COMMON STOCK:

Holders of Class A Common Stock are entitled to one vote per share and holders of Class B Common Stock are entitled to ten votes per share, except for votes relating to “going private” and certain other transactions. Substantially all of the Class B Common Stock is held by David D. Smith, Frederick G. Smith, J. Duncan Smith and Robert E. Smith who entered into a stockholders’ agreement pursuant to which they have agreed to vote for each other as candidates for election to our board of directors until December 31, 2025. The Class A Common Stock and the Class B Common Stock vote together as a single class, except as otherwise may be required by Maryland law, on all matters presented for a vote. Holders of Class B Common Stock may at any time convert their shares into the same number of shares of Class A Common Stock. During 2016, 257,673 Class B Common Stock shares were converted into Class A Common Stock shares. During 2015, no Class B Common Stock shares were converted into Class A Common Stock shares.

Our Bank Credit Agreement and some of our subordinated debt instruments have restrictions on our ability to pay dividends. Under our Bank Credit Agreement, in certain circumstances, we may make unrestricted cash payments as long as our first lien indebtedness ratio does not exceed 3.75 to 1.00. Once our first lien indebtedness ratio exceeds 3.75 to 1.00, we have the ability to make up to $200.0 million in unrestricted annual cash payments including but not limited to dividends, of which $50.0 million may carry over to the next year, as long as we are in compliance with our first lien indebtedness ratio under the Bank Credit Agreement of 4.00 to 1.00. In addition, we have an aggregate basket of up to $250.0 million, as long as we are in compliance with our first lien indebtedness ratio of 4.00 to 1.00, and an aggregate basket of $50.0 million, as long as no Event of Default has occurred. Under the indentures governing the 6.125% Notes, 5.875% Notes, 5.375% Notes, 5.125% Notes, and 5.625% Notes, we are restricted from paying dividends on our common stock unless certain specified conditions are satisfied, including that:


•	no event of default then exists under each indenture or certain other specified agreements relating to our indebtedness; and


•	after taking into account the dividends payment, we are within certain restricted payment requirements contained in each indenture.

In January 2017, we amended certain terms and extended the maturity date of certain loans under our Bank Credit Agreement. See Note. 6 Notes Payable and Commercial Bank Financing for further discussion.

During 2015, our Board of Directors declared a quarterly dividend of $0.165 per share in the months of February, May, August and November which were paid in March, June, September and December. Total dividend payments for the year ended December 31, 2015 were $0.66 per share. During 2016, our Board of Directors declared a quarterly dividend of $0.165 per share in the month of February which was paid in March. In May, August, and November our Board of Directors declared a quarterly dividend of $0.18 per share. Total dividend payments for the year ended December 31, 2016 were $0.71 per share. In February 2017, our Board of Directors declared a quarterly dividend of $0.18 per share. Future dividends on our common shares, if any, will be at the discretion of our Board of Directors and will depend on several factors including our results of operations, cash requirements and surplus, financial condition, covenant restrictions and other factors that the Board of Directors may deem relevant. The Class A Common Stock and Class B Common Stock holders have the same rights related to dividends.

On March 20, 2014, the Board of Directors approved a $150.0 million share repurchase authorization. On September 6, 2016; the Board of Directors approved an additional $150.0 million share repurchase authorization. There is no expiration date and currently, management has no plans to terminate this program. During 2016, we repurchased approximately 4.9 million shares of Class A Common Stock for approximately $136.4 million on the open market including transaction costs. As of December 31, 2016, the total remaining authorization was $119.1 million.