(13) (Loss) Earnings Per Common Share
Basic and diluted (loss) earnings per common share for the years ended December 31, 2019, 2018 and 2017 were calculated as follows:
(1) For the year ended December 31, 2019 and December 31, 2018, we excluded from the calculation of diluted loss per share 3.0 million shares and 4.6 million shares, respectively, potentially issuable under incentive compensation plans or convertible securities, as their effect, if included, would have been anti-dilutive.
Our calculation of diluted (loss) earnings per common share excludes shares of common stock that are issuable upon exercise of stock options when the exercise price is greater than the average market price of our common stock. We also exclude unvested restricted stock awards that are antidilutive as a result of unrecognized compensation cost. Such shares were 6.8 million, 2.7 million and 4.7 million for 2019, 2018 and 2017, respectively.

                                                                                |           | Years Ended December, 31                                             |
----------------------------------------------------------------------------------------------- | --------- | -------------------------------------------------------------------- | -------
                                                                                | 2019      | 2018                                                                 | 2017
                                                                                |           | (Dollars in millions, except per share amounts, shares in thousands) |
Loss income (Numerator):                                                                        |           |                                                                      |
Net (loss) income                                                                               | $(5,269)  | (1,733)                                                              | 1,389
Net (loss) income applicable to common stock for computing basic earnings per common share      | (5,269)   | (1,733)                                                              | 1,389
Net (loss) income as adjusted for purposes of computing diluted earnings per common share       | $(5,269)  | (1,733)                                                              | 1,389
Shares (Denominator):                                                                           |           |                                                                      |
Weighted average number of shares:                                                              |           |                                                                      |
Outstanding during period                                                                       | 1,088,730 | 1,078,409                                                            | 635,576
Non-vested restricted stock                                                                     | (17,289)  | (12,543)                                                             | (7,768)
Weighted average shares outstanding for computing basic earnings per common share               | 1,071,441 | 1,065,866                                                            | 627,808
Incremental common shares attributable to dilutive securities:                                  |           |                                                                      |
Shares issuable under convertible securities                                                    | —         | —                                                                    | 10
Shares issuable under incentive compensation plans                                              | —         | —                                                                    | 875
Number of shares as adjusted for purposes of computing diluted (loss) earnings per common share | 1,071,441 | 1,065,866                                                            | 628,693
Basic (loss) earnings per common share                                                          | $(4.92)   | (1.63)                                                               | 2.21
Diluted (loss) earnings per common share(1)                                                     | $(4.92)   | (1.63)                                                               | 2.21


3. EARNINGS PER SHARE:
Basic earnings per share available to common shareholders is calculated by dividing net income less preferred stock dividend requirements by the weighted average common shares outstanding for each period. Diluted earnings per share available to common shareholders is calculated by dividing income from operations less preferred stock dividend requirements (when anti-dilutive) by the sum of the weighted average common shares outstanding and the weighted average dilutive equity awards.

                                                        | For Fiscal Years |
------------------------------------------------------- | ---------------- | ----------
                                                        | 2019 Basic       | 2018 Basic
Weighted average common shares outstanding              | 597,961          | 660,925
Net income available to common shareholders             | $3,202,943       | $3,614,610
Net earnings per share available to common shareholders | $5.36            | $5.47


Note 6 Interest expense
Included in interest expense on long-term debt is interest on lease liabilities of $220 million for 2019 and interest on finance leases of $142 million for 2018.
Capitalized interest was calculated using an average rate of 3.96% and 3.88% for 2019 and 2018, respectively, which represents the weighted average interest rate on our outstanding long-term debt.

FOR THE YEAR ENDED DECEMBER 31     | 2019    | 2018
---------------------------------- | ------- | -------
Interest expense on long-term debt | (1,024) | (918)
Interest expense on other debt     | (153)   | (133)
Capitalized interest               | 45      | 51
Total interest expense             | (1,132) | (1,000)


Pre-tax income from international operations was $214 million, $890 million, and $353 million for fiscal 2019, 2018, and 2017, respectively.
The components of income tax expense (benefit) recorded in continuing operations are as follows:
As of December 28, 2018, we have completed our accounting for the effects of the enactment of the Tax Cuts and Jobs Act (H.R.1) (the 2017 Tax Act) in accordance with U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 118, and the amounts are no longer considered provisional. We will continue to evaluate any new guidance from the U.S. Department of Treasury and the Internal Revenue Service (IRS) as issued.

                             |                | Year Ended     |
---------------------------- | -------------- | -------------- | --------------
(In millions)                | March 29, 2019 | March 30, 2018 | March 31, 2017
Current:                     |                |                |
Federal                      | $73            | $1,011         | $108
State                        | 15             | 40             | 6
International                | 74             | 107            | 68
Total                        | 162            | 1,158          | 182
Deferred:                    |                |                |
Federal                      | (52)           | (1,664)        | (177)
State                        | (2)            | (151)          | (17)
International                | (16)           | (33)           | (14)
Total                        | (70)           | (1,848)        | (208)
Income tax expense (benefit) | $92            | $(690)         | $(26)


Unrecognized Tax Benefits
We are providing the following disclosures related to our unrecognized tax benefits and the effect on our effective income tax rate if recognized:
In 2019, our unrecognized tax benefit increased by $33.9 million, primarily related to increases in North America. In 2018, we increased our unrecognized tax benefit by $142.1 million, also primarily related to North America.
If the unrecognized tax benefits at December 31, 2019 were recognized, our income tax provision would decrease by $343.5 million, resulting in a substantially lower effective tax rate. Based on the potential outcome of the Company’s global tax examinations and the expiration of the statute of limitations for specific jurisdictions, it is possible that the unrecognized tax benefits could change significantly within the next 12 months. Absent resolution of significant tax controversy, the associated impact on the reserve balance is estimated to be a decrease in the range of $4.6 to $6.6 million during 2020.
We recognize interest and penalties associated with unrecognized tax benefits in our income tax provision in the Consolidated Statements of Operations. Interest and penalties recorded were $13.1 million, negligible and $4.0 million, respectively in 2019, 2018 and 2017. We had gross liabilities, for interest and penalties, of $56.2 million at December 31, 2019, $18.2 million at December 31, 2018 and $14.8 million at December 31, 2017. The increase in the gross liability related to interest and penalties from 2018 to 2019 was primarily due to a reclass within other non-current liabilities from unrecognized tax benefits to interest and penalties which had no impact on the overall Consolidated Balance Sheets or Consolidated Statement of Operations.
The majority of the unrecognized tax benefit amount of $390.3 million relates to North America.

                                                                |         | Year Ended December 31, |
--------------------------------------------------------------- | ------- | ----------------------- | -------
(in millions)                                                   | 2019    | 2018                    | 2017
Beginning balance of unrecognized tax benefits                  | $ 356.4 | $ 214.3                 | $ 162.6
Additions for tax positions of current year                     | 3.4     | 106.0                   | 7.3
Additions for tax positions of prior years                      | 47.9    | 59.5                    | 49.3
Reductions for tax positions of prior years                     | (16.0)  | (7.0)                   | (4.3)
Reductions for lapses of statutes of limitation and settlements | (1.4)   | (16.4)                  | (0.6)
Ending balance of unrecognized tax benefits                     | $ 390.3 | $ 356.4                 | $ 214.3


Note 16. Accrued Employee Compensation and Benefits
Accrued employee compensation and benefits consisted of the following (in thousands):

                                             | December 31, |
-------------------------------------------- | ------------ | -------
                                             | 2019         | 2018
Accrued compensation                         | $38,186      | $34,095
Accrued bonus and commissions                | 27,039       | 19,835
Accrued vacation                             | 20,647       | 19,019
Accrued employment taxes                     | 16,468       | 15,598
Accrued severance and related costs (Note 5) | 485          | 793
Other                                        | 6,766        | 6,473
                                             | $109,591     | $95,813


Note 15 Leases
RIGHT-OF-USE ASSETS
BCE’s significant right-of-use assets under leases are satellites, office premises, land, cellular tower sites, retail outlets and OOH advertising spaces. Right-of-use assets are presented in Property, plant and equipment in the statement of financial position.

