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39
Cash Flows from Financing Activities:
Years Ended
December 31
(Millions)
2013
2012
2011
Change in short-term debt — net
$
(2)
$
(36) $
11
Repayment of debt (maturities greater than 90 days)
(859)
(612)
(1,429)
Proceeds from debt (maturities greater than 90 days)
824
1,370 1,111
Total cash change in debt
$
(37)
$
722
$
(307)
Purchases of treasury stock
(5,212)
(2,204) (2,701)
Proceeds from issuances of treasury stock pursuant to stock option
and benefit plans
1,609
1,012 902
Dividends paid to stockholders
(1,730)
(1,635) (1,555)
Excess tax benefits from stock-based compensation
92
62 53
Other — net
32
(15)
(67)
Net cash used in financing activities
$
(5,246)
$
(2,058)
$
(3,675)
Total debt was $6.0 billion at both December 31, 2013 and December 31, 2012, compared to $5.2 billion at year-end
2011. Total debt was 25 percent of total capital (total capital is defined as debt plus equity) at year-end 2013, 2012 and
2011. In 2013, repayment of debt related to the August 2013 repayment of $850 million (principal amount) of medium-
term notes. Proceeds from debt in 2013 related to the November 2013 issuance of an eight-year Eurobond for an amount
of 600 million Euros (approximately $815 million carrying value at December 31, 2013). In 2012, repayment of debt
included $500 million (principal amount) of medium-term notes and repayment of debt acquired, primarily Ceradyne, Inc.
Proceeds from debt in 2012 related to the June 2012 issuance of $650 million aggregate principal amount of five-year
fixed rate medium-term notes due 2017 and $600 million aggregate principal amount of ten-year fixed rate medium-term
notes due 2022, in addition to 66 million GBP (approximately $106 million) in UK borrowings (refer to Note 9 for further
detail on these items). In 2011, major items in repayment of debt included redemption of $800 million (principal amount) of
medium-term notes in November 2011, redemption of Convertible Notes, repayment of debt related to the 11.6 billion
Japanese Yen note (installments paid in March and September 2011), repayment of the remainder of the Canadian Dollar
loan, and repayment of a portion of debt that was acquired, primarily related to the Winterthur acquisition. In 2011,
proceeds from debt (maturities greater than 90 days) primarily related to the issuance of a $1 billion medium term note
and an amendment to a Canada loan agreement which increased the principal amount of the loan by 100.5 million
Canadian Dollars.
Repurchases of common stock are made to support the Company’s stock-based employee compensation plans and for
other corporate purposes. In February 2014, 3M’s Board of Directors authorized the repurchase of up to $12 billion of
3M’s outstanding common stock, which replaced the Company’s February 2013 repurchase program. This authorization
has no pre-established end date. In 2013, the Company purchased $5.212 billion of stock, up significantly from $2.204
billion in 2012 and $2.701 billion in 2011. The Company expects full-year 2014 gross share repurchases will be in the
range of $3.0 billion to $5.0 billion. 3M is increasing share purchases, which is enabled by its continued business growth
and consistently strong cash flow, the well-funded status of its pension plans, and the strength of the Company's capital
structure. For more information, refer to the table titled “Issuer Purchases of Equity Securities” in Part II, Item 5. The
Company does not utilize derivative instruments linked to the Company’s stock.
Cash dividends paid to shareholders totaled $1.730 billion ($2.54 per share) in 2013, $1.635 billion ($2.36 per share) in
2012 and $1.555 billion ($2.20 per share) in 2011. 3M has paid dividends since 1916. In December 2013, 3M’s Board of
Directors declared a first-quarter 2014 dividend of $0.855 per share, an increase of 34.6 percent. This is equivalent to an
annual dividend of $3.42 per share and marked the 56th consecutive year of dividend increases.
In addition to the items described below, other cash flows from financing activities may include various other items, such
as distributions to or sales of noncontrolling interests, changes in cash overdraft balances, and principal payments for
capital leases.
In 2011, as discussed in Note 5, subsequent to acquiring a controlling interest in Winterthur, 3M purchased additional
outstanding shares of its Winterthur subsidiary for $57 million, increasing 3M’s ownership interest from approximately 86
percent to 100 percent as of December 31, 2011. These additional purchases are reflected as other financing activities in
the statement of cash flows. In addition, during 2011, 3M sold a noncontrolling interest in a newly formed subsidiary for an
immaterial amount, which was also classified as other financing activity in the consolidated statement of cash flows.