8-K

WILLIAMS-SONOMA, INC.

Date: March 14, 2018

/s/ Julie P. Whalen

Julie P. Whalen

Chief Financial Officer

Quarterly dividend increase of 10%; stock repurchase authorization increase to $500 million

San Francisco, CA, March 14, 2018 – Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the fourth fiscal quarter (“Q4 17”) and fiscal year 2017 (“FY 17”) ended January 28, 2018 versus the fourth fiscal quarter (“Q4 16”) and fiscal year 2016 (“FY 16”) ended January 29, 2017.

Laura Alber, President and Chief Executive Officer, commented, “We ended the year with a strong fourth quarter. Our product and operational initiatives drove broad-based comp growth in all our brands and a substantial acceleration in e-commerce and retail revenue growth from last year. For the full year, we made significant progress against our strategic priorities to strengthen our competitive advantages and drive accelerated growth. With revenue and EPS growth of 4.1% and 5.2%, respectively, we ended the year again demonstrating our ability to consistently deliver top line and bottom line growth with robust cash flow generation.”

Alber continued, “In 2018, we will continue to strategically invest in digital advertising, technology and our customer experience, while driving efficiencies and cost savings throughout our business. Looking ahead, we are confident in our strategies and proven track record to further extend our leadership in the home furnishings and housewares industry.”

Net revenues increased 6.2% to $1.680 billion in Q4 17 from $1.582 billion in Q4 16.

Comparable brand revenue in Q4 17 increased 5.4% compared to a decrease of (0.9%) in Q4 16 as shown in the table below:

E-commerce net revenues in Q4 17 increased 8.4% to $877 million from $809 million in Q4 16. E-commerce net revenues generated 52.2% of total company net revenues in Q4 17 and 51.1% of total company net revenues in Q4 16.

Retail net revenues in Q4 17 increased 3.9% to $803 million from $773 million in Q4 16.

Operating margin in Q4 17 was 11.8% compared to 13.6% in Q4 16. Excluding the impact of certain discrete items detailed in Exhibit 1, non-GAAP operating margin was 12.4% in Q4 17 versus 13.6% in Q4 16. See Exhibit 1.

The effective income tax rate in Q4 17 was 51.8% versus 33.0% in Q4 16. Excluding certain discrete items, the non-GAAP effective income tax rate was 31.6% in Q4 17 versus 36.5% in Q4 16. See Exhibit 1.

EPS in Q4 17 was $1.13 versus $1.63 in Q4 16. Excluding certain discrete items, non-GAAP EPS was $1.68 in Q4 17 versus $1.55 in Q4 16. See Exhibit 1.

Net revenues increased 4.1% to $5.292 billion in FY 17 from $5.084 billion in FY 16.

Comparable brand revenue in FY 17 increased 3.2% on top of 0.7% in FY 16 as shown in the table below:


Fiscal Year Net Revenues and Comparable Brand Revenue Growth by Concept*
	Net Revenues (Millions)		Comparable Brand Revenue Growth (Decline)
	FY 17	FY 16	FY 17	FY 16
Pottery Barn	$2,066	$2,024	1.0%	(3.5%)
West Elm	1,114	972	10.2%	12.8%
Williams Sonoma	1,022	1,002	3.2%	1.3%
Pottery Barn Kids	626	635	(1.8%)	(1.4%)
PBteen	235	238	(1.4%)	(6.2%)
Other	229	213	N/A	N/A
Total	$5,292	$5,084	3.2%	0.7%
* See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue.

E-commerce net revenues in FY 17 increased 5.5% to $2.778 billion from $2.634 billion in FY 16. E-commerce net revenues generated 52.5% of total company net revenues in FY 17 and 51.8% of total company net revenues in FY 16.

Retail net revenues in FY 17 increased 2.6% to $2.514 billion from $2.450 billion in FY 16.

Operating margin in FY 17 was 8.6% compared to 9.3% in FY 16. Excluding certain discrete items, non-GAAP operating margin was 8.9% in FY 17 versus 9.6% in FY 16. See Exhibit 1.

