | 307
Remediation payments           | (2,455) | (6,967)                  | (1,416)
Other activity (1)             | 23      | (8)                      | —
Balance at end of the period   | $11,444 | $11,274                  | $17,067


Interest and Other
Interest income decreased by $1.9 million from 2018 to 2019 due primarily to lower cash and marketable securities balances in 2019. Interest expense decreased by $8.2 million from 2018 to 2019 due primarily to unrealized losses on equity marketable securities recognized in 2018. Other (income) expense, net increased by $28.1 million from 2018 to 2019 due primarily to a $15.0 million charge for the impairment of the investment in RealWear and an $11.5 million change in pension actuarial (gains) losses from a $3.3 million gain in 2018 to an $8.2 million loss in 2019.

                            | 2019    | 2018          | 2018-2019 Change
--------------------------- | ------- | ------------- | ----------------
                            |         | (in millions) |
Interest income             | $(24.8) | $(26.7)       | $1.9
Interest expense            | 23.1    | 31.3          | (8.2)
Other (income) expense, net | 29.5    | 1.4           | 28.1


Non-current provisions
Non-current provisions consisted of the following:
The non-current provision for employee benefits includes long service leave as described above.
The dilapidation provision relates to certain lease arrangements for office space entered into by the Group. These lease arrangements require the Group to restore each premises to its original condition upon lease termination. Accordingly, the Group records a provision for the present value of the estimated future costs to retire long-lived assets at the expiration of these leases.

                       | As of June 30,        |
---------------------- | --------------------- | ------
                       | 2019                  | 2018
                       | (U.S. $ in thousands) |
Employee benefits      | $3,323                | $2,094
Dilapidation provision | 2,759                 | 2,269
                       | $6,082                | $4,363


Contractual Obligations
The following table summarizes contractual obligations and commitments, as of April 27, 2019:
(1) Assumes the outstanding borrowings under the revolving credit facility will be repaid upon maturity of the credit agreement in September 2023.
(2) Amounts represent estimated contractual interest payments on outstanding debt. Interest rates in effect as of April 27, 2019 are used for floating-rate debt.
We enter into agreements with suppliers to assist us in meeting our customers' production needs. These agreements vary as to duration and quantity commitments. Historically, most have been short-term agreements, which do not provide for minimum purchases, or are requirements-based contracts.

                               |        |                  | Payments Due By Period |           |
------------------------------ | ------ | ---------------- | ---------------------- | --------- | -----------------
(Dollars in Millions)          | Total  | Less than 1 year | 1-3 years              | 3-5 years | More than 5 years
Capital Leases                 | $1.7   | $0.6             | $0.9                   | $0.2      | $—
Operating Leases               | 34.2   | 7.8              | 10.5                   | 7.5       | 8.4
Debt (1)                       | 295.5  | 15.7             | 28.8                   | 247.7     | 3.3
Estimated Interest on Debt (2) | 46.8   | 11.7             | 20.7                   | 14.2      | 0.2
Deferred Compensation          | 8.5    | 1.2              | 3.2                    | 1.6       | 2.5
Total                          | $386.7 | $37.0            | $64.1                  | $271.2    | $14.4


13. Net Loss Per Share
Basic net loss per share is computed using the weighted average number of shares of common stock outstanding for the period, excluding stock options and restricted stock units. Diluted net loss per share is based upon the weighted average number of shares of common stock outstanding for the period and potentially dilutive common shares, including the effect of stock options and restricted stock units under the treasury stock method. The following table sets forth the computation of the numerators and denominators used in the basic and diluted net loss per share amounts:
(1) The effect of dilutive securities of 3.1 million, 4.5 million, and 4.6 million shares for the fiscal years ended January 31, 2019, 2018, and 2017, respectively, have been excluded from the calculation of diluted net loss per share as those shares would have been anti-dilutive due to the net loss incurred during those fiscal years.
The computation of diluted net loss per share does not include shares that are anti-dilutive under the treasury stock method because their exercise prices are higher than the average market value of Autodesk’s stock during the fiscal year. The effect of 0.5 million, 0.5 million, and 0.1 million potentially anti-dilutive shares were excluded from the computation of net loss per share for the fiscal years ended January 31, 2019, 2018, and 2017, respectively.

                                                                 |         | Fiscal Year Ended January 31, |
---------------------------------------------------------------- | ------- | ----------------------------- | --------
                                                                 | 2019    | 2018                          | 2017
Numerator:                                                       |         |                               |
Net loss                                                         | $(80.8) | $(566.9)                      | $(582.1)
Denominator:                                                     |         |                               |
Denominator for basic net loss per share—weighted average shares | 218.9   | 219.5                         | 222.7
Effect of dilutive securities (1)                                | —       | —                             | —
Denominator for dilutive net loss per share                      | 218.9   | 219.5                         | 222.7
Basic net loss per share                                         | $(0.37) | $(2.58)                       | $(2.61)
Diluted net loss per share                                       | $(0.37) | $(2.58)                       | $(2.61)


Discontinued Operations
On October 27, 2017, we entered into a purchase agreement to sell the Compute business. In consideration for the transfer and sale of the Compute business, we received an equity interest in the buyer valued at approximately $36.5 million, representing the carrying value of the assets divested and representing less than 20.0% of the buyer's total outstanding equity. The operations of the Compute business were accounted for as discontinued operations through the date of divestiture.
We also entered into a transition services agreement (the "Compute TSA"), pursuant to which we agreed to perform certain primarily general and administrative functions on the buyer's behalf during a migration period and for which we are reimbursed for costs incurred.
During the fiscal year 2019, we received $0.1 million of reimbursements under the Compute TSA, which was recorded as a reduction of our general and administrative expenses. During the fiscal year 2018, we received $3.6 million of reimbursements under the Compute TSA, which was recorded as a reduction of our general and administrative expenses.
In August of fiscal year 2015, we sold our Automotive business, as the Automotive business was not consistent with our long-term strategic vision from both a growth and profitability perspective.
Additionally, we entered into a Consulting Agreement with the buyer pursuant to which we were to provide the buyer with certain non-design advisory services for a period of two years following the closing of the transaction for up to $15.0 million, from which we have recorded $7.5 million as other income during both fiscal years 2017 and 2016. No income was recognized during fiscal years 2019 or 2018. During fiscal year 2017, we received $18.0 million, the full amount of the indemnification escrow.
The accompanying Consolidated Statements of Operations includes the following operating results related to these discontinued operations (in thousands):
(1) Amounts are associated with the Compute business. (2) Amounts are associated with the Automotive business.

