Dow Chemical 2013 Annual Report Download - page 74

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The following table summarizes the Company's capital expenditures, which includes capital expenditures of consolidated
variable interest entities, along with the approximate percentage of spending by project type. The Company expects capital
spending in 2014 to be $3.3 billion to $3.5 billion.
Capital Expenditures Summary
In millions 2013 2012 2011
Capital expenditures $ 2,302 $ 2,614 $ 2,687
Spending by project type:
Projects related to additional capacity for new and existing products 55% 43% 36%
Projects related to environmental protection, safety, loss prevention and
industrial hygiene 14% 20% 15%
Other (primarily shared infrastructure and plant maintenance/health) 31% 37% 49%
See Note 24 to the Consolidated Financial Statements for capital expenditures by operating segment.
Cash Flows from Financing Activities
Cash used in financing activities in 2013 included dividends paid to stockholders; purchases of treasury stock; payments on
short- and long-term debt, including the early redemption of more than $3 billion in notes and InterNotes; partially offset by
proceeds received from the issuance of new debt. Cash used in financing activities in 2012 included payments on short- and
long-term debt, including $2.25 billion of early redemptions; higher dividends paid to stockholders, including the acceleration
of the fourth quarter of 2012 dividend payment; partially offset by proceeds from the issuance of $2.5 billion of long-term debt
in the fourth quarter of 2012. Cash used in financing activities in 2011 included payments on short- and long-term debt,
including the retirement of $4.8 billion of debt and dividends paid to stockholders which was partially offset by proceeds from
the issuance of long-term debt. See Note 16 to the Consolidated Financial Statements for additional information related to the
issuance or retirement of debt.
Liquidity & Financial Flexibility
The Company’s primary source of incremental liquidity is cash provided by operating activities. The generation of cash from
operations is expected to meet the Company’s cash requirements for working capital, capital expenditures, debt maturities,
dividend payments, share repurchases, contributions to pension plans, restructuring program payments and other needs. In
addition to cash provided by operating activities, the Company’s liquidity sources also include U.S. and Euromarket
commercial paper, committed credit facilities, U.S. retail medium-term note program ("InterNotes"), accounts receivable
securitization facilities and long-term debt and capital markets. Additional details on these sources of liquidity are as follows:
Commercial Paper
Dow issues promissory notes under its U.S. and Euromarket commercial paper programs. At December 31, 2013, the Company
had no commercial paper outstanding. The Company maintains access to the commercial paper market at competitive rates.
Committed Credit Facilities
In the event Dow has short-term liquidity needs and is unable to issue commercial paper for any reason, Dow has the ability to
access liquidity through its committed and available credit facilities, as summarized below:
Committed and Available Credit Facilities at December 31, 2013
In millions Effective Date
Committed
Credit
Credit
Available Maturity Date Interest
Five Year Competitive Advance and Revolving
Credit Facility October 2011 $ 5,000 $ 5,000 October 2016 Floating rate
Bilateral Revolving Credit Facility October 2012 170 170 October 2016 Floating rate
Bilateral Revolving Credit Facility March 2013 100 100 March 2014 Floating rate
Bilateral Revolving Credit Facility March 2013 300 300 October 2016 Floating rate
Term Loan Facility March 2013 300 — March 2016 Floating rate
Bilateral Revolving Credit Facility April 2013 200 200 April 2016 Floating rate
Bilateral Revolving Credit Facility October 2013 200 200 October 2016 Floating rate
Bilateral Revolving Credit Facility October 2013 100 100 October 2016 Floating rate
Total Committed and Available Credit Facilities $ 6,370 $ 6,070
On January 21, 2014, the Company entered into an additional $100 million Bilateral Revolving Credit Facility Agreement,
which has a maturity date in October 2016 and provides for interest at floating rates, as defined in the agreement.