FOR THE YEAR ENDED DECEMBER 31, 2019     | NETWORK INFRASTRUCTURE AND EQUIPMENT | LAND AND BUILDINGS | TOTAL
---------------------------------------- | ------------------------------------ | ------------------ | -----
COST                                     |                                      |                    |
January 1, 2019                          | 3,329                                | 2,453              | 5,782
Additions                                | 527                                  | 513                | 1,040
Transfers                                | (233)                                | –                  | (233)
Acquired through business combinations   | –                                    | 8                  | 8
Lease terminations                       | (12)                                 | (38)               | (50)
Impairment losses recognized in earnings | (2)                                  | (3)                | (5)
December 31, 2019                        | 3,609                                | 2,933              | 6,542
ACCUMULATED DEPRECIATION                 |                                      |                    |
January 1, 2019                          | 1,042                                | 536                | 1,578
Depreciation                             | 373                                  | 303                | 676
Transfers                                | (111)                                | –                  | (111)
Lease terminations                       | (3)                                  | (22)               | (25)
December 31, 2019                        | 1,301                                | 817                | 2,118
NET CARRYING AMOUNT                      |                                      |                    |
January 1, 2019                          | 2,287                                | 1,917              | 4,204
December 31, 2019                        | 2,308                                | 2,116              | 4,424


Non‐executive Director fees are paid from an aggregate annual fee pool of $4,000,000, as approved by shareholders at the AGM on 18 November 2010. Total board and committee fees paid during F19 were $2,859,903 (refer to section 5.1).
Non‐executive Directors do not receive variable pay and no Directors’ fees are paid to Executive Directors.
In recognition of the equal importance and workload of all of the Board’s Committees, the Board reviewed Non‐executive Director fees and determined to increase Chair and Member fees for the People Performance Committee and Sustainability Committee as detailed in the table below, effective 1 July 2019. The table below provides a summary of F19 and F20 Board and Committee fees:

                                                | CHAIR       |             | MEMBER      |
----------------------------------------------- | ----------- | ----------- | ----------- | -----------
                                                | F19 FEE     | F20 FEE     | F19 FEE     | F20 FEE
BOARD AND COMMITTEE FEES ($)                    | INCL. SUPER | INCL. SUPER | INCL. SUPER | INCL. SUPER
Board                                           | $790,531    | $790,531    | $254,990    | $254,990
Audit, Risk Management and Compliance Committee | $65,000     | $65,000     | $32,500     | $32,500
People Performance Committee                    | $54,525     | $65,000     | $27,265     | $32,500
Sustainability Committee                        | $45,000     | $65,000     | $22,500     | $32,500
Nomination Committee                            | Nil         | Nil         | Nil         | Nil


8. Stock option and award plan: (Continued)
A summary of the Company’s non-vested restricted stock awards as of December 31, 2019 and the changes during the year ended December 31, 2019 are as follows:
The weighted average per share grant date fair value of restricted stock granted was $53.53 in 2019 (0.5 million shares) $44.02 in 2018 (0.5 million shares) and $40.52 in 2017 (0.5 million shares). The fair value was determined using the quoted market price of the Company’s common stock on the date of grant. Valuations were obtained to determine the fair value for the shares granted to the Company’s CEO that are subject to the total shareholder return of the Company’s common stock compared to the total shareholder return of the Nasdaq Telecommunications Index. The fair value of shares of restricted stock vested in 2019, 2018 and 2017 was $20.8 million, $19.1 million and $12.6 million, respectively.
Equity-based compensation expense related to stock options and restricted stock was $18.5 million, $17.7 million, and $13.3 million for 2019, 2018, and 2017, respectively. The income tax benefit related to stock options and restricted stock was $3.0 million, $1.8 million, and $2.5 million for 2019, 2018, and 2017, respectively. The Company capitalized compensation expense related to stock options and restricted stock for 2019, 2018, and 2017 of $1.8 million, $1.7 million and $1.2 million, respectively. As of December 31, 2019, there was $31.7 million of total unrecognized compensation cost related to non-vested equity-based compensation awards. That cost is expected to be recognized over a weighted average period of 1.9 years.

Non-vested awards               | Shares    | Weighted-Average Grant Date Fair Value
------------------------------- | --------- | --------------------------------------
Non-vested at December 31, 2018 | 1,187,586 | $41.12
Granted                         | 473,550   | $53.53
Vested                          | (365,223) | $41.83
Forfeited                       | (12,632)  | $50.49
Non-vested at December 31, 2019 | 1,283,281 | $45.40


20. DIVIDENDS
A regular dividend of 3 cents per share has been declared. This final dividend of 3 cents per share, partially franked to 2.6 cents per share, was announced to the market on 23 August 2019. The amount declared has not been recognised as a liability in the accounts of Hansen Technologies Ltd as at 30 June 2019.
1. The final dividend paid of 4 cents per share, franked to 4 cents, comprised of an ordinary dividend of 3 cents per share, together with a special dividend of 1 cent per share.
The above available amounts are based on the balance of the dividend franking account at year end adjusted for: • franking credits that will arise from the payment of any current tax liability; • franking debits that will arise from the payment of any dividends recognised as a liability at year end; • franking credits that will arise from the receipt of any dividends recognised as receivables at year end; and • franking credits that the entity may be prevented from distributing in subsequent years.

                                                                                | 2019   | 2018
---------------------------------------------------------------------------------------------------------------------------------- | ------ | ------
                                                                                | $’000  | $’000
Dividends paid during the year (net of dividend re-investment)                                                                     |        |
4 cent per share final dividend paid 27 September 2018 – fully franked1                                                            | 7,319  |
3 cent per share final dividend paid 30 September 2017 – fully franked                                                             |        | 5,175
3 cent per share interim dividend paid 29 March 2019 – fully franked                                                               | 5,318  |
3 cent per share interim dividend paid 29 March 2018 – fully franked                                                               |        | 5,217
                                                                                | 12,637 | 10,392
Proposed dividend not recognised at the end of the year                                                                            | 5,922  | 7,865
Dividends franking account                                                                                |        |
30% franking credits, on a tax paid basis, are available to shareholders of Hansen Technologies Ltd for subsequent financial years | 1,586  | 3,125


Financial risk management
The Group’s treasury function centrally manages the Group’s funding requirement, net foreign exchange exposure, interest rate management exposures and counterparty risk arising from investments and derivatives.
Treasury operations are conducted within a framework of policies and guidelines authorised and reviewed by the Board, most recently in July 2018
A treasury risk committee comprising of the Group’s Chief Financial Officer, Group General Counsel and Company Secretary, Group Financial Controller, Group Treasury Director and Group Director of Financial Controlling and Operations meets three times a year to review treasury activities and its members receive management information relating to treasury activities on a quarterly basis. The Group’s accounting function, which does not report to the Group Treasury Director, provides regular update reports of treasury activity to the Board. The Group’s internal auditor reviews the internal control environment regularly.
The Group uses a number of derivative instruments for currency and interest rate risk management purposes only that are transacted by specialist treasury personnel. The Group mitigates banking sector credit risk by the use of collateral support agreements.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial asset leading to a financial loss for the Group. The Group is exposed to credit risk from its operating activities and from its financing activities, the Group considers its maximum exposure to credit risk at 31 March to be:
Expected credit loss
The Group has financial assets classified and measured at amortised cost and fair value through other comprehensive income that are subject to the expected credit loss model requirements of IFRS 9. Cash at bank and in hand and certain other investments are both classified and measured at amortised cost and subject to these impairment requirements. However, the identified expected credit loss is considered to be immaterial.
Information about expected credit losses for trade receivables and contract assets can be found under “operating activities” on page 164.

                                        | 2019 €m | 2018 €m
--------------------------------------- | ------- | -------
Cash at bank and in hand                | 2,434   | 2,197
Repurchase agreements and bank deposits | 2,196   | –
Money market funds                      | 9,007   | 2,477
Managed investment funds                | 6,405   | 3,891
Government securities                   | 3,011   | 1,974
Other investments                       | 4,418   | 6,087
Derivative financial instruments        | 3,634   | 2,629
Trade receivables                       | 5,077   | 5,402
Contract assets and other receivables   | 5,155   | 3,410
                                        | 41,337  | 28,067


The reconciliation from non-current segment assets to non-current group assets is shown in the following table: non-current assets according to segment reporting only include the values of continuing operations in the previous year. Therefore, the non-current assets of METRO China must be taken into account in the previous year and are therefore part of the reconciliation:
1 Adjustment of previous year according to explanation in notes.

