001-34774 | 20-5446972 | |
(Commission File Number) | (IRS Employer Identification No.) |
CBOE HOLDINGS, INC. | ||
(Registrant) | ||
By: | /s/ Alan J. Dean | |
Alan J. Dean | ||
Executive Vice President and Chief Financial Officer | ||
Dated: February 6, 2015 |
Exhibit Number | Description | |
99.1 | Press Release, dated February 6, 2015. |
News Release |
(in millions, except per share, revenue per contract and trading days) | 4Q 2014 | 4Q 2013 | Y/Y Change | YTD 2014 | YTD 2013 | Y/Y Change | ||||||||||
Key Statistics: | ||||||||||||||||
Total Trading Days | 64 | 64 | 252 | 252 | ||||||||||||
Average Daily Volume (options and futures) | 5.64 | 4.89 | 15 | % | 5.26 | 4.71 | 12 | % | ||||||||
Total Trading Volume (options and futures) | 361.2 | 313.0 | 15 | % | 1,325.4 | 1,187.6 | 12 | % | ||||||||
Average Revenue Per Contract | $ | 0.340 | $ | 0.316 | 8 | % | $ | 0.330 | $ | 0.334 | (1 | )% | ||||
GAAP Financial Highlights: | ||||||||||||||||
Total Operating Revenues | $ | 166.5 | $ | 141.8 | 17 | % | $ | 617.2 | $ | 572.1 | 8 | % | ||||
Total Operating Expenses | 79.5 | 69.2 | 15 | % | 303.4 | 286.2 | 6 | % | ||||||||
Operating Income | 87.0 | 72.6 | 20 | % | 313.8 | 285.9 | 10 | % | ||||||||
Operating Margin % | 52.2 | % | 51.2 | % | 100 bps | 50.8 | % | 50.0 | % | 80 bps | ||||||
Net Income | $ | 49.3 | $ | 46.1 | 7 | % | $ | 189.7 | $ | 176.0 | 8 | % | ||||
Net Income Allocated to Common Stockholders | $ | 49.1 | $ | 45.6 | 8 | % | $ | 188.4 | $ | 173.9 | 8 | % | ||||
Diluted EPS | $ | 0.58 | $ | 0.52 | 12 | % | $ | 2.21 | $ | 1.99 | 11 | % | ||||
Weighted Average Shares Outstanding | 84.3 | 87.1 | (3 | )% | 85.4 | 87.3 | (2 | )% | ||||||||
Adjusted Financial Highlights (1) | ||||||||||||||||
Total Operating Expenses | 77.7 | 69.2 | 12 | % | 299.0 | 281.2 | 6 | % | ||||||||
Operating Income | 88.8 | 72.6 | 22 | % | 318.2 | 290.9 | 9 | % | ||||||||
Operating Margin % | 53.4 | % | 51.2 | % | 220 bps | 51.6 | % | 50.8 | % | 80 bps | ||||||
Net Income | $ | 53.8 | $ | 46.1 | 17 | % | $ | 195.8 | $ | 179.6 | 9 | % | ||||
Net Income Allocated to Common Stockholders | $ | 53.6 | $ | 45.6 | 18 | % | $ | 194.5 | $ | 177.4 | 10 | % | ||||
Diluted EPS | $ | 0.64 | $ | 0.52 | 23 | % | $ | 2.28 | $ | 2.03 | 12 | % |
• | On February 2, 2015, the company reported that January 2015 average daily volume (ADV) for total options was 5.13 million contracts, a 5 percent increase from December 2014 and an 8 percent decrease from January 2014. In addition, CFE reported that January 2015 ADV was 228,683 contracts, an increase of 9 percent from January 2014 and a 1 percent increase from December 2014. |
• | In 2014, the company reached new all-time highs in total trading volume and average daily volume, reporting 1.3 billion options and futures contracts traded on CBOE, C2 and CFE, an increase of 12 percent over the 1.2 billion contracts traded in 2013. Average daily volume was 5.3 million contracts, an increase of 12 percent from the 4.7 million contracts per day in 2013. New annual records were also set for SPX options, VIX options and VIX futures. |
• | On December 22, 2014, the company reported that CBOE and C2 have entered into an agreement with the Financial Industry Regulatory Authority (FINRA), under which FINRA will perform the majority of the exchanges’ regulatory services. Additionally, CBOE entered into a separate agreement with FINRA, under which CBOE will assign to FINRA its responsibility to perform regulatory services for the Options Regulatory Surveillance Authority (ORSA), the central organization facilitating collaboration in insider trading surveillance and investigations for all U.S. options exchanges. FINRA began performing these services on January 1, 2015. |