                                           | Fiscal Years |
------------------------------------------ | ------------ | --------
                                           | 2018         | 2017
Revenue (1)                                | $—           | $660
Cost of revenue (1)                        | (596)        | 2,252
Gross profit (loss)                        | 596          | (1,592)
Operating expenses:                        |              |
Research and development (1)               | 5,251        | 29,167
Selling, general and administrative (1)    | 1,560        | 13,840
Total operating expenses                   | 6,811        | 43,007
Loss from discontinued operations (1)      | (6,215)      | (44,599)
Other income (2)                           | —            | 7,500
Gain on sale (2)                           | —            | 18,022
Loss income before income taxes            | (6,215)      | (19,077)
Income tax provision (benefit)             | —            | —
Loss income from discontinued operations   | (6,215)      | (19,077)
Cash flow used in Operating Activities (1) | (10,734)     | (42,776)
Cash flow from Investing Activities (2)    | —            | 25,522


The following table summarizes the activity related to stock options during the year ended December 31, 2019
As of December 31, 2019, the Company had $1,641 of unrecognized stock-based compensation expense related to the stock options. This cost is expected to be recognized over a weighted-average period of 2.5 years.
(Dollars in thousands, except per share amounts)

                                              | Number of Shares | Weighted-Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregated Intrinsic Value (in thousands)
--------------------------------------------- | ---------------- | ------------------------------- | ------------------------------------------------------ | -----------------------------------------
Stock options outstanding - December 31, 2018 | -                | - -                             |                                                        |
Granted                                       | 5,835,724        | $0.56                           |                                                        |
Forfeited or expired                          | (20,000)         | $0.55                           |                                                        |
Stock options outstanding - December 31, 2019 | 5,815,724        | $0.56                           | 9.6 years                                              | $2,725
Stock options exercisable - December 31, 2019 | 137,500          | $0.55                           | 9.6 years                                              | $66


Income Tax Provision Reconciliation
The difference between the income tax benefit (provision) and income taxes computed using the U.S. federal income tax rate was as follows for the years ended September 30, 2019, 2018, and 2017 (amounts shown in thousands):

                                                              | 2019   | 2018     | 2017
------------------------------------------------------------- | ------ | -------- | --------
Amount computed using statutory rate                          | $841   | $2,122   | $(1,078)
Net change in valuation allowance for net deferred tax assets | (459)  | (367)    | 10,058
AMT and other                                                 | —      | (191)    | 20
Foreign rate differential                                     | 664    | 22       | (169)
Non-deductible items                                          | (151)  | (276)    | (370)
State income tax                                              | (370)  | 50       | (34)
Impact of tax reform on deferred taxes                        | —      | (4,901)  | —
Research and development credits                              | 1,694  | 475      | 2,494
Foreign income tax                                            | (494)  | —        | —
Stock compensation, net                                       | 1,539  | —        | —
Income tax benefit (provision)                                | $3,264 | $(3,066) | $10,921


Note 3 – Revenue
The following table disaggregates our revenue by major source for the year ended December 31, 2019:
(1) Subscriber Solutions & Experience was formerly reported as Customer Devices. With the increasing focus on enhancing the customer experience for both our business and consumer broadband customers and the addition of SmartRG during the fourth quarter of 2018, Subscriber Solutions & Experience more accurately represents this revenue category.

(In thousands)                        | Network Solutions | Services & Support | Total
------------------------------------- | ----------------- | ------------------ | --------
Access & Aggregation                  | $289,980          | $58,894            | $348,874
Subscriber Solutions & Experience (1) | 144,651           | 8,269              | 152,920
Traditional & Other Products          | 20,595            | 7,672              | 28,267
Total                                 | $455,226          | $74,835            | $530,061


Capital management
The Group considers capital to be net debt plus total equity. Net debt is calculated as total bank debt and lease financing, less unamortised debt fees and cash and cash equivalents as shown in note 32. Total equity is as shown in the Consolidated balance sheet.
The calculation of total capital is shown in the table below:
Following the application of IFRS 16, total capital for the year ended 31 March 2018 has been restated (note 2).
The objectives for managing capital are to safeguard the Group’s ability to continue as a going concern, in order to provide returns for shareholders and benefits for other stakeholders and to maintain an efficient capital structure to optimise the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or take other steps to increase share capital and reduce or increase debt facilities.
As at 31 March 2019, the Group had borrowings of £313.0m (2018: £343.0m) through its Syndicated revolving credit facility (2018: Syndicated Term Loan). Interest is payable on this facility at a rate of LIBOR plus a margin of between 1.2% and 2.1% depending on the consolidated leverage ratio of Auto Trader Group plc and its subsidiaries, which is calculated and reviewed on a biannual basis. The Group remains in compliance with its banking covenants.

               | 2019  | (Restated) 2018
-------------- | ----- | ---------------
               | £m    | £m
Total net debt | 321.0 | 355.2
Total equity   | 59.0  | 5.6
Total capital  | 380.0 | 360.8


The Group’s measure of segment profit, adjusted EBITDA, excludes depreciation, amortisation, impairment loss, restructuring costs, loss on disposal of fixed assets, the Group’s share of results in associates and joint ventures and other income and expense. A reconciliation of adjusted EBITDA to operating profit is shown below. For a reconciliation of operating profit to profit for the financial year, see the Consolidated income statement on page 111.
Note: 1 Share of adjusted results in equity accounted associates and joint ventures excludes amortisation of acquired customer bases and brand intangible assets, restructuring costs and other costs of €0.6 billion (2018: €0.4 billion, 2017: €0.1 billion) which are included in amortisation of acquired customer base and brand intangible assets, restructuring costs and other income and expense respectively
2 See note 31 “IAS 18 basis primary statements” for further details.

                                                                             | 2019 €m | 2018 €m | 2017 €m
---------------------------------------------------------------------------- | ------- | ------- | --------
Adjusted EBITDA                                                              | 14,139  | 14,737  | 14,149
Depreciation, amortisation and loss on disposal of fixed assets              | (9,665) | (9,910) | (10,179)
Share of adjusted results in equity accounted associates and joint ventures1 | (291)   | 389     | 164
Adjusted operating profit                                                    | 4,183   | 5,216   | 4,134
Impairment losses                                                            | (3,119) | –       | –
Restructuring costs                                                          | (486)   | (156)   | (415)
Amortisation of acquired customer based and brand intangible assets          | (583)   | (974)   | (1,046)
Other (expense)/income                                                       | (262)   | 213     | 1,052
Operating (loss)/profit (IAS 18 basis)                                       | (267)   | 4,299   | 3,725
Impact of adoption of IFRS 152                                               | (684)   |         |
Operating loss (IFRS 15 basis)                                               | (951)   |         |


Revenue
In 2019, we saw another strong year of revenue growth at 8%, climbing to £355.1m (2018: £330.1m), predominantly through Trade revenue, and more specifically Retailer revenue, as our core business continued to grow.
Trade revenue – comprising Retailers, Home Traders and other revenue – increased by 8% to £304.6m (2018: £281.2m). Retailer revenue grew 9% to £293.0m (2018: £268.7m), driven by the launch of new products, our annual pricing event and further penetration of higher yielding advertising packages. Average Revenue Per Retailer (‘ARPR’) improved by £149 to £1,844 per month (2018: £1,695). Average retailer forecourts were stable, with a marginal increase in the year to 13,240 (2018: 13,213). Trade revenue – comprising Retailers, Home Traders and other revenue – increased by 8% to £304.6m (2018: £281.2m). Retailer revenue grew 9% to £293.0m (2018: £268.7m), driven by the launch of new products, our annual pricing event and further penetration of higher yielding advertising packages. Average Revenue Per Retailer (‘ARPR’) improved by £149 to £1,844 per month (2018: £1,695). Average retailer forecourts were stable, with a marginal increase in the year to 13,240 (2018: 13,213).
ARPR growth of £149 per month was broken down as follows into our three levers: price, stock and product.
——Price: Our price lever contributed £50 (2018: £43) and 34% (2018: 29%) of total ARPR growth. We executed our annual event for the vast majority of customers on 1 April 2018 which included a like-for-like price increase.
——Stock: A small contraction in stock had a negative effect on ARPR growth of £22 (2018: positive effect of £20) and was -15% (2018: +13%) of total ARPR growth. A reduction in the number of new cars registered, lower volumes of preregistration and some consumer uncertainty led to a lack of used car supply in the market during the first half of the year. Retailer stock has seen some level of recovery through the second half of the year although the market is still challenging.
——Product: Our product lever contributed £121 (2018: £86) and 81% (2018: 58%) of total ARPR growth. Our annual event allowed us to introduce two new products, stock exports and profile pages, into all package levels and we also monetised our Dealer Finance product following a trial period. Since 1 April 2018, over 5,000 retailers have opted to pay for the opportunity to advertise their finance offers against their cars, representing 70% of all eligible retailers. In addition, the penetration of our higher yielding Advanced and Premium advertising packages has continued to grow as retailers recognise the value of receiving greater prominence within our search listings. At the end of March, 19% of retailer cars advertised were on one of these levels (March 2018: 12%). There was also a small contribution from our Managing products, which despite re-platforming and continued development in the year, still saw growth to 3,200 customers (2018: 3,000).
Revenue £355.1m +8% (2018: £330.1m)
Operating profit £243.7m +10% (2018 restated: £221.3m)
Cash generated from operations £258.5m +13% (2018 restated: £228.4m)
Cash returned to shareholders £151.1m (2018: £148.4m)

