Other identifiable intangible assets were as follows:
Non-amortizing intangible assets are comprised of brands and trademarks.
Amortizing intangible assets, carrying a remaining weighted-average life of approximately 20 years, are principally composed of customer relationships, and acquired intellectual property. For fiscal 2019, 2018, and 2017, we recognized amortization expense of $49.1 million, $34.9 million, and $33.6 million, respectively. Based on amortizing assets recognized in our Consolidated Balance Sheet as of May 26, 2019, amortization expense is estimated to average $58.3 million for each of the next five years, with a high expense of $59.9 million in fiscal 2020 and decreasing to a low expense of $54.2 million in fiscal 2024.
During fiscal 2019, in conjunction with the divestiture of our Italian-based frozen pasta business, Gelit, we reclassified $15.1 million and $1.7 million of goodwill and other identifiable intangible assets, respectively, to noncurrent assets held for sale for periods prior to the divestiture.
During fiscal 2019, as a result of our annual impairment test for indefinite lived intangibles, we recognized impairment charges of $76.5 million for our Chef Boyardee® and Red Fork® brands in our Grocery & Snacks segment. We also recognized impairment charges of $13.1 million for our Aylmer® and Sundrop ® brands in our International segment.
During fiscal 2018, as a result of our annual impairment test for indefinite lived intangibles, we recognized impairment charges of $4.0 million for our HK Anderson® , Red Fork® , and Salpica® brands in our Grocery & Snacks segment. We also recognized an impairment charge of $0.8 million for our Aylmer® brand in our International segment.
During fiscal 2017, we recorded goodwill impairment charges in our International reporting segment totaling $198.9 million, of which $139.2 million related to our Canadian reporting unit and $59.7 million related to our Mexican reporting unit. These impairment charges resulted from a change in reporting segments, which occurred in the first quarter of fiscal 2017 when we were required to determine new reporting units at a lower level, and from further deterioration in forecasted sales and profits during fiscal 2017, which were caused primarily by changes in foreign exchange rates.
In fiscal 2017, due to declining sales of certain brands, we elected to perform a quantitative impairment test for indefinite lived intangibles of those brands. During fiscal 2017, we recognized impairment charges of $31.5 million for our Del Monte® brand and $5.5 million for our Aylmer® brand in our International segment. We also recognized impairment charges of $67.1 million for our Chef Boyardee® brand and $1.1 million for our Fiddle Faddle® brand in our Grocery & Snacks segment.
Notes to Consolidated Financial Statements - (Continued) Fiscal Years Ended May 26, 2019, May 27, 2018, and May 28, 2017 (columnar dollars in millions except per share amounts)

                                 |                       | 2019                     |                       | 2018
-------------------------------- | --------------------- | ------------------------ | --------------------- | ------------------------
                                 | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization
Non-amortizing intangible assets | $3,678.0              | $—                       | $918.3                | $—
Amortizing intangible assets .   | 1,244.2               | 260.8                    | 576.6                 | 212.1
                                 | $4,922.2              | $260.8                   | $1,494.9              | $212.1


9. Accrued Liabilities
Accrued liabilities consisted of the following as of June 30, 2019 and 2018:

                                  | June 30, |
--------------------------------- | -------- | ------
($ in millions)                   | 2019     | 2018
Accrued compensation and benefits | $71.2    | $83.3
Derivative financial instruments  | 16.7     | —
Accrued postretirement benefits   | 14.7     | 15.4
Deferred revenue                  | 10.5     | 10.4
Accrued interest expense          | 10.4     | 10.4
Accrued income taxes              | 4.2      | 1.4
Accrued pension liabilities       | 3.4      | 3.3
Other                             | 26.5     | 24.4
Total accrued liabilities         | $157.6   | $148.6


The assets and liabilities of OpCo that are included in our Consolidated Balance Sheets at September 30, 2019 and 2018 are as follows:
The assets of OpCo are restricted for OpCo’s use and are not available for the general operations of Cubic. OpCo’s debt is non-recourse to Cubic. Cubic’s maximum exposure to loss as a result of its equity interest in the P3 Venture is limited to the $2.7 million outstanding letter of credit, which will be converted to a cash contribution upon completion of the design and build phase of the MBTA Contract.

                                                   |            | September 30,
-------------------------------------------------- | ---------- | --------------
                                                   | 2019       | 2018
                                                   |            | (in thousands)
Cash                                               | $  347     | $  374
Restricted cash                                    | 9,967      | 10,000
Other current assets                               | 33         | —
Long-term capitalized contract costs               | —          | 33,818
Long-term contracts financing receivable           | 115,508    | —
Other noncurrent assets                            | 1,419      | 810
Total assets                                       | $  127,274 | $  45,002
Trade accounts payable                             | $  25      | $  165
Accrued compensation and other current liabilities | 191        | —
Due to Cubic                                       | 25,143     | 11,724
Other long-term liabilities                        | 21,605     | 13
Long-term debt                                     | 61,994     | 9,056
Total liabilities                                  | $  108,958 | $  20,958
Total Cubic equity                                 | (603)      | (304)
Noncontrolling interests                           | 18,919     | 24,348
Total liabilities and owners' equity               | $ 127,274  | $ 45,002


6. Revenue continued
Contract assets and liabilities recognised at 31 March 2019 are as follows:
£1,216m of the contract liability recognised at 1 April 2018 was recognised as revenue during the year. Impairment losses of £36m were recognised on contract assets during the year. Other than business-as-usual movements there were no significant changes in contract asset and liability balances during the year.

                     | 31 March 2019 | 1 April 2018
-------------------- | ------------- | ------------
                     | £m            | £m
Contract assets      |               |
Current              | 1,353         | 1,417
Non-current          | 249           | 198
                     | 1,602         | 1,615
Contract liabilities |               |
Current              | 1,225         | 1,406
Non-current          | 200           | 87
                     | 1,425         | 1,493


GreenSky, Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (United States Dollars in thousands, except per share data, unless otherwise stated)
Note 9. Other Liabilities
The following table details the components of other liabilities in the Consolidated Balance Sheets as of the dates indicated.
(1) We elected the fair value method to account for our servicing liabilities. Refer to Note 3 for additional information.
(2) Related party distributions payable are not included in this balance, but rather are included within related party liabilities.
(3) Refer to Note 3 and Note 8 for additional information on our interest rate swap, which was in a liability position as of December 31, 2019.
(4) Tax related liabilities primarily include certain taxes payable related to the Reorganization Transactions.
(5) Deferred lease liabilities were calculated in accordance with legacy lease guidance in ASC 840, Leases, for the amount presented as of December 31, 2018. Under the new lease guidance codified in ASC 842, Leases, which we adopted on January 1, 2019, we presented operating lease liabilities separately on the Consolidated Balance Sheets as of December 31, 2019. See Note 1 and Note 14 for additional information on our lease accounting.
(6) Accruals and other liabilities as of December 31, 2018 was adjusted to exclude the financial guarantee liability to conform to the current period presentation in the Consolidated Balance Sheets. Refer to Note 1 for additional discussion of our basis of presentation.

                                   | December 31, |
---------------------------------- | ------------ | -------
                                   | 2019         | 2018
Transaction processing liabilities | $24,465      | $4,958
Servicing liabilities(1)           | 3,796        | 3,016
Distributions payable(2)           | 5,978        | 10,066
Interest rate swap(3)              | 2,763        | —
Tax related liabilities(4)         | 873          | 4,412
Deferred lease liabilities(5)      | —            | 2,489
Accruals and other liabilities(6)  | 9,442        | 10,110
Other liabilities                  | $47,317      | $35,051


Item 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Aggregate audit fees, audit-related fees, tax fees and the aggregate of all other fees billed to us by Ernst & Young LLP for the fiscal years ended June 30, 2019 and 2018 were as follows:
(1) Audit Fees consist of fees incurred for professional services rendered for the integrated audit of our annual consolidated financial statements, review of the quarterly consolidated financial statements and foreign statutory audits and services that are normally provided by Ernst & Young LLP in connection with statutory and regulatory filings or engagements. Audit fees also include accounting consultations, research related to the integrated audit and comfort letter services in relation to our exchangeable senior notes.
(2) Audit-Related Fees consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s consolidated financial statements and are not reported under “Audit Fees.” This primarily consists of fees for service organization control audits and due diligence on acquisitions.
(3) Tax fees relate to assistance with tax compliance, tax planning and various tax advisory services.
(4) Other fees are any additional amounts for products and services provided by the principal accountants.
Our audit committee has adopted a pre-approval policy for the engagement of our independent accountant to perform certain audit and non-audit services. Pursuant to this policy, which is designed to assure that such engagements do not impair the independence of our auditors, the audit committee pre-approves annually all audit services, audit related services, tax services and other services as described above, that may be performed by our independent accountants. All of the audit and non-audit services provided by our principal accountants have been pre-approved by our Audit Committee.

                       | 2019                  | 2018
---------------------- | --------------------- | ------
                       | (U.S. $ in thousands) |
Audit fees (1)         | $2,980                | $3,469
Audit-related fees (2) | 648                   | 447
Tax fees (3)           | 220                   | 238
Other fees (4)         | 8                     | 3
Total                  | $3,856                | $4,157


The operating expense line items in our income statement include the following share-based payment expenses:
Share-Based Payment Expenses by Functional Area
In 2019, we paid €79 million in share-based payments that became fully vested because of terminations due to operational reasons in connection with our restructuring plan. These payments as well as the expense portion initially allocated to future services were classified as share-based payments and not as restructuring expenses.