€ million                                         | 30/9/2018 | 30/9/2019
------------------------------------------------- | --------- | ---------
Non-current segment assets                        | 6,348     | 6,268
plus non-current segment assets METRO China       | 560       | 0
Financial assets                                  | 88        | 97
Investments accounted for using the equity method | 178       | 179
Deferred tax assets                               | 329       | 191
Other                                             | 1         | 1
Non-current group assets                          | 7,503     | 6,736


3.5 INCOME TAXES
(1) Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections.
Fiscal 2019 income taxes expense amounted to $83.7 million compared to a recovery of $17.2 million for the prior year mainly attributable to: • the effect of the federal rate reduction in the second quarter of fiscal 2018 in the United States; • the increase in profit before income taxes which is mostly related to the impact of the MetroCast acquisition completed in the second quarter of fiscal 2018, and • the appreciation of the US dollar against the Canadian dollar compared to the prior year.
On March 19, 2019, the Department of Finance Canada confirmed the acceleration of tax depreciation on most capital investments for property, plant and equipment acquired after November 20, 2018, which phases out during the period from 2023 to 2028. The federal accelerated tax depreciation had a favorable impact on the current income tax expense of the Corporation in fiscal 2019. On March 21, 2019, the Québec Department of Finance confirmed that it would harmonize with the Federal legislation.
On December 22, 2017, the U.S. federal government enacted the Tax Cuts and Jobs Act (the "Act"). The tax reform reduced the general federal corporate tax rate from 35% to 21% starting after 2017 which reduced net deferred tax liabilities by approximately $94 million (US$74 million) in the second quarter of fiscal 2018. In addition, the Act calls for other changes such as interest deductibility limitations, full deduction of acquisitions of tangible assets, net operating losses limitations as well as base erosion anti-avoidance, which together with tax rate reductions, had an overall favorable impact on the income tax expense.

Years ended August 31,                                                             | 2019     | 2018 (1) | Change
---------------------------------------------------------------------------------- | -------- | -------- | ------
(in thousands of dollars, except percentages)                                      | $        | $        | %
Profit before income taxes                                                         | 440,563  | 367,380  | 19.9
Combined Canadian income tax rate                                                  | 26.50%   | 26.50%   | —
Income taxes at combined Canadian income tax rate                                  | 116,749  | 97,356   | 19.9
Difference in operations' statutory income tax rates                               | 1,466    | (3)      | —
Impact on deferred taxes as a result of changes in substantively enacted tax rates | 15       | (94,175) | —
Impact on income taxes arising from non-deductible expenses and non-taxable profit | (565)    | 1,670    | —
Tax impacts related to foreign operations                                          | (28,633) | (22,099) | 29.6
Other                                                                              | (5,377)  | 53       | —
                                                                                | 83,655   | (17,198) | —


Contractual Obligations As of December 31, 2019, our contractual obligations were as follows:
(1) Interest on long-term debt includes amounts due on fixed and variable rate debt. As the rates on our variable debt are subject to change, the rates in effect at December 31, 2019 were used in determining our future interest obligations. Expected settlements of interest rate swap agreements were estimated using yield curves in effect at December 31, 2019.
(2) Unrecorded purchase obligations include binding commitments for future capital expenditures and service and maintenance agreements to support various computer hardware and software applications and certain equipment. If we terminate any of the contracts prior to their expiration date, we would be liable for minimum commitment payments as defined by the contractual terms of the contracts.
(3) Recorded obligations include amounts in accounts payable and accrued expenses for external goods and services received as of December 31, 2019 and expected to be settled in cash.
(4) Expected contributions to our pension and post-retirement benefit plans for the next 5 years. Actual contributions could differ from these estimates and extend beyond 5 years.
Defined Benefit Pension Plans As required, we contribute to qualified defined pension plans and non-qualified supplemental retirement plans (collectively the “Pension Plans”) and other post-retirement benefit plans, which provide retirement benefits to certain eligible employees. Contributions are intended to provide for benefits attributed to service to date. Our funding policy is to contribute annually an actuarially determined amount consistent with applicable federal income tax regulations.
The cost to maintain our Pension Plans and future funding requirements are affected by several factors including the expected return on investment of the assets held by the Pension Plans, changes in the discount rate used to calculate pension expense and the amortization of unrecognized gains and losses. Returns generated on the Pension Plans assets have historically funded a significant portion of the benefits paid under the Pension Plans. We used a weighted-average expected long-term rate of return of 6.97% and 7.03% in 2019 and 2018, respectively. As of January 1, 2020, we estimate the longterm rate of return of Plan assets will be 6.25%. The Pension Plans invest in marketable equity securities which are exposed to changes in the financial markets. If the financial markets experience a downturn and returns fall below our estimate, we could be required to make material contributions to the Pension Plans, which could adversely affect our cash flows from operations.
Net pension and post-retirement costs were $11.5 million, $5.6 million and $3.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. We contributed $27.5 million, $26.2 million and $12.5 million in 2019, 2018 and 2017, respectively to our Pension Plans. For our other post-retirement plans, we contributed $8.5 million, $9.7 million and $6.5 million in 2019, 2018 and 2017, respectively. In 2020, we expect to make contributions totaling approximately $25.0 million to our Pension Plans and $8.9 million to our other post-retirement benefit plans. Our contribution amounts meet the minimum funding requirements as set forth in employee benefit and tax laws. See Note 11 to the consolidated financial statements for a more detailed discussion regarding our pension and other post-retirement plans.

(In thousands)                             | Less than 1 Year | 1 -3 Years | 3 -5 Years  | Thereafter | Total
------------------------------------------ | ---------------- | ---------- | ----------- | ---------- | -----------
Long-term debt                             | $ 18,350         | $ 521,700  | $ 1,729,663 | $ —        | $ 2,269,713
Interest on long-term debt obligations (1) | 128,731          | 246,834    | 65,552      | —          | 441,117
Finance leases                             | 10,280           | 8,285      | 3,404       | 6,604      | 28,573
Operating leases                           | 7,860            | 10,751     | 5,660       | 10,691     | 34,962
Unconditional purchase obligations:        |                  |            |             |            |
Unrecorded (2)                             | 36,488           | 37,830     | 19,954      | 1,371      | 95,643
Recorded (3)                               | 98,035           | —          | —           | —          | 98,035
Pension funding (4)                        | 33,861           | 64,311     | 65,959      | —          | 164,131


9. Available-for-Sale Debt Investments and Equity Investments
The following table summarizes our available-for-sale debt investments and equity investments (in millions):
(1) We held equity interests in certain private equity funds of $0.6 billion as of July 27, 2019 which are accounted for under the NAV practical expedient following the adoption of ASU 2016-01, Financial Instruments, starting in the first quarter of fiscal 2019.

                                                              | July 27, 2019 | July 28, 2018
------------------------------------------------------------- | ------------- | -------------
Available-for-sale debt investments                           | $21,660       | $37,009
Marketable equity securities                                  | 3             | 605
Total investments                                             | 21,663        | 37,614
Non-marketable equity securities included in other assets (1) | 1,113         | 978
Equity method investments included in other assets            | 87            | 118
Total                                                         | $22,863       | $38,710


Restricted Stock Units
At September 2019, the Compensation Committee of the Board of Directors had authorized and approved the following restricted stock unit awards to members of the Company’s management team pursuant to the provisions of the Company’s Omnibus Plans: At September 2019, the Compensation Committee of the Board of Directors had authorized and approved the following restricted stock unit awards to members of the Company’s management team pursuant to the provisions of the Company’s Omnibus Plans:
(1) 13,150 of the restricted stock units were vested as of September 2019. The remaining 100 restricted stock units
will vest in equal amounts in October 2019 and October 2020.
(2) 8,666 of the restricted stock units were vested as of September 2019. The remaining 4,334 restricted stock units
will vest in October 2019.
(3) 4,333 of the restricted stock units were vested as of September 2019. 4,333 restricted stock units will vest in
October 2019 and 4,334 will vest in October 2020.
(4) The 15,050 restricted stock units will vest in equal amounts in October 2019, October 2020, and October 2021.
There is no direct cost to the recipients of the restricted stock units, except for any applicable taxes. The recipients of the restricted stock units are entitled to the customary adjustments in the event of stock splits, stock dividends, and certain other distributions on the Company’s common stock. All cash dividends and/or distributions payable to restricted stock recipients will be held in escrow until all the conditions of vesting have been met.
The restricted stock units provide that the recipients can elect, at their option, to receive either common stock in the
Company, or a cash settlement based upon the closing price of the Company’s shares, at the time of vesting. Based on
these award provisions, the compensation expense recorded in the Company’s Statement of Operations reflects the
straight-line amortized fair value based on the liability method under “ASC 718 – Compensation – Stock Compensation”.
Net income before income taxes included compensation expense related to the amortization of the Company’s restricted stock unit awards of approximately $1.2 million during both fiscal 2019 and fiscal 2018. These amounts were recorded as accrued expenses in the Company’s Consolidated Balance Sheet at both September 2019 and September 2018. The tax benefit related to this compensation expense was approximately $0.3 million in both fiscal 2019 and fiscal 2018. The total intrinsic value of restricted stock units vested during fiscal 2019 and fiscal 2018 was approximately $1.1 million and $1.2 million, respectively.