                        | 2019  | 2018  |
----------------------- | ----- | ----- | ------
Revenue                 | £m    | £m    | Change
Retailer                | 293.0 | 268.7 | 9%
Home trader             | 10.2  | 11.4  | (11%)
Other                   | 1.4   | 1.1   | 27%
Trade                   | 304.6 | 281.2 | 8%
Consumer Services       | 28.0  | 29.8  | (6%)
Manufacturer and Agency | 22.5  | 19.1  | 18%
Total                   | 355.1 | 330.1 | 8%


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)
Vessels under construction represent scheduled advance payments to the shipyards as well as certain capitalized expenditures. As of December 31, 2019, the Group has paid to the shipyard $197,637 for the vessels that are under construction and expects to pay the remaining installments as they come due upon each vessel’s keel laying, launching and delivery (Note 23(a)).
The vessels under construction costs as of December 31, 2018 and 2019 are comprised of:

                                                                   | As of  December 31, |
------------------------------------------------------------------ | ------------------- | -------
                                                                   | 2018                | 2019
Progress shipyard installments                                     | 152,075             | 197,637
Onsite supervision costs                                           | 5,766               | 3,879
Critical spare parts, equipment and other vessel delivery expenses | 1,434               | 1,807
Total                                                              | 159,275             | 203,323


The Corporation is also exposed to credit risk in relation to its trade accounts receivable. To mitigate such risk, the Corporation continuously monitors the financial condition of its customers and reviews the credit history or worthiness of each new large customer. The Corporation establishes an allowance for lifetime expected credit losses related to doubtful accounts. The doubtful accounts allowance is calculated on a specific-identification basis for larger customer accounts receivable and on a statistically derived basis for the remainder.
Factors such as the current economic conditions, forward-looking macroeconomic data and historical information (number of overdue days of the customer’s balance outstanding as well as the customer’s collection history) are examined. The Corporation believes that its allowance for doubtful accounts is sufficient to cover the related credit risk.
The Corporation has credit policies in place and has established various credit controls, including credit checks, deposits on accounts and advance billing, and has also established procedures to suspend the availability of services when customers have fully utilized approved credit limits or have violated existing payment terms. Since the Corporation has a large and diversified clientele dispersed throughout its market areas in Canada and the United States, there is no significant concentration of credit risk.
The following table provides further details on trade and other receivables, net of allowance for doubtful accounts:

At August 31,                      | 2019    | 2018
---------------------------------- | ------- | -------
(In thousands of Canadian dollars) | $       | $
Trade accounts receivable          | 74,021  | 95,541
Allowance for doubtful accounts    | (6,759) | (6,497)
                                   | 67,262  | 89,044
Other accounts receivable          | 8,390   | 8,250
                                   | 75,652  | 97,294


The following table shows the fair value of the DB pension plan assets for each category.
Equity securities included approximately $15 million of BCE common shares, or 0.06% of total plan assets, at December 31, 2019 and approximately $8 million of BCE common shares, or 0.03% of total plan assets, at December 31, 2018.
Debt securities included approximately $53 million of Bell Canada debentures, or 0.21% of total plan assets, at December 31, 2019 and approximately $68 million of Bell Canada debentures, or 0.30% of total plan assets, at December 31, 2018.
Alternative investments included an investment in MLSE of $135 million, or 0.53% of total plan assets, at December 31, 2019 and $135 million, or 0.59% of total plan assets, at December 31, 2018.
The Bell Canada pension plan has an investment arrangement which hedges part of its exposure to potential increases in longevity, which covers approximately $4 billion of post-employment benefit obligations.
The fair value of the arrangement is included within other alternative investments. As a hedging arrangement of the pension plan, the transaction requires no cash contributions from BCE.

FOR THE YEAR ENDED DECEMBER 31 | 2019   | 2018
------------------------------ | ------ | ------
Observable markets data        |        |
Equity securities              |        |
Canadian                       | 1,017  | 844
Foreign                        | 4,534  | 3,770
Debt securities                |        |
Canadian                       | 13,216 | 12,457
Foreign                        | 2,385  | 2,004
Money market                   | 219    | 327
Non-observable markets inputs  |        |
Alternative investments        |        |
Private equities               | 2,119  | 1,804
Hedge funds                    | 1,001  | 1,014
Real estate                    | 948    | 758
Other                          | 91     | 93
Total                          | 25,530 | 23,071


ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS
Securities Authorized for Issuance under Equity Compensation Plans
The following table sets forth, as of August 31, 2019, certain information related to our compensation plans under which Accenture plc Class A ordinary shares may be issued
(1) Consists of 68,253 restricted share units
(2) Consists of 19,464,437 restricted share units, with performance-based awards assuming maximum performance, and 3,751 stock options
(3) Does not reflect restricted stock units because these awards have no exercise price.
The remaining information called for by Item 12 will be included in the section captioned “Beneficial Ownership” included in the definitive proxy statement relating to the 2020 Annual General Meeting of Shareholders of Accenture plc to be held on January 30, 2020 and is incorporated herein by reference. Accenture plc will file such definitive proxy statement with the SEC pursuant to Regulation 14A not later than 120 days after the end of our 2019 fiscal year covered by this Form 10-K.

Plan Category                                          | Number of Shares to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (3) | Number of shares Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in 1st Column)
------------------------------------------------------ | --------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------
Equity compensation plans approved by shareholders     |                                                                                |                                                                                |
2001 Share Incentive Plan                              | 68,253                                                                                | ---                                                                             | ---
Amended and Restated 2010 Share Incentive Plan         | 19,468,186                                                                              | 48.105                                                                          | 16,684,906
Amended and Restated 2010 Employee Share Purchase Plan | ---                                                                                | N/A                                                                             | 30,454,275
Equity compensation plans not approved by shareholders | ---                                                                                | N/A                                                                             | ---
Total                                                  | 19,536,441                                                                              |                                                                                | 47,139,181