€ millions                                  | 2019  | 2018 | 2017
------------------------------------------- | ----- | ---- | -----
Cost of cloud and software                  | 138   | 78   | 115
Cost of services                            | 246   | 142  | 158
Research and development                    | 429   | 210  | 269
Sales and marketing                         | 562   | 312  | 442
General and administration                  | 461   | 88   | 135
Share-based payment expenses                | 1,835 | 830  | 1,120
Thereof cash-settled share-based payments   | 1,664 | 674  | 963
Thereof equity-settled share-based payments | 171   | 156  | 157


(1) Includes cloud services and license support revenue adjustments related to certain cloud services and license support contracts that would have otherwise been recorded as revenues by the acquired businesses as independent entities but were not recognized in our GAAP-based consolidated statements of operations for the periods presented due to business combination accounting requirements. Such revenue adjustments were included in our operating segment results for purposes of reporting to and review by our CODMs. See “Presentation of Operating Segment results and Other Financial Information” above for additional information.
(2) Excludes stock-based compensation and certain expense allocations. Also excludes amortization of intangible assets and certain other GAAP-based expenses, which were not allocated to our operating segment results for purposes of reporting to and review by our CODMs, as further described under “Presentation of Operating Segment results and Other Financial Information” above.
Excluding the effects of currency rate fluctuations, our cloud and license business’ total revenues increased in fiscal 2019 relative to fiscal 2018 due to growth in our cloud services and license support revenues, which was primarily due to increased customer purchases and renewals of cloud-based services and license support services in recent periods, contributions from our recent acquisitions and increased cloud license and on-premise license revenues. In constant currency, our total applications revenues and our total infrastructure revenues each grew during fiscal 2019 relative to fiscal 2018 as customers continued to deploy our applications technologies and infrastructure technologies through different deployment models that we offer that enable customer choice. The Americas region contributed 43%, the EMEA region contributed 31% and the Asia Pacific region contributed 26% of the constant currency revenues growth for this business in fiscal 2019.
In constant currency, total cloud and license expenses increased in fiscal 2019 compared to fiscal 2018 due to higher sales and marketing expenses and higher cloud services and license support expenses, each of which increased primarily due to higher employee related expenses from higher headcount and due to higher technology infrastructure expenses.
Excluding the effects of currency rate fluctuations, our cloud and license segment’s total margin increased in fiscal 2019 compared to fiscal 2018 primarily due to increased revenues, while total margin as a percentage of revenues decreased slightly due to expenses growth.

Year Ended May 31,                     |                             |        |                |
-------------------------------------- | --------------------------- | ------ | -------------- | -------
                                       |                             |        | Percent Change |
(Dollars in millions)                  | 2019                        | Actual | Constant       | 2018
                                       | Cloud and License Revenues: |        |                |
Americas (1)                           | $18,410                     | 2%     | 3%             | $18,030
EMEA (1)                               | 9,168                       | 0%     | 4%             | 9,163
Asia Pacific (1)                       | 5,004                       | 3%     | 7%             | 4,848
Total revenues (1)                     | 32,582                      | 2%     | 4%             | 32,041
                                       | Expenses:                   |        |                |
Cloud services and license support (2) | 3,597                       | 5%     | 6%             | 3,441
Sales and marketing (2)                | 7,398                       | 3%     | 5%             | 7,213
Total expenses (2)                     | 10,995                      | 3%     | 6%             | 10,654
Total Margin                           | $21,587                     | 1%     | 3%             | $21,387
Total Margin %                         | 66%                         |        |                | 67%
                                       | % Revenues by Geography:    |        |                |
Americas                               | 57%                         |        |                | 56%
EMEA                                   | 28%                         |        |                | 29%
Asia Pacific                           | 15%                         |        |                | 15%
                                       | Revenues by Offerings:      |        |                |
Cloud services and license support (1) | $26,727                     | 2%     | 4%             | $26,269
Cloud license and on-premise license   | 5,855                       | 1%     | 4%             | 5,772
Total revenues (1)                     | $32,582                     | 2%     | 4%             | $32,041
                                       | Revenues by Ecosystem:      |        |                |
Applications revenues (1)              | $11,510                     | 4%     | 6%             | $11,065
Infrastructure revenues (1)            | 21,072                      | 0%     | 3%             | 20,976
Total revenues (1)                     | $32,582                     | 2%     | 4%             | $32,041


Results of Operations
Year Ended December 31, 2019 Compared to the Year Ended December 31, 2018
Our management reviews and analyzes several key financial measures in order to manage our business and assess the quality of and variability of our service revenue, operating results and cash flows. The following summary tables present a comparison of our results of operations with respect to certain key financial measures. The comparisons illustrated in the tables are discussed in greater detail below.
(1) Includes non-cash equity-based compensation expense of $994 and $895 for 2019 and 2018, respectively.
(2) Includes non-cash equity-based compensation expense of $17,466 and $16,813 for 2019 and 2018, respectively.
Service Revenue. Our service revenue increased 5.0% from 2018 to 2019. Exchange rates negatively impacted our increase in service revenue by approximately $5.3 million. All foreign currency comparisons herein reflect results for 2019 translated at the average foreign currency exchange rates for 2018. We increased our total service revenue by increasing the number of sales representatives selling our services, by expanding our network, by adding additional buildings to our network, by increasing our penetration into the buildings connected to our network and by gaining market share by offering our services at lower prices than our competitors.
Revenue recognition standards include guidance relating to any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a seller and a customer and may include, but is not limited to, gross receipts taxes, Universal Service Fund fees and certain state regulatory fees. We record these taxes billed to our customers on a gross basis (as service revenue and network operations expense) in our consolidated statements of operations. The impact of these taxes including the Universal Service Fund resulted in an increase to our revenues from 2018 to 2019 of approximately $2.4 million.
Our net-centric customers tend to purchase their service on a price per megabit basis. Our corporate customers tend to utilize a small portion of their allocated bandwidth on their connections and tend to purchase their service on a per connection basis. Revenues from our corporate and net-centric customers represented 68.4% and 31.6% of total service revenue, respectively, for 2019 and represented 64.9% and 35.1% of total service revenue, respectively, for 2018. Revenues from corporate customers increased 10.6% to $373.7 million for 2019 from $337.8 million for 2018 primarily due to an increase in our number of our corporate customers. Revenues from our net-centric customers decreased by 5.4% to $172.5 million for 2019 from $182.3 million for 2018 primarily due to an increase in our number of net-centric customers being offset by a decline in our average price per megabit. Our revenue from our net-centric customers has declined as a percentage of our total revenue and grew at a slower rate than our corporate customer revenue because net-centric customers purchase our services based upon a price per megabit basis and our average price per megabit declined by 23.9% from 2018 to 2019. Additionally, the net-centric market experiences a greater level of pricing pressure than the corporate market and net-centric customers who renew their service with us expect their renewed service to be at a lower price than their current price. We expect that our average price per megabit will continue to decline at similar rates which would result in our corporate revenues continuing to represent a greater portion of our total revenues and our net-centric revenues continuing to grow at a lower rate than our corporate revenues. Additionally, the impact of foreign exchange rates has a more significant impact on our net-centric revenues.
Our on-net revenues increased 5.9% from 2018 to 2019. We increased the number of our on-net customer connections by 8.4% at December 31, 2019 from December 31, 2018. On-net customer connections increased at a greater rate than on-net revenues primarily due to the 3.8% decline in our on-net ARPU, primarily from a decline in ARPU for our net-centric customers. ARPU is determined by dividing revenue for the period by the average customer connections for that period. Our average price per megabit for our installed base of customers is determined by dividing the aggregate monthly recurring fixed charges for those customers by the aggregate committed data rate for the same customers. The decline in on-net ARPU is partly attributed to volume and term based pricing discounts. Additionally, on-net customers who cancel their service from our installed base of customers, in general, have an ARPU that is greater than the ARPU for our new customers due to declining prices primarily for our on-net services sold to our net-centric customers. These trends resulted in the reduction to our on-net ARPU and a 23.9% decline in our average price per megabit for our installed base of customers.
Our off-net revenues increased 2.7% from 2018 to 2019. Our off-net revenues increased as we increased the number of our off-net customer connections by 6.3% at December 31, 2019 from December 31, 2018. Our off-net customer connections increased at a greater rate than our off-net revenue primarily due to the 5.0% decrease in our off-net ARPU.
Network Operations Expenses. Network operations expenses include the costs of personnel associated with service delivery, network management, and customer support, network facilities costs, fiber and equipment maintenance fees, leased circuit costs, access and facilities fees paid to building owners and excise taxes billed to our customers and recorded on a gross basis. Non-cash equity-based compensation expense is included in network operations expenses consistent with the classification of the employee's salary and other compensation. Our network operations expenses, including non-cash equity-based compensation expense, increased 0.1% from 2018 to 2019 as we were connected to 8.0% more customer connections and we were connected to 125 more on-net buildings as of December 31, 2019 compared to December 31, 2018. The increase in network operations expense is primarily attributable to an increase in costs related to our network and facilities expansion activities, the increase in our off-net revenues and the increase in taxes recorded on a gross basis partly offset by price reductions obtained in certain of our circuit costs and fewer fiber operating leases. When we provide off-net services we also assume the cost of the associated tail circuits.
Selling, General, and Administrative Expenses (“SG&A”). Our SG&A expenses, including non-cash equity- based compensation expense, increased 9.8% from 2018 to 2019. Non-cash equity-based compensation expense is included in SG&A expenses consistent with the classification of the employee's salary and other compensation and was $17.5 million for 2019 and $16.8 million for 2018. SG&A expenses increased primarily from an increase in salaries and related costs required to support our expansion and increases in our sales efforts and an increase in our headcount. Our sales force headcount increased by 10.8% from 619 at December 31, 2018 to 686 at December 31, 2019 and our total headcount increased by 8.3% from 974 at December 31, 2018 to 1,055 at December 31, 2019.
Depreciation and Amortization Expenses. Our depreciation and amortization expenses decreased 1.2% from 2018 to 2019. The decrease is primarily due to the depreciation expense associated with the increase related to newly deployed fixed assets being offset by the decline in depreciation expense from fully depreciated fixed assets.
Gains on Equipment Transactions. We exchanged certain used network equipment and cash consideration for new network equipment resulting in gains of $1.1 million for 2019 and $1.0 million for 2018. The gains are based upon the excess of the estimated fair value of the new network equipment over the carrying amount of the returned used network equipment and the cash paid. The increase in gains from 2018 to 2019 was due to purchasing more equipment under the exchange program in 2019 than we purchased in 2018.
Interest Expense. Interest expense results from interest incurred on our $445.0 million of senior secured notes, interest incurred on our $189.2 million of senior unsecured notes, interest on our installment payment agreement, interest on our finance lease obligations and interest incurred on our €135.0 million of 2024 Notes that we issued on June 25, 2019. Our interest expense increased by 12.5% for 2019 from 2018 primarily due to the issuance of $70.0 million of senior secured notes we issued in August 2018, the issuance of €135.0 million of senior unsecured notes we issued in June 2019 and an increase in our finance lease obligations. The 2024 Notes were issued at par for €135.0 million ($153.7 million) on June 25, 2019. The 2024 Notes were issued in Euros and are reported in our reporting currency — US Dollars. As of December 31, 2019 the 2024 Notes were valued at $151.4 million resulting in an unrealized gain on foreign exchange of $2.3 million in 2019.
Income Tax Expense. Our income tax expense was $15.1 million for 2019 and $12.7 million for 2018. The increase in our income tax expense was primarily related to an increase in our income before income taxes.
Buildings On-net. As of December 31, 2019 and 2018 we had a total of 2,801 and 2,676 on-net buildings connected to our network, respectively.

