Greenlight Company Presentation

Where is the Cash? Earn Global, Spend Local o Domestic cash - Funds operations -Pays cash distributions o Overseas cash - Accumulates faster - Considered "too expensive" for dividends or buybacks - Risk of premature repatriation - Stranded cash Greenlight Capital, Inc. SPACE S Occasionally, a U.S. company finds a foreign acquisition where it can deploy some offshore cash, but in general overseas earnings remain overseas. In contrast, companies have complete access to their domestic cash. So this generally gets used, while the foreign cash accumulates. In 2004 the U.S. had a one-time tax holiday where companies were able to repatriate their trapped cash by paying approximately 5% in taxes. And many did. Many companies figure that if it happened before, it might happen again. Now they are waiting around for the next tax holiday. 'Waiting around' isn't exactly right. We mean they are lobbying Congress aggressively. Maybe they are upset that the tax rate on repatriation seems too high, or maybe they think that by building up obscene amounts of cash, Washington will accommodate them. The anticipation of a tax repatriation holiday allows companies to tell their shareholders that bringing the cash back too soon would be a 'waste of shareholder money.' In reality, no CFO wants to risk bringing cash back to the U.S. this year, only to find out that there will be a tax holiday next year. 9

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