10. Debt
On March 31, 2017, the Company entered into a
On March 31, 2017, the Company entered into a $400.0 million syndicated credit facility (“Credit Agreement”) that extends to March 2022. Interest on the borrowings under the Credit Agreement accrue at variable rates, based upon LIBOR or a defined “Base Rate,” both determined based upon the rating of the Company’s senior unsecured long-term debt (the “Debt Rating”). The applicable margin to be added to LIBOR ranges from 1.00% to 1.75% (1.25% as of June 30, 2019), and for Base Rate-determined loans, from 0.00% to 0.75% (0.25% as of June 30, 2019). The Company also pays a quarterly commitment fee ranging from 0.125% to 0.400% (0.20% as of June 30, 2019), determined based upon the Debt Rating, of the unused portion of the $400.0 million commitment under the Credit Agreement. In addition, the Company must pay certain letter of credit fees, ranging from 1.00% to 1.75% (1.25% as of June 30, 2019), with respect to letters of credit issued under the Credit Agreement. The Company has the right to voluntarily prepay and re-borrow loans and to terminate or reduce the commitments under the facility. As of June 30, 2019, the Company had $6.0 million of issued letters of credit under the Credit Agreement and $19.7 million of short-term borrowings, with the balance of $374.3 million available to the Company. As of June 30, 2019, the borrowing rate for the Credit Agreement was 3.90%.
The Company is subject to certain financial and restrictive covenants under the Credit Agreement, which, among other things, require the maintenance of a minimum interest coverage ratio of 3.50 to 1.00. The interest coverage ratio is defined in the Credit Agreement as, for any period, the ratio of consolidated earnings before interest, taxes, depreciation and amortization and non-cash net pension expense (“EBITDA”) to consolidated interest expense for such period. The Credit Agreement also requires the Company to maintain a debt to capital ratio of less than 55 percent. The debt to capital ratio is defined in the Credit Agreement as the ratio of consolidated indebtedness, as defined therein, to consolidated capitalization, as defined therein. As of June 30, 2019, the Company was in compliance with all of the covenants of the Credit Agreement.
Long-term debt outstanding as of June 30, 2019 and 2018 consisted of the following:
Aggregate maturities of long-term debt for the five years subsequent to June 30, 2019, are $0.0 million in fiscal years 2020, 2021, $250.0 million in 2022, $300.0 million in 2023 and $0.0 million in 2024.
For the years ended June 30, 2019, 2018 and 2017, interest costs totaled $31.1 million, $31.1 million and $31.1 million, respectively, of which $5.1 million, $2.8 million and $1.3 million, respectively, were capitalized as part of the cost of property, plant, equipment and software.

                                                                                | June 30, |
----------------------------------------------------------------------------------------------------- | -------- | ------
($ in millions)                                                                                | 2019     | 2018
Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at June 30, 2019 and 2018)  | $251.2   | $246.6
Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at June 30, 2019 and 2018) | 299.4    | 299.1
Total                                                                                | 550.6    | 545.7
Less: amounts due within one year                                                                     | —        | —
Long-term debt, net of current portion                                                                | $550.6   | $545.7


RESULTS FROM VESSEL OPERATIONS
During the year ended December 31, 2019, shipping revenues decreased by $10,616 or 2.9% compared to 2018. The decrease primarily resulted from three fewer vessels in operation during most of 2019 compared to 2018 and one less Government of Israel voyage in 2019 compared to 2018. This decrease was partially offset by the addition of two new vessels to our fleet at the beginning of the fourth quarter of 2019.
Reconciliations of TCE revenues, a non-GAAP measure, to shipping revenues as reported in the consolidated statements of operations follows:
Consistent with general practice in the shipping industry, we use TCE revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter.
TCE revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists management in decisions regarding the deployment and use of our vessels and in evaluating their financial performance.

                                 | Years Ended December 31, |
-------------------------------- | ------------------------ | --------
                                 | 2019                     | 2018
Time charter equivalent revenues | $335,133                 | $326,707
Add: Voyage expenses             | 20,414                   | 39,456
Shipping revenues                | $355,547                 | $366,163


5. Receivables, net
The allowance for doubtful accounts includes all specific accounts receivable which we believe are likely not collectable based on known information. The reduction for the unpaid portion of deferred revenue represents future customer service or maintenance obligations which have been billed to customers, but remain unpaid as of the respective balance sheet dates. Deferred revenue on our consolidated balance sheets represents future customer service or maintenance obligations which have been billed and collected as of the respective balance sheet dates.
The note receivable represents the remaining outstanding balance of an original note related to the sale of a product line in 2005 in the amount of $540 thousand. This was fully reserved at the time of the sale as the note’s collectability was not assured. The note receivable is fully reserved at December 31, 2019 and 2018.

(In thousands)                              | December 31, |
------------------------------------------- | ------------ | ---------
                                            | 2019         | 2018
Gross accounts receivables                  | $ 21,193     | $ 14,135
Allowance for returns and doubtful accounts | (265 )       | (277 )
Unpaid portion of deferred revenue          | (10,847 )    | (10,670 )
Note receivable                             | 458          | 458
Allowance for note receivable               | (458 )       | (458 )
Receivables, net                            | $ 10,081     | $ 3,188


5. Net Income (Loss) per Share
The Company calculates basic earnings per share by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period using the treasury stock method. For purposes of this calculation, options to purchase common stock, stock awards, and the Convertible Senior Notes are considered to be common stock equivalents.
Since the Company has the intent and ability to settle the principal amount of the Convertible Senior Notes in cash and any excess in shares of the Company’s common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable.
The conversion spread will have a dilutive impact on net income (loss) per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of $113.75 per share for the Convertible Senior Notes. During the fiscal years ended July 31, 2019 and 2018, the Company’s weighted average common stock price was below the conversion price of the Convertible Senior Notes.
The following table sets forth the computation of the Company’s basic and diluted net income per share for the years endedJ uly 31, 2019, 2018 and 2017 (in thousands, except share and per share amounts):

                                                                       | 2019       | 2018       | 2017
---------------------------------------------------------------------- | ---------- | ---------- | ----------
Numerator:                                                             |            |            |
Net income (loss)                                                      | $20,732    | $(26,743)  | $18,072
Net income (loss) per share:                                           |            |            |
Basic                                                                  | $0.25      | $(0.34)    | $0.24
Diluted                                                                | $0.25      | $(0.34)    | $0.24
Denominator:                                                           |            |            |
Weighted average shares used in computing net income (loss) per share: |            |            |
Basic                                                                  | 81,447,998 | 77,709,592 | 73,994,577
Weighted average effect of diluted stock options                       | 229,035    | —          | 544,520
Weighted average effect of diluted stock awards                        | 1,004,181  | —          | 789,246
Diluted                                                                | 82,681,214 | 77,709,592 | 75,328,343


Segment assets and a reconciliation of segment assets to total assets were as follows:
(1) Segment assets are composed of accounts receivable, inventories, and net property, plant, and equipment.

                         |          | Segment Assets  |
------------------------ | -------- | --------------- | --------
                         |          | Fiscal Year End |
                         | 2019     | 2018            | 2017
                         |          | (in millions)   |
Transportation Solutions | $ 4,781  | $  4,707        | $ 4,084
Industrial Solutions     | 2,100    | 2,049           | 1,909
Communications Solutions | 849      | 959             | 951
Total segment assets(1)  | 7,730    | 7,715           | 6,944
Other current assets     | 1,398    | 1,981           | 2,141
Other non-current assets | 10,566   | 10,690          | 10,318
Total assets             | $ 19,694 | $ 20,386        | $ 19,403


Share Repurchase
On December 18, 2019, the Board of Directors authorized to remove the expiration date to the Company’s common stock share repurchase program and increase the authorized amount by $25.1 million increasing the authorization to repurchase shares up to a total of $50.0 million. As of December 31, 2019, a total of $50.0 million remained available for future share repurchases. We repurchased 1.7 million shares for $95.1 million and 0.4 million shares for $30.0 million in fiscal 2018 and 2017, respectively. There were no shares repurchased in fiscal 2019. CASH FLOWS
A summary of our cash provided by and used in operating, investing, and financing activities is as follows (in thousands):