                                                 | Year Ended December 31 | Percent Change |
------------------------------------------------ | ---------------------- | -------------- | ------
                                                 | 2019                   | 2018           | Change
                                                 | (in thousands)         |                |
Service revenue                                  | $546,159               | $520,193       | 5.0%
On-net revenues                                  | 396,753                | 374,555        | 5.9%
Off-net revenues                                 | 148,931                | 145,004        | 2.7%
Network operations expenses(1)                   | 219,801                | 219,526        | 0.1%
Selling, general, and administrative expenses(2) | 146,913                | 133,858        | 9.8%
Depreciation and amortization expenses           | 80,247                 | 81,233         | (1.2)%
Gains on equipment transactions                  | 1,059                  | 982            | 7.8%
Interest expense                                 | 57,453                 | 51,056         | 12.5%
Income tax expense                               | 15,154                 | 12,715         | 19.2%


(12) Basic and Diluted Net Loss per Share
Basic net loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential dilutive shares of common stock. Basic and diluted net loss per share of common stock were the same for all periods presented as the impact of all potentially dilutive securities outstanding was anti-dilutive. The Company uses the if converted method for calculating any potential dilutive effect on diluted loss per share.
The following common equivalent shares were excluded from the diluted net loss per share calculation because their inclusion would have been anti-dilutive:
In connection with the issuance of the 2024 Notes in December 2019, the Company paid $44.9 million to enter into capped call option agreements to reduce the potential dilution to holders of the Company’s common stock upon conversion of the 2024 Notes. In connection with the issuance of the 2022 Notes in November 2017, the Company paid $12.9 million to enter into capped call option agreements to reduce the potential dilution to holders of the Company’s common stock upon conversion of the 2022 Notes.
In December 2019, the Company partially terminated capped call options related to the 2022 Notes and received $5.8 million. The capped call option agreements are excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive.

                                |           | Year Ended December 31, |
------------------------------- | --------- | ----------------------- | ---------
                                | 2019      | 2018                    | 2017
Convertible senior notes        | 6,733,914 | 3,411,199               | 3,411,199
Stock-based compensation grants | 2,038,174 | 2,562,274               | 3,268,610
Total                           | 8,772,088 | 5,973,473               | 6,679,809


Defined Benefit Pension Plan Assets
The investments of the plans are managed by insurance companies or third-party investment managers selected by Autodesk's Trustees, consistent with regulations or market practice of the country where the assets are invested. Investments managed by qualified insurance companies or third-party investment managers under standard contracts follow local regulations, and Autodesk is not actively involved in their investment strategies.
Defined benefit pension plan assets measured at fair value on a recurring basis consisted of the following investment categories at the end of each period as follows:
The insurance contracts in the preceding table represent the immediate cash surrender value of assets managed by qualified insurance companies. Autodesk does not have control over the target allocation or visibility of the investment strategies of those investments. Insurance contracts and investments held by insurance companies made up 35% and 44% of total plan assets as of January 31, 2019 and January 31, 2018, respectively.
The assets held in the investment fund in the preceding table are invested in a diversified growth fund actively managed by Russell Investments in association with Aon Hewitt. The objective of the fund is to generate capital appreciation on a longterm basis through a diversified portfolio of investments. The fund aims to deliver equity-like returns in the medium to long term with around two-thirds the volatility of equity markets. The fair value of the assets held in the investment fund are priced monthly at net asset value without restrictions on redemption.

                                             | Fiscal Year Ended January 31, |         |         |       |
-------------------------------------------- | ----------------------------- | ------- | ------- | ----- | ------
                                             | 2019                          |         |         |       | 2018
                                             | Level 1                       | Level 2 | Level 3 | Total | Total
Insurance contracts                          | $—                            | $28.0   | $—      | $28.0 | $53.0
Other investments                            | —                             | 14.5    | —       | 14.5  | 17.0
Total assets measured at fair value          | $—                            | $42.5   | $—      | $42.5 | 70.0
Cash                                         |                               |         |         | 4.3   | 0.2
Investment Fund valued using net asset value |                               |         |         | 34.0  | 50.9
Total pension plan assets at fair value      |                               |         |         | $80.8 | $121.1


AMERICAN TOWER CORPORATION AND SUBSIDIARIES SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (dollars in millions)
(1) Includes amounts incurred primarily for the construction of new sites.
(2) Includes amounts incurred to purchase or otherwise secure the land under communications sites.
(3) Includes amounts incurred to increase the capacity of existing sites, which results in new incremental tenant revenue.
(4) Includes amounts incurred to enhance existing sites by adding additional functionality, capacity or general asset improvements.
(5) Includes amounts incurred in connection with acquisitions or new market launches. Start-up capital expenditures includes non-recurring expenditures contemplated in acquisitions, new market launch business cases or initial deployment of new technologies or innovation solutions that lead to an increase in sitelevel cash flow generation.
(6) Primarily includes regional improvements and other additions.
(7) Primarily includes foreign currency exchange rate fluctuations and other deductions.