The effective income tax rate in FY 17 was 42.6% versus 35.3% in FY 16. Excluding certain discrete items, the non-GAAP effective income tax rate in FY 17 was 33.5% versus 36.9% in FY 16. See Exhibit 1.

EPS in FY 17 was $3.02 versus $3.41 in FY 16. Excluding certain discrete items, non-GAAP EPS was $3.61 in FY 17 versus $3.43 in FY 16. See Exhibit 1.

Merchandise inventories at the end of FY 17 increased 8.6% to $1.062 billion from $978 million at the end of FY 16.

On December 22, 2017, the Tax Act was enacted into law, significantly changing U.S. tax law. Among other changes, the Tax Act reduced the U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018, and required a one-time transition tax on previously unrepatriated earnings of foreign subsidiaries. As a result, the company recorded a provisional income tax expense of $41.5 million during Q4 FY 17. The provisional amount includes $13 million related to the transition tax on deemed repatriated foreign earnings and $28 million due to the re-measurement of the company’s deferred tax balances at the lower tax rate. The company continues to analyze the Tax Act and the provisional amounts will be finalized in FY 18.

During FY 17, we repurchased 4.1 million shares of common stock at an average cost of $48.43 per share and a total cost of approximately $196 million. As of January 28, 2018, there was approximately $214 million remaining under our current stock repurchase program. As announced in a separate release today, our Board of Directors authorized a $0.04, or 10%, increase in our quarterly cash dividend to $0.43 per share, and increased the amount available for repurchases under our existing stock repurchase program to $500 million.


1^st Quarter 2018 Financial Guidance*
Total Net Revenues (millions)		$1,135 – $1,170
Comparable Brand Revenue Growth		2% – 5%
Non-GAAP Diluted EPS		$0.55 – $0.60


Fiscal Year 2018 Financial Guidance*
Total Net Revenues (millions)		$5,475 – $5,635
Comparable Brand Revenue Growth		2% – 5%
Non-GAAP Operating Margin		8.2% – 9.0%
Non-GAAP Diluted EPS		$4.12 – $4.22
Non-GAAP Income Tax Rate		24.0% – 26.0%
Capital Spending (millions)		$200 – $220
Depreciation and Amortization (millions)		$185 – $195
* We have not provided a reconciliation of non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential variability of discrete items.


Store Opening and Closing Guidance by Retail Concept**
	FY 2017 ACTUAL		FY 2018 GUIDANCE
	Total			New		Close			End
Williams Sonoma		228			5		(15	)	218
Pottery Barn		203			4		(3	)	204
West Elm		106			9		(3	)	112
Pottery Barn Kids		86			—		(9	)	77
Rejuvenation		8			2		—		10
Total		631			20		(30	)	621
** Included in the FY 17 store count are 19 stores in Australia and two stores in the UK. FY 18 guidance includes one additional UK store.

Williams-Sonoma, Inc. will host a live conference call today, March 14, 2018, at 2:00 P.M. (PT). The call, hosted by Laura Alber, President and Chief Executive Officer, will be open to the general public via live webcast and can be accessed at http://ir.williams-sonomainc.com/events. A replay of the webcast will be available at http://ir.williams-sonomainc.com/events.

This press release includes non-GAAP financial measures. Exhibit 1 provides reconciliations of these non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this press release and our financial statements and other publicly filed reports. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or are proven incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include statements relating to: our ability to continue to improve performance and increase our competitive advantage; our focus on operational excellence; our abilty to improve customers’ experience; our optimism about the future; our ability to drive long-term profitable growth; our future financial guidance, including Q1 18 and FY 2018 guidance; our stock repurchase program; and our proposed store openings and closures.