                                                                                | Years Ended December 31, |
-------------------------------------------------------------------------------- | ------------------------ | ---------
                                                                                | 2019                     | 2018
Net cash provided by (used in) operating activities from continuing operations   | $47,899                  | $151,427
Net cash provided by (used in) operating activities from discontinued operations | 493                      | (156)
Net cash provided by (used in) operating activities                              | 48,392                   | 151,271
Net cash provided by (used in) investing activities from continuing operations   | (393,847)                | (113,592)
Net cash provided by (used in) financing activities from continuing operations   | 338,840                  | (97,134)
EFFECT OF CURRENCY TRANSLATION ON CASH                                           | (1,496)                  | (1,030)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                 | (8,111)                  | (60,485)
CASH AND CASH EQUIVALENTS, beginning of period                                   | 354,552                  | 415,037
CASH AND CASH EQUIVALENTS, end of period                                         | 346,441                  | 354,552
Less cash and cash equivalents from discontinued operations                      | —                        | 5,251
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period              | $346,441                 | $349,301


Principal Accountant Fees and Services
We regularly review the services and fees from our independent registered public accounting firm, KPMG. These services and fees are also reviewed with the Audit Committee annually. In accordance with standard policy, KPMG periodically rotates the individuals who are responsible for our audit. Our Audit Committee has determined that the providing of certain non-audit services, as described below, is compatible with maintaining the independence of KPMG.
In addition to performing the audit of our consolidated financial statements, KPMG provided various other services during fiscal years 2019 and 2018. Our Audit Committee has determined that KPMG’s provisioning of these services, which are described below, does not impair KPMG’s independence from NortonLifeLock. The aggregate fees billed for fiscal years 2019 and 2018 for each of the following categories of services are as follows:
The categories in the above table have the definitions assigned under Item 9 of Schedule 14A promulgated under the Exchange Act, and these categories include in particular the following components:
(1) ‘‘Audit fees’’ include fees for audit services principally related to the year-end examination and the quarterly reviews of our consolidated financial statements, consultation on matters that arise during a review or audit, review of SEC filings, audit services performed in connection with our acquisitions and divestitures and statutory audit fees.
(2) ‘‘Audit related fees’’ include fees which are for assurance and related services other than those included in Audit fees.
(3) ‘‘Tax fees’’ include fees for tax compliance and advice.
(4) ‘‘All other fees’’ include fees for all other non-audit services, principally for services in relation to certain information technology audits.
An accounting firm other than KPMG performs supplemental internal audit services for NortonLifeLock. Another accounting firm provides the majority of NortonLifeLock’s outside tax services..

Fees Billed to NortonLifeLock | FY19        | FY18
----------------------------- | ----------- | -----------
Audit fees(1)                 | $12,464,329 | $11,370,525
Audit related fees(2)         | 1,142,383   | 753,689
Tax fees(3)                   | 161,685     | 469,449
All other fees(4)             | 0           | 311,000
Total fees                    | $13,768,398 | $12,904,663


Capital structure
The Group seeks to enhance shareholder value both by investing in the business so as to improve the return on investment and by managing the capital structure. The capital of the Group consists of equity, debt and a compound financial instrument. The Group aims to access both debt and equity capital markets with maximum efficiency and flexibility.
The key metrics used to monitor the capital structure of the Group are net external debt, debt to assets ratio and interest cover. The Group’s stated medium to long-term preference is for the debt to assets ratio to be within the 40–50 per cent range and interest cover to be greater than 1.60x. The debt to assets ratio has increased to 67.8 per cent in the year due to the deficit on property revaluation. As part of the revised strategy, the Group is looking to reduce net external debt as well as reduce the debt to assets ratio to below 50 per cent. Additional information on the Group’s revised strategy is provided in the chief executive’s review on pages 6 to 8. The interest cover ratio continues to be above the preferred level.
As the Group’s debt is sometimes secured on its interests in joint ventures, these metrics are monitored for the Group including share of joint ventures. Additional information including reconciliations from the relevant IFRS amounts to those including the Group’s share of joint ventures as presented below is provided in presentation of information on pages 157 to 161.
– net external debt

£m – including Group’s share of joint ventures | Group 2019 | Group 2018
---------------------------------------------- | ---------- | ----------
Total borrowings                               | 4,916.8    | 5,331.0
Cash and cash equivalents                      | (223.0)    | (274.3)
Net debt                                       | 4,693.8    | 5,056.7
Less Metrocentre compound financial instrument | (195.4)    | (189.5)
Net external debt                              | 4,498.4    | 4,867.2
Analysed as:                                   |            |
Debt including Group’s share of joint ventures | 4,721.4    | 5,141.5
Cash including Group’s share of joint ventures | (223.0)    | (274.3)
Net external debt                              | 4,498.4    | 4,867.2


Stock-based compensation expense categorized by various equity components for the years ended December 31, 2019, 2018 and 2017 is summarized in the table below (in thousands):
During the years ended December 31, 2019, 2018 and 2017, the Company granted stock options covering zero, zero and 70,000 shares, respectively. The 2017 estimated per share fair value of the grant was $4.62 before estimated forfeitures.
The total fair value of restricted stock awards and units vested during the years ended December 31, 2019, 2018 and 2017 was $30.1 million, $30.4 million and $22.7 million, respectively.
The total intrinsic value of options exercised during the years ended December 31, 2019, 2018 and 2017 was $0.2 million, $1.0 million and $5.5 million, respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares.
As of December 31, 2019, the unrecognized stock-based compensation balance after estimated forfeitures consisted of $0.1 million related to unvested stock options, to be recognized over an estimated weighted average amortization period of 1.5 years, and $40.3 million related to restricted stock awards and units, including performance-based awards and units, to be recognized over an estimated weighted average amortization period of 2.3 years.
As of December 31, 2018, the unrecognized stock-based compensation balance after estimated forfeitures related to unvested stock options was $0.3 million to be recognized over an estimated weighted average amortization period of 2.0 years and $40.6 million related to restricted stock awards and units, including performance-based awards and units, to be recognized over an estimated weighted average amortization period of 2.2 years.

                                       |         | Years Ended December 31, |
-------------------------------------- | ------- | ------------------------ | -------
                                       | 2019    | 2018                     | 2017
Employee stock options                 | $219    | $438                     | $1,980
Restricted stock awards and units      | 29,031  | 27,974                   | 28,909
Employee stock purchase plan           | 2,304   | 2,599                    | 2,573
Total stock-based compensation expense | $31,554 | $31,011                  | $33,462


(b) Credit Quality of Financing Receivables
Gross receivables, excluding residual value, less unearned income categorized by our internal credit risk rating as of July 27, 2019 and July 28, 2018 are summarized as follows (in millions):
We determine the adequacy of our allowance for credit loss by assessing the risks and losses inherent in our financing receivables by portfolio segment. The portfolio segment is based on the types of financing offered by us to our customers, which consist of the following: lease receivables, loan receivables, and financed service contracts.
Our internal credit risk ratings of 1 through 4 correspond to investment-grade ratings, while credit risk ratings of 5 and 6 correspond to non-investment grade ratings. Credit risk ratings of 7 and higher correspond to substandard ratings.