                                         | 2019      | 2018      | 2017
---------------------------------------- | --------- | --------- | ---------
Gross amount at beginning                | $15,960.1 | $15,349.0 | $14,277.0
Additions during period:                 |           |           |
Acquisitions                             | 887.0     | 721.4     | 499.7
Discretionary capital projects (1)       | 258.1     | 173.5     | 120.7
Discretionary ground lease purchases (2) | 189.8     | 180.4     | 150.4
Redevelopment capital expenditures (3)   | 213.6     | 177.3     | 138.8
Capital improvements (4)                 | 161.2     | 94.0      | 65.6
Start-up capital expenditures (5)        | 71.3      | 113.1     | 158.1
Other (6)                                | 45.2      | (3.0)     | 106.4
Total additions                          | 1,826.2   | 1,456.7   | 1,239.7
Deductions during period:                |           |           |
Cost of real estate sold or disposed     | (304.6)   | (395.7)   | (246.5)
Other (7)                                | (52.4)    | (449.9)   | 78.8
Total deductions:                        | (357.0)   | (845.6)   | (167.7)
Balance at end                           | $17,429.3 | $15,960.1 | $15,349.0


(11) STOCK-BASED COMPENSATION
The following tables summarize the Company’s stock-based compensation expense for liability and equity classified awards included in the consolidated statements of operations:
CII Common and Preferred Units
Prior to the Company’s IPO, the Company was given authorization by Communications Infrastructure Investments, LLC (“CII”) to award 625,000,000 of CII’s common units as profits interests to employees, directors, and affiliates of the Company. The common units were historically considered to be stock-based compensation with terms that required the awards to be classified as liabilities due to cash settlement features. The vested portion of the awards was reported as a liability and the fair value was re-measured at each reporting date until the date of settlement, with a corresponding charge (or credit) to stock-based compensation expense. On December 31, 2016, the CII common units became fully vested and as such there is no remaining unrecognized compensation cost associated with CII common units for any period subsequent to December 31, 2016.
The value of the CII common units was derived from the value of CII’s investments in the Company and Onvoy, LLC and its subsidiaries (“OVS”), a company that provided voice and managed services which the Company spun off during the year ended June 30, 2014. As the value derived from each of these investments was separately determinable and there was a plan in place to distribute the value associated with the investment in Company shares separate from the value derived from OVS, the two components were accounted for separately. The OVS component of the CII awards was adjusted to fair value each reporting period. On December 31, 2015, CII entered into an agreement to sell OVS to a third party. The sale was completed in May 2016. Based on the sale price, the estimated fair value of OVS awards was increased, resulting in an increase to stock based compensation expense and corresponding increase to additional paid-in capital of $12.9 million for the year ended June 30, 2016. Proceeds from the sale to be distributed to the Company’s employees was paid by CII.

                                             | Year Ended June 30, |       |
-------------------------------------------- | ------------------- | ----- | ------
                                             | 2019                | 2018  | 2017
                                             | (in millions)       |       |
Included in:                                 |                     |       |
Operating costs                              | $11.3               | $9.9  | $11.3
Selling, general and administrative expenses | 98.0                | 86.8  | 102.8
Total stock-based compensation expense       | $109.3              | $96.7 | $114.1
CII common and preferred units $ — $ — $10.1 | $ —                 | $ —   | $10.1
Part A restricted stock units                | 93.8                | 82.3  | 76.5
Part B restricted stock units                | 13.0                | 12.4  | 26.0
Part C restricted stock units                | 2.5                 | 2.0   | 1.5
Total stock-based compensation expense       | $109.3              | $96.7 | $114.1


2.6 Taxes (continued)
1 Net deferred tax liabilities include net deferred tax assets of $2,195,000 (2018: $1,937,000) from the iMoney Group.
Recognition and measurement
Our income tax expense is the sum of current and deferred income tax expenses. Current income tax expense is calculated on accounting profit after adjusting for non-taxable and non-deductible items based on rules set by the tax authorities. Deferred income tax expense is calculated at the tax rates that are expected to apply to the period in which the deferred tax asset is realised or the deferred tax liability is settled. Both our current and deferred income tax expenses are calculated using tax rates that have been enacted or substantively enacted at reporting date.
Our current and deferred taxes are recognised as an expense in profit or loss, except when they relate to items that are directly recognised in other comprehensive income or equity. In this case, our current and deferred tax expenses are also recognised directly in other comprehensive income or equity.
We generally recognise deferred tax liabilities for all taxable temporary differences, except to the extent that the deferred tax liability arises from:
• the initial recognition of goodwill; and
• the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither our accounting profit nor our taxable income at the time of the transaction.
For our investments in controlled entities and associated entities, recognition of deferred tax liabilities is required unless we are able to control the timing of our temporary difference reversal and it is probable that the temporary difference will not reverse.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carried forward unused tax losses and tax credits, can be utilised
Deferred tax assets and deferred tax liabilities are offset in the statement of financial position where they relate to income taxes levied by the same taxation authority and to the extent that we intend to settle our current tax assets and liabilities on a net basis.

                                              | CONSOLIDATED |
--------------------------------------------- | ------------ | ----------
                                              | 2019 $’000   | 2018 $’000
Deferred taxes                                |              |
Deferred tax assets relate to the following:  |              |
Trade and other payables                      | 2,312        | 1,558
Provisions                                    | 4,759        | 2,230
Property, Plant and Equipment                 | -            | 1,680
ITAA 97 Section 40-880 business related costs | 92           | 105
Unrealised foreign exchange differences       | 58           | 56
Unused tax losses                             | 4,837        | 4,665
Other                                         | 13           | 114
Total deferred tax assets                     | 12,071       | 10,408
                                              |              |
Deferred tax liabilities relate to following: |              |
Trail commission asset                        | (34,168)     | (31,253)
Property, Plant and Equipment                 | (581)        | -
Development costs                             | (2,109)      | (2,359)
Total deferred tax liabilities                | (36,858)     | (33,612)
Net deferred tax liabilities1                 | (24,787)     | (23,204)


IMFT: Since 2006, we have owned 51% of IMFT, a joint venture between us and Intel. IMFT is governed by a Board of Managers, for which the number of managers appointed by each member varies based on the members' respective ownership interests. IMFT manufactures semiconductor products exclusively for its members under a long-term supply agreement at prices approximating cost. In 2018, IMFT discontinued production of NAND and subsequent to that time manufactured 3D XPoint memory. In 2018, we announced that we and Intel will no longer jointly develop 3D XPoint technology beyond the second generation and we substantially completed this cost-sharing arrangement in the first quarter of 2020. IMFT sales to Intel were $731 million, $507 million, and $493 million for 2019, 2018, and 2017, respectively.
IMFT's capital requirements are generally determined based on an annual plan approved by the members, and capital contributions to IMFT are requested as needed. Capital requests are made to the members in proportion to their then-current ownership interest. Members may elect to not contribute their proportional share, and in such event, the contributing member may elect to contribute any amount of the capital request, either in the form of an equity contribution or member debt financing. Under the supply agreement, the members have rights and obligations to the capacity of IMFT in proportion to their investment, including member debt financing. Any capital contribution or member debt financing results in a proportionate adjustment to the sharing of output on an eight-month lag. Pursuant to the terms of the IMFT joint venture agreement, Intel provided debt financing of $1.01 billion to IMFT in 2018 and IMFT repaid $316 million to Intel in 2019. As of August 29, 2019, current debt included $693 million of IMFT Member Debt. Members pay their proportionate share of fixed costs associated with IMFT's capacity.  IMFT's capital requirements are generally determined based on an annual plan approved by the members, and capital contributions to IMFT are requested as needed. Capital requests are made to the members in proportion to their then-current ownership interest. Members may elect to not contribute their proportional share, and in such event, the contributing member may elect to contribute any amount of the capital request, either in the form of an equity contribution or member debt financing. Under the supply agreement, the members have rights and obligations to the capacity of IMFT in proportion to their investment, including member debt financing. Any capital contribution or member debt financing results in a proportionate adjustment to the sharing of output on an eight-month lag. Pursuant to the terms of the IMFT joint venture agreement, Intel provided debt financing of $1.01 billion to IMFT in 2018 and IMFT repaid $316 million to Intel in 2019. As of August 29, 2019, current debt included $693 million of IMFT Member Debt. Members pay their proportionate share of fixed costs associated with IMFT's capacity.
In January 2019, we exercised our option to acquire Intel's interest in IMFT. Subsequently, Intel set the closing date to occur on October 31, 2019, at which time IMFT will become a wholly-owned subsidiary. In the first quarter of 2020, we expect to pay Intel approximately $1.4 billion in cash for Intel's noncontrolling interest in IMFT and IMFT member debt. Pursuant to the terms of the IMFT wafer supply agreement, Intel notified us of its election to receive supply from IMFT from the closing date through April 2020 at a volume equal to approximately 50% of their volume from IMFT in the six-month period prior to closing.
Creditors of IMFT have recourse only to IMFT's assets and do not have recourse to any other of our assets. The following table presents the assets and liabilities of IMFT included in our consolidated balance sheets:
Amounts exclude intercompany balances that were eliminated in our consolidated balance sheets.

