CW 2020 Annual Report

The A/R Securitization terminates on August 20, 2022, unless extended or an earlier termination event occurs. See Note 18: Accounts Receivable Securitization of the Notes to the audited Consolidated Financial Statements for further information. Historical Cash Flows

Cash Flow Summary

Year Ended December 31, 2020 Year Ended December 31, 2019

Net cash provided by (used in) operating activities

$

(38.2) $

269.3

Net cash used in investing activities

(257.8)

(274.9)

Net cash provided by (used in) financing activities

571.9

(89.6)

Effects of exchange rate fluctuations on cash, cash equivalents and restricted cash

15.9

2.1

$

291.8 $

(93.1)

Total change in cash, cash equivalents and restricted cash

Operating Activities We used $38.2 million of cash for operating activities for the year ended December 31, 2020, which was principally driven by a net loss of $220.5 million due to the impact of the COVID-19 pandemic on demand for transaction services in the Company’s brokerage service lines as well as costs associated with the Company’s strategic realignment of the business, principally severance related costs. Additionally, net working capital for the year was a use of cash of $250.3 million as cash inflows from lower account receivables and contract assets were more than offset by cash outflows attributable to lower accounts payable, accrued commissions and accrued annual bonus for non-fee earners. Investing Activities We used $257.8 million in cash for investing activities for the year ended December 31, 2020, which reflects spending on capital expenditures of $41.0 million and acquisitions of $108.7 million as well as the repayment of $85.0 million under the Company’s A/R Securitization arrangement. Financing Activities Financing activities provided $571.9 million in cash for the year ended December 31, 2020, primarily from net proceeds from the issuance of the 2020 Notes. Summary of Contractual Obligations The following is a summary of our various contractual obligations and other commitments as of December 31, 2020 (in millions):

Contractual Obligations

Total

Less than 1 year

1-3 years

3-5 years

More than 5 years

Debt obligations

$

3,299.5 $

29.7 $

53.5 $

2,566.3 $

650.0

Finance lease obligations Operating lease obligations

20.0

10.3

8.9

0.8

—

610.9

141.0

217.1

144.2

108.6

Defined benefit pension obligations

88.1

8.0

16.9

17.8

45.4

$

4,018.5 $

189.0 $

296.4 $

2,729.1 $

804.0

Total contractual obligations

Debt obligations. Represents the gross outstanding long-term debt balance payable at maturity, excluding unamortized discount and issuance costs. Because the majority of our debt bears interest at variable rates, the precise amount of annual interest payments cannot be determined and such amounts are therefore excluded from the table above. Using rates at December 31, 2020, expected annual interest payments would be approximately $97.6 million until our 2020 Notes mature in 2028. See Note 9: Long-term Debt and Other Borrowings of the Notes to the audited Consolidated Financial Statements for further discussion.

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