• | On December 10, 2014, the company announced that it has entered into a licensing agreement with MSCI Inc., a leading provider of investment decision support tools worldwide, to offer options trading on several MSCI indexes. Under the agreement, in the U.S., options on the MSCI indexes will be solely listed for trading on CBOE. The six indexes included in the agreement are the MSCI EAFE Index, MSCI Emerging Markets Index, MSCI ACWI Index, MSCI USA Index, MSCI World Index and the MSCI ACWI ex-USA Index. |
• | On November 13, 2014, CFE launched futures trading on the CBOE/CBOT 10-year U.S. Treasury Note Volatility Index (ticker symbol: VXTYN). The VXTYN Index, on which futures on VXTYN® are based, is calculated by applying the CBOE Volatility Index® (VIX® Index) methodology to futures options data from CME Group’s 10-year U.S. Treasury note contract -- one of CME Group’s most actively traded interest rate options products. |
• | Core operating expenses are expected to be in the range of $195.0 million to $199.0 million, an increase of 3 to 5 percent compared with $188.9 million in 2014. Continuing stock-based compensation expense included in core expenses is expected to be approximately $12.0 million for the full year. |
• | Depreciation and amortization expense is expected to be in the range of $46.0 million to $48.0 million. |
• | The consolidated effective tax rate is expected to be in the range of 38.5 percent to 39.5 percent. Significant changes in trading volume, expenses, state and local tax rates and other items, including ongoing state and federal tax audits, could materially impact this expectation. |
• | Capital expenditures are projected to be in the range of $37.0 million to $40.0 million, reflecting the company's ongoing investments in systems hardware and software to support and enhance its trading technology. |
CBOE Media Contacts: | Analyst Contact: | |||||
Suzanne Cosgrove | Gary Compton | Debbie Koopman | ||||
(312) 786-7123 | (312) 786-7612 | (312) 786-7136 | ||||
cosgrove@cboe.com | comptong@cboe.com | koopman@cboe.com |
4Q 2014 | 3Q 2014 | 2Q 2014 | 1Q 2014 | 4Q 2013 | ||||||
PRODUCT: | ||||||||||
Equities | 1,940 | 1,852 | 1,806 | 2,165 | 1,912 | |||||
Indexes | 1,759 | 1,476 | 1,472 | 1,749 | 1,494 | |||||
Exchange-traded products | 1,709 | 1,426 | 1,389 | 1,503 | 1,328 | |||||
Total Options Average Daily Volume | 5,408 | 4,754 | 4,667 | 5,417 | 4,734 | |||||
Futures | 236 | 198 | 166 | 203 | 156 | |||||
Total Average Daily Volume | 5,644 | 4,952 | 4,833 | 5,620 | 4,890 |
4Q 2014 | 3Q 2014 | 2Q 2014 | 1Q 2014 | 4Q 2013 | ||||||
PRODUCT: | ||||||||||
Equities | 34.4 | % | 37.4 | % | 37.4 | % | 38.5 | % | 39.1 | % |
Indexes | 31.1 | % | 29.8 | % | 30.5 | % | 31.1 | % | 30.6 | % |
Exchange-traded products | 30.3 | % | 28.8 | % | 28.7 | % | 26.8 | % | 27.1 | % |
Futures | 4.2 | % | 4.0 | % | 3.4 | % | 3.6 | % | 3.2 | % |
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
4Q 2014 | 3Q 2014 | 2Q 2014 | 1Q 2014 | 4Q 2013 | ||||||
Trading Days | 64 | 64 | 63 | 61 | 64 | |||||
PRODUCT: | ||||||||||
Equities | $0.068 | $0.077 | $0.079 | $0.081 | $0.075 | |||||
Indexes | 0.696 | 0.680 | 0.670 | 0.669 | 0.666 | |||||
Exchange-traded products | 0.105 | 0.115 | 0.111 | 0.117 | 0.125 | |||||
Total Options Average Revenue Per Contract | 0.284 | 0.275 | 0.275 | 0.281 | 0.275 | |||||
Futures | 1.616 | 1.625 | 1.639 | 1.617 | 1.566 | |||||