As of                                 | 2019   | 2018
------------------------------------- | ------ | ------
Assets                                |        |
Cash and equivalents                  | $130   | $91
Receivables                           | 128    | 126
Inventories                           | 124    | 114
Other current assets                  | 9      | 8
Total current assets                  | 391    | 339
Property, plant, and equipment        | 2,235  | 2,641
Other noncurrent assets               | 38     | 45
Total assets                          | $2,664 | $3,025
Liabilities                           |        |
Accounts payable and accrued expenses | $118   | $138
Current debt                          | 696    | 20
Other current liabilities             | 37     | 9
Total current liabilities             | 851    | 167
Long-term debt                        | 53     | 1,064
Other noncurrent liabilities          | 5      | 74
Total liabilities                     | $909   | $1,305


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share data)
Disaggregated Revenue
The following table presents revenues disaggregated by the major markets we serve:

                    | Twelve Months Ended December 31, |
------------------- | -------------------------------- | --------
                    | 2019                             | 2018
Transportation      | $299,005                         | $300,124
Industrial          | 78,369                           | 86,968
Medical             | 41,901                           | 40,663
Aerospace & Defense | 32,569                           | 23,323
Telecom & IT        | 17,155                           | 19,405
Total               | $468,999                         | $470,483


Accumulated Benefit Obligation
The following table provides information for the plans with an accumulated benefit obligation for fiscal years 2019 and 2018 (in thousands):

                               | August 31, |
------------------------------ | ---------- | --------
                               | 2019       | 2018
Projected benefit obligation   | $174,690   | $161,104
Accumulated benefit obligation | $161,729   | $152,380
Fair value of plan assets      | $158,101   | $151,715


The table below presents estimated payments and benefits that would have been provided to Messrs. Lien, Walcott and Bertz, assuming their respective qualifying terminations as of December 31, 2019. As a condition of receiving any severance benefits in connection with the change in control agreements, each named executive officer must execute a full waiver and release of all claims in our favor. In addition to the benefits described in the tables below, upon termination of employment each executive officer may be eligible for other benefits that are generally available to all salaried employees, such as life insurance, long-term disability, and 401(k) benefits.
(1) Mr. Lien would receive 18 months of base salary and 150% of his annual target bonus. Mr. Walcott would receive 12 months of base salary and 100% of his annual target bonus. Mr. Bertz would receive six months of base salary, 50% of his annual target bonus and the pro rata portion of his unpaid annual target bonus for the period of completed service.
(2) Mr. Lien would receive 18 months of COBRA benefits reimbursement and Mr. Bertz would receive six months of COBRA benefits reimbursement. Mr. Walcott elected not to receive benefits from the Company that would be eligible for continuation under COBRA. As a result, Mr. Walcott would not be eligible for post-termination COBRA benefits reimbursement.
(3) As of December 31, 2019, Mr. Walcott held a stock option with 13,006 unvested shares subject to such option with an exercise price of $17.15 per share. The exercise price of each of these stock options is greater than $1.38, the closing price of our common stock on The Nasdaq Global Market as of December 31, 2019. As of December 31, 2019, Mr. Walcott had 78,750 unvested RSUs and Mr. Bertz had 40,000 unvested RSUs.
(4) Mr. Lien would receive nine months of base salary and 75% of his annual target bonus; Mr. Walcott would receive six months of base salary and 50% of his target bonus; Mr. Bertz would receive three months of base salary and 25% of his target bonus.
(5) Mr. Lien would receive nine months of COBRA benefits reimbursement and Mr. Bertz would receive three months of COBRA benefits reimbursement. Mr. Walcott elected not to receive benefits from the Company that would be eligible for continuation under COBRA. As a result, Mr. Walcott would not be eligible for post-termination COBRA benefits reimbursement.

                                                      | Chris Lien | Wister Walcott | Robert Bertz
----------------------------------------------------- | ---------- | -------------- | ------------
Termination after Change of Control:                  |            |                |
Cash Severance(1)                                     | $1,200,000 | $450,000       | $254,063
Post-termination COBRA Reimbursement(2)               | 48,160     | —              | 11,098
Acceleration of Stock Options and RSUs(3)             | —          | 108,675        | 55,200
Total                                                 | $1,248,160 | $558,675       | $320,361
Termination not in connection with Change of Control: |            |                |
Cash Severance(4)                                     | $600,000   | $225,000       | $103,125
Post-termination COBRA Reimbursement(5)               | 24,080     | —              | 5,549
Total                                                 | $624,080   | $225,000       | $108,674


Year Ended December 31, 2019 Compared to Year Ended December 31, 2018
Revenues
Our Products and Licensing segment included revenues from sales of test and measurement systems, primarily representing sales of our Optical Backscatter Reflectometer, ODiSI, and Optical Vector Analyzer platforms, optical components and sub-assemblies and sales of our Hyperion and Terahertz sensing platforms. Our Products and Licensing segment revenues increased $22.5 million to $44.5 million for the year ended December 31, 2019 compared to $21.9 million for the year ended December 31, 2018.
The increase resulted primarily from $10.8 million of revenues realized from the legacy business of MOI and $10.5 million of revenues realized from the legacy business of GP during the year ended December 31, 2019. Continued growth in sales of our fiber-optic sensing products, including our ODiSI products directed toward the expanding use of composite materials and the need for improved means of testing their structural integrity, and our communications test instruments also contributed to this increase.
Our Technology Development segment revenues increased $5.1 million to $26.0 million for the year ended December 31, 2019 compared to $21.0 million for the year ended December 31, 2018. Revenues within this segment increased due to additional contract awards, including higher value Phase 2 SBIR contracts. The increase continues a growth trend experienced over the past two years largely driven by successes in Phase 2 SBIR awards. The increase was realized primarily in our intelligent systems, advanced materials, optical systems and terahertz research groups. As Phase 2 SBIR contracts generally have a performance period of a year or more, we currently expect Technology Development segment revenues to remain at a similar level for the near term.

                                | Years ended December 31, |             |               |
------------------------------- | ------------------------ | ----------- | ------------- | ------------
                                | 2019                     | 2018        | $ Difference  | % Difference
Products and licensing revenues | $44,491,041              | $21,949,689 | $22,541,352   | 102.7%
Technology development revenues | 26,024,674               | 20,967,556  | 5,057,118     | 24.1%
Total revenues                  | $70,515,715              | $42,917,245 | $27,598,470   | 64.3%


Deferred tax assets and liabilities at December 27, 2019 and December 28, 2018 consist of the following:
The deferred tax provision results from the effects of net changes during the year in deferred tax assets and liabilities arising from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company files income tax returns in the U.S. Federal and various state and local jurisdictions as well as the Canadian Federal and provincial districts. For Federal income tax purposes, the 2016 through 2019 tax years remain open for examination by the tax authorities under the normal three-year statute of limitations and the fact that we have not yet filed our tax return for 2019. For state tax purposes, the 2015 through 2019 tax years remain open for examination by the tax authorities under a four-year statute of limitations. The Company records interest and penalties, if any, in income tax expense.
At December 27, 2019, the Company had a valuation allowance of $907 which consisted of a full valuation allowance on the Company’s Canada net operating loss carryforward of $732, offset by a $267 reduction in deferred tax liabilities related to indefinite-lived intangible assets acquired in 2013, and a valuation allowance of $442 against the Company’s state net operating loss carryforwards. The valuation allowances on net operating loss carryforwards are necessary as they are not expected be be fully realizable in the future. The Company’s Canada net operating loss carryforward expires at various dates between fiscal 2036 and 2038 and the Company’s state net operating loss carryforwards expire at various dates between fiscal 2019 and 2038.
For financial reporting purposes, the Company’s foreign subsidiaries had operating income before income taxes of $18 for the fiscal year ended December 27, 2019 and net operating losses before income taxes of $3,223 and $1,520 for the fiscal years ended December 28, 2018 and December 29, 2017, respectively. The Company is permanently reinvested in the earnings of it’s foreign operations which are disregarded for US tax purposes. In addition, the US tax consequences and foreign withholding taxes on any future remittances are immaterial.
As of December 27, 2019 and December 28, 2018, the Company did not have any material uncertain tax positions.

                                     | December 27, 2019  | December 28, 2018
------------------------------------ | ------------------ | -----------------
Deferred tax assets:                 |                    |
Receivables and inventory            | $4,468             | $3,978
Accrued expenses                     | 170                | 1,835
Self-insurance reserves              | 1,957              | 2,050
Net operating loss carryforwards     | 1,393              | 1,749
Stock compensation                   | 1,894              | 1,670
Operating lease liabilities          | 37,740             | —
Other                                | 612                | 803
Total deferred tax assets            | 48,234             | 12,085
Deferred tax liabilities:            |                    |
Property & equipment                 | (5,218)            | (3,446)
Intangible assets                    | (15,192)           | (13,197)
Contingent earn-out liabilities      | (1,526)            | (3,179)
Prepaid expenses and other           | (1,379)            | (1,052)
Operating lease right-of-use assets  | (34,895)           | —
Total deferred tax liabilities       | (58,210)           | (20,874)
Valuation allowance                  | (907)              | (812)
Total net deferred tax liability     | $(10,883)          | $(9,601)


Note 35 Adoption of IFRS 16
Upon adoption of IFRS 16 on January 1, 2019, we recognized right-of-use assets of $2,257 million within property, plant and equipment, and lease liabilities of $2,304 million within debt, with an increase to our deficit of $19 million. These amounts were recognized in addition to assets under finance leases of $1,947 million and the corresponding finance lease liabilities of $2,097 million at December 31, 2018 under IAS 17. As a result, on January 1, 2019, our total right-of-use assets and lease liabilities amounted to $4,204 million and $4,401 million, respectively. The table below shows the impacts of adopting IFRS  16 on our January 1, 2019 consolidated statement of financial position.
BCE’s operating lease commitments at December 31, 2018 were $1,612 million. The difference between operating lease commitments at December 31, 2018 and lease liabilities of $2,304 million upon adoption of IFRS 16 at January 1, 2019, is due mainly to an increase of $1,122 million related to renewal options reasonably certain to be exercised, an increase of $112 million mainly related to non-monetary transactions and a decrease of ($542) million as a result of discounting applied to future lease payments, which was determined using a weighted average incremental borrowing rate of 3.49% at January 1, 2019.

