SCHL
#Okay.
So, <UNK>, as far as our ongoing cash flow, the transaction-related fees are $20 million.
That's a one-time item.
And the $10 million of EdTech cash flow contribution, well, that will be out of our numbers.
So I think you can expect going forward that our cash flow would be very similar to our historical levels, but $10 million less for Ed Tech.
Also, I should say that our definition of free cash flow in 2016 does not include the $186 million tax payment related to the EdTech sale.
So that is not included, which would drive down our cash balance at year end.
As far as a normal CapEx, I think the range that we are guiding to today is more normal.
If you look at our historical levels, that would be the range we are normally in.
Last two years we stopped CapEx, particularly in the technology area as we assessed what our corporate-level needs were.
And most of what we spent last year in technology was expense as opposed to capitalized because we were in the design phase.
Now we will start capitalizing as we go live with certain systems.
So, we do expect to grow ex currency about 4% next year.
And this year we grew ex currency about $7.5 million on that $400 million base.
So, in real terms the market currencies are ---+ the local markets are growing.
We're seeing strong growth in Asia, continue to see double-digit growth, and then single growth in Australia and the UK.
Canada had some headwinds this year, so they didn't see the same level of growth.
Well, we had great success this year with our Minecraft books and series.
And so we have to replace that next year.
And so, even though we have a very strong outlook in pipeline of new products coming out in 2016, we need to replace the revenues, similar to what we did this year with Minecraft replacing some of The Hunger Game revenues.
I think right now the way that we are driving our technology spend, we leave it all in overhead and we're not allocating it out to our divisions.
So, in absolute terms, overhead only went up for technology by $3 million.
So, overhead ---+ I'm sorry ---+ the whole Company's technology spend only went up by $3 million.
Within our overhead, it looks like a $27 million increase.
It is offset, primarily in the children's books, with a decrease in spend.
So, next year you'll see flat overhead year over year.
But, remember, that's about $25 million, $27 million that sits in overhead that used to sit in the divisions.
So, the way that the restricted cash works is most of it is tied to our service agreement and meeting certain standards of service.
And the money begins to be released in August.
It's about $2.4 million will be released in August.
And our expectation is that that escrow will be released during the year.
Right now we are meeting all service-level requirements and we feel we're in a good place with our service agreement.
I think <UNK> <UNK> will answer that question, <UNK>.
Thank you.
Well, we've actually started a pretty ambitious program in anticipation of the movie.
As you say, it will come out in the fall.
So we already have a big promotion going on in Barnes & Noble, which is off to a great, great start.
We have a lot of enthusiasm across the board.
In addition to the Backlist, which we've refreshed a lot of the books, we have five tie-in books coming out a few weeks in advance of the movie.
And we're also leveraging that across all of our channels, as well as globally.
So we have a lot of enthusiasm, a lot of momentum in the market leading up to the movie.
Yes, that's some of the excitement we have coming into the fall.
Yes.
Well, I think the Board wanted to respond to the fact that we do have increased cash and we do want to return cash to shareholders.
However, we're going to do this in a measured fashion.
And so we chose to do opportunistic stock buybacks as opposed to a plan.
But we'll keep looking at this, <UNK>, and knowing that our shareholders are certainly interested in the whole question.
Well, having just completed the EdTech transaction, <UNK>, and with the cash, which you say is a drag ---+ we're not necessarily in a hurry to bring any more drags into our picture.
But as we discussed in our last conference call, we've not entered into any agreement on the real estate here in SoHo.
But the commercial real estate market, as you suggest, remains strong for both retail and office space and interest remains high in our real estate, for sure.
The purchase of our headquarters location last year was very timely and well executed we think, and we believe our real estate is going to help the Company and our shareholders substantially over the long term.
But we're measuring carefully what we want to do with it, and we'll obviously continue to keep you informed when and if we have a plan.
Sure.
Well, I should remind you that since 2006 we have returned, like, $560 million to the shareholders through a combination of buybacks and dividends.
So, we haven't been bashful about this over time.
I think the Board really didn't stop to consider our dividend policy at this point, <UNK>, for this Board Meeting.
I think we're looking to talk about this in our September meeting, figure out for our next year of operation what our dividend policy should be, short and longer term.
So the lack of an increase in the dividend is not a statement on our long-term attitude toward dividends.
At the same time, we are ---+ oh, sorry, <UNK>.
This is in response to your question, not to <UNK>.
In response to the buybacks, I think, again, we will come back to you with a program on stock buybacks that will be clearer over time.
Thanks very much.
We've had a complicated fiscal year to explain.
I hope we've done it to your satisfaction.
We're focused on our core business operations going forward.
We're excited about the changes in our marketplace that are giving us great optimism about our near-term and long-term future.
We're focused on our core children's book operation, are expanding education operations, and we are building in our international for the long term.
We thank you for your support and interest and we look forward to talking to you again in September.