The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: accounting adjustments as we close our books for Q4 17 and as audited year-end financial statements are prepared; continuing changes in general economic conditions, and the impact on consumer confidence and consumer spending; new interpretations of or changes to current accounting rules; our ability to anticipate consumer preferences and buying trends; dependence on timely introduction and customer acceptance of our merchandise; changes in consumer spending based on weather, political, competitive and other conditions beyond our control; delays in store openings; competition from companies with concepts or products similar to ours; timely and effective sourcing of merchandise from our foreign and domestic vendors and delivery of merchandise through our supply chain to our stores and customers; effective inventory management; our ability to manage customer returns; successful catalog management, including timing, sizing and merchandising; uncertainties in e-marketing, infrastructure and regulation; multi-channel and multi-brand complexities; our ability to introduce new brands and brand extensions; challenges associated with our increasing global presence; dependence on external funding sources for operating capital; disruptions in the financial markets; our ability to control employment, occupancy and other operating costs; our ability to improve our systems and processes; changes to our information technology infrastructure; general political, economic and market conditions and events, including war, conflict or acts of terrorism; and other risks and uncertainties described more fully in our public announcements, reports to stockholders and other documents filed with or furnished to the SEC, including our Annual Report on Form 10-K for the fiscal year ended January 29, 2017 and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

Williams-Sonoma, Inc. is a specialty retailer of high-quality products for the home. These products, representing eight distinct merchandise strategies – Williams Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams Sonoma Home, Rejuvenation, and Mark and Graham – are marketed through e-commerce websites, direct mail catalogs and retail stores. Williams-Sonoma, Inc. currently operates in the U.S., Canada, Australia and the United Kingdom, offers international shipping to customers worldwide, and has unaffiliated franchisees that operate stores in the Middle East, the Philippines and South Korea, and stores and e-commerce websites in Mexico. In Q4 2017, Williams-Sonoma, Inc. acquired Outward, Inc., a leading 3-D imaging and augmented reality platform for the home furnishings and décor industry.


Retail Store Data (unaudited)
	Oct. 29, 2017		Openings¹		Closings			Jan. 28, 2018		Jan. 29, 2017
Williams Sonoma		233		2		(7	)		228		234
Pottery Barn		202		2		(1	)		203		201
West Elm		105		3		(2	)		106		98
Pottery Barn Kids		88		—		(2	)		86		89
Rejuvenation		8		—		—			8		7
Total		636		7		(12	)		631		629

Q4 17 openings include two Williams Sonoma, two Pottery Barn and one West Elm stores in Puerto Rico and Florida that were temporarily closed due to hurricanes in these areas.

4^th Quarter and Fiscal Year GAAP to Non-GAAP Reconciliation*

(Dollars in thousands, except per share data)


Thirteen Weeks Ended January 28, 2018
	GAAP Basis (as reported)			Acquisition of Outward¹			Severance- Related Expenses²			Tax Reform³			Adoption of new accounting rules ⁴			Non-GAAP Basis
Selling, general and administrative expenses	$	447,233		$	(5,859	)	$	(2,907	)		—			—		$	438,467
% of Revenues		26.6	%														26.1	%
Operating income		198,940			6,209			2,907			—			—			208,056
% of Revenues		11.8	%														12.4	%
Earnings before income taxes		198,542			6,209			2,907			—			—			207,658
Income taxes		102,782			1,842			862		$	(41,531	)	$	1,686			65,641
Tax rate		51.8	%														31.6	%
Net earnings	$	95,760		$	4,367		$	2,045		$	41,531		$	(1,686	)	$	142,017
Diluted EPS	$	1.13		$	0.05		$	0.02		$	0.49		$	(0.02	)	$	1.68



Thirteen Weeks Ended January 29, 2017
	GAAP Basis (as reported)			One-time Favorable Tax Adjustment⁵			Non-GAAP Basis
Earnings before income taxes	$	215,718			—		$	215,718
Income taxes		71,091		$	7,681			78,772
Tax rate		33.0	%					36.5	%
Net earnings	$	144,627		$	(7,681	)	$	136,946
Diluted EPS	$	1.63		$	(0.08	)	$	1.55



