As of September 30, 2017, the Companys consolidated assets included $932 million in
cash and cash equivalents that was held by its foreign subsidiaries. $197 million of this amount is cash not readily accessible by the Company as it is held by REA Group, a majority owned but separately listed public company. REA Group must
declare a dividend in order for the Company to have access to its share of REA Groups cash balance. The Company earns income outside the U.S., which is deemed to be permanently reinvested in certain foreign jurisdictions. The Company does not
currently intend to repatriate these earnings. Should the Company require more capital in the U.S. than is generated by and/or available to its domestic operations, the Company could elect to transfer funds held in foreign jurisdictions. The
transfer of funds from foreign jurisdictions may be cumbersome due to local regulations, foreign exchange controls and taxes. Additionally, the transfer of funds from foreign jurisdictions may result in higher effective tax rates and higher cash
paid for income taxes for the Company.
The principal uses of cash that affect the Companys liquidity position include the following:
operational expenditures including employee costs and paper purchases; capital expenditures; income tax payments; investments in associated entities and acquisitions. In addition to the acquisitions and dispositions disclosed elsewhere, the Company
has evaluated, and expects to continue to evaluate, possible future acquisitions and dispositions of certain businesses. Such transactions may be material and may involve cash, the issuance of the Companys securities or the assumption of
indebtedness.
Issuer Purchases of Equity Securities
In May 2013, the Companys Board of Directors (the Board of Directors) authorized the Company to repurchase up to an aggregate of $500 million of its Class A Common Stock. On
May 10, 2015, the Company announced it had begun repurchasing shares of Class A Common Stock under the stock repurchase program. No stock repurchases were made during the three months ended September 30, 2017. Through November 3,
2017, the Company repurchased approximately 5.2 million shares of Class A Common Stock for an aggregate cost of approximately $71 million. The remaining authorized amount under the stock repurchase program as of November 3, 2017
was approximately $429 million. All decisions regarding any future stock repurchases are at the sole discretion of a duly appointed committee of the Board of Directors and management. The committees decisions regarding future
stock repurchases will be evaluated from time to time in light of many factors, including the Companys financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal
requirements, regulatory constraints, industry practice, market volatility and other factors that the committee may deem relevant. The stock repurchase authorization may be modified, extended, suspended or discontinued at any time by the Board of
Directors and the Board of Directors cannot provide any assurances that any additional shares will be repurchased.
Dividends
In August 2017, the Board of Directors declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and
Class B Common Stock. This dividend was paid on October 18, 2017 to stockholders of record at the close of business on September 13, 2017. The timing, declaration, amount and payment of future dividends to stockholders, if any, is
within the discretion of the Board of Directors. The Board of Directors decisions regarding the payment of future dividends will depend on many factors, including the Companys financial condition, earnings, capital requirements and debt
facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the Board of Directors deems relevant.
Sources and Uses of CashFor the three months ended September 30, 2017 versus the three months ended September 30, 2016
Net cash used in operating activities from continuing operations for the three months ended September 30, 2017 and 2016 was as
follows (in millions):
|
|
|
|
|
|
|
|
|
For the three months ended September 30,
|
|
2017
|
|
|
2016
|
|
Net cash used in operating activities from continuing operations
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|
$
|
(4
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)
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|
$
|
(268
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)
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Net cash used in operating activities from continuing operations decreased by $264 million for the three months
ended September 30, 2017 as compared to the three months ended September 30, 2016. The decrease was primarily due to the absence of the NAM Groups settlement payments of $250 million during the three months ended
September 30, 2016 and higher Total Segment EBITDA, partially offset by higher working capital.
31