                                             | Restricted Stock Units(1) | Restricted Stock Units(2) | Restricted Stock Units(3) | Restricted Stock Units(4)
-------------------------------------------- | ------------------------- | ------------------------- | ------------------------- | -------------------------
Date of award:                               | October 2015              | October 2016              | October 2017              | October 2018
Original number of awards issued:            | 13,250                    | 13,000                    | 13,000                    | 15,050
Service period:                              | 36 - 60 months            | 36 months                 | 36 months                 | 36 months
Estimated fair value of award at grant date: | $1,112,000                | $1,191,000                | $1,177,000                | $ 1,264,000
Non-vested awards outstanding at             |                           |                           |                           |
September 30, 2019:                          | 100                       | 4,334                     | 8,667                     | 15,050
Fair value of non-vested awards at           |                           |                           |                           |
September 30, 2019 of approximately:         | $8,000                    | $330,000                  | $661,000                  | $ 1,148,000


Contributions and Direct Benefit Payments
It is the company’s general practice to fund amounts for pensions sufficient to meet the minimum requirements set forth in applicable employee benefits laws and local tax laws. From time to time, the company contributes additional amounts as it deems appropriate.
The following table presents the contributions made to the non-U.S. DB plans, non pension postretirement benefit plans, multi-employer plans, DC plans and direct payments for 2019 and 2018. The cash contributions to the multi-employer plans represent the annual cost included in the net periodic (income)/ cost recognized in the Consolidated Income Statement. The company’s participation in multi-employer plans has no material impact on the company’s financial statements.
In 2019 and 2018, $635 million and $598 million, respectively, was contributed in U.S. Treasury securities, which is considered a non-cash transaction (includes the Active Medical Trust).

($ in millions)                          |        |
---------------------------------------- | ------ | ------
For the year ended December 31:          | 2019   | 2018
Non-U.S. DB plans                        | $  243 | $  325
Non pension postretirement benefit plans | 304    | 335
Multi-employer plans                     | 32     | 38
DC plans                                 | 1,040  | 1,024
Direct benefit payments                  | 559    | 567
Total                                    | $2,177 | $2,288


The following table summarizes our long-lived assets (consisting of property, plant and equipment) by geography at the end of fiscal 2019, fiscal 2018 and fiscal 2017 (in millions).
We have many suppliers of raw materials and subcontractors which provide our various materials and service needs. We generally seek to have multiple sources of supply for our raw materials and services, but, in some cases, we may rely on a single or limited number of suppliers.

                        |        | March 31, |
----------------------- | ------ | --------- | ------
                        | 2019   | 2018      | 2017
United States           | $521.1 | $393.3    | $388.5
Thailand                | 209.3  | 215.5     | 178.0
Various other countries | 266.3  | 159.1     | 116.8
Total long-lived assets | $996.7 | $767.9    | $683.3


Realization of net operating loss carryforwards and other deferred tax temporary differences are contingent upon future taxable earnings. The Company’s deferred tax assets were reviewed for expected utilization by assessing the available positive and negative factors surrounding their recoverability.
As of September 30, 2018, the Company’s remaining valuation allowance of approximately $105,000 related to state net operating loss carry forwards. During the fourth quarter of 2019, the Company reversed approximately $58,000 of its valuation allowance. This consisted of decreasing the valuation allowance for the expiration and utilization of state net operating losses in 2019 of approximately $68,000 and increasing the valuation allowance by approximately $10,000 for future expected NOL utilization based on updated profitability estimates and changes to the loss utilization rules. The remaining valuation allowance balance as of September 30, 2019 of approximately $47,000 relates entirely to state net operating loss carry forwards we do not expect to utilize. The Company will continue to assess the assumptions used to determine the amount of our valuation allowance and may adjust the valuation allowance in future periods based on changes in assumptions of estimated future income and other factors. If the valuation allowance is reduced, we would record an income tax benefit in the period the valuation allowance is reduced. If the valuation allowance is increased, we would record additional income tax expense.
Significant components of deferred income tax assets and liabilities are as follows at:

                                              | September 30, 2019 | September 30, 2018
--------------------------------------------- | ------------------ | ------------------
Deferred income tax assets (liabilities):     |                    |
Intangibles                                   | $(75,190)          | $(70,467)
Property and equipment depreciation           | (521,586)          | (552,119)
Net operating loss carry forwards and credits | 377,505            | 464,274
Stock-based compensation                      | 114,118            | 151,558
Inventories                                   | 350,197            | 400,111
Prepaid expenses                              | (63,252)           | (60,806)
Accrued expenses and reserves                 | 371,414            | 250,787
Goodwill                                      | (607,882)          | (583,415)
Gross deferred tax liability                  | (54,676)           | (77)
Valuation allowance                           | (47,014)           | (104,858)
Net deferred tax liability                    | $(101,690)         | $(104,935)


8. Credit Facilities and Long-Term Debt
Long-term debt consisted of the following (in thousands except interest rate and installment data):
Certain property, plant, and equipment is pledged as collateral on our note payable. Unless otherwise approved by our lender, we are required by provisions of our loan agreement to (1) maintain minimum levels of working capital (ratio of not less than 1.25 to 1) and net worth (minimum of $90.0 million tangible net worth, plus 45% of cumulative net income); (2) limit dividends paid in any given quarter to not exceed an amount equal to one third of the previous quarter’s consolidated net income (allowed if no events of default), (3) maintain minimum total funded debt to total capitalization (debt to total tangible capitalization not to exceed 55%); and (4) maintain various current and cash-flow coverage ratios (1.25 to 1), among other restrictions. Our debt agreement requires Fred R. Adams, Jr., the Company’s Founder and Chairman Emeritus, or his family, to maintain ownership of Company shares, directly or indirectly, representing not less than 50% of the outstanding voting power of the Company. Certain property, plant, and equipment is pledged as collateral on our note payable. Unless otherwise approved by our lender, we are required by provisions of our loan agreement to (1) maintain minimum levels of working capital (ratio of not less than 1.25 to 1) and net worth (minimum of $90.0 million tangible net worth, plus 45% of cumulative net income); (2) limit dividends paid in any given quarter to not exceed an amount equal to one third of the previous quarter’s consolidated net income (allowed if no events of default), (3) maintain minimum total funded debt to total capitalization (debt to total tangible capitalization not to exceed 55%); and (4) maintain various current and cash-flow coverage ratios (1.25 to 1), among other restrictions. Our debt agreement requires Fred R. Adams, Jr., the Company’s Founder and Chairman Emeritus, or his family, to maintain ownership of Company shares, directly or indirectly, representing not less than 50% of the outstanding voting power of the Company.
Interest, net of amount capitalized, of $644,000, $265,000, and $318,000 was recorded during fiscal 2019, 2018 and 2017, respectively. Interest of zero, $217,000 and $1.1 million was capitalized for construction of certain facilities during fiscal 2019, 2018 and 2017, respectively
On July 10, 2018, we entered into a $100.0 million Senior Secured Revolving Credit Facility (the “Revolving Credit Facility”) with a five-year term. The credit agreement for the Revolving Credit Facility includes an accordion feature permitting the Company, with the consent of the administrative agent, to increase the revolving commitments in the aggregate up to $125.0 million. No amounts were borrowed under the facility as of June 1, 2019 or during fiscal 2019. The Company had $3.7 million of outstanding standby letters of credit issued under the Revolving Credit Facility at June 1, 2019.
The interest rate is based, at the Company’s election, on either the Eurodollar Rate plus the Applicable Margin or the
Base Rate plus the Applicable Margin. The “Eurodollar Rate” means the reserve adjusted rate at which Eurodollar
deposits in the London interbank market for an interest period of one, two, three, six or twelve months (as selected by
the Company) are quoted. The “Base Rate” means a fluctuating rate per annum equal to the highest of (a) the federal funds rate plus 0.50% per annum, (b) the prime rate of interest established by the administrative agent, and (c) the Table of Contents 54 Eurodollar Rate for an interest period of one month plus 1% per annum, subject to certain interest rate floors. The “Applicable Margin” means 0.00% to 0.75% per annum for Base Rate Loans and 1.00% to 1.75% per annum for Eurodollar Rate Loans, in each case depending upon the average outstanding balance at the quarterly pricing date. The Company will pay a commitment fee of 0.20% on the unused portion of the facility.
The Revolving Credit Facility is guaranteed by all the current and future wholly-owned direct and indirect domestic subsidiaries of the Company, and is secured by a first-priority perfected security interest in substantially all of the Company’s and the guarantors’ accounts, payment intangibles, instruments (including promissory notes), chattel paper, inventory (including farm products) and deposit accounts maintained with the administrative agent.
The credit agreement for the Revolving Credit Facility contains customary covenants, including restrictions on the incurrence of liens, incurrence of additional debt, sales of assets and other fundamental corporate changes and investments. The credit agreement requires maintenance of two financial covenants (i) a minimum working capital ratio of 2.00 to 1.00 and (ii) an annual limit on capital expenditures of $100.0 million. Additionally, the credit agreement requires that Fred R. Adams Jr., his spouse, natural children, sons-in-law or grandchildren, or any trust, guardianship, conservatorship or custodianship for the primary benefit of any of the foregoing, or any family limited partnership, similar limited liability company or other entity that 100% of the voting control of such entity is held by any of the foregoing, shall maintain at least 50% of the Company’s voting stock. Failure to satisfy any of these covenants will constitute a default under the terms of the credit agreement. Further, dividends are restricted to the Company’s current dividend policy of one-third of the Company’s net income computed in accordance with generally accepted accounting principles. The Company is allowed to repurchase up to $75.0 million of its capital stock in any year provided there is no default under the credit agreement and the Company has availability of at least $20.0 million under the facility.
The credit agreement for the Revolving Credit Facility also includes customary events of default and customary remedies upon the occurrence of an event of default, including acceleration of the amounts due and foreclosure of the collateral.
At June 1, 2019, we were in compliance with the covenant requirements of all loan agreements.