Fifty-Two Weeks Ended January 28, 2018
	GAAP Basis (as reported)			Acquisition of Outward¹			Severance- Related Expenses²			Tax Reform³			Adoption of new accounting rules ⁴			Non-GAAP Basis
Selling, general and administrative expenses	$	1,477,900		$	(5,859	)	$	(8,612	)		—			—		$	1,463,429
% of Revenues		27.9	%														27.7	%
Operating income		453,811			6,209			8,612			—			—			468,632
% of Revenues		8.6	%														8.9	%
Earnings before income taxes		452,439			6,209			8,612			—			—			467,260
Income taxes		192,894			1,842			2,833		$	(41,531	)	$	257			156,295
Tax rate		42.6	%														33.5	%
Net earnings	$	259,545		$	4,367		$	5,779		$	41,531		$	(257	)	$	310,965
Diluted EPS	$	3.02		$	0.05		$	0.07		$	0.48		$	0.00		$	3.61



Fifty-Two Weeks Ended January 29, 2017
	GAAP Basis (as reported)			Severance- Related Expenses²			One-time Favorable Tax Adjustment⁵			Non-GAAP Basis
Selling, general and administrative expenses	$	1,410,711		$	(14,406	)		—		$	1,396,305
% of Revenues		27.7	%								27.5	%
Operating income		472,599			14,406			—			487,005
% of Revenues		9.3	%								9.6	%
Earnings before income taxes		471,911			14,406			—			486,317
Income taxes		166,524			5,317		$	7,681			179,522
Tax rate		35.3	%								36.9	%
Net earnings	$	305,387		$	9,089		$	(7,681	)	$	306,795
Diluted EPS	$	3.41		$	0.10		$	(0.08	)	$	3.43

* Per share amounts may not sum across due to rounding to the nearest cent per diluted share.

Reconciliation of GAAP to Non-GAAP Operating Margin By Segment**


	E-commerce				Retail				Unallocated				Total
In thousands	Q4 17		Q4 16		Q4 17		Q4 16		Q4 17		Q4 16		Q4 17		Q4 16
Net revenues		$877,109		$808,942		$802,801		$772,639		—		—		$1,679,910		$1,581,581
GAAP Operating income (expense)		189,483		191,845		125,498		121,507		$(116,041)		$(97,533)		198,940		215,819
GAAP Operating margin		21.6%		23.7%		15.6%		15.7%		(6.9%)		(6.2%)		11.8%		13.6%

Acquisition of Outward, Inc.¹		3,309		—		—		—		2,900		—		6,209		—
Severance-related expenses²		—		—		—		—		2,907		—		2,907		—
Non-GAAP Operating income (expense)		$192,792		$191,845		$125,498		$121,507		$(110,234)		$(97,533)		$208,056		$215,819
Non-GAAP Operating margin		22.0%		23.7%		15.6%		15.7%		(6.6%)		(6.2%)		12.4%		13.6%


	E-commerce				Retail				Unallocated				Total
In thousands	FY17		FY 16		FY17		FY 16		FY17		FY 16		FY17		FY 16
Net revenues		$2,778,457		$2,633,602		$2,513,902		$2,450,210		—		—		$5,292,359		$5,083,812
GAAP Operating income (expense)		599,491		606,286		224,608		231,929		$(370,288)		$(365,616)		453,811		472,599
GAAP Operating margin		21.6%		23.0%		8.9%		9.5%		(7.0%)		(7.2%)		8.6%		9.3%

Acquisition of Outward, Inc.¹		3,309		—		—		—		2,900		—		6,209		—
Severance-related expenses²		—		—		—		—		8,612		14,406		8,612		14,406
Non-GAAP Operating income (expense)		$602,800		$606,286		$224,608		$231,929		$(358,776)		$(351,210)		$468,632		$487,005
Non-GAAP Operating margin		21.7%		23.0%		8.9%		9.5%		(6.8%)		(6.9%)		8.9%		9.6%

See the Company’s 10-K and 10-Q filings for additional information on segment reporting and the definition of Operating Income (Expense) and Operating Margin.