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


The amount of our operating expenses increased by $43 million on a sequential basis, mainly driven by seasonality and salary dynamic.
On a year-over-year basis, our operating expenses increased by $42 million, mainly due to salary dynamic and increased spending on certain R&D programs, partially offset by favorable currency effects, net of hedging.
Fourth quarter 2019 R&D expenses were net of research tax credits in France and Italy, which amounted to $37 million, compared to $29 million in the third quarter of 2019 and $39 million in the fourth quarter of 2018.

                                             |                   | Three Months Ended |                          | % Variation |
-------------------------------------------- | ----------------- | ------------------ | ------------------------ | ----------- | --------------
                                             | December 31, 2019 | September 29, 2019 | December 31, 2018        | Sequential  | Year-Over-Year
                                             |                   |                    | (Unaudited, in millions) |             |
Selling, general and administrative expenses | $(285)            | $(267)             | $(285)                   | (6.3)%      | 0.4%
Research and development expenses            | (387)             | (362)              | (345)                    | (7.0)       | (12.3)
Total operating expenses                     | $(672)            | $(629)             | $(630)                   | (6.7)%      | (6.6)%
As percentage of net revenues                | (24.4)%           | (24.7)%            | (23.8)%                  | +30 bps     | -60 bps


INCOME TAX EXPENSE
Below is a summary of the difference between income tax expense computed by applying the statutory income tax rate to income before income tax expense and the actual income tax expense for the year.
Our effective income tax rate this year was 25.8% compared to 26.9% for 2018. The effective income tax rate for 2019 was lower than the statutory tax rate primarily as a result of a reduction to the Alberta corporate income tax rate over a four-year period.

(In millions of dollars, except tax rates)           | Years ended December 31 |       |
---------------------------------------------------- | ----------------------- | ----- | -----
                                                     | 2019                    | 2018  | %Chg
Adjusted EBITDA 1                                    | 6,212                   | 5,983 | 4
Deduct (add):                                        |                         |       |
Depreciation and amortization                        | 2,488                   | 2,211 | 13
Gain on disposition of property, plant and equipment | -                       | (16)  | (100)
Restructuring, acquisition and other                 | 139                     | 210   | (34)
Finance costs                                        | 840                     | 793   | 6
Other income                                         | (10)                    | (32)  | (69)
Income tax expense                                   | 712                     | 758   | (6)
Net income                                           | 2,043                   | 2,059 | (1)


15. AVERAGE SHARES OUTSTANDING
Our basic earnings per share calculation is computed based on the weighted-average number of common shares outstanding. Our diluted earnings per share calculation is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive common shares include nonvested stock awards and units, stock options, and non-management director stock equivalents. Performance share awards are included in the average diluted shares outstanding each period if the performance criteria have been met at the end of the respective periods.
The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding in each fiscal year (in thousands):

                                                              | 2019   | 2018   | 2017
------------------------------------------------------------- | ------ | ------ | ------
Weighted-average shares outstanding — basic                   | 25,823 | 28,499 | 30,630
Effect of potentially dilutive securities:                    |        |        |
Nonvested stock awards and units                              | 211    | 240    | 182
Stock options                                                 | 10     | 40     | 59
Performance share awards                                      | 24     | 28     | 43
Weighted-average shares outstanding — diluted                 | 26,068 | 28,807 | 30,914
Excluded from diluted weighted-average shares outstanding:    |        |        |
Antidilutive                                                  | 186    | 150    | 76
Performance conditions not satisfied at the end of the period | 65     | 44     | 53


The Company recorded amortization expense of $4.8 million, $1.5 million and $0.1 million for the years ended March 31, 2019, 2018 and 2017, respectively. Amortization relating to developed technology and capitalized software was recorded within cost of revenue and amortization of customer relationships and trade names was recorded within sales and marketing expenses.
Future estimated amortization expense of intangible assets as of March 31, 2019 is as follows:

           | Purchased Intangible Assets | Capitalized Software
---------- | --------------------------- | --------------------
2020       | $ 2,582                     | $ 3,522
2021       | 2,560                       | 2,790
2022       | 2,560                       | 1,420
2023       | 2,560                       | 528
Thereafter | 12,012                      | 89
Total      | $ 22,274                    | $ 8,349


STOCK OPTIONS
The following is a summary of stock option activity during the years ended December 31, 2019 and 2018:

                                | Number of Options Outstanding | Weighted Average Exercise Price | Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value (thousands)
------------------------------- | ----------------------------- | ------------------------------- | --------------------------------------------- | -------------------------------------
Outstanding – December 31, 2017 | 2,341,340                     | $1.77                           | 5.78                                          | $1,087
Options granted                 | 376,667                       | 2.41                            |                                               |
Options exercised               | 224,400                       | 1.59                            |                                               |
Options forfeited               | 6,961                         | 1.42                            |                                               |
Outstanding – December 31, 2018 | 2,486,646                     | $1.89                           | 7.01                                          | $1,550
Options granted                 | 50,832                        | 3.02                            |                                               |
Options exercised               | -                             |                                 |                                               |
Options forfeited               | 181,281                       | 2.23                            |                                               |
Outstanding – December 31, 2019 | 2,356,197                     | $1.89                           | 5.93                                          | $628
Exercisable – December 31, 2019 | 1,843,468                     | $1.75                           | 5.34                                          | $624


Interest rate swaps
The Group has the following interest rate swaps in place as at the end of the reporting period:
Future interest rate swaps in place at the end of the reporting period have maturity dates ranging from 23 September 2019 to 23 September 2026 (2018: 24 September 2018 to 23 September 2026).
On 24 June 2019, the Group reset the interest rates associated with AUD denominated interest rate swaps. This resulted in a cash outflow of $22.9m which reduced the Group’s financial liability presented in note 9.8. The cumulative change in fair value of these hedging instruments is carried in a separate reserve in equity (cash flow hedge reserve of NSPT presented within non-controlling interest in the Group’s consolidated statement of changes in equity).
This balance will be recycled from the hedge reserve to finance costs in the statement of profit and loss in future reporting periods corresponding to when the underlying hedged item impacts profit or loss. For the year ended 30 June 2019, $0.1m has been recognised in finance costs relating to this item.

                                          | 2019    | 2018
----------------------------------------- | ------- | -------
                                          | $'000   | $'000
Interest rate swaps (AUD) at face value   |         |
Current interest rate swaps               | 400,000 | 270,000
Future interest rate swaps                | 275,000 | 400,000
Interest rate swaps (NZD) at face value   |         |
Current interest rate swaps               | 73,500  | 53,500
Future interest rate swaps                | 50,000  | 100,000
AUD equivalent of NZD interest rate swaps |         |
Current interest rate swaps               | 70,361  | 48,944
Future interest rate swaps                | 47,864  | 91,485


b) Liquefaction services revenue:
The Hilli is moored in close proximity to the Customer’s gasfields, providing liquefaction service capacity over the term of the LTA. Liquefaction services revenue recognized comprises the following amounts:
(1) The LTA bills at a base rate in periods when the oil price is $60 or less per barrel (included in "Liquefaction services revenue" in the consolidated statements of income), and at an increased rate when the oil price is greater than $60 per barrel (recognized as a derivative and included in "Realized and unrealized gain on oil derivative instrument" in the consolidated statements of income, excluded from revenue and from the transaction price).
(2) Customer billing during the commissioning period, prior to vessel acceptance and commencement of the contract term, of $33.8 million is considered an upfront payment for services. These amounts billed were deferred (included in "Other current liabilities" and "Other non-current liabilities" in the consolidated balance sheets) and recognized as part of "Liquefaction services revenue" in the consolidated statements of income evenly over the contract term.
(3) The Day 1 gain was established when the oil derivative instrument was initially recognized in December 2017 for $79.6 million (recognized in "Other current liabilities" and "Other non-current liabilities" in the consolidated balance sheets). This amount is amortized and recognized as part of "Liquefaction services revenue" in the consolidated statements of income evenly over the contract term.
We expect to recognize liquefaction services revenue related to the partially unsatisfied performance obligation at the reporting date evenly over the remaining contract term of less than eight years, including the components of transaction price described above.