                                                                                | June 1, 2019 | June 2, 2018
---------------------------------------------------------------------------------------------------------------- | ------------ | ------------
Note payable at 6.20%, due in monthly principal installments of $250,000, plus interest, maturing in fiscal 2020 | $1,500       | $4,500
Note payable at 5.40%, due in monthly principal installments of $125,000, plus interest, matured in fiscal 2019  | —            | 250
Capital lease obligations                                                                                | 1,054        | 1,340
                                                                                | 2,554        | 6,090
Less: capitalized loan costs                                                                                | 217          | —
Total debt                                                                                | 2,337        | 6,090
Less: current maturities                                                                                | 1,696        | 3,536
Long-term debt, less current maturities                                                                          | $641         | $2,554


Grants of Plan-Based Awards
The following table sets forth the estimated possible payouts under the cash incentive awards granted to our Named
Executive Officers in respect of 2019 performance under the 2019 NEO Plan.
(1) Amounts presented assume payment of threshold, target and maximum awards at the applicable level.

Name              | Grant Date |               | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) |             | All Other Stock Awards: Number of Shares of Stock or  Units (#) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards
----------------- | ---------- | ------------- | ------------------------------------------------------------------- | ----------- | --------------------------------------------------------------- | -------------------------------------------------------------------- | ---------------------------------------------- | ------------------------------------------------
                  |            | Threshold ($) | Target ($)                                                          | Maximum ($) |                                                                 |                                                                      |                                                |
Barry Litwin      | -          | 100,238       | 1,113,750                                                           | 1,237,500   |                                                                 |                                                                      |                                                |
Thomas Clark      | -          | 5,062         | 225,000                                                             | 337,500     |                                                                 |                                                                      |                                                |
Robert Dooley     | -          | 13,837        | 615,000                                                             | 922,500     |                                                                 |                                                                      |                                                |
Eric Lerner       | -          | 6,773         | 300,900                                                             | 451,350     |                                                                 |                                                                      |                                                |
Manoj Shetty      | -          | 5,435         | 241,535                                                             | 362,303     |                                                                 |                                                                      |                                                |
Lawrence Reinhold | N/A        | N/A           | N/A                                                                 | N/A         |                                                                 |                                                                      |                                                |


GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
The following table reflects the cash flow impact of GS Holdings on the Consolidated Statements of Cash Flows for the years indicated.

                                                                         | Year Ended December 31, |
------------------------------------------------------------------------ | ----------------------- | ---------
                                                                         | 2019                    | 2018
Net cash provided by operating activities                                | $153,327                | $256,426
Net cash used in investing activities                                    | (15,381)                | (6,581)
Net cash used in financing activities                                    | (159,608)               | (154,210)
Net increase (decrease) in cash and cash equivalents and restricted cash | (21,662)                | 95,635
Cash and cash equivalents and restricted cash at beginning of period     | 449,473                 | 353,838
Cash and cash equivalents and restricted cash at end of period           | $427,811                | $449,473


5. Trade Accounts Receivable and Contract Liabilities:
Charges related to allowances for doubtful accounts are charged to selling, general, and administrative expenses. Charges related to stock rotation, ship from stock and debit, sales returns, and sales discounts are reported as deductions from revenue. Please refer to Note 6, “Revenue Recognition,” for additional information

                                             | Fiscal Year Ended March 31, |
-------------------------------------------- | --------------------------- | --------
                                             | 2018                        | 2019
Gross Accounts Receivable - Trade            | $300,016                    | $273,053
Less                                         |                             |
Allowances for doubtful accounts             | 1,893                       | 1,276
Stock rotation and ship from stock and debit | 15,989                      | 14,140
Sales returns and discounts                  | 6,875                       | 646
Total allowances                             | 24,757                      | 16,062
Accounts Receivable - Trade, net             | $275,259                    | $256,991


D) SHARE-BASED PAYMENT PLANS
The Corporation offers an Employee Stock Purchase Plan for the benefit of its employees and those of its subsidiaries and a Stock Option Plan to its executive officers and designated employees. No more than 10% of the outstanding subordinate voting shares are available for issuance under these plans. Furthermore, the Corporation offers an Incentive Share Unit Plan ("ISU Plan") and a Performance Share Unit Plan ("PSU Plan") for executive officers and designated employees, and a Deferred Share Unit Plan ("DSU Plan") for members of the Board of Directors ("Board").
Stock purchase plan The Corporation offers, for the benefit of its employees and those of its subsidiaries, an Employee Stock Purchase Plan, which is accessible to all employees up to a maximum of 7% of their base annual salary and the Corporation contributes 25% of the employee contributions. The subscriptions are made monthly and employee subordinate voting shares are purchased on the stock market.
Stock option plan A total of 3,432,500 subordinate voting shares are reserved for the purpose of the Stock Option Plan. The minimum exercise price at which options are granted is equal to the market value of such shares at the time the option is granted. Options vest equally over a period of five years beginning one year after the day such options are granted and are exercisable over ten years.
Under the Stock Option Plan, the following options were granted by the Corporation and are outstanding at August 31:
(1) For the year ended August 31, 2019, the Corporation granted 97,725 (126,425 in 2018) stock options to Cogeco's executive officers as executive officers of the Corporation. (2) The weighted average share price for options exercised during the year was $92.43 ($83.46 in 2018).