Total Average Revenue Per Contract | $0.340 | $0.329 | $0.322 | $0.329 | $0.316 |
4Q 2014 | 3Q 2014 | 2Q 2014 | 1Q 2014 | 4Q 2013 | |||||||||||
PRODUCT: | |||||||||||||||
Equities | $ | 8,429 | $ | 9,075 | $ | 8,974 | $ | 10,696 | $ | 9,162 | |||||
Indexes | 78,359 | 64,205 | 62,152 | 71,320 | 63,667 | ||||||||||
Exchange-traded products | 11,508 | 10,451 | 9,707 | 10,741 | 10,592 | ||||||||||
Total Options Transaction Fees | $ | 98,296 | $ | 83,731 | $ | 80,833 | $ | 92,757 | $ | 83,421 | |||||
Futures | 24,435 | 20,580 | 17,099 | 20,033 | 15,605 | ||||||||||
Total Transaction Fees | $ | 122,731 | $ | 104,311 | $ | 97,932 | $ | 112,790 | $ | 99,026 |
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Total Operating Expenses | $ | 79,525 | $ | 69,231 | $ | 303,424 | $ | 286,236 | ||||||||
Less: | ||||||||||||||||
Depreciation and amortization | 11,053 | 9,108 | 39,913 | 34,488 | ||||||||||||
Accelerated stock-based compensation expense | — | — | 2,530 | 3,996 | ||||||||||||
Severance expense | 1,863 | — | 1,863 | — | ||||||||||||
Liability related to SEC investigation (in other expenses) | — | — | — | 1,000 | ||||||||||||
Volume-based expenses: | ||||||||||||||||
Royalty fees | 19,266 | 15,043 | 66,110 | 56,576 | ||||||||||||
Trading volume incentives | 874 | 1,227 | 4,080 | 4,355 | ||||||||||||
Core Operating Expenses (non-GAAP): | $ | 46,469 | $ | 43,853 | $ | 188,928 | $ | 185,821 | ||||||||
Less: Continuing stock-based compensation expense | 2,098 | 3,957 | 13,047 | 16,828 | ||||||||||||
Core Operating Expenses Excluding Continuing Stock-Based Compensation (non-GAAP) | $ | 44,371 | $ | 39,896 | $ | 175,881 | $ | 168,993 | ||||||||
Detail of Core Operating Expenses (non-GAAP) | ||||||||||||||||
Employee costs | $ | 27,493 | $ | 28,059 | $ | 117,341 | $ | 114,087 | ||||||||
Data processing | 4,915 | 4,286 | 19,189 | 17,898 | ||||||||||||
Outside services | 8,539 | 5,867 | 31,976 | 34,473 | ||||||||||||
Travel and promotional expenses | 2,727 | 3,254 | 9,046 | 9,806 | ||||||||||||
Facilities costs | 1,445 | 1,245 | 5,721 | 5,053 | ||||||||||||
Other expenses | 1,350 | 1,142 | 5,655 | 4,504 | ||||||||||||
Total | $ | 46,469 | $ | 43,853 | $ | 188,928 | $ | 185,821 |
(in thousands, except per share amounts) | Three months ended December 31, 2014 | ||||||||||||||||
Items Impacting Results | |||||||||||||||||
Reported (GAAP) | Operating Expenses1 | Other Expense2 | Income Tax Provision3 | Adjusted (non-GAAP) | |||||||||||||
Total Operating Revenues | $ | 166,487 | $ | 166,487 | |||||||||||||
Total Operating Expenses | 79,525 | (1,863 | ) | 77,662 | |||||||||||||
Operating Income | 86,962 | 1,863 | 88,825 | ||||||||||||||
Operating Margin | 52.2 | % | 53.4 | % | |||||||||||||
Total Other Expense | (3,017 | ) | 3,000 | (17 | ) | ||||||||||||
Income Before Income Taxes | 83,945 | 1,863 | 3,000 | 88,808 | |||||||||||||
Income Tax Provision | 34,603 | 768 | 1,237 | (1,600 | ) | 35,008 | |||||||||||
Effective Income Tax Rate | 41.2 | % | 39.4 | % | |||||||||||||
Net Income | $ | 49,342 | $ | 1,095 | $ | 1,763 | $ | 1,600 | $ | 53,800 | |||||||
Net Income Allocated to Participating Securities | (223 | ) | (5 | ) | (8 | ) | (7 | ) | (243 | ) | |||||||
Net Income Allocated to Common Stockholders | $ | 49,119 | $ | 1,090 | $ | 1,755 | $ | 1,593 | $ | 53,557 | |||||||
Diluted Net Income per Share Allocated to Common Stockholders | $ | 0.58 | $ | 0.01 | $ | 0.02 | $ | 0.02 | $ | 0.64 |