                                                          | Year Ended December 31, |
--------------------------------------------------------- | ----------------------- | -------
(in thousands of $)                                       | 2019                    | 2018
Base tolling fee (1)                                      | 204,501                 | 119,677
Amortization of deferred commissioning period revenue (2) | 4,220                   | 2,467
Amortization of Day 1 gain (3)                            | 9,950                   | 5,817
Other                                                     | (575)                   | (336)
Total                                                     | 218,096                 | 127,625


Other income and expenses, net consisted of the following:
The Company receives significant public funding from governmental agencies in several jurisdictions. Public funding for research and development is recognized ratably as the related costs are incurred once the agreement with the respective governmental agency has been signed and all applicable conditions have been met.
R&D funding received in the year ended December 31, 2017 from the Nano2017 program with the French government is subject to a financial return in the year 2024 and depends on the future cumulative sales of a certain product group from 2019 to 2024. As such, an accrual amounting to $47 million was recorded as of December 31, 2019 compared to $42 million as of December 31, 2018.
Phase-out costs are costs incurred during the closing stage of a Company’s manufacturing facility. They are treated in the same manner as start-up costs. Start-up costs represent costs incurred in the start-up and testing of the Company’s new manufacturing facilities, before reaching the earlier of a minimum level of production or six months after the fabrication line’s quality certification.
Exchange gains and losses, net represent the portion of exchange rate changes on transactions denominated in currencies other than an entity’s functional currency and the changes in fair value of trading derivative instruments which are not designated as hedge and which have a cash flow effect related to operating transactions, as described in Note 27.
Patent costs include legal and attorney fees and payment for claims, patent pre-litigation consultancy and legal fees. They are reported net of settlements, if any, which primarily include reimbursements of prior patent litigation costs.
In 2019, gain on sale of businesses and non-current assets was related to the sale of one of our non-strategic assets. In 2018, it was related to the sale of one of the Company’s non-strategic investments while in 2017, it
was related to the sale of assets.

                                                  | Year ended December 31, 2019 | Year ended December 31, 2018 | Year ended December 31, 2017
------------------------------------------------- | ---------------------------- | ---------------------------- | ----------------------------
Research and development funding                  | 132                          | 52                           | 65
Phase-out and start-up costs                      | (38)                         | (1)                          | (8)
Exchange gain (loss), net                         | —                            | 4                            | 4
Patent costs                                      | (1)                          | (8)                          | (9)
Gain on sale of businesses and non-current assets | 7                            | 8                            | 4
Other, net                                        | 3                            | (2)                          | (1)
Total                                             | 103                          | 53                           | 55


CASH FLOW ANALYSIS
(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. (2) For further details on the Corporation's cash flow attributable to discontinued operations, please consult the "Discontinued operations" section.
OPERATING ACTIVITIES Fiscal 2019 fourth-quarter cash flow from operating activities increased by 19.3% compared to the same period of the prior year mainly from: • higher adjusted EBITDA; • the decreases in income taxes paid and financial expense paid; and • the increase in changes in non-cash operating activities primarily due to changes in working capital.
INVESTING ACTIVITIES Fiscal 2019 fourth-quarter investing activities decreased by 25.8% compared to the same period of the prior year mainly due to the acquisition of spectrum licenses in the Canadian broadband services segment in the comparable period of the prior year combined with a decrease in acquisitions of property, plant and equipment.

Three months ended August 31,                                                                  | 2019      | 2018 (1)  | Change
---------------------------------------------------------------------------------------------- | --------- | --------- | -------
(in thousands of dollars, except percentages)                                                  | $         | $         | %
Cash flow from operating activities                                                            | 304,702   | 255,438   | 19.3
Cash flow from investing activities                                                            | (144,332) | (194,474) | (25.8)
Cash flow from financing activities                                                            | (50,198)  | (52,127)  | (3.7)
Effect of exchange rate changes on cash and cash equivalents denominated in a foreign currency | (1,405)   | (63)      | —
Net change in cash and cash equivalents from continuing operations                             | 108,767   | 8,774     | —
Net change in cash and cash equivalent from discontinued operations(2)                         | —         | 13,133    | (100.0)
Cash and cash equivalents, beginning of the period                                             | 447,737   | 62,818    | —
Cash and cash equivalents, end of the period                                                   | 556,504   | 84,725    | —


ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
MARKET FOR COMMON STOCK
The Company’s common stock trades on NYSE American under the trading symbol “DIT”. As of October 31, 2019 the closing price of our common stock on NYSE American was $73.00 and there were 565,942 common shares outstanding. As of that date, the Company had approximately 521 persons holding common shares beneficially of which approximately 121 are shareholders of record (including direct participants in the Depository Trust Company). The following table reflects the range of the high and low closing prices per share of the Company’s common stock reported by NYSE American for fiscal 2019 and 2018.

            | Fiscal 2018 |        | Fiscal 2019 |
----------- | ----------- | ------ | ----------- | -------
            | High        | Low    | High        | Low
4th Quarter | $100.00     | $73.41 | $89.00      | $ 81.10
3rd Quarter | 100.00      | 88.27  | 98.35       | 81.30
2nd Quarter | 101.51      | 88.01  | 99.87       | 84.10
1st Quarter | 99.75       | 77.92  | 97.85       | 86.61


ITEM 6. SELECTED FINANCIAL DATA
The following selected financial data has been derived from our consolidated financial statements (in thousands, except per share data). This data should be read together with Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, and the consolidated financial statements and related notes included elsewhere in this annual report. The financial information below is not necessarily indicative of the results of future operations. Future results could differ materially from historical results due to many factors, including those discussed in Item 1A, Risk Factors.
(1) The consolidated balance sheet and statement of operations for the year ended December 31, 2019, includes the acquisition of Speedpay as discussed in Note 3, Acquisition, to our Notes to Consolidated Financial Statements in Part IV, Item 15 of this Form 10-K.
(2) The consolidated balance sheet and statement of operations for the year ended December 31, 2019, reflects the application of Accounting Standards Update (“ASU”) 2016-02, Leases (codified as “ASC 842”) as discussed in Note 14, Leases, to our Notes to Consolidated Financial Statements.
(3) The consolidated balance sheet and statement of operations for the year ended December 31, 2018, reflects the adoption of ASU 2014-09, Revenue from Contracts with Customers (codified as “ASC 606”), as discussed in Note 2, Revenue, to our Notes to Consolidated Financial Statements, including a cumulative adjustment of $244.0 million to retained earnings.
(4) The consolidated statement of operations for the year ended December 31, 2017, reflects the Baldwin Hackett & Meeks, Inc. (“BHMI”) judgment. We recorded $46.7 million in general and administrative expense and $1.4 million in interest expense, as discussed in Note 15, Commitments and Contingencies, to our Notes to Consolidated Financial Statements.
(5) The consolidated balance sheet and statement of operations for the year ended December 31, 2016, reflects the sale of Community Financial Services assets and liabilities.
(6) During the year ended December 31, 2019, we borrowed $500.0 million in the form of a new senior secured term loan and drew $250.0 million on the available Revolving Credit Facility to fund the acquisition of Speedpay. During the year ended December 31, 2018, we issued $400.0 million in senior notes due August 15, 2026. We used the net proceeds of these senior notes to redeem our outstanding $300.0 million senior notes due 2020, which we originally entered in to during the year ended December 31, 2013. See Note 5, Debt, to our Notes to Consolidated Financial Statements for additional information.

                             |             |           | December 31, |           |
---------------------------- | ----------- | --------- | ------------ | --------- | ---------
                             | 2019 (1)(2) | 2018 (3)  | 2017         | 2016 (5)  | 2015
Balance Sheet Data:          |             |           |              |           |
Working capital              | $308,426    | $269,857  | $100,039     | $31,625   | $(2,360)
Total assets                 | 3,257,534   | 2,122,455 | 1,861,639    | 1,902,295 | 1,975,788
Current portion of debt (6)  | 34,148      | 20,767    | 17,786       | 90,323    | 89,710
Debt (long-term portion) (6) | 1,350,592   | 658,602   | 668,356      | 656,063   | 845,639
Stockholders’ equity         | 1,129,968   | 1,048,231 | 764,597      | 754,917   | 654,400


ADJUSTED NET DEBT AND DEBT LEVERAGE RATIO
We use adjusted net debt and debt leverage ratio to conduct valuation-related analysis and make capital structure-related decisions. Adjusted net debt includes long-term debt, net debt derivative assets or liabilities, short-term borrowings, and cash and cash equivalents.
1 Includes current and long-term portion of long-term debt before deferred transaction costs and discounts. See “Reconciliation of adjusted net debt” in “Non-GAAP Measures and Related Performance Measures” for the calculation of this amount. 2 For purposes of calculating adjusted net debt and debt leverage ratio, we believe including debt derivatives valued without adjustment for credit risk is commonly used to evaluate debt leverage and for market valuation and transactional purposes.
3 See “Accounting Policies” for more information. 4 Adjusted net debt and adjusted EBITDA are non-GAAP measures and should not be considered substitutes or alternatives for GAAP measures. These are not defined terms under IFRS and do not have standard meanings, so may not be a reliable way to compare us to other companies. See “Non-GAAP Measures and Related Performance Measures” for information about these measures, including how we calculate themand the debt leverage ratio inwhich they are used.
As a result of our adoption of IFRS 16 effective January 1, 2019, we
have modified our definition of adjusted net debt such that it now includes the total of “current portion of lease liabilities” and “lease liabilities”. We believe adding total lease liabilities to adjusted net debt is appropriate as they reflect payments to which we are contractually committed and the related payments have been removed from our calculation of adjusted EBITDA due to the accounting change.
In addition, as at December 31, 2019, we held $1,831 million of
marketable securities in publicly traded companies (2018 – $1,051 million). Our adjusted net debt increased by $3,379 million from December 31, 2018 as a result of: • the inclusion of lease liabilities in the calculation, which had a balance of $1,725 million at year-end, as discussed above; and • a net increase in our outstanding long-term debt, in part due to the 600 MHz spectrum licences we acquired for $1,731 million this year; partially offset by • an increase in our net cash position.
See “Overview of Financial Position” for more information.