SEC Regulation G – Non-GAAP Information – These tables include non-GAAP SG&A, operating income, operating margin, earnings before income taxes, income taxes, effective tax rate, net earnings and diluted EPS. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of our quarterly actual results on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.

We believe ROIC is a useful financial measure for investors in evaluating the efficient and effective use of capital, and is an important component of long-term shareholder return. We define ROIC as non-GAAP net operating profit after tax (NOPAT), divided by our average invested capital. NOPAT is defined as non-GAAP operating income, plus rent expense, less estimated taxes at the company’s effective tax rate. Average invested capital is defined as the two-year average of total assets less current liabilities, plus annual rental expense multiplied by 6, less cash in excess of $200 million.

ROIC is not a measure of financial performance under GAAP, and should be considered in addition to, and not as a substitute for other financial measures prepared in accordance with GAAP. Our method of determining ROIC may differ from other companies’ methods and therefore may not be comparable.


(d)		List of Exhibits:

99.1		Press Release dated March 14, 2018 titled Williams-Sonoma, Inc. announces fourth quarter and fiscal year 2017 results; Q4 net revenue growth of 6.2%, with comparable brand revenue growth of 5.4%; Q4 GAAP diluted EPS of $1.13; Q4 Non-GAAP diluted EPS of $1.68; Quarterly dividend increase of 10%; stock repurchase authorization increase to $500 million

99.2		Press Release dated March 14, 2018 titled Williams-Sonoma, Inc. announces a 10% dividend increase and a stock repurchase authorization increase to $500 million


						CONTACT:
						Julie P. Whalen
						EVP, Chief Financial Officer
						(415) 616-8524

						Elise Wang
						Vice President, Investor Relations
						(415) 616-8571


	Thirteen Weeks Ended										Fifty-Two Weeks Ended
	Jan. 28, 2018					Jan. 29, 2017					Jan. 28, 2018					Jan. 29, 2017
In thousands, except per share amounts	$		% of Revenues			$		% of Revenues			$		% of Revenues			$		% of Revenues
E-commerce net revenues	$	877,109		52.2	%	$	808,942		51.1	%	$	2,778,457		52.5	%	$	2,633,602		51.8	%
Retail net revenues		802,801		47.8			772,639		48.9			2,513,902		47.5			2,450,210		48.2

Net revenues		1,679,910		100.0			1,581,581		100.0			5,292,359		100.0			5,083,812		100.0
Cost of goods sold		1,033,737		61.5			959,550		60.7			3,360,648		63.5			3,200,502		63.0

Gross profit		646,173		38.5			622,031		39.3			1,931,711		36.5			1,883,310		37.0
Selling, general and administrative expenses		447,233		26.6			406,212		25.7			1,477,900		27.9			1,410,711		27.7

Operating income		198,940		11.8			215,819		13.6			453,811		8.6			472,599		9.3
Interest expense, net		398		—			101		—			1,372		—			688		—

Earnings before income taxes		198,542		11.8			215,718		13.6			452,439		8.5			471,911		9.3
Income taxes		102,782		6.1			71,091		4.5			192,894		3.6			166,524		3.3

Net earnings	$	95,760		5.7	%	$	144,627		9.1	%	$	259,545		4.9	%	$	305,387		6.0	%


Earnings per share (EPS):
Basic	$	1.14				$	1.65				$	3.03				$	3.45
Diluted	$	1.13				$	1.63				$	3.02				$	3.41
Shares used in calculation of EPS:
Basic		84,037					87,669					85,592					88,594
Diluted		84,728					88,633					86,080					89,462


In thousands, except per share amounts	Jan. 28, 2018			Jan. 29, 2017
Assets
Current assets
Cash and cash equivalents	$	390,136		$	213,713
Accounts receivable, net		90,119			88,803
Merchandise inventories, net		1,061,593			977,505
Prepaid catalog expenses		24,028			23,625
Prepaid expenses		58,693			52,882
Other assets		11,876			10,652