(in thousands, except per share amounts) | Twelve months ended December 31, 2014 | Twelve months ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Items Impacting Results | Items Impacting Results | ||||||||||||||||||||||||||||||||||
Reported (GAAP) | Operating Expenses1 | Operating Expenses4 | Other Expense2 | Income Tax Provision3 | Adjusted (non-GAAP) | Reported (GAAP) | Operating Expenses4 | Operating Expenses5 | Other Expense2 | Adjusted(non-GAAP) | |||||||||||||||||||||||||
Total Operating Revenues | $ | 617,225 | $ | 617,225 | $ | 572,050 | $ | 572,050 | |||||||||||||||||||||||||||
Total Operating Expenses | 303,424 | (1,863 | ) | (2,530 | ) | 299,031 | 286,236 | (3,996 | ) | (1,000 | ) | 281,240 | |||||||||||||||||||||||
Operating Income | 313,801 | 1,863 | 2,530 | 318,194 | 285,814 | 3,996 | 1,000 | 290,810 | |||||||||||||||||||||||||||
Operating Margin | 50.8 | % | 51.6 | % | 50.0 | % | 50.8 | % | |||||||||||||||||||||||||||
Total Other Expense | (4,104 | ) | 3,000 | (1,104 | ) | (2,158 | ) | 245 | (1,913 | ) | |||||||||||||||||||||||||
Income Before Income Taxes | 309,697 | 1,863 | 2,530 | 3,000 | 317,090 | 283,656 | 3,996 | 1,000 | 245 | 288,897 | |||||||||||||||||||||||||
Income Tax Provision | 119,983 | 721 | 979 | 1,161 | (1,600 | ) | 121,244 | 107,657 | 1,518 | — | 93 | 109,268 | |||||||||||||||||||||||
Effective Income Tax Rate | 38.7 | % | 38.2 | % | 38.0 | % | 37.8 | % | |||||||||||||||||||||||||||
Net Income | $ | 189,714 | $ | 1,142 | $ | 1,551 | $ | 1,839 | $ | 1,600 | $ | 195,846 | $ | 175,999 | $ | 2,478 | $ | 1,000 | $ | 152 | $ | 179,629 | |||||||||||||
Net Income Allocated to Participating Securities | (1,322 | ) | (8 | ) | (11 | ) | (13 | ) | (11 | ) | (1,365 | ) | (2,136 | ) | (34 | ) | (14 | ) | 2 | (2,182 | ) | ||||||||||||||
Net Income Allocated to Common Stockholders | $ | 188,392 | $ | 1,134 | $ | 1,540 | $ | 1,826 | $ | 1,589 | $ | 194,481 | $ | 173,863 | $ | 2,444 | $ | 986 | $ | 154 | $ | 177,447 | |||||||||||||
Diluted Net Income per Share Allocated to Common Stockholders | $ | 2.21 | $ | 0.01 | $ | 0.02 | $ | 0.02 | $ | 0.02 | $ | 2.28 | $ | 1.99 | $ | 0.03 | $ | 0.01 | $ | — | $ | 2.03 |
1) | In the fourth quarter of 2014, the company recognized severance expense relating to the outsourcing of the majority of its regulatory services. |
2) | In the fourth quarter of 2014 and the first quarter of 2013, the company recorded an impairment for an investment in affiliate. |
3) | In the fourth quarter of 2014, the company recognized changes in assessments of uncertain tax positions related to a prior period. |
4) | In the first quarter of 2014 and in the second and first quarters of 2013, the company accelerated the vesting of certain stock awards. |
5) | In the second quarter of 2013, the company recognized additional expense for the final resolution of an SEC investigation. |
CBOE Holdings, Inc. and Subsidiaries | |||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||||||
Three and Twelve months ended December 31, 2014 and 2013 | |||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating Revenues: | |||||||||||||||||
Transaction fees | $ | 122,731 | $ | 99,026 | $ | 437,764 | $ | 397,218 | |||||||||
Access fees | 14,530 | 15,313 | 59,332 | 61,022 | |||||||||||||
Exchange services and other fees | 9,390 | 9,634 | 38,042 | 37,250 | |||||||||||||
Market data fees | 7,710 | 6,987 | 30,447 | 24,911 | |||||||||||||
Regulatory fees | 8,559 | 7,556 | 37,083 | 36,631 | |||||||||||||
Other revenue | 3,567 | 3,314 | 14,557 | 15,018 | |||||||||||||
Total Operating Revenues | 166,487 | 141,830 | 617,225 | 572,050 | |||||||||||||
Operating Expenses: | |||||||||||||||||
