ADT 2013 Annual Report Download - page 112

FORM 10-K
April 15, 2014. We may redeem the notes, in whole or in part, at any time prior to the maturity date at a
redemption price equal to the greater of the principal amount of the notes to be redeemed, or a make-whole
premium, plus in each case, accrued and unpaid interest to, but excluding, the redemption date.
Share Repurchases
On November 26, 2012, our board of directors approved $2 billion of share repurchases over a period of
three years. Pursuant to this approval, we may enter into accelerated share repurchase plans as well as repurchase
shares on the open market. During fiscal year 2013, we made open market repurchases of 15.5 million shares of
our common stock at an average price of $43.01 per share. The total cost of open market repurchases for fiscal
year 2013 was approximately $668 million, of which $635 million was paid during the period. Additionally,
between September 28, 2013 and November 13, 2013 we repurchased 7.3 million shares of our common stock
for approximately $300 million.
On January 29, 2013, we entered into an accelerated share repurchase agreement under which we
repurchased 12.6 million shares of our common stock for $600 million at an average price of $47.60 per share.
This accelerated share repurchase program, which was funded with proceeds from the January 2013 Debt
Offering, was completed on April 2, 2013.
On November 18, 2013, our board of directors authorized a $1 billion increase to the $2 billion, three-year
share repurchase program that was previously approved on November 26, 2012. Additionally, on November 19,
2013, we entered into an accelerated share repurchase agreement under which we will repurchase approximately
$400 million of our common stock. This accelerated share repurchase program will be funded with available cash
on hand. The actual number of shares repurchased will be determined upon completion of the program, which is
expected to occur by March 25, 2014.
Dividends
During fiscal year 2013 our board of directors declared five dividends on our common stock of $0.125 per
share. The dividend declared on November 26, 2012 was paid on December 18, 2012 to stockholders of record
on December 10, 2012. The dividend declared on January 10, 2013 was paid on February 20, 2013 to
stockholders of record on January 30, 2013. The dividend declared on March 14, 2013 was paid on May 15, 2013
to stockholders of record on April 24, 2013. The dividend declared on July 19, 2013 was paid on August 21,
2013 to stockholders of record on July 31, 2013. The dividend declared on September 20, 2013 will be paid on
November 20, 2013 to stockholders of record on October 30, 2013. We currently anticipate that the four
dividends paid during fiscal year 2013 will likely represent a return of capital to our stockholders.
Whether our board of directors exercises its discretion to approve any dividends in the future will depend on
many factors, including our financial condition, capital requirements of our business, covenants associated with
debt obligations, legal requirements, regulatory constraints, industry practice and other factors that our board of
directors deems relevant. Therefore, we can make no assurance that we will pay a dividend in the future. On
November 18, 2013, our board of directors authorized an increase in our quarterly dividend from $0.125 per
common share to $0.20 per common share, beginning with our next dividend declaration.
Cash Flows from Operating Activities
For fiscal years 2013, 2012 and 2011, we reported net cash provided by operating activities of $1.7 billion,
$1.5 billion and $1.4 billion, respectively. See discussion of changes in net cash provided by operating activities
included in FCF under “Results of Operations—Non-GAAP Measures.”
48