Years ended August 31,             |           | 2019                            |          | 2018
---------------------------------- | --------- | ------------------------------- | -------- | -------------------------------
                                   | Options   | Weighted average exercise price | Options  | Weighted average exercise price
                                   |           | $                               |          | $
Outstanding, beginning of the year | 819,393   | 65.27                           | 652,385  | 56.61
Granted (1)                        | 201,525   | 65.62                           | 281,350  | 85.08
Exercised (2)                      | (170,754) | 57.28                           | (60,337) | 57.77
Cancelled                          | (134,550) | 72.43                           | (54,005) | 72.28
Outstanding, end of the year       | 715,614   | 65.93                           | 819,393  | 65.27
Exercisable, end of the year       | 264,374   | 55.99                           | 277,108  | 49.76


Statements of cash flows additional information (in millions):
Non-cash investing and financing activities and supplemental cash flow information are as follows:

                                                                |                | Year Ended     |
--------------------------------------------------------------- | -------------- | -------------- | --------------
                                                                | April 26, 2019 | April 27, 2018 | April 28, 2017
Non-cash Investing and Financing Activities:                    |                |                |
Capital expenditures incurred but not paid                      | $ 9            | $ 24           | $ 19
Non-cash extinguishment of sale-leaseback financing obligations | $ —            | $ 130          | $ 19
Supplemental Cash Flow Information:                             |                |                |
Income taxes paid, net of refunds                               | $ 205          | $ 87           | $ 102
Interest paid                                                   | $ 53           | $ 58           | $ 44


Deferred tax assets and liabilities as of March 31, are as follows:
At March 31, 2019, we had $199.1 million of a federal net operating loss carryforwards that expire, if unused, in fiscal years 2031 to 2038, and $11.5 million of federal net operating loss carryforwards that can be carried forward indefinitely. Our Hong Kong, Malaysia, and Singapore subsidiaries have $0.4 million, $0.1 million, and $0.2 million of net operating loss carryforwards respectively. The losses for Hong Kong, Malaysia and Singapore can be carried forward indefinitely.
At March 31, 2019 our India subsidiary had $0.4 million of minimum alternative tax credits reported as other noncurrent assets on our Consolidated Balance Sheet. Our India subsidiary operates in a “Special Economic Zone (“SEZ”)”. One of the benefits associated with the SEZ is that the India subsidiary is not subject to regular India income taxes during its first 5 years of operations. The aggregate value of the benefit of the SEZ during the current fiscal year is $0.5 million.
At March 31, 2019 we also had $127.5 million of state net operating loss carryforwards that expire, if unused, in fiscal years 2020 through 2039.
We recorded valuation allowances related to certain deferred income tax assets due to the uncertainty of the ultimate realization of the future benefits from those assets. At March 31, 2019, the total valuation allowance against deferred tax assets of $57.9 million was comprised of $57.0 million for federal and state deferred tax assets, and $0.9 million associated with deferred tax assets in Hong Kong, Malaysia, Singapore and the Philippines.
In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some or all of the deferred tax assets will not be realized. We have recorded a valuation allowance offsetting substantially all of our deferred tax assets. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible.
Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected taxable income, and tax planning strategies in making this assessment. In order to fully realize the deferred tax assets, we will need to generate future taxable income before the expiration of the deferred tax assets governed by the tax code.
Because of our losses in current and prior periods, management believes that it is more-likely-than-not that we will not realize the benefits of these deductible differences. The amount of the valuation allowance, however, could be reduced in the near term. The exact timing will be based on the level of profitability that we are able to achieve and our visibility into future results. Our recorded tax rate may increase in subsequent periods following a valuation release. Any valuation allowance release will not affect the amount of cash paid for income taxes.
The undistributed earnings of our foreign subsidiaries are not subject to U.S. federal and state income taxes unless such earnings are distributed in the form of dividends or otherwise to the extent of current and accumulated earnings and profits. The undistributed earnings of foreign subsidiaries are permanently reinvested and totaled $3.1 million and $1.7 million as of March 31, 2019 and 2018, respectively.
We made the determination of permanent reinvestment on the basis of sufficient evidence that demonstrates we will invest the undistributed earnings overseas indefinitely for use in working capital, as well as foreign acquisitions and expansion. The determination of the amount of the unrecognized deferred U.S. income tax liability related to the undistributed earnings is not practicable.
Prior to the adoption of ASU 2016-09 in the first quarter of fiscal 2018, we used the with-and-without approach for ordering tax benefits derived from the share-based payment awards. Using the with-and-without approach, actual income taxes payable for the period were compared to the amount of tax payable that would have been incurred absent the deduction for employee share-based payments in excess of the amount of compensation cost recognized for financial reporting.
As a result of this approach, tax net operating loss carryforwards not generated from share-based payments in excess of cost recognized for financial reporting were considered utilized before the current period's share-based deduction.

(In thousands)                                 | 2019     | 2018
---------------------------------------------- | -------- | --------
Deferred tax assets:                           |          |
Accrued liabilities                            | $3,944   | $2,720
Allowance for doubtful accounts                | 120      | 143
Inventory valuation reserve                    | 41       | 20
Federal losses and credit carryforwards        | 45,227   | 42,713
Foreign net operating losses                   | 730      | 623
State losses and credit carryforwards          | 9,886    | 9,592
Deferred revenue                               | 488      | 652
Goodwill and other intangible assets           | —        | 286
Other                                          | 65       | 96
                                               | 60,501   | 56,845
Less: valuation allowance                      | (57,852) | (54,260)
Total                                          | 2,649    | 2,585
Deferred tax liabilities:                      |          |
Property and equipment & software amortization | (361)    | (412)
Goodwill and other intangible assets           | (2,706)  | (2,277)
Total                                          | (3,067)  | (2,689)
Total deferred tax liabilities                 | $(418)   | $(104)


2. Net Income (Loss) Per Share
Basic earnings per share, or EPS, is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing net income by the weighted-average number of common shares outstanding for the period and the weighted-average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method.
For purposes of this calculation, common stock options, restricted stock units and restricted stock awards are considered to be common stock equivalents and are only included in the calculation of diluted EPS when their effect is dilutive. In periods in which the Company has a net loss, dilutive common stock equivalents are excluded from the calculation of diluted EPS.
The table below presents the computation of basic and diluted earnings per share:
For the years ended December 31, 2019, 2018 and 2017, the Company incurred net losses and accordingly excluded common stock equivalents for outstanding stockbased awards, which represented all potentially dilutive securities, of 2.5 million, 3.7 million, and 4.5 million, respectively, from the calculation of diluted net loss per share due to their anti-dilutive nature.

                                                   |           | Years Ended December 31,                 |
-------------------------------------------------- | --------- | ---------------------------------------- | --------
                                                   | 2019      | 2018                                     | 2017
                                                   |           | (in thousands, except per share amounts) |
Numerator:                                         |           |                                          |
Net loss                                           | $(19,898) | $(26,199)                                | $(9,187)
Denominator:                                       |           |                                          |
Weighted average common shares outstanding—basic   | 71,005    | 68,490                                   | 66,252
Dilutive common stock equivalents                  | —         | —                                        | —
Weighted average common shares outstanding—diluted | 71,005    | 68,490                                   | 66,252
Net loss per share:                                |           |                                          |
Basic                                              | $(0.28)   | $(0.38)                                  | $(0.14)
Diluted                                            | $(0.28)   | $(0.38)                                  | $(0.14)


11 Dividends
The proposed dividend is subject to approval in 2020. It is therefore not included as a liability in these Financial Statements. No scrip alternative to the cash dividend is being offered in respect of the proposed final dividend for the year ended 31st December 2019.

                                                                                | 2019 | 2018
---------------------------------------------------------------------------------------------- | ---- | ----
                                                                                | £m   | £m
Amounts paid in the year:                                                                      |      |
Final dividend for the year ended 31st December 2018 of 71.0p (2017: 62.0p) per share          | 52.3 | 45.7
Interim dividend for the year ended 31st December 2019 of 32.0p (2018: 29.0p) per share        | 23.6 | 21.3
Total dividends paid                                                                           | 75.9 | 67.0
Amounts arising in respect of the year:                                                        |      |
Interim dividend for the year ended 31st December 2019 of 32.0p (2018: 29.0p) per share        | 23.6 | 21.3
Proposed final dividend for the year ended 31st December 2019 of 78.0p (2018: 71.0p) per share | 57.5 | 52.3
Total dividends arising                                                                        | 81.1 | 73.6


Other loss
In May 2019, the Company completed a cash tender offer and purchased $460.9 million in aggregate principal amount of the 2020 Notes and issued $250.0 million in aggregate principal amount of 9.25% senior secured notes at par due November 2022. The Company recognized a loss of $10.6 million on the purchase of the 2020 Notes for the year ended December 31, 2019 (see Note 9).
During September 2019, Teekay LNG refinanced the Torben Spirit by acquiring the Torben Spirit from its original Lessor and then selling the vessel to another Lessor and leasing it back for a period of 7.5 years. As a result of this refinancing transaction, the Partnership recognized a loss of $1.4 million for the year ended December 31, 2019 on the extinguishment of the original finance lease (see Note 11).
Following the termination of the finance lease arrangements for the RasGas II LNG Carriers in 2014, the lessor made a determination that additional rentals were due under the leases following a challenge by the UK taxing authority. As a result, in 2017 the Teekay Nakilat Joint Venture recognized an additional liability, which was included as part of other loss in the Company's consolidated statements of loss.
Related to settlements and accruals made prior to September 2017 as a result of claims and potential claims made against Logitel Offshore Holding AS (or Logitel), a company acquired by Altera in 2014. Altera was deconsolidated in September 2017 (see Note 4).