Total current assets		1,636,445			1,367,180

Property and equipment, net		932,283			923,283
Deferred income taxes, net		67,306			135,238
Other assets, net		149,715			51,178

Total assets	$	2,785,749		$	2,476,879

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	459,378		$	453,710
Accrued salaries, benefits and other liabilities		135,884			130,187
Customer deposits		292,460			294,276
Income taxes payable		56,783			23,245
Other liabilities		63,318			59,838

Total current liabilities		1,007,823			961,256

Deferred rent and lease incentives		202,134			196,188
Long-term debt		299,422			—
Other long-term obligations		72,804			71,215

Total liabilities		1,582,183			1,228,659

Stockholders’ equity
Preferred stock: $.01 par value; 7,500 shares authorized; none issued		—			—
Common stock: $.01 par value; 253,125 shares authorized; 83,726 and 87,325 shares issued and outstanding at January 28, 2018 and January 29, 2017, respectively		837			873
Additional paid-in capital		562,814			556,928
Retained earnings		647,422			701,702
Accumulated other comprehensive loss		(6,782	)		(9,903	)
Treasury stock, at cost		(725	)		(1,380	)

Total stockholders’ equity		1,203,566			1,248,220

Total liabilities and stockholders’ equity	$	2,785,749		$	2,476,879


4^th Quarter Comparable Brand Revenue Growth (Decline) by Concept*
	Q4 17		Q4 16
Pottery Barn		4.1%	(4.1%)
West Elm		12.3%	6.5%
Williams Sonoma		4.3%	1.4%
Pottery Barn Kids		0.9%	(4.9%)
PBteen		2.6%	(8.1%)
Total		5.4%	(0.9%)
* See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue.


In thousands	Fiscal 2017			Fiscal 2016
Cash flows from operating activities:
Net earnings	$	259,545		$	305,387
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization		183,077			173,195
Loss on disposal/impairment of assets		1,889			3,806
Amortization of deferred lease incentives		(25,372	)		(25,212	)
Deferred income taxes		63,381			7,114
Tax benefit related to stock-based awards		—			3,230
Excess tax benefit related to stock-based awards		—			(4,894	)
Stock-based compensation expense		42,988			51,116
Other		(135	)		(423	)
Changes in:
Accounts receivable		149			(9,794	)
Merchandise inventories		(80,235	)		4,493
Prepaid catalog expenses		(403	)		5,294
Prepaid expenses and other assets		(16,092	)		(6,367	)
Accounts payable		2,382			3,169
Accrued salaries, benefits and other liabilities		9,157			25,876
Customer deposits		(2,394	)		(3,037	)
Deferred rent and lease incentives		28,226			35,559
Income taxes payable		33,541			(43,803	)

Net cash provided by operating activities		499,704			524,709

Cash flows from investing activities:
Purchases of property and equipment		(189,712	)		(197,414	)
Acquisition of Outward, Inc., net of cash received		(80,528	)		—
Other		480			439

Net cash used in investing activities		(269,760	)		(196,975	)

Cash flows from financing activities:
Proceeds from issuance of long-term debt		300,000			—
Repurchases of common stock		(196,179	)		(151,272	)
Borrowings under revolving line of credit		170,000			125,000
Repayments of borrowings under revolving line of credit		(170,000	)		(125,000	)
Payment of dividends		(135,010	)		(133,539	)
Tax withholdings related to stock-based awards		(18,130	)		(27,062	)
Excess tax benefit related to stock-based awards		—			4,894
Proceeds related to stock-based awards		—			1,532
Debt issuance costs		(1,191	)		(359	)
Other		(1,197	)		—

Net cash used in financing activities		(51,707	)		(305,806	)

Effect of exchange rates on cash and cash equivalents		(1,814	)		(1,862	)
Net increase in cash and cash equivalents		176,423			20,066
Cash and cash equivalents at beginning of year		213,713			193,647

Cash and cash equivalents at end of year	$	390,136		$	213,713