Employee costs | 29,356 | 28,059 | 121,734 | 118,083 | |||||||||||||
Depreciation and amortization | 11,053 | 9,108 | 39,913 | 34,488 | |||||||||||||
Data processing | 4,915 | 4,286 | 19,189 | 17,898 | |||||||||||||
Outside services | 8,539 | 5,867 | 31,976 | 34,473 | |||||||||||||
Royalty fees | 19,266 | 15,043 | 66,110 | 56,576 | |||||||||||||
Trading volume incentives | 874 | 1,227 | 4,080 | 4,355 | |||||||||||||
Travel and promotional expenses | 2,727 | 3,254 | 9,046 | 9,806 | |||||||||||||
Facilities costs | 1,445 | 1,245 | 5,721 | 5,053 | |||||||||||||
Other expenses | 1,350 | 1,142 | 5,655 | 5,504 | |||||||||||||
Total Operating Expenses | 79,525 | 69,231 | 303,424 | 286,236 | |||||||||||||
Operating Income | 86,962 | 72,599 | 313,801 | 285,814 | |||||||||||||
Other Income / (Expense): | |||||||||||||||||
Investment income | 40 | 21 | 113 | 63 | |||||||||||||
Net loss from investment in affiliates | (3,057 | ) | (467 | ) | (4,217 | ) | (2,221 | ) | |||||||||
Total Other Expense | (3,017 | ) | (446 | ) | (4,104 | ) | (2,158 | ) | |||||||||
Income Before Income Taxes | 83,945 | 72,153 | 309,697 | 283,656 | |||||||||||||
Income Tax Provision | 34,603 | 26,043 | 119,983 | 107,657 | |||||||||||||
Net Income | 49,342 | 46,110 | 189,714 | 175,999 | |||||||||||||
Net Income allocated to participating securities | (223 | ) | (467 | ) | (1,322 | ) | (2,136 | ) | |||||||||
Net Income allocated to common stockholders | $ | 49,119 | $ | 45,643 | $ | 188,392 | $ | 173,863 | |||||||||
Net Income per share allocated to common stockholders | |||||||||||||||||
Basic | $ | 0.58 | $ | 0.52 | $ | 2.21 | $ | 1.99 | |||||||||
Diluted | 0.58 | 0.52 | 2.21 | 1.99 | |||||||||||||
Weighted average shares used in computing income per share: | |||||||||||||||||
Basic | 84,315 | 87,061 | 85,406 | 87,331 | |||||||||||||
Diluted | 84,315 | 87,061 | 85,406 | 87,331 |
CBOE Holdings, Inc. and Subsidiaries | |||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
December 31, 2014 and December 31, 2013 | |||||||
(in thousands, except share amounts) | December 31, 2014 | December 31, 2013 | |||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 147,927 | $ | 221,341 | |||
Accounts receivable—net allowances of 2014 - $285 and 2013 - $266 | 58,386 | 49,888 | |||||
Marketing fee receivable | 10,697 | 8,869 | |||||
Income taxes receivable | 21,503 | 22,039 | |||||
Other prepaid expenses | 4,622 | 4,007 | |||||
Other current assets | 972 | 2,717 | |||||
Total Current Assets | 244,107 | 308,861 | |||||
Investments in Affiliates | 12,351 | 14,581 | |||||
Land | 4,914 | 4,914 | |||||
Property and Equipment: | |||||||
Construction in progress | — | 23 | |||||
Building | 68,019 | 65,448 | |||||
Furniture and equipment | 286,723 | 271,437 | |||||
Less accumulated depreciation and amortization | (287,886 | ) | (269,614 | ) | |||
Total Property and Equipment—Net | 66,856 | 67,294 | |||||
Other Assets: | |||||||
Software development work in progress | 7,817 | 7,853 | |||||
Data processing software and other assets (less accumulated amortization of 2014 - $163,486; 2013 - $147,322) | 47,856 | 38,086 | |||||
Total Other Assets—Net | 55,673 | 45,939 | |||||
Total | $ | 383,901 | $ | 441,589 | |||
Liabilities and Stockholders' Equity | |||||||
Current Liabilities: | |||||||
Accounts payable and accrued expenses | $ | 58,566 | $ | 52,958 | |||
Dividend payable | — | 43,831 | |||||
Marketing fee payable | 11,236 | 9,442 | |||||
Deferred revenue | 1,988 | 1,100 | |||||
Post-retirement medical benefits | 101 | 127 | |||||
Total Current Liabilities | 71,891 | 107,458 | |||||