                                                                           | As at December 31 | As at January 1 | As at December 31
-------------------------------------------------------------------------- | ----------------- | --------------- | -----------------
(In millions of dollars, except ratios)                                    | 2019              | 2019            | 2018
Long-term debt 1                                                           | 16,130            | 14,404          | 14,404
Net debt derivative assets valued without any adjustment for credit risk 2 | (1,414)           | (1,448)         | (1,448)
Short-term borrowings                                                      | 2,238             | 2,255           | 2,255
Lease liabilities 3                                                        | 1,725             | 1,545           | –
Cash and cash equivalents                                                  | (494)             | (405)           | (405)
Adjusted net debt 4                                                        | 18,185            | 16,351          | 14,806
Divided by: trailing 12-month adjusted EBITDA 4                            | 6,212             | 6,157           | 5,983
Debt leverage ratio 4                                                      | 2.9               | 2.7             | 2.5


4. Earnings per Share
Reconciliations of the weighted average shares outstanding for basic and diluted Earnings per Share for the years ended April 30, 2019 and 2018, respectively, were as follows (in thousands):
** For the years ended April 30, 2019 and 2018, dilutive securities are excluded since the inclusion of such shares would be antidilutive due to the net loss for the period. The exercisable shares excluded for 2019 and 2018 are 1,216,000 and 1,259,500, respectively. The effect of dilutive securities for 2019 and 2018 would have been 242,874 and 127,536, respectively.

For the years ended April 30,                   |           |
----------------------------------------------- | --------- | ---------
                                                | 2019      | 2018
Basic EPS Shares outstanding (weighted average) | 8,916,250 | 8,841,166
Effect of Dilutive Securities                   | **        | **
Diluted EPS Shares outstanding                  | 9,159,124 | 8,841,166


Receivables (payables): The balances with Golar Partners and subsidiaries as of December 31, 2019 and 2018 consisted of the following:
(iii) Interest income on short-term loan, balances due(to)/from Golar Partners and its subsidiaries - Receivables and payables with Golar Partners and its subsidiaries comprise primarily of unpaid management fees and expenses for management, advisory and administrative services, dividends in respect of the Hilli Common Units and other related party arrangements including the Hilli Disposal. In addition, certain receivables and payables arise when we pay an invoice on behalf of a related party and vice versa. Receivables and payables are generally settled quarterly in arrears. Balances owing to or due from Golar Partners and its subsidiaries are unsecured, interest-free and intended to be settled in the ordinary course of business. In November 2019, we loaned $15.0 million to Golar Partners, with interest of LIBOR plus 5.0%. The loan was fully repaid, including interest of $0.1 million, in December 2019.
(vii) Methane Princess lease security deposit movements - This represents net advances from Golar Partners since its IPO, which correspond with the net release of funds from the security deposits held relating to a lease for the Methane Princess. This is in connection with the Methane Princess tax lease indemnity provided to Golar Partners under the Omnibus Agreement. Accordingly, these amounts will be settled as part of the eventual termination of the Methane Princess lease.

(in thousands of $)                                              | 2019    | 2018
---------------------------------------------------------------- | ------- | -------
Balances due (to)/from Golar Partners and its subsidiaries (iii) | (2,708) | 4,091
Methane Princess lease security deposit movements (vii)          | (2,253) | (2,835)
Total                                                            | (4,961) | 1,256


With the highest-performance networks and unmatched new services and content, Bell is building a better communications experience at home, in the workplace and on the go.
And customers are responding: In 2019, Bell welcomed the industry’s highest number of new subscribers across the growth services of retail Internet, IPTV and wireless and diligently managed the decline in traditional home phone and other legacy services.
The speed and quality of Canada’s Best National Mobile Network drove unparalleled gains in both postpaid and prepaid wireless, Internet growth accelerated with the fastest consumer home Internet service available, while Fibe TV and Alt TV are winning customers over with leading product and programing innovations.
(1) Excludes wholesale subscribers.
(2) Excludes business telephone services.

BCE retail subscribers                                                 |       |       |
---------------------------------------------------------------------- | ----- | ----- | ------
(millions)                                                             | 2019  | 2018  | Change
Wireless                                                               | 9.96  | 9.61  | +3.6%
High-speed Internet(1)                                                 | 3.56  | 3.41  | +4.3%
Television(1)                                                          | 2.77  | 2.77  | +0.2%
Total growth services, subscribers: retail Internet, IPTV and wireless | 16.29 | 15.79 | +3.2%
Local residential telephone services(1)(2)                             | 2.70  | 2.96  | (8.9%)
Total(2)                                                               | 18.98 | 18.75 | +1.3%


WebLife Balance, Inc.
On November 30, 2017 (the “WebLife Acquisition Date”), pursuant to the terms of a merger agreement, the Company acquired all shares of WebLife Balance, Inc. (“WebLife”), a browser isolation offerings vendor, to extend its advanced threat protection capabilities into personal email, while preserving the privacy of its users.
The Company has estimated fair values of acquired tangible assets, intangible assets and liabilities at the WebLife Acquisition Date. The results of operations and the fair values of the acquired assets and liabilities assumed have been included in the accompanying consolidated financial statements since the WebLife Acquisition Date.
At the WebLife Acquisition Date, the consideration transferred was $48,765, net of cash acquired of $278.
Per the terms of the merger agreement, unvested stock options held by WebLife employees were canceled and exchanged for the Company’s unvested awards. The fair value of $333 of these unvested options was attributed to pre-combination service and included in consideration transferred. The fair value of $1,468 was allocated to post-combination services. The unvested awards are subject to the recipient’s continued service with the Company, and $1,468 is recognized ratably as stock-based compensation expense over the required remaining service period. Also, as part of the merger agreement, 107 shares of the Company’s common stock were deferred for certain key employees with the total fair value of $9,652 (see Note 11 “Equity Award Plans”), which was not included in the purchase price. The deferred shares are subject to forfeiture if employment terminates prior to the lapse of the restrictions, and their fair value is expensed as stock-based compensation expense over the remaining period.
Proofpoint, Inc. Notes to Consolidated Financial Statements (Continued) (dollars and share amounts in thousands, except per share amounts)
The following table summarizes the fair values of tangible assets acquired, liabilities assumed, intangible assets and goodwill:

                            |            | Estimated
--------------------------- | ---------- | -----------
                            |            | Useful Life
                            | Fair value | (in years)
Current assets              | $534       | N/A
Fixed assets                | 23         | N/A
Liabilities                 | (88)       | N/A
Deferred revenue            | (700)      | N/A
Customer relationships      | 600        | 5
Core/developed technology   | 16,600     | 5
Deferred tax liability, net | (4,440)    | N/A
Goodwill                    | 36,514     | Indefinite
                            | $49,043    |


Purchases of Equity Securities by the Issuer and Affiliated Purchasers
The following table contains information with respect to purchases made by or on behalf of CalAmp or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act), of our common stock during the following months of our fourth quarter ended February 28, 2019:
(1) Average price paid per share for shares purchased as part of our share repurchase program (includes brokerage commissions).
(2) On December 10, 2018, we announced that our Board of Directors authorized a new share repurchase program under which we may repurchase up to $20.0 million of our outstanding common stock over the next 12 months. As of February 28, 2019, $10.0 million of the $20.0 million had been utilized. Our share repurchase program does not obligate us to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.

                               | Total Number of Shares Purchased | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that may be Purchased Under the Plans or Programs (2)
------------------------------ | -------------------------------- | -------------------------------- | -------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------
December 1 - December 31, 2018 | 75,000                           | $12.96                           | 75,000                                                                           | $19,028,173
January 1 - January 31, 2019   | 524,577                          | $14.00                           | 524,577                                                                          | $11,685,543
February 1 - February 28, 2019 | 116,042                          | $14.53                           | 116,042                                                                          | $10,000,013
Total                          | 715,619                          | $13.97                           | 715,619                                                                          | $10,000,013


Disaggregation of revenue
The following table provides information about disaggregated revenue by primary geographical markets:
The Company derived over 90%, and approximately 88% and 84% of subscription revenues from RingCentral Office product for the years ended December 31, 2019, 2018 and 2017, respectively

                             |      | Year ended December 31, |
---------------------------- | ---- | ----------------------- | ----
                             | 2019 | 2018                    | 2017
Primary geographical markets |      |                         |
North America                | 93%  | 95%                     | 96%
Others                       | 7%   | 5%                      | 4%
Total revenues               | 100% | 100%                    | 100%