                                                         | Year Ended   | Year Ended   | Year Ended
-------------------------------------------------------- | ------------ | ------------ | ------------
                                                         | December 31, | December 31, | December 31,
                                                         | 2019         | 2018         | 2017
                                                         | $            | $            | $
Loss on bond repurchases (1)                             | (10,601)     | (1,772)      | —
Loss on lease extinguishment (2)                         | (1,417)      | —            | —
Tax indemnification guarantee liability (3)              | —            | (600)        | (50,000)
Contingent liability (4)                                 | —            | —            | (4,500)
Gain on sale / (write-down) of cost-accounted investment | —            | —            | 1,250
Miscellaneous (loss) income                              | (2,457)      | 359          | (731)
Other loss                                               | (14,475)     | (2,013)      | (53,981)


Provision for Income Taxes
We are subject to taxes in the United States as well as other tax jurisdictions and countries in which we conduct business. Earnings from our non-U.S. activities are subject to local country income tax and may be subject to current U.S. income tax.
We recognized an income tax benefit of $8.3 million for fiscal year 2019 compared to an income tax provision of $18.5 million for fiscal year 2018. The fiscal year 2018 income tax provision was primarily due to a one-time provisional net charge from re-measuring deferred tax assets and liabilities in the quarter ended January 31, 2018 as a result of the Tax Cuts and Jobs Act (the “Tax Act”).
The effective tax rate of (66)% for fiscal year 2019, differs from the statutory U.S. Federal income tax rate of 21% mainly due to permanent differences for stock-based compensation, including excess tax benefits, research and development credits, the tax rate differences between the United States and foreign countries, foreign withholding taxes, and certain non-deductible expenses including executive compensation.
As of July 31, 2019, we had unrecognized tax benefits of $6.2 million that, if recognized, would affect our effective tax rate.
On December 22, 2017, the Tax Act was enacted into law which substantially changed U.S. tax law, including a reduction in the U.S. corporate income tax rate to 21% effective January 1, 2018 and several provisions that may impact us in current and future periods.
The Tax Act includes a provision to tax global intangible low-taxed income (“GILTI”) of foreign subsidiaries, a special deduction for foreign-derived intangible income, and a base erosion anti-abuse tax (“BEAT”) measure that taxes certain payments between a U.S. corporation and its foreign subsidiaries. These provisions of the Tax Act became effective for us beginning on August 1, 2018 and had no impact on the tax benefit for fiscal year 2019.
Under GAAP, we can make an accounting policy election to either treat taxes due on the GILTI inclusion as a current period expense or factor such amounts into our measurement of deferred taxes. We have elected the current period expense method. In December 2018, the Internal Revenue Service (the “IRS”) issued proposed regulations related to the BEAT tax, which we are in the process of evaluating. If the proposed BEAT regulations are finalized in their current form, the impact may be material to the tax provision in the quarter of enactment.
The U.S. Treasury Department, the IRS, and other standard-setting bodies will continue to interpret or issue guidance on how provisions of the Tax Act will be applied or otherwise administered. We continue to obtain, analyze, and interpret guidance as it is issued and will revise our estimates as additional information becomes available.
Any legislative changes, including any other new or proposed U.S. Department of the Treasury regulations that have yet to be issued, may result in income tax adjustments which could be material to our provision for income taxes and effective tax rate in the period any such changes are enacted. We have finalized our assessment of the transitional impacts of the Tax Act.

                                          | Fiscal years ended July 31, |                                    |          |
----------------------------------------- | --------------------------- | ---------------------------------- | -------- | -----
                                          | 2019                        | 2018                               | Change   |
                                          | Amount                      | Amount                             | ($)      | (%)
                                          |                             | (In thousands, except percentages) |          |
Provision for (benefit from) income taxes | $(8,280)                    | $18,467                            | (26,747) | (145)
Effective tax rate                        | (66)%                       | (223)%                             |          |


Note 21. Earnings Per Share
Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust using the treasury stock method.
The number of shares used in the earnings per share computation were as follows (in thousands):

                                                                                |        | Years Ended December 31, |
--------------------------------------------------------------------------------------------------------------------- | ------ | ------------------------ | ------
                                                                                | 2019   | 2018                     | 2017
Basic:                                                                                |        |                          |
Weighted average common shares outstanding                                                                            | 41,649 | 42,090                   | 41,822
Diluted:                                                                                |        |                          |
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust | 153    | 156                      | 319
Total weighted average diluted shares outstanding                                                                     | 41,802 | 42,246                   | 42,141
Anti-dilutive shares excluded from the diluted earnings per share calculation                                         | 69     | 44                       | 46


Contractual Obligations
The following table summarizes the payments due by fiscal year for our outstanding contractual obligations as of June 30, 2019:
(a) Refer to Note 11 – Debt of the Notes to Financial Statements.
(b) Refer to Note 7 – Property and Equipment of the Notes to Financial Statements.
(c) Refer to Note 15 – Leases of the Notes to Financial Statements.
(d) Refer to Note 12 – Income Taxes of the Notes to Financial Statements.
(e) Amounts represent purchase commitments, including open purchase orders and take-or-pay contracts that are not presented as construction commitments above.
(f) We have excluded long-term tax contingencies, other tax liabilities, and deferred income taxes of $14.2 billion from the amounts presented as the timing of these obligations is uncertain. We have also excluded unearned revenue and non-cash items.

(In millions)                                    | 2020      | 2021-2022 | 2023-2024 | Thereafter | Total
------------------------------------------------ | --------- | --------- | --------- | ---------- | ----------
Long-term debt: (a)                              |           |           |           |            |
Principal payments                               | $ 5,518   | $ 11,744  | $ 8,000   | $ 47,519   | $ 72,781
Interest payments                                | 2,299     | 4,309     | 3,818     | 29,383     | 39,809
Construction commitments (b)                     | 3,443     | 515       | 0         | 0          | 3,958
Operating leases, including imputed interest (c) | 1,790     | 3,144     | 2,413     | 3,645      | 10,992
Finance leases, including imputed interest (c)   | 797       | 2,008     | 2,165     | 9,872      | 14,842
Transition tax (d)                               | 1,180     | 2,900     | 4,168     | 8,155      | 16,403
Purchase commitments (e)                         | 17,478    | 1,185     | 159       | 339        | 19,161
Other long-term liabilities (f)                  | 0         | 72        | 29        | 324        | 425
Total                                            | $  32,505 | $  25,877 | $  20,752 | $  99,237  | $  178,371


Aging analysis of gross values by risk category at December 31, 2019
The distribution of trade receivables and contract assets closely follows the distribution of the Company’s sales, see note B1, “Segment information.” The ten largest customers represented 49% (53%) of the total trade receivables and contract assets in 2019.

Days past due        | 1–90  | 91–180 | 181–360 | >360  | Total
-------------------- | ----- | ------ | ------- | ----- | -----
Country risk: Low    | 1,347 | 125    | 127     | 313   | 1,912
Country risk: Medium | 891   | 725    | 600     | 819   | 3,035
Country risk: High   | 583   | 365    | 217     | 1,315 | 2,480
Total past due       | 2,821 | 1,215  | 944     | 2,447 | 7,427


Note 21. Equity - dividends
Dividends paid during the financial year were as follows:
The Directors have declared a final dividend of AU 18 cents per share for the year ended 30 June 2019. The dividend will be paid on 25 September 2019 based on a record date of 4 September 2019. This amounts to a total dividend of US$15.9 million based on the number of shares outstanding.
Accounting policy for dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the company.

Consolidated                                                                                |         |
-------------------------------------------------------------------------------------------- | ------- | -------
                                                                                | 2019    | 2018
                                                                                | US$’000 | US$’000
Final dividend for the year ended 30 June 2018 of AU 14 cents (2017: AU 12 cents)            | 13,327  | 12,534
Interim dividend for the half year ended 31 December 2018 of AU 16 cents (2017: AU 13 cents) | 14,801  | 13,099
                                                                                | 28,128  | 25,633


The following table provides the company’s operating (non-GAAP) earnings for 2019 and 2018. See page 46 for additional information.
* 2019 results were impacted by Red Hat purchase accounting and acquisition-related activity.
** Includes charges of $2.0 billion in 2018 associated with U.S. tax reform.