Long-term Liabilities: | |||||||
Post-retirement medical benefits | 1,612 | 2,110 | |||||
Income taxes liability | 42,457 | 29,903 | |||||
Other long-term liabilities | 4,197 | 3,856 | |||||
Deferred income taxes | 13,677 | 13,745 | |||||
Total Long-term Liabilities | 61,943 | 49,614 | |||||
Total Liabilities | 133,834 | 157,072 | |||||
Commitments and Contingencies | |||||||
Stockholders' Equity | |||||||
Preferred stock, $0.01 par value: 20,000,000 shares authorized, no shares issued and outstanding at December 31, 2014 or 2013 | — | — | |||||
Unrestricted common stock, $0.01 par value: 325,000,000 shares authorized; 92,569,189 issued and 84,114,475 outstanding at December 31, 2014; 91,845,492 issued and 86,770,737 outstanding at December 31, 2013 | 926 | 919 | |||||
Additional paid-in-capital | 110,112 | 90,985 | |||||
Retained earnings | 472,005 | 349,290 | |||||
Treasury stock at cost – 8,454,714 shares at December 31, 2014 and 5,074,755 shares at December 31, 2013 | (332,287 | ) | (155,627 | ) | |||
Accumulated other comprehensive loss | (689 | ) | (1,050 | ) | |||
Total Stockholders' Equity | 250,067 | 284,517 | |||||
Total | $ | 383,901 | $ | 441,589 |
CBOE Holdings, Inc. and Subsidiaries | |||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
Twelve Months Ended December 31, 2014 and 2013 | |||||||
Twelve Months Ended December 31, | |||||||
(in thousands) | 2014 | 2013 | |||||
Cash Flows from Operating Activities: | |||||||
Net Income | $ | 189,714 | $ | 175,999 | |||
Adjustments to reconcile net income to | |||||||
net cash flows from operating activities: | |||||||
Depreciation and amortization | 39,913 | 34,488 | |||||
Other amortization | 87 | 114 | |||||
Provision for deferred income taxes | (290 | ) | (7,145 | ) | |||
Stock-based compensation | 15,577 | 20,823 | |||||
Loss on disposition of property | 662 | 3 | |||||
Loss on investment in affiliates | 1,217 | 1,976 | |||||
Impairment of investment in affiliates and other assets | 3,000 | 245 | |||||
Net change in assets and liabilities: | 12,777 | (2,123 | ) | ||||
Net Cash Flows Provided by Operating Activities | 262,657 | 224,380 | |||||
Cash Flows from Investing Activities: | |||||||
Capital and other assets expenditures | (50,154 | ) | (28,673 | ) | |||
Investment in affiliates | (1,987 | ) | (2,532 | ) | |||
Other | 3 | 8 | |||||
Net Cash Flows Used in Investing Activities | (52,138 | ) | (31,197 | ) | |||
Cash Flows from Financing Activities: | |||||||
Payment of quarterly dividends | (66,999 | ) | (58,369 | ) | |||
Payment of special dividend | (43,831 | ) | — | ||||
Excess tax benefit from stock-based compensation | 3,557 | 2,356 | |||||
Purchase of unrestricted stock from employees | (8,332 | ) | (6,136 | ) | |||
Purchase of unrestricted stock under repurchase program | (168,328 | ) | (45,290 | ) | |||
Net Cash Flows Used in Financing Activities | (283,933 | ) | (107,439 | ) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | (73,414 | ) | 85,744 | ||||
Cash and Cash Equivalents at Beginning of Period | $ | 221,341 | $ | 135,597 | |||
Cash and Cash Equivalents at End of Period | $ | 147,927 | $ | 221,341 | |||
Supplemental Disclosure of Cash Flow Information | |||||||
Cash paid for income taxes | $ | 103,976 | $ | 113,741 | |||
Non-cash activities: | |||||||
Change in post-retirement benefit obligation | $ | (583 | ) | $ | 255 | ||
Unpaid liability to acquire equipment and software | $ | 2,769 | $ | 3,048 | |||
Dividends payable | $ | — | $ | 43,831 |
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