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PART II
Net cash used by continuing financing activities was approximately $209 during 2014 compared to approximately $469 during 2013. This
was primarily due to the significant financing transactions in 2013, partially offset by the repayment of the remaining approximate $53
outstanding principal amount of a term loan agreement in the second quarter of 2014. The 2013 transactions included the prepayment of
$535 principal amount of private notes, the prepayment of $500 principal amount of notes due in 2014, the repayment of $498 of the
outstanding principal amount of the term loan agreement (as defined below), the scheduled repayment of $250 principal amount of the
4.80% Notes, due March 1, 2013, and the scheduled repayment of $125 principal amount of the 4.625% Notes, due May 15, 2013, which
were partially offset by the proceeds of $1.5 billion related to issuance of the 2013 Notes (as defined below) and proceeds of $88 related to
the termination of interest-rate swap agreements designated as fair value hedges. See Note 5, Debt and Other Financing on pages F-19
through F-21 of our 2015 Annual Report, and Note 8, Financial Instruments and Risk Management on pages F-27 through F-28 of our 2015
Annual Report for more information.
We purchased approximately .3 million shares of our common stock for $3.1 during 2015, as compared to .7 million shares of our common
stock for $9.8 during 2014 and .5 million shares for $9.4 during 2013, through repurchases by the Company in connection with employee
elections to use shares to pay withholding taxes upon the vesting of their restricted stock units, and in 2014 and 2013, also through private
transactions with a broker in connection with stock based obligations under our Deferred Compensation Plan.
We maintained a quarterly dividend of $.06 per share for 2015, which was equivalent to our quarterly dividends in both 2014 and 2013. We
suspended the dividend effective in the first quarter of 2016.
Debt and Contractual Financial Obligations and Commitments
At December 31, 2015, our debt and contractual financial obligations and commitments by due dates were as follows:
2016 2017 2018 2019 2020
2021
and Beyond Total
Short-term debt $ 50.4 $ – $ – $ – $ – $ – $ 50.4
Long-term debt – – 500.0 350.0 500.0 751.0 2,101.0
Capital lease obligations 4.8 3.6 3.2 0.1 – – 11.7
Total debt 55.2 3.6 503.2 350.1 500.0 751.0 2,163.1
Debt-related interest(1) 134.9 134.9 118.1 91.0 62.0 87.3 628.2
Total debt-related 190.1 138.5 621.3 441.1 562.0 838.3 2,791.3
Operating leases(2) 65.4 52.7 42.7 36.6 31.2 84.4 313.0
Purchase obligations 143.8 96.2 63.0 53.7 50.2 49.3 456.2
Benefit obligations(3) 101.2 20.6 19.9 19.0 17.6 91.2 269.5
Total debt and contractual financial
obligations and commitments(4) $500.5 $308.0 $746.9 $550.4 $661.0 $1,063.2 $3,830.0
(1) Amounts are based on our current long-term credit ratings. See Note 5, Debt and Other Financing on pages F-19 through F-21 of our 2015 Annual Report for
more information.
(2) Amounts are net of expected sublease rental income. See Note 13, Leases and Commitments on page F-44 of our 2015 Annual Report for more information.
(3) Amounts represent expected future benefit payments for our unfunded defined benefit pension and postretirement benefit plans, as well as expected
contributions for 2016 to our funded defined benefit pension benefit plans. We are not able to estimate our contributions to our funded defined benefit
pension and postretirement plans beyond 2016.
(4) The amount of debt and contractual financial obligations and commitments excludes amounts due under derivative transactions. The table also excludes
information on non-binding purchase orders of inventory. The table does not include any reserves for uncertain income tax positions because we are unable
to reasonably predict the ultimate amount or timing of settlement of these uncertain income tax positions. At December 31, 2015, our reserves for uncertain
income tax positions, including interest and penalties, totaled $39.0.
See Note 5, Debt and Other Financing, and Note 13, Leases and Commitments, on pages F-19 through F-21, and on page F-44, respectively,
of our 2015 Annual Report for more information on our debt and contractual financial obligations and commitments. Additionally, as
disclosed in Note 14, Restructuring Initiatives on pages F-45 through F-48 of our 2015 Annual Report, at December 31, 2015, we have
liabilities of $21.4 associated with our Transformation Plan, $4.0 associated with various restructuring initiatives during 2015 and $6.2
associated with our $400M Cost Savings Initiative. The majority of future cash payments associated with these restructuring liabilities are
expected to be made during 2016.
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