($ in millions except per share amounts)               |         |         |
------------------------------------------------------ | ------- | ------- | -------------------------
For the year ended December 31:*                       | 2019    | 2018    | Yr.-to-Yr. Percent Change
Net income as reported                                 | $ 9,431 | 8,728*  | 8.1%
Income/(loss) from discontinued operations, net of tax | (4)     | 5       | NM
Income from continuing operations                      | $ 9,435 | 8,723*  | 8.2%
Non-operating adjustments (net of tax)                 |         |         |
Acquisition-related charges                            | 1,343   | 649     | 107.0
Non-operating retirement-related costs/(income)        | 512     | 1,248   | (58.9)
U.S. tax reform charge                                 | 146     | 2,037   | (92.8)
Operating (non-GAAP) earnings                          | $11,436 | $12,657 | (9.6)%
Diluted operating (non-GAAP) earnings per share        | $ 12.81 | $ 13.81 | (7.2)%


G. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net consisted of the following at December 31, 2019 and 2018:
Depreciation of property, plant and equipment for the years ended December 31, 2019, 2018, and 2017 was $70.8 million, $67.4 million, and $66.1 million, respectively. As of December 31, 2019 and 2018, the gross book value included in machinery and equipment for internally manufactured test systems being leased by customers was $5.4 million and $5.5 million, respectively. As of December 31, 2019 and 2018, the accumulated depreciation on these test systems was $5.1 million and $5.2 million, respectively.

                                  | 2019           | 2018
--------------------------------- | -------------- | --------
                                  | (in thousands) |
Land                              | $16,561        | $16,561
Buildings                         | 107,282        | 105,935
Machinery, equipment and software | 834,970        | 752,722
Furniture and fixtures            | 29,157         | 27,432
Leasehold improvements            | 59,378         | 52,536
Construction in progress          | 2,537          | 6,276
                                  | 1,049,885      | 961,462
Less: accumulated depreciation    | 729,669        | 681,641
                                  | $320,216       | $279,821


Single figure table for total remuneration (audited)
Single figure for the total remuneration received by each executive director for the 52 weeks ended 30 March 2019 (2018/19) and 31 March 2018 (2017/18).
Gavin Darby
Mr Darby received a basic salary of £700,000 per annum and a salary supplement in lieu of pension of 20% of base salary on a pro rata basis for the period up to 31 January 2019. Mr Darby received a pro rata bonus of £525,500 for the financial period to 31 January 2019. Benefits were provided for the period up to 31 January 2019 relating to the provision of an executive driver service, private health insurance and annual medical assessment.
Alastair Murray
Mr Murray received a basic salary for the period of £416,201 per annum and an annualised supplement in lieu of pension of 7.5% of the Earnings Cap (£160,800 for the 2018/19 tax year) which equates to £12,060 for the period together with an additional RPI adjusted pensions supplement of £24,348. He was appointed Acting CEO on 1 February 2019, in addition to his current role of Chief Financial Officer, on a temporary basis whilst the Board conducts a search process for a new CEO.
In recognition of this significant additional responsibility, it was agreed that Mr Murray would receive a monthly salary supplement of £20,000 (which does not count towards pension, annual bonus or long-term incentives) whilst he carries out this role.
Mr Murray received a bonus of £231,615 for the financial period. Benefits related to the provision of a company car, use of an executive driver service (following his appointment as Acting CEO) and private health insurance. In line with the current Remuneration Policy, one-third of his annual bonus award will be in the form of shares deferred for three years.
Full details of the annual bonus performance assessments for Mr Darby and Mr Murray are set out on pages 53 to 55.

                   | Gavin Darby |         | Alastair Murray |
------------------ | ----------- | ------- | --------------- | -------
                   | 2018/19     | 2017/18 | 2018/19         | 2017/18
                   | £’000       | £’000   | £’000           | £’000
Salary             | 583         | 700     | 416             | 408
Salary supplement  | –           | –       | 40              | –
Taxable benefits   | 17          | 22      | 27              | 24
Pension            | 117         | 140     | 36              | 35
Annual Bonus       | 525         | 368     | 232             | 153
Share based awards | –           | –       | –               | –
Total              | 1,242       | 1,230   | 751             | 620


Allowances for Receivables and Sales Returns
The allowances for receivables were as follows (in millions, except percentages):
(1) Calculated as allowance for credit loss on lease receivables as a percentage of gross lease receivables and residual value before unearned income.
The allowance for doubtful accounts is based on our assessment of the collectibility of customer accounts. We regularly review the adequacy of these allowances by considering internal factors such as historical experience, credit quality and age of the receivable balances as well as external factors such as economic conditions that may affect a customer’s ability to pay as well as historical and expected default frequency rates, which are published by major third-party credit-rating agencies and are updated on a quarterly basis. We also consider the concentration of receivables outstanding with a particular customer in assessing the adequacy of our allowances for doubtful accounts. If a major customer’s creditworthiness deteriorates, if actual defaults are higher than our historical experience, or if other circumstances arise, our estimates of the recoverability of amounts due to us could be overstated, and additional allowances could be required, which could have an adverse impact on our operating results.
The allowance for credit loss on financing receivables is also based on the assessment of collectibility of customer accounts. We regularly review the adequacy of the credit allowances determined either on an individual or a collective basis. When evaluating the financing receivables on an individual basis, we consider historical experience, credit quality and age of receivable balances, and economic conditions that may affect a customer’s ability to pay. When evaluating financing receivables on a collective basis, we use expected default frequency rates published by a major third-party credit-rating agency as well as our own historical loss rate in the event of default, while also systematically giving effect to economic conditions, concentration of risk and correlation. Determining expected default frequency rates and loss factors associated with internal credit risk ratings, as well as assessing factors such as economic conditions, concentration of risk, and correlation, are complex and subjective. Our ongoing consideration of all these factors could result in an increase in our allowance for credit loss in the future, which could adversely affect our operating results. Both accounts receivable and financing receivables are charged off at the point when they are considered uncollectible.
A reserve for future sales returns is established based on historical trends in product return rates. The reserve for future sales returns as of July 27, 2019 and July 28, 2018 was $84 million and $123 million, respectively, and was recorded as a reduction of our accounts receivable and revenue. If the actual future returns were to deviate from the historical data on which the reserve had been established, our revenue could be adversely affected.

                                              | July 27, 2019 | July 28, 2018
--------------------------------------------- | ------------- | -------------
Allowance for doubtful accounts               | $136          | $129
Percentage of gross accounts receivable       | 2.4%          | 2.3%
Allowance for credit loss—lease receivables . | $46           | $135
Percentage of gross lease receivables (1)     | 1.8%          | 4.7%
Allowance for credit loss—loan receivables    | $71           | $60
Percentage of gross loan receivables          | 1.3%          | 1.2%


15 Financial risk management (continued)
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due.
Management also actively monitors rolling forecasts of the Group’s cash and cash equivalents.
(i) Maturities of financial liabilities
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities.
The amounts disclosed in the table are the contractual undiscounted cash flows.
The cash flows for unsecured notes assume that the early redemption options would not be exercised by the Group.

Contractual Maturities of Financial Liabilities | Within 12 months | Between 1 and 5 years | Over 5 years | Total contractual cash flows | Carrying amount
----------------------------------------------- | ---------------- | --------------------- | ------------ | ---------------------------- | ---------------
2019                                            | $'000            | $'000                 | $'000        | $'000                        | $'000
Trade payables                                  | 44,840           | -                     | -            | 44,840                       | 44,840
Unsecured notes                                 | 46,634           | 900,046               | -            | 946,680                      | 793,849
Lease liabilities                               | 5,008            | 26,709                | 167,214      | 198,931                      | 73,328
Total non-derivatives                           | 96,482           | 926,755               | 167,214      | 1,190,451                    | 912,017
2018                                            |                  |                       |              |                              |
Trade payables                                  | 27,640           | -                     | -            | 27,640                       | 27,640
Unsecured notes                                 | 18,750           | 342,000               | -            | 360,750                      | 296,912
Lease liabilities                               | 641              | 2,565                 | 5,451        | 8,657                        | 6,042
Total non-derivatives                           | 47,031           | 344,565               | 5,451        | 397,047                      | 330,594