12.

DIVIDENDS

During the third quarter of 2016, the Board of Directors declared a special cash dividend of fifteen dollars ($15.00) per share on outstanding common stock which was payable on October 3, 2016, to shareholders of record at the close of business on September 22, 2016. Accordingly, $1.261 billion is accrued and shown separately as “Dividends payable” under current liabilities in the condensed consolidated balance sheet as of September 30, 2016. A corresponding amount of $1.261 billion has been transferred to a transfer agent for payment of dividend and is recorded in “Advance to transfer agent for dividend payout” under current assets in the condensed consolidated balance sheet as of September 30, 2016. Further, it was resolved by the Board of Directors that restricted stock units granted to employee and directors prior to the dividend record date will receive an amount equivalent to the dividend when the applicable restriction on the restricted stock units lapses.

The special cash dividend was funded through a one-time repatriation of approximately $1.03 billion (net of dividend distribution tax $210 million paid outside US) of cash held by the Company’s foreign subsidiaries. In connection with the one-time repatriation, the Company has recognized a one-time tax expense of approximately $270.6 million (net of foreign tax credits) in the third quarter of 2016.