                           |        |        | INTERNAL CREDIT RISK RATING |
-------------------------- | ------ | ------ | --------------------------- | -------
July 27, 2019              | 1 to 4 | 5 to 6 | 7 and Higher                | Total
Lease receivables          | $1,204 | $991   | $35                         | $2,230
Loan receivables           | 3,367  | 1,920  | 151                         | 5,438
Financed service contracts | 1,413  | 939    | 17                          | 2,369
Total                      | $5,984 | $3,850 | $203                        | $10,037


Net Loss Per Ordinary Share
The Company calculates basic and diluted net loss per ordinary share by dividing net loss by the weighted-average number of ordinary shares outstanding during the period. The Company has excluded other potentially dilutive shares, which include outstanding options to purchase ordinary shares and unvested restricted share units (RSUs), from the weighted-average number of ordinary shares outstanding as their inclusion in the computation for all periods would be anti-dilutive due to net losses incurred.
The following potentially dilutive ordinary share equivalents have been excluded from the calculation of diluted weighted-average shares outstanding for the years ended March 31, 2019, 2018 and 2017 as their effect would have been anti-dilutive for the periods presented (in thousands):

                          |       | Year Ended March 31, |
------------------------- | ----- | -------------------- | -----
                          | 2019  | 2018                 | 2017
Share options outstanding | 6,209 | 6,230                | 8,681
Unvested RSUs             | 550   | 33                   | 28


Note 6: Other Expense, Net
The significant components of other expense, net, were as follows:
Interest income in the year ended June 30, 2019, increased compared to the years ended June 24, 2018, and June 25, 2017, primarily as a result of higher yield. Interest expense in the year ended June 30, 2019, increased compared to the year ended June 24, 2018, primarily due to issuance of the $2.5 billion of senior notes. Interest expense in the year ended June 24, 2018, decreased compared to the year ended June 25, 2017, primarily due to the conversions of 2018 and 2041 Convertible Notes as well as the retirement of the 2018 Convertible Notes in May 2018.
The gain on deferred compensation plan related assets in fiscal years 2019, 2018 and 2017 was driven by an improvement in the fair market value of the underlying funds.
The loss on impairment of investments in the year ended June 24, 2018 was the result of a decision to sell selected investments held in foreign jurisdictions in connection with the Company’s cash repatriation strategy following the December 2017 U.S. tax reform.
Net loss on extinguishment of debt realized in the year ended June 25, 2017, was primarily a result of the special mandatory redemption of the Senior Notes due 2023 and 2026, as well as the termination of the Term Loan Agreement.

                                                        | June 30, 2019 | June 24, 2018  | June 25, 2017
------------------------------------------------------- | ------------- | -------------- | -------------
                                                        |               | (in thousands) |
Interest income                                         | $98,771       | $85,813        | $57,858
Interest expense                                        | (117,263)     | (97,387)       | (117,734)
Gains on deferred compensation plan related assets, net | 10,464        | 14,692         | 17,880
Loss on impairment of investments                       | —             | (42,456)       | —
Gains (losses) on extinguishment of debt, net           | 118           | 542            | (36,252)
Foreign exchange gains (losses), net                    | 826           | (3,382)        | (569)
Other, net                                              | (11,077)      | (19,332)       | (11,642)
                                                        | $(18,161)     | $(61,510)      | $(90,459)


The Company recognizes in the Consolidated Financial Statements only those tax positions determined to be “more likely than not” of being sustained upon examination based on the technical merits of the positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $68.2. Interest and penalties related to unrecognized tax benefits were $1.8 in 2019 and are classified as a component of income tax expense. Accrued interest and penalties were $8.7 at December 31, 2019 and $6.9 at December 31, 2018. During the next twelve months, it is reasonably possible that the unrecognized tax benefits may decrease by a net $6.3, mainly due to anticipated statute of limitations lapses in various jurisdictions.
The Company and its subsidiaries are subject to examinations for U.S. federal income tax as well as income tax in various state, city and foreign jurisdictions. The Company’s federal income tax returns for 2016 through the current period remain open to examination and the relevant state, city and foreign statutes vary. The Company does not expect the assessment of any significant additional tax in excess of amounts reserved.
The Tax Act was signed into U.S. law on December 22, 2017. The Tax Act contains provisions which impact the Company’s income taxes including a reduction in the U.S. federal corporate income tax rate from 35% to 21%, a one-time deemed mandatory repatria- tion tax imposed on all undistributed foreign earnings, and the introduction of a modified territorial taxation system.
The SEC released Staff Accounting Bulletin No. 118 (“SAB 118”) on December 22, 2017 to provide guidance where the accounting under ASC 740, Income Taxes, is incomplete for certain income tax effects of the Tax Act upon issuance of financial statements for the reporting period in which the Tax Act was enacted. SAB 118 provides that if a company could determine a reasonable estimate, that estimate should be reported as a provisional amount and adjusted during a measurement period. If a company is unable to determine a reasonable estimate, no related provisional amounts would be recorded until a reasonable estimate can be determined, within the measurement period. The measurement period extends until all necessary information has been obtained, prepared, and analyzed, but no longer than 12-months from the date of enactment of the Tax Act.
The Company intends to distribute all historical unremitted foreign earnings up to the amount of excess foreign cash, as well as all future foreign earnings that can be repatriated without incremental U.S. federal tax cost. Any remaining outside basis differences relating to the Company’s investments in foreign subsidiaries are no longer expected to be material and will be indefinitely reinvested.

                                                                       | 2019   | 2018   | 2017
---------------------------------------------------------------------- | ------ | ------ | ------
Beginning balance                                                      | $ 63.6 | $ 52.2 | $ 38.7
Additions for tax positions of prior periods                           | 2.9    | 2.4    | 24.8
Additions for tax positions of the current period                      | 4.2    | 6.9    | 4.2
Additions due to acquisitions                                          | 1.9    | 4.4    | —
Reductions for tax positions of prior periods                          | (0.3)  | (0.4)  | (11.2)
Reductions attributable to settlements with taxing authorities         | —      | —      | (1.5)
Reductions attributable to lapses of applicable statute of limitations | (2.5)  | (1.9)  | (2.8)
Ending balance                                                         | $ 69.8 | $ 63.6 | $ 52.2


Note 19 Goodwill
The following table provides details about the changes in the carrying amounts of goodwill for the years ended December 31, 2019 and 2018. BCE’s groups of CGUs correspond to our reporting segments.

                             | BELL WIRELESS | BELL  WIRELINE | BELL  MEDIA | BCE
---------------------------- | ------------- | -------------- | ----------- | ------
Balance at January 1, 2018   | 3,032         | 4,497          | 2,899       | 10,428
Acquisitions and other       | 16            | 182            | 32          | 230
Balance at December 31, 2018 | 3,048         | 4,679          | 2,931       | 10,658
Acquisitions and other       | –             | (6)            | 15          | 9
Balance at December 31, 2019 | 3,048         | 4,673          | 2,946       | 10,667


Restricted Stock Units
A summary of the Company’s restricted stock unit activity is as follows:
Performance-Based Restricted Stock Units
Performance-based restricted stock units are eligible to vest at the end of each fiscal year in a three-year performance period based on the Company’s annual growth rate in net sales and non-GAAP diluted earnings per share (subject to certain adjustments) over a multiple of four times the related results for the fourth quarter of 2018 relative to the growth rates for a peer group of companies for the same metrics and periods.
For the performance-based restricted stock units granted in 2019, 60% of each performance-based award is subject to the net sales metric for the performance period and 40% is subject to the non-GAAP diluted earnings per share metric for the performance period. The maximum percentage for a particular metric is2 50% of the target number of units subject to the award related to that metric, however, vesting of the performance stock units is capped at 30% and 100%, respectively, of the target number of units subject to the award in years one and two, respectively, of the three-year performance period.
As of December 31, 2019, the Company believes that it is probable that the Company will achieve performance metrics specified in the award agreement based on its expected revenue and non-GAAP diluted EPS results over the performance period and calculated growth rates relative to its peers’ expected results based on data available, as defined in the award agreement.

                                 | Number of Shares | Weighted-Average Grant-Date
-------------------------------- | ---------------- | ---------------------------
                                 | (in thousands)   | Fair Value per Share
Outstanding at December 31, 2018 | 3,263            | $20.23
Granted                          | 1,580            | 23.23
Vested                           | (1,541)          | 20.16
Canceled                         | (378)            | 21.52
Outstanding at December 31, 2019 | 2,924            | 21.72


11. INCOME TAX
The following table summarizes our U.S. and foreign components of income (loss) from continuing operations before income taxes (in millions):

              |       | Year Ended December 31 |
------------- | ----- | ---------------------- | -----
              | 2019  | 2018                   | 2017
United States | $65.8 | $62.8                  | $45.6
Foreign       | 0.3   | 0.1                    | (0.1)
Total         | $66.1 | $62.9                  | $45.5


Review of operations
The Group’s operating performance for the fiscal year compared to last year is as follows:
1. The Directors believe the information additional to IFRS measures included in the report is relevant and useful in measuring the financial performance of the Group. These include: EBITDA, NPATA and EPSa. These measures have been defined in the Chairperson and Chief Executive Officer’s Joint Report on page 2.
In 2019 the business continued to deliver strong results after the record 2018 year. Revenues and EBITDA were in line with guidance. Further details on the Group’s results are outlined in the Chairperson and Chief Executive Officer’s Joint Report on page 2.
On 1 June 2019, Hansen acquired the Sigma Systems business (Sigma) and one month of these results are included in the FY19 result. Also included in the results are the transaction and other restructuring costs related to the acquisition, which we have identified as separately disclosed items in our results.
This acquisition has also resulted in the re-balancing of the Group’s market portfolio which, post the acquisition of Enoro in FY18, was initially weighted towards the Utilities sector. With Sigma’s revenues concentrated in the Communications sector, the Group’s revenue portfolio is now re-balanced to ensure greater diversification across multiple industries, regions and clients.
The Group has generated operating cash flows of $39.7 million, which has been used to retire external debt and fund dividends of $12.6 million during the financial year. With the introduction of a higher level of debt in June 2019 to fund the Sigma acquisition, the Group has, for the first time, used the strength of the Group’s balance sheet to fund 100% of an acquisition. With the Group’s strong cash generation, Hansen is well placed to service and retire the debt over the coming years.

                                       | 2019       | 2018       |
-------------------------------------- | ---------- | ---------- | ----------
                                       | A$ Million | A$ Million | Variance %
Operating revenue                      | 231.3      | 230.8      | 0.2%
EBITDA1                                | 53.0       | 59.3       | (10.6%)
NPAT                                   | 21.5       | 28.9       | (25.6%)
NPATA1                                 | 31.2       | 38.0       | (17.9%)
Basic earnings per share (EPS) (cents) | 10.9       | 14.8       | (26.4%)
Basic EPSa1 (cents)                    | 15.8       | 19.4       | (18.6%)


Note 10. Prepaid Expenses
Prepaid expenses consisted of the following (in thousands):

                    | December 31, |
------------------- | ------------ | -------
                    | 2019         | 2018
Prepaid maintenance | $6,218       | $5,888
Prepaid insurance   | 5,321        | 4,500
Prepaid software    | 4,236        | 3,499
Prepaid rent        | 421          | 3,471
Prepaid other       | 4,672        | 6,396
                    | $20,868      | $23,754


Fiscal 2017 Restructuring Plan
During Fiscal 2017 and in the context of acquisitions made in Fiscal 2017, we began to implement restructuring activities to streamline our operations (collectively referred to as the Fiscal 2017 Restructuring Plan). The Fiscal 2017 Restructuring Plan charges relate to workforce reductions and facility consolidations. These charges require management to make certain judgments and estimates regarding the amount and timing of restructuring charges or recoveries. Our estimated liability could change subsequent to its recognition, requiring adjustments to the expense and the liability recorded. On a quarterly basis, we conduct an evaluation of the related liabilities and expenses and revise our assumptions and estimates as appropriate.
Since the inception of the plan, $41.9 million has been recorded within "Special charges (recoveries)". We do not expect to incur any further significant charges relating to this plan.
A reconciliation of the beginning and ending liability for the year ended June 30, 2019 and 2018 is shown below.

Fiscal 2017 Restructuring Plan                  | Workforce reduction | Facility costs | Total
----------------------------------------------- | ------------------- | -------------- | --------
Balance payable as at June 30, 2017             | $10,045             | $1,369         | $11,414
Accruals and adjustments                        | 3,432               | 3,775          | 7,207
Cash payments                                   | (12,342)            | (1,627)        | (13,969)
Foreign exchange and other non-cash adjustments | 455                 | (86)           | 369
Balance payable as at June 30, 2018             | $1,590              | $3,431         | $5,021
Accruals and adjustments                        | (254)               | 1,152          | 898
Cash payments                                   | (213)               | (1,290)        | (1,503)
Foreign exchange and other non-cash adjustments | (77)                | (344)          | (421)
Balance payable as at June 30, 2019             | $1,046              | $2,949         | $3,995


22 Trade and Other Payables
Trade payables are non interest-bearing and are normally settled on 30-day terms or as otherwise agreed with suppliers.

                                           | 31 March 2019 | 31 March 2018
------------------------------------------ | ------------- | -------------
                                           | $M            | $M
Current                                    |               |
Trade payables                             | 35.8          | 39.6
Accruals                                   | 46.6          | 68.4
Social security and other taxes            | 12.7          | 14.9
Other payables                             | 7.1           | 11.2
Total current trade and other payables     | 102.2         | 134.1
Non-Current                                |               |
Other payables                             | 10.1          | 8.2
Total non-current trade and other payables | 10.1          | 8.2


Orders and revenue showed strong and similar development in fiscal 2019: clear growth; increases in all businesses led by the imaging business, and growth in all three reporting regions, notably including in China and in the U. S. which benefited from positive currency translation effects.
Adjusted EBITA was clearly up compared to fiscal 2018, with increases in the imaging and advance therapies businesses. The diagnostics business recorded lower Adjusted EBITA year-over-year due mainly to Combined Management Report 13 increases in costs related to its Atellica Solution platform. Severance charges were € 57 million in fiscal 2019 and € 96 million in fiscal 2018. The order backlog for Siemens Healthineers was € 18 billion at the end of the fiscal year, of which € 6 billion are
expected to be converted into revenue in fiscal 2020.
While demand in the markets served by Siemens Healthineers continued to grow in fiscal 2019, these markets also showed price pressure on new purchases and increased utilization rates for installed systems. All major served markets were in a healthy state, which contributed to a slightly higher market growth in Europe, C. I. S., Africa, Middle East and the Americas, most notably in the imaging and advanced therapies markets. The markets in Asia, Australia grew moderately. Markets in the U. S. showed slight growth in the imaging and clear growth in the advanced therapies
business, with continued moderate market growth in diagnostics.
Still, the U. S. market environment remained challenging
as pressure on reimbursement systems and the focus on more
extended utilization of equipment at customers’ sites persist.
Government initiatives and programs, together with a growing private market segment contributed to the re-stabilization and growth of markets in China. For the healthcare industry as a whole, the trend towards consolidation continued in fiscal 2019,
leading to higher utilization rates at customers’ sites, which are counterbalancing procedure volume growth in developed markets. Competition among the leading healthcare companies remained at a high level. For fiscal 2020, Siemens Healthineers expects the imaging and advanced therapies equipment markets to stay on a moderate growth path, while the diagnostics market is expected to grow clearly. Siemens Healthineers’ markets will continue to benefit from the long-term trends mentioned above, but are restricted by public spending constraints and by consolidation among healthcare providers.
On a geographic basis,
Siemens Healthineers expects markets in the region Asia, Australia to be the major growth driver. For China, Siemens Healthineers expects continuing strong growth due to rising government spending on healthcare, promotion of the private segment and wider access to healthcare services nationwide, pronounced effects of an aging population, and a growing incidence of chronic diseases. Growth in the U. S. is expected to be held back by continued pressure to increase utilization of existing equipment, reduced reimbursement rates and uncertainty about policies. For Europe, Siemens Healthineers expects slight growth, with a likely increased emphasis on equipment replacement and business with large customers such as hospital chains.

                      |        | Fiscal year |        | % Change
--------------------- | ------ | ----------- | ------ | --------
(in millions of €)    | 2019   | 2018        | Actual | Comp.
Orders                | 15,853 | 14,506      | 9 %    | 7 %
Revenue               | 14,517 | 13,425      | 8 %    | 6 %
Adjusted EBITA        | 2,461  | 2,221       | 11 %   |
Adjusted EBITA margin | 17.0 % | 16.5 %      |        |


Consolidated income statement
For the year ended 31 March 2019
1 The Group has adopted IFRS 9 ‘Financial Instruments’, IFRS 15 ‘Revenue from Contracts with Customers’, and IFRS 16 ‘Leases’ from 1 April 2018. The year ended 31 March 2018 has been restated for IFRS 16 which was implemented using the fully retrospective method. For further information on the impact of the change in accounting policies, see note 2 of these consolidated financial statements.

                                                                 | Note | 2019    | (Restated)1 2018
---------------------------------------------------------------- | ---- | ------- | ----------------
                                                                 |      | £m      | £m
Revenue                                                          | 5    | 355.1   | 330.1
Administrative expenses                                          |      | (112.3) | (108.8)
Share of profit from joint ventures                              | 16   | 0.9     | –
Operating profit                                                 | 6    | 243.7   | 221.3
Finance costs                                                    | 9    | (10.2)  | (10.6)
Profit on the sale of subsidiary                                 | 10   | 8.7     | –
Profit before taxation                                           |      | 242.2   | 210.7
Taxation                                                         | 11   | (44.5)  | (39.6)
Profit for the year attributable to equity holders of the parent |      | 197.7   | 171.1
Basic earnings per share                                         | 12   |         |
From profit for the year (pence per share)                       |      | 21.00   | 17.74
Diluted earnings per share                                       | 12   |         |
From profit for the year (pence per share)                       |      | 20.94   | 17.68


Liquidity risk
Liquidity risk is managed to enable the Group to meet future payment obligations when financial liabilities fall due. Liquidity analysis is conducted to determine that sufficient headroom is available to meet the Group’s operational requirements and committed investments. The Group treasury policy aims to meet this objective by maintaining adequate cash, marketable securities and committed facilities. Undrawn borrowing facilities are detailed in note 23. The Group’s policy is to seek to optimise its exposure to liquidity risk by balancing its exposure to interest rate risk and to refinancing risk. In effect the Group seeks to borrow for as long as possible at the lowest acceptable cost.
Group policy is to maintain a weighted average debt maturity of over five years. At 31 December 2019, the maturity profile of Group debt showed an average maturity of five years (2018: six years). The Group regularly reviews the maturity profile of its borrowings and seeks to avoid concentration of maturities through the regular replacement of facilities and by arranging a selection of maturity dates. Refinancing risk may be reduced by doing so prior to the contracted maturity date. The change in valuation of an asset used as security for a debt facility may impact the Group’s ability to refinance that debt facility at the same quantum as currently outstanding.
The Group does not use supplier financing arrangements to manage liquidity risk.
The tables below set out the maturity analysis of the Group’s financial liabilities based on the undiscounted contractual obligations to make payments of interest and to repay principal. Where interest payment obligations are based on a floating rate, the rates used are those implied by the par yield curve for the relevant currency. Where payment obligations are in foreign currencies, the spot exchange rate at the balance sheet date is used.

                                |               |           |           |              | 2019
------------------------------- | ------------- | --------- | --------- | ------------ | ---------
£m                              | Within 1 year | 1–2 years | 2–5 years | Over 5 years | Total
Borrowings (including interest) | (249.5)       | (1,091.3) | (2,600.9) | (1,716.1)    | (5,657.8)
Finance lease obligations       | (5.3)         | (5.3)     | (14.3)    | (104.8)      | (129.7)
Other financial liabilities     | (15.4)        | –         | –         | (1.2)        | (16.6)
Net derivative payments         | (34.3)        | (28.8)    | (78.4)    | (222.9)      | (364.4)
                                | (304.5)       | (1,125.4) | (2,693.6) | (2,045.0)    | (6,168.5)
                                |               |           |           |              |
                                |               |           |           |              | 2018
£m                              | Within 1 year | 1–2 years | 2–5 years | Over 5 years | Total
Borrowings (including interest) | (237.8)       | (245.2)   | (3,259.1) | (2,408.0)    | (6,150.1)
Finance lease obligations       | (4.4)         | (4.4)     | (13.4)    | (104.8)      | (127.0)
Other financial liabilities     | (6.1)         | (1.2)     | –         | –            | (7.3)
Net derivative payments         | (37.2)        | (33.5)    | (74.0)    | (248.2)      | (392.9)
                                | (285.5)       | (284.3)   | (3,346.5) | (2,761.0)    | (6,677.3)
                                |               |           |           |              |


21. Segment and Geographical Information
The Company has determined that it operates in a single operating and reportable segment.
The following table presents total external revenues by geographic location, based on the location of the Company’s merchants:
Expressed in US $000's except share and per share amounts

               | Years ended       |        |                   |
-------------- | ----------------- | ------ | ----------------- | ------
               | December 31, 2019 |        | December 31, 2018 |
               | $                 | %      | $                 | %
Canada         | 96,168            | 6.1%   | 70,774            | 6.6%
United States  | 1,079,520         | 68.4%  | 755,454           | 70.4%
United Kingdom | 103,498           | 6.6%   | 69,596            | 6.5%
Australia      | 68,571            | 4.3%   | 47,937            | 4.5%
Rest of World  | 230,416           | 14.6%  | 129,468           | 12.0%
               | 1,578,173         | 100.0% | 1,073,229         | 100.0%


RSUs/PSUs
RSUs/PSUs are granted to executives and other eligible employees. The value of an RSU/PSU at the grant date is equal to the value of one BCE common share. Dividends in the form of additional RSUs/PSUs are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividend paid on BCE common shares. Executives and other eligible employees are granted a specific number of RSUs/PSUs for a given performance period based on their position and level of contribution. RSUs/PSUs vest fully after three years of continuous employment from the date of grant and, in certain cases, if performance objectives are met, as determined by the board of directors.
The following table summarizes outstanding RSUs/PSUs at December 31, 2019 and 2018.
(1) The weighted average fair value of the RSUs/PSUs granted was $58 in 2019 and $57 in 2018
(2) The RSUs/PSUs vested on December 31, 2019 were fully settled in February 2020 with BCE common shares and/or DSUs.

NUMBER OF RSUs/PSUs      | 2019      | 2018
------------------------ | --------- | -----------
Outstanding, January 1   | 2,812,697 | 2,740,392
Granted (1)              | 975,348   | 1,006,586
Dividends credited       | 149,648   | 149,258
Settled                  | (932,133) | (1,027,321)
Forfeited                | (90,442)  | (56,218)
Outstanding, December 31 | 2,915,118 | 2,812,697
Vested, December 31 (2)  | 